Roberts Electric Company

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

In THE MATrer OF ROBERTS ELECTRIC COMPANY ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-8. Complaint, Oct. 17, 1961—Decision, Oct. 17, 1961 Consent order requiring Chicago distributors of electric generators, gas and electric motors, air compressors, etc., to cease representing falsely in newspaper advertisements and catalogs that the “Wisconsin 4-Cycle Gas Driven Engine Generating Plant” and all its parts were Government surplus property; that it cost the U.S. Government $548 and purchasers saved the difference between that and their price of $249; that excessive amounts were the usual selling prices for a ‘Reduction Unit”, a “8 HP AC Motor”, and ROBERTS ELEC. CO. ET AL. 849 848 Complaint a “Briggs & Stratton 4-Cycle Air Cooled Gasoline Engine”, and that their lower prices afforded savings to purchasers; and that said products were fully guaranteed.

Complaint 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 Roberts Electric Company, a corporation, and Robert. Boos, individually and as an officer of said corporation, hereinafter referred to as the 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:

ParacrapH 1. Respondent Roberts Electric Company is a corporation, organized, existing, and doing business under and by virtue of the laws of the State of Illinois with its principal office and place of business located at 849 West. Grand Avenue, in the city of Chicago, State of Illinois.

Respondent. Robert Boos is an individual and an officer of said corporate respondent. He formulates, directs and controls the acts and practices of the corporate respondent. His address is the same as that of the corporate respondent.

Par. 2. Respondents are now, and for some time last past have been, engaged in the advertising, offering for sale, sale, and distribution of electric generators, gas and electric motors, air compressors, and other articles of merchandise to manufacturers and wholesalers, to retailers for resale to the public, and to the public. Par. 8. In the course and conduct of their business respondents now cause, and for some time last past, have caused their said articles of merchandise, when sold, to be shipped from their place of business in the State of Illinois, to purchasers thereof located in various other states of the United States and in the District. of Columbia, and maintain, and at all times mentioned herein have maintained, a substantial course of trade in said articles of merchandise, in commerce, as “comnierce” as defined in the Federal Trade Commission Act. Par. 4. In the course and conduct of their business, and for the purpose of inducing the sale of their said articles of merchandise, respondents have made numerons statements and representations respecting the source, the cost to the government, the price, and the guarantee of the said articles of merchandise. Said statements and representations have been made in newspaper advertisements and in catalogues distributed to their customers. 698-490—64 55 Complaint 59 F.T.C.

Typical and illustrative of the foregoing, but not all inclusive thereof, are the following:

