Cecil T. Jenkinson doing business as Washington Training Institute

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

which he has complied with this order.

IK THE l\IA'l'TEH OF CECIL T. JENKINSON DOING BUSINESS AS WASHINGTON TRAINING INSTITUTE CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\DIlSSION ACT Docket C-SG. Complaint, Fc/). 1962-Decis' ion, Feb. , 1962 Consent order requiring a Plymouth, Ind., sener' of a correspondence course pUl'Jorting to prCfJf\re lJUl'chasel':- fur C.S. Civil Service examinations, to cease using-by direct mail solicitation and newspaper advertising follmved by personal contact-false job-assurance claims and other misrepresentations, as in the order belmv indicated, to sell his courses; and to cease using the word "Institute" in his trade name or in the name of his school. CO)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 Cecil T. Jenkinson an individual doing business as vVashington Training Institute, hereinafter referred to as respondent, has violated the provisions of said Act, and it appearing to the Commission that a proceeding by it respect thereof would be in the public interest, hereby issues its complaint, stating its charges as follows:

PARGRAPH 1. Respondent Cecil T. Jenkinson is an individual trading and doing business as Washington Training Institute, with his offce and principal place of business located in the Lauer Building, Plymouth, Ind.

PAR. 2. Respondent is now, and for some time last past has been engaged in the sale and distribution, through the United States mails of a correspondence course of study and instructions purporting to prepare purchasers thereof for united States Civil Service examinations and positions with the united States Government. Respondent causes, and has caused, his said course of study and instructions to be sent from his place of business in the State of Indiana to purchasers thereof located in various other states of the United States, and at all times mentioned herein has maintained a 448 iFEDERAL TRADE COMM:r5SIO DECISIONS Complaint 60 F.

course of trade in said course of study and instructions, in commeree as "commerce" is defined in the Federal Trade Commission Act.

PAR. 3. Respondent's method of doing business is through direct mail solicitations and newspaper advertising, followed by personal contact by respondent, who delivers a sales talk and undertakes to consummate the sale of said course of study and instructions. Typical, hut not all inclusive, of such representations made in such mail solicitations and advertising are the following: NOW! GOVERNMENT POSITION for :.lEK and WO:.IE:\ 18 to 30 STAR'l' HIGH AS $4750.

CIVIL SlDRVICE offers permanent employment, paid vacations, paid sick leayc pay raises, promotions, excellent pensions. SECURITY! Prepare for examinatiolJs in your area. Complete instructions fiYtlilable if you qualify. CIVIL SERVICE INCLrDES Storekeepers Post Offce Clerks Railway lUaU Clerks RUlfll Mail Carriers ,,, ,U'ehousemen l'ruek Drivers Dorcler Patrolmen Typists :.lechanics Highway :.IailStenographers Forest Service Customs Service Immigration Service Bookkeepers InspectorsAss t ::Ieat Inspectors Pustmilsters Li,.estock Internal Revenue Serv- Clerks Custodians ice City :\Iail Caniers Deputy U. S. :.lnrshals Guards HUi\DRBUS OF OTHEHS! SE:\D C .\Rl) TODAY For Qualilefltiolls and information HIGH SCHOOL KOT ALWAYS NECESSAHY.

BUSIXESS REPLY CARD First Class Permit Xo. 33, Plymouth, Indiana WASIJIKGTON TllAINIKG 11\STITUTE O. BOX &14 PLY:.10-CTII, IKDIANA further cost, complete I understand that I am entitled to receive, without training for the following Examination.

WASHIN'GTON TRAIXING I STI'rUTE 449 447 Complaint '" '" '" is entitled to all instructions, services, rights and privileges of membership in this institute during- lifetime. Our purpose is to supply yon with all available information. Permanent employment :.IE1'J . . . WO:\lE:\ From Ages 18 to 511'repare now for US Civll Service Job. Openings in this area during the next 12 months. But to get one of these jobs you must pass a test. '" '" '" Washington Service helps many prepare for these tests every year * * "' For FHEIi information all Government Jobs incJucling- list of positions and salaries fill out conpon and mail at once. TODAY. You wil also get full details on how you can qualify yourself to pass these tests. PAR. 4. Through the use of the foregoing statements and other statements appearing in his mail solicitations, advertising and form letters, respondent has represented, and now represents, directly or by implication, that:

1. There are many vacancies in the United States Civil Service positions llste,d and in numerous others.

2. There are now Civil Service positions open in the prospective customer s area or that there "\ill be such positions open ,within the next 12 months for l11en and women in their local areas. 3. Respondent will furnish complete instructions or training for Civil Service examinations or all the information necessary to obtain a Civil Service posit.ion.

