Dejay Stores, Inc.

Text (OCR of the scan at left; may contain errors)

IN THE M:ATTER Ol;~ DEJ' A Y STOR.ES, INC.

COMPLAINT, DECISIOS, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED YlOLA TION OF SEC. 5 01, AN ACT OF CONGRESS APPROVED SEPT. 26, 19'14 Docket 5793. Complaint, June 1950-Dea-ision, Ap.r. 10, 1952 Although the collection of honest and legitimate debt is a legal and even worthy aim, it does not justify or make legal the use of means which are false, misleading or deceptive.

As regards the respondent's appeal from the hearing examiner s initial decision in the instant matter, for reasons below set forth, the Commission was of the opinion that all the findings as to the facts contained in the initial decision were supported by reliable, probative, and substantial evidence in the record; that the conclusions contained therein were collect; that the order to cease and desist was proper upon the record and was required to provide proper relief from respondent' s unfair and deceptive acts and practices; that the initial deeision was propel' in all respects to dispose of the proceeding; and accordingly denied the appeal.

'Vhere a corporfltion engaged in the retail sale of clothing and other merchan- (Use through a large Humber of stores in some twenty eastern, southeastern and midwesterll states operated by its wholly-owned subsidiaries; In seeking to obtain information as to current addresses and employment of persons to whom it had thus sold merchandise on credit through the managers of Hs retail stores and who were delinquent in their payment, by means of certain form letters- (a) Falsely represented through the use of the words "Personnel Bureau" in double postcards which they addressed to delinquent debtors at their last known address and which stated that "due to the shortage of transportation and manpower, we are unable to interview you personally" and requested the recipient to fill out and mail in the detachable portion which called for his name, address, employment and marital status and other information, that it was engaged in tlJe business of operating a personnel management bureau or employment agency and that the information desired was to be used in connection with emplo;yment of personnel; (b) Thereafter represented through the use of another double postcard-upon which it displayed the words "DEJAY SEltVICE CO." along with the legend NOTICE OF GOODS FOR DELIVERY", followed by the statement "We are holding a package addressed to ---------- which we have been unable to deliver because of incorrect address" and "Same will be forwarded upon receipt of the attached postal card properly filled in, in which provision was made, under the caption "CONSIGNEE' S NA:\1E AND ADDRESS AS SHOWN ON SHIPMENT", for the name, address, and employer of the delinquent-that it had a package for the addressee and that the information requested was necessary to forward the package to such person; when in fact the only package available for delivery was one prepared by it; and Where said corporation, following discontinuance of the use of the aforesaid postcards, in addressing references furnished by a delinquent debtor at the , . . .

1178 FEDERAL TRADE CO).imission DECISIONS, Syllabus 48 F. T. C.

time of his purchase from it, and after return by the Post Office of requests for payment, because the delinquent addressee could not be located- (c) Deceptively and misleadingly represented that a certain "J. King, living in New York, had an important personal letter for the delinquent debtor which had somehow been left with or misdelivered to him by means of a form letter, in simulated hand '\writing which, addressed to one or more of the delinquent' s references over the aforesaid name, stated "I understand that you are a friend of ----------. I have an important letter for so please let me have the correct address mail it to me in the enclosed envelope;" when in fact "J. King" was its credit manager and the only letter was the dun returned by the Post Office: With the result that persons '\yho received said letters and postcards '\", ere led to believe erroneously that it would be to their advantage to furnish information desired by said corporation which they would not have supplied had the true facts been revealed.:

Hew That such acts and practices, under the circumstance!; !;et forth, were nil to the prejudice and injury of the ImbJic and constituted unfair and deceptive acts and practices in commerce.

As respects the (lisconUnuance of the use of the double postcards above described, the voluntary cessntion of the practices involved was neither permanent nor in good faith, since the same practice, for the same purpose and with the same effect, although milder in form and reduced from sheer falsity to the level of "misleading and deceptive." was carried on through respondent' use of the form letter in simulated handwriting Rhove described; and the public interest required that such continuing, although less vicious, course of conduct be stopped.

