R. D. Anderson

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

IN THE 1L'TTEH m' R. D. ANDERSON DOING BUSINESS AS GUARANTEED SILVEI WARE DISTRIBUTORS AND AMERICAN SILVERWARE BUREAU ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF 'TII FEDERAL TRADE COl\HUSSION ACT Docket 6200. Complaint, Apr. 1954~J)eci8ion, May, 1956 Order requiring a seller in Mayfield, Ky., of silverware and certificates redeemable in sil verware, to cease representing falsely through his agents employed to solicit retail dealers~ (1) That he was the agent of the International Silver Co. which had adopted a redeemable certificate sales plan to advertise its well-known "Hagel's Bros. 1847" silverware, and that that brand of silverware would be fur. nished to holders of certificates;

(2) That he would furnish to the purchaser of certificates a complete set of 52 matcl1ed pieces of such silverware in a tarnish-proof chest for display purposes, after which it would be the property of the purchaser; and (3) That dealers approached by his salesmen had been specially selected by him to distribute such certificates in a specific trade area and that the redemption plan would be made available to only one purchaser in that area. Mr. Frederick McManus for the Commission. INITIAL DECISlOX By JAMES A. PURCELL , I-IEAHING EXAMINER Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission on April 8 , 1954, issued and subsequently served its complaint upon the respondent named in the caption hereof, charging him \with the use of unfair and deceptive acts and practices and unfa.ir methods of competition in commerce \within the intent and meaning of said Act. On June 1, 1954, respondent filed answer to the complaint which, in efiect, denied those allegations of the complaint charging violations of the Act. Thereafter hearings were held in regular course at \which testimony and other evidence in support of the allegations of the complaint were received by the above-named I-IearingExamlner theretofore designated to act by the Commission, said testimony and evidence being only recorded and fied in the office of the Commission. Respondent \vhile exercising his right of cross-examination of Commission witnesses, offered no testimony or evidence in opposition to the charges contained in the complaint.

On "'ray 10 , 1955, counsel in support of the complaint rested his case in chief and on September 19, 1955, at a regularly scheduled hear- 1372 FEDERAL TRADE CO'-'-ISSION DECISIONS Findings 52 F. T. C.

ing, the respondent personally appeared and executed and filed an "Admission Answer " duly placed of record herein, by the specific terms of which he: (1) withdrew his denial answer fied June 1, 1954 as aforesaid; (2) admitted all of the material allegations of fact set forth in the complaint; (3) waived further hearings as to said facts; (4) waived all intervening procedure, and, (5) agreed that the IIeaTing Examiner proceed to an initial decision and an order to cease and desist.

Thereafter t,he 1-Iea.ring Examiner proceeded with his consideration of the case on the basis of the record, consisting of the complaint a.nd admission answer (and not considering the testimony and evidence so as aforesaid of record, the IIearing Examiner being of opinion that such consic1enLtion t.hereof is not neeessftry in order to arrive at a cle,cisioll and the issuanc.e of a proper order) and finds that this proceeding is in the public intel'cst ,yherefore he makes the following findings as to the facts, conclusions dnnyn therefrom, and order: FIXDIXGS AS TO THE FACTS 1. R. D. Anderson is an incliyiduaJ doing business as Guaranteed Silverware Distributors and A.mel'iean Silverware Bureau, with a place of bminess at 1210 South 10th Street, Mayfield in the State of Kentucky. Re,spondent is now, and for five years last past has been engaged in the sale and distribution in commerce among a,nel between the various States of the 'Cnjtecl States a.nd in the District or Columbia of silyenntre and certificates, cards or coupons redecmable in silverware.