4. Purchasers of respondent's course will reccive instructions service for life.

5. Prospective purchasers of respondent's course must pass a test and Jmvo special '1ualifimtions before they will be permitted to enroll in or purchase respondent' s course of instructions. PAR. 5. In the course and conduct of his said business, respondent calls upon prospective purchasers of his course and by means of oral statements repeats the statements made in the printed advertising, cards and form letters, and, in addition, represents, directly and by implication, to said prospective purchasers that: 1. Anyone \vho complet.e,s respondent's course will pass a Civil Service examination and qua.lify ior a Civil Service position or be assured of securing such a position.

2. Unless one enrolls in the course within a limited or specified time he will not be permitted to purchase or take the course. 3. Specific amounts, such as $5 000 annually, are the starting salaries in Civil Service positions for "\which respondent' s course purports to train or prepare.

450 FEDERAL TRADE C01tIMJSSIOX DECISIOKS: Complaint 60 F.

4. Prospective purchasers of respondent's course must pass a. test and have special qualifications before they "Will be permitted to purchase, or enroll in, respondent's course.

5. It is necessftry to take a correspondence course before being able to pass a Civil Service examination.

6. Education is the only requirement or qualification for obtaining a Civil Service position.

7. Respondent will continue to train a purchaser of his course until the purchaser has passed an exrunina60n and received a Civil Service position.

8. Respondent will give personal tra.ining or assistance to purchasers of his course, will notify them of approaching Civil Service lminations, and will assist them in filling out applications for such examinations.

PAR. 6. AIJ of said statements and representations are false, misleading and deceptive. In truth and in fact: 1. There are no vacancies in the United States Civil Service for many of the positions represented by respondent to be open to the prospective purchasers of his course.

2. Seldom, jf ever, are any of the positions open in the home locality of the prospective purchaser, as represented by the respondent. 3. Respondent does not furnish complete instructions or training for successful passing of Civil Service examinations or for securing Civil Service positions, nor does he notify purchasers of his COllrse when and where such exa.minations will be held. 4. R.esponclent does not furnish instructions or service for life of the purchaser of his course, nor does he give any personal instructions or furnish any service except the course of instructions which he sells; neither does he continue to instruct or tra.in purchasers of his courso until they secure Civil Service appointments. 5. The only required qualifications to emon in respondent' s said course are that the prosper.tive purchaser ,vill sign a contract and maka the down payment.

6. Completion of respondent's course or the passing of a Civil Service examination for the position desired does not assure or guarantee an appointment to such n position.

7. Other requirements, such as experience, accomplishments, and physical condition, as well as the educational requirement., must be met before a person is qualified to take a Civil Service examination for many of the positions listed by the respondent. 8. There is no limit to the time in which a person may purchase the respondent' s said course of study and instructions. WASHD,T'GT01\-: TRAINIXG INSTITUTE 451 447 Dedsion and Order 9. It is not necessary to purchase or enroll in respondent' s or in any other correspondence course in order to qualify for and pass a Civil Service examination.

PAR. 7. The use of t.he word "Institute in respondent' s trade name iInpJies the existence and operation of a resident institution of higher Jearning, with a staff of competent, experienced and qualified educators, offering instructions in the arts, sciences and subjects of higherlearning. The primary object of the work of an institute is that of scientific investigation or instruction, and not that of a commercial promotion for profit.

In truth and in fact, respondent's business is not an "institute within the generally accepted meaning of the term. Respondent' said business is that of selling a course of study and instructions purporting to prepare a person for Civil Service examinations, which does not involve study of subjects in higher education or arts and sciences; in fact, respondent does not require any education for the taking of his course. Respondent's business is operated for the sole purpose of financial gain for himself.

PAR. 8. Respondent is now, and at all times mentioned herein has been, in substantial cOlnpetition with other individuals, corporations partnerships and firms engaged in the sale, in commerce, of courses of instructions by correspondents.

PAR. 9. The use by respondent of the aforesaid false, misleading and deceptive statements, representations and practices has had, and now has, the capacity and tendency to xnislead 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 respondent's said course of study and instructions by reason of said erroneous and mistaken belief.

