Samuel A. Cannon et al. doing business as National Employment Information Service

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

mission.

IN TIm IATTER OF rCEL A. CAXNON ET AL. Dong BUSINESS AS NATIONAL EJlPLOYJlEKT IKFomIATION SERVICE ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATIO:; OF THE FEDER.4L TRADE COl\BfISSION ACT Docket 7339. Complaint, Dea. 19, 1958-Deci ion, Jan. 12, 1961 Order requiring two individuals in Newark N. , engaged in sellng publications concerning employment opportunities for which they charg-ed 83. to c('ase advertising falsely- in magazines and ne\vspapers, under "Help anted" and "Job Opportunities" columns, or otherwise or in follo\y-up circulars sent in answer to requests for the "free information " offeredthat numerous jobs were aTaHable in the various occupations set out, both in the U. S. and in foreign countries; that they had knowledge of such jobs; that purchasers of their publications \vho applied for a job on any of the projects listed therein, could expect to obtain employment; and that information respecting: employment opportunities was furnished free. :11'1. Garland S. Fel'gilson for the Commission. Brodsky &0 Cuddy, of 1Ynshing;ton, D. c. , for respondents. INITIAL DECISION BY VVALTEH R. JOJ-JNSON, HEARING EXX:\IINEH This matter is before the hearing examiner for consideration of the complaint, answer thereto, the evidence and proposed findings as to the facts and conclusions presented by counsel The findings of fact and conclusions or law proposed by the parties, not hereinafter specifically found or concluded, are herewith rejected. The hearing examiner having considered the record herein, makes the follo\,ing findings or fact and conclusions.

'Vhen the Commission issued its complaint herein the respondents Samuel A. Cannon and Geraldine Cannon, indivic111als were tra(ling and doing business as National Employment Information Service, and their offce and place of business was locked at 1020 Broad Street, Newark, Xew Jersey. Shortly after the iSSUlllCC of the complaint the respondents incorporated their business under the laws of , , :-ATIO:-AL EMPLOYMEXT I:-FORMATION SERVICE Decisioll the State of Kew Jersey and since said time they have operated the business from the same location. The respondents arc the owners of all of the stock, are the offcers and direct and control all of the activities and policies of said corporation. Respondents are now, and since approximately 1952 have been engaged in the business of seDing and distributing publications designated as ".Job and Opportunity Digest" and " Project Listings" which contain information concerning alleged employment opportunities in foreign countries and in the 'United States. Respondents have done, and are doing, business on a llatioll- I'i'ide scale and have caused the said publications, when sold, to be transmitted from the State of Kew Jersey to purchasers residing in other states of the United States, and have maintained a course of trade in said publications in commerce, as "commerce" is defined in the Federal Trade Commission Act. Their volume of trade in said commerce is, and has been, substantial.

To obtain leads to prospective purchasers of their publications, the respondents place advertisements in approximately 100 magazines and about 250 newspapers published and circuJarized in thc various states of the United States. Among and typical of said advertisements which appeared under classified columns "Help .Wanted" Help .Wanted Reports Job Opportunities Employment Opportunities" and "~1ale Help Special" are the following: HIGH PAYI TG JOBS: Foreign, V. A. All trades. Travel paid. Information. Application forms ,"',rite Dept 21 National, 1020 Broad Street ewark. N. J. FREE Information. Earn high pay. All trades. Foreign and U. A. Job Opportunities. Travel paid. Applications. Write Dept. 61L. ational employment. Information 1020 Broad Street. :\Tewark . J. JOBS Earn High Pay ::Ien-V?women All Trades. 'York in South America the hlands, Europe, Canada, or other foreign countries. Also U. A. Mechanics, Truck Drivers, Laborers, Offce "VVorkers, Engineers, etc. Companies pay fare if hired. Many benefits. Tax free earnings, Make and save a fortune! Applications forms for PRIDE information. Write Dept. 67H National Employment Information 1020 Broad St. , Kewark, New Jersey.

The respondents discontinued the practice of using the words free information" in its advertisements approximately one year before the issuance of the complaint herein, but there is no assnrance t.hat there would be a permanent discontinuance. \.

FEDERAL TRADE COMMISSIO DECISIONS Decision 58 F.