As respects respondent' s appeal from the initial decision of the hearing examiner in the instant matter and respondent' s objection to those findings which have to do with the use of the form letter in simulated personal handwriting: no recipient of ordinary or legR than average intelligence would apprehend its real purpose, namely, to obtain information for the purpose of collecting money, but would naturally believe that the signature was that of an individual living in New York at an address not known to nnyone except someone intimately familiar with that city to be a business address, with an important personal letter for the delinquent debtor, as above set out, ; and the facts in the record fully supported the examiner s findings that the letter and the circumstances surroun(ling its use were deceptive and misleading to the recipient, and that respondent itself recognjzed said letter as a subterfuge and decoy.

As respects said appeal and rpspondent's obje~tion to the examiner s conclusion that its voluntary cessation or the nse of the forms above referred to "was neither permanent nor complete nor. . . in good faith. sin~e: th same practice for the same purpose and '\with the same effect, although milder in form and reduced from sheer fnlsity to the level of 'misleading and: deceptive' " was carriec1 on through the use of the letter above described and that the public interest required that such "continuing, although less vicious, course of conduct be stopped", it appeared that the respondent did not cease the practice at which the complaint was directed, but merely changed the manner in which it engaged in the practice; and the Commission agreed with the examiner s conclusion.

:, , DEJAY STORES, INC. 1179 1177 ' Complaint Before 1111', H en1'y p, Alde' and lift. F1' ank Flier hearing examiners. 11f1'. J. W. B1' ookfield, J1' for the Commission. aalZop, Oli1nel1ko Gould of New York City, for respondent. COl\IPLAINT 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 Dejay Stores, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said Act, and it appearing to the Commission that a proc.eeding by it in respect thereof ,yould be in the public interest hereby issues its c.complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Dejay Stores, Inc. is a corporation organized and doing business under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at 114 East 23rd Street, in the city of New York, New York. , PAR. 2. Responc1eilt is no"" and for more than three years last past has been engaged.in the retail sale of clothing and other merchandise through a, large number of retail stores loc.ated in practically all of the Eastern, Southeastern and ~Iid,,'estern States. Such stores are operated by wholly-owned subsidiary corporations also organized under the laws of the State of Delaware. The officers of said subsidiaries are the same as the parent corporation. In the course ,of its business Dejay Stores, Inc. c.auses and has caused its goods and merchandise to be shipped in commerce between and among the various States of the United States and there is now and has been for more than three years last past a course of trade in such merchandise by said respondent in commerce between and among the various States of the United States.

PAn. 3. In the course and conduct of its businessDejay Stores, Inc. sells large quantities of its merc.handise on a credit basis, and when sales are made on el' ~lit the managers of respondents retail stores secure information from the purchaser as to the purchaser s place of employment, residence address, and names and addresses of references. Thereafter, respondent frequently desires to obtain information as to the eurrent addresses and employments of persons to whom respondent has sold merchandise on c.redit and who are delinquent in their payments. In order to obtain such information respondent registered the fictitious names Personnel :Management Bureau :' in the State of New York Dejay Serviee Company" and "J. IGng and under such names uses and has used and has authorized its various subsidiaries to use certain form letters or communications with Complaint 48 F. '1' . C. return envelopes or return postcards, typical of which are the follow- Ing:

A form letter written in simulated handwriting is sent to one or more of the references furnished by the purchaser and reads as follows: I understand that you are a friend --------------------0 I have an important letter for______-------------_so please let me have the correct address. Thanks.

J. King P. S. Please write in the address on this line: --------------------and mail it to me in the enclosed envelope, second form of communication consists of a double postcard addressed to the last known address of the delinq,uent debtor and reads fts follows:

DEJAY SERVICE CO.

114 East 23rd St. New York, N. Y.

NOTICE OF GOODS FOR DELIVERY We are holding a package addressed to --------------------- which we have been unable to deliver because of incorrect address.

Same will be forwarded upon receipt the attached postal card properly filled in with the correct address of the above party. DE.JAY SERVICE CO.

Charge with return card addressed as. follows:

BUSINESS REPLY CARD DEJ A Y SERVICE CO.