PAR. 10. The aforesaid acts and practices of respondent, as herein alleged, were, and are, all to the prejudice of the public and of respondent' s co.mpetitors and constituted, and now constitute, unfair methods of competition in commerce and lUfair and deceptive acts and practices in commerce in violation of Section 5 (aJ (1) of the Federal Tmde Commission Act.

DECISION AND ORDER The Commission having heretofore determined to issue It.s complaint charging the respondent named in the caption hereof with violation of the Federal Trade COlilllission Act, and the respondent having been served with notice of said determination and with a copy of the com- 719- 03- 452 FEDERAL TRADE CO ISSIO:\ DECISIONS Decision and Order 60 F.

plaint the Commission intended to issue, together with a proposed form of order; and Tho respondent and counsel for the Comulission having thereafter executed an agrecment containing a consent order, an admission by the respondent of all tho jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an (lcl1nission by respondent that the law has been violated as set forth in such complaint and wa.ivers and provisions as required by the C0l111nission s rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement makes the following jurisclictionalfinclings, and enters the following order:

1. R.respondent, Cecil T. .Jenkinson, is an indivic1mtJ trading and doing business as 'Yashington Training Institute, with his offce and principal,l place of business located in the Lauer Building, in the city of Plymouth, State of Indiana.

2. The Federal Trade Commission has jurisdiction of t.he subject matter of this proceeding and of the respondent., and the proce,eding is in the public interest.

ORDER 1 tis opde1' That Cecil T. Jenkinson, individually and trading and doing business under the name of ,Vashington Training Institut.e, or under any other name, and his agents, representatives and employe, directly or through tn:y corporate or other device, in connection with the offering for sale, sale or distribution in commerce, as '"commerce is deemed in the Federal Trade Commission Act, of a course of study and instructions, do fortlnvith cease and desist from: 1. H.eprcsenting, directly or indirectly, that: (a) Completion of respondent's course of study assures passing a Civil Service examinat.ion or assure,s the purchaser of said course of qualifying for or securing a Civil Service position. (b) There are vfLcancies in any United States Civil Service positions when such vacancies do not exist.

(c) Vac Lncies exist In United States Civil Service positions in any specified locality when such vacancies do not exist. (d) It is necessary to take a correspondence course, or any other COllrse of study, before a person will be able to pass a Civil Service examination, ,,,hen such is not the fact.

(e) Positions in the United States Civil Service, which are restricted to any group, or otherwise restricted, or require certain qualifica60ns ate open unless such restrictions or qllaliiications are clearly disclosed. DVOTOXE CO. , INC. , KT AL. 453 447 Complaint (f) Passing an examination for a Civil Service position guarantees or assures an appointment to such a position. (g) Prospective purchasers must pass a test or have special qualifications before they may enroll for respondent's course. (h) Respondent's offer of sale of his course is limited as to time. (i) Respondent furnishes conlplete information as to and notifies the purchaser of his course when and where a Civil Service examination will be held, or will assist in filing an application to take t1 Civil Service examination.

2. using the word "Institute" or anyahbreviation or simulation thereof as pa.rt of said respondent's trade name or as a paint of the name of respondent's school; or otherwise representing, directly or indirectly, that respondent's school is an institute. It is f1trther ordered Tlnlt the respondent herein shall, within sixty (60) days after service upon him of this order, file with the Commission a report ill writing setting forth in detail the manner and form in which he has complied with this order.

IN THE J\IA rl'ER OF DUO TOKE COMPANY INC. ET AL.

COXSEN'l ORDER, ETC. : IN REGARD TO THE ALLEGED 'VIOLATION OF THE FEDER.\.L TRADE C02\DIlSSION ACT Dock.et C-87. Complaint, Feb. 28, 1962-Deeision, Feb. , 1962 Consent order requiring Keyport, X. , manufacturers of phonograph needles an(l accessories to disclose clearly the coulltry of origin of imported needles; to cease representing falsely that synthetic needle points .were made of jewels or sapphires, that excessh"c list prices and printed amounts on retail packages 'were thc usual retail prices for the needles, and that their diamond Deedle was guaranteed in every respect.

