Elgin Razor Corporation

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IN THE NIATTER OF ELGIN RAZOR CORPORATION ET AL.

MODIFillD ORDER TO CEASE AN D DESIST Dooket 4ft58. 01'<ler, May 24, 1951 Order modifying prior order of Commission, in accordance with the opinion and decision of the Court of Appeals for the Seventh Circuit on February 5, 1951, in Gazt<w et al. v. F'e<Zeml T1·aae OomJJn·ission, 186 F. (2d) 810, and the court's final decree in saiu matter (which modified the Commission's cease and desist order issued on August 4, 1947, in Elgin Razo1· Oo?'P,Omt'ion et al., 44 F. T. C. 80, by striking therefrom paragraphs 1 (g) and 5 (f) reading "Representing as 'candid type' cameras any cameras which arc not equipped with special lenses and shutters and which are Incapable of taking action pictures under very unfavorable light conditions", and by striking that·efrom also the names of two corporate t·respondents; and affirmed said ordet· as modified ;

So as to require respondents to cease and desist from the deceptive and misleading use of t11e words "Elgin", "Hamilton", "Remington", or "Underwood", to designate, descr ibe or refer to their products, or as a part of their corporate or trade names, and from misrepresenting prices and guarantees in said order in detail set out.

Before iJfr. R andolph P1·eston, trial examiner. Mr. Oarrel F. Rhodes and Mr. Ed;ward L. Smith for the Comnusswn.

Mr. James R. McKnight and Nash & Donnelly, of Chicago, Ill., for Elgin Razor Corp., Under wood Laboratories, Inc., and Underwood Industries, Inc.

Mr. Hen1•y H. K oven and Nash & Donnelly, of Chicago, Ill., for Match King, I11c.

MODIFillD ORDER '1'0 CEASE AND DESI ST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answers of the respondents, certain stipulations of fact entered into between the respondents and counsel for the Commission, and testimony and other evidence, and the Commission having made its findings as to the facts and its conclusion that the respondents have violated the provisions of the Federal Trade Commission Act and issued its order to cease and desist on August 14, 1947; and Respondents Jack Gaiter, individually and as former president of Match King, Inc., a dissolved corporation, Dora M. Gaiter, William 919671)-53--88 Order 47 F. T. C.

R. Galter, Arnold F. Shapiro, individually and as former president of American Supercraft Corp., a dissolved corporation, and Monarch Manufacturing Co., a corporation, having filed in the United States Court of Appeals for the Seventh Circuit their petition to review and set aside the order to cease and desist issued herein, and that court having heard the matter on briefs and oral argument, fully considered the matter, and, on March 5, 1951, entered its final decree modifying and affirming, as modified, the aforesa.id order to cease. and desist pursuant to its opinion announced on February 5, 1951 : 1. Now THEREFORE, It is he1'eby onlered, That respondents Elgin Razor Corp., Underwood Laboratories, Inc.l Underwood Industries, Inc., the American Camera Corp., and Electric Clock Corp. of America, corporations, and their officers, and respondents Henry T. Schiff, Frances R. Schiff, Robert M. Schiff, and Benjamin A. Schiff, as officers of said corporations and individually and trading under the names the Keen Manufacturing Co., Razor Service Co., General Chromium and Copper Co., and Utility Manufacturing Co., or trading under any other name, and respondents Albert I. Leight and Ed Cohan, and respondents' agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution in commerce, as "commerce" is defined in the Federal Trade Commission Act,· of electric shavers, cameras, electric sunlamps, talking machines, electric clocks, and electric lighters, or any other merchandise, do forthwith cease and desist from:

(a) Using the name· "Elgin," or any simulation thereof, either alone or in connection with other words, to designate, describe or refer to respondents' products;

(b) Using the name "Hamilton," or any simulation thereof, either alone or in connection with other words, to designate, describe or refer to respondents' products;

(a) Using the name "Remington," or any simulation thereof, either alone or in connection with other words, to designate, describe or refer to respondents' products;

(d) Using the name "Underwood," or any simulation thereof, either alone or in connection with other words, to designate, describe, or refer to respondents' products;

(e) Representing as the customary prices of respondents' products prices which are in excess of the prices at which such products are regularly and customarily sold in the normal course of business; (f) 'Representing that the prices at which respondents' products are offered :for sale are special or reduced prices or are applicable for ELGIN RAZOR CORP: ET 'AL. 1345 1343 Order a limited period of time only, when such prices are in fact the regular and customary prices at which such products are offered for sale in the normal course of business;

(g) Representing, through the issuance of purported "guarantee certificates" or otherwise, that respondents' products are guaranteed against defective workmanship and materials, unless respondents do in fact repair in accordance with the terms of such guarantee products found to be defective in such respects.