114 East 23rd Street, New York, X (Reverse of return card) DEJAY SERVICE CO.

114 East 23rd St., New York, N. Y.

l)ate-_---_---- ---- Shipment No. Charge DEJA Y STORES, INC. II K I 1177 Complaint CONSIGNEE' S NAME AND ADDRESS AS SHOWN ON SHIPMEN'l' N ame- - -- - - - - - - Address- - -- - We will deliyer this shipment only to the above named person when the information requested below is properly filled in.

Name -- --- Name in full of consignee Etesidence ---- -- Street and No.

City -------------- Sta te- ---- Employer - Address ------ Package will be sen t direct to the person intended for only at their address, and not in care of anyone else.

NO POSTAGE NECESSARY A third form of communication consists of a double postcard addressed to the delinquent debtor at his last known address and reads as follows:

Due to the shortage of transportation and man power, we are unable to interview :you personally.

So please fill out detachable card and mail in.

Respectfully yours, PERSONNEL MANAGEMENT BUREAU.

(Return carel) Personnel Management Bureau P. O. Box 1599 Sayannah, Ga.

(Reverse of return card) Name -- --- - - - Address - -- -- - - - Ci ty S ta te__- ------- Employed: Yes_------- No--__---- Where___-__---- Race- - ~larried_____- Single------ ))ependen ts--- Phone--___- --- --- Detach and mail immediately.

, , 1182 FEDERAL T'TRADE COM:MISSION DECI.~JOl\S Orders 48 F. T. C.

Respondent has 11sec1 other similarnieans of locating delinquent debtors, but the above cards ate typical of the methods used. PAR. 4. Through the use of the letter signed "J. IGng," respondent represented that it has a personal or business letter for the person named in the letter and that the information "as desired in order to forward the letter to the person named. In truth and in fact, respondent did not have a letter of any kind for delivery to the addressee at the time of the mailing of the letter so signed. Through the use of the name "Dejay Service Company" and th~ statement "Notice of Goods for Deliver " and the statement ""\Ve are holding a package which we have been unable to deliver because of incorrect address " respondent represented to the addressee thereof i"hat it had a package for the addressee and that the information requested was desired in order to fonvard the package to addressee. In truth and in fact, the only package available for delivery was one prepared by respondent.

Through the use of the name "Personnel ~Ianagement Bureau" and the statement mailed by respondent using that name, respondent represented that it "as engaged in the business of operating a personnel management bureau or employment agency and that the information c1esil ed fi'0111 thb addressee "'as to be used in connection ,, ith employinerit of pei'sonnel. IIi truth and in fact, l respondent does 1101., nor did it at the time such communications were mailed, operate a personnel management bureau or al~employment agency.

The sole and only purpose ofsenc1ing out the afol'esaidletters and cards was an attempt to obtain the addresses and places of employment of persons owing delinquent accounts to respondent. PAR. 5. Persons who received said letters and postcards above described were led to erroneously believe that respondent had a package or letter addressed to thel11 or to the person named therein or that respondent maintained an employment office or personnel management bureau and that it would be to their advantage to furnish the requested information, and as a result of such mistaken and erroneous belief furnished information desired by respondent which they would\ not have otherwise supplied had the true facts been revealed. PAR. 6. The acts and practices of respondent, as herein alleged, are all to the prejudice and injury of the public and constitute,unfair and deceptive acts and practices in commerce in violation of the Federal Trade Commission Act.

ORDERS AND DECISION OF THE COl\Il\IISSIOX Order denying appeal from initial decision of hearing examiner and decision of the Commission and order to file report of compliance Docket 5793, April 10, H)52, follows:

, DEJ A Y STORES, INC. 1183 1177 Orders This matter came on to be heard by the Commission upon the reof the hearing examiner spondent' s appeal from the initial decision herein and upon briefs and oral argument of coun~el in support of and in opposition to said appeal.

