Sunset House Distributing Corporation

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IN THE MATTER OF SUNSET HOUSE DISTRIBUTING CORPORATION ET AL. CONSENT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMl\IlSSION ACT Docket 6823. Complaint, June 24, 195'l- Decision, Dec. 10 1957 Consent order requiring distributors in Hollywood, Calif. , to cease advertising falsely that attachment of their "Color Filter " colored transparent plastic sheet to a black-and-white television set would produce the same visual effect as a color television.

::'\11'. Brockman I-loTne for the Commission. 1111'. ~~1arvin A. Freenwn" of Hollywood, Calif., for respondents. INITIAL DECISION BY J. EARL Cox, HEARING EXAMINER The complaint alleges that respondents have. been and are engaged in the business of selling and distributing in commerce a product called a "Color Filter, which consists of a sheet of transparent plastic upon which has been sprayed paint of orange color blending into green at one border and blue. at the opposite border, and is designed to be fastened over the viewing screen of a television set. I t is charged that respondents have violated the Federal Trade Commission Ac.t by falsely and deceptively representing that the product so used on a black-and-white television set will produce the same visual efiect as a color television set, in that the objects appearing upon the viewing screen will be shown in the same colors as the objects being televised. After service of the complaint, the corporate respondent, by its president, Leonard Carlson, and the individual respondents Leonard Carlson, ~lilton Eisenberg, and Gloria O. Carlson, individually and as officers of the eorporat(~ respondent, ~larvin A. Freeman as attorney for respondents, and counsel supporting the complaint entered into an agreement containing consent order to cease and desist, which was approved by the director and the assistant director of the Commission Bureau of litigation, and thcrpaf't.er transmitted to the hearing examiner for consideration.

Attached to the agreement and made fi. part thereof is an affidavit expcuted by Leonard Carlson, president of Sunset Honse Distributing Corp., the. corporate respondent herein, stating that :Marvin Freeman, an attorney at law, is attorney for and also s(\cretary of the corporation; that neither as such secretary nor as attorney, nor in any other capacity does he have any part in the formulation, din~etion, and control of the policies, acts, and practices of Sunset House SUNSET HOUSE DISTRIBUTING CORP. ET AL. 705 704 Order Distributing Corp. Based upon this affidavit, the order set forth in the agreement properly dismisses the compla,int as to him. The agreement identifies respondent Sunset House Distributing Corp. as a California corporation, with its office and principal place of business located at 792 Sunset Building, Hollywood, Calif. , and the individual respondents Leonard Carlson, ?vlilton Eisenberg, and Gloria O. Carlson as president, vice-president, and treasurer, respectively, of said corporation, and recites that they formulate, direct, and eontrol its policies, acts and practices. All individual respondents have their office and principal place of business at the same location as that of the corporate respondent.

The agreement provides, among other things, that the word "respondents" as used therein shall mean all respondents named in the eaption hereof, other than ?\1arvin A. Freema.n; that respondents admit a.ll of the jurisdictional facts alleged in the compla.int and agree that the record may be taken as if findings of jurisdictional facts had been duly made in accordanee with such allega.tions; that the record on which the initial decision and the decision to the Commission shall be based shall consist solely of the compla.int and this agreement; that the agreement sha.ll 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 a.ltm' , 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 ha.ve viola.tecl the lnw as a.alleged in the complaint; and that the order set forth in the agreement and hereinafter included in this decision sha.Il have the same force and efrect as if entered after a. full hearing-. Respondents waive any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of lnw; and all of the rights they may ha.ve to challenge 01' contest the validity of the order to cease and desist entered in a.accordanee with the agreement.

The oreler agreed upon disposes of all the issues raised in the complaint, and adequately prohibits all the acts and practices charged in the complaint as being in violation of the Federal Trade Commission Act. The a.agreement containing consent order to cease and desist is therefore a.eceptecl as part of the. record upon which this decision is based, and this proceeding is found to be in the pu bhe interest. Accordingly, It is ordered That respondents Sunset House Distributing Corp. , a corporation, and its oft-ieers, and Leonard Carlson, ~lilton Eisenberg, , , Decision 54 F.

and Gloria O. Carlson, individually and as officers of said corporation and respondents' representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of a plastic sheet to be fastened over the viewing screen of a television set, designated as "Color Filter " or any other product of substantially the same construction or possessing substantially the same characteristics whether sold under the same or any other name, in commerce, as "commerce" is defined in the Federal Trade Commission Aet, do forthwith cease and desist from: Representing, directly or by implication, that by the use of said product in connection with the operation of a black-and-white television set, said television will thereby produce the same visual effect as a color television set, or misrepresenting in any manner the color provided by said product when used in connection with a television set.

It is further ordered That the complaint be, and the same hereby , dismissed as to the respondent ~,larvin A. Freema.n, individual.lly und as an officer of Sunset House Distributing Corp. DECISION OF THE COl\11\HSSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursua.nt to seetion 3.21 of the Commission s rules of practice, the initial decision of the hearing exmniner shall, on the 10th day of Dee-member 1957, become the decision of the Commission; and, accordingly:

It is ordered That respondents Sunset House Distributing Corp. a corporation, and Leonard Carlson 1ilton Eisenberg, and Gloria O. Carlson, individually and as officers 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.

ERVAY APPAREL CO. 707 Decision