2. Respondent, in the eour80 a,nd conduct of his business and in order to promote the sale of his silverware, has adopted a scheme or plan '\which provides that retail dealers may purchase from him certificates, eards or coupons '\which he agrees to accept, together with a stipulated sum of rnoney, in payment for silvenyare. Respondent a.grees to cause to be imprinted upon sllid eeTtificates~ cards or coupons the firm name of the retail dealers who purchase said certificates, cards or coupons ancl said retail dealers agree to furnish or give sa.id certificates, cards or coupons to the retail dealers: customers as a pre.mium for purchases of merchandise from said retail dealers. I\respondent agre,es to remit. to said retail dealers a bonus or commission of 15% of the amounts rec.eived by respondent from the retail dealers' customers in payment for silver and to give a set of 52 pieces of matched silverware to each retailer who purchases 2, 000 certificates, cards or coupons.

3. Respondent CtLUSes sneh silverware and certificates, cards or coupons with which such silverware is redeemable, to be shipped and GUARA:-TEED SILVERWARE DISTRIBUTORS, ETC. 1373 1371 Findings transport.ed from respondent's place of business in the State of ICentucky to purchasers thereof located in various other States of thc United States and the District of Columbia. Respondent maintains a constant current of trade and comnlerce among and between the various States of the United States and the District of Columbia, in the sale and distribution of said silvcrware and certificates, cards or coupons.

4. Respondent, in the course and conduct of said business, is now and at all times herein re.feTl'cd to hlls been, in substantial competition with other individuals and with corporations, partnerships and firms engaged in the sale and distribution of silvcrware and certificates cards or coupons redcenulble in silverware. 5. It is, and has been, the practice of respondent, when carrying on his business under the trade names hereinabove described, to employ agents or salesmen to solicit retail dealers. Said agents or salesmen acting in the scope of their employment and under the direction and supcrvision of said respondent ill connection with the offering for sale and selling said certificates, cards or coupons have represented to the prospective purchaser, to induce said purchaser to purchase said certificatcs, coupons or cards, that the respondent, doing business as Guaranteed Silverware Distributors and A_american Silverware Bureau, is the agent of or connected with the International Silvcr Co., manufact.urer of silvenyare, and that said manufacturer has adopted a redeemable certificate, card or conpon sales plan as a method of advertising its ,vcll kno1Vn "Rogers Bros. 1847': silverware and that the silverware furnished to t.he holders of certificates, and/or coupons will be said brand; that respondent will furnish to the purchaser of certificatcs~ cards or coupon, , a complete set of 52 matched pieces of sllch silverware in a tarnish proof chest for display purposes after which same will be the property of the purchaser; tha,t dealers approached by respondent's salesmen have been specially selected by respondent to distribute sneh certificates, cards or coupons in a specific tra.de area a.nel that the silverware redemption plan will be made availrLble to only Olle purchaser in such t.trade area. o. All of said l'cpl'CSenhLtions as above set forth and many ot.her similar representations not specificany mentioned herein arc deceptive, false and misleading in material respects. In truth and in fact t.he respondent is not in any manner connected 'wit.h any manufacturer of silverware except as a purchaser of silverware. The certificates ca.rds or coupons sold by respondent are not an advertising method adopted by any manufacturer of silvenyarc but ate a scheme promulgntec1 by respondent io sell silverware. The silvenvare sold by respondent is not "Rogers Bros. 18.17" silverware but is " Rogers & 451524--59-- 1374 FEDERAL TRADE CO:M\IISSIOX DECISIONS Order 52 F.

Bros." a different anc11ess expensive brand of silverware. The silverware furnished to purchasers of respondent's certificates, cards or coupons arb not complete sets of silver or of the same style and pattern and consist of substantially less than 52 pieces. The chests in which the silver is contained are not tarnish proof. Dealers offered the eertificate, , cards or coupons and the silver redemption plan are not specially selected. On the contrary, respondent offers to selll1.nc1 se.lls said certificates, cards or coupons and ma.kes the redemption plan available indiscriminately whcrever he can find a purchaser. 7. The use by respondent of the foregoing false, misleading and deceptive statements has the capacity and tendency to lead retailers into the erroneous and mistaken belief that said statements and representations arb true and into the purchase of substantial quantities of respondent' s silverware redemption certificates, cards or coupons because of such erroneous and mistaken belief. As a result thereof substantial trade ill commerce has been unfairly diverted to respondent from his competitors and subst.antial injury has been done to competition in commerce.