Brand New Surplus Govt. Cost $548.00 Wisconsin 4-Cycle Gas Driven Engine Generating Plant Full one year guarantee Save hundreds of $$$ Only $249.00 fob a 5 1 5 1 1 2 689 876 152 51 96.694229 Reductions 1 5 1 1 3 863 893 68 25 91.680000 Units 1 5 1 1 4 969 893 83 28 91.680000 Fully5 1 5 1 1 5 1074 893 183 25 95.999420 Guaranteed5 1 5 1 1 6 1330 893 67 29 95.332283 Reg.5 1 5 1 1 7 1419 893 92 29 95.923019 $69.505 1 5 1 1 8 1550 893 72 29 95.923019 Only5 1 5 1 1 9 1644 893 93 29 96.360336 $11.755 1 5 1 1 10 1756 894 130 29 96.520523 pre-paid2 1 6 0 0 0 682 954 1270 308 -1 3 1 6 1 0 0 682 954 1270 308 -1 4 1 6 1 1 0 1242 954 118 14 -1 5 1 6 1 1 1 1242 954 12 13 89.700516 *5 1 6 1 1 2 1295 954 12 14 91.019424 %5 1 6 1 1 3 1348 955 12 13 90.591286 *4 1 6 1 2 0 682 994 1270 35 -1 5 1 6 1 2 1 682 995 16 24 89.891029 35 1 6 1 2 2 712 995 51 24 89.891029 HP5 1 6 1 2 3 779 995 48 25 93.994041 AC5 1 6 1 2 4 841 995 94 24 93.994041 Motors 1 6 1 2 5 972 995 98 24 94.153938 Brands 1 6 1 2 6 1085 994 68 25 95.619736 News 1 6 1 2 7 1190 995 81 34 94.755264 Navy5 1 6 1 2 8 1291 995 121 29 96.479401 Surplus5 1 6 1 2 9 1486 995 87 25 95.216370 Save!5 1 6 1 2 10 1591 995 126 28 95.216370 Regular5 1 6 1 2 11 1735 994 111 30 80.689529 $300.005 1 6 1 2 12 1864 995 88 24 96.872017 Value4 1 6 1 3 0 1537 1037 172 28 -1 5 1 6 1 3 1 1537 1037 114 28 92.476479 $135.005 1 6 1 3 2 1660 1037 49 25 95.274796 fob4 1 6 1 4 0 1241 1080 119 15 -1 5 1 6 1 4 1 1241 1080 13 14 69.022346 *5 1 6 1 4 2 1294 1080 13 14 8.904175 by5 1 6 1 4 3 1347 1081 13 14 2.269585 *4 1 6 1 5 0 851 1121 901 29 -1 5 1 6 1 5 1 851 1121 88 29 95.764938 Speeds 1 6 1 5 2 951 1121 129 24 96.455826 Reducer5 1 6 1 5 3 1153 1121 100 25 96.321060 Clutch5 1 6 1 5 4 1267 1121 199 25 96.092346 Combinations 1 6 1 5 5 1539 1121 213 25 94.403526 Transmission4 1 6 1 6 0 683 1162 1268 30 -1 5 1 6 1 6 1 683 1163 99 23 96.300720 Brands 1 6 1 6 2 805 1162 84 24 94.795906 New!5 1 6 1 6 3 937 1163 51 23 44.733410 Air5 1 6 1 6 4 1012 1162 88 24 96.431274 Forces 1 6 1 6 5 1124 1163 120 28 79.296616 Surplus5 1 6 1 6 6 1292 1163 81 24 79.296616 Govt.5 1 6 1 6 7 1398 1163 75 24 85.553612 Cost.5 1 6 1 6 8 1498 1163 111 27 34.758247 $262.005 1 6 1 6 9 1691 1163 73 29 92.095848 Oniy5 1 6 1 6 10 1786 1162 95 28 96.338707 $49.505 1 6 1 6 11 1903 1164 48 22 96.160904 fob4 1 6 1 7 0 1537 1205 279 28 -1 5 1 6 1 7 1 1537 1205 84 28 95.815933 Fully5 1 6 1 7 2 1633 1205 183 25 96.343643 Guaranteed4 1 6 1 8 0 1240 1248 118 14 -1 5 1 6 1 8 1 1240 1248 13 13 66.648735 ak5 1 6 1 8 2 1293 1248 13 14 65.071350 *5 1 6 1 8 3 1347 1249 11 13 18.545677 BS2 1 7 0 0 0 647 1295 1305 108 -1 3 1 7 1 0 0 647 1295 1305 108 -1 4 1 7 1 1 0 1174 1295 748 27 -1 5 1 7 1 1 1 1174 1295 49 17 96.375534 AIR5 1 7 1 1 2 1242 1295 184 18 96.402412 COMPRESSOR4 1 7 1 2 0 647 1330 1305 30 -1 5 1 7 1 2 1 647 1331 97 23 96.327873 Brands 1 7 1 2 2 764 1330 67 24 96.375000 News 1 7 1 2 3 1728 1331 81 28 94.870712 Navy5 1 7 1 2 4 1832 1331 120 29 95.988022 Surplus4 1 7 1 3 0 