Supreme Petroleum Products, Inc.

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In toe Marrer oF SUPREME PETROLEUM PRODUCTS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6682.. Complaint, Nov. 80, 1956—Decision, Mar. 7, 1958 Consent order requiring sellers in Philadelphia, Pa., to cease selling to dealers for resale to the purchasing public reclaimed motor oil obtained from drainings of motor crankeases, or a blend of such oil with new oil, with no markings on containers or otherwise to indicate that the product was reclaimed used oil.

Mr. John W. Brookfield, Jr., for the Commission. Mr. Seymour Friedman, of Washington, D.C., for respondents. Init1au Deciston py WiuiiaM L. Pack, Heartnc EXAMINER The complaint in this matter charges the respondents with violation of the Federal Trade Commission Act in connection with the sale of lubricating oil made in whole or in part from oil which has been previously used. 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 wlegations 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 inclusion 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 proceeding, such order to have the same force and effect 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 provided for other orders of the Commission; 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. The agreement further provides that the effective date of the initial decision based thereon shall be stayed by the Commission, so that such decision shall not become the decision of the Commission until and unless an order to cease and desist is issued by the Commission in the matter of Afohawk Refining Corp., docket 6588. The hearing examiner having considered the agreement and pro- Decision 54 F.T.C.

posed 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 Supreme Petroleum Products, Inc., is a Pennsylvania corporation, with its office and principal place of business located at 8215 Bartram Avenue, Philadelphia, Pa. Respondent Manuel Blasenstein is president and respondent Louis Schnabel is secretary-treasurer of said respondent corporation. Respondents Louis Schnabel, Manuel Blasenstein, Thomas Blasenstein, Bernard Blasenstein, and Minnie Blasenstein are individuals and copartners trading as Penn City National Oil Co., with their office and principal place of business also located at 8215 Bartram Avenue, Philadelphia, Pa.

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 Jt is ordered, That respondent Supreme Petroleum Products, Inc., a corporation, and its officers and Manuel Blasenstein and Louis Schnabel, individually and as officers of Supreme Petroleum Products, Inc., and Louis Schnabel, Manuel Blasenstein, Thomas Blasenstein, Bernard Blasenstein, and Minnie Blasenstein, individually and as copartners trading as Penn City National Oil Co., or trading under any other name, and respondents’ agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution in commerce, as “commerce” is defined in the Federal Trade Commission Act, of lubricating oil composed in whole or in part of oil which has been previously used and reclaimed, do forthwith cease and desist from: 1. Representing, directly or by implication, that such lubricating oil is new or unused oil, or refined from virgin crude oil; 2. Advertising, offering for sale or selling any lubricating oil previously used for lubricating purposes without disclosing such prior use to the purchaser or potential purchaser in advertising, in sales promotion matter and by a clear and conspicuous statement to that effect on the container.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE The Commission, on March 14, 1957, having issued an order extending until further order the date on which the hearing examiner’s SUPREME PETROLEUM PRODUCTS, INC., ET AL. 1131 1129 Decision initial decision in this proceeding otherwise would have become the decision of the Commission; and The purpose of said order having been to effectuate a condition contained in the agreement for consent order theretofore executed by the respondents and counsel in support of the complaint, which condition was that the initial decision based on the agreement should not become the decision of the Commission until and unless the Commission should issue an order to cease and desist in the matter of Mohawk Refining Corp. et al., docket No. 6588; and The Commission, on February 14, 1958, having issued am order to cease and desist in the matter of Mohawk Refining Corp. et al., docket No. 6588:

It is ordered, That the hearing examiner’s initial decision herein, filed February 27, 1957, be, and it hereby is, adopted as the decision of the Commission.

It is furthered ordered, That the respondents, Supreme Petroleum Products, Inc., a corporation, and Manuel Blasenstein and Louis Schnabel, individually and as officers of Supreme Petroleum Products, Inc., and Thomas Blasenstein, Bernard Blasenstein and Minnic Blasenstein, 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 contained in the aforesaid initial decision. 1132 FEDERAL ‘TRADE COMMISSION DECISIONS Decision 54 FTC.