2. It is further ordJered, That respondent Elgin Razor Corp., a corporation, and its officers, and respondents Henry T. Schiff, Frances R. Schiff, Robert M. Schiff, and Benjamin A. Schiff, individually and as officers of said corporation, and respondents' agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution in commerce, ns "commerce" is defined in the F ederal Trade Commission Act, of electric shavers, cameras, electric sunlamps, talking machines, electric clocks, and electric lighters, or any other merchandise, do forthwith cease and desist from :

(a) Using the name "Elgin," or any simulation thereof, as a part of the corporate or trade name of said corporation. 3. It is fwrther orcle1·ecl, That respondent Underwood Laboratories, Inc., a corporation, and its officers, and i·respondents Henry T. Schiff, Fmnces R. Schiff, Robert M. Schiff, and Benjamin A. Schiff, individually and as officers of said corporation, and respondents' agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribu-· tion in commerce, as "commerce" is defined in the Federal Trade Commission Act, of electric shavers, cameras, electric sunlamps, talking machines, electric clocks, and electric lighters, or any other merchandise, do forthwith cease and desist from:

(a) Using the name "Underwood," or any simulation thereof, as a part of the corporate or trade name of said corporation; (b) Using the word "Laboratories," or any simulation thereof, ~s n part of the corporate or trade name of said corporation. 4. I t is ju1·ther orclerecl, That respondent Underwood Industries, Inc., a corporation, and its officers, and respondents Henry T. Schiff, Frances R Schiff, Robert M. Schiff, and Benjamin A. Schiff, indi- Yiclually and as officers of said corporation, and respondents' agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribu .. tion in commerce, as "commerce" is defined in the Federal Trade Commission Act, of electric shavers, cameras, electric sunlamps, talk- Order 47 F. T. C.

ing machines, electric clocks, and electric lighters, or any other merchandise, do forthwith ceas_e and desist from : (a) Using the name "Underwood," or any simulation thereof, as a part of the corporate or trade name of said corporation. · 5. It is fwrther ordel·ed, That respondent the Monarch Manufacturing Co., a corporation, and its officers, and respondents Jack Gaiter, Dora M. Gaiter, "William Gaiter, H arry C. Feinberg, Robert D. Schoenbrod, and Arnold F . Shapiro, individually and as officers of said corporation, and respondents' agents, representatives, and employees, directly or through any corporate or other device, in connec· tion with the offering for sale, sale or distribution in commerce, rrs ''commerce" is defined in the Federal Trade Commission Act, of electric shavers, cameras, sunlamps, talking machines, electric clocks, and electric lighters, .or any other merchandise, do forthwith cease an.-1 desist from :

(a) Using the name "Elgin," or any simulation thereof, either alone or in connection with other words, to designate, describe, or refer to respondents' products;

(b) Using the name "Remington," or any simulation thereof, either alone or in connection with other words, to designate, describe, or refer to respondents' products;

(c) Using the name "Underwood," or any simulation thereof, either alone or in connection with other words, to designate, describe, or refer to respondents' products;

(d) Representing as the customary prices of respondent's products prices which are in excess of the prices at which such products are regularly and customarily sold in the normal course of business; (e) Representing that the prices at which respondents' products are offered for sale are special or reduced prices or are applicable for a limited period of time only, when such prices are in fact the regular and customary prices at which such products are offered for sale in the normal course of business;

(f) Representing, through the issuance of purported "guarantee certificates" or otherwise, that respondents' products are guaranteed against defective workmanship and materials, unless respondents do in fact repair in accordance with the terms of such guarantee products found to be defective in such respects.

6. I t is fu?·ther ordered, That respondents Elgin Razor Corp., Underwood Laboratories, Inc., Underwood Industries, Inc., the Monarch Manufacturing Co., the American Camera Corp., and Electric Clock Corp. of America, corporations, and H enry T. Schiff, Frances R. Schiff, Benjamin A. Schiff, Jack Gaiter, individually and ELGIN RAZOR CORP. ET AL. 1347 1343 Order and as former president of Match King, Inc., a dissolved corporation, Dora M. Gaiter, William Gaiter, Harry C. F einberg, Robert D. Schoenbrod, Arnold F. Shapiro, individually and as former president of American Supercraft Corp., a dissolved corporation, Albert I. Leight, and Ed Cohan shall, within 90 days after the entry of the aforesaid decree by the United States Court of Appeals for the Seventh Circuit, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.