The ads give the impression that an Direr of employment is being made and that companies are seeking employees to work on projects in the L"united States and foreign countries. Persons ans\vering the advertisements receive from the respondents a form letter signed by S. A. Cannon, Director of Personnel which reads:

NATIO:\TAL E:\!l' LOY:\lent I:\FOR:\lATIO!, SERVICE 1020 Broad Street, ::Tewark, N. .T. , L.

Dear Friend:

\Ve wish to acknowledge receipt of your request for information concerning employment oppol'tnnities in the C. S. A. as well as foreign countries overseas. Each day hundreds of opportunities in most job classifications arise. 'there are many people, sllch as yourself, who, with proper information, could be started on the ,yay to success.

Lack of knowlpdge of where . . how. . and when.. may he the only obstacle in their path.

The information which we can furnish you will enable you to contact hundreds of privateI T owned American and foreign corporations employing thousands of personnel in good positioIlS in all parts at the 1(.orld. The United States Government also bas many opportunites for employment in its various departments both inside and outside tbe 'Cnited States. It is of the utmost importance that all persons desiring or planning to work in foreign muntriC's. whrthcr for a short or extended period, have all the vital facts covering foreign employment. One must know where job opportunities exist and have such information as the proper procedures for applying for employment u:hom to contact h011' to do so .. rate of pay.. and liv1J1fJ accomodatious.

Because we recognize the great need for employment information, NATIOl\ rPLOY t' I :E'OR)rA'l'IOK SERVICE has found it necessary to publish the JOn and OPPORTc:-nry DIGF,ST. This has been done in order to fulfill the g-real need for information and guidance by qualified personnel who are seeking- jobs.

The research staff of the \TIOKAL E)lPLOY IE::TT INFORMATION SERVICE is constantly eng-aged in assf'mbling data and helpful information to assist med and women who are seeking remunerative employment in all fields 1".11 all parts ot the Hiorld. The "r.. l'rOKAL E TPLOY)IE::TT IKFOH.:.ratio?\ SERVICE collects no placement fees or ('har,ge after yon receiye our information or if you obtain any job through information which n' c supply. 'Ve do not function as an employment agency. .1/1 the 'L'alualic l' IJfnnnatfon and kn01I. both resulting from onr exten i"e rf' enrch . . . a11 procedures . all the pertinent facts which y()U 1Iu.!d to i8f )/()II nre C'ontnincrl in thf' latest cop:Tighted ,rob and OPPORTC::TITY DTGEST' plus the ,yorId-wide PROJECT LISTIKGS and APPI,TCATIOX FOR::.IS. n'hkh are available to yon complete for the 10w fee of 00.

For your conyenienre, we are' C'ndosing an order form and self-addressed envelope. Please print yonl' name ami address on the order form and mail it to ns together ,with your rC'mittancc of S3. 00 (or 00 if you wish it rushed to NATIONAL EMPLOYMEKT I:\FORMATION SERVICE :18 Decision you Dy airmail). We guarantee delivery of our complete and informative JOB and OPPORTUNITY DIGEST , together ,,,ith our latest listings of projects started and to be started. . . These ,,,il be R1JSHl D to you the ",ame day ,ye receiye your order. . . APPLICATION),T FORMS ,,,hieb you may submit directly to the firms and organizations OIl the project Ustings 'wil be included. The prompt filing of these application forms may result in your securing a job for ,,,which yon are qualfied but of whose existence you are not aware. ,Ve trust that ,,-c wil be able to ssist you. and seri:e yon through our specialized employment information service.

Very truly yours, NATIONAL E:\IPLOYMENT INFOR:\IATION SERVICE S. A. Cannon Director of Personnel (Please see other side for important information) On the back page of the letter there is printed under the heading Benefits Generally Existent for lIIen and 1Vomen Employed Overseas" the following statements:

HIGHER SALARIES AXD ,V AGES: Qualified \Yorkers cad earn substantial salaries on man;\' o"crseas projects. ::llmerons projects allow their personnel to work oyert.ime at time and a half pay after forty hours pci' week. Opportunities constantly arise for qualified employees such as engineers, superintendents and craftsman and many others to greatly increase their earning capadt;' by working oyerseas.

l\RDICAL CARE; Furnished by employer at no cost to employee. HOr:'SI:\G: Board and lodging furnished at no cost to employee on many projects. On others., living accommodations furnished at minimum cost by ('()JJPl1vy.

