O.E.M. Products Company et al.

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IN THE i\IATTER OF E.M. PRODUCTS CO fPAXY ET AL.

CONSENT ORDER, ETC. , IX REGARD TO THE ALLEGED nol_-ITlO OF SEC. 2 (c) OF THB CLAYTON ACT Docket 0-127. Complaint, Apr. 1962-Deoision, Apr. , 1962 Consent order requiring a Chicago distributor of automotive parts, supplies and related products to cease violating Sec. 2(c) of the Clayton Act by accepting brokerage on substantial purchases for its own account for resale from suppliers-utilzin the services of its vice president and main stockholder who operated a sale proprietorship at the same aodress and functioned as a manufacturer s representative or selling agent such as, for example, compensation of five percent on purchases of hose from the Acme- Hamilton Manufacturing Corporation of Trenton, J\ , ,, M. PRODUCTS CO. ET AL. 915 914 Complaint COl\IPLAINT The Federal Trade Commission, having reason to believe that the parties respondent un,med in the caption hereof, and hereinafter more particularly dcsribed, have been and are now violating the provisions of subsection (c) of Section Z of the Clayton Act, as amended (U. Title 15, Sec. 13), hereby issues its complaint, stating its charges TIith respect thereto.o as fonows :

PAHAGR.-\pn 1. Respondent l\1. Products Company is a corporation organized, existing and doing business under and by virtue of the la,,'s of the State of Delaware, with its offce and principal place of business locat.ed at 5Z96 K orthwest Highway, Chicago 30 , Il1. KJ\I. Products Company is engaged in thc sale and distribution of automotive parts, supplies and related products, with a sales volume of "approximately $500 000 annuany. O.E.J\I. Products Company purchases the automotive parts, supplies and related products which it sens and distributes from various manufacturers located throughout the United States.

Responden t Robert C. Sanderson is vice president and secret.ary, and owns cighty percent of the corporate stock of respondent O. J\1. Products Company. In addition, respondent Hobert C. Sanderson owns, controls and operates Robert C. Sanderson Company, a sole proprietorship, \\'ith offces and principal place of business also located at 5296 Nortlnmst Highway, Chicago 30 , Ill. Robert C. Anderson Company functions as a manufacturer s representative, or selling agent, or broker, for various manufacturers of aut.omotive parts, supplies and related products. In the operation of Hobert C. Sanderson Cornpnn:y, respondent R.robert C. Sanderson negotiates the sale of automotive parts, supplies and related products for and on behalf of Yftrious lnanufac.urer-sellers and in connection therewith recei yes a commission or brokerage fce paid by said manufacturer-sellers. PATI. 2. In the course and conduct of its business respondmlt O. J\I. Products Company has purchased and is now purchasing automotive parts, supplies and related products in commerce, as "commerce " is defined in the aforesaid Clayton Act, from sellers located in 1 flrjous states of the Vnitec1 States other than the state in ,,,which respondent is located, and has resold such products to cust.omers likewise located in various states other than that in which respondent is located. Said respondent transports or causes such products hen purchased or resold, to be transported from the places of business of its suppliers to its own plnce of business, or from its own place of business to the. places of businpss of jts customers, located in various other states of the 1 nitecl 71!J- 1308- G4- 916 FEDERAL TRADE COME\SSION DECISIO)fS Complaint 60 F.

States. Thus there has been a course of trade in conlmerce, and said products, across state lines between respondent O. M. Products Company and its suppliers, and bct\yeen said respondent and its customers. Respondent Robert C. Sanderson, operating under the name Robert C. Sanderson Company, as a selling agent 01' broke,I' for various manufacturer-sellers located in various states of the United States other than, and including, the state of Illinois, negotiates the sale of automo tive parts, supplies and related products Lncl causes said products when sold, to be transported from the place of business of thcsc sellers to buyers located elsewhere. H.espol1dent Robert C. Sanderson, ope.rat iug under the name Robert C. Sanderson Company, is engaged in com lllerce, as "commerce" is defi.ned in the a,foresaid Clayton Act. PAR. 3. In the course and conduct of its business respondent O. Products Company has made substantial purchases of ,wtomotive parts, supplies and related products, for its own account for resale from suppliers who utilize the services of respondent Robert C. Sanderson, opentting under' the name Robert C. Sanderson Company, as manufacturer s representative, selling agent or broker, and on such purchases respondent Robert C. Sanderson has received and accepted and is now receiving and accepting, a comlnission, brokerage or other compensation. Thus respondp,nt n,robert C. Sanderson receives a commission, brokerage or other allm-nmce on purchases of respondent 1. Products Company, 11 corpon1tion, eighty percent of the corporate stock of which is owned by respondent Robert C. Sanderson. Therefore, through the corporate device of respondent O.E.M. Products Company, respondent Robert C. Sanderson has received and ace-epted, and is now receiving and accepting, 11 cOllul1ission, brokerage or other c0111pensa.tion, or an a.lowance or discount in Eeu thereof, on respondent N!.purchases for his own account. For example, Products Company purchases hose, through Robert C. Sanderson Company, from the Acme-Hamilton 1\hnufacturing Corporation of Trenton, New Jersey. R.robert C. Sanderson Company's compensation on sales negotiated all behalf of this supplier is five pereeut and on such sales respondent Hobert C. Sanderson, through the Robert C. Sancler son Company, receives the aforesaid commisston. PAR. 4. Tho acts and practices of respondents in recci\Ting and accepting a brokerage or a commission, or an al1m1;ance or disCOlU1t in lieu thereof, on their own purchases, as above alleged and described are in violation of subsection (c) of Section 2 of the Clayton Act, as amended (FS. C. Title 15, Sec. 13).

