President Manufacturing Company, Inc.

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IN THE i\!.4.TTER OF PRESIDENT MAC'LJFACTURIJ'G COMPANY , INC., ET AL. COXSEXT Order, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDER -\L 'rrade COloBITSSION ACT Docket C 104. Comp/aint, Mar. 1962-Decision. Mar. 28, 1962 Consent order requiring Providence, R.I., distributors of men s and women costume jewelry to jobbers and retailers. to cease misrepresenting their prod- , 648 (FEDERAL TRADE CO)"L\lI&SI01\ DECISIONS Complaint 60 F.

uets by such practices as attaching to them tickets bearing excessive prices represented thereby as the usual retail prices; affxing stickers or labels reading "24 Karat gold plated" to products having only an electrolytic application of gold; and affxing stickers to boxes of imitation pearl necklace and earring sets which stated they were made of "genuine fresh water pearls 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 Commssion, having reason to believe that President Manufacturing Company, Inc., a corporation, and Joslin Oken William R LeBlanc, 1Viliam J. LeBlanc and Henry Oken, individually and as offcers of said corporation, hereinafter referred to as respondents have violated the provisions of said Act, and it appearing to thc 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 President lanufacturing Company, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Rhode Island, with its principal office and place of business located at 43 Stukely Street, Providence RI. Respondents Joslin Oken, William R LeBlanc, Wiliam J. Le- Blanc and Henry Oken are offcers of the corporate respondent. The.y formulate, direct and control the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. Their address is the same as that of the corporate respondent. PAR. 2. R.respondents are now, and for some time last past have been engaged in the offering for sale, sale and distribution of men s and ladies' costume jewelry to distributors, jobbers and retailers for resale to the public.

PAR. 3. In the course and conduct of their business, respondents now cause, and for some tilne last past have caused, their said prod ucts, when sold, to be shipped from their place of business in the State of Rhode Island to purchasers the.reof located in various other states of the United States, and maintain, and at all times mentioned herein have maintained, a substantial course of trade in said products in com- Inerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 4. Respondents, for the purpose of inducing the purchase of their products, have enga.ged in the practice of using fictitious prices in connection therewith, and misrepresenting the material of which their products are made or composed, by the following methods and Ineans:

PRESIDENT MAN1JFACTURh'G CO. , h'C. , ET AL. 649 647 Complaint (a) By attaching, or causing to be attached, tickets to their said products upon which a certain amount is printed, thereby representing, directly or by implication, that said amOUJlt is the usual and regular retail price of said products. In truth and in fact, said amount is fictitious and in excess of the usual and regular retail price of said products in some of the trade areas where the representations are made.

(b) By affxing stickers, or labels to certain of their products containing statements thereon that such products are "24 Karat gold plated." In truth and in fact, said products are not 24 carat gold plated. The gold deposited thereon is not a substantial surface plating of gold applied by mechanical process but is an electrolytic application.

(c) By affxing stickers or labels to the boxes or containers with statements thereon that certain necklaces and earring sets are made of "genuine fresh water pearls." In truth and in fact, said necklace rmd earring sets are not made of fresh WtLter pearls but are imitations. PAR. 5. Respondents, on their labeling, use the word "glUtranteed: thereby representing that said products are guaranteed in every respect. Said statement and representation was false, misleading and deceptive. In truth and in fact, the guarantee is limited and the terms, conditions and the extent to which said guarantee applies and the manner in IV which the guarantor will perform thereunder are not disclosed.

PAR. 6. By the aforesaid practices, respondents place in the hands of dealers and others the means and instrumentalities by and through which they may mislead the public as to the quality and usual and regular retail prices of said products.

m. 7. In the conduct of their business, at all times mentioned herein, respondents have been in substantial competition, in commerce with corporations, firms and individuals engaged in the sale of jewelry 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 or substantial quantities or respondents' products by reason or said erroneous and mistaken belief, PAH, 9, The aforesaid acts and practices of respondents, as herein alleged, were, and are, all to the prejudice and injury of the public and or respondents' competitors and constituted and now constitute Decision and Order 60 li' 'l. unfair and 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 c.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 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 Commission s rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement makes the follm,ing jurisdictional findings, and enters the following order:

1. R.respondent, President fanufacturing Company, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Rhode Island, with its offce and principal place of business located at 4:3 Stukley Street in the city of Providence State of Rhode Island.

Respondents Joslin Oken, ,Vili"m R. LeBlanc, ,Villiam J. Le- Blanc and Henry Oken are offcers of said corporation and their address is the same as that of said corporation. 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 o)'dued That the respondents President Manufacturing Company, Inc. , a corporation, and its offcers, and respondents Joslin Oken, ,Villi",n R. LeBlanc, ,Villiam J. LeDlanc and Henry Okcn individual.11y and as offcers 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 or distribution of jewelry, or any other products, in commerce, as "com- PRESIDENT MANUFACTURING CO' I INC., ET AL. 651 647 Order merce" is defined in the Federal Trade Commission Act, do forthwith CBRse and desist from, directly or indirectly: 1. Representing, by preticketing or in any other manner, 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 is usually and regularly sold at retail in the trade area or areas where the representations are made.

2. Using the term "gold-plated", or any other word or words of similar import or meaning, to designate, describe or refer to an article which does not have a surface plating of gold or gold alloy applied by a mechanical process, provided, however, that any product, or part thereof, on which a substantial coating of gold or gold alloy has been affxed by an electrolytic process may be marked 01' described as gold electroplate or gold electroplated. 3. Using the word "pearls" or any other word or words of similar import or meaning to describe imitation pearls; provided however that the foregoing shall not be construed to prohibit the use of the word "pearls" to describe the appea.rance of said imitation pearls if whenever used, the word "pearls" is immediately preceded, in equally conspicuous type, by the word "imita6on" or the word "simulated" or other word of similar import or meaning, so as to clearly indicate that said imitation pearls are not genuine pearls but inlitations thereof. 4. Representing in any manller that imitation pearls are genuine pearls.

5. Placing in the hands of dealers and others a n18ans and instrumentality by and through which they may misrepresent the usual and customary retail price of their merchandise, the gold contet of their merchandise or the character and quality of the stones in their jewelry. 6. Representing that any merchandise sold or offered for sale is guaranteed, unless the nature and extent of the guarantee and the manner in which the guarantor will perform theretmder are clearly and conspicuously disclosed.

It i8 furthe?' ordered That the respondents herein shall, within sixty (60) days aftr service upon them of this order, fie with the Commission a report in writing setting forth in detail the maIUer and form in which they have complied ,,,ith this order. 652 FEDE'RAL TRADE COMMSSION DECIBIONS Complaint 60 F.