Supreme Freezer Meats, Inc

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IN THE jVL\TTER OF SUPREl\fE FREEZER l\IEATS, IXC., ET AL.

ORDER, ETC., IN REGARD TO TI-IE ALLEGED nola TION OF THE FEDERAL TRADE CWDIISSIOX "\C1' Docket 87' 53. Complaint, Dec. 1:? lD6i-Dccision, JJ(f!l29 1968 Order requiring- a Seekonk, l\Iass., di:,-:trillutor of beef and other mea t products to cease using bait advertising and misrepresenting the quality of its .beef and other foods, SUPREME FREEZER MEATS, INC., ET AL. 991 ~90 Complaint COUPLAINT 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 Supreme Freezer NIeats, Inc., a corporation, and ~laynard ~leyer, individually and as an officer of said corporation, hereinafter referred to as respondents have 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 PAR...WRAPH 1. Respondent Supreme Freezer ~leats, Inc., is a cor- follo'\Ys:poration duly organized, existing and doing business under and by virtue of the laws of the State of Rhode Island, with its principal office and place of business located at 1408 Fall Hives' Avenue, in the city of Seekonk, in the State of :Massachusetts. Respondent :Maynard ~leyer is an individual and an officer of the corporate respondent. He formulates, directs and controls the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His address is 54 ~larianne Drive, in the city of Bridgewater, in the CommOlnyealth of :Massachusetts. PAn. 2. Respondents are now, and for some. time last past have been engaged in the advertising, offering for sale, sale and distribution of beef and other meat products ,,-which come within the classifieation of food as the term "food" is defined in the Federal Trade Commission Act. to members of the purchasing public.

PAR. 3. In the course and conduct of their business, respondents have disseminated and caused the dissemination of certain advertise. ments by the United States mails and by various means in commerce as "commerce" is defined in the Federal Trade Commission Act, including advertisements in daily newspapers for the purpose of inducing and which were likely to induce, directly or indirectly, the purchase of food, as the term "food" is defined in the Federal Trade Commission Act; and have disseminated and caused the dissemination of ach-ertisements by various means, including those aforesaid, for the purpose of inducing, and \which were likely to induce, directly or indirectly, the purchase of food in commerce, as "commerce" is defined in the Federal Trade Commission Act.

-\R. 4. Typical of the statements appearing in the newspaper advertisements disseminated as aforesaid are the following: (The Pawtucket Times, Tuesday, July 12, 1966. :;: p . .

Complain t 173 F. '1'. (Reln' e:-:entation of a blnck steer indicating the yarious portions of t.he animal from which are obtained yarious cuts of meat, including roasts, sirloin steaks and other prime euts of meat.) Tender, delicious. aged. grain feel, Black Angus beef halws, 27(' a pound. Tender, delicious, grain fed Bl:wk Angu:-: beef hinds, 31i a pound. (The Proyic1enee Sunday .Jo11lnal. .July 31. IH66. Beef Charge It Sale, Tender, delieious, 11E'ay~' 'Ye!'tel'nlwef halyes, 30~:. a pound. Tender, delicious, heayy 'Vestern beef hinds, -!If a pound, (Providence Sundny Journal TY 'Yeekly. July 17 , 1!)6G. ATTE~TION: Because of the tremendous res110nse GRAND OPENING SALE: will be COlltinued (Representation of Blaek steer surrounded by prime cuts of meat) , ender, delicious, aged, grain fed, Black Angus beef halves. 27 ~ a pound, Tender, delicioui::, grain fed Blaek Angus beef hinds, 31(: a pound. In their achertisements the respondents prominently feature a picgood cut of meat. The picture ofture of a steer or aT-bone or other the steer frequently has dotted lines on it purporting to show the parts of the animal from which the various cuts of meat are obtained. In addition to the foregoing, the respondents' representatives, agents and employees represent to prospective purchasers of the advertised meat that there is a lot of fat and ,yaste on such meat, that the animore fatmals are force-fed and kept in pens and that this results in and ,,-aste, than other, more expensive meats, ,which are not advertised less fatare reany cheaper than the achertised meats because there is and ,yaste and you get more mea PAn. 5. Through the use of the aforesaid ad,-ertisements and others of similar import and meaning, not specifically set out herein, respondents hate represented, directly and by implication: 1. That the oft' er to sen beef at 27, 31, 39 and 49 cents per pound is a bona. fide offer to sell merchandise at these prices. 2. That the beef offered at the prices aforesaid is tender, delicious, a2:ec1. Ql'ain fed and hea,'y "estern beef. 3. That the beef o:tlered at the prices aforesaid consists primarily of quality cuts of beef.sirloin, T -bone, porterhouse, roasts anci other top 4. That the beef oftered in said achertisell1ents comes primarily from the carcass of that breed of cattle kno\',n as Black Angus. \H. fi, In truth and in fact 1. The offer to sell beef at 27, 31, 39 and 49 cents per pound is not a.. bona fide offer but, on the contrary, is made for the purpose. of inducing the public to come to respondents' places of business. ",Vhen CU8- SUPREME FREEZER MEATS , INC. , ET AL, 993 990' Initial Decision tomeI'S respond and go to said place of business~ respondents' employees and representatives point out to said customers that there will be an excessive ,veight loss in trimming and cutting said beef and other- ,vise disparage the beef offered at the prices aforesaid and attempt to and usually do, sell beef at higher prices to said customers. 2. The beef offered at 27, 31 39 and 49 cents per pound is not tender delicious, aged, grain fed or heavy ",estern beef. it is instead ungraded cow beef, largely fat and waste.

