Pioneers, Inc.

Text (OCR of the scan at left; may contain errors)

IN THE l\IA TTER OF PIONEERS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF TIm FEDERAL TRADE CO:\DIISSION ACT Docket 784-4. Complaint, Mar. 1960-Decision, Sept. 1960 Consent order requiring Oakland, Calif., manufacturers of a preparation for " to cease the treatment of storage batteries designated "BATTERY ADrepresenting falsely in newspaper and magazine advertising that their said battery additive had been "PROVED Before the FEDERAL TRADE CO1\1- :\IISSIO:\," and was "GOVERNl\IENT TESTED anti PHOYEJ)" COl\IPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal Trade Commission having reason to believe that Pioneers, Inc. , a corporation, and Jess :M. Ritchie, individual.lly and as an officer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Pioneers, Inc., is a. corporation organvirtue of the laws ized, existing and doing business under and by of the State of California, with its office and principal place of , Calif. business located at 2812 I-Iavenscourt Boulevard, Oakland 5 Respondent Jess ~l. Ritchie is an individual and president of the corporate respondent Pioneers, Inc. This individual formulates directs and controls the acts and practic.es of said corporate respondent. Said individual respondent has his office and principal place of business at the same place as that of the corporate responden t..

several years PAR. 2. Respondents are nmv, and ha\-e been for last past engaged in the manufacture, sale and distribution of a product designated Battery AD- , a preparation for the treatment of storage. batteries.

In the regular and usual course and conduct of their business respondents now cause, and for several years last past have caused place of busi- said product, "hen sold, to be transported from their ness in the State of California to the purchasers thereof located in various other States of the United States and in the District of Columbia.

herein have Respondents maintain and at all times mentioned com- maintained, a substantial course of trade in said product, in ... ... ...

PIONEERS, INC. , ET AL.

552 Complain t merce, among and between the various States of the United States and the District of Columbia.

PAR. 3. At all times mentioned herein respondents have been and are now, in direct. and substantial compe.tition with other corporations, firms and individuals engaged in the manufacture, sale and distribution, in commerce, of products intended for similar use. PAR. 4. In the course and conduct of their business as aforesaid and for the purpose of inducing the sale of their product in commerce, respondents have caused, and now cause, the publication and dissemination of certain statements and pictorial presentation in newspapers and periodicals having a general c.irculation. Typical, but not all inclusive, of said statements is the following: BATTERY AD-X2 PROVED Before the FEDERAL TRADE COMMISSION ONLY AD-X2 IS GOVERN~lent TESTED and PROVED Said representation is accompanied by a depiction of a seal, as set forth in Exhibit A attached hereto and made a part hereof. PAR. 5. By means of the aforesaid statements and pictorial representation respondents have represented, and do represent, that their product has been proved before the Federal Trade Commission or has been tested and approved by this agency and that their product is Government tested and approved. PAR. 6. The aforesaid statements and representations, as depicted in ne,vspapers and periodicals, are false, misleading and deceptive in that respondents' said product has not been proved before the Federal Trade Commission or tested or approved by the Commission; nor has it.. been approved after tests by any Federal Agency. PAn. 7. The use by respondents of the aforesaid false, misleading and deceptive statements, representations, pracitces and pictorial presentation has had, and nmv has, the capacity and tendency to and does, mislead and dec.eive members of the, purchasing public into the erroneous find mistaken belief that said statements and representations "'ere find are true, nnd into the purchase of a substantial quantity of respondents' product because of such erroneous and mistaken belief. As a result thereof, substantial trade has been, and is being, unfairly diverted to respondents from their competitors and substantial injury has be, , and is being. thereby done to competition in commerce.

PAn. 8. The aforesaid acts and practices of respondents, as herein alleged, were and are all to the prejudice, and injury of the public and of respondents' competitors and constituted, and now consti- %:::::;; ; ; .. ..;,,. \ (. & ;y; (.. .... / : .:! \ .. Decision 57 F.

tute, unfair and deceptive acts and practices and unfair methods of competition, in commerce, within the intent and meaning of the Federal Trade Commission Act.

lift. John B1'ookfield, Jr. for the Conm1ission. Respondents pro Be.

