Japan America trading Agency, Inc.

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

In rue Marrer or JAPAN AMERICA TRADING AGENCY, INC. ET AL.

COMPLAINT, SETTLEMENT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEU. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 6014. Complaint, July 21, 1952—Decision, Apr. 30, 1953 When articles of merchandise, including sewing machines, are exhibited and offered for sale by retailers to the purchasing public not marked showing foreign origin, or if such markings are concealed, such public understands. and believes the articles to be wholly of dumestic origin. There are among the members of the purchasing public a substantial number who have a decided preference for products originating in the United States over products originating in whole or in part in foreign countries, including sewing machine heads.

Where a corporation and its four officers, engaged in the competitive interstate sae and distribution to distributors and retailers of complete sewiug machines, and of sewing machine heads imported by them from Japan upon which the word “Japan” on the back of the vertical arm became covered. by the motor attached to complete the machine, and, displayed in some cases op a readily removable medallion on the front of said ariu, was so small nnd indistinct as not to constitute adequate notice that the heads were inported— Failed to disclose adequately on said heads in such manner that the marks could not veadily be removed, hidden, or obliterated that they were manufactured in Japan:

With tendency and capacity to lead members of the purchasing public into the erroneous belief that their said product was of domestic origin and thereby cause substantial purchase of machines, of which said heads were apart;

Whereby substantial trade in commerce was unfairly diverted to them from their competitors, including makers and sellers of domestic machines sand also sellers of imported machines, of whom some adequately informed the public as to said products’ source or origin, and substantial injury was done to competition in commerce:

Held, That such acts and practices, under the circunstances set forth, were all to the prejudice and injury of the public and respondents’ competitors and constituted unfair and deceptive acts and practices and unfair methods of competition in commerce. ° Before Wr. John Lervis, hearing exaniiner. . Ay, William LT. Taggart and Mr, John C. Williams for the Commission.

