Affiliated Bhokehs, Inc.

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IN THE :MATTER OF AFFILIATED BHOKEHS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF TJ-IE FEDERAL TRADE COMMISSION ACT Docket 6'1'46. ConljJlaJllt, Ma' 1957-Decislo-n, July 1/, 1957 Consent order requiring two Chicago real estate advertising firms and their common officer to cease representing falsely through oral and written statements and by wording of the corporate names that they were bona iide business brokers or a coopemtive orgnnization engaged in the sale of business establishments, that they had ready purchasers, and would guarantee sale of a property or refund the substantial service fee they collected.

MT. Te'J' JYd A. J o1Ylan for the Commission. Blo' witz Ozman by lJl'J' . 111ax Pa8tin of Chicago, Ill. , for respondents.

INITIAL DECISIO::-.T BY J. EARL Cox, HEARING EXAMINER The complaint charges that respondents, in the course', of their business in commerce.e, have represented that they operate business enterprises which o:tler certain services and facilities in commerce in the oflering for sale, selling, buying and exc.hanging of business properties; and that they are bona fide business brokers or a bona fide cooperative organization engaged in the sale of business properties; that they have ready buyers, guarantee sale of properties will make refund of "service" deposits, have funds which.h can be used in financing sales, and in many other respec.ts will afl'ord sellers exc.eptional brokerage services. The complaint alleges that these representations are false and misleading and in violation of the Federal Trade Commission Act.

After the issuance of the complaint, respondents, their c.ounsel and counsel snpporting the complaint entered into an agreement containing consent order to cease and desist, ,which -was approved by the Director and the Assistant Director, Bureau of Litigation the Commission, and thereafter transmitted to the I-Iearing Examiner for consideration.

The agreement states that respondents Affiliated Brokers, Inc. and Business Co~Op, Inc. are c.orporations existing and doing business Illinois; that re-under and by virtue of the Jaws of the State of spondent "\Villiam John :Mac1one is an individual and an officer of Order 54 F. T.

each of such corporations; and that the office and principal place of business of each of the respondents is located at Suite 1700, 6 E. :Monroe Street, Chicago, Illinois.

The agreement provides, among other things, that the respondents admit all the jurisdictional facts alleged in the complaint and agree that. the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and this 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 the complaint may be used in construing the terms of the order agreed upon, which may be altered, modified or set aside in the manner provided for other orders; that the agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint; and that the order set forth in the agreement and hereinafter inc.luded in this decision shall have the same forc.e and effect as if entered after a full hearing. Respondents waive any further proc.edural steps before the I-Iearing Examiner and the Commission, the making of findings of fact , or conc.lusions of law, and all of the rights they may have to challenge or c.contest the validity of the order to cease and desist entered in accordance.e with the agreement.

The order agreed upon fully disposes of all the issues raised in the complaint, and adequately prohibits the acts and practices charged therein as being in violation of the Federal Trade Commission Act. Accordingly, the I::fearing Examiner finds this proceeding to be in the public interest, and accepts the agreement containing c.onsent order to cease and desist as part of the record upon which this decision is based. Therefore I t is o'J'de1'ed That respondent Affiliated Brokers, Inc. , a c.corporation, and its officers, and Business Co-op, Inc.., a corporation, and its officers, and ,Villiam .J ohn ~Iadone, individually and as an officer of each of the said c.corporate respondents, and each of respondents' agents, re.presentatiyes, and employees, directly or through any c.corporate or other device, in connec.tion with the ofiering for sale or saJe, in commerce, as "commerce. ~' is defined in the Federal Trade Commission Act, of aehertising in ne:wspapers and in other advertising media and of other services and fac.ilities in connection with the. offering for sale, selling~ buying or exc.hanging of business property or any other kind of property, do forthwith c.ease and desist from, di rec.t)y or indirectly, representing: AFFILIATED BROKERS, INC., ET AL.

Order 1. That any smTI of money deposited by a prospective seller property with the respondents on condition that respondents will effect a sale of said property on expressed or implied conditions will be returned, unless said sum is in fact returned on the failure of respondents to comply with the conditions of the agreement; 2. That respondents have available qualified or ready purchasers for businesses unless such purchasers are in fact available; 3. That respondents will undertake the sale of property without rish:, obligation or expense to the prospective seller; 4. That respondents have available through their own resources the funds or facilities necessary to finance the sale and transfer business property or other kinds of property or that respondents are in fact engaged in the business of financing the sale and trans-fer of such property. I t is ju.1,ther ordered That said respondent Affiliated Brokers Inc., a corporation, and its officers, and "'\Villiam John J\fadone, indivic1ually and as an officer of said corporation, and respondents agents, representatives and employees, directly or through any corporate or other device in connection with the offering for sale or sale, in commerce, as "commerce" is defined in the Federal Trade Commission Act, of advertising in newspapers and in other advertising media and of other services and facilities in connection with the offering for sale, selling, buying or exchanging of business property or any other kind of property, do forthwith cease and desist from, directly or indirectly, representing: That they or their agents, representatives, and employees are bonded, licensed or insured with respect to or to engage in the operation of a brokerage business for the sale of business property or any other kind of property.

It is /,urthe1' ordered That said respondent Business Co-Op, Inc. a corporation, and its office.ers, and '\ViJJimn John :Ma.done, individuany and as a.11 officer of said corporation, and respondents' agents representatives and employees, directly or through any corporate or other device, in connection with the offering for sa.1e or sale, in commerce, as "commerce. is defined in the Federa.l Trade Commission Act, of advertising in newspapers and in other advertising media and of other services and facilities in connection with the ofrering for sale, selling, buying or exchanging of business property or any other kind of property, do i'orthwith c.ease and desist Using the word "Co- " as a part of a corporate or trade namefrom:or representing in any other 'way or by any other means, that they operate a cooperative business.

Decision 54 F.

DECISION OF THE COM),IISSION AND OPJ)ER TO FILE REPORT OF COl\IPLIANCE Pursuant to Section 3.21 or the Commission s Rules or Practice the initial decision or the hearing examiner shall, on the 17th day or July, 1957 become the decision of the Commission; and, accordwithinjng1yit is onlered That the above-named respondents shall, sixty (60) days after service upon them or this order, file with the Commission a report in writing, setting forth in detail the inanner and form in which they have complied with the order to cease and desist.

, , SYDCO INDUSTRIES, INC., ET AL. 101 Decision