Louis Farben, trading as Gold Star Novelty House

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IN THE ~ATTER OF LOUIS FARBEN, TRADING AS GOLD STAR NOVELTY HOUSE MODIFIED ORDER TO CEASE AND DESIST Docket 3449. Order, AprilS, 1945 Modified order in proceeding in "question-in which original order issued on November 1.'), 1940, 31 F. T. C. 1357-requiring respondent, his representatives, etc., in con- . nection with the offer, etc., in commerce, of manicure sets, electric lamps, and other articles, to cease and desist from using lottery schemes in merchandising, from using terms" without cost," etc., to refer to articles offered as compensation for distribution of his products, and from representing his business as registered under the laws of the United States, as in said order specified. ~ODIFIED ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission (respondent having filed no answer thereto), testimony and other evidence taken before Randolph Preston, an examiner of the Commission theretofore duly designated by it, in support of the allegations of said complaint (respondent having offered no proof in opposition thereto), brief filed herein by counsel for the Commission (respondent not having filed brief and oral argument having been waived); and the Commission having duly made and issued its findings as to the facts, conclusion, and order to cease and desist dated November 15, 1940; and the Commission having further considered said order to cease and desist heretofore issued, and being of the opinion that the public interest requires that a modified order to cease and desist should be issued in said cause; and the Commission having given due notice to the respondent to show cause on ~arch 13, 1945, why this case should not be reopened for the purpose of modifying said order to cease and desist; and the Commission having considered the matter and the record herein, issues this its modified order to cease and desist.

It is ordered, That the respondent, ·Louis Farben, individually, and trading as Gold Star Novelty House, his representatives, agents and employees, directly or through any corporate or other device in connection with the offering for sale, sale or distribution of manicure sets, electric lamps, leather wallets, pictures, silverware and chinaware, cosmetics, jewelry, comb and brush sets, razor blades or any other articles of merchandise in commerce, as ''commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

I. Supplying to or placing in the hands of others push or pull cards, punchboards, or other devices which are to be used or may be used in the sale or distribution of said merchandise to the public by means of a game of chance, gift enterprise or lottery scheme.

2. Shipping, mailing, or transporting to agents or to distributors, or to members of the public push or pull cards, punchboards or other devices which are to be used or may be used in the sale or distribution of said merchandise to the public by means of a game of chance, gift enterprise or lottery scheme.

GOLD STAR NOVELTY HOUSE 319 318 Order 3. Selling or otherwise disposing of any merchandise by the use pf push or pull cards, punchboards or other lottery devices. 4. Using the term" Without Cost," "free," or any other term of similar import or meaning, to describe or refer to articles offered as compensation for distributing respondent's merchandise.

5. Representing that respondent's business is registered under the laws of the United States.

It is further ordered, That the respondent shall, within 60 days after service upon him of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with this order.

' 320 FEDERAL '!'HADE COMMISSION DECISIONS Order 40 F. T. C.