3. The beef oftered at the prices aforesaid does not consist primarily of sirloin, T-bone, porterhouse, roasts or other top quality cuts of bee.f, rather the major portion of the meat is hamburger, chuck and flank. Any steaks or roasts obtained are of poor quality and bear considerable fat.

4. The beef offered in said advertisement does not come primarily from the breed of cattle known as Black Angus. Therefore, the advertisements referred to in Paragraph Five were and are, misleading in material respects and constituted and now constitute ::false achertisements" as that term is defined in the Federal Trade Commission Act.

\R. 7. The use by respondents of the aforesaid false, misleading and deceptive statements, representations and practices has had and nO\, has the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements and representations ,were, nJld are true and into the purchase of substantial quantities of respondents' product by reason of said erroneous and mistaken belief.

PAR. 8. The dissemination by respondents of the false advertise- Inents, as aforesaid, constituted and now constitutes, unfair and deceptive acts and practices in commerce. in violation of Sections 5 and of the Federal Trade Commission Act.

.ill?' . 1YilUam J. I(euy supporting the complaint.. No appearance for respondents.

Ii-TITIAL DECISION BY ELDON P. SCHRUP, HEARING EXA3IINER FEBRUARY 1 G , 1 9 G 8 STATElUENT OF PROCEEDINGS The Federal Trade Commission on December 12~ 1967, issued its complaint charging the respondents with unfair and deceptive acts ftnd practices in commerce in violation of Sections 5 and 12 of the Fe.d- 994 FEDERAL TRADE CO:\IMISSION DECISIONS Initial Decision Ji3 F. eral Trade Commission Act. The notice of the complaint set the hearing date for 10 a. , January 30, 1968, at the Federal Trade Commission Offices, The 1101 Building, 11th Street and Pennsyh-ania Avenue N,Y., ,Yashington, D.

The docket file shows that respondents \There duly selTed but failed to file answer as required under Section 3. 12 of the Federal Trade Commission Rules of Practice, subsection 2 (c) Defa:uZt. Respondents further failed, to appear at the hearing set in the notice of the complaint. Subsection :2 (c) Default states, that failure of the respondent to file an ans',el' \Tithin the time provided shall be deemed to constitute a "aiveI' of his right to appeal' and contest. the allegations of the complaint and to authorize the hearing examiner, "without further notice to the respondent, to find the facts to be as alleged in the complaint and to enter an initial decision containing such findings appropriate conclusions, and order.

FINDINGS OF FACT 1. Respondent Supreme Freezer :JIents, Inc., is a corporation Chlly organized, existing and doing business under and by virtue of the la"s of the State of Rhode Island, with its principal.l office and place of business located at 1-108 Fall River .. xenue, in the city of Seekonk in the State of ~lassachuse.tts.

Re~pondent ~Iaynard jIeyel' is an indi,-idual and an ofticer of the, corporate, respondent. I-Ie formulates, directs and controls the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His address is 54 :Marianne Drive, in the city of Bridgewate.r, in the Commonwealth of l\1:assachusetts. 2. Respondents are no", and for some time last past have been. engaged in the advertising, offering for sale, sale and distribution of beef nd other meat products ,which come "within the classification of food as the term "food" is defined in the Federal Trade Commission Act to members of the purchasing public, 3. In the course and conduct of their business. respondents have clisseminated and caused the dissemination of certain acb-ertisements by the United States mails and by various means in commerce, as ';comme.lce. " is defined in the Federal Trade. Commission Act, including advertisements in daily ne,yspa pens for the purpose of inducing and which were likely to induce, directly or indirectly, the purchase, of food, as the term "food" is defined in the Federal Trade Commission Act: and have disseminated and caused the dissemination of advertisements by various means, including those aforesaid, for the purpose of inducing, and ,,-hieh ,,-ere likely to induce, directly or indirectly, the purchase of food in CO1l111lerCe, as "comnlerce" is defined in the Federal Trade Commission Act.

