Pocket Books, Inc.

Text (OCR of the scan at left; may contain errors)

IN TIm TTEH OF POCKET BOOKS, IKC.

CONSENT Order, ETC. , I)l REGARD TO THE ALLEGED YIOI.JATION OF THE EDERAL TRADE C01lnnssIOX ACT Docket C-752. Complaint, June 196.q Deci.sion, Ju,ne 1!J64 Consent order requiring a Ne,y York City distriJJUtor of books and other publications, phonograph records, etc. , to cease representing falsely to delinquent customers that delinquent accounts wil be turned over to "'lhe :.IAIL ORDER CREDIT REPOR' II'G ASSOCIATION , INC." a hona fide collection agency, for collection, ami Cllstomers' credit ratings wil be adversely affected, if payments are not made.

POCKET BOOKS , INC. 897 896 Complaint 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 Commission, having reason to believe that Pocket Books, Inc. , a corporation, hereinafter referred to as respondent, has violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in thc public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondent Pocket Books, Inc., is a corporation organized, existing and doing business under and by virtue 01 the laws of the State of New York with its principal offce and place of business located at 630 Fifth A venue in the city of N ew York, State of New York.

PAR. 2. Respondent is now, and for some time last past has been engaged in the advertising, offering for sale, sale and distribution of books, publications, phonograph records and other merchandise to the general public.

PAR. 3. In the course and conduct of its business, respondent now causes, and for some time last pa,st has caused, its said books, publications, phonograph records and other merchandise, ,,,hen sold, to be shipped from its place of business and sources of supply in the State of New York to purchasers thereof located in thc various other States of the United States and in the District of Columbia, and maintaius and at all times mentioned herein has maintained, a substantial course of trade in said books, publications, phonograph records and other merchandise in commerce, as "commerce" js defined jn the Federal Trade Commission Act.

PAR. 4. In the course and conduct of its business, respondent through its Affliated Publishers Division, offers for sale to the general public certain.n phonograph records known as Golden R.ecords and Goldcn Record Library. Sales of said records are solicited through advertising disseminated in the United States mails. Said records are sold, shipped and payment made therefor through the United State., mails. Respondent sells said records throughout the l7united States.

For the purpose of inducing the payment of purportedly delinquent accounts t.hat have arisen from the sale or the aforesaid records respondent has made certain statements and representatjons in letters notices aud other materials sent through the United States mails to purportedly delinquent customers.

Typical, but not all inclusive of said statements and representations. are thc following:

.. .

Complaint 65 F.

a. On the letterhead of the "GOLDEX RECORD LIBRARY '" * '" PLEASE NOTE; Normally delinquent accounts are turned over a collection agency at the end of three months. lam instructing ,our accounting department to hold your account for another ten days be-fore taldng further aC4 tiOD, I do hope that you wil make it unnecessary for me to take such a drastic step. * '" '"

YOUR ACCOUNT IS BEING TURNED OVER TO A COLLECTION AGENCY L'NLESS WE HEAR FRO:\I YOU L\lMEDIATELY! L\lPORTAj\ LEGAL NOTICE Unless we bear from you ,vi thin the next ten days, your account wil be turned over to the Mail Credit Reporting Association which is a professional collection agency.Order If there is any question auaut the enclosed bil, you can Rave yourself 'and us; the embarrassment of settling the account through the collection agency by writng us immediately.

b. On the letterhead of:

THE MAIL CREDIT REPORTIl\G ASSOCIA:tion, INC., CREDIT REPORTS-SPECIAL I:\VESTIGATIO:\T COLLECTIONS. NE,V YORK J8ORDER We have been not.ified b.r one of our members, The Golden Record Library of your failure to pay a past-due account. A duplicate of their statement is en. closed. '.fhe.r have engaged us to take whatever legal steps are necessary to se. cure payment.

SECOND Notice A duplicatestat.ement ,of your account with The Golden Record Library is en. closed herewith. We have been instructed to take any necessary legal steps to effect collection.