CONCLUSION The aforesaid acts and practices of the respondent as herein found are an to the prejudice and injury of the public and of respondent' 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 J t is ordered That the respondent., R. D. Anderson, doing business as Guaranteed Silverware Distributors, or . american Silverware Bureau, or under any other na.. , and respondent's agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of certificates, cards, coupons, or silverware, or any other merchandise in commerce as "commerce" is defined in t.he Federal Trade Commission Act, do forthwith cease and desist from: 1. R.representing in any manner that he is agent for, or representative of, or is in any other manner connected with, the International Silver Company or any other manufacturer of si1vcT\yare. 2. R.representing that the said certificatcs~ cards, or coupons are a part of, or connected in any way with, any sales plan or method of advertising a.adopted by any manufacturer of silverware or by anyone ot.her than the respondent.

G'CARANTEED SILVERWARE DISTRIB'CTORS ) ETC. 1375 1371 Decision 3. Representing that the silverware which will be furnished to purchasers of the said certificates, cards, or coupons or to the holders thereof, is any different brand, or is any different in style or quantity, or in any other way, from that which is actually furnished or that the chests furnishcd to said purchasers are tarnish proof. 4. Representing that thc retail dcaJers to whom said certificates coupons, or cards are offered are especially selccted or that respondent s silverware redemption plan will be made available to only one purchaser in any given trade area.

DECISION OF THE COl'DIISSIOX AND OTImm '1' 0 FILE REPORT OF CO IPLIANCE Pursuant to Sec. 3.21 of the COlIllnission s Rules of Practice, the initial decision of the hearing examiner shall, on the 17th day of j\fay 1956, become the decision of the Commission; and, accordingly: It is ordered That the respondent herein shall, within sixty (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 the order to cease and desist. Complaint ti2 F. IN 'rile )'LATTER OF ROBERT G. BUSSE TRADING AS LINCOLN I STITUTE AND LINCOL TRAINI G SEIWICE CO::'' SENT ORDlm, ETC., IN REGARD TO THE ALLEGED VIOLATION OF TILE FEDERAL TRADE cO nnSSION ACT Docket 6413. Complaint, Sept. 14, 1955-Decision, May 17, 1956 Consent order requiring a Peldn, Ill., seller of correspondence courses intended to prepare students for Civil Service examinations, to cease falsely representing, on postal cards and circular letters and by statements of sales agents, that his school was connected with the United States Civil Service Commission, that completion of his course guaranteed graduates positions therein and in desired geographical locations, that vacancies existed, and that starting salaries \were higher than \vas the fact; and to cease misreprein senting the character of his school through nse of the word "Institute" his trade name, among other things.

Before JJl'. Robert L. Piper hearing exa,miner. JJIT. 1Villimn A. 8017W1'8 for the Commission. Mr. E. B. GTeen of Pekin, 111., for respondent. CO)IPLAIXT 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 COlnmisslon having reason to believe that Robert G. Busse, an individual trading: as Lincoln Institute and Lincoln Training Service, hereinafter referred to as respondent, has violated the provisions of said Aet and it appearing to the Commission tllat 11 procee,ding by it in respect thereof vwuld be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: m.!\GRAPH 1. Respondent Robert G. Busse is an individual trading and doing business as Lincoln Institute and Lincoln Training Service, with his principal place of business located at 514 Court Street Pekin 1, Illinois.

PAR. 2. Respondent is now, and for more than one year last past has been, engaged in the sale and distribution of a course of st.udy and instruction illteJ)ded for preparing students t.hereof for examination for certain Civil Service positions in the L united States Government. which said course is pursued by correspondence through the United States ma,ils. Hcspondent~ in the course and conduct of said business, C8,use,s said course of study and instruction to be sent from his place of business in t.he State of Illinois to, int.o and through LINCOLK INSTITUTE, ETC. 1377 1376 Complaint various other States of the United States to purchasers thereof located in such other States.