.~+tKo+O-.:' .,+(o~~(..:..:-:-(o-c-~.~.~-+o--o.(o(o(o~+Oo+o-~~"'+Do"" BATTERY AD-X2* \T II~) I~)) ! I) Before the A. r;;:, &.,. &,.,jl~r' r=o I:'CJrr~ ~ b TRA, ~~ m~~ ~ t1"~, ~:",'~"\.:Ir:;;". ",,-,~,tto;J;...j)lti~D r.. ~c;I", II"J" ""ljl... ~. S~nator John Sp:.u-jor:;;)i'1 f"'" ~\ t ~ I! /I ". r P' n .J. r ~ 1;1 :;;'1) :".'r i' ;:r re~i~~6: ~B1 e " ~O \! ;J;J~'dn dJ~j t~2'J'i~~tufJt ~a:l.\eral-' ~f&~t:rnOi. rt;~ii~y UI."'J j";. , N'Y Tr:r--"i"~"' O ~"-Jl',8 'ii" r~' i. ~\.~;:. r~W ~~r.~ N\:\,:~ ~~ W ~", ~;'!t~'liluili...l~ ~ ~~ ~~;:j 'oILJ Dnubies and triplBs new battery life. . . mechanically sound old batteries last longer S e b~Huy money. , . save ccld no!;e ~nd es;peHsivp. tows! One easy to use treatment good for life of battery, It woiked " Sinclair Weeks, U. S. Seet'y of Commerce, t::J ~ 100% MONEY' BACK GUARANTEE. BEWARE OF IMITATIONS .. Postpaid. Order today from: Dept. A D $3.00 Battery AD.X2 - Jess M. Ritchie, Pres.

2812 Havenscourt Blvd., Oakland 5, Calif. (Q Rei!, U, S. ?lIIenl Off, Nos, 647 , 463 ,6~, Mall order inquiries welcome. A rood mt\~lrln Item. INITIAL DECISION BY \V ALTER R. J OI-INSON, HEARING EX.,\:\IINER , 1960, the respondents are In the c.complaint dated ~Iarch 25 charged with violating the provisions of the Federal Trade Commission Act.

On June 29, 1960, the respondents entered into an agreement with counsel in support of the complaint for a consent order. under the foregoing agreement, the respondents admit the jurisdictional facts alleged in the complaint. The parties agree, among other things, that the c.ease and desist order there set. forth may be entered ,,'without further notice and have the same foree and effect PIONEERS, INC., ET AL. 555 552 Order as if entered after a full hearing and the document includes a waiver by the respondents of all rights to challenge or contest the validity of the. order issuing in accordance therewith. The agreement further recites that it is for settleme.nt. purposes only and does not constitute an admission by the respondents that they have violated the law as alleged in the complaint. The hearing examiner finds that the content of the agreement meets all of the requirements of section 3.25 (b) of the Rules of the. Commission.

The hearing examiner being of the opinion that the agreement and the proposed order provide an appropriate basis for disposition of this proceeding as to all of the parties, the agreement is hereby accepted and it is ordered that the agreement shall not become a part of the official record of the proceeding unless and until it become.s a part of the decision of the Commission. The following jurisdictional findings are. made and the following order issued. 1. Respondent Pioneers, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of California with its office and principal place of business located at 2812 Havenscourt. Boulevard, Oakland, Calif.

Respondent. ess 1\1. Ritchie is an individual find president of said corporation~ and his business address is the same as that of corporate respondent.

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 1 t is ordered That respondents Pioneers, Inc., a corporation, find its officers, and ,Jess :M. Ritchie, individual1Jy and as an offieer of said corporation, and respondents' agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale. and distribution of a battery additive preparation sold under the name of AD- , or under any ot lwr name or names, or any other preparation of substantially the same composition or possessing substantially similar properties "whether sold under the same name or any other name in commerce as "commerce" is defined in the Federal Trade Commission Act., do forthwith cease and desist from representing: directly or by implication: That said product has been proved before or tested or approved by the, Federal Trade Commission, or that said product. has been Governme.nt tested and approved. Complaint 57 F.

DECISION OF THE COl\Il\IISSION AND ORDER TO FILE REPORT OF COl\fPLIANCE Pursuant to section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shah, on the 7th day of September 1960 become the decision of the Commission; and accordingly:

It is orde71ed That responde,nts herein 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. Commissioner Kern not participating.