State Blind Sales, Inc.

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IN THE J\iatter OF STATE BLIND SALES, INC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGF.D VIOL."-TION OF THE FEDERAL TRAE COMJ'ISSION ACT Docket 0-635. Complaint, Dec. 24, 1965-Decision, Dec. 24, 1963 Consent order requiring Detroit, "lieb., seHers of rugs, brooms, mops and other household articles direct to the public and to distributors for resale, to cease representing falsely in advertisements in magazines, band circulars, telephone solicitations, radio broadcasts and by other means, that their commercial businesses operated for their own profit were charitable enterprises operated for the benefit of blind and handicapped persons, that only blind and handicapped persons were employed, and that such persons produced or packaged all their products and benefited from the sale thereof.

COMPLAI 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 State Blind Sales. Inc., a corporation, a,nd orman \'V". 1-Ienson, individually and as an offcer of said corporation, and Philip IC Dauvin, an individual trading and doing business as State Blind Sales, hereinafter referred to as respondents, have violated the provisions of said Act, and it appearing to the COlnmission that a proceeding by it in respect thereof would he in t.he public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. R.respondent State Blind Sales, Inc., is a corporation organized: existing and doing business under and by virtue of the laws of the Stale of Michigan, with its principal offce and place of business located at 2972 East Seven Mile Road in the City of Delroit SIale of :ilichigan, Respondent Norman ,V. Henson is an offcer of the corporate respondent. He formulates, directs a,nd controls the acts and prac tices of the corporate respondent, including the acts and praetiee, hereinafter set forth. His address is the same as that of corporate respondent, Respondent Philip I\. Dauvin, is an individual trading and doing business as State Blind Sales. lie is an a,gent of the corporate respondent and licensed to use the name of Stale Blind Sales by the corporate respondent. His offce and principal place of business STATE BLIND SALE' , L\TC. , ET AL. 2013 2012 Complaint is located "t 2108 Mount Vernon A venue in the City of Alexandria State of Virginia.

The aforesaid respondents cooperate and act together in carrying out the acts and practices hereinafter set forth. PAH. 2. Respondents are nO\v, and for some time last past have been, engaged in the advertising, oiIering for sale, sale and distribution of rugs, brooms, mops, and other miscellaneous household articles directly to the public and to distributors or jobbers for resale to the public, PAR. 3. In the COllrse a.nd conduct or their business, respondents 110\\ cause, and ror some time last past have caused, their said prodnets, when sold, to be shipped from their places or business in the States of :\Iichigan and Virginia to purchasers thereor located in various other states or the United States, and maintain, and at all t i118S mentioned herein lmve maintained, a substantial COllrse of trade in said products in commerce, as "co1111nerce" is defined in the Federal Trade Commission Act.

P AR. 4. In the COllrse and cand net or their businesses, and for the purpose or inducing the purchase or their products, respondents and their agents a,nd representatives have made certain statements and l'epl'e3entatlons with respect thereto in advertisements inserted in magazines, hand circulars, telephone solicitations, radio advertisements, and through other advertising media, of which the rollowing are typical:

State Blind Sales -- ------------ Lie No. 232 (picture of a man being led by a seeing-eye dog), Help Light The Way.

Your Purchase is Appreciated (picture of a blind man being led by a seeing. eye dog).

State Blind Sales.

T am callng -- u_-------- to take orders for household articles that blind people make, package or process.

Patronize your blind salesman.

Patronize your blind representative.

This is a message from State Blind Sales, a national sales organization dedicatedHelp toLightthe employmentThe Wayof blindF'O"and handicappedOthers " is State Blind Sales' slogan. You too can help light the "ay for others by placing an order "ith the State Blind Sales Representative who contacts you --- -------- At State Blind Sales, the blind and t.he bandicapped work to supply you "itb quality llcl'cI1l:nclise. Your patronage is essential to carryon this vital program. (Radio Commercial).

.\R. 5. By and through the use or the nforemcntioned statements and represelltatians inchl'cling respondents' use of the ,vord " blind" in Complaint 63 F, their corporate and trade names, and others of similar import and meaning not speeifical1y set out herein, respondents have represented directly or by implication, that:

1, Charitable or eleemosynary enterprises for the benefit of blind and handicapped persons are being conducted. 2, AU products produced, processed or packaged by the respondents are produced, processed or packaged by blind and handicapped persons.

3, Profits from the sale of products are used for the benefit of blind and handiea pped persons.

4, Only blind and handicapped persons are employed by the respondents, PAR, 6. In truth and in fact:

1. R.respondents' businesses are not charitable or eJeemosynary enter prises operated for the benefit of the blind or the lmndicapped but are comlIcrcial enterprises operated for the benefit of the respondents. 2. Many products produced, processed or packaged by the respondents are not produced, packaged or processed by blind or handicapped persons.

