Cimier Watch Corp.

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

IN THE ~IA TTER OF CIMIER -VVATCI-I CORP. ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\fMISSION ACT Docket 6703. Complaint, Jan. S, D57-D eets'ion, Nov. 9, 1957 Consent order requiring two concerns doing business at the same address ill New York City to cease misrepresenting their "Cimier" watches by display canis and posters furnished to jobbers ' arid dealers and by them distributed to retailers, which ac1vertised, the watches falsely' as " Golden De Luxe, Jeweled Movement, " with "One Year Unconditional Guarantee and by the word "jeweled" imprinted on the face of the watches. 1111'. Frederick 1.1 cA~f anl. tS supporting the complaint. and 1111.. Robert lV. Adve'!' of New York City, forlib.. Rubenrespondents.Schwartz INITIAL DECISION BY JOSEPH CALLA WAY., I-IEARING EXAMINER The Federal Trade Commission issued its complaint against the above-named respondents on January 8 , 1957, charging them with alleged in saidviolation of the Federal Trade Commission Act as complaint. After service of the complaint, all respondents and their counsel, except AB-Swiss 'Vatch Corporation on September 19, 1957 entered into an agreement with counsel supporting the complaint for a c.onsent order to cease and desist from the practices complained issues in this, which agreement purports to dispose of all of the proceeding, without hearing. This agreement has been duly approved by the Assistant Director and the Director of the Bureau of Litigation and has been submitted to the undersigned, heretofore designated to act as hearing examiner herein for his consideration in acc.ordance with R.ule 3.25 of the Rules of Practice of the CommlsslOn.

It is noted that said agreement c.contains a provision that the com- 'Vatch Corporationplaint be dismissed as to respondent AB-Swiss based on the dissolution of that corporate respondent. This agreement is considered as a joint motion to dismiss as to said respondent and is granted.

In said agreement, respondents Cimier "'atch Corporation, fl corporation, Irving Abelov and Barnett Shiff, individually and as oflicers of respondent Cimier 'Vatch Corporation and as c.copartners trading as Swiss Time Company, have admitted all the jurisdictional facts alleged in the complaint and have agreed that the record may CIMIER WATCH CORP. ET AL. 543 542 Decision be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. Said agreement provides further that respondents waive all further proc~dura.I steps before the hearing examiner or the Commission, including the making of findings .of fact or conclusions of law and the right to challenge or contest the validity of the order to cease and desist entered into in accordance with the agreement. It has a.1so been agreed that the record herein shah consist solely of the complaint and said agreement, that the agreement shah 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 respondents that they have violated the law alleged in the c.complaint, that said order to cease and desist shah have the same force and effect as if entered after a full hearing and may be altered, modified or set aside in the manner provided for .other orders of the Commission 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 aforesaid agreement containing the consent order and it appearing that the agreement and order provide for .appropriate disposition of this proceeding, the order and agreement are hereby accepted and ordered filed upon becoming part of the Commission s decision pursuant to Sections 3.21 and 3.25 of the Rules of Practice and the hearing examiner accordingly makes the following findings for jurisdictional purposes and order: 1. Respondent Cimier 'iVatch Corporation 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 1 East 33rd Street, New York, New York. 2. Individual respondents Irving Abelov and Barnett Shiff are ,officers of corporate respondent Cimier 'Vatch Corp. Said individual respondents formulate, direct and control the acts and practices .of said corporate respondent.

3. Swiss Time Company is a partnership in which the individual respondents Irving Abelov and Barnett Shiff are the. sole partners. The individual respondents have their office at the same place as that of the corporate respondent.

4. The Federal Trade Commission has jurisdiction of the subject ma tte.r of this proceeding and of the respondents executing said agreement. The complaint states a cause of action against said respondents under the Federal Trade Commission Act. This proepec1ing is in the public interest.

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544 FEDERAL TRADE COMMISSION. DECISIONS Decision 54 F.

ORDER t is ordel' That. respondents, Cimier 'Vatch Corporation, a corporation; and its officers; Irving Abelov and Barnett Shiff, individually and as officers of said corporation, and trading as Swiss Time Company, or under any other name or names~ and respondents agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of watches, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or indirectly: 1. That a watch is a jeweled wateh ~ or that it contains a jeweled movement, unless said watch contains at least seven jewels, each of which serves a mechanical purpose as a frictional bearing. 2. That the cases of watches are gold, unless such is the fact and the gold content is accurately and conspicuously described. 3; That watches are guaranteed without clearly disclosing the nature and extent of such guaranty.

4. That watches are guaranteed, whe.n a service charge is imposed unless the amount thereof is clearly and conspicuously disclosed. It is htrthe1' O1ylered That this proceeding be dismissed ns to respondent AB-Swiss "'\Vatch Corporation. DECISION OF THE COi\DIlSSION AND ,ORDER TO FILE REPORT OF CO:l\IPLIAXCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner did, on the 9th day of November, 1957 , become. the decision of the. Commission; and, nc-cordinglyIt is O1Yle1' That the respondents Cimier ,Vatch: Corp. , a corporation, Irving Abelov and Barnett Shiff, individually and as officers of said corporation and as copartners trading as Swiss Time Company shall, within sixty (60) days after service upon them of this order, file with the Commission a re.port in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist.

A. A: \VYN, INC. , ET AL. 545 Decision