::::: :::: :::::: :::::: ::: (j: ...... SUPREME FREEZER MEATS, INC. , ET AL. 995 990' Ini tial Decision 4. Typical of the statements appearing in the newspaper advertisements disseminated as aforesaid are the following: (The Pawtucket Times, Tuesday, July 12, 1966. (Representation of a black steer indicating the various portions of the animal from which are obtained various cuts of meat, including roasts, sirloin steaks and other prime cuts of mea t.

Tender, delicious, aged, grain fed, Black Angus beef hal,"es, 27 a pound. Tender, delicious, grain fed Black Angus beef hinds, 31~ 11 pound. (The Providence Sunday Journal, July 31 1966. Beef Charge It Sale.

Tender, delicious, beaty 'Western beef hal\"es, 391 a pound, Tender, delicious, heavy 'Western beef hinds, 419 a pound. (Providence Sunday Journal TV 1Veekly, July 17 1966. ATTENTION: Because of the tremendous response GRAND OPENING SALE ,dll be continued (Representation of Black steer surrounded by prime cuts of meat) .

Tender, delicious, aged, grain fed. Black Angus beef halves, 27~ a pound. Tender, delicious, grain fed Black Angus beef hinds, 31~ a pound. In their advertisements the respondents prominently. feature a picture of a steel' 01' a T-bone or other good cut of meat. The picture of the steer frequently has dottec1lines on it purporting to show the parts of the animal from "\which the ntrions cuts of meat are obtained. In addition to the foregoing, the respondents' representatives agents and employees represent to prospective purchasers of the advertised meat that there is a lot of fat and waste on such meat, that the animals are force-fed and kept in pens and that this results in more fat and "\Yflste, that other, more expe.nsive meats, which are not advertised, are really cheaper than the advertised meats because there is less fat and "\yaste and YOU Q:et more meat.

5. Through the use of the aforesaid advertisements and others of similar import and meaning, not specificftlly set out herein, respondents have represented, directly and my implication: L..!:9 cents pel' pound 1. That the offer to sell beef at 27, 31 , 39 and is a bona, fide, ofrer to sell merchandise at these price,;. 2. That the beef offered at. the prices aforesaid is tender, delicious aged, grain feel and heavy ,,-estern beef.

3. That the beef offered at the prices a.foresaid consists prima,rily of sirloin, T-bone, porterhOllse, roasts and other top quality cuts OI 4. That the beef offered in sfticl advertisements comes primarilybeef.from the carcass of that breed of cattle known as Black Angus. Initial Decision 73 F.

6. In truth and in fact 1. The. offer to sell beef at 27, 31, 39 and 49 cents per pound is not a bona fide offer but, on the contrary, is made for the purpose of inclueing the public to come to respondents' places of business. ,Yhen customers respond and go to saidplac.e of business, respondents' employees and representatives point out to said customers that there ,,-ill be an excessive weight loss in trimming and cutting said beef and otherwise disparage the beef offered at the prices aforesaid and attempt to, and usually do, sell beef at higher prices to saiel customers. 2. The beef offered at 27, 31, 39 and 49 cents per pound is not tender, delic.ious, aged, grain fed or heavy western beef; it is instead ungraded CO" beef, largely fat and waste, 3. The beef offered at the prices aforesaid does not consist primarily of sirloin, T-bone, roasts, porterhouse, or other top quality cuts of beef, rather the major portion of the meat is hamlmrger, chuck and flank. Any steaks 01' roasts obtained are. of poor quality and bear considerable fat.

4. The beef offered in said advertisement does not come primarily from the breed of cattle kno\yn as Black Angus. Therefore, the ad'certisements referred to in Finding 5 "ere and are misleading in material respects and constituted and now constitute false advertisements" as that term is defined in the Federal Trade Commission Act.

7. The use by respondents of the aforesaid false, misleading and deceptive statements, representations and practices has had and now has the capacity and tendency to misleadmem'bers of the purchasing public. into the erroneous and mistaken belief that said statements and representations were and are true and into the purchase of substantial quantities of respondents' product. by reason of said erroneous and mistaken belief.