Before we proceed further, we are giving you a final opportunity to make payment. Although the sum il1yol",ed is smaU it is our business to collect our client' s delinquent accounts regardless of size, and we are organized for this purpose. In the event of legal action, you may be aware that court costs and attorney fees must be paid by the person against whom judgment is rendered. Legal Reiton against you may result in considerable additional expense to .rou. If you doubt this statement, we suggest that you consult your own attorney. . . '"

PAR. 5. By and through the use of the aforesaid statements, representations and practices, and ot11ers of similar import not specifically set out herein, respondent represents and has rcprcsented that: a. If payment is not made, the delinquent Cllstomer s name is transmitted to a bona fide credit reporting agency with the result that the customer s general or public credit rating wil be adversely affected. b. " Tile MAIL CREDIT REPORTING ASSOCIATION, INC." is a separate, bona fide collection and credit reporting agency located in NewORDER York City.

POCKET BOOKS , INC. 899 Decision and Order c. Respondent has turned over to said " THE MAIL CREDIT RE- PORTING ASSOCIATION, I , the delinquent account of the customer forORDER collection and with instructions to institute suit or other legal action to conect amounts purportedly due.

d. The letters and notices on the letterhead of said "THE "AIL ORDER CREDIT REPORTING ASSOCIATIO:-, IXC.': have been prepared and mailed by said organization.

PAR. 6. In truth and in fact:

a. If payment is not made, the delinquent customer s name is not transmitted to a bona fide credit reporting agcncy and the customer general or public credit rating is not adversely aftected. b. "THE MAIL CREDIT REPORTING ,:ISSOCIATION , INC." is not aORDERseparate, bona fide collection agency or credit reporting agency. Said organization is a fictitious name utilized by respondent and others for the purpose of disseminating collection letters. c. Respondent has not turned over to said "THE MAIL CREDIT REPORTING ASSOCIATIO), INC. " the delinquent account of the customerOImER for collection and has not instructed said organization to institute suit or other legal action to eolJect amounts purportedly due. d. The letters and notices on the letterhead of the said "THE )fail ORDER CREDIT REPORTING ASSOCIATION, INC." have not been prepared and mailed by said organization. Said letters and notices have been prepared and mailed or caused to be mailed by respondent. Replies in response to said letters and notices are forwarded unopened to respondent.

Therefore, the statements and representations as set forth in paragraphs four and five hereof were and are false, misleading and deceptive.PAR. 7. The use by respondent 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 payment of substantial sums of money to respondent by reason of said erroneous and mistaken belief.

PAR. 8. The aforesaid acts and practices of respondent, as herein alleged, were and arc all to the prejudice and injury of the public and constituted, and 110\\ constitute, unfair and deceptive acts and practices in commerce, in violation of Section 5 of the Federal Trade Commission Act.

DECISION .AXD ORDER The Commission having heretofore determined to Issue its complaint chargjng the respondent !lamed in the caption hereof with 900 FEDERAL TRADE CQMMISSIOK DECISIO Decision ami Order 65 F, violation of the Federal Trade Commission Act, and the respondent 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 respondent and counsel for tbe Commission having thereafter executed an agreement containing a consent order, an admission by respondent 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 respondent 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 foliowing jurisdictional findings, and enters the following order:

1. Respondent Pocket Books, Inc., is a corporation organized exist ing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 630 Fifth Avenue, in the city of New York, State of New York. 2. The Federal Trade Commission has jurisdiction oT the subject matter of this proceeding and of thc respondent and the proceeding is in the public interest.

ORDER It ,is o1'lered That respondent Pocket Books, Inc., a corporation, and its offcers, and respondent's agents, representatives and employees directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of books, publications, phonograph records or other merchandise, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing directly or by implication that: 1. A customer s name wil be turned over to a bona fide credit reporting agency or that a cust.omer s general or public credit rating will be adversely affected unless respondent establishes that where payment is not received, the information of said delinquency is referred to a separate, bona fide credit reporting agency; 2. Delinquent accounts will be or have been turned over to a bona fide, sepa-rate collection agency illess respondent in fact turns such accounts over to such agencies;

3. Delinquent accounts have been or wiJJ be tnrned over to THE )'IAIL ORDER CREDIT REPORTING ASSOCIATION , INC." for coHection or any other purpose;

GROLIER E TERPRISES INC. 901 896 Syllabus , INC." any 4. "Tile )-fail ORDER CREDIT RJ PORTIXG ASSOCIATION other fictitious name, or any trade name owned in whole or in part by respondent or over which respondent exercises direction or control, is an independent, hona fide collection or credit reportmg agency;