Mr, Edward J. Ennis, of New York City, and Chuaman, Me ibhin & Vohozehi, of Los Angeles, Calif.. for respondents, JAPAN AMERICA TRADING AGENCY, INC. ET AL. 1345 1344 Complaint 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 Trades 1 3 1 3 2 652 797 233 41 96.006058 Commission,5 1 3 1 3 3 896 797 128 41 96.558624 having5 1 3 1 3 4 1035 807 118 21 95.130447 reasons 1 3 1 3 5 1162 799 35 28 95.130447 to5 1 3 1 3 6 1208 794 126 33 96.749146 believes 1 3 1 3 7 1345 794 73 31 96.695999 that5 1 3 1 3 8 1456 802 88 30 96.750694 Japan5 1 3 1 3 9 1555 790 158 32 93.265724 Americas 1 3 1 3 10 1724 788 107 33 92.546600 Trad-4 1 3 1 4 0 529 839 1306 52 -1 5 1 3 1 4 1 529 848 62 43 96.239700 ings 1 3 1 4 2 607 848 151 41 93.297020 Agency,5 1 3 1 4 3 776 848 83 39 92.088921 Inc.,5 1 3 1 4 4 878 859 17 20 96.036179 a5 1 3 1 4 5 915 845 227 42 96.036179 corporation,5 1 3 1 4 6 1162 845 67 31 96.873634 ands 1 3 1 4 7 1247 843 90 33 96.562981 Fred5 1 3 1 4 8 1355 842 28 33 91.675606 I.5 1 3 1 4 9 1401 842 122 40 92.182510 Wada,5 1 3 1 4 10 1540 840 96 42 89.162758 Eijui5 1 3 1 4 11 1657 839 178 41 92.486862 Sasajima,4 1 3 1 5 0 527 890 1304 49 -1 5 1 3 1 5 1 527 899 90 31 92.327110 Fred5 1 3 1 5 2 643 899 37 31 88.663757 T.5 1 3 1 5 3 707 897 208 42 96.425423 Kobayashi,5 1 3 1 5 4 940 896 67 33 96.278748 ands 1 3 1 5 5 1033 895 131 41 93.229156 Georges 1 3 1 5 6 1186 895 38 32 89.571930 L.5 1 3 1 5 7 1250 895 174 38 93.477310 Eastman,5 1 3 1 5 8 1448 891 229 42 96.486450 individually5 1 3 1 5 9 1702 890 66 31 95.426102 ands 1 3 1 5 10 1796 899 35 22 93.611008 as4 1 3 1 6 0 524 941 1307 47 -1 5 1 3 1 6 1 524 948 128 33 95.439156 officers5 1 3 1 6 2 674 948 37 33 96.954552 of5 1 3 1 6 3 734 948 74 32 96.551727 said5 1 3 1 6 4 831 947 226 41 96.477493 corporation,5 1 3 1 6 5 1079 944 209 34 96.402145 hereinafter5 1 3 1 6 6 1310 944 152 32 67.309456 referred5 1 3 1 6 7 1484 947 36 30 96.296814 to5 1 3 1 6 8 1543 953 36 21 96.848610 as5 1 3 1 6 9 1601 941 230 41 83.620407 respondents.4 1 3 1 7 0 524 989 1306 49 -1 5 1 3 1 7 1 524 999 89 31 94.098198 have5 1 3 1 7 2 627 998 148 33 96.905678 violated5 1 3 1 7 3 789 998 57 32 96.557167 thes 1 3 1 7 4 860 997 190 41 96.712807 provisions5 1 3 1 7 5 1063 996 38 32 97.001175 of5 1 3 1 7 6 1115 996 74 32 96.761589 said5 1 3 1 7 7 1202 996 77 39 96.516045 Act,5 1 3 1 7 8 1293 995 65 31 96.516045 ands 1 3 1 7 9 1373 995 28 31 96.827728 it5 1 3 1 7 10 1414 990 188 44 96.689384 appearing5 1 3 1 7 11 1614 995 35 28 96.964951 to5 1 3 1 7 12 1662 991 59 32 93.284653 thes 1 3 1 7 13 1735 989 95 34 92.025803 Com-4 1 3 1 8 0 526 1040 1305 49 -1 5 1 3 1 8 1 526 1048 140 32 96.785355 missions 1 3 1 8 2 688 1048 76 32 96.164009 that5 1 3 1 8 3 786 1059 16 20 96.425827 a5 1 3 1 8 4 825 1047 203 42 96.507301 proceedings 1 3 1 8 5 1048 1046 45 41 96.947960 by5 1 3 1 8 6 1115 1046 26 31 96.894875 it5 1 3 1 8 7 1162 1046 36 31 96.203735 in5 1 3 1 8 8 1221 1051 128 34 96.216728 respects 1 3 1 8 9 1369 1043 133 32 96.067398 thereof5 1 3 1 8 10 1525 1041 112 33 96.067398 would5 1 3 1 8 11 1657 1041 40 31 96.866592 be5 1 3 1 8 12 1717 1040 36 31 96.726952 in5 1 3 1 8 13 1774 1040 57 31 97.004738 thea 1 3 1 9 0 526 1090 1306 47 -1 5 1 3 1 9 1 526 1097 116 40 93.448326 public5 1 3 1 9 2 659 1097 148 39 74.792496 interest,5 1 3 1 9 3 824 1097 123 40 96.473511 hereby5 1 3 1 9 4 964 1096 104 32 96.422821 issues5 1 3 1 9 5 1085 1096 44 31 96.810555 its5 1 3 1 9 6 1146 1094 186 40 96.815567 complaints 1 3 1 9 7 1348 1093 128 41 96.898064 stating5 1 3 1 9 8 1491 1093 44 31 96.819542 its5 1 3 1 9 9 1551 1092 139 40 96.444229 charges5 1 3 1 9 10 1705 1090 36 32 96.653557 in5 1 3 1 9 11 1757 1090 75 32 96.976707 that4 1 3 1 10 0 524 1146 363 42 -1 5 1 3 1 10 1 524 1151 131 37 95.855316 respects 1 3 1 10 2 678 1157 35 22 96.127167 as5 1 3 1 10 3 737 1146 150 32 96.646767 follows:3 1 3 2 0 0 521 1190 1310 496 -1 4 1 3 2 1 0 568 1190 1263 48 -1 5 1 3 2 1 1 568 1199 208 31 46.608383 Paracraru5 1 3 2 1 2 794 1200 25 30 80.539360 1.5 1 3 2 1 3 844 1196 216 42 95.488770 Respondents 1 3 2 1 4 1077 1196 112 39 96.340530 Japan5 1 3 2 1 5 1205 1193 156 33 95.987724 Americas 1 3 2 1 6 1377 1192 153 42 96.384995 Trading5 1 3 2 1 7 1544 1192 149 41 93.255554 Agency,5 1 3 2 1 8 1707 1190 82 40 90.650322 Inc.,5 1 3 2 1 9 1804 1190 27 31 88.552124 is4 1 3 2 2 0 527 1241 1304 49 -1 5 1 3 2 2 1 527 1261 15 20 77.013687 25 1 3 2 2 2 562 1249 215 41 94.794174 corporations 1 3 2 2 3 794 1246 180 42 96.810532 organized5 1 3 2 2 4 991 1246 66 32 95.324722 ands 1 3 2 2 5 1074 1245 146 40 96.919807 existing5 1 3 2 2 6 1237 1244 105 32 93.994583 under5 1 3 2 2 7 1359 1243 66 32 95.638992 ands 1 3 2 2 8 1441 1243 43 41 95.638992 by5 1 3 2 2 9 1500 1243 110 31 96.993996 virtues 1 3 2 2 10 1626 1241 38 32 96.984932 of5 1 3 2 2 11 1678 1241 56 31 96.984116 thes 1 3 2 2 12 1750 1241 81 31 94.335304 laws4 1 3 2 3 0 523 1290 1308 46 -1 5 1 3 2 3 1 523 1299 41 31 96.769516 of5 1 3 2 3 2 576 1299 57 31 96.901382 thes 1 3 2 3 3 646 1298 95 32 96.959358 States 