Respondent makes byo contentions in its brief. First, that the form to obtain in- letter presently used by the respondent in its attempt formation as to the current addresses of delinquent debtors does not constitute, false, misleading, or deceptive statements or representations and that, therefore, the use of such form letter cloes not constitute unfair or cleceptiye acts or practices. Second, that because the l'E', spondent voluntarily ceased using certain forms it previously used 110 order against their use is ,,-al'l'anted. Specific exception is taken to Paragraphs Eight and Kine of the finc1il1gs as to the facts; to paragraphs 1 and :2 of the conclusions; and to the order in the initial decision.

The hearing examiner s findings to "\"which specific exception is taken are to the effect that the form letter presently used by the respondent in its efforts to obtain information as to the addresses of delinquent debtors, and the circmnstanees surrounding its use, are misleading and deceptive to the recipient of such form letter, and that the respondent itself recognizes such letter as a subterfuge and a decoy. The form letter presently used by the respondent is in simulated hanchvriting and is signed by "J. King." The letter contains the statements understand that you are a friend of I have an important so please let me have the correct address. ",YhenJetter for the local manager of one of respondents retail stores is unable to 10catB a delinquent customer, he sends to the respondent's New York office a "Decoy Hequest. " Respondent then sends the above-described form letter to references furnished by the delinquent customer at the tim credit \Vas obtained. There is nothing in the letter to indicate its real purpose or that the sender is in any way connected "\with the. respondent. is one,The only letter the re.spondent has for the delinquent debtor "\vhic.h respondent has sent to the delinquent debtor and' which.h has been returned. These and other facts in the record fully support the. hearillg examiner s findings that the. letter and the c.circumstances to the recipient andsurrounding its use are deceptive and misleading that the respondent recognizes said letter as a subterfuge and decoy. to the hearing examiner s findings to Respondent does not except the effect that the forms previously used by the respondent c.contained does exceptfalse deceptive, and misleading representations, but c.essation of the use of suchhisconcInsion that respondent's voluntary "\yas it in good faithforms "was neither permanent nor complete nor since. the same practice for the samepul'pose and \With the same effect, 213840-54-- Deci:.;ion 48 F. T. C.

although milder in form ~ind reduced from sheer falsity to the level of misleading and fleceptive ~ has been and is being cHrriecl on by through its use of the letter described in Paragraph Six of:the :1: * .Findings as to the Facts. The public interest requires that this continuing, although less vicious course of conduct, be stopped.'~ The Commission agrees with this conclusion. The respondent did not cease the practice at "which the complaint was directed, bnt merely changed the manner in which it engaged in the practice. The Commission is of the opinion that all of the filHlings as to the facts contained in the initial decision are supported by reliahle, probative, and substantial evidence in the record; that the cone1usions , contained therein are correct; and that the order to cease and desist is proper upon this record and is required to provide propel' rplief from respondents unfair and deceptive acts and practices. The Commission, therefore, being of the opinion that the respondpnt' s appeal is without merit. and that. the initial decision of the hearing examiner is appropriate in all respects to dispose of this pl'oeeed- 1l1g:

I tis OJ'del'ed That the responclenfs appe,tl from tlw initial decision of the hearing examiner be, and it hereby is, denied. It i8 fwi'ther ordel' That the initial deeision of the hearing examiner, a copy of which is attached, shall, on the 10th day of April 1952, become the decision of the Commission. It i-8 fw,thel' onleped That the respondent shall, within sixty (60) da:ys after service upon it of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with the order to cease and desist. Said initial decision, thus adopted by the Commission as its de,cisian, :follows:

INITIAL DECISION BY FRANK Iller, TRIAL EXAMINER Pursuant to the provisions or the Federal Trade Commission Act the Federal Trade Commission on J UIle 29, 1950, issued and subsequently served its complaint in this proceeding upon D,ejay Stores Inc., a. corporation, charging it with the use of unfair and deceptive ~lcts and practices in commerce in violation of the provisions of said Act. After the issuance of said coniplaint and the filing or respondent' s answer thereto, a hearing was held at which testimony and other evidence in support of and in opposition to the allegations o:f said eompla.int were introduced before Henry P. Alden, a trial examiner theretofore duly designated by the Commissjon. Thereafter, on 1\1:ay DEJAY STORES, INC. 118.

