Keeney Brothers Farms

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IN 'lnJ MATTER OF KEENEY BROTHERS FARlVS, ET AL.

CONSEN'!' ORDEJ\ , ETC., IN REGARD TO '!'HE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-lfi.'9. CDmplrtint, Nov. 20 , 196,9--Dec' ision" Nov. 20, 1969 Consent order requiring a ),e\,,' Freedom, Pa., seller of chinchila breeding stock to CRase making exaggerated earning claims, misrepresenting the quality and fertiity of its stock, and misrelH'esenting its services to purchasers.

COivIPLA IN'! Pursuant to the provisions of the Federal Trade Comnlission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Keeney Brothers Farnls, a partnership, and Alvin L. Keeney and Elmer H. Keeney, incUvic1ually and ol-s coparLnel' s trading and doing business as Keeney Brothers Farms, anrl Larry Keeney, individually and as an offce manager of said partnership, hereinafter referred to as respondents, have violated the provisions of said Act, and it appearing to the Commission th IL a proceeding by it in respect thereof would be in the public interest, hereby issues its COll1plaint stating its charges in that respect as follows: PARAGJ\APH 1. Respondent Keeney Brothers Fam1s is a partnership comprised of Alvin L. Keeney and Elmer H. Keeney wbo formulate, direct and control its acts, policies and practices, including those hereinafter set forth. The principal offce and place of business of said partnership is located at Route 2, New Freedom, Pennsylvania.

Respondents Alvin L. Keeney and Elmer H. Keeney are individuals and copartners trading and doing business as Keeney Brothers Farms, with their principal offce and place of business at the above-stated address.

Respondent Larry Keeney is an individual and offce manager of said partnership. He cooperated in and effectuated the acts policies and practices of tbe partnership. His address is the same as that of the partnership.

PAR. 2. Respondents are now, and for some time last past have been, engaged in the advertising, of -Ie ring- for sale, sale and distribution of chinchilla hreeding slock to the public. 704 FEDERAL TRADE CO:.IVISSION DECISIONS Complaint 76 F.

PAR. 3. In the course and conduct of their aforesaid business, respondents now cause, and for some time last past have caused their said chinchilas, when sold, to be shipped from their place of business in the State of Pennsylvania to purchasers thereof located in various other States of the United States, and maintain and at aU times mentioned herein have maintained, a substantial course of trade in said products in commerce, as ('commerce " is defined in the Federal Trade Commission Act. PAR. 4. In the course and conduct of their aforesaid business, and for the purpose of obtaining the names of prospective purchasers and inducing the purchase of said chinchillas, respondents have n1ade, and are now making numerous statements and representations in magazine publications, direct mail advertising and through the oral statements and display of promotional material to prospective purchasers by their salesmen, with respect to the breeding of chincbillas in the home for profit without previous experience, the rate of reproduction of said animals and the expected income from their sale.

Typical and mustrative of the statements and representations contained in said advertising and promotional material, but not all inclusive thereof, are the followjng: "' -* -* Here