1 3 2 3 4 752 1298 38 31 96.784142 of5 1 3 2 3 5 802 1297 202 39 97.015709 California,5 1 3 2 3 6 1019 1295 82 32 96.598167 with5 1 3 2 3 7 1113 1295 43 31 96.598167 its5 1 3 2 3 8 1168 1294 88 32 95.859009 offices 1 3 2 3 9 1268 1295 66 31 95.859009 ands 1 3 2 3 10 1346 1292 170 43 96.887497 principals 1 3 2 3 11 1528 1292 94 41 96.160202 places 1 3 2 3 12 1633 1291 37 32 96.160202 of5 1 3 2 3 13 1680 1290 151 33 96.999512 business4 1 3 2 4 0 523 1340 1305 46 -1 5 1 3 2 4 1 523 1348 133 32 94.377769 located5 1 3 2 4 2 676 1352 35 28 96.593269 at5 1 3 2 4 3 728 1349 122 29 95.702530 324-265 1 3 2 4 4 868 1346 85 32 94.539734 East5 1 3 2 4 5 970 1345 160 41 93.016586 Olympics 1 3 2 4 6 1147 1344 204 37 95.856819 Boulevard,5 1 3 2 4 7 1369 1343 65 32 96.617599 Loss 1 3 2 4 8 1451 1343 158 40 96.641930 Angeles,5 1 3 2 4 9 1627 1340 201 34 96.169212 California.4 1 3 2 5 0 525 1389 1305 49 -1 5 1 3 2 5 1 525 1397 236 41 96.356049 Respondents5 1 3 2 5 2 778 1397 90 31 96.743156 Fred5 1 3 2 5 3 885 1396 27 31 95.955566 I.5 1 3 2 5 4 929 1395 121 39 93.290428 Wada,5 1 3 2 5 5 1069 1395 95 41 90.114174 Eijui5 1 3 2 5 6 1181 1393 179 40 91.501678 Sasajima,5 1 3 2 5 7 1377 1393 89 32 93.281021 Fred5 1 3 2 5 8 1482 1393 39 31 89.429596 T.5 1 3 2 5 9 1539 1391 207 41 96.475586 Kobayashi,5 1 3 2 5 10 1763 1389 67 32 96.475586 anda 1 3 2 6 0 524 1440 1305 48 -1 5 1 3 2 6 1 524 1446 135 42 93.277725 Georges 1 3 2 6 2 680 1446 38 33 91.397209 L.5 1 3 2 6 3 743 1447 164 32 96.510994 Eastman5 1 3 2 6 4 931 1457 57 20 96.251266 ares 1 3 2 6 5 1012 1445 188 40 96.250183 President,5 1 3 2 6 6 1225 1443 187 42 95.332664 Secretary,5 1 3 2 6 7 1438 1443 194 39 95.748436 Treasurer,5 1 3 2 6 8 1657 1441 66 32 96.382454 ands 1 3 2 6 9 1748 1440 81 31 96.382454 Vice4 1 3 2 7 0 527 1490 1302 48 -1 5 1 3 2 7 1 527 1497 188 41 96.717667 President,5 1 3 2 7 2 737 1496 229 41 95.226364 respectively,5 1 3 2 7 3 988 1495 37 32 96.756119 of5 1 3 2 7 4 1045 1499 177 37 96.793205 corporate5 1 3 2 7 5 1242 1494 204 41 96.262917 respondents 1 3 2 7 6 1468 1493 66 31 96.947075 ands 1 3 2 7 7 1556 1492 114 41 96.685806 acting5 1 3 2 7 8 1692 1502 35 20 95.961945 as5 1 3 2 7 9 1748 1490 81 32 96.987717 such4 1 3 2 8 0 521 1541 1309 44 -1 5 1 3 2 8 1 521 1546 128 32 93.626160 officers5 1 3 2 8 2 664 1547 193 38 96.591370 formulate,5 1 3 2 8 3 873 1546 106 31 96.909027 directs 1 3 2 8 4 994 1545 66 31 96.448318 ands 1 3 2 8 5 1075 1545 130 31 96.189415 controls 1 3 2 8 6 1219 1545 58 30 96.376358 thes 1 3 2 8 7 1289 1544 148 40 94.496635 policies,5 1 3 2 8 8 1452 1547 69 27 96.920074 acts5 1 3 2 8 9 1535 1542 67 31 96.416977 ands 1 3 2 8 10 1615 1542 163 40 96.867424 practices5 1 3 2 8 11 1792 1541 38 30 96.918266 of4 1 3 2 9 0 526 1590 1304 48 -1 5 1 3 2 9 1 526 1596 73 31 96.564178 said5 1 3 2 9 2 620 1596 224 42 96.155556 corporation.5 1 3 2 9 3 889 1596 73 31 95.611359 Thes 1 3 2 9 4 982 1591 136 36 95.541771 address5 1 3 2 9 5 1138 1595 37 32 96.592834 of5 1 3 2 9 6 1197 1594 56 32 97.009392 thes 1 3 2 9 7 1273 1593 191 33 96.197319 individuals 1 3 2 9 8 1484 1592 220 41 96.811630 respondents5 1 3 2 9 9 1723 1591 30 32 96.999321 is5 1 3 2 9 10 1772 1590 58 32 96.800774 thea 1 3 2 10 0 522 1644 796 42 -1 5 1 3 2 10 1 522 1656 94 21 94.221298 same5 1 3 2 10 2 635 1656 35 21 94.221298 as5 1 3 2 10 3 688 1646 76 30 96.554916 that5 1 3 2 10 4 783 1646 37 31 96.694107 of5 1 3 2 10 5 837 1646 57 30 96.679047 thes 1 3 2 10 6 912 1649 176 37 96.768692 corporate5 1 3 2 10 7 1105 1644 213 40 96.676796 respondent.3 1 3 3 0 0 521 1692 1315 591 -1 4 1 3 3 1 0 568 1692 1261 45 -1 5 1 3 3 1 1 568 1698 80 30 80.645241 Par.5 1 3 3 1 2 664 1699 28 29 80.645241 2.5 1 3 3 1 3 715 1696 234 41 96.663506 Respondents5 1 3 3 1 4 964 1706 55 20 96.931274 ares 1 3 3 1 5 1031 1705 85 28 95.625809 now,5 1 3 3 1 6 1131 1694 66 31 95.625809 ands 1 3 3 1 7 1210 1694 84 31 96.812157 have5 1 3 3 1 8 1308 1692 80 33 96.220451 been5 1 3 3 1 9 1402 1692 55 32 96.220451 for5 1 3 3 1 10 1471 1703 90 21 96.219582 some5 1 3 3 1 11 1572 1692 82 31 96.995033 times 1 3 3 1 12 1666 1692 65 30 96.814270 lasts 1 3 3 1 13 1743 1693 86 38 96.570145 past,4 1 3 3 2 0 521 1740 1308 48 -1 5 1 3 3 2 1 521 1747 155 41 96.541214 engaged5 1 3 3 2 2 694 1747 37 31 95.739822 in5 1 3 3 2 3 747 1747 57 31 95.739822 thes 1 3 3 2 4 820 1746 67 31 97.008125 sales 1 3 3 2 5 904 1745 37 32 97.002373 of5 1 3 3 2 6 958 1745 127 40 96.835884 sewing5 1 3 3 2 7 1100 1743 153 32 96.581238 machines 1 3 3 2 8 1269 1743 103 32 96.703560 heads5 1 3 3 2 9 1388 1743 170 41 94.914246 imported5 1 3 3 2 10 1573 1742 43 40 96.941414 by5 1 3 3 2 11 1631 1741 91 32 96.232613 them5 1 3 3 2 12 1739 1740 90 33 96.910835 from4 1 3 3 3 0 521 1792 1308 45 -1 5 1 3 3 3 1 521 1797 120 40 94.149429 Japan5 1 3 3 3 2 658 1797 66 30 95.832291 ands 1 3 3 3 3 740 1796 164 40 95.832291 completes 1 3 3 3 4 920 1794 126 42 96.397682 sewing5 1 3 3 3 5 1061 1794 170 30 96.734520 machines5 1 3 3 3 6 1246 1793 38 31 96.721916 of5 1 3 3 3 7 1300 1793 110 31 