1177 Findings , 1951, the said trial examiner formally closed the proceeding and on May 31, 1951, he retired from the Government service. On June 6 1951, the Commission designated Frank Hier as trial examiner in the place and stead of the said Henry P. Alden. Thereafter, the proceeding regularly came on for final consideration by the undersigned substituted trial examiner on the complaint, answer thereto, testimony and other evidence, proposed findings as to the facts and conclusion presented by counsel and proposed order presented by counsel in support of the allegations of the complaint, and said substituted trial examiner, having duly consider-red the record herein, finds that this proceeding is in the interest of the public and makes the following findings as to the facts, conclusion drawn therefrom, and order: FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent Dejay Stores, Inc., is a corporation organized and doing business under and by virtue of the laws of the State of Delaware, with its office and principal place of business 10eated at 114 East 23d Street, in the City of New York, New York. PAR. 2. Respondent is now, and for more than three years last past has been, engaged in the retail sale of clothing and other merchandise through a large number of retail stores located in approximately twenty of the Eastern, Southeastern, and l\lidwestern States. Such stores are operated by wholly-owned subsidiary corporations also organized under the laws of the State of Delaware. The officers of said subsidiaries are the same as the parent corporation. In the course of its business, Dejay Stores, Inc., causes and has caused its goods and merchandise to be shipped in c.ommeree between and among the various States of the United States and there is now and has been for more than three years last past a course of trade in such merchandise by said respondent in commercebet~Yeen and among the various States of the United States.

PAR. 3. In the course and conduct of its business, Dejay Stores, Inc. sells large quantities of merchandise on a credit basis, and when sales are made on credit, the managers of respondent's retail stores secure information from the purchaser as to the purchaser s place of employment, residence address and names and addresses of references. Thereafter, respondent. frequenet ly desires to obtain information as to current addresses and employment of persons to 'whom respondent has sold merchandise on credit and who are delinquent in their payments. To obtain said information the respondent has used certain form letters.

, :

1186 FEDERAL rrRADE 'COMMISSION DECISIONS Findiilgs 48 F. T. C.

PAR. 4. Prior to 1943, but not since; respondent has thus used a double post card addressed to 'a. delinqueilt debtor at his last known address which reads as follows:

Due toyouthe shortage ofpersOlwlly.transportation and man power, we are unable to interview ~o please I'm out detaehulJle card fluel mail ill. Hespectfully yours, PERSONNEL MANAGE~1E::\T BUUEAU.

(Re.ti.ll' n card) el'BOllnell\lanagement Bureau P. O. Box 1599' Savannah, Ga.

, (Heverse of return card) N HIne Address --- --- City___-- ---- - -- - ----------- State__ Employed: Yesn____-- , Non ,-_- Wl1ere__---- Race__-_--_--__--___n_nn_____-- Mal'l'ied--_n------- Single______------ Dependents- - Phone- -- - Detach and mail immediatel~' PAR. 5. Prior to 1946 , but not since, respondent has thus used a double post card addressed to a delinquent debtor at his last known address which reads as follows:

DEJAY, SERVICE co.

114 East 23rcl St. New York, N, Y.

NOTICE OF GOODS FOR DELIVERY We are holding a package addressed to - ----------------- which we have been unable to deliver because of incorrect address.

Same will be forwarded upon receipt of the attached postal card properly filled in with the correct address of the above party. DEJAY SERVICE CO.

Charge C. O. D.

with return card addressed as follows:

BUSINESS REPLY CARD DEJAY SERVICE CO.

114 East 23rd Street, New York, N. Y.

(Reverse of return card) DEJ.AY SERVICE CO.

114 East 23rd St., New York, N. Y.

Da te- Shipment No. Charge C. 0, D. :

DE.JAY STORES , INC. 1187 1177 Findings CONSIGNEE' S NAME AND ADDRESS AS SHOWN ON SHIPMENT N allle - - Address We will deliver this shipment only to the above nallled person when the information requested below is properly filled in. NaIll e- - - - - - - - - - - - - - - - - - - - Kame in full of consignee Resi d ence--- - -- -- - - - -- Street and No.