3. Profits from the sale of respondents' products are not used for the benefit of the blind or handicapped.

4, Respondents have employees who are not blind or handicapped, Therefore, the statements and representations as set forth in Paragraphs Four and Five hereof were and are false, misleading and deceptive, PAR. 7, By the aforesaid practices, respondents place in the hands of jobbers, reta.ilers, and salesmen, means and instrumentalities by and through which they ma.y mislead the public into the mistaken belief thfll the purchase of respondents' products ,vill inure to the benefit of bend or handicapped persons.

PAR. 8. In the conduct of their businesses, at all times mentioned herein, respondents have been in substantial competition, in emu. mcree, with corporations, firms and individuals in the sale of rugs brooms, mops, and other miscellaneous household articles of the same general kind t)"nd nature as that sold by respondents. PAR D, The use by respondents of the aforesaid false, misleading and deccptive stat.ements, representations and practices has h, and now has, the capacity.y and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that saiel st,atB- 11ent8 unci representations ,were find are true, and into the purchase of sl1bstantial quantity.ies of respondents' products by reason of said erroneous and mistaken belief.

STATE BLIND SALE.S" I::C. , ET AL. 2015 2012 Dec.isiol1 and Order \n. 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 competit.ion in commerce and unfair and deceptive acts and practices in commerce, in violation of Section 5 of the Federal Trade Conuuission Act.

DECISION AND Onder The Commisslon ha\Ting heretofore determined to issue its complaint cha.rging the respondents named in the caption hereof with violation of the Federal Trade Commission Act, and the respondents having been se.rved 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 agrecment 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 agremnent is for set.tlement. purposes only and does not cons6tute an admission by respon(lcnts that the Jft"' has been violate.d as set forth in such complaint, aml waivers and provisions as required by the Commission rules: and The Commission, having considered the agreement, he-reby accepts 3fune issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the fol- Jm,ing order:

1. Respondent State Blind Sales, Inc., is a corporation organized existing ancl doing business under and by virtue of the la\"s of the State of :.Iichigan, \"ith its offce and principal place of business Ioeatcd at 2D72 East Seven :Mile Road, in the c.ity of Detroit, State of :.lichigan.

Respondent Xorman ,V. Henson is an offcer or said corporation and his address is the same as that of said corporation. HeSpOll(lent Philip 1\: Dauvin, is an individual trading and doing business as State Blind Sales. He is an agent of the corporate respondent and licensed to use the name of State Blind Sales by the corpora,fe- respondent. lIis offce and principal place or business is Jocfttecl at, 21GB ?\Iount Vernon .ltvenue in the city or Alexnndria State, of Virginia.

2. The Federal Trade Commission has jurisdiction of the, subject matter of this proceeding a,ncl of the respondents, and the proceeding is in the public interest.

2016 FEDERAL TRADE COM:\:ISSION DECISIQXS Decision and Ordei' 63 F, ORDER It Vi ordered That respondents State Blind Sales, Inc" a corporation, nnd its oificers, and Norman ,Yo Henson, individual.lly and as an offcer of said corpomtion, and Philip I(, Dauvin, individmtlly and t.trading and doing business as State Blind Sales, and respondents' agents, representatives and employees, directly or through any corporate or other device, in connection with th8 oiferil1g for sale sale and distribution of rugs, brooms, Inops, or other miscellaneous ishousehold articles, or other products, in commerce, as "commerce" defined in the Federal Trade Commission Act, do fortlnvith cease and desist. from:

1. Representing, directly or by implication, that: a. A charitable or eleemosynaTY enterprise is being conducted for the benefit of the blind or the handicapped, b. Any product which is not produced, processed or packaged by a blind or handicapped person is produced, processed or paclmged by a blind or handicapped person. c. The profits from the sale of merchandise are used for the benefit of the blind or the handicapped. d. ani:' blind or handicapped persons arc employed; or that blind or handicapped persons ate employed, unless it is dearly and conspicuously disclosed in immediate connection and conjunction therewith the percentage of such blind or 11Rndicapped persons so employed.

2. Using the word "blincF or any other word or words of similar import or meaning in a corporate or trade name or in any other manner, to designate or describe merchandise, unless in imme.diate connection and conjunction therewith a clear nud conspicuous disclosure is made that a substantial percentage of merchandise sold or distributed by the respondents is produced, processed or packaged by other than blind persons. 3. Placing in the hands of jobbers, retailers, salesmen and others, the means and instrunwntalities by and through which Ole)' may mislead and deceive the purchasing public concerning Jnerchandise in the respects set out above. 1 t i8 fUTtheT oiYlm' That the respondents herein shoJI, ,,-within sixty (60) days after service upon t.hem of this order file with the Commis sian a report in ,writing setting forth jn c1etai) the manner and form in 'which they haxe complied 'sith this order. THE QUAKER OATS CO, 2017 Complaint