96.848572 which5 1 3 3 3 8 1426 1793 73 31 94.872742 said5 1 3 3 3 9 1515 1792 103 32 94.872742 heads5 1 3 3 3 10 1634 1803 57 19 96.313850 ares 1 3 3 3 11 1706 1802 19 19 96.841087 a5 1 3 3 3 12 1740 1794 89 37 96.457245 part,4 1 3 3 4 0 523 1840 1307 44 -1 5 1 3 3 4 1 523 1852 37 28 90.102318 to5 1 3 3 4 2 583 1846 218 33 95.863495 distributors5 1 3 3 4 3 823 1845 67 34 95.767731 ands 1 3 3 4 4 912 1845 68 33 95.767731 also5 1 3 3 4 5 1003 1849 34 28 96.531303 to5 1 3 3 4 6 1058 1844 153 32 96.469170 retailers5 1 3 3 4 7 1232 1843 86 41 96.631493 who,5 1 3 3 4 8 1339 1843 33 32 96.843369 in5 1 3 3 4 9 1395 1846 90 37 95.823196 turn,5 1 3 3 4 10 1507 1842 60 32 95.989944 sells 1 3 3 4 11 1588 1842 58 32 95.989944 thes 1 3 3 4 12 1666 1840 164 42 96.481712 complete4 1 3 3 5 0 526 1891 1304 48 -1 5 1 3 3 5 1 526 1898 127 41 95.939850 sewing5 1 3 3 5 2 666 1897 170 32 96.693810 machines5 1 3 3 5 3 850 1900 35 27 96.992004 to5 1 3 3 5 4 899 1896 58 31 96.914772 thes 1 3 3 5 5 971 1894 207 42 96.524803 purchasing5 1 3 3 5 6 1192 1893 123 41 95.366943 public.5 1 3 3 5 7 1351 1893 43 31 95.830849 In5 1 3 3 5 8 1407 1893 57 31 95.830849 thes 1 3 3 5 9 1478 1902 115 22 96.106316 courses 1 3 3 5 10 1607 1892 66 31 96.239937 ands 1 3 3 5 11 1687 1891 143 31 96.550560 conduct4 1 3 3 6 0 527 1939 1302 47 -1 5 1 3 3 6 1 527 1947 36 31 96.613380 of5 1 3 3 6 2 583 1947 89 32 96.954918 theirs 1 3 3 6 3 689 1947 151 31 96.231079 business5 1 3 3 6 4 858 1944 220 42 96.231079 respondents5 1 3 3 6 5 1096 1954 97 21 96.254021 causes 1 3 3 6 6 1210 1944 88 31 96.927017 theirs 1 3 3 6 7 1316 1943 72 32 96.270164 said5 1 3 3 6 8 1408 1942 154 41 96.270164 product,5 1 3 3 6 9 1579 1941 97 32 96.978760 when5 1 3 3 6 10 1694 1939 83 42 96.691803 sold,5 1 3 3 6 11 1795 1943 34 28 96.925201 to4 1 3 3 7 0 523 1989 1307 49 -1 5 1 3 3 7 1 523 1998 43 31 96.821358 be5 1 3 3 7 2 580 1996 217 42 96.375702 transported5 1 3 3 7 3 814 1996 91 31 96.412773 from5 1 3 3 7 4 919 1994 90 33 96.667725 theirs 1 3 3 7 5 1024 1995 94 40 96.695465 places 1 3 3 7 6 1132 1993 38 33 96.752037 of5 1 3 3 7 7 1186 1993 150 32 96.908051 business5 1 3 3 7 8 1350 1992 35 32 96.926636 in5 1 3 3 7 9 1400 1992 58 32 96.926636 thes 1 3 3 7 10 1473 1991 97 34 96.508392 States 1 3 3 7 11 1584 1992 38 31 96.508392 of5 1 3 3 7 12 1637 1989 193 34 96.959923 California4 1 3 3 8 0 526 2039 1304 49 -1 5 1 3 3 8 1 526 2053 34 26 97.003494 to5 1 3 3 8 2 575 2048 57 31 96.915787 thes 1 3 3 8 3 647 2046 199 42 96.208084 purchasers5 1 3 3 8 4 859 2044 133 33 96.810242 thereof5 1 3 3 8 5 1006 2043 130 32 96.591049 located5 1 3 3 8 6 1150 2043 35 31 96.789444 in5 1 3 3 8 7 1198 2043 136 31 96.358261 various5 1 3 3 8 8 1346 2042 97 32 96.579323 others 1 3 3 8 9 1456 2041 113 33 96.924026 States5 1 3 3 8 10 1582 2041 38 32 96.871300 of5 1 3 3 8 11 1638 2041 52 31 96.990036 thes 1 3 3 8 12 1714 2039 116 40 96.455254 United4 1 3 3 9 0 524 2089 1305 46 -1 5 1 3 3 9 1 524 2097 117 32 96.665886 States5 1 3 3 9 2 661 2096 67 32 96.551048 ands 1 3 3 9 3 749 2095 175 40 96.214561 maintain,5 1 3 3 9 4 946 2094 67 32 96.776031 ands 1 3 3 9 5 1033 2098 35 27 96.458336 at5 1 3 3 9 6 1088 2094 45 31 95.448013 all5 1 3 3 9 7 1153 2092 98 33 96.437180 times5 1 3 3 9 8 1270 2091 193 33 96.666916 mentioned5 1 3 3 9 9 1483 2091 115 32 96.124031 herein5 1 3 3 9 10 1618 2091 87 31 93.290939 have5 1 3 3 9 11 1723 2089 106 33 92.969727 main-4 1 3 3 10 0 523 2139 1307 47 -1 5 1 3 3 10 1 523 2146 130 40 96.254242 tained,5 1 3 3 10 2 675 2157 19 21 96.761383 a5 1 3 3 10 3 715 2157 115 20 90.932556 courses 1 3 3 10 4 851 2145 37 31 96.358429 of5 1 3 3 10 5 910 2144 97 32 96.358429 trades 1 3 3 10 6 1028 2144 35 31 96.955620 in5 1 3 3 10 7 1084 2143 74 32 96.509338 said5 1 3 3 10 8 1179 2142 161 41 96.561066 products5 1 3 3 10 9 1361 2142 35 31 96.273270 in5 1 3 3 10 10 1417 2151 183 22 96.745087 commerce5 1 3 3 10 11 1621 2151 123 30 96.305847 among5 1 3 3 10 12 1765 2139 65 32 96.619247 anda 1 3 3 11 0 526 2188 1310 40 -1 5 1 3 3 11 1 526 2197 147 31 96.048584 between5 1 3 3 11 2 696 2196 57 32 96.690948 thes 1 3 3 11 3 774 2195 137 31 92.613388 various5 1 3 3 11 4 933 2194 111 32 96.464539 States5 1 3 3 11 5 1066 2194 38 30 96.738129 of5 1 3 3 11 6 1125 2193 56 31 96.438622 thes 1 3 3 11 7 1203 2192 128 33 96.571068 United5 1 3 3 11 8 1355 2190 120 34 93.261375 States.5 1 3 3 11 9 1521 2190 104 32 77.417046 Theirs 1 3 3 11 10 1646 2190 132 31 96.424271 volumes 1 3 3 11 11 1798 2188 38 32 96.473732 of4 1 3 3 12 0 524 2236 996 47 -1 5 1 3 3 12 1 524 2247 101 32 95.935265 trades 1 3 3 12 2 640 2247 37 31 95.935265 in5 1 3 3 12 3 694 2246 73 32 96.505432 said5 1 3 3 12 4 785 2255 182 23 95.942070 commerce5 1 3 3 12 5 983 2244 60 32 96.701363 has5 1 3 3 12 6 1059 2236 94 47 96.994133 been,5 1 3 3 12 7 1170 2242 66 33 96.712845 ands 1 3 3 12 8 1253 2242 39 40 96.771545 is,5 1 3 3 12 9 1309 2241 211 33 95.791878 substantial.3 1 3 4 0 0 518 2289 1318 451 -1 4 1 3 4 1 0 571 2289 1262 45 -1 5 1 3 4 1 1 571 2296 80 32 91.558678 