Champion Products, Inc.

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IN THE MATTER OF CHAMPION PRODUCTS, INC., ET AL.

CO."SENT ORDER, ETC., IN KEGARD TO THE ALLF:GED VWLATlOK OF THE FEDERAL TRADE CO)imission ACT , July 2-4, 1,958 Docket 69.41. CmrtjJ/llint, Nou. , 1957-Dccision Consent order refluil'ing the manufacturer in Stephenville, Tex. , and distrilJutOl; in Ok!uhoma City, Okla., of gasoline and oil additives sold under the X ''with ),101y, " re::pectively, to crase brand names of " X" and " representing falsely in aovertio;ing in newspapers, pcriodicals, and sales literature, and by statements of sales representatives, that said products were extcr:sively used by certain large corporations and finns and were approved and recommended by them and by the United States Govern- 11(,;lt; that purchuc:ers ' rnoney wol,lcl be returned if they did not accomplish the g'lwranteC'd results; and that they were regularly aclVcl'tised in " Life magazine.

INITIAL Decision AS TO RESPONDENTS CHA'\PION PRODUCTS INC. A CORPORATION JOHN T. HEATON , LUCILLE HEATON, A"D WILLIAM J. OXFORD , INDIVIDUALLY AND AS OFFICERS OF SAID CORPORATIO~ , AND EARLE A. GOODENOW , JR. INDIVIDUALLY AND TRADING A:\D DOING BlJSl1\ESS AS THE GOODENOW CO'\PA"Y fore ;.111". John B. Poinde:dci' hearing examiner. kIF. Edu:uJ'd F. Duwns and i11'1 Garla.nd S. Fei"gnsolI coum;el supporting the complaint.

I'd?'. Ennis Fcwo)'s of Stcphenville, Tex., for respondents. On November 18, 1957, the Federal Trade Commission issued a named in complaint charging that the corporations and persons , violated the the caption hereof, hereinafter calleel respondents provisions of the Federal Trade Commission Act by the use of alleg.ec1 false advertising in the manufacture, sale and dist.ribution of their gasoline and oil additives. , the respondents After issuance and service of the complaint answered, denying genentlly the allegations contained in the c.complaint and stating, among other things, that Mr. Goodeno\v , is no long-er in Sr. is deceased; Champion Oil Company, Inc. business, liquidation of the corporation was completed in Sept.member 1957 , and the charter of said corporation has expired. Thereafter, respondent Champion Products, Inc. , a corporation its offcer. , Jnhn T. Heaton, Lucille Heaton and William J. Oxford CHAMPION PRODUCTS , INC., ET AL. 148 142 Decision (erroneously named in the complaint and other documents as William ,I. Oxley), individually and as offcers of said corporation; and Earle A. Goodenow, JI' , an individual trading and doing business as The Goodenow Company, their counsel and counsel supporting the complaint, entered into an agreement for a consent order. This agreement disposes of all of this proceeding as to all parties.

The respondents Champion Oil Company)', Inc. , a corporation Hobert H. Huston, Jack J. Heinemann and Francis C. Routt individually and as offcers of said corporation are not parties to the agreement for the reason that said corporation has been clissolved and neither it nor its respondent offcers are nO\N eng"agec1 in the business referred to in the complaint. Respondent Eark A. Goodenow, Sr. is not a party to the agreement for the reason that he is deceased. Therefore, in said agreement, it is recommended that the complaint be dismissed yvithout prejudice as to respondents Hobert H. Hu ton, Jack .r. Heinemann and Francis C. Routt, individually, and as to respondents Champion Oil Company, Inc., a corporation, Robert II. Huston, Jack J. Heinemann and Francis C. Houtt as offcers of said corporation, and as to respondent Earl A. Goodenm" , Sr. The agreement has been approved by the director and assistant director of the Bureau of Litigation.