1536 1373 239 30 -1 5 1 7 1 3 1 1536 1373 74 30 95.964745 Only5 1 7 1 3 2 1621 1373 94 29 93.084946 $34.955 1 7 1 3 3 1725 1374 50 24 96.790695 fob2 1 8 0 0 0 1240 1416 116 15 -1 3 1 8 1 0 0 1240 1416 116 15 -1 4 1 8 1 1 0 1240 1416 116 15 -1 5 1 8 1 1 1 1240 1416 11 14 80.705032 *5 1 8 1 1 2 1292 1416 12 14 38.801224 *5 1 8 1 1 3 1345 1418 11 13 72.056717 %2 1 9 0 0 0 646 1457 1306 115 -1 3 1 9 1 0 0 646 1457 1306 115 -1 4 1 9 1 1 0 681 1457 1271 31 -1 5 1 9 1 1 1 681 1458 102 29 77.292320 Briggs5 1 9 1 1 2 809 1458 21 24 92.905701 &5 1 9 1 1 3 859 1458 130 24 95.851051 Stratton5 1 9 1 1 4 1015 1457 49 29 72.073212 2345 1 9 1 1 5 1093 1458 189 28 92.197914 Horsepower5 1 9 1 1 6 1318 1458 113 28 92.197914 4-Cycles 1 9 1 1 7 1468 1460 50 22 88.922394 Air5 1 9 1 1 8 1546 1459 104 24 96.186127 Cooled5 1 9 1 1 9 1679 1458 135 24 96.497787 Gasolines 1 9 1 1 10 1841 1458 111 30 78.569275 Engine4 1 9 1 2 0 1537 1500 279 29 -1 5 1 9 1 2 1 1537 1500 84 29 95.752892 Fully5 1 9 1 2 2 1632 1500 184 25 96.301994 Guaranteed4 1 9 1 3 0 646 1540 1304 32 -1 5 1 9 1 3 1 646 1540 68 25 96.423920 Wars 1 9 1 3 2 730 1541 119 29 96.082832 Surplus5 1 9 1 3 3 1114 1542 125 28 95.918800 Regular5 1 9 1 3 4 1250 1542 82 24 96.459274 Prices 1 9 1 3 5 1345 1542 92 28 62.168537 $68.005 1 9 1 3 6 1707 1542 73 30 96.314751 Only5 1 9 1 3 7 1795 1543 94 28 96.768707 $42.505 1 9 1 3 8 1901 1543 49 24 96.768707 fob2 1 10 0 0 0 1239 1602 117 13 -1 3 1 10 1 0 0 1239 1602 117 13 -1 4 1 10 1 1 0 1239 1602 117 13 -1 5 1 10 1 1 1 1239 1602 11 12 4.483681 x5 1 10 1 1 2 1275 1602 81 13 44.694313 of5 1 10 1 1 3 1331 1592 30 32 26.568871 OF2 1 11 0 0 0 643 1672 1308 1067 -1 3 1 11 1 0 0 1108 1672 377 110 -1 4 1 11 1 1 0 1108 1672 377 19 -1 5 1 11 1 1 1 1108 1672 165 18 95.245300 WISCONSIN5 1 11 1 1 2 1290 1673 52 17 96.016541 GAS5 1 11 1 1 3 1359 1673 126 18 96.215584 ENGINES4 1 11 1 2 0 1134 1708 322 29 -1 5 1 11 1 2 1 1134 1710 97 22 95.868271 Brands 1 11 1 2 2 1249 1709 69 23 95.868271 News 1 11 1 2 3 1336 1708 120 29 96.823151 Surplus4 1 11 1 3 0 1238 1768 117 14 -1 5 1 11 1 3 1 1238 1768 12 14 16.863892 Bg5 1 11 1 3 2 1291 1768 12 14 56.654053 *5 1 11 1 3 3 1344 1769 12 13 85.756752 *3 1 11 2 0 0 645 1814 1304 145 -1 4 1 11 2 1 0 682 1814 1267 21 -1 5 1 11 2 1 1 682 1814 171 17 91.623367 GUARANTEES 1 11 2 1 2 863 1814 209 18 0.000000 !:——-MATERIALS5 1 11 2 1 3 1086 1815 17 16 88.867950 &5 1 11 2 1 4 1118 1814 173 21 95.770454 EQUIPMENTS 1 11 2 1 5 1306 1815 173 18 96.491264 PURCHASED5 1 11 2 1 6 1495 1815 89 18 95.999344 CARRY5 1 11 2 1 7 1600 1815 55 18 96.263908 OURS 1 11 2 1 8 1669 1815 73 18 90.654243 FULL5 1 11 2 1 9 1758 1815 191 18 90.654243 MONEY-BACK4 1 11 2 2 0 646 1855 1303 20 -1 5 1 11 2 2 1 646 1855 190 18 48.947723 GUARANTEE.