F A)IILY ACCO::'L\fODATIOKS: At many overseas projects, family accommodatiolls are anlilable. Li,ing costs arc us.ually low, servants easily and cheaply obtained.

THAXSPORTATION: Paid by emvioyer from point of hire to jobsite. Hei.ul' transportation paid by emplo er. if you complet.e your contract. TRAVEL PAY: Yuu get paid n-while traveling, usually on an eight-hour-per- ' basis.

INCO:\IE TAX: The government allows exemptions under the "foreign residence" rule or " presence in a foreign country " rule. This is fully explained in the "JOB and OPPORTUKI'ry DIGEST"

ADV AKCE JE),' l': rsually ,er:v good opportunities for advancement. V ACATIOX AND BONUS; Paid vacations. Generous bonuses paid by several companies upon completion of contract. rra VEI, Ar-rD ADVENTURE' The tbri1 of being in fascinating, exotic, and f'xdting places and seeing the things you only dreamed about before. A person who places his order with the respondents, accompanied b)' a remittance of $3. 00 or $4. , is sent" "Job and Opportunity)' Digest' , a "Project Listings, and application forms which might be llse(l to end to the firms set forth in the listing. ______ ____ Decision 58 F.

The "Job and Opportunity Digest" is a 28-page handbook and the title in the table of contents found therein is descriptive of the information contained. It reads:

ABLE OF CONTENTS Page PROCEDCRE IN SECURING CIVIL SERVICE JOBS ------- How to Find 'Vhat Jobs Are Open; Requirements; Location of Jobs; Making Application; Test Notices; 'raking the Test; Types of Tests; Reports of Tests; Personal Interview; Physical Examination OVERSEAS AXD TERRITORIAL EMPLOY:\lent 'WITH THE U. S. GOYERKMEXT --- How to Secure and File Applications; Employment Contracts j Transportation; Housing; Age Limitations: Salaries JOB OPPORTUNITIES I?f VARIOLS GOV'T AGEKCIES AND D EP AR T:\l!';XTS - - -- --- - - - u Dep L of Agriculture; Dep t. of Air Force; Dep t, of the Army; Civil Areonautics Administration; C. S. 'Weather Bureau; National Bureau of Standards; Dep L of the Interior; The Alaska Hailroad; Fish and \Vildlife Service; Point 4 Program; Dep t: of the Navy; Military Sla Transportation Service; Dep of State-Foreign Senice; :Mutual Security Agency; Foreign Operations Administration; The Panama Canal; The Economic Cooperation Administration; The Institute of Inter-American Affairs; The Offce of Educational Exchange; Division of Over seas Information Centers.

TERRITORIAL AND J'FOREIGN TEACHING POSITIOKS _--_n_- INTERKATIo ral ORGAKIZATIOKS ---___ __n___ OVERSEAS E:\lPLOY:\IEl\ T WITH AJ\J:JHICAK FIR:\IS n___ Oil Companies; Construction Companies; :\Iining Companies; Seismograph and Geophysical Companies PROCEDURE IN APPLYIKG FOR OVERSEAS E:\lPLOY:VIENT- The Application Letter and Form THE YARIOTJS ASPECTS OF OYER SEAS EMPLOYMENTn _n- Salaries; Transportation; Travel Pay; Advancement; 1Iedical Care; Vacation and Bonus; Housing; Family Accommodations; Income Tax; Climatic Conditions; Modern Comforts; Recreational Facilities PROCEDrRES A!\ ADVICE - Conditions for Overseas Employment; Employment Contracts; Pfl ports; Tn\,vf'l Pay; Tram;f1portation; Do s and Don IS a The "Proje.ct Listings, offered and TPeeived in evidence 12-page booklet containing a list. of firms to ,whom contracts have been 'm""ded, and the type of work being done by each firm. The purcha,ser does not receive any information of anyone who is offering any employment or the numps of any companies who are seeking employee,s to ,york on projects in the lJnited States or foreign countries. In the foreword of :' Tob and Opportunity Digest" NATIONAL EMPLOYMENT INFORMATION SERVICE Order he reads: " 11 ational Employment Information Service IS NOT AN EMPLOY"IENT AGENCY AND HAS NO CONNEC- TION WHATSOEVER WITH ANY OF THE FIRMS OR ORGAKIZATIOKS HERE IX LISTED.