Par.5 1 3 4 1 2 673 2298 28 29 94.204468 3.5 1 3 4 1 3 724 2295 110 32 96.434700 When5 1 3 4 1 4 853 2295 58 31 95.826416 thes 1 3 4 1 5 930 2292 126 42 96.580330 sewing5 1 3 4 1 6 1075 2292 153 31 96.355057 machines 1 3 4 1 7 1245 2291 104 32 95.745605 heads5 1 3 4 1 8 1368 2301 55 22 96.331985 ares 1 3 4 1 9 1443 2290 150 32 96.370560 received5 1 3 4 1 10 1612 2290 43 41 93.282188 by5 1 3 4 1 11 1675 2289 158 42 90.261963 respond-4 1 3 4 2 0 526 2337 1306 50 -1 5 1 3 4 2 1 526 2353 88 34 95.434906 ents,5 1 3 4 2 2 629 2347 58 31 96.201805 thes 1 3 4 2 3 702 2346 95 32 95.291824 words 1 3 4 2 4 813 2344 155 42 95.291824 “Japan”5 1 3 4 2 5 985 2354 143 30 96.237602 appears5 1 3 4 2 6 1144 2354 43 20 96.771118 on5 1 3 4 2 7 1201 2343 57 31 96.771118 thes 1 3 4 2 8 1273 2342 84 32 96.908211 backs 1 3 4 2 9 1372 2341 38 32 96.980553 of5 1 3 4 2 10 1424 2341 57 32 96.934677 thes 1 3 4 2 11 1496 2340 141 32 96.902405 vertical5 1 3 4 2 12 1652 2351 81 20 92.591896 arm.5 1 3 4 2 13 1771 2337 61 34 92.591896 Be-4 1 3 4 3 0 531 2391 1302 43 -1 5 1 3 4 3 1 531 2398 74 31 96.456367 fore5 1 3 4 3 2 624 2397 57 31 96.142517 thes 1 3 4 3 3 697 2397 105 31 95.827744 heads5 1 3 4 3 4 821 2406 56 21 95.734177 ares 1 3 4 3 5 895 2395 73 32 95.734177 sold5 1 3 4 3 6 985 2398 35 27 94.874001 to5 1 3 4 3 7 1038 2394 58 31 94.874001 thes 1 3 4 3 8 1112 2392 208 42 96.057442 purchasing5 1 3 4 3 9 1338 2392 114 41 96.610367 public5 1 3 4 3 10 1471 2403 35 20 94.685448 as5 1 3 4 3 11 1523 2403 19 19 94.685448 a5 1 3 4 3 12 1558 2394 80 38 96.412552 parts 1 3 4 3 13 1656 2391 38 31 96.599632 of5 1 3 4 3 14 1712 2401 18 20 92.891922 a5 1 3 4 3 15 1747 2400 86 21 92.683464 com-4 1 3 4 4 0 530 2439 1304 50 -1 5 1 3 4 4 1 530 2449 90 40 96.396393 plete5 1 3 4 4 2 641 2447 127 41 96.515411 sewing5 1 3 4 4 3 788 2445 163 40 96.466133 machine,5 1 3 4 4 4 972 2445 29 31 96.137505 it5 1 3 4 4 5 1021 2445 28 31 96.137505 is5 1 3 4 4 6 1068 2454 174 30 96.817772 necessary5 1 3 4 4 7 1261 2447 35 27 96.601051 to5 1 3 4 4 8 1317 2442 114 31 96.530121 attach5 1 3 4 4 9 1451 2454 19 20 96.941086 a5 1 3 4 4 10 1489 2445 110 28 96.731117 motors 1 3 4 4 11 1618 2445 34 28 96.297516 to5 1 3 4 4 12 1672 2440 57 32 96.660637 thes 1 3 4 4 13 1747 2439 87 32 96.904282 head4 1 3 4 5 0 526 2490 1310 49 -1 5 1 3 4 5 1 526 2499 37 31 91.996613 in5 1 3 4 5 2 595 2499 56 31 96.402451 thes 1 3 4 5 3 685 2508 133 31 96.402451 process5 1 3 4 5 4 850 2496 37 33 96.454109 of5 1 3 4 5 5 919 2495 109 32 96.588791 which5 1 3 4 5 6 1060 2495 57 32 96.506378 thes 1 3 4 5 7 1148 2493 171 33 96.731850 aforesaid5 1 3 4 5 8 1351 2492 92 32 96.833885 words 1 3 4 5 9 1475 2491 29 33 95.800827 is5 1 3 4 5 10 1534 2492 139 32 96.419975 covered5 1 3 4 5 11 1705 2490 44 42 96.419975 by5 1 3 4 5 12 1779 2490 57 32 96.752495 thea 1 3 4 6 0 518 2541 1314 42 -1 5 1 3 4 6 1 518 2554 122 27 0.000000 -notor5 1 3 4 6 2 660 2560 35 21 96.838356 so5 1 3 4 6 3 715 2548 76 32 96.638405 that5 1 3 4 6 4 809 2548 28 30 95.832573 it5 1 3 4 6 5 856 2547 29 31 95.832573 is5 1 3 4 6 6 903 2549 60 29 96.557526 not5 1 3 4 6 7 981 2545 128 32 94.489273 visible.5 1 3 4 6 8 1150 2544 43 32 96.155579 In5 1 3 4 6 9 1212 2555 89 20 96.507721 some5 1 3 4 6 10 1319 2544 177 39 96.507721 instances,5 1 3 4 6 11 1514 2542 75 32 95.530579 said5 1 3 4 6 12 1607 2542 112 39 96.517418 heads,5 1 3 4 6 13 1738 2541 94 31 96.913315 when4 1 3 4 7 0 530 2590 1305 51 -1 5 1 3 4 7 1 530 2599 150 33 96.261978 received5 1 3 4 7 2 698 2599 44 42 96.362587 by5 1 3 4 7 3 762 2597 230 42 96.191727 respondents,5 1 3 4 7 4 1012 2607 56 21 96.027740 ares 1 3 4 7 5 1087 2594 139 33 96.613655 marked5 1 3 4 7 6 1244 2594 83 32 96.294189 with5 1 3 4 7 7 1346 2605 19 20 95.266624 a5 1 3 4 7 8 1381 2593 184 32 96.727356 medallion5 1 3 4 7 9 1582 2592 119 41 96.516296 placed5 1 3 4 7 10 1719 2602 42 21 96.993202 on5 1 3 4 7 11 1779 2590 56 33 96.993202 thea 1 3 4 8 0 532 2642 1301 46 -1 5 1 3 4 8 1 532 2652 97 31 95.849113 fronts 1 3 4 8 2 652 2650 37 33 96.517281 of5 1 3 4 8 3 713 2650 58 32 96.792328 thes 1 3 4 8 4 794 2648 141 32 96.760330 vertical5 1 3 4 8 5 960 2659 72 20 96.146698 arms 1 3 4 8 6 1055 2656 89 32 96.016289 upon5 1 3 4 8 7 1171 2644 109 33 96.810539 which5 1 3 4 8 8 1304 2645 58 32 95.823021 thes 1 3 4 8 9 1384 2644 94 32 96.113068 words 1 3 4 8 10 1501 2642 155 42 96.113068 “Japan”5 1 3 4 8 11 1681 2651 152 32 96.055893 appears.4 1 3 4 9 0 528 2694 1307 46 -1 5 1 3 4 9 1 528 2702 86 32 96.748985 This5 1 3 4 9 2 634 2701 94 32 96.367622 words 1 3 4 9 3 749 2701 37 39 96.505699 is,5 1 3 4 9 4 805 2700 165 38 96.634178 however,5 1 3 4 9 5 990 2708 35 22 96.826065 so5 1 3 4 9 6 1045 2697 98 32 89.272293 small5 1 3 4 9 7 1163 2696 67 33 96.016617 ands 1 3 4 9 8 1249 2695 178 33 96.016617 indistinct5 1 3 4 9 9 1445 2694 76 33 96.895721 that5 1 3 4 9 10 1539 2694 29 31 96.757202 it5 1 3 4 9 11 1586 2694 78 31 96.590157 does5 1 3 4 9 12 1681 2695 61 29 93.252861 not5 1 3 4 9 13 1759 2702 76 21 92.615181 con- Complaint 49 FL T.C.