-5 1 11 2 2 2 862 1856 115 17 96.775093 SHOULD5 1 11 2 2 3 996 1856 61 18 96.878242 ANY5 1 11 2 2 4 1076 1856 72 17 96.471191 ITEMS 1 11 2 2 5 1167 1857 86 16 95.411873 PROVES 1 11 2 2 6 1273 1856 256 18 94.238884 UNSATISFACTORY5 1 11 2 2 7 1548 1857 112 18 95.690536 RETURNS 1 11 2 2 8 1680 1857 29 17 94.682823 IT5 1 11 2 2 9 1728 1857 33 17 96.505524 TO5 1 11 2 2 10 1780 1857 56 18 95.384979 OURS 1 11 2 2 11 1853 1857 96 18 96.146187 PLANT4 1 11 2 3 0 647 1896 1302 24 -1 5 1 11 2 3 1 647 1896 117 18 94.811195 WITHIN5 1 11 2 3 2 784 1896 31 19 95.772171 305 1 11 2 3 3 835 1897 81 18 96.075661 DAYS,5 1 11 2 3 4 935 1897 31 18 95.675735 IN5 1 11 2 3 5 986 1897 180 18 95.675735 UNDAMAGED5 1 11 2 3 6 1183 1898 156 17 96.039795 CONDITIONS 1 11 2 3 7 1358 1898 52 17 96.195465 FOR5 1 11 2 3 8 1425 1898 122 22 95.876465 REFUND,5 1 11 2 3 9 1564 1899 158 17 96.358398 EXCHANGES 1 11 2 3 10 1740 1899 34 17 95.617935 OR5 1 11 2 3 11 1792 1898 97 18 93.109108 CREDITS 1 11 2 3 12 1906 1898 43 17 92.078842 TO-4 1 11 2 4 0 645 1939 602 20 -1 5 1 11 2 4 1 645 1939 97 18 78.721909 WARDS5 1 11 2 4 2 754 1939 94 18 96.068413 OTHERS 1 11 2 4 3 859 1940 153 18 95.322151 PURCHASES 1 11 2 4 4 1022 1941 35 18 95.322151 AS5 1 11 2 4 5 1069 1940 58 18 95.826653 YOU5 1 11 2 4 6 1137 1940 110 18 95.536224 PREFER.3 1 11 3 0 0 645 1989 1305 143 -1 4 1 11 3 1 0 688 1989 1260 41 -1 5 1 11 3 1 1 688 1989 82 32 70.636452 Par.5 1 11 3 1 2 787 1992 28 29 70.636452 5.5 1 11 3 1 3 858 1989 164 41 94.647469 Through5 1 11 3 1 4 1036 1989 58 31 95.394753 thes 1 11 3 1 5 1109 2000 56 21 96.489822 uses 1 11 3 1 6 1179 1989 37 31 96.883888 of5 1 11 3 1 7 1230 1989 58 31 96.788528 thes 1 11 3 1 8 1303 1989 171 32 96.529861 aforesaid5 1 11 3 1 9 1489 1994 195 27 96.392380 statements5 1 11 3 1 10 1699 1989 65 32 93.298431 ands 1 11 3 1 11 1781 2000 167 30 91.859840 represen-4 1 11 3 2 0 645 2039 1305 42 -1 5 1 11 3 2 1 645 2040 135 40 96.012550 tations,5 1 11 3 2 2 796 2040 64 31 96.256538 ands 1 11 3 2 3 875 2040 111 31 96.595642 others5 1 11 3 2 4 1000 2039 130 32 96.565910 similar5 1 11 3 2 5 1143 2040 128 31 95.696968 thereto5 1 11 3 2 6 1288 2040 57 31 96.343262 but5 1 11 3 2 7 1362 2044 59 27 65.063492 not.5 1 11 3 2 8 1434 2040 201 41 65.063492 specifically5 1 11 3 2 9 1651 2040 113 31 96.596619 herein5 1 11 3 2 10 1781 2045 48 26 96.942528 sets 1 11 3 2 11 1845 2040 105 40 96.878311 forth,4 1 11 3 3 0 646 2090 1102 42 -1 5 1 11 3 3 1 646 2091 217 40 96.669586 respondents5 1 11 3 3 2 883 2090 82 32 96.538857 have5 1 11 3 3 3 986 2091 222 40 96.370628 represented,5 1 11 3 3 4 1228 2090 142 42 83.252357 directly5 1 11 3 3 5 1391 2102 37 20 95.788643 or5 1 11 3 3 6 1448 2091 190 40 96.715332 indirectly,5 1 11 3 3 7 1657 2091 91 31 96.091682 that:3 1 11 4 0 0 644 2140 1307 143 -1 4 1 11 4 1 0 688 2140 1263 42 -1 5 1 11 4 1 1 688 2144 26 28 78.578407 1.5 1 11 4 1 2 737 2140 58 32 69.168892 All5 1 11 4 1 3 814 2141 37 31 95.732803 of5 1 11 4 1 4 871 2141 54 31 96.593674 thes 1 11 4 1 5 943 2144 94 38 95.864265 parts5 1 11 4 1 6 1057 2141 64 30 96.964798 ands 1 11 4 1 7 1139 2145 216 35 68.283913 components5 1 11 4 1 8 1373 2142 37 30 96.542511 of5 1 11 4 1 9 1429 2141 70 32 91.193939 said5 1 11 4 1 10 1519 2141 189 32 93.293106 