5. a. Dclinquent accounts have been or will be turned over to THE 3fail ORDER CREDIT REPORTING ASSOCIATION, IXC. ' with instructions to institute snit or other legal action to collect amounts purportcdly dne;

b. Respondent intends to turn delinquent accounts over to any other organization, attorney or firm of attorneys, or person with instructions to institute suit or other legal.l action unless in fact at thc time such representation is made, respondent intends to take such a.ction;

c. Delinquent accounts have been turned over to any other organization, attorney, firm of attorneys or person with instructions to institute snit or othet legal action unless respondent establishes that such is t.he fact;

6. Letters, notices or other communications in connection with the collection or respondent' s accounts which have been prepared or originated by respondent have been prepared or originated by any other person, fii1n or agency.

It is further ordered That the respondent berein shall, within sixty (60) days after service upon it of this order, file with the Commission a report ill writing setting forth in data.il the manner and form in which it has complied with this order. Ix THE )IATTER OF GROLIER ENTERPRISES INC.

CONSENT ORDER, ETC., IN REGAUD TO 'rhe ALLEGED VIOLATION OF THE FED- ERAL TRADE COJ\HnssIOX ACT Jmw 1D64 Docket C-"i53. Complaint, June 11, 1964-Decision-, Consent order requiring a New York City distributor of books and other publications to cease representing falsely to purportedly delinquent customers that delinqucnt accounts wii be transferred to an attorney for colIecti011. ancl through the use on letterheads of the fictitious name "THE :\lail ORDER. CREDIT REPORTIKG ASSOCIATIO::r, IKC., " that past-due accounts have been referred to a separate agency of that name for collectioll. . . .

Gomplaint 65 F.

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 Commission, having reason to believe that Grolier Enterprises Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said Act, and it appearing to the 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 Grolier Enterprises Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal offce and place of business located at 845 Third Avenue in the city of New York, State of New York.

PAR. 2. Respondent is now, and for some time last past has been engaged in the advertising, offering for sale, sale and distribution of books, publications and other merchandise through the United States mails and by other means to the general public. PAR. 3. In the course and conduct of its business, respondent now causes and for some time last past has caused its said books, pnblications and other merchandise, when sold, to be shipped from its place of business in the State of New York to purchasers thereof located in various other States of the United States and in the District of Columbia, and maintains, and at all times mentioned herein has maintained a substantial course of trade in said books, publications and other merchandise in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 4. In the course and conduct of its business, respondent offers for sale, sens and distributes certain books and publications through the United States mails. Said merchandise is delivered and payment made therefor through the mails.

For the purpose of inducing payment of purportelily delinquent accounts that have arisen frolll the aforesaid transactions, respondent has made certain statements and representations in letters and materials sent through the mails to purportedly delinquent customers. Typical, but not all inclusive of said statements and representations are the following:

a. On the letterhead of Grolier Enterprises, Inc. Dear Customer:

We don t want to place your account with an attorney or collection agency. But, what are we to do? It is seriously overdue and our requests for payment remain ignored.

Legal work means added cost and you wil be liable for those costs. . .

GROLIER ENTERPRISES INC. 903 901 Complaint b. On another letterhead:

lhi" MAIL ORDER CREDIT REPORTING ASSOCIATION , INC. CREDIT REPORTS-COLLECTIONS NEW YORK 18, N.

We have been notified by one of our members, Grolier Enterprises, Inc., of your failure to pay a past-due account. . .

URGENT Your failure to settle ;your account leaves our client no choice but to take immediate action per our previous letters. ' , within fifteen days from this date, settlement in full has not been received our client has stated that they wil unconditionally turn your account over .to their attorneys with instructions to proceed with the necessary legal steps to enforce collection.

You realize, of course, that such action may result in court costs payable by you in addition to the amount due. .