Ci ty Sta te__- -- --------------- Elllployer -- Address ----- Package will he sent direct to the person intended for only at their address, and not in care of anyone else.

NO POSTAGE NECESSARY PAR. 6. Respondent has thus used, and now uses, a form letter in simulated handwriting, addressed to one or more references furnished by a delinquent debtor at the time of his purchases from respondent which reads as follows:

I understand that you are a friend of ---- ------------. I have an illlportant letter for -------------- ~--------- ~O pleni'iP. let me hnye the correct, address. ~'hanks.

J. KING.

P. S. Please write in the address on this line and mail it to me in the enclosed envelope. ( Both the enclosed envelope and the transmittal el1n~lopebenr the address of J. King, 10th Floor, 114 East 23rd St., Kew York 10, X. Y. PAR. 7. Respondent's practice, in the llse of the form letter described above in Paragraph Six, has been, where CI'-edit has been extended and payments are delinquent for two months 01' more, to write the delinquent customer urging him to make prompt payment. If this dun is returned by the post office because the addressee cannot be located then respondent sends the form letter described in Paragraph Six above to the references originally supplied by the customer at the time he m.ade his purclutses and obtained credit for then' payment. J. lCing" is, in fact, John IGng, the comptroller of respondent, who has supervision and responsibility for collections of llnpaid balances due respondent. The purpose of such form letter is to obtain the current address of the delinquent customer from the addressee, ",hose name was given as a. credit reference. Respondent had no letter of any kind awaiting delivery to the delinquent customer, except the dun letter" originally sent him, which ,yas returned by the post office as undeliverable, 1188 FEDERAL rrRADE COMIVIISSION DECISIONS Findings 48 F. T. C.

PAR. 8. Although there. is no representation 01' statement in this form letter described in Paragraph Six above which is literally false, nevertheless, it and the circumstances surrounding its use are deceptive and misleading to the recipient. About 500 of these letters are sent out every month by respondent; resulting in n bollt' 15 % replies. R2spondent' s merchandise is sold to medium or lower income purehasers. Instead of being typed as a, business communication, it is in simulated personal handwriting, and gives the impression of being a personal communication, rather than a commercial communication. No recipient of ordinary or less than average intelligence would apprehend its real purpose-to obtain information for the purpose of collecting money. Such a recipient would naturally believe that " J. King," an individual living in New Y or1\:, at an address not known to anyone except someone intimately familiar with that city to be a business address, had an important personal letter for the delinquent debtor which had somehow been left with or misc1elivered to J. King. The letter is a subterfuge, concealing' its real purpose by giving a misleading and deceptive impression of an entirely di:fferent purpose. PAR. 9. Respondent, in spite of the denial of its credit manager l'eeognizes the letter described in Paragraph Six as a subterfuge and a. decoy. 'Vhen a local store manager is unable. to locate a delinquent customer to, enforce collection of an unpaid balance, he as a. regular and current practice sends into respondeneg New York office a printed form as follows:

F 115 STORE -- Datf' ---------- DECOY REQUEST Home Office:

The following account moved or skipped ami I cannot trace it from here. Send decoys as indicated below. Npedless delay may kill all chances to locate the account. Mrs.

Acct. No. 1\11'. ---------- Miss Print or T~T)e Full Name Bal. $-------------------- l~oriller ---------- DLP. Address ----------------------- City and Sta PLEASE DECOY THE FOLLO"WING 1. - .

DEJAY STORES, INC. 1189 1177 Conclusions 2. - - ---- 1\lake Notation of This Request on Your Lease Card so That You Won t Duplicate Request Using Same Decoys. Write Additional Decoys on Reyerse Side.

TYPEWRITER, WRITE OR PRINT LEGIBLY Under the legelHI "Please decoy the following" is filled in the names and addre~ses of references previously given with any nota tion as to their blood 01' marital relatiom;hit) to the delinquent customer whereupon respondent from its New York office initiates and uses the procedure hereinabove described in Paragraph Seven.