stitute adequate notice to the public that the heads are imported. Furthermore, said medallion can be readily removed and when the medallion is so removed, no visible mark of origin appears on the machine. Respondents place no other mark on their imported sewing machine heads or complete sewing machines of which said heads are a part showing foreign origin, or otherwise inform the public that the heads are of foreign origin before they are offered for sale to the public.

Par. 4. When articles of merchandise, including sewing machines, are exhibited and offered for sale by retailers to the purchasing public, and such articles are not marked or are not adequately marked showing that they are of foreign origin, or if marked and the markings are covered or otherwise concealed, such purchasing public understands and believes such articles to be wholly of domestic origin. Par. 5. There is among the members of the purchasing public a substantial number who have a decided preference for products originating in the United States over products originating in whole or in part in foreign countries, including sewing machine heads. Par. 6. Respondents, by placing in the hands of dealers their said sewing machine heads and complete sewing machines, provide said dealers a means and instrumentality whereby they may mislead and deceive the purchasing public as to the place of origin of said heads. Par. 7. Respondents, in the course and conduct of their business,. are in substantial competition in commerce with the makers and sellers of domestic sewing machines and also with sellers of imported machines, some of whom adequately inform the public as to the source of origin of their said product.

Par. 8. The failure of respondents to adequately disclose on the sewing machine heads, in a manner which cannot readily be removed. hidden or obliterated, that they are manufactured in Japan has the tendency and capacity to lead members of the purchasing public into the erroneous and mistaken belief that their said product is of domestic origin and to cause substantial numbers of the purchasing public to purchase sewing machines of which said heads are a part because of said erroneous and mistaken belief.

