Max Factor & Co.

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IN THE MATTER OF MAX FACTOR & CO.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMJSSION ACT Docket 7280. Complaint, Oct. 1958-Decision, Feb. , 1959 Consent order requiring a cosmetic house in Hollywood, Calif. , to cease representing falsely by television, magazine, and other advertising that its " Natural V-lave" spray would change the structure of naturally straight hair to naturally curly.

Mr. John T. Walke? for the Commission. l1?' . Ravmond S. Smet.hurst of Washington, D. and Mr. Ralph E. Laxa1. of Los Angeles, Calif., for respondent. INITIAL HEAHI:-G BY EARL,). KOLE , HEARING EXAMINER The complaint in this proceeding issued October 15 , 1958 charges the respondent with violation of the Federal Trade Commission Act in the sale and distribution of a cosmetic preparation designated " Natural Wave.

Respondent Max Factor & Co. is a corporation organized, existing: and doing business under the l n\' s of the State of Delaware with its offce and principal place of business located at 1655 North McCadden Place, Hollywood, Calif. After the issuance of the complaint, respondent entered into an agreement containing consent order to cease and desist with counsel in support of the complaint, disposing of all the issues in this proceeding, ,which agreement was duly approved by the acting diredor and assistant director of the Bureau of Litigation. It was expressly provided in said agreement that the signing thereof is for settement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint.

By the terms of said agreement, the respondent admitted all the jurisdictional facts alleged in the complaint and agreed that the record herein may be taken as if the Commission had made findings of jurisdictional facts in accordance \with the allegations. By said agreement, the respondent expressly ,'laived any further proced ural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of la,,,; and all the rights it may have to challenge or contest the validity MAX FACTOR & CO. 1329 1328 Order of the order to cease and desist entered in accordance with the agreemen t.

Respondent further agreed that the order to cease and desist issued in accordance ,with said agreement, shall have the same force and effect as jf made after a full hearing. It was further provided that said agreement, together with the complaint, shall constitute the entire record herein; t.hat the complaint herein may be llsed in construing the terms of the order issued pursuant to said agreement; and that said order may be altered, modified or set aside in the manner prescribed by the statute for orders of the Commission.

The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provides for an appropriate disposition of this proceeding, the same is hereby accepted and is ordered filed upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Rules of Practice, and, in consonance with the terms of said agreement, the hearing examiner finds that the Federal Trade Conlmission has jurisdiction of the subject matter of this proceeding and of the respondent named herein that this proceeding is in the interest of the public, and issues the fo1Jowing order:

ORDER I t is ordered That Max Factor & Co. , a corporation, and its offcers, agents, representatives and employees, directly or through any corporate or other device, in connection \with the offering for sale, sale or distribution of the product Natural Wave, or any other product 01' substantially similar composition or possessing similar properties, whether sold under the same name or any other name, forthwith cease and desist from: 1. Disseminating or causing to be disseminated, any advertisement, by means of television conhnuity broadcasts in com- " ismerce, or by an:)1 other means in commerce, as "commerce defined in the Federal Trade Commission Act, which advertisement represents, directly or by implicaiion : (a) That said product will change the structure oJ the hail": (b) That said product will change naturally straight hair 1.0 naturally curly hair.

2. Disseminating or causing to be disseminated, any advertisement by any means for the purpose of inducing, or which is Decision 55 F.

likely to induce, directly or indirectly, the purchase of said product in commerce, as "commerce" is defined in the Federal Trade Commission Act, which advertisement contains any representations probibited in paragraph 1 hereof. DECISION OF Tile COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of th bearing examiner shal!, on the 26th day of February 1959, become the decision of the Commission; and, accordingly:

It is orde,. That respondent herein shal!, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist. STANLEY FURS, INC., ET AL. 1331 Dccision