There has been at all times mentioned herein a substantial course of trade in said course of study and instruction so sold and distributed by respondent in commerce between and among the various States of the United States.

PAR. 3. In connection with the sale of said course of study and instruction respondent has made, published and caused to be published, certain advertising material, including postal cards and printed circular letters, distributed to prospective students in States other than the State of Illinois, in and by which many representations have been made and arc made in regard to said course of study and matters and things connected therewith. Typical representations made in such advertising are the following:

I A:\l VgRY MUCU IK'l'gRI STED IN CIVIL SERVICE. I am a enited States Citizen. Please send full information and list of positions. THOUSANDS OF :\len Aj\'D YVO:\U::: XEEDED. Preparc Kow for GOV- ERN:MEN'l' POSITIONS. Start High as $4 479.00 First Year. l\len and Women Ages 18 to 50 Tills IS YOUR OPPORTL'XITY!: Civil Service Offers Security, Good Salaries, Pay Raises, Promotions, Paid Sick Leave, Long Vacations with Pay, Liberal Pensions.

Prepare now for examinations in your vicinity. Grammar school suffcient for many jobs. Stay on present job while training. Instruction now available if you qualify. Some of the hundrcds of different jobs are: Rural :\lail Carriers Stenographers Post Oilce Clcrks Typists :\Iail Carriers Ass t )'least Inspectors Haihvay :Mail Clerks Livestock Inspectors Border Patrolmen Accountants Customs Service Internal Revenue Service Forest Service Immigration Service Guards Store Keepers Postmasters~ , 3, 4 Cl. \Varehousemen Clerks and :Many others Our Field Representatives must adhere to strict schedules. A few days may go by before one of them wil call on you. If you must be away from home, be sure to leave word with a member of your family or a neighbor where you can be reached. We want him to make only one call if possible. In the meantime check three or more positions you are interested in before he arrives. He wil let you know whether or not you can qualify. It is expected that 800 000 to 1 000,000 Federal positions wil be available during the next few years. Written examinations wil be held for many pcrma nent Civil Service positions, and both veterans and non-veterans wil be eligible 1'01' appointment.

Clerks, Storekeepers, Inspectors, Guards, Forest Rangers, Rural Mail Carriers, City Carriers, Stenographers, Typists and many, many other types of world(ers are employed by the thousands.

. __ ..__._ _. .___ __ __ _ _ :j. ) _ 1378 FEDERAL TRADE CO:M::IISSION DECISIONS Complaint 52 F.

Respondent disseminates to prospective purchasers or his said course or study a list or Civil Service positions setting out representations as to Age, Education, and SoJ .ries with respect to positions in the Postal Law Enforcement, Clerical, Accol1nting\ Custodian, and other services, and the following direction:

Some Typical Civil Service Positions Look over this list thoroughly. Check the ag-e and educational requirements. In this way you can select the positions you believe you arc fittcll for. Our Field Representative wil advise you whether or 110t you can qualify. )'len and 'ior.en EcluCfltiOll Salaries i1----Age up to- Postal POS!T!O\' Post offcp rlrrk 1 18-50 Grammar school__- 070 carrier u n - -- un- - --- - - -- 18-50 ! mu dom. - m.. 412 2d class- _nnnn..n ____nn 21--2 clo-- 370 :Jd class_ _n_.nn_n_..n - 21-62 ..n_ IIO-_nn----__n___--_--. 298 4th elassu--_n--n--nu--- 21-62 _ don 380 CLERICAL POSITIONS Clerk-accounting, information and receptionist, Cllstoms, filing, mail, personnel. purchasing fmd proc'lremcnt, leave ami payroll, supply, time tramc and transportation:

Grade L- - u_----- 1/;--2 do_ 9SG Gradc2 "--_nn 18-62 -- (lrJn -.u_ 230 Gmde 3.--u__ 18-62 don 4.1:) Gracle'1. H--U_--U_-- 1/;- don G55 Grade :L_ --_--__n_ 18-,,2 do_ _nun 4,160 Grade 6_ 18- don 545 Stents ler-Typist. _n - - 18- don _H__n__--- 1)5, 'l' VIJist, junior- 18- (IOn 230 ::lcssrnger- - - don Business rr.machine OjJcwtOL"__ clon 430 Clerk-stenographer- 18-- OOn 11\1) OTHER POS!TIOS Acconntant and auditor - - --- 18- TIil'h sr:1100L 160 Sratis icp. ele:' I,_ 18-1\2 llo_ Jllli:lrplofcssio!1llas.,ist:mt.__ IS-3.' Unl\'I' rsitv_ IA!) Librarv as ist: nt- 18-1\2 High school 43C1StlJlprit lllj "IL - - - 18- don -- 2ilii Hospital "ttCl:dant- GrammarsclwoL 4:JG 1'0STAL POSITIONS Postal 1,1 amportation clerk (milway, air, boat, and 18-35 u--.dom. 270 higbw:1Y City mail carrier. 18-50 .--__ dO_ ESI"FORCE !EXT POSITIOXS In3TwctorofCllstoms-- 2H5!- IJO Patrol inspector, tnlinee- ,10n 955 Port pat;'ol o11ccr 21- don 03, lmr:ligration inspcctol- 21-4:) llo__ 545 ?..N!t insDrctol_Livestocii inspeetor. _am 18- do-- 430 VirCls Sl'rllI inspector- GIJard-p"trolrnan_ 21- 621 - c o n (;5.) CorrectiOTIlloffceL-- ;5 ' (lo 035 Security inspector ("tol!!ie evcrgy)_--- 21- don Hi( Other: rO !Tlo'\S Zone deputy collector lS-62 1 lIigoh school -- 160 Storekeeper 18-112 GI':lmm8. ' sc1100L 5-i5Stockclerk._u.nu 18-(2 - dO- n --- u__n_.. 655 LINCOLl\ INSTITUTE, ETC. 1379 1376 Com plaint LINCOL;. n, STITUTE l'reparation for Successful Civil Service Careers Federal~Sta te~ M nnicipal Hobert G. Busse, B. S. M.

Director.

Pekin 1, Illnois Postage wil be paid by LIKCOLN INSTITCTE P. O. Box 390 Pekin, Illnois.

Executive Offces PAR. 4. By means of the foregoing representations and others similar thereto but not herein specifically set out, and by the use of the trade name Lincoln Institute, mlCl by use of the words and phrases Director" and "Executive Offcer," respondent represents and implies that his said business is a branch of, or connected with, the United Sb1tes Goyernment or the United States Civil Service Commission; that many positions in the United States Civil Service are vacant, including those specifically listed in said "Some Typical Civil Service Positions " and are available to all applicants; that many thousands of appointments will be made during the next few years; that veterans and non-vcterans can qualify therefor and that successful application therefor ca,n be effectuated through respondnt's course of study; that salaries are as high as $5 412.00 a year and that a grammar school education is the only thing necessary, together with the respondent's course of instruction; that checking said list will enable prospective students to determine for what positions they are qnalificcl and that respondent's so- ealled Field R.representatives are qualified and competent to advise said prospects a.s to their qualifications for positions in the Civil Service.

PAR. 5. In the course a.nc1 conduct of said business, as aforesaid respondent employs sales agents or representatives who call upon prospective purchasers and endeavor to sen said courses of study. In the course of such solicitatjons said sales agents or representat.ives orally represent and imply to prospective purchasers of said courses of study:

1. That Lincoln Institute and Lincoln Training Service are connected with, or are branches of the Vnited States Civil Service or of the United States Government or some agency thereof; 2. That responclenfs said sales agents or representatives are employees of the l:united States Civil Service Commission or have some offcial connection therewith;

Complaint 52 F.