Asa result thereof, substantial trade in commerce has been unfairly diverted to respondents from their competitors and substantial injury has been and is being done to competition in commerce. Par. 9. The aforesaid acts and practices of respondents, as herein alleged, are all to the prejudice and injury of the public and of respondents’ competitors and constitute unfair and deceptive acts and practices and unfair methods of competition in commerce, within the intent and meaning of the Federal Trade Commission Act. JAPAN AMERICA TRADING AGENCY, INC. ET AL. 1347 1344 Findings CONSENT SETTLEMENT * Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on July 21, 1952, issued and subsequently served its complaint on the respondents named in the caption hereof, charging them with the use of unfair methods of competition and unfair and deceptive acts and practices in violation of the provisions of said Act.

The respondents, desiring that this proceeding be disposed of by the consent settlement procedure provided in Rule V of the Commission’s Rules of Practice, solely for the purposes of this proceeding, any review thereof, and the enforcement of the order consented to, and conditioned upon the Commission’s acceptance of the consent settlement hereinafter set forth, and in lieu of answer to said complaint, hereby:

1. Admit all the jurisdictional allegations set forth in the complaint. 2. Consent that the Commission may enter the matters hereinafter set forth as its findings as to the facts, conclusion, and order to cease and desist. It is understood that the respondents, in consenting to the Commission’s entry of said findings as to the facts, conclusion, and order to cease and desist, specifically refrain from admitting or denying that they have engaged in any of the acts or practices stated there- ‘in to be in violation of Jaw.

3. Agree that this consent settlement may be set aside in whole or in part under the conditions and in the manner provided in paragraph (f) of Rule V of the Commission’s Rules of Practice. The admitted jurisdictional facts, the statement of the acts and practices which the Commission had reason to believe were unlawful, the conclusion based thereon, and the order to cease and desist, all of which the respondent consents may be entered herein in final disposition of this proceeding, are as follows:

FINDINGS AS TO THE FACTS Paracrary 1. Respondent Japan America Trading Agency, Inc., is a corporation organized and existing under and by virtue of the laws of the State of California, with its office and principal place of business located at 324-26 East Olympic Boulevard, Los Angeles, California. Respondents Fred I. Wada, Eijui Sasajima and George 1The Commission’s ‘‘Notice’ announcing and promulgating the consent settlement as published herewith, follows :

The consent settlement tendered by the parties in this proceeding, a copy of which is served herewith, was accepted by the Commission on April 30. 1953 and ordered entered of record as the Commission’s findings as to the facts, conclusion, and order in disposition of this proceeding. .