CONCLUSIONS jurisdiction of the subject 1. The Federal Trade Commission has 111,1 tter of this proceeding and over the respondents. :2. The complaint. herein states a cause of action and the proceeding is in the public interest.

3. The afore.said acts and practices of the respondents as found in the foregoing Findings of Fact were and are to the prejudice and injury of the public, and constituted and now constitute, unfair and of Sections 5 deeepti ,-e. acts and practices in commerce in violation and 1:2 of the Federal Trade Commission Act. . .

SUPREME FHEEZEH J\lEA'fS. INC.. ET AL. 997 990' Initial Decision ORDER It is ordei' That respondents Supreme. Freezer ~Ieats, Inc. , ,1, corporation, and its officers, and ~laynard .Jleyer, individually and , an officer of said corporation, and respondents' agents, representatires and employees, directly 01' through any corporate or other cleyice, in connection ,with the offering for sale, sale or distribution of beef or any other food products, do forthwith cease. and desist from: A. Disseminating'. or causing- the dissemination of. ally ach-el'tisement by means of the rnitec1 States mails or by any means, in commerce, as ;'commerce" is defined in the Federal Trade Commission ~~ct, which ad,-ertisement represents, directly 01' by implic;ltion:

1. That any such products art' otf'erecl for sale when such offer is not. n bona fide otter to sell such products at the price or prices stated.

~. That any products are. ol1'elec1 for selle ",hen the purpose of such representations is not to sell the offeJ'cd products bur to obtain prospects for the s,1le of other merchandise at higher prices.

:3. That the beef offered at :27, :31 , 3D ,1nd -1D cents per pound or at any other comparati,-ely low price pel' pound is top quality meat.

-1. That the. beef offered at the. prices aforesaid consists primarily of sirloin, T-bone, roast, porterhouse. or other top quality cuts of meat.

;). That the beef offered for sale comes primarily from the Black Angus breed of cattle.

B. Disseminating~ or causing the dissemination of any ac1\-ertisement bv means of the United States mails or bv nny mea 11:3 ill commerce, as ;'commerce" is defined in the Federal Trade Commission Act, ",which advertisements misrepresent in any manner the quality or grade of any beef or other food products. C. Discouraging the purchase of, or disparaging in any manner, any products which are aclyertisecl or offered for sale in advertisements disseminated or caused to be disseminated in commerce, as "commerce" is defined in the Federal Trade Commission Act.

Final Order 73 F.

D. Disseminating, or causing to be disseminated, any ach-ertisement by any means, for the purpose of inducing, or which is likely to induce, directly 01' indirectly, the purchase of respondents' products in commerce, as "commerce is defined in the Federal Trade Commission Act, which advertisement contains any of the representations or misrepresentations prohibited in Paragra phs A and B above.

FIX AL ORDER The hearing examiner filed his initial dee.ision in this procBec1ing on February 16 , 1968. By order of :.\larch 8, 1968, the Commission stayed the effective date of the initial decision because the Commission had not received proof of service thereof upon respondents and pending a determination whether the initial decision constitutes an adequate disposition of the issues in this case. In addition ~ it was ordered that the stay "as not to be eonstrued as extending the time provided under S 3.52 of the 'Commission s Rules of Practice for filing notice of intention to appeal from the initial decision by any party to this proceeding.

Service of the initial decision was perfected b~' personal service on April 25, 1968. N 0 appeal from the initia.l decision of the hearing examiner having been filed, and the Conmlission having determined that the initial decision constitutes an adequate dispositon of the issues in this ease, the order to stay the efiective date of the initial decision will be vacated and the initial decision adopted as the decision of the Commission. Aceordingly, t is oJ'Clered That the order of 11arch 8, 1968, staying the effective date of the initial decision be, and it hereby is, vacated. decision of the hearing exanl- It is flu7'thel' o1'(leped That the initial iner be, and it hereby is, adopted as the decision of the Commission as of the 29th day of ~iay, 1968. It is further orderecl That Supreme Freeze.r :.\leats, Inc., a corporation, and :Maynard M:eyer, individually and as an officer of said eorporation, shall, within sixty (60) days after service of this order upon them, file with the Commission a report in writing, signed by such respondents, setting forth in detail the manne.!' and form of their compliance with the order to cease and desist. REIGN TEENS, LTD. , ET AL. 999 iOomplaint