PAR: 10. Through the use of the double post c.ard described in Paragraph, Five, supra, respondent has rerresenteel to the addressee thereof that it had a package for the addressee and that the information requested was necessary in order to forward the package to addressee whereas the only package available for delivery was one prepared by respondent.

PAR. 11. Through the use of the name "Personnel Management Bureau" and the statement mailed by respondent using that name, respondent represented that it was engaged in the business of operating a personnel management bureau or employment agency and that the information desired from the addressee was to be used in connection with employment of personnel. In truth and in fact, respondent does not, nor did it at the time such communications were mailed, operate. a personnel management bureau or an employment agency. PAR. 12. The sole purpose of the use of the cards described in Paragraphs Four and Five, supra, was an attempt to obtain the addresses and places of employment of persons owing delinquent accounts to respondent.

PAR. 13. Persons who received saielletters and post cards above described were led to erroneously believe that respondent had a package addressed to them or to the person named therein or that respondent maintained an employment office or personnel management bureau anq that it would be to their advantage to furnish the requested information, and as a result of such mistaken and erroneous belief furnished information desired by respondent which they would not have otherwise supplied had the true facts been revealed. CONCLUSIONS 1. The aforesaiel acts and practic.es of respondent Dejay Stores, Inc. ashereinahov.efound are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce 1190 FEDERAL TRADE CO~:IMISSION DECISIONS Order 48 F. T. C.

within the intent and meaning of the Federal Trade Commission Act. 2. Respondent' s voluntary cessation of the practices hereinabove described in connection with the cards described in Paragraphs Four and Five of the above Findings as to the Facts was neither permanent nor complete nor was it in good faith, since the same practice for the same purpose and with the same effect, although milder in form and reduced from sheer falsity to the level of "misleading and deceptive " has been and is being carried on by it through its use of the letter described in Paragraph Six of the above Findings as to the Facts. The public interest requires that this continuing, although less vicious course of conduct, be stopped. 3. Although the colleetion of honest and legitimate debt is a legal nd even worthy aim, it does not justify nor make legal the . use of means which are false, misleading or deceptive. ORDER.

It is O1'dered That respondent Dejay Stores, Inc.., a corporation, its officers, employees, agents and representatives, directly or through any corporate or other device, in connection with the use in c.commerce as "commerce" is defined in the Federal Trade Commission Act. of double reply postal cards, letters, or any other printed or written material of a substantially similar nature, do forthwith cease and desist from:

1. Using the name "PersonnellVIanagement Bureau," or any other word or words of similar import, to designate, describe or refer to respondent' s business, or otherwise representing, directly or by im- 111 an-plication, that respondent is engaged in operating a personnel agement bureau or employment or placement agency. 2. Using the name "Dejay Serviee Company," or any Other word or words of similar import, to designate, describe ,or refer to respondent' s business, or otherwise representing, directly or by implication that respondent is connected with or in the business of transporting or delivering goods or packages to the proper recipient thereof; 3. Using post cards, form letters or other material which represents directly or by implication, that responclenfs business is other than that of retailing merc.handise.

Lt Representing, (lirectJ~r or by implication, that persons concerning whom information is sought through respondent's post. cards or other material are, or may be, consignees of goods or paclmges, C. O. D.. prepaid or otherwise, in the hands of respondent or that the information sought through such means is for the, purpose of enabling re- spondent to make delivery of goods or pac.kages to such persons. DEJ A Y STORES, INC. 1191 1177 Order 5. Using letters, whether printed, type"written or in simulated handwriting, for the purpose of obtaining the current addresses of delinquent customers, which represent that any person, firm or corporation other than respondent, or respondent's store from which the customer purchased the merchandise on which the debt is owning, has a letter tor delivery to such delinquent customer when his current address is furnished.

onder TO FILE REPORT OF COl\IPLIANCE 1 t is fu,'j,tlwi' ordered That the respondent shall, within sixty (60) da,ys after service upon it of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with in the order to cease and desist (as required by afo:re:said order nncl decision of the Commissions. , . , , 1192 FEDERAL TRADE COMMISSION DECl'31t1)TS Complaint 48 F. T. C.