H. S. Stuttman Co.

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IN THE MATTER OF H. S. STUTTMAN CO., ET AL.

C00JSENT ORDER, ETC., IN REGARD TO THE ALU';Gl':D VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Duckd 72-V... CuwplU1nt., Au,q. i8, 1958-Decisiun, Feb. 10 , 1.959 Consent order requiring New York City sellers of the one-volume "Webster 1Jnificd J)ictional'Y E.wl Encyclopedia" which drew its ba ic mah rial from two older \'lorks, La cease representing falsely in advertising and on the title page that said " Dictional" " \vas a new pubLcation, that all information therein was complete and lJp-to-date, and that it contained a11 the fa('ts, fentul'e:o, and material of a giant dictionary and a mnltivolumcd encyclopedia set; :-IJl requiring t.hem to disclose clearly en the title page and in advertising- the fad that the baal,s were reprints 01' contained reprinted material when Sllch was the case. M,' . Chal'is W. O' Connell for the Commission. Coude?t Emthe?s by Mr. Pe?c!! A. Slio!!, of Washington for respondents.

INITIAL DECISION BY FRANK HIER, HEARING EXAMINER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on August 28 , J958 , issued and subsequently served its complaint in this proceeding against respundents II. S. Si.uttman Cu. , a corporation existing and doingbusiness under and by virtue of the laws of the State of New York, Harry S. Stuttman, Burton Stuttman and Martin Stuttman, individually and as president, secretary and vice presidenttreasurer, respectively, of the corpurate respondent. On December J6, J958, there was submitted to the undersigned hearing examiner an agreement between respondents H. S. Stuttman Co. and Harry S. Stuttman and counsel supporting the complaint providing for the entry of a consent order. By the terms of saiel agreement, respondents admit all the jurisdictional facts alleged in the complaint and agree that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. By such agreement, respondents waive any further procedural steps before the hearing examiner and the Commission; ,vaive the making of findings of fact and conclusions of law; and \vaive all of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance \with this agreement. , ! .

H. S. STUTTMAN CO., ET AL. 1147 1146 Order Such agreement further provides that it disposes of a1l of this proceeding as to alj parties. Attached to and made of part of said agreement is an affdavit attesting to the fact that Burton Stuttman and Martin Stuttman, named as respondents in the complaint, do not now and never have directed or controlled the policies and practices of the corporate respondent. The record on which this initial decision and the decision of the Commission shall be based shall consist solely of the complaint and this agreement, and the latter shall not become a part of the olIcial record unless and until it becomes a part of the decision of the Commission. This 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 and that the following order to cease and desist may be entered in this proceeding by the Commission without further notice to respondents and, when so entered, it shall have the same force and effect as if entered after a full hearing, and may he altered, modified, or set aside in the manner provided for other orders; and that the complaint may be llsed in construing the terms of the order. The hearing examiner having considered the agreement and proposed order, and being of the opinion that they provide an appropriate basis for settement and disposition of this pmceeding, the agreement is hereby accepted, the following jurisdictional findings mr,c1c, and the foll()\ving order issued. 1. Respondent H. S. Stuttman Co. is a corporation organized existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 404 Fourth Avenue, New York Y. Respondent Harry S. Stuttman is president of said corporation and his olIce and principal place of business is the same as that of the corporate respondent.

2. The Ferle,'al Trade Commission has jurisdiction of the sub. ject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It -is ordered That respondent H. S. Stuttman Co. , a corporation, and its omeen;, and respondent Harry S. Stuttman, individually and as an offcer 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 or distribution in commerce, as "commerce " is defined Decision 55 F.

in the Federal Trade Commission Act of Webster s Unified Dictionary and Encyclopedia, or any other book or publication of the same general character whether sold under the same or any other title, do forthwith cease and desist from: 1. Representing, directly or by implication, that Webster Unified Dictionary and Encyclopedia is a new publication, provided that this shall not be construed to forbid respondents from representing that the manner of presentation of the information in such book is new.

2. Representing, directly or by implication, that the information in Webster s Unified Dictionary and Encyclopedia is complete or up-to-date.

3. Representing, directly or by implication, that Webster s Unified Dictionary and Encyclopedia contains all of the facts, fealures and materials of a giant dictionary and a multivolumed encyclopedia sct.

4. Offering for sale, selling or distributing books or other publications consisting wholly or substantially of reprints of previously published books or other publications, unless: (a) The fact that they are reprints or contain reprinted material and the titles of the previously published books or other publications is clearly disclosed on the title page in immediate conjunction with the time or in another position adapted readily to attract the attention of a prospective purchaser; and (b) The fact that they are reprints or contain reprinted material is clearly disclosed in all advertising. It is t",.thel' ordered That the complaint herein be llismissed as to respondents Burton Stllttman and Martin Stuttman. 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 shall on the 10th day of February 1959, become t.he decision oJ t.he Commission; and, accordingly:

It is ordered That the respondents H. S. Stuttman Co. , a corporation, and Harry S. Stuttman, individually and as an offer:er of the corporate respondent, shall, within sixty (60) days after service upon them of this order, me 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. CARSON PIRIE SCOTT & CO IPANY 1149 Decision