Wisconsin5 1 11 4 1 11 1726 2141 139 40 91.836357 4-Cycles 1 11 4 1 12 1882 2140 69 33 96.553062 Gas4 1 11 4 2 0 644 2190 1304 43 -1 5 1 11 4 2 1 644 2191 126 32 96.721519 Driven5 1 11 4 2 2 793 2191 133 42 96.362724 Engines 1 11 4 2 3 946 2190 207 43 96.362724 Generating5 1 11 4 2 4 1174 2190 103 32 96.233910 Plants 1 11 4 2 5 1297 2202 57 20 89.549599 ares 1 11 4 2 6 1375 2196 219 37 77.934868 government.5 1 11 4 2 7 1615 2192 134 39 95.284935 surplus5 1 11 4 2 8 1769 2195 179 37 91.645210 property5 1 11 4 2 9 1932 2186 17 51 91.645210 ;4 1 11 4 3 0 646 2241 1303 42 -1 5 1 11 4 3 1 646 2241 65 31 82.567329 ands 1 11 4 3 2 733 2241 72 32 95.903595 said5 1 11 4 3 3 826 2241 189 32 12.846069 Wisconsin5 1 11 4 3 4 1039 2241 68 33 95.317108 Gas5 1 11 4 3 5 1129 2241 151 41 93.818489 Engines5 1 11 4 3 6 1301 2252 56 21 70.761246 ares 1 11 4 3 7 1381 2242 134 40 95.247215 surplus5 1 11 4 3 8 1535 2247 219 36 94.039894 governments 1 11 4 3 9 1777 2247 172 36 95.370239 property.3 1 11 5 0 0 643 2291 1306 143 -1 4 1 11 5 1 0 683 2291 1266 42 -1 5 1 11 5 1 1 683 2294 28 29 59.245220 2.5 1 11 5 1 2 736 2292 82 33 95.825279 Said5 1 11 5 1 3 841 2292 188 31 93.285995 Wisconsin5 1 11 5 1 4 1054 2291 136 41 91.598763 4-Cycles 1 11 5 1 5 1213 2292 68 32 96.777016 Gas5 1 11 5 1 6 1304 2292 129 31 95.906303 Driven5 1 11 5 1 7 1456 2292 134 41 95.906303 Engines 1 11 5 1 8 1615 2292 207 41 96.407738 Generating5 1 11 5 1 9 1845 2292 104 31 95.824692 Plant.4 1 11 5 2 0 647 2341 1302 42 -1 5 1 11 5 2 1 647 2348 69 26 96.885475 costs 1 11 5 2 2 729 2343 56 31 96.729050 thes 1 11 5 2 3 798 2343 126 32 96.020370 United5 1 11 5 2 4 939 2343 110 32 96.466125 States5 1 11 5 2 5 1064 2341 228 33 81.566681 Governments 1 11 5 2 6 1306 2343 142 40 78.116730 $548.00,5 1 11 5 2 7 1465 2343 63 31 95.586884 ands 1 11 5 2 8 1543 2344 72 30 95.586884 that5 1 11 5 2 9 1633 2343 197 40 93.199173 purchasers5 1 11 5 2 10 1843 2343 106 31 92.715019 there-4 1 11 5 3 0 643 2393 1304 41 -1 5 1 11 5 3 1 643 2393 38 32 96.764084 of5 1 11 5 3 2 697 2394 97 31 95.755951 saved5 1 11 5 3 3 811 2394 56 31 96.685333 thes 1 11 5 3 4 880 2393 180 32 95.616959 differences 1 11 5 3 5 1074 2393 143 32 96.174210 between5 1 11 5 3 6 1234 2394 133 35 93.435188 $548.005 1 11 5 3 7 1383 2394 65 31 96.222397 ands 1 11 5 3 8 1465 2394 228 40 94.780396 respondents’5 1 11 5 3 9 1711 2394 120 40 96.724518 selling5 1 11 5 3 10 1846 2394 101 40 96.724518 price.3 1 11 6 0 0 643 2443 1308 296 -1 4 1 11 6 1 0 686 2443 1265 43 -1 5 1 11 6 1 1 686 2446 27 29 88.365410 3.5 1 11 6 1 2 737 2444 111 36 94.837456 $69.505 1 11 6 1 3 868 2444 28 31 95.957535 is5 1 11 6 1 4 916 2444 53 32 95.957535 thes 1 11 6 1 5 988 2443 228 42 84.179993 respondents’5 1 11 6 1 6 1234 2448 190 36 95.971802 customary5 1 11 6 1 7 1446 2445 64 31 95.192719 ands 1 11 6 1 8 1529 2445 94 31 95.192719 usual5 1 11 6 1 9 1645 2444 120 42 94.563377 selling5 1 11 6 1 10 1784 2445 92 40 96.404007 prices 1 11 6 1 11 1895 2445 56 31 96.560860 fora 1 11 6 2 