3. That the completion of respondent's course of study makes persons eligible for appointment to, or assures them of, or guarantees United States Civil Service positions;

4. That after the completion of said course, enrollees are assured of employment immediately or within a short time; 5. That persons completing l'espondcn(s course of study are assured of obtaining passing grades in Civil Service examinations; that they will be qualified for Civil Service positions; that they are assured of obtaining employment in the Government; that they win obtain employment in geographical areas selected by them. PAR. 6. All of said statements, representations, implications and practices were and are grossly exaggerated, false, deceptive, and misleading. In truth ancl in fact:

either respondent, nor his school, nor any of his agents or representatives are connected in any manner whatsoever with the United States Civil Service, the united States Government or any agency thereof. vVhilc there may be frequent announcements for Civil Service e.xaminations, there arc ma.ny positions including those specifically listed in respondent's advertising and postal cards and circulars which arc not open to applicants generally, but are either restricted to persons of veteran status or require special physical and educational qualifications and practical experience. The starting salaries for positions listed by respondent are, in many instances, substantially less than stated. The completion of said course of study does not make enrollees eligible for appointment to said positions or assure them of or guarantee them appointment to, United States Civil Service positions immediately or at any time after completing said course,of study or in any particular location.

Prospects do not lose the opportunity to enroll because sales agents arc pressed for time and will not return for further solicitation, but may enroll at any time they choose.

PAR. 7. Thc use of the word "Institute" in the trade name of respondent is misleading in that it implies the operation of a resident institute of learning with a staff of competent, experienced and qualified educators offering instruction in philosophy, the arts, sciences and other subjects of higher learning.

In truth and in fact, respondent does not operate an "Institut.e" in the accepted sense of that term. Respondent offers no training or instruction in philosophy, the arts, scicnces or the learned subjects. No basic, thorough or competent instruction is given in residence in any subject of learning by compctcnt aud qualified educators. The subject matters in "which respondent's students are prepared are not of the extent properly to be included in the term of higher education. LINCOL INSTITUTE J ETC. 1381 1376 Decision Respondent' s course of study is given exclusively by correspondence and consists of a series of lessons on a general information type of Civil Service examination.

PAR. 8. Respondent is now, and at all times mentioned herein has been, in substantial competition with other individuals and with corporations, partnerships and firms engaged in the sale in commerce of courses and instructions by correspondence. PAR. 9. The use by the respondent of the aforesaid statements and representations has had and now has the tendency and capacity to confuse, mislead and deceive members of the public into the erroneous and mistaken belief that such statements are true and to induce them to purchase respondent's course of study in said commerce on account thereof. As a direct result of the practices of respondent, as aforesaid substantial trade in commerce is and has been diverted to respondent from their competitors and injury has been and is done to competition in commerce between and among the various States of the United States.

PAR. 10. The aforesaid acts and practices of respondent, as herein alleged, are all to the prejudice and injury of the public and of competitors of respondent 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. INITIAL DECISION BY ROBERT')' L. PIPER, HEAilNG EXA::fINEH The Federal Trade Commission issued its complaint against the above-named respondent on September 14 , 1955, charging him with having violated the Federal Trade Commission Act. After being served ''with said complaint, respondent appeared by counsel and entered into an agreement, related J\farch 21 , 1956, containing a consent order to cease and desist, disposing of all the issues in this proceeding without hearing. Said agrcement has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein for his consideration in accordance with Section 3.25 of the Rules of Practice of the Commission.

R.respondent, pursuant to the aforesa.id agreement, has admitted an of the jurisdictional allegations of the complaint and agreed that the record may be t.taken as if findings of jurisdictjonal facts had been duly made in accordance with such alleglttions. Said agrcement further provides that respondent waive all further procedural steps before the hearing examiner or the Commission, including the mnJdng of findings of fact or conclusions of law and thc right to challenge or contest the validity of the ordor to cease and desist entered in ac- 1382 FBDERAL TRADE CO)d).nSSI01\ DECISIONS Order 52 F. T, C. cordance with such agreement. It has also been agreed that the record herein shall consist solely of the c.complaint and said agreement that the agreement shall not. become a part of the official record unless and until it becomes a part of the decision of the Commission, that said agreement is for settlement purposes only and does not constitute an admission by respondent that he has violated the law as alleged in the complaint, that said order to cease and desist shall have tho same force and effect as if entered after a iuJl hearing and may be a.1tercd, modified or set aside in the manner provided for other orders and that the complaint may be used in construing the terms of the order.