The time for filing report of compliance pursuant to the aforesaid order runs from the date of service hereof.

Findings 49 FL TLC.

L. Eastman are President, Secretary-Treasurer and Vice-President, respectively, of corporate respondent and acting as such officers formulate, direct and control the policies, acts and practices of said corporation. Respondent Fred T. Kobayashi formerly was Treasurer of corporate respondent. The address of the individual respondents, except that of Fred T. Kobayashi, is the same as that of the corporate respondent. The address of Fred T. Kobayashi is 1787 West Adams Street, Los Angeles, California.

Par. 2. Respondents are now, and have been for some time last past, engaged in the sale of sewing machine heads imported by them from Japan and complete sewing machines of which said heads are a part, to distributors and also to retailers who, in turn, sell the complete sewing machines to the purchasing public. In the course and conduct, of their business respondents caused their said product, when sold, to be transported from their place of business in the State of California to the purchasers thereof located in various other States of the United States and have maintained a course of trade in said products in commerce among and between the various States of the United States. Their volume of trade in said commerce has been substantial. Par. 8. When the sewing machine heads were received by respondents, the word “Japan” appeared on the back of the vertical arm. Before the heads were sold to the purchasing public as a part of a complete sewing machine, it was necessary to attach a motor to the head in the process of which the aforesaid word was covered by the motor so that it was not visible. In some instances, said heads, when received by respondents, were marked with a medallion placed on the front of the vertical arm upon which the word “Japan” appears. This word was, however, so small and indistinct that it did not constitute adequate notice to the public that the heads were imported. Furthermore, said medallion could be readily removed and when the medallion was so removed, no visible mark of origin appeared on the machine. ;

Respondents placed no other mark on their imported sewing machine heads or complete sewing machines of which said heads were a part showing foreign origin, or otherwise informed the public that the heads were of foreign origin before they were offered for sale to the public.

Par. 4. When articles of merchandise, including sewing machines, are exhibited and offered for sale by retailers to the purchasing public, and such articles are not marked or are not adequately marked showing that they are of foreign origin, or if marked and the markings are covered or otherwise concealed, such purchasing public under- ‘stands and believes such articles to be wholly of domestic origin. JAPAN AMERICA TRADING AGENCY, INC. ET AL. 1349 1344 Order Par. 5. There are among the members of the purchasing public a substantial number who have a decided preference for products originating in the United States over products originating in whole or in part in foreign countries, including sewing machine heads. Par. 6. Respondents, by having placed in the hands of dealers their said sewing machine heads and complete sewing machines, provided said dealers a means and instrumentality whereby they may have misled and deceived the purchasing public as to the place of origin of said heads.

Par. 7. Respondents, in the course and conduct of their business, were in substantial competition in commerce with the makers and sellers of domestic sewing machines and also with sellers of imported machines, some of whom adequately informed the public as to the source of origin of their said product.

Par. 8. The failure of respondents to have adequately disclosed on the sewing machine heads, in a manner which could not readily be removed, hidden or obliterated, that they were manufactured in Japan had the tendency and capacity to lead members of the purchasing public into the erroneous and mistaken belief that their said product was of domestic origin and to have caused substantial numbers of the purchasing public to purchase sewing machines of which said heads were a part because of said erroneous and mistaken belief. As a result thereof, substantial trade in commerce was unfairly diverted to respondents from their competitors and substantial injury has been done to competition in commerce.

CONCLUSION The acts and practices of the respondents, as herein found, were all to the prejudice and injury of the public and of respondents’ competitors and constitute unfair and deceptive acts and practices and unfair methods of competition, in commerce, within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST It is ordered, That the respondents, Japan America Trading Agency, Inc., a corporation, and its officers, and Fred I. Wada, Eijui Sasajima, Fred T. Kobayashi, and George L. Eastman, individually and as officers of said corporation, and said respondents’ representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of sewing machine heads or sewing machines in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease: and desist from :

Order 49 F. TC, 1. Offering for sale, selling or distributing foreign-made sewing machine heads, or sewing machines of which foreign-made heads are a part, without clearly and conspicuously disclosing on the heads the country of origin thereof, in such a manner that it cannot readily be hidden or obliterated.

It is further ordered, That the respondents, Japan America Trading Agency, Inc., a corporation, and Fred I. Wada, Eijui Sasajima, TI'red T. Kobayashi, and George L. Eastman, individually and as officers of said corporation, shall within sixty days after service upon them of this order. file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.

[S] Cutarax, MecKipsry & YORKOZEKI Cuuman, McKinsry & Yoxkozexk1 By: Davi McKiupnin [S] David MsKibbin [S] Frep I. Wapa JAPAN AMERICA TRADING AGENCY, INC., a corporation, with its office and principal place of business located at 324-26 E. Olympic Bivd., Los Angeles, California; and Frep I. Wapa {[S] Fred I. Wada Exgsut SassgIMa ° [S] Eijui Sasajima Frep T. Kopayasui [S] Fred T. Kobayashi Grorcr L. Eastaan [S] George L. Eastman, individually and as officers of . said corporation.

Attorney for Respondents. - Respondents.

December 20, 1959.

The foregoing consent settlement is hereby accepted by the Federal Trade Commission and ordered entered of record this 30th day of April, 1953.

ROYAL SEWING MACHINE CORP. ET AL. 1351 Syllabus