M. PRODeCTS co. ET AL. 917 914 Order DECISION AXD ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of subsection (C) of Section 2 of the Clayton Ad, as amended, and the respondents having been served with notice of said deterlnination and with a copy of the complaint the Commission intended to issue together with a proposed forth of order; and The respondents and counsel for the Commission having thereafter executed an a.f:reement containing a consent order, an admission by the respondents of all the jurisdictional bets set forth in the complaint to issue herein, a statement that the signing of sa,id agree,ment 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 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 O. M. Products Company is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its offce and principal place of business located at 5296 Northwest Highway, in the city of Chicago, State of Illnois.

Respondent Robert C. Sanderson is an offcer of said corporation. JIe also does business as Robert C. Sanderson Company and his address is the same as that of the corpomte respondent. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents. ORDER It is ordered That respondents O.E.M. Products Company, a corporation, and Robert C. Sanderson, individually and as an offcer of said corporation, and also doing business as Hobert C. Sanderson Company, a sole proprietorship, and respondents' agents, representatives and employees, directly or through any corporate or other device in connection with the purchase of automotive parts, supplies and related products in commerce, as "commerce" is defined in the Clayton Act, do forthwith cease and desist from:

Receiving or accepting, directly or indirectly, from any seUer, anything of value as a corrnission, brokerage, or other compensation, or 918 FEDERAL TRADE CO:NL\IISSIQS DECISIONS Complaint 60 F.

a.ny allowance or discount in lieu thereof, upon or in connection ,with flny purchase of automotlve parts, supplies flnd relfLted products for respondents 0\"\11 account, or \\hc1'e any of said re, sponclents a.re the a.gent, representative, or other intermedia-TY acting for or in behalf, or is subject to t.he director indirect cont.rol, of the buyer. It is fnl'that OJ'dated That the respondents 11ETein sha.ll, ,\'within sixty (60) cbys after service upon them of this order, file with the Commission a report ill writing selting forth in detail the manner nel form in which they hays complied \'it.h this order. 11\' TF-IE J\L\TTEH OF B "" P "\SSOCL\TES OF COXNECTICFl', INC., ET AL. CO),TSENT ORDER, ETC., IX REG.\HD TO THE ,,\ALLEGED YIOh\TJQX OF THE FEDEIL\L TRADE CO:'fli1.sS1QX , \ND THE TEXTIU FIBER PRODCCTS IDEXTI- FIC"\.TlOX "\CTS Docket C-J28. Callplaint, Api". 1962-Dcciiiioll, Apr. 2G, 1962 Consent order requiring importers and r1distributors of textile fiber pro(luds with offces ill Cniollvile, Conn., and Kew York City, to C('fii,e yiolating tile Textie Fiber Prodnds Identification .\ct hy failing- to label II: dies s\Yillsuits with required information.

CO:\IPLAIXT Pursuant to t.he provisions of the FedcnLl Trade Commission A_ and t.he Textile Fiber Prolluc.ts Identification Act: ancl by yirll1c of the authority vested in it. by said acts, t.he. Federal Trade Commission having reason to believe that B & P Associates of C0lllp.ctjcut, Inc. n corporation, and Samuel H. Perman and I-Ierbert A . Berk, individually and as ofIeers of said corporate.ion, hereinafter referred to as respondents, lhl\"C violated the provisions of said Acts and the Rules and Regulations promulgated under the Textile Fiber Products Identification Act, and it appearing to the. Commission that a proceeclillg by it 111 re::pec. thereof, would be in the public interest, hereby issues its (,o1lplnint stating its clmrges ill that. respect as follmys: \IL-\GH.\PH 1. Hesponclent. B & P Associates of Connecticut, Inc. is a. corporation organized, existing nnd doing business under' and by virtue of the bws of the Stale of Connecticut, -with its office and principal place of business located in )lyrt 1c 1\li11s Fnctory Store, L-:nionville Conn.

