Parfumerie Lido, Inc., et al.

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

IN THE 1\1..\ TTER ARFU~fERIE I.IDO, INC., ET AI..

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\DIISSION ACT Docket 668S. Complaint, Dec. 11, 19,5G-Decision, Oct. 4, 1957 Consent order requiring a seller in New York Cit:'o? to cease, on labels and in advertisillg, representing fictitious prices as the customary prices of perfumes and colognes and representing falsely that such products were compounded in France.

1li?". 11 ent P. !(ndz for the Commission. Sher' mJf.?1 Citron of New York, N. , by ilfr. Cecil A. Oz:t?' for Parfnmerie Lido, Inc., and Alexander S. Salz. Mr. Berthold DilZoff, of New York, N. , pro se. INITIAL DECISION BY 'YILLIAl\I I.. PACE: , I-IEARING EX.UIINER The complaint in this matter charges the respondents ,,- ith violation of the Federal Trade Commission Act through the making of c.certain misrepresentations in connection with perfume products sold by them. AgreenH'nts have now been entered into by respondents and counsel supporting the complaint which provide, among other things, that respondents admit all of the jurisdictional aHegations in the complaint; that the record on which.h the initial decision and the decision of the Commission shan be based shah consist solely of the complaint and the respective agreements; that the inclusion of findings of fact and conclusions of la"- in the decision disposing of this matter is ,'mived, together ,,-ith any further procedural steps before the hearing examiner and the Commission; that the orders set forth in the agreements Inay be entered in disposition of the proceeding as to the respective respondents, such orders to have. the same foree and effect as if entered after a 1\111 hearing, respondents specif-icaHy waiving any and an rights to challenge or contest the validity of sneh orders; that the orders may be altered, modified, or set aside in the manner provided for other orders of the Commission; that the complaint may be used in construing the terms of the orders; and that the agreements are for settlement purposes only and do not constitute an admission by respondents that. they have violated the la,y as alleged in this eomp1nint.

The hearing examiner having considered the agreements and proposed orders and being of the opinion that they provide an adequate basis for appropriate disposition of the proceeding, the agreements PARFUMERIE LIDO, INC. , ET AL. 427 426 Order are hereby accepted, the following jurisdictional findings made, and the following order issued (the orders in the two agreements being identical except as to the respondents named therein, the orders are here consolidated into one order) :

1. Respondent Parfumerie Lido, Inc., is a corporation organized existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business at 115 'Vest 30th Street, New York, New York. Respondent Alexander S. Salz is founder and president of the corporation and formulates directs and controls its policies, acts and practices. Respondent Salz and respondent Berthold Dillofl' were formerly partners in a business known as Lido Products Company, such partnership having since been dissolved.

2. The Federal Trade Commission has jurisdiction of the subject. matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is O'l'dated That respondent Parfumerie Lido, Inc., a corporation, its officers, and respondent Alexander S. Salz, individually and as an officer of said corporation and formerly trading as Lido Products Company, or trading under any other name; and respondent Berthold Dilloff, individuaDy and formerly trading as Lido Products Company, or trading under any other name; and n'spondents' agents, representatives and employees, cljreetly or through any corporate or other device, in connection with the offering for sale, sale 01' distribution of perfumes, colognes, or any other related product. do forthwith cease. a.nd desist from directly or indirectly: 1. Disseminating or causing to be disseminntecl any advertisement by means of the United States mails or by any means in commerce as "commerce" is defined in the Federal Trade Commission Act, for the purpose of inducing or ,vhieh is Jikely to induce, directly or indirectly, the purchase of said products, which ;1clue.rhsement: (a) Contains or )ists prices or amounts "'hen slich prices or mounts are in excess of the prices at. ",which the products fire usnany and customarily sold at retail;

(b) Uses the ,words "Design Created in Paris 25 Hue :MontgaHirI' , Paris Sole United States Distributor Originntec1 in Franee. Imported French Perfume French Perfllll1e Fnmolls French Perfume imported From France Created in Francl' ~' or "New York-Paris" in connection with any products not manufactured or compounded jn Franc.e; or ot.hcnyise representing, clire.cUy 52S577-60- Order 54 F. T. C.

or by implication, that such products are manufactured or compounded in France;

(c) Uses any French name or ,yord as a corporate or trade name or as a part thereof or any name, word, term or depiction indieative of French origin in connection with products manufactured or compounded in the United States unless it. is clearly and conspicuously revealed in immediate connection and conjunction therewith that. such prbclucts are manufactured or compounded in the United States. 2. Disseminating or c.ausing to be disseminated any advertisement by any means, for the purpose of inducing or which is likely to induc.e, directly or indirectly, the purchase of said products in eommerce" as "commerce~' is defined in the Federal Trade Commission Act, ,which advertisement contains any of the representations prohibited in Paragraph 1 of this order.

1 t is f'llTther o?Ylered That respondent Parflllnerie Lido, Inc. , a corporation, its officers, and respondent Alexander S. Salz, individually and as an officer of said corporation and formerly trading as Lido Products Company, or trading under any other JUlme; and respondent Berthold DiJJoH, individually and formerly trading Lido Products Company, or trading under any other name; and respondents' agents, representatives and employees direc.tJy or through any corporate or other cleTice, in connection '\With the oflering for sale, sale or distribution of perfumes, colognes or any other related product in commerce, as "commerce" is defined in the Federal Trade Commission Act do forthwith cease and desist from: 1. Setting out prices or amounts on the labels or in the labeling of their products, when such prices or amounts are in excess of the prices at '\Which such products are usually and customarily sold at reta.iJ.

2. Using the words "Design Created in Paris 25 Rue ~fontgolfier, Paris Sole United States Distributor Originated in France imported French Perfume French Perfume Famous French Perfume imported From France/' "Created in France " or N ew York-Paris " on the labels or in the labeling in connection 'With any products not manufactured or compounded in France" or otherwise representing, directly or by implication, on the labels or in the labeling that. such products are manufactured or compounded France.

3. Using any French name or word as a corporate or trade name or as a part thereof or any name, ,yord, term or depiction indicative of French origin, on the label or in the labeling of products manufactured or compounded in the United States unless it is dearly and conspicuously revealed in immediate connection and conjunction PARFUMERIE LIDO, INC., ET AL. 429. 426 Decision therewith that such products are manufactured or compounded in the United States.

DECISION OF THE COl\DnSSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s R.ules of Practice the initial decision of the. hefLring examiner shfLll, on the 4th day of October, 1057, become the decision of the Commission; and, accordingly:

1 t is ordered That the respondents herein shah, 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 nnd form in which they have complied with the order 10 cease and desist. Opinion 54 F.