Golden Press, Inc.

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IN THE jlU'IER OF GOLDEN PRESS, INC.

CONSENT ORDER , :E'1O., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO D(lssion ACT Docket G 751. Complaint, June 196-4-Decisfon, June, 1964 Consent order requiring l\vew York City distributnrs of books and other merchandise to the public to cease representing falsely to purportedly delinquent customers that if payment was not made, their name would be referred to a bona :fde credit reporting agency and the customer s credit rating would be adversely affected; and, through use on letterheads of the fictitious "THE )'IAIT.I ORDER CREDIT REPOR'l' ING ASSOCIATION, INC. , that an intlevenclent collection agency of that name was handling the account. CO:l\PLAINT 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 Golden Press, Inc. a corporation, he.reinafter rererred to as respondent, has violated the provisions of said Act, and it appearing to the Commission that proceeding by it in respect thereof would be in the public interest hereby issues its complaint stating its charges in that respect as follows:

PARAGRAI'H 1. Respondent Golden Press, Inc., is a corporation organized, existing and doing business under and by virtue of the la.ws or the State or New Yark with its principal offce and place or business located at 850 Third A venue, in the city of S ew York, State of New York.

PAR. 2. R.respondent is now, and for some time last past has been engaged in the advertising, offering for sale, sale and distribution of books and other merchandise to the general pubhc. PAR. 3. In the course and conduct or its business, respondent now causes, and for some time last past has caused, its said books and other merchandise, when sold, to be shipped from its places or business and sources of supply in the State of New York to purchasers thereof located in the various other States of the United States and in the District or Col umbia, and maintains, and a t all times mentioned herein has maintained, a substantial course or trade in said books and other morchandise in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 4. In the course and conduct of its business, respondent offers certain books and other merchandise for sale through the United , , GOLDEN PRESS, INC. 921 920 Complaint States mails. Said books are sold, shipped and payment made therefor through the l;united States mails.

For the purpose of inducing the payment of purportedly delinquent accounts that have arisen from the sale of the aforesaid books and other merchandise, respondent has made certain statements and representations in letters and other notices sent through the l;united States mails to purportedly delinquent customers through the United States. Typical, but not a.ll inclusive of said statements and representations are the following:

a. On the Jetterhead: "" GOLDEN PRESS INC. Dear Subscl"iber:

We extended you credit-the amount is small. We would appreciate it if you would send us your check now.

This wil relieve you of an ,obligation and it wil keep your credit in good standing. * * * e have reminded you several times and asked you to send us your check for the fimount shown on the attached invoice. I know you wil want to keep your credit in go.od standing. * * , DJPORTANT Deur Customer:

More thRn h\'o months ago, ,ve mated 'you an attraciiYe book with the understanding that yon would either return the book within two weeks or else pay a special reduced price.

But despite the fact that we have sent yDU four notices, we have not received any payment from you. PLEASE KOTE: Normally delinquent accounts are turned overI/to a collection agency at the end of three months. I am instructing our accounting department to hold ;rour account for another ten days before taking further action. I do bope that you wil make it unnecessary for me to take such a drastic step. * '" '" '" " " Unless we hear from you within the next ten days, your account wii be turnNl over to the Mail Credit Reporting Association which -is a professional collection agency. .. .. *Order b. On the letterhead:

THE llAII, ORDER OREDIT REPORTING ASSOCIATIOl\, INC. CREDIT REPORTS-COLLECTION:\S NE'V YORK IS , N.

We have been notified by one of our members, GOLDEN PRESS. of your failure to pay a prist-rlue account.

IMJIBDL1TE ACTION REQUIRED 'Ve arc giving y,ou a final opportunity to make payment. Although the sum is small, it is our business to collect our client' s delinquent accounts regardless of size. * * "

PAR. 5. By and through the use of the aforesaid st.atements, rep resentations and practices and others of similar import not specifically set out herein, respondent represents and has represented that: 313-121 70- 922 FEDERAL TRADE COMMISSIOK DECISIOKS Complaint 65 F.

a. If payment is not mnc1e, the delinquent customer s name is transmitted to a bona fide credit reporting agency "\with the result that the customer s gene rill or public credit rating wi1J be ach-ersely affected. b. " THE ::I..IL ORDER CREDIT REPORTING ASSOCL\Tlon, IXC. " is it sepa.rate" bona, fide collection and credit reporting agency located in New York City.

e. Respondent has turned over to "THE ::L\IL Order. CREDIT REPORTING ASSOCIATIO:V 1KO; the delinquent account of the cllstomer for collection and other purposes.

d. The letters and no6ces on the letterhead of "THE MAIL CREDIT REPORTING ASSOCIATION , I:\-'C.' have been prepared and mailed by saidORDER organization. P-'K 6. In truth and in fact:

. If pa.yment is not made, the. delinquent customer s name is not transmitted to a bona fide credit reporting agency and the c-ustorner general or public. c.redit rating is not. adve.rsely aH'eeted. b. "THE 3L\IL ORDER CREDIT REPORTING ASSOCL\TION , JKC. is not a separate, bona, fide collection or credit reporting agency. Said organization is a fictitious name utilized by respondent and others for the purpose of disseminating coJJectioll Jetters.

e. Hesponclellt has not, turned oyer to "THE )1.111, ORDER CREDIT REPORT- ING ASSOCL\TION , INC." the cle.linquent accoullt of the customer for collection or any purpose.

d. The letters and notices on the lette,rhead of "THE :;L\IL onder CHEDlT REPORTING ASSOCIATION , I::T ': have not been prepared and mailed by said organizat.ion. Said letters and notices have been prepared and mailed or caused to be ma.filed by respondent. Replies in response to said lett.ers and notices are forwarded unopened to respondent. Therefore, the statements and repres( ntations as set forth in Paragra.phs FOllr and Five here,of were and are false, misleading and (leccptive.

PAR. 7, The use by respondent. of the aforesaid false, misleading and deceptive stfltcments, representations and practices lias had, and now ha.s, the capacity and tendency.y to mislead members of the purchasing public into the erroneous an(1 mistaken belief that said statements and representations "\y('re and are true and into the pa:yment of substanti,ll sums of money to respondent by reason of mid erroneous a.nd mistaken belie.f PM't. 8. The aforesaid acts and prnct. iccs of respondent, are herein alleg-ed, were and are all to the prejudice and injury of the public and C'onstituted, and now constitute, unfair and c1ccepti ,-e acts and prac.tices in commerce, in violation of Section;) of the Fedentl Trade Commission Act.

GOLDEN PRESS, IXC. 923 920 Decision and Order DECISION A:ND Onion The Federal Trade Commission ha,ving initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter \\'ith a copy of a draft of complaint w-l1ich the Bureau of Deceptive Practices proposed to present to the Commission for its consideration and , vi'ould charge respondent -withwhich, if issued by the Commis ion violation or the, Federal Trade Commission Act; and The respondent and counsel for the Commission having thel'8after executed an agreement containing a consent order, an admission by the respondent of an the juriEclictionaI facts set forth in the afore5aicl dra.ft of complaint, a statement that the. sig11ing of said agreement is for se.ttlelnent purposes only and does not constitute an adlnission by the respondent that the hw has been violated as alJe.gecl in such c.oll plaint, and waivers and provisions as reqnircd by the, Commission rules; and The COlrunissian, having rea on to believe tha.t the respondent ha.s vialated the Federa.l Trade Commission Act, a.nd having cleterm.inecl that cOlnpla.int should issue stating its charges in that respect, hereby issues its complaint, accepts said agreement, makes the following jurisdictional findings and enters t1H following order: 1. Golden Press, lnc., is a corporation .organized, existing and doing business under and by virtue .of the laws .of the State of New York with its prine-ipal .office and place .of business located at 850 3rd Avenue, in the city of J' ew York, State of X ew York. 2. The Federal Trade Commission has jurisdictian .of t.he subject matter .of this proceeding and of the respondent, and the proceeding is in the public interest.

.order It is ordered That. respondent Golden Prese, Inc., a corparatian and its offcers, agents, representatives and employees, directly or through any corporate .or other device, in col1neetiol1 ,-dth the Dft'el" ing far sale., sale, OJ' distribution of books or other merc.handise commerce, as "commerce" is defined in t11e Federal Trade Commiesion Act, da forthwith cease and desist from representing directly Dr by implication that:

1. A customer s name will be turned over to a bona fide credit reporting agency.y or that a customer s general .or public credit rating ,,,iij be a(1versely affected nnJes8 resvmc1ent establishes that where pnyrnel1t is not. received, the information .of said delin- 924 FEDERAL TRADE COM;viission DECISIONS Complaint 65 F.

quency IS referred to a separate, bona fide credit reporting agency;

2. Delinquent accounts will be or have been turned over to a bona fide, separate collection agency unless respondent in fact turns such accounts over to such agencies;

3. Delinquent a.accounts ha.ve been or will be turned over to "THE MAI ORDER CREIT REORTING ASSOOIATION, INC. " for coll tion or any other purpose;

4. "THE MAIL CREDIT REPORTING ASSOCIATION , INC. , any other fictitious name, or any trade namo mvned in whole or in partORDER by respondent or over which respondent exercises direction or control, is an independent, bona fide collection or credit reporting agency;

5. Letters, notices or other cOlnn1unications in connection with the collection of respondent' s accounts which have been prepared or originated by respondent have been prepared or originated by ny other person, firm or agency.

It i8 tw,ther ordered That the respondent herein shall, within sixty (60) c1aysafter 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 with this order.