This proceeding having now come on for final consideration on the complaint and the aforesnid agreement containing the consent order and it appearing that the order and agreement cover all of the allegations of the complaint and provide for appropriate disposition of this proceeding, the same are hereby accepted and ordered mod upon becoming part of the Commission s decision pursuant to Sections 3. and 3.25 of the Rules of Practice, and thc hearing examiner accordingly makes the following findings, for jurisdictional purposes, and order:

1. Respondent is an individual, doing business under the trade names or Lincoln Institute and Lincoln Training Service, with his offce and principal place of business located at 514 Court Street" in the City of Pekin, State of Ilinois.

2. The Federal Trade Commission has jurisdiction of the subject matter of this procccding and of the respondent hereinabove named. The complaint states a cause of action against said respondent under the Federal Trade Commission Act, and this proceeding is in the interest of the public.

ORDER It is ordered That the respondent, Robert G. Busse, individually and doing business under the nmne or Lincoln Institute and Lincoln Training Service, or any other name and his representatives, agents and employees, directly or through any corporate or other device, in connection 'with the offering for sale, sale and distribution in commerce, as "commerce" is defined in the Federal Trade Commission Act, of courses of study l1d instruction, intended for preparing students thereof for exmnination for Civil Service positions under the United States Government, or any similar courses or study, do forthwith cease and desist from:

1. Representing, directly or by implication: (g) LINCOLN INSTITUTE, ETC. 1383 J376 Order (a) That respondent, his school, his agcnts or represent.atives, or anyone of them, have any connection with or are a part of the lTnited States Civil Service Commission or any other agency of the United States Governnlent.

(b) That the completion of respondent's course of instructions assures or guarantees a position in the Cnited States Civil Service or makes them eligible for appointme.nt to sllch position. (c) That positions in said Civil Service may be obtained through rcspondont~s school after completion of the course of instruction immediately or at any time.

(d) That persons who complete respondent's course of instruction are assured of obtaining passing grades in Civil Service examinations or that they will be qualified for Civil Service positions. (e) That there is any assurance that persons who complete 1'0spondent~s course of instructions and obtain Civil Service positions will be employed in any particular geographical area. (I) That any specific Civil Service positions are available to all applicants or that any Civil Service position which requires ap pointees to have veterans status or certain physical, mcntal, educational or experiential qualifications is generally available and may be obtained by persons not meeting such requirements. That vacnncies exist in, or that appointments ,vill be made to any United States Civil Service position contrary to fact; or that the number of positions available or vacant or to ,which appointments will be made in said Civil Service or any branch thereof is greater than is actually the fact.

(h) That jJrospective students lose the opportunity to enroll for respondent's course of study unless they enroll at the time of the first visit of respondent' s agent or representative. (i) That the starting salary for any United States Civil Service position is gre,after than it is in fact.

2. Using the words and phrases of "Djrector Exccutive Offccs," or representing by any similar means, that his business has any connection with the United States Government or any branch or agency thereof.

3. Using the word "Institute" or any word or term or similar import or meaning as part of respondent's trade name, or as a part of the name of the respondent's school.

4. Soliciting, procuring or accepting contracts for respondent' course of study, without permitting prospects to read tile same fully and thoroughly before the signing of such contract by the prospect. Decision 52F.

DECISION OF THE COMl\IISSIOX AND ORDER TO FILE REPORT OF CO:;IPLIAXCE Pursuant to Section 3.21 of the Commisslon s Rules of Practice, the initial decision of the hearing examiner shall, on the 17th day of 1hy 19GB, become the decision of the Commission; and, accordingly: It is ordered That thc respondent herein shall within sixty (60) days after service upon him of this order, file with the Commission a report in writing setting forth in data.il the manner and fornl in \which he has complied with the order to cease and desist. :YATIO:YAL CASUALTY CO. 1385 Decision