The pertinent provi3ions of said agreement are as follows: Respondents named in this agreement admit all jurisc1ictiona1 facts; the complaint may be used in construing the terms of the order; the order shall have the same force and effect as if entered after a full hearing and the said agreement shall not become a part of the offcial record of the proceeding unless and until it becomes a part of the decision of the Commission; the record herein shall consist solely of the complaint and the agreement. Respondents VI.'aive the requirement that the decision must rontain a statement of findings of fact and conclusion of lavv; respondents waive further procedural steps before the hearing examiner and the Com.mission, and the order may be altered modified, or set aside in the manner provided by statute for other orders; respondents waive any right to challenge or C011test the validity of the order in accords.lice 'ivith the agreelllent and the signing of said 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. Upon consideration of the allegations of the complaint, the 144 FEDERAL TRADE COMMISSION IJ,;CISIONS Order 55 F.

provisions of the agreement and the proposed order, the hearing examiner is of the opinion that such order constitutes a proper disposition of this proceeding. Accordingly, the hearing examiner finds that the acceptance of such agreement will be in the public interest and hereby accepts such agreement, makes the follo\ving jurisdictional findings and issues the following order: JURISDICTIONAL FINDINGS 1. Corporate respondent Champion Products, Inc. , is a corporation existing and doing business under and by virtue of the laws of the State of Texas, with its offce and principal place business located in Stephenville, Tex. Individual respondents Iohn T. Heaton, Lucille IIeaton and William J. Oxford are offcers of said corporation. They formulate, direct and control the practices of the corporate respondent. Their address is the same as that of the corporate respondent.

2. Earle A. Goodenow, .Jr., is an individual trading am! doing business as The Goodenow Company with his principal place of business located at 15 East Reno Street, Oklahoma City, Okla. 3. 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 ()1'lered hat respondents Champion Products, Inc. , a corporation, its oflccrs and .John T. Heaton, Lucille Heaton and William J. Oxford, individuaily and as offcers of said corporation; and Earle A. Goodenow, Jr., individually and trading and doing business as The GooclenO\\' Company, or under any other name or names, 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 their gasoline and oil additives, or any other products in commerce, as "commerce" is defined in the Federal Trade Commission Act do forthwith cease and desist from representing directly or by implication:

1. That any certain corporations or firms regularly or extensively use respondents' products when such use is only occasional and in small quantities.

2. That any certain corporations or firms approve or recommend the use of respondents' products, unless such is the fact. 3. That respondents' products are covered by a money back , , CHAMPION PRODUCTS, INC., ET AL. 145 142 Dccision guarantee unless all of the terms and conditions thereof are clearly and conspicuously set forth in their advertised guarantee. 1. That respondents' products are approved or recommended by the United States Government.

5. That respondents' products are currently or regularly advertised in "Life" magazine; or are advertised in any other publication, unless such is the fact.

It 1:3 f",.lher ordered That respondent Earle A. Goodenow Jr. , individually and trading and doing business as The Goodenow Company, or under any other name, and his agents, representatives and employees, directly or through any corporate or other device, in connection with the aITering for sale, sale or distribution of gasoline and oil additives or any other products in commerce, as "commerce" is defined by the Federal Trade Commission Act, forth\with cease and desist from representing directly or by implication that he is the manufacturer of said products. It is fUTUwr ordered That respondents Champion Products Inc., its offcers, and John T. Heaton, Lucille Heaton, and William J. Oxford, individually and as offcers of said corporation their representatives, agents and employees, directly or through any corporate or other device, in connection \with the offering for sale, sale and distribution of gasoline and oil additives or any other products in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from furnishing means and instrumentalities to others by and through which they may mislead and deceive the public respecting the matters sct forth in Paragraphs 1 through 5 hereof. It is fUTtheT onlered That the complaint bc, and the same hereby is, dismissed, without prejudice, as to respondents Hobert H. Huston j ack ,). Heinemann, and Francis C. Houtt, individually. It is fact.he1' onle).eel That the complaint be, and the same hereby is, dismissed as to Champion Oil Company, Inc. , a corporation, Robert I! Huston, Jack J. Heinemann, and Francis C. Routt as offcers of said corporation, and as to Earle A. Goodenow, Sr.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner did, on the 24th day of July 1958, become the decision of the Commission; and accordingly:

Decision 55 F.

It is onlered That respondents Champion Products, Inc. , a corporation, John T. Heaton, Lucille Heaton, and William J. Oxford, individually and as offcers of said corporation, and Earle A. Goodenow, Jr., individually and trading and doing business as The Gooc1cl1O\v Company shall within sixty (60) days after service upon then1 of this order, file with the Commission a report in writing setting forth in detail ihe manner and form in which they have complied with the order to cease and desist. SEARS , ROEBliCK AND CO. 147 Decision