United Nations Publications, Inc.

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IN THE :;1.\ TTER OF UNITED NATIONS PUBLICATIONS, nc., E1' AL.

COl\TSENT ORDEl, ETC. , IX REGARD TO TJ-U: .\LLEm:D nol.\TIO),T OF TI- FEDER)..L TTi..DE CQ)DIISSIOX .\CT Docket C-598. C01l1)/oint. Scpt. 20. lP68-Decision, Sept. 20, 1.93 Consent order requiring the compilers pf a book entitled "The International Directory and Almanac " engaged in tlle sale of the Directory find of advertising space thceein, to cease representing falsely in f!(,h"ertising' that monies received from customers were placed in list find refunds were thel' eby guaranteed, and that they had their O'iYI1 alt department; find to cea!'e representing falsely, by their l'ol'porate name, that ihey were affilated with tbe Lnited atjons.

COilIPL.\IXT Pursuant to the pro\ isions of the Fccleral Trade COlnmission Act and by virtue of the nllthority vested in it by said Act, the Federal Trade Commission, halting reason to believe that. United Nations Publications, Inc., a corporation, and Fred Otash, individually and as an offcer of said corporation, l1ereinflfter referred to as respondents, have vioJatec1 the provisions of said Act, and it. aplwaring to the Commission that a proceeding lJY it in respect thereof ,,-ould he in the public interest, hereby issues its complaint, stating its charges in that. respect as follmys:

PARAGRAPH 1. Respondent 1Tnitec1 )Jat1ons Publications, In('. a corporation organized, existing and doing business under and by virtue of the la.ws of the State of Cn1ifornia "iyith its offce and principal place of business located at 0'10 N. Fairfax Awnue, Holly. wood 49, CaEfornia.

Re.spondent Fred Otash is president of the SR.id corporate respondent and fot1llulates, directs and controls the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. The business address of re:-ponclent Fred Otash is the same as that of the corporate respondent. Iris residence address is 8948 ,Vonderland AYCTl1e, Holly,yoocl 46 , C"lifornia. PAR. 2. Respondents ate now, and for some time last past have been engaged, in the compilation, advertising, offering for sale, sale and distribution of a book entitled "The International Directory and Alma.nac, hereinafter referred to as the Directory. UNITED NATIONS PUBLICATIOXS , INC. ) ET AL. 827 826 Complaint PAn. 3. In the course and conduct of their business, respondents now cause, and for some time last past have caused, their said Direc,tory, when sold, to be shipped from their place of business in California to purchasers thereof located in various other States of the United States, and maintain, and at an times mentioned herein have maintained, a substantial course of trade in said Directory in commerce, as "commerce" is deiined in the Federal Trade Commission Act.

Further, in the course and conduct of their business, respondents now cause, and for some time last past have caused, the dissemination of adwrtising material by United States Mails in the State of California and from that State into other States of the United States for the purpose of inducing, and which is likely to induce directly or indirectly, the purchase of said Directory and of adver. tising space in said Directory in commerce, as "commerce " is defined in the Federal Trade Commission Act.

PAH. 4. In the course and conduct of their business, at an times mentioned herein, respondents have been in substantial competition in commerce, with other corporations, firms and individuals engaged in the business of publishing and selling directories. PAH. 5. In the course and conduct of their business, and for the purpose of induc.ing the sale of said Directory and of advert.ising space in said Direetory, respondents have made certain statements and representations in nc1yertising disseminated as hereinabove set forth. Such statements and l'epresr.ntations related to the establishment of a. trust account and other matters. Typical, but not all inclusive, of such statements (llld representations are the following: Publication Guaranteed 01' :.loney Hcfunrlecl. An funds I'cceiyed by the pubJishel' for copies of the dirccto1'J' or advertisements, are placed in trust at Continental Bank S7aO Sunset Blvd., Los Angeles 69 California. If tlle directory is not pl1blisl1ed for any reason, your money is refunded in full. And, if J"OU are not completely satisfied with the director';\' return it within 10 days ami your mane." wil he refunded in full. Our art department ,vil design your ad for ;\-011 *.. "' PAR. 6. Through the use of the aforesaid statements and representations, respondents have represent.ed, directly or by implication: 1. That respondent corporation has its own art department for designing advertisements.