PAR. 5. By and through the use of the aforesaid statements, repre. sentations and practices and others of similar import not specifically set out herein, respondent represents and has represented that: a. If payment is not made, the delinquent customer s account wil be transferred to an attorney ,with instructions to institute suit or take other legal steps to collect the outstanding amount due. b. "THE )fail ORDER CREDIT REPORTING ASSOCIA TION, INC." is a separate bona fide collection and credit reporting agency located in K ew York City.

c. Respondent has turned over to " T!-IE JUAIL ORDER CREDIT REPORTING ASSOCIATION , INC. , the delinquent account or the customer ror collection and other purposes.

d. If payment is not made, the customer s general or public credit I'ating ,,-il be adversely affected.

e. The letters on the letterhead.d or " THE MAIL CREIT REPORTING ASSOCIATION, INC." have been prepared and mailed by said organization.OIilER PAR. 6. In truth and in fact: a. If payment is not made, the delinquent customer s account is not transferred to an attorney to institute suit or other legal steps unless the amount of indebtedncss is substantial.

b. " Tile :MAIL OIWER CREDIT REI ORTIXG ASSOCIATION , IXQ." is not a se,parate bona fide collection agency or credit reporting agency. Said organization is a fictitious name utilized by respondent a.nd others for the purpose of disseminating collection letters. c. R.respondent has not turned over to "THE MAIL CREDIT' REORT- ING ASSOCIATION, INC." the delinquent account of the customer for col-ORDER lection or any other purpose. d. If payment is not made, the customer s general or public credit rating is not adversely affected.

e. The letters on the letterheads of "THE MAIL CREIT REPORTING ASSOCIATIO:V, n, " have not been prepared a,nd mailed by said organ i-ORDER Decision and Ordr 65 F.

zation. Said letters and notices have been prepared and mailed or caused to be mailed by respondent. Replies in response to said letters and notices are forwarded unopened to respondent. Thorefore, the statements and representations as set forth in Paragraphs Four and Five hereof were and arc false, misleading and deceptive.

PAR. 7. Thc use by respondent of the aforesaid false, misleading and deceptive statements, representations and practices ha.s had, and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statement.s and representations were and are true and into the pa:y:ment of substantial sums of money to respondent by reason of said erroneous and mistaken belief.

PAR. 8. TI,e aforesaid acts and practices of respondent, as herein alleged, were and are all to the prejudice and injury of tbe public and constituted, and now constitute, unfair and deceptive acts and practices in commerce, in violation of Section 5 of the Federal Trade Commission Act.

DECISION AXD Onder The Commission having heretofore determined to issue its complaint charging the respondent named :in the caption hereof with violation of the Federal Trade Commission Act, and the respondent having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, togcthcr with a proposed form of order; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondent of an 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 respondent 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 c.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 Grolier Enterprises Inc., is a corporate.ion organized existing and doing business under and by virtue of the laws of the State of :New York, with its principal offce and place of business located at 845 Third Avenue, in the city of Ncw York, State of New York.

GROLIEH E TERPRISES INC. 905 901 Decision and Order 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent and the proceeding is in the public interest.

ORDER It is ordered That respondent, Grolier Enterprises Inc., a corporation and its offcers, agents, representatives and employees, Successors or a,ssigns, directly or through any corporate or other device, in conne.etion with the offering for sale, sale or distribution of books, publications or other merchandise, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by inlplication that: 1. Delinquent accounts wii be turned over to an attorney to institute suit or ot.her legal action where payment is not made, un- Jess respondent cstablishes that such is the fact; 2. (a) Delinquent accounts win be turned over to a bona fide separate collection agency for collection unless respondent establishes that a prior determination had been made in good faith to make such referral;

(b) Delinquent accounts have been turned over to a bona fide, separate collection agency for collection unless respondent cstablishes that such is the fact;

3. Delinquent accounts have been turned over to "THE MAIL ORDER CREDIT REPOR'I'ING ASSOCIATION INC. " for collection or any other purpose;

4. "THE MAIL CREDIT Importing ASSOCIATION, INC. , any other fictitious name, or any trade name o\vned in \whole or inORDEH part by respondent or over which respondent exercises any direction or control, is an independent bona fide co1Jection or credit reporting agency;

5. A customer s name will be or has been turned over to a bona fide credit reporting agency or that a custom, s general or public credit rating wii be adversely affected, unless respondent establishes that where payment is not received, the information of said delinquency is referred to a separate, bona fide credit reporting agency;

6. Letters, notices or other communications which have been prepared or originated by respondent have been prepared or originated by any other person, firm or corporation. It i8 fw.ther ordered That the respondent herein shah, within sixty (60) days after service upon it of this order, file with the Commission a report. in writing setting forth in dt ail the manner and form jn which ithas complied with this order.

