George Luxner

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In roe Marrer or GEORGE LUXNER TRADING AS GEENEL MOTOR PRODUCTS COMPANY Docket 5667. Compluint, June 22, 1949—Decision, Feb. 17, 1950 Where an individual engaged in the interstate sale and distribution of breaker arms and adjustable contacts for use in connection with the ignition system of automotive motors— , Represented that said products, as packed or enclosed by him in manila énvelopes and as invoiced, were original genuine parts manufactured by the Electric Auto-Lite Co. of Toledo, through placing wpon said envelopes the statement “Original Auto-Lite Service Parts’ and the words “Parts contained herein are Genuine The Electric Auto-Lite Co., Toledo, Ohio. Part No. IGP 3028-A Name of Part ~-________. Made in U. S. A.’’; and through invoicing the same to customers as “IGP 3028-A Contacts.” ; The facts being that while the aforesaid number was that employed by said Electric Auto-Lite Co. to identify such particular products, those packaged and sold by said individual as above set forth were not original or genuine parts made by said Company, but were in fact produced by some other manufacturer ;

With tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that such representations were true, thereby causing it to purchase his said breaker arms and adjustable contacts :

Held, That such acts and practices under the circumstances set forth were all to the injury and prejudice of the public and constituted unfair and deceptive acts-and practices in commerce.

Mr. Clark Nichols for the Commission.

Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said act, the Federal - Trade Commission, having reason to believe that George Luxner, trading as Geenel Motor Products Co., hereinafter referred to as respondent, has violated the provisions of said act, and it appearing to the Commission tha* a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its ‘charges in that respect as follows:

Paracrary 1. Respondent George Luxner is an individual trading as Geenel Motor Products Co. with his principal place of business at Suite 1518, 80 Eighth Avenue, New York 11, N. Y. Par. 2. Respondent is now, and for several years last past has been, engaged in the sale and distribution, among other things, of Complaint 46 F. T. C.

breaker arms and adjustable contacts, used in connection with the ignition system of automotive motors.

In the course and conduct of his business, respondent causes his said products, when sold, to be transported from his place of business in the State of New York to the purchasers thereof located in various other States of the United States. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said products, in commerce, among and between the various States of the United States.

Par. 8. In the course and conduct of his business, respondent packs or encloses the breaker arms and adjustable contacts so sold and shipped by him in manila envelopes upon which is printed the following:

Original Auto-Lite Service Parts Parts contained herein are Genuine The Electric Auto-Lite Co.

Toledo, Ohio.

Part No. IGP 3028-A Name of Part Made in U.S. A.

Form No. 267 Said products are invoiced to customers by respondent as follows: IGP 3028 A Contacts Par. 4. By and through the use of the aforesaid statements on the envelopes and invoices respondent represented that the breaker arms and adjustable contacts contained in the envelopes and shipped under the invoices were original genuine parts manufactured by the Electric Auto-Lite Co. of Toledo, Ohio.

Par. 5. The aforesaid statements are false, misleading, and deceptive. In truth and in fact, while the No. IGP 3028 A is the number employed by the Electric Auto-Lite Co. of Toledo, Ohio, to identify this particular part, the products packaged and sold by respondent, as aforesaid, were not original or genuine parts manufactured by the Electric Auto-Lite Co. of Toledo, Ohio, but were in fact manufactured by some other manufacturer.

GEENEL MOTOR PRODUCTS CO._ 509 553 Findings Par. 6. The use by the respondent of the foregoing false, deceptive, and misleading statements and representations has had and now has the tendency and capacity to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that such statements and representations are true and into the purchase of substantial quantities of respondent’s said product. Par. 7. The aforesaid acts and practices of the respondent as herein alleged are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. Revort, Frnpines as TO THE Facts, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on June 22, 1949, issued and subsequently served its complaint in this proceeding upon respondent, George Luxner, an individual trading and doing business as Geenel Motor Products Co., charging him with the use of unfair acts and practices in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of respondent’s answer, the trial examiner, by order entered herein, granted request of respondent for permission to withdraw his said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearing as to said facts, which substitute answer was duly filed in the office of the Commission on September 7, 1949. Thereafter, this proceeding regularly came on for final hearing before the Commission on said complaint and substitute answer; and the Commission, having duly considered the matter and being now fully advised in the premises, finds that this proceeding is in the interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom:

FINDINGS AS TO THE FACTS Paracrapy 1. Respondent, George Luxner, is an individual trading and doing business as Geenel Motor Products Co., with his principal office and place of business located at Suite 1513, 80 Eighth Avenue, New York 11, N. Y. He is now, and for several years last past has been, engaged in the offering for sale, sale, and distribution, among other things, of breaker arms and adjustable contacts, used in connection with the ignition system of automotive motors. Par. 2. In the course and conduct of his aforesaid business, respondent causes, and has caused, his said breaker arms and adjustable Findings 46 F.T.C.

contacts, when sold, to be shipped and transported from his place of business in the State of New York to purchasers thereof at their respective points of location in other States of the United States; and ‘maintains, and at all times mentioned herein has maintained, a course of trade in said breaker arms and adjustable contacts in commerce among and between the various States of the United States. Par. 3. (a) In carrying on his business as aforesaid, respondent packs or encloses the breaker arms and adjustable contacts offered for sale, sold, and distributed by him, in manila envelopes, upon which is printed the following:

Original Auto-Lite Service Parts Parts contained herein are Genuine The Electric Auto-Lite Co.

Toledo, Ohio Part No. IGP 3028-A Name of Part __ Made in U. §. A.

Form No. 267 Said products are invoiced to customers by respondent as follows: IGP 3028 A Contacts.

(6) By and through the use of the aforesaid statements and representations on the envelopes and invoices, respondent represents, and has represented, that the breaker arms and adjustable contacts contained in the envelopes and shipped under the invoices were, and are, original, genuine parts manufactured by the Electric Auto-Lite Co. of Toledo, Ohio.

Par. 4. The aforesaid statements and representations are false, misleading, and deceptive. In truth and in fact, while the No. IGP 3028 A is the number employed by the Electric Auto-Lite Co. of Toledo, Ohio, to identify these particular products, those packaged and sold by respondent as aforesaid have not been, and are not, original or genuine parts manufactured by the Electric Auto-Lite Co. of Toledo, Ohio, but have been, and are, in fact, produced and manufactured by some other manufacturer.

GEENEL MOTOR PRODUCTS CO. 557 553 Order .

Par. 5. The use by respondent of the aforesaid false, misleading, and deceptive statements and representations has had, and now has, the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that these statements and representations are true; and causes, and has caused, a substantial portion of the purchasing public, because of such erroneous and mistaken belief, to purchase respondent’s breaker arms and adjustable contacts.

CONCLUSION The acts and practices of respondent as herein found are all to the injury and prejudice of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the substitute answer of respondent, George Luxner, in which answer said respondent admits all the material allegations of fact set forth in the complaint and waives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as.to the facts and its conclusion that said respondent has violated the provisions of the Federal Trade Commission Act:

It is ordered, That respondent, George Luxner, an individual trading as Geenel Motor Products Co. or under any other name or names, his representatives, agents, and employees, directly or through any corporate or other device in connection with the offering for sale, sale, and distribution of breaker arms and adjustable contacts in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from, directly or indirectly, representing that his breaker arms and adjustable contacts are the products of the Electric Auto-Lite Co. of Toledo, Ohio, or are the products of any other manufacturer which does not in fact produce them. 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 it.

Syllabus 46 F.T.C.