0 643 2494 1303 42 -1 5 1 11 6 2 1 643 2494 73 32 95.883751 said5 1 11 6 2 2 729 2494 186 33 95.190376 Reductions 1 11 6 2 3 929 2494 102 41 92.809380 Unit;5 1 11 6 2 4 1046 2496 130 33 94.254257 $300.005 1 11 6 2 5 1190 2494 28 32 96.331451 is5 1 11 6 2 6 1231 2495 229 41 89.564774 respondents’5 1 11 6 2 7 1477 2500 188 36 95.481873 customary5 1 11 6 2 8 1681 2496 66 31 94.799042 ands 1 11 6 2 9 1764 2495 94 32 92.919518 usual5 1 11 6 2 10 1873 2495 73 32 89.253647 sell-4 1 11 6 3 0 646 2545 1303 41 -1 5 1 11 6 3 1 646 2546 59 40 94.766647 ings 1 11 6 3 2 724 2546 90 40 96.574982 prices 1 11 6 3 3 832 2546 54 31 95.758766 for5 1 11 6 3 4 902 2545 71 32 95.579681 said5 1 11 6 3 5 1004 2548 6 28 94.386688 85 1 11 6 3 6 1028 2545 65 31 94.386688 HP5 1 11 6 3 7 1111 2545 61 33 94.301682 AC5 1 11 6 3 8 1189 2545 130 41 93.472153 Motor;5 1 11 6 3 9 1339 2546 111 35 94.556381 $68.005 1 11 6 3 10 1470 2546 25 32 88.655952 is5 1 11 6 3 11 1513 2546 228 40 96.320793 respondents’5 1 11 6 3 12 1760 2550 189 36 95.921204 customary4 1 11 6 4 0 644 2596 1302 42 -1 5 1 11 6 4 1 644 2597 65 31 94.740074 ands 1 11 6 4 2 725 2597 94 30 94.740074 usual5 1 11 6 4 3 835 2596 120 42 96.178810 selling5 1 11 6 4 4 968 2596 92 41 96.549461 prices 1 11 6 4 5 1075 2597 55 30 96.420578 for5 1 11 6 4 6 1145 2596 70 31 93.061966 said5 1 11 6 4 7 1231 2596 127 41 84.315208 Briges5 1 11 6 4 8 1373 2599 26 28 93.251602 &5 1 11 6 4 9 1416 2596 152 33 93.213760 Stratton5 1 11 6 4 10 1588 2596 136 41 82.204491 4-Cycles 1 11 6 4 11 1740 2597 64 31 96.351944 Air5 1 11 6 4 12 1822 2596 124 33 95.859291 Cooled4 1 11 6 5 0 646 2647 1305 42 -1 5 1 11 6 5 1 646 2647 159 33 95.846939 Gasolines 1 11 6 5 2 823 2647 148 41 67.812500 Engine;5 1 11 6 5 3 994 2648 65 30 94.569748 ands 1 11 6 5 4 1078 2647 76 31 94.569748 such5 1 11 6 5 5 1175 2647 128 39 96.114677 alleged5 1 11 6 5 6 1324 2647 134 38 92.600258 regular5 1 11 6 5 7 1477 2648 120 41 96.553001 selling5 1 11 6 5 8 1615 2647 107 41 96.430496 prices5 1 11 6 5 9 1743 2648 55 30 95.983215 for5 1 11 6 5 10 1816 2648 79 30 95.983215 each5 1 11 6 5 11 1913 2647 38 32 96.298935 of4 1 11 6 6 0 646 2697 1303 42 -1 5 1 11 6 6 1 646 2697 72 31 94.684639 said5 1 11 6 6 2 742 2698 159 41 94.684639 products5 1 11 6 6 3 922 2698 88 31 94.204094 have.5 1 11 6 6 4 1029 2697 78 31 95.853058 been5 1 11 6 6 5 1132 2697 141 32 96.486343 reduced5 1 11 6 6 6 1297 2702 34 26 95.195389 to5 1 11 6 6 7 1354 2698 122 39 94.838440 $11.75,5 1 11 6 6 8 1500 2698 142 39 79.717316 $185.00,5 1 11 6 6 9 1666 2698 65 31 95.611298 ands 1 11 6 6 10 1756 2698 122 39 93.088226 $42.50,5 1 11 6 6 11 1900 2707 49 21 92.984283 re- ROBERTS ELEC. CO. ET AL. §51 848 Complaint spectively with the consequent savings afforded to the purchasers thereof. , 4, Aforesaid products are fully guaranteed without any restrictions or qualifications or further cost. to the purchasers thereof. Par. 6. The foregoing representations are false, misleading, and deceptive. In truth and in fact:

1. All of the parts and components of said Wisconsin 4-Cycle Gas Driven Engine Generating Plant are not government surplus property, but are derived in part from private sources; and said Wisconsin Gas Engines are not government surplus property. 2. Said Wisconsin 4-Cycle Gas Driven Engine Generating Plant did not cost the United States Government $548.00 and purchasers thereof did not save the difference between $548.00 and respondents’ selling price.

3. $69.50 is not the respondents’ customary and usual selling price of the said Reduction Unit; $300 is not respondents’ customary and usual selling price for the said 8 JIP AC Motor; $68.00 is not the respondents’ customary and usual selling price for the said Briggs & Stratton 4-Cycle Air Cooled Gasoline Engine; and such alleged regular selling prices for each of said products have not been reduced to $11.75, $135.00 and $42.50, with consequent savings to the purchasers thereof. 4. Said products are not fully guaranteed without restrictions, qualifications, or further cost to the purchasers thereof. Said guarantees are subject to the requirement that the purchaser return said products to respondents’ place of business in Chicago, Illinois, and pay all shipping charges incident thereto. Par. 7. In the course and conduct of their business, at all times mentioned herein, respondents have been in substantia] competition, in commerce, with corporations, firms, and individuals in the sale of electric generators, gas and electric motors, air compressors, and other articles of merchandise of the same general kind and nature as that sold by respondents.