By the use of t.he statements appearing in the aforesaid advertise ments and letters sent to prospective purchasers, respondents represented, directly or by implication:

1. That numerous jobs are available in the various occupations set ant in their advertisements and lit,erature, both in the United States and in foreign countries.

2. That respondents have JmowJedge of available jobs in the various occupations set out in their advertisements and literature. 0. That information respecting employment opportunities is furnished free to persons requiring such information. The aforesaid statements, representations, and implications arising t.therefrom "ere, and arc) false) misleading and deceptive. In truth and in fact:

1. Jobs are seldom available in any occupation, either in the United St.ates or in foreign count.ries, listed in respondents' advertisements and literature.

2. Respondents have no knowledge whatsoever of any job that may be available on any project.

3. There is no information concerning employment opportunities in the Jetter or literature ,,,which is sent free to those who request it. The informa60n which purports to relate to such opportunities is sel out in the publications for which a charge of $3.00 or $4.00 is made.

The use by respondents of the foregoing false and misleading statement.s representations and implica60ns, has had, and now has the capacity.y and tendency to mislead and deceive a substantial portion of t.he public into t.he mistaken and erroneous belief that said s( ntemenhi, representations and implications were, and are, true and t.o induce the purchase of their publications because of such mistaken and erroneous belief.

The afore.sa.id acts and practices of respondents, as herein alleged ere, and are, nll t.o the prejudice and injury of the public and of respondents' competit.ors and constituted, and now constitutes, unfair nncl decept.ive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. ORDER It i8 oJ'dated. That respondents Samuel A. Cannon and Geraldine Cannon, individually and trading and doing business as Xational . , Opinion 58 F, Employment Information Service, or trading under any other name their agents, TepresentatiYE s or employees, (lirectly or through any corporate or ot.her clEwice, -in c.connection ,,,ith t.he offering for sale sale, and distribution of their publications Job and Opportunity , in com-Digest" and "Project Listings, or ilny similar publicat.ion merce, as "commerce" is defined in the Federal Trade Commission Act. do forthwith cease and desist from:

A. Represent.ing, directly or by implication: 1. That are jobs available in the various occupations set ont in their advertisements Rncl literature.

2. That they have knowledge of available jobs in the various occupations set out in their advertisement,s and literature. 3. That information respecting employment opportuni6es is furnished free to persons l'eCJuesting such information. E, TJsing n.ny advertisement which does not clearly and conspicuously disclose:

1. That respondents do not operate all employment agency. 2. That respondents are not offering employment. C. Pbcing nny advertisement for the publications in "IIelp \Yantecl" Job Opportunities, or si11iJa.1 columns in mnvspapers periodicnls.

oprSIQN OF THE C01\DIISSION By SECREST. Oornmlssi01wr:

The complaint in this Imltter charges respondents with violation of Section 5 of the. Federal Tra.de Commission Act. The heating- examiner in his initif11 decision held that the allegations of the complaint were sustained by the evidence and ordered respondents to cease and (lesist from the practice.s found to be lln1a,vful. Respondent has n appealed from this decision.

Hesponc1ellts are engaged in the sale of publications which relate to the hiring of personnel by private concerns and the lJllited States Government for overseas and domestic employment. Included in their literature is a publication e,ntitled "Projeet Listings, which purports t.o set out various construction and development projects ,which have been undertaken in thi.s country a,nd a.broad, together with names of the firms engaged in working on such projects. In substance the complaint alleges that respondents, in order to and decep- induce the purchase of their publications, havp- false,Jy tively represe,nted that numerous jobs in various occupations are available on the listed projects, (hat they how" knowledge of a"oilable jobs on such projects, that persons who purchase their publications and nppJy for jobs on the listed projects c n expeet to obtain . . . . . . . , NA'II01\ AL EMPLOYMENT IKFOR)'lATIO SERVICE Opinion employment, and that information rcspecting employment opportunities is furnished free to persons requesting such information. IV c will consider first respondents' arguments that they did not represent that jobs were available on the various projects listed in the aforementioned publication or that they had knowledge of available jobs. In contacting prospective job seckcrs respondents placed advertisements of the follo\ving type in numerous magazines and newspapers:

High Pa;ying Jobs: Foreign, U. A. All trades. Travel paid. Information. Application forms write Dept 21N National, 1020 Broad Street, Newark, N. Jobs. Earn High Pay. Men-Women. All Trades. Work in South America, the Islands, Europe, Canada or other foreign countries. Also A. ::Iechanics, truck drivers, laborers. offce v,rrkers, engineers, etc. Companies pay fare if hired. Many benefits. Tax free earnings. Make and save a fortune. Application forms.

For free information write Department 202 :\ational Employment Information, 1020 Broad Street ewark New Jersey. In some instances these advertisements appeared in classified columns under such headings as "Help IVanted" and ".Tob Opportunities.

vVe think it clear from our own reading of these advertisements that respondents have not only represented that numerous jobs are available and that they possess information concerning jobs which would be of material assistance to a person seeking employment but that they are in some way connected with firms that trc seeking employees or are themselves offering employment. The record discloses that the contact advertising created similar impressions in the minds of various witnesses who had purchased respondents' publications.

A form letter sent by respondents to persons answering the aforementioned advertising refers to "hundreds of opportunities" which that lack arise in most job classifications every day and points out of knowledge of where, how and when to take advantage of these opportunities may be the only obstacle in the path of the job sceker. Thc letter also notifies the reader that all of the required information, particularly with respect to employment on projects in foreign countries, is set forth in respondents' publications " .Tob & Opportunity Digest Project Listings" and "Application Forms." Except for the statement that respondents "do not function as an employment agency, which appears in the text thereof, the letter serves to enhance rather than correct the misconceptions created by the contact ad vcrtising.

Opinion 58 F.

The next question raised by the appeal is whether numerous job opportunities as advertised by respondents are in fact available to purchasers of respondents' publications. The evidence on this point includes the testimony of job seekers concerning their unsuccessful attcmpts to obtain employment with companies listed in rcspondcnts' literature and the testimony of representatives of these companies concerning the policies of the companies with respect to the hiring of employees. It appears from this testimony that it is virtually impossible for a nonskilled or semiskiled worker to obtain employment on an overseas project and that workers of this type needed for construction projects in the United States are hired locally at the site of the construction. It further appears that for the most part the companies ordinarily use their own skilled employees on both foreign and domestic projects. Publications prepared by the Chamber of Commerce of the United States and the United States Department of Commerce, which were introduced into evidence by respondents, also emphasize the diffculty encountered by both skilled and nonskilled workers in obtaining employment abroad. Weare of the opinion, therefore, that the evidence clearly supports the allegation that respondents have falsely represented that numerous jobs are available on the various projects listed in their publications. Respondents also take exception to the hearing examiner s ruling that they had not abandoned the practice of falsely representing that information respecting employment opportunities would be furnished free to persons requesting such information. They contend in this connection that their practice of using the words "free information" in advertising had been discontinued two or three years approximately one yearprior to the issuance of the complaint, not " as stated in the initial decision. vVe fid no error in the hearing examiner s finding on this point nor in his ruling that there was no assurance that the practice would not be resumed. The contention is also made by respondents that the initial decision does not comply with \)3.21 (b) of the Commission s Rules of Practice in that it does not contain the reasons or basis for the hearing examiner s conclusions. It is noted in this connection that the hearing examiner has failed to set forth the evidentiary basis for his conclusion that the representations made by respondents are misleading and deceptive. :Moreover, certain of the conclusions which he has reached are not entirely accurate. IVe wil therefore modify the initial decision by striking therefrom certain of the conclusions and substituting therefor our own fmdings and conclusions. Respondents also object to the order to cease and desist contained in the initial decision, contending that it is unduly drastic and NATIONAL EMPLOY:IENT INFORMATION SERVICE Order not in the public interest. While we do not agree with the argument made by respondents we believe that the order should be modified for other reasons. Paragraph (B) of the order would require respondents to disclose in their advertisements that they do not operate an employment agency and that they are not offering employment. The complaint, however, does not allege that an affrmative disclosure of the type required by Paragraph (B) is necessary to prevent deception nor has any showing been made that respondents publications cannot be advertised truthfully and non deceptively without such disclosure.

