Walside, Inc.

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

IN THE ~1A TTER OF "\VALSIDE, INC., ET AL.

COX SENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO::\DIISSION ACT Docket 68"/3. Coji/plai.nt, A 195" IJccisioll, Nov. 13, 1957 Consent order requiring Des ::\Joines, Ia., manufacturers of aluminum house or builc1ing siding to cease making!!.. in advertising and through sales talks given b~' employees, false representations as to a free gift of a dining table s(\rvice set purportedly given to interested prospects and the value thereof and commissions paid for the use of houses of purchasers ns models to demonstrate their product; 1111(1 to cease quoting initial inflated and fictitious prices fllHl subsequently quoting the lo\\'er usual price as special introductory conditioned on use of the customer s home for delllonstration etc.

Mr. Terral .A. Jordan for the Commission. ...117". Charles J. Cardam.. of Des :l\Ioines, la., for respondents. lNITL\.L DECISION BY ,VILLLnr L. PACK~ I-IEARING EX.DIINER The complaint in this mater charges the respondents .with violation of the Federal Trade Commission Act through the making of certain misrepresentations in connection w.ith aluminum house or building siding material. An agreement has now been entered into by respondents and counsel supporting the complaint which provides, among other things, that respondents admit all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and agreement; that the inelusion of findings of fact and conclusions of law in the decision disposing of this matter is waived, together with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in disposition of the proc.eeding, s11eh order to have the same force and eflect as if entered after a full hearing, respondents specifically waiving any and all rights to challenge or contest the validity of such order; that the order may be altered, modified, or set aside in the manner pro- L.vided for other orders of the Commission; that the complaint may be used in construing the terms of the order; and 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.

WALSIDE , INC. , ET AL. 573 572 Order The hearing examiner having considered the agreement and proposed order and being of the opinion that they provide an adequate basis for an appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made and the following order issued:

1. Respondent ,Yalside, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of Iowa. Respondents I-li1ary Di Paglia (erroneously referred to in the complaint as I-lillary Di Paglia), Raymond Di Paglia, and Floren Di Paglia are individuals trading and doing business as copartners under the name of Builders Supply Co., and are ofljcers of the aforesaid corporate respondent. The office and principal place of business of the respondents is located at 1526 Harding Road, Des l\foines Iowa.

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.

OT'ti)ER I t is o)'dered That respondents ,Yalside, Inc., a corporation, and its ofricexs, and I-lilary Di Paglia (erroneously referred to in the complaint as I-lillary Di Paglia), R.raymond Di Paglia, and Floren Di Paglla, as individuals or as copartners trading and doing business as Builders Supply Co., or under any other trade name, and as officers of said corporate respondent, and respondents' agents, representatives, and employees, directly or through any corporate or other device, in connec.tion with the manufacturing for sale, offering for sale, sale and distribution of aluminum house. or building siding material or of any other kind of goods or merchandise, in commerce as "commerce" is defined in the Federal Trade Commission Act, do fort hwith cease and desist from representing, directly or indirectly: 1. That a. free gift of a dining table service set or any other kind of merchandise wid be made to persons complying with specified conditions unless in truth and in fact such merchandise is sent to all persons complying with such conditions. 2. That dining ta.ble service sets or any other articles of merc.handise either sold or offered as gifts by respondents have a value in excess of the retail seDing price of similar articles of merchandise of like ~Tracle, quality, design and ,,-orkmanship advertised for sa Ie, ofl'erecl for sale and regularly selling or having been sold, contempornnecHlsly in the. same. general trade areft as that supplied by respondent s, by other persons, firms, or corporations regularly and Decision 54 F.

usually engaged in the sale and distribution at retail of such articles of merchandise.

3. That a special introductory price or reduced price is offered to selected purchasers of the aforesaid products where such price constitutes respondents' usual and regular selling price and is generally available to all purchasers.

4. That the houses or buildings of selected purchasers of the aforesaid products will be used as model or demonstration houses or buildings to advertise or sell the aforesaid products where such is not the fact.

5. That commissions or fees on the sale of respondents' aforesaid products will be pa.id by respondents to purchasers of said products whose houses or buildings are used for model or demonstration purposes unless, in truth and in fact, such commissions or fees are actually paid and such houses or hlJildings are used for model or demonstration purposes.

6. That any price for the aforesaid products in excess of respondents' usual and regular price constitutes the usual and regular selling price of said products.

7. That any price which is not of an amount less than respondents' regular and usual price for the aforesaid products is a special introductory price or a reduced price or any kind of price other than respondents' regular and usual price for the aforesaid products. DECISION OF THE CO:~DIISSIO:N .AND ORDER TO FILE REPORT OF COl'IPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner did, on the 13th day of November, 1957, become the decision of the Commission; and accordingly:

It is o1'dered That the respondents herein 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. LOESCH HAIR EXPERTS ET AL. 57. Decision