Ot•der 47 F.T.C.

IN THE Matrer OF CARTER PRODUCTS, INC., AND SMALL AND SEIFFER, INC. 11-!0DIFIED ORDER TO CEASE AND DESIST Docket 4960. Order Mav 24, 1951 Order modifying prior order of Commission, in accordance with the opinion and decision of the Court of Appeals for the Seventh Circuit on February 2, 1951, in Carte~· P1·oauots, Ino., et aZ. v. Fedm·az Tmde Commission, 186 F. (2d) 821, and the court's final decree in said matter (which modified and affirmed, as modified, the Commission's said cease and desist order in Ca1·ter P·roauots, Ino., et. al., July 14, 1949, 46 F. T. C. 64) ; So as to require respondents to cease and desist from advertising falsely or misleadingly the effectiveness of the preparation "Arrid" with respect to stopping perspiration and as a deodorant, etc., as in said order below set out. Before llr. Everett F. Haycraft, trial examiner. 11!1·. R. P. Bellinger for the Commission. Breed, Abbott &J Morgan, of New York City, for respondents. l\10DIFIED ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of tho Commission, the answer of the respondents, testimony and other evidence in support of the complaint and in opposition thereto, taken before a trial examiner of the Commission theretofore duly designated by it, the recommended decision of the trial examiner and exceptions filed thereto, briefs filed in support of the complaint and in opposition thereto, and oral argument of counsel; and the Commission, having made its findings as to the facts and its conclusion that the respondents have violated the provisions of the Federal Trade Commission Act and issued· its order to cease and desist on July 14, 1949; and Respondents having filed in the United States Court of Appeals for the Seventh Circuit their petition to review and set aside the order to cease and desist issued herein, and that court having heard the matter on briefs and oral argument, fully considered the matter, and, on February 20, 1951, entered its final decree modifying and affirming, as modified, the aforesaid order to cease and desist pursuant to its opinion announced on February 2, 1951:

Now THEREFORE, It is hereby ordered, That respondents, Carter .Products, Inc., a corporation, and Small & Seiffcr, Inc., a corporation, and their respective agents, repre.c;entatives and employees, directly or CARTER PRODUCTSI1 INC., ET AL. 1349 1348 Order tlu:ough any corporate or other device in connection with the offering for sale, sale or distribution of a cosmetic preparation designated "Arrid," or any other product of substantially similar composition or possessing substantially similar properties, whether sold under the same name or under any other name, do forthwith cease and desist from:

1. Disseminating or causing to be disseminated, by means of the United States mails or by any means in commerce, as "commerce" is defined in the Federal Trade Commission Act, any advertisement which represents, directly or through inference; (a) That the application of said preparation stops underarm perspiration; provided, however, that nothing P.erein shall prevent the respondents from representing that the use of Arrid will prevent the appearance of perspiration when used as directed, namely, "daily" or "as frequently as you find necessary." . (b) That said preparation will keep the armpits dry or odorless, provided th,at nothing herein shall prevent respondents fNm representing that the use of Arrid will keep the armpits dry or odorless when used as directed, namely, "daily" or "as frequently as you find necessary."

(c) That the use of said preparation immediately after shaving will not irritate the skin.

(d) That said preparation will prevent the accumulation of odorcreating secretions or excretions in the armpits, provided that nothing herein shall prevent respondents from representing that the use of Arrid will prevent the accumulation of odor-creating body secretions or excretions in the armpits when used as directed, namely, "daily" or "as frequently as you find necessary."

(e) That said preparation is .safe or harmless to use, without disclosing that it may cause irritation of sensitive skin. 2. Disseminating or causing to be disseminated, by any means, for the purpose of inducing, or which is likely to induce, directly, or indirectly, the purchase of said preparation in commerce, as "commerce'' is defined in the Federal Trade Commission Act, any advertisement which contains any of the representations prohibited in Paragraph 1 hereof.

I t is ju1·ther ordm·ed, That the respondents shall, within 90 days after the entry of the aforesaid decree by the United States Court of Appeals for the Seventh Circuit, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.

Syllabus 47 ll'.T.C.