The complaint does allege, however, and the record shows that respondents have falsely and deceptively represented that they have knowledge of available jobs and that persons purchasing their publications can expect to obtain employment. In view thereof, any order to be fully effective should prohibit respondents from using representations which create these erroneous impressions, including representations which may lead the reader to believe that respondents are ofiering employment or are operating an employment agency. Respondents' appeal is denied and the initial decision, modified to conform with this opinion, will be adopted as the decision of the Commission.

FINAL ORDER This matter having been heard by the Commission upon respondents' appeal from the hearing examiner s initial decision, and upon briefs and oral argument in support thereof and in opposition thereto; and the Commission having rendered its decision denying the appeal and directing modification of the decision: I t -is ordered That the initial decision be modified by striking therefrom the conclusions beginning on page 7 with the words "The purchaser does not receive" and ending on page 8 ,with the words "for which a charge of $3.00 or $4.00 is made" and substituting therefor the following:

Respondents have represented directly and by implication through use of their contact advertising and form letter that numerous jobs in various occupations are avajlable, that they have knowledge of available jobs, that persons who purchase their publications and apply for jobs on projects listed therein can expect to obtain employment, and that information respecting employment opportunities is furnished free to persons requesting such information. Representatives of five companies engaged in projects listed respondents' publication " Project Listings" testified that their firms do not hire nonskilled or semiskilled workers in the United States , FEDERAL TRADE COMMISSION DECISI01\ 58 F.

for projects located in foreign countries and that employees of this type needed for construction projects in this country are hired locally at the site of the construction. They also testified that these firms ordinarily use their own skiled employees on projects in the United States and in foreign countries. Persons who had purchased respondents' publications testified that they had made numerous attempts to obtain employment with companies listed in respondents publication "Project Listings" but had been unsucccssful. Publications prepared by the Chamber of Commerce of the United States and the United States Department of Commerce emphasize the diffculty encountered by persons seeking employment with American firms in foreign countries and explain why such employment is diffcult to obtain. One of the respondents admitted that her firm did not know of any specific jobs which were available on the various projects listed in the aforementioned publication and that the firm did not have any contact with the companics engaged in these projects. The testimony of this respondent also discloses that respondents do not know of specific jobs which are available with any company.

It appears from the foregoing evidence that workers for the various projects listed by respondents are for the most part hired locally, both in this country and abroad. Such jobs therefore would onlinarily not be available to the reader of respondents' advertising unless he happened to reside at the site of the project. Most of the projects listed are located outside of the United States or in Alaska or IIawaii. Consequently, it is most unlikely that a person call obtain employment by purchasing respondent' s publications and making application for a job on any of the various projects listed therein. Hespondents have no knowledge of any job that may be available on such projects or of any other available job. Respondents do not furnish free information respecting employment opportunitics to persons requesting such information.

It is fllrther ordered That the following order be, and it hereby , substituted for the order contained in the initial decision: J t is ordered That respondents Samuel A. Cannon and Geraldine Cannon, individually and trading and doing business as National Employment Information Service, or trading under any other name their agents, representatives or employees, directly or through any corporate or other device, in connection with the offering for sale sale, and distribution of their publications Job and Opportunity , ARJ'OLD COJ'STABLE CORP.

Syllabus Digest" and "Project Listings, or any similar publication, in commerce, as ':commcrcc" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

A. Representing directly or by implication: 1. That they have knowledge of available jobs in any occupation or that numerous jobs are available on the projects listed in said publications.

2. That persons answering respondents' advert.ising or purchasing said publications may expect to obtain employment. 3. That information respecting employment opportunities is furnished free to persons request.ing such information. B. PJ,ccing any advertisement in "Help "Wanted" Job Opportunities, or similar columns in ne,yspapers or periodicals or representing in any manner that they arc offering employment or are operflting an employment flgency.

I tis further ordered That the initial decision of the hearing examiner, as so modiiied, be, and it hereby is, adopted a.s the decision of the Commission.

It is further ordered That respondents shah, within sixty (60) days after service upon them of t.his order, file with the Conliission a report, in writing, setting forth in detail the manner and form \vhleh they have complied with the order to cease and desist.