CO;UPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Aet, the Federal Trade Commission, ha.ving reason t.o believe that Duotone Company, Inc., a corporation, and Stephen Nest.cr and Virginia este.r, indl vidllally and as officers of said corporation, hereinafter referred to as respondents, have violated the provisions of sa.id Act, a.nd it appearing to the Commission that a proceeding by it in respect thereof 'ivould be in the public interest, hereby issues its complaint stating its cha.rges in that respect as follo'iTs:

454 FEDERAL TRADE C01CvfISSIO T DECISIONS Complaint 60 F.

PARAGRAPH 1. Respondent, Duotone Company, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of :/ew York, with its principal offce and place of business located at Locust Street, Keyport, State of Xew .Tersey. Hespondents Stephen Nester and Virginia Nester are offcers of the corporate respondent. They fornmlate, direct and control the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. Their address is 56 Ocean A venue, Ideal Beach, K.

PAR. 2. Respondents are now, and for some time last past Imve been engaged in the manufacture and importation, advertising, offering for sale, sale and distribution of phonograph needles and phonograph accessories to wholesalers or distributors for sale to retailers, and in some instances directly to retailers for resale to the public. PAR. 3. In the course and conduct of their business, respondents now cause, and for some time last pa,st have caused, their said products when sold, to be shipped from their place of business in the State of New Jersey to purchasers thereof located in various other States of the 1Jnited States, and maintain, and at all times mentioned herein l1ave maintained, a substantial course of trade in said products in commerce, as "conunerce" is defined in the Federal Trade Commission Act.

PAn. 4. In the course and conduct of their business, as aforesaid and for the purpose of inducing the sale of their said phonograph needles, respondents have made certain statements and representations with respect to the origin, composition, price and gua.rantee of said product Among and typical of such statements and representations, but not all inclusive thereof, as set forth in respondents' Catalog, Replacement Needle Wall Reference Charts, Counter Sales Cards, and other point of sale materials, including the individual retail packages or containers in which said merchandise is displayed for retail sale, are the following:

(A) Duotone Phonograph Needle Duotone (followed by the Arabic numbers slich as) 724, or 725, or 738.

Dnotone Co. Locust St. Key:port, N.

DUOTONE 1960 Keypo:rt .7. Locust1960Street Replacement Keedle Wall Reference Chart COPYRIGHT 1961 (E) Duotone Keedlcs are Color-Coded:

Diamonds: Sapphires: . . . . DUOTONE CO. , ET AL. 455 453 Complaint .All twin point Sapphire needles are available in .001 both sides at no additional cost.

A section of manufacturing operations. Employees are engaged in processing material for phonograph needles and mounting stones both jewel and diamond to needle shanks.

OSMIUM JEWEL DIAMOND Needle List K eedle List Needle List Number Price Kumber Price Number Price PHONOGRAPH MODEL NEEDLE GUIDE Sapphire diamond THE DUOTONE SAPHIRE SO)JOTONE TWIN- POINT SAPPHIRE (C) (Catalog: Page 4) Point size in List No. Cartridge Type mils Price 508D Philco $9. 515 KC. 1. 50 519 Shure 1. 50 524 Philco 534D Elcctro- Voice DUOTOKE 694 $5. Replacement for Zenith 142- Jewel Tip (Yellov,' All Speed DUOTONE 631 ( WE022) $I 50 Standard (Display Card):

DUOTONE SONOTONE TWIN POINT Sapphire Needlc $3.

(Individual Needle Retail packaging):

735 (Stereo) $3. DUOTONE 694 DUOTONE 631 (WE022) 1. 50 (D) DUOTOKEDUOTOKEGUARANTEES THE WHOLE DIAMOND KEEDLE FOR EITHER ivIOKOPHOKIC OR STEREOPHONIC REPRODUCTION, AT NO EXTRA COST PAR. 5. By and through the use of the aforementioned statements and representations, and others similar thereto but not specifically set forth herein, respondents have represented, and are now representing, directly or by implication:

1. That all of said products are manufactured or originate in the G"united States.

2. That their phonograph needles have points made of jewels or sapphires.

456 FEDERAL TRADE CO:\V!ISSlO:\ DECISIONS Complaint 60 F.

3. That said " list price.s, avaiJahle for inspection hy the general public, are the usual and regular retail selling prices or said merchandise in the trade area or areas where the representations are made. 4. By printing or ca,using to be printed, certain a.mount.s on the. individual phonograph needle retail packages or containers, therchy representing, directly or by implication, that said imprinted amounts are the usual and customary retail prices for said phonograph needles in the trade area or areas where the representations are made. 5. That said diamond phonograph needle is guaranteed in every respect.

