Alrich Manufacturing Co., Inc.

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IN THE 1\1 A TTER OF ALRICH l\fANUF ACTURING CO., INC. , ET AJ.J. cm~' SENT ORDER, ETC., IN REGARD '1'0 THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO2\Il\HSSION ACT Docket 67'/'1. Co'llzplaint, Apr. S, 1957-Decision, J'lIly 31, 1957 Consent order requiring sellers in Great Neck, Long J!;::land, of a sheet of transparent plastic sprayed with colored paint designated "Color Pix: and designed to be attached to television sets, to een:::e representing falsely in advertising in periodicals and in material supplied to their custolller~, that a black and white television set would produce the !'::lme visual effect as a color television when said "Color Pix:" was attached() to it; that its use would eliminate glare and snow from tele,ision ~cn'PILS , and eliminate eyestrain and relieve headaches caused by ,iewin~' teh:vision; and that it would not burn.

AI r. B1'ocknwn H O1'Jl.e for the Commission. Jlr. Alan G. T1'ebach of Trebach, Oa,lro71 8l:eflel of Kew Yor1\: , for respondent.

INITIAL DECISION BY LOREX H. LA UGHLTX , HE:\HIXG EX.\::\IlXER The Federal Tra.de Commission (sometimes hereinaftpr referred to as the Commission), on April 8, 1957, issued its eomplnint herein under the Federal Trade Commission Act against the n boy(:,-n,nned respondents, Alrich l\Ianufacturing Co. , Inc. , a corporation, and Judith Gleichenhaus, individually and as an ofllcer of said ('orpOl'ntioll" charging said respondents with having violated the provisions of the Federal Trade Commission .Ad in certain particulars. The respondents were duly served ,,-ith process. On June 19, 1957, there was submitted to the undersigned hearing examiner of the Commission for his c.consideration and approval Agreement Containing Consent Order To Cease And Desist which had been entered into by and between said respondents and Broekman 1-10rne, c.ounsel supporting the complaint, under date of .Tune 18 1 D51, and subject to the a pproyal of the Bureau of Litigation of the Commission. Such agreement. had been thereafter duly approved by the Direetor and Assistant Direetor of the Commission s Bureau C' JJtlgatlOn.

agreement.. the In vie\y of the subsequent approval herein of said , at.. ten o clock in New Yorkinitial hearing set for .June ID , 19:57 :I\'e;\Y York, as fixed in the notice. portion of the complaint as eaneeled by order dated June 3 , ID5 7.

154 . FEDERAL TRADE COl\IMISSION DECISIONS Decision 54 F.

On due consideration of the said "Agreement Containing Consent Order To Cease And Desist " the hearing examiner finds that said agreement, both in form and in content, is in accord with Section 3. of the Commission ~s Rules of Practice for Adjudicat.ive Proceedings and tlwt by said agreement the parties hate specifically agreed that: 1. Respondent. Alrich :;\Iannfactnring Co. , Inc., is a. corporation existing and doing busine~s under and by virtue of the laws of the State of X e'y York, with its oftice and principal place of business located at, P.O. Box .J:GD , Great :Keck, Long Island, State of New York.

Individual respondent .J lldi:h G 1ei('h('nhn us is President of said corporation and she formulates, directs, and controls its pohcies acts and practices. Her address is 100 Hiyersic1e Drive, City of N p",y York, State of K e'y York.

2. Pursuant to the pro"\" isio118 of the Fed(~ral Trade Commission Act, the Federal Trade Commission, on April 8 , 1957, issued its complaint in this procee(ling ngnins1" respondents, and a true copy was thereafter duly served OIl respondents. 3. Respondents admit al1 the jurisdiction facts alleged in the complaint and agree that the record may be taken as if findings jurisdictional facts had been duly made in accordance with such allegations.

4. This agreement disposes of all of this proceeding as to all parties.

5. Respondents ",yain' a. Any further procedural steps before the hearing examiner and the Commission;

b. The making of findings of fact or conclusions of la,y; and c. All of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance "ith this agreement.

6. 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.

7. This agreement shall not become, a part of the oflicial record unless and until it becomes a part of the decision of the Commission. 8. This 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.

In the said agreement., the parties have further specifically agreed that the proposed order to cease and desist included therein may he entered ill this proceeding b~' the Commission 'Ylthollt further notice to the respondent: that "",hen so entered it shall have tile same force , , ALRICH MANUFACTURING CO. , INC. , ET AL. 155 153 Order as if entered after a. full hearing; that. it may be altered, 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. Upon dne consideration of the c.complaint filed herein, and the said "Agreement Containing Consent Order To Cease And Desist the. latter is hereby approved, accepted and ordered filed, the same not to become. it part. of the record herein, unless nnduntil it beeomes part of the decision of the Commi:=:sion. The hearing examiner fjl1(ls from the complaint and the sai(l "Agreement Containing Conspnt Order To Cease And Desist: that the. Commission has jurisdiction of the subject matter of this proceeding and of the person of the respondents herein; that the complaint. states a legal cause for complaint under the Federal Trade Commission ~\.ct. both generally and in eac.h of the particular charges alleged therein; that. this proceeding is in the interest of the public.; that the follm,ing order as proposed in said ngrf'ement is appropriate for the full disposition of all the issues in this proc.eec1ing: such order to become. final only if and when it becomes the order of the Commission; and that. said order therefore, should be, and hereby is, entered as follm\s: OIWER 1 t is o7Ylered That. respondents .Alrich ~lanufactnring Co. , Inc.. , a.' corporation, and its ofi1eers, and .Judith Gleichenhaus, individually and as an oJlicer of said corporation, and respondents' representatin' , agents, nnd employees, directly or through any c.corporate or' other device, in connection with the offering for sale, sale, and distribution of a plastic sheet. to be fastened oyer the vie"ing sereen of a television set, designated as "Color Pix :' or any other product of substantially similar construction or possessing substantially the same charaeteristics whether sold under the same. or any other name in commerce.e, as "commerce:: is defined in the Federal Trade Commission Act, do iorth"ith cease and desist from: 1. Hepresenting, directly or by implication: (a) That.. by the. use of said product:

(1) In connection "ith the operation of n black-and-,yhite television set, said television will thereby produce the same visual efiect as a color television set.

(2) Glare ",ill bp eliminated from television screens. (3) Snow "ill be eliminated from teleyisioll screens. (,:1) Eye ~train caused by viewing television ",ill b(~ eliminated. (5) IIea(1ache ca11sed b~7 vie\"illg television ,,-ill be relie\'(~d. (b) That said product "ill not burn.

;-.2.1;;;;" -f;O- l ~ Decision 54 F.

2. Using the word ":Manufacturing" or any other words of the same import as a part of a trade or corporate name, or otherwise representing in any manner that respondents manufacture said product.

DECISION OF THE COl\OIISSION AND ORDER TO FILE REPORT OF COl\IPLIANCE Pursuant to Seetion 3.21 of the Commission s Rules of Practice the initial deeision of the hearing examiner shall, on the 31st day of July, 1957, become the decision of the Commission; and, aceordingly: It is orde'J'ed That respondents Alrich l\lanufaetllring Co., Inc. , a corporation, and its officers, and Judith Gleichenhaus, individually and as an offieer of said corporation, shall, within sixty (60) 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 the order to cease and desist. , SIRO FASHIONS, INC. , ET AL. 157 Decision