313-121--70-- 906 FEDERAL TRADE COM:IISSION DECISIONS Complaint 65 F.

IN THE MATT THE CO DE NAST PUBLICATIONS INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF FEERAL TRDE COj\j\IISSIOX ACT Docl et 754. Complaint, June 11, 1964-Decision, June, 1964 Consent order requiring a 1\ ew York City distributor of "Glamour" and "House and Garden" magazines to the public to cease representing falsely to purportedly delinquent customers OD letterheads of the fictitious name "THE MAIL ORDER CREDIT REPORTING ASSOCIATION, INC. . that delinquent accounts had been turned over to an independent coneetion agency of that name with instructions to take legal action and that the customer credit rating would be adversely affected if payment was not made. COj\IPLAIXT 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 The Conde N ast Publications Inc., a corporation, hereinafter referred to as respondent has violated the provisions of said Act, and it appearing to the 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:

PARAGR=H 1. Respondent Thc Conde Kast Publications Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal offce and place of business at 420 Lexington Avenue in the city of New York State of New York.

PAR. 2. Respondent is now, and for some time last pa.st has been engaged in the advertising, offering for sale and sale of "Glamour and "House and Garden" magazines and other merchandise to the general public by and through the United States mails. PAR. 3. In the course and conduct of its business, respondent now causes and for some time last past has caused its said magazines and merchandise, when sold, to be shipped from its place of business and sources of supply in the States of N cw Y Olk and Connecticut to purchasers thereof located in various other States of the United States and in the District of Columbia, and maintains and at all times mentioned herein has maintained a substantial course of trade in said magazines and merchandise in commerce, as "commerce" is defined in the Federal Trade Commission Act.

THE CONDE NAST Publications mc. 907 906 Complaint PAR. 4. In the course and conduct of its business and for the purpose of inducing the payment of purportedly delinquent accounts that have arisen from the sale of subscriptions to the aforesaid magazines, respondent has engaged in the practice of disseminating certain correspondence on the letterhead of "THE fully ORDER CREDIT REPORTING AS- SOCIATION, INC. " of New York. In said correspondence, respondent has made certain statements and representations for the purpose of induc ing payment of the purportedly delinquent accounts. Typical, but not all inclusive of the statements and representations are the following:

THE MAIL CREDIT REPORTING ASSOCIATION , I1\C., CREDIT REPORTS-COLLECTIOXSORDER NEW YORK 18, NY. We have been notifed that one of our members, House & Garden, Incorporat. ing Living For Young Homemakers, of your failure to pay a past-due account for a subscription to this magazine which you ordered some time ago, A duplicate of their statement is enclosed. They have engaged us to take whatever steps are necessary to secure payment.

SECOND NOTICE .A duplicate statement of our account with House & Garden, Incorporating Living For Young Homemakers is enclosed herewith. We have been instructed to take any necessary steps to effect collection. '" '" .. We are giving you a final opportunity to make payment. Although the sum involved is small, it is our business to collect our clients' delinquent accounts regardless of size, and we are organized for this purpose. In the event that House & Garden takes legal action you may not be aware that court costs and legal fees must be paid by the person against whom judgment is rendered. Legal action against you may result in considerable additional expense to you. If you doubt this statement we suggest that you consult your own attorney. .. .. '" FIKAL KOTICE Your account with Bouse & Garden Incorporating Living For Young Homemakers was turned over to us sometime ago for collection. .. * his is the last request for payment which \ve shall send. " .. " PAl. 5. By and through the use of the aforesaid statements, representations and practices and others of similar import not specifically set out herein, respondent has represented, directly or by implication that:

( a) "THE MAIL CREDIT REORTING ASSOCIATION , INC." is a separate bona fide collection and credit reporting agency in New YorkORDER City.

(b) Respondent has turned over to "THE MAIL CREDIT REI' ORT- ING ASSOCIATION, INC." the delinquent account of the customer for col-ORDER lection and with instructions to institute suit or take other legal action to conect the amount purportdly due.