B & l' ASSOCIATES OF CON ECTICUT , n,, ET AL. 919 918 Decision and Order Individual respondents Samuel R.. Perman and IIerbert. A. Berk are President, and Vice Presjdent Sec.retary and Treasurer respectively, of corporate respondent. Said individual respondents formulate, direct and control the acts, practices and policies of said corporate respondent. Said individual responden1:s business address is17 .John Street, NCI\" York, X.

PAR. 2. Subsequcnt to the effective date of the Tcxtile Fiber Products Identification Act on JIarch 3, 1960, respondents ha vco been and are now engaged in the introduction, delivery for introdl1ction, sale a(h-ertising, and offering for sale, in commerce, and in the transportation or causing to be transported in commerce, and the. importation into the Gnitcd States, of textile fiber products; and 1," n sold offered for sale, advertised, delivered, transported, and caused to be tra.nsported, textile fiber products, \vhieb have been advertised or offered for sale in commerce; and have sold, ofiered for sale, advertised, delivered. , transported, and caused to be transported, after shipment in cmnmerce, textile fiber products, either in their origina.l sta.te 01' contained in other textile fiber products, as the. terms "commerce" and "textile fiber produce: are defined in the Textile Fiber Products Identification c\ct.

PAIL 3. Certain of said textile fiber products, natllcly ladies' swimsuits, were misbranded by respondents in that. they were not stamped tagged or labeled with any of the information required under Section 4 (b) of the Textie Fiber Products Identification Act, or in the manner and form as prescribed by the Hules and Regulations promulgated under saiel Act.

m. 4. The acts and practices of respondents as set forth abo\' were, and are, in violation of the Textile Fiber Products Identification Act and Rules and HCbJ11ations promulgated thereunder and constituted, and now constitute, unfair and deceptive. acts and practices and unfair methods of competition, in COlTIlerCe, "Within the intent and meaning of the Federal Trade Commission Act. DECISION AXD ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of the Federa.l Trade Commission Aet and the Textile Fiber Products Identification .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 \"ith ,1, proposed form of order; and 920 FEDERAL TRADE COMMISSIO:\ DECISIONS Decision and Order 60 F.

The respondents and counsel for the Commission ha.ving thereafter oxecuted an agreement containing a consent order, an admission by the 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 wftivers and provisions as required by the Commission s rules; and The Commission, having consicle.red the agreement, hereby acce,pts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent, B & P Associates of Connecticut, Inc., is a corporation organized, existing and doing business under and by virtue of the hws of the State of Connecticut, with its offce and principal place of business located in IyrtJe :Mils Factory Store, in the city of Unionvillc, State of Connecticut.

Respondents Samuel R. Perman a.nd Herbert A. Berk are offcers of sa,id corporation, and their business address is 17 .J olm Street Nm,York 2. The Federal Trade Commission has jluisdiction of t.he subject matter of this proceeding and of the respondents, nnd the proceeding is ill the public interest.

ORDER J t ordered That respondents B & P Associates of Connecticut Inc., a corporation, and its offcers, and Samuel R. Perman a.nd Herbert 1-. Berk, 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 introdnetion delivery for int.production, sale, ady€rtisil1g, or oiIering for sale, in commerce, or the transportation or causing to be transported in conurle.rce or the iUlportation into the United States of any textile fiber product; or in connection "with the sale, offering for sale, advertising, delivery, transportation, or causing to be t.ransporteel, of any textile fiber product, which has bee.n ad"i ertisec1 or offered for sale in commerce; or in conne.ction with the. sale, offering for sale, ac1ve.rtising, delivery, transportation, or causing to be tnmsported, after shipment in Coltnlerce., of any textile fiber product, "ivhether in its original state or contflined in other textile fiber.r products, as the terms "cOlnmerce" and texti)e fiber product" are defined in the Textile Fiber Products Ide.ntjfication Act, do forthwith cease and desist from misbranding FISHKI KNITWEAR CO. , IKC. , ET AL. 921 918 Complaint textile fiber products by failing to affx labels to such products showing each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act. 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 '''Titing setting forth in detail the manner and form in which they have complied with this order.