Par. 8. The use by respondents of the aforesaid false, misleading and deceptive statements, representations and practices has had, and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements and representations were and are true and into the purchase of substantial quantities of respondents’ products by reason of said erroneous and mistaken belief.

Par. 9. The aforesaid acts and practices of the respondents, as herein alleged, were and are all to the prejudice and injury of the public and of respondents’ competitors and constituted, and now constitute, unfair methods of competition in commerce, and unfair and Order 59 F.T.C.

deceptive acts and practices in commerce, in violation of Section 5(a) (1) of the Federal Trade Commission Act. DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act, and the respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as set. forth in the complaint, and waivers and provisions as required by the Commission's rules; and The Commission, having considered ihe agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent Roberts Electric Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its principal office and place of business lccated at 849 West Grand Avenue, in the City of Chicago, State of Illinois.

Respondent Robert Boos is President of the corporate respondent and his address is the same as that of the 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 It is ordered, That respondents, Roberts Electric Company, a corporation, and its officers, and Robert Boos, individually, and as an officer 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 of respondents’ electric generators, gas and electric motors, air compressors or any other articles of merchandise, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing, directly or indirectly, that: GIBA-FRIEDMAN , 853 848 Syllabus (a) Said products, or any parts or components thereof, are surplus government property or were secured from any other governmental or private source, unless such is the fact.

(b) The United States Government, or any other governmental agency or former owner, paid or is paying for said products any amount greater than is the fact.

(c) Any amount is respondents’ customary and usual price for said merchandise when such amount is in excess of the price at which said merchandise is customarily and usually sold by respondents in the recent, regular course of business.

(d) Any saving from respondents’ selling price is afforded to the purchasers of respondents’ merchandise, unless the price at which it is offered constitutes a reduction from the price at which said merchandise has been customarily and usually sold by respondents in the recent, regular course of business.

(e) Any product is guaranteed unless the terms and conditions of the said guarantee and the manner in which the guarantor will perform thereunder are clearly and conspicuously set forth. 2. Using the words “regular”, or “reg.”, or any other words or terms of similar import. or meaning, to describe or refer to respondents’ prices for said merchandise unless such prices constitute the prices at which the advertised merchandise has been sold by respondents in the recent, regular course of business.

3. Misrepresenting, in any manner, the amount of savings available to purchasers of respondents’ merchandise or the amounts by which the prices of said merchandise are reduced from the prices at which said merchandise is customarily and usually sold in the recent regular course of business.

It is further ordered, That the respondents 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 this order.