PAR. 6. Said statements and representations were and are false misleading and deceptive. In truth and in fact: 1. AJJ of said phonograph needles are not manufactured in the united States. Some of said phonograph needles are manufactured in Japan or other foreign countries and this fact is not clearly or adequately disclosed so as to give the purchasing puhlic notice of the countries of origin of said phonograph needles. There arc among members of the purchasing puhlie a suhstantial numher who have a preference for products originating in the United St.ates over products originating in foreign countries, including phonogra ph needles originating in .J a pan.

2. The tips or points of the phonograph needies designated as jewel or sapphire are not mac1c of the precious stones kno\Vn as sapphires or jewels, but said tips or points are in fact composed of synthetic material.

3. Respondents list pr.ices': are fictitious and in excess of the usual and customary retail prices for said phonograph neeules in tile trade area or areas where the representations arc ma.de. 4. The printed amounts on the individual phonograph needle retail packages or containers are not the usual and customary retail prices for said phonograph needles in the trade area or are.as ,,,he.re the representations are made.

5. Respondents' products are not guaranteed in every respect. The guarantee provided was limited and the nature and extent of such limitations were not disclosed.

PAR. 7. By the aforesaid acts and practices, respondents place in he hands of dealers and retailers means and insti11mentalities by and through which they ma.y mislead the public as to origin, compo sition, guarantee and llsml1 and customary retail selling price of said products.

PAR. 8. In the conduct of their business, at a11 times mentioned he.rein, respondents have. been in substantial competition, in com- DUOTOl\'" CO. , INC. ) ET AL. 457 453 Decision and Order merce, with corporations, firms, and individuals in the sale of phonograph needles and related phonograph accessories of the same general kind and nature as that sold by the respondents. PAR. 9. The use by the 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. 10. 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 constitute unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce, in violation of Section 5(a) (1) of the Federal Trade Commission Act.

DECISJON A D 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 Comlnission intended to issue, together with a proposed form of order; and The respondents and counsel for the Commission having thereafter xecuted an agreement containing a consent order, an admis ion by respondents of all the jurisdictional facts set forth in the complaint to issue herein, 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 such complaint, and waivers and provisions as required by the Conuission rules; and The Commission, having considered the 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, Duotone Company, Inc., 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 Jocated at Locust Street, in the city of Keyport, State of New Jersey. Respondents Stephen Nester and Virginia Nester are officers of Decision and Order 60 F. '.C. said corporation, and their address is 56 Ocean A vcnuc, Ideal Beach 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 respondent Duotone Company, Inc., a corporation, and its offcers, and Stephen Nester and Virginia Nester, individually and as offcers 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 phonograph needles, or any other products, in commerce as commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Offering for sale, sellng or distributing any such product which is packaged or otherwise placed in a container unless the country or place of origin is clearly and conspicuously disclosed on such package or container.

2. Offering for sale, selling or distributing any such product in such fL manller that the country or place of origin of the product is not clearly disclosed to prospective purchasers. 3. DIsseminating, or causing to be disseminated, any display or point of sale material with respect to any such product which fails to clearly and conspicuously disclose the country or place of origin of the product.

4. Advertising or representing in any manner and in any medium including point of sale ll1aterial that the points or tips of respondents phonograph needles are jewel, jeweled, sapphire, or, using any other term descriptive of precious stone, unless such points or tips are in truth and in fact composed of precious stone. 5. Offering for sale, selling or distributing phonograph Decdles containing points or tips of synthetic nature, unless there is a clear and conspicuous disclosure of the synthetic nature thereof. 6. Heprescnting, directly or by implication, by means of preticketing, use or the words "list price" or in any other manner, or by any other means, that any amount. is the usual and regular retail price of merchandise when such amount is in excess of the price at "which said merchandise js usually and regularly sold at retail in the trade area or areas where the representations are made. 7. Representing that any lnerchandise offered for sale is guaranteed unless the nature and extent of the guarantee and the manner in which HOBART STEEL CO., ETC. 459 453 Complaint the guarantor will perform thereunder are clearly and conspicuously disclosed.

8. Furnishing to others any means or instrumentalities by and through which they may misrepresent the origin, composition, guarantee or usual and customary retail prices of respondents' merchandise. It i8 jurther ordeped That the respondents herein shall, within sixty (60) days after service upon them of this order, Jile with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.