Dormeyer Corporation

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the manner and form in whioh it has complied with this order. INTEl': J.L4.TTER OF DORMEYER CORPORATION ET AL.

CONSENT ORDER , ETC. , IN REGARD TO 'file .ALI.EGED nOLATIOx OF THE FEDERAL TRDE CQ1vI1USS10N ACT Docket 845"1. Complaint, Jan. 5, 1962-Decision, May 8, 1962 Consent order requiring a Chicago manufacturer of household electrical applimlces and its advertising agency to cease representing falsely, in trade journals of national cireul\ation, that Dormeyer products bad been featured as gifts or Sho'1l on each of 12 "give-a'\vay " shows named. and that arrangements had b n made to continue such featuring and for respondent manTIfactureI' to sponsor the shows.

CO).IPL.UXT Pursua.nt tn 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 Dormeyer Corpora.tion, iL corporation, and Korth Advertising Incorporated, a corporation, hereinafter referred t.o as respondents, have violat.ed the provisions of the said Act, and it appearing to the Conunission that a proceeding by it in respect thereof would be in the public interest 'respect as hereby issues its complaint., stating its charges in that follows:

P ARAGRAl'n 1. Respondent Dormeyer Corporation is a corporation organized, exist.ing and doing business ulldcTand by virtue of the DORMEYEH COUP. ET AL. 1117 1116 Complaint laws of the State af Illinois, with its principal affce and place af business located at 700 North Kingsbury Avenue, Chicago Ill. Respondent 11 arth Advertising Incarparated is a corporation arganized, existing and doing business under and by virtue of the laws of the State af Illinois, with its principal affce and place of business located at :\ferchandise Mart, Chicago 54, Ill. PAR. 2. Respondent Dormeyer Corporation is now, and for some time last past has been engaged in the manufacture, a,advertising, affering far sale, sale and distribution af hausehald electrical appliances to' distributors, and to retailers for resale to the public. Respondent North Advertising Incarporated is an advertising agency and is now and for some time past has been the advertising representative of respondent Dormeyer Corporation. As such it prepares and places, and far some time last past has prepared and pla,ced advertising ma,teria,1 used by Dormeyer Carparation, including tha,t herinafter referred to', to promate the sale af Darmeyer Carporatian home electrical appliances.

PAR. 3. In the course and conduct of its business, respondent Dormeyer Corporation now causes, and for some time last past has caused its said home electrical appliances when said, to be shipped from its factary or plant in the State of Illinois to' purchasers thereof located in various other states af the United States and in the District af Columbia, and maintains, and at all times mentioned herein has maintained a substantial course of trade in said products in commerce, as "commerce" is defined in the Federal Trade Commission Act. PAR. 4. In the conduct of its business at all times mentioned herein respondent Dormeyer Corporation has been in substantial competition in commerce, with corporations, firms and individuals in the sale of hauschold electrical appliances.

In the conduct of its business at a1l times mentioned herein, respondent N arth Advertising Incorporated ha,s been in substantial campetition in commerce, with other corporations, firms and individuals in the advertising business.

The respondents have acted in cooperation and conjunction with ea.ch other in the performance of the acts and practices herein set forth, PAR. 5. In the course and conduct of its business and for the purpose of inducing the purchase of it.s household ele.ctrieal appliances in commerce, respondent Dormeyer Corporation has advertised said products 1118 FEDERAL TRADE COMMISSION DECISIOKS Complaint 60 F.

in trade magazines of national circulation. Among and typical of such advertisements is the following:

DOR3leyer' S BIG TV I'LSH (Pictures and names of the masters of ceremonies of twelve daytime TV net'Tork "give-away" shows, including the names of the shows and the network over which each is broadcast.

As seen on all 12 Daytime Quiz Shows-Oll NBC-TV, CBS- , ABC-TV. SELLS DORl\EYER'S HOT j\ EW LISE (Pictures of twelve individual electrical appliances with the llame and an identification number of each.

More than 350 milion TV impressions during the ,-biggest sellng weeks before Christmas Stock up now! Call your Dormeyer distributor today! PAR. 6. By means of the aforesaid advertisements and the statements a,nd representations contained therein, respondents have represented, directly or by implication, that:

(1) Dormeyer Corporation s products have been featured as gifts or shown all each of the said twelve "give-away" shows named in the advertisement.

(2) Arrangements have been made whereby Dormeyer Corporation s products will be featured as gifts or shown on each of the said twelve "give-away" shows, or whereby Dormeyer Corporation will sponsor said shows.

PAR. 7. The aforesaid advertisements, and the statements and representations contained therein, were, and are, false, misleading and deceptive, In truth and in fact (1) Dormeyer Corporation s products have not been featured as gifts or shown on each of the said twelve "give-a way" shows named in the advertisement.

(2) Arrangements have not been made whereby Dormeyer Corporation s products wil be featured as gifts or be shown on each of t.he said twelve "give-away" shows, nor have arrangements been made whereby Dorn1eyer Corporation will sponsor said shows. PAR. 8. The use by respondents of the aforesaid false, misleading and deceptive representations has had, and now has, the capacity and tendency to mislead distributors and retailers of household electrical applia.nces into the erroneous and mistaken belief that the said representations were, and are, true and into the purchase of substantial quantities of respondent Donneyer Corporation s products by reason of said erroneous and mjstaken beliefs.

PAR. 9. The aforesaid acts a.nd 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 constitutBj unfair methods of competition, in commerce, and unfair and deceptive DORMEYER CORP. ET AL. llHJ 1116 Decision and Order acts and practices in commerce in violation of Section 5(a) (1) of the Federal Trade Commission Act.

DECISION AXD ORDER This matter having come on to be heard by the Commission upon a record consisting of the Commission s complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act and an agreement by and between respondents and counsel supporting the complaint, which agreement contains an order to cease and desist, an admission by the respondents of all the jurisdictional facts alleged 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 they have violated the law as alleged in the comphlint, and waivers and provisions as required by the Commission s rules; and The Commission having considered the agreement and order contained therein and being of the opinion that thc agrecment provides an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings are made, and the following order is entered:

1. Respondent Dormeyer Corporation is a corporation organized existing and doing business under and by virtue of the laws of the State of Illinois, with its offce and principal place of business located at 700 North Kingsbury Avenue, Chicago 10, Ill. Respondent orth Advertising Incorporated is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its offce and principal place of business located at Merchandise Mart, Chicago, Ill. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceding and of the respondents, and the proceeding is in the public interest.

OlilEH 1 t is ordered That respondent Dornleyer Corporation, a corporation, its successors and assigns, and respondent Korth Advertising Incorporated, a corporation, and their offcers, agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of household electrical appliances, or any other product, in commerce, as "commerce" is defined in the Federal Trade Commission Act, forthwith cease and desist from:

H20 FEDERAL TRADE COMMISSION DECISIONS Complaint 60 F.

1. Representing that such household electrical appliances or any other products have been exhibited, featured, or advertised to any extent, or in any manner, which is contrary to the fact. 2. Representing that any such clectrical household appliances or any other products wil be advertised or promoted to any extent or in any specified manner and then failing to advertise or promote such products to the extent or in the mailer represented. 3. Falsely representing that contracts have been entered into or arrangements or commitments made for the sponsorship of any radio or television show or program, or whereby any such electrical household appliances or any other products wil be exhibited, featured or advertised on any radio or television show or program or in any other specified manner.

It i8 further ordered That the respondents herein shall, within sixty (60) days after service upon them of tllis 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.