Decision and Order 65 F.

(c) If payment is not made, the customer s general or public credit rating wjJ be adversely affected.

(d) The letters on the letterhead of "THE MAIL CREDIT REPORT- ING ASSOCIATION, INC." have been prepared and mailed by saidORDER organization.

PAR. 6. In truth and in fact:

(a) "THE MAIL ORDER CREDIT REPORTING ASSOCIATION is not a separate bona fide collection agency or credit reporting agency. Said organization is a fictitious name utilized by respondent and others for purposes of disseminating collection letters. (b) Respondent has not turned over to " THE MAIL CREDIT REI'OHTIXG ASSOCIATro:s, INC. " the delinquent account of the customerORDER for conection or any other purpose and has not instructed said organization to institute suit or take other legal action or collect the amount purportedly due.

(c) If payment is not made, the customer s general or public credit rating is not adversely affected.

( d) The letters on the letterhead of "THE )fail ORDER CREDIT Rerort- D10 ASSOCIATION, INC." have not been prepared and mailed by said organization. Said letters have been prepared and mailed or caused to be mailed by respondent.

Replies in response to said letters and notices are forwarded un. opened to respondent.

Therefore, the statements, representations and pra,ctices as set forth in Paragraphs Four and Five hereof were and are false, misleading and deccptive.

PAR. 7. The nse by respondent 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 payment of substantial sums of rnoncy to respondent by reason of said erroneous and mistaken belief.

PAR. 8. The aforesaid acts and practices of respondent., as herein alleged, were and are a11 to the prejudice and injury of the public and constituted, and now constitute unfair and deceptive acts and practices in commerce, in violation of Section 5 of the Federal Trade Commission Act.

DECJSIOX AND ORDER The Commission having heretofore determined to issue its complaint charging the respondent named in the caption hereof with violation THE DE KAST PUBLICATION::S INC. 909 906 Det"sion and Order of the Federal Trade Commission Act, and the respondent having been served with notice of said determination and with a copy of the eomphtint thc Commission intended to issue, together with a proposed form of order; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondent of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for set. tlement purposes only and does not constitute an admission by respondent 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 following jurisdictional findings, and enters the following order:

1. Respondent The Conde II ast Publications Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal offce and place of bus ness located at 420 Lexington A venue, in the city of X ew York, State of Xew York.

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

ORDER It is OJ'dered That The Conde Nast Publications Inc., a corporation and its offcers, agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of magazines or other merchandise in commerce, as "commerce" is defined in the Federal Trade Commission Act do forthwith cease and desist from representing directly or by implication that:

1. THE MAI ORDER CREDIT REPORTING ASSOCIATION , 1KC. " any fictitious name, or any trade name over which respondent exercises any direction or control, is an independent, bona fide collection or credit reporting agency;

2. Delinquent accounts have been or will be turned over to THE MAIl. ORDER CREDIT HEI ORTIXG -\SSOCIATIOX, INC.:' with instructions to institute suit or take other legal action to collect amounts purportedly due; or that any accounts have been or will be turned over to any organization, attorney, firm of attorneys, or person with instructions to institute suit or other legal action unless respondent establishes that such is thc fact; 910 FEDERAL TRADE CQ:\MISSION DECISIONS Complaint 65 F.

3. Delinquent accounts have been or wil be turned over to THEMAIl. ORDERCREDITREPORTINGASSOCIATION .. for collection or any other purpose;

4. A customer s name has been turned over to a bona fide credit reporting agency or that a customer s general or public credit rating wil be adversely affected unless respondent establishes that where payment is not received, the information of said delinquency is referred to a bona fide credit reporting agency; 5. Delinquent accounts have been turned over to a bona fide separate collection agency for conection or any other purpose unless respondent in fact has turned such accounts over to such agenCles.

6. Letters, notices or other communications in c01mectiol1 with the collection of respondent' s accounts which have been prepared or originated by respondent, have been prepared or originated by any other person, firm or agency;

Provided, however That the words "agents" and "representatives" as used herein in the preamble to the numbered provisions of the order shall not be deemed to include a bona fide and independent collection agency or attorney.

It;" f"rther ordered That the respondent herein shall, within sixty (60) days after service upon it of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which it has complied wit.h this order.