2. That monies received by respondents from their customers are pla.ced in a irust account which insures or guarantees the availability at all times of funds suffcient to meet all requests for refunds. PAR. 7. In truth and in fact:

1. Respondent corporation does not have its own art department. 828 FEDERAL TR'fDE C02\:DHSS'ION DECISIONS Decision and Order 63 F.

2. No trust account has been established ,,-hic.h insures or gnarantees refunds to respondents' customers.

Therefore, said statements and representations set forth in Paragraphs 5 nnd 6 are false, misleading and deceptive. \R. 8. Furth1er, in the course and conduct of their business respondents have caused the corporate na.me "United Nations Publications, Inc. :' to appear on their business stationery, in their advertising brochures and other printed mat tel'. Through use of the 'YDrds " United ations:' as part of said corporate name, respondents represent, directly or by implication, that their business is affliated with or sponsored by the well knmn1 world organization knmn1 as the 1Jnited Nations. PAR. 9. In truth and in fact., respondents: business is no "a:, a part of, affliated "ith or sponsored by the 1jnitec1 Nations. Therefore, the representation referred to in Paragraph 8 is false misleading and deceptive.

PAR. 10. The use by respondents of the aforesnicl false, misleading and decepti,re statements and representations has had, and now has, the. capacity and tendency to mislead members of the public into the erroneous and mistaken belief that said statements and representations "ere, and are, true a11(1 into the purchase of the said Directory and of ac1,ertising space therein by reason of said erroneous and mistaken belief.

PAR. 11. The. aforesaid acts and practices of respondents. as 118r8in alleged, were and are all to the prejudice and injury of the public and of respondents' competitors and constituted, and now constitllte, unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce \Tithin the intent and meaning of Section 5 of the Federal Trade Commission Act. DECISlOX AXD OnDEH The Commission having heretofore determined to issue its compla,int c.charging the respondents named in the caption here.of "jth violation of the Federal Trade Commission Act, and the respondents having been served with notice of said determination and ",-ith a. copy of the complaint the Commission intended to issue, together ",'i th a proposed form of order: and The respondents and counsel for the Commission having therea.after executed an agreement containing a consent order, an admisin thesion by respondents of all the jurisdictional facts set forth complaint to issue herein, a statement that the signing of said agreement is for settlement purposes only and does not constitute an a.admission by respondents that. the law has been 'iolatecl as set forth UNITED NATIONS PlJBLICATIOXS , INC. , ET AL. 829 820 cision aml Order in such compla.int, and waivers and provisions as required by t.he Commission s rules; and The Commission, having considered the agreement, hereby accepts same, issues its compbint in the form contcmplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent., United Xations Publications, Inc., is a corporation organized, existing and doing business under' and by virtue of the laws of the State of California, with its omee and principal place of business located at 1D X. Fairfax .\venue, in the city of Hoi1ywood, State of California.

Respondent. Fred Otash is an offcer of said corporation, and his address is the same as that of said corporation. 2. The Federal Trade COl1lnissiol1 hns jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

OJmEH It i.s OJ'dered That respondent -Cuited Nations Publications, Inc. a corporation, and its offcers, and respondent Fred Ot.ash! individua.JJy and as a,n otr er of said corporation, and said respondents agents, representati'Tcs and employees, directly or through any corporate or ot.her derIee, in connection with the offering for sale, sale or distribution of The International Directory and Almanflc or any other book or publication, or of ,ldvertising space therein in commence, as "('om11e1'Cc: is defined in the Federal Trade Commission Act, do fortlnyith cease and desist from;

1. Representing, directly or by implir.ation, that respondents have an art. department or maintain their own staff for doing tlesign and art ,york for advertisements intended for publication in their directory, or misrepresenting in any manner the fnciJities afI'orclecl by respondents ' business. 2. Representing, directly or by implication, that monies received by respondents from their cnstmllers arc placed in trust account ,which insures or guarantees the availabilit.y at al1 times of funds suffcient to meet all requests for refunds. 3. losing the ,words " Gnitecl \Tations" or any other word or words of similar import. as part of any corporate or trade name; or representing in any other manner that respondents' business is in any way affliated with or sponsored by the United Kations. 4. H.eprcsenting in n11Y manner that their business is affliated with any organization with which jt, is in fact not nffliated. It is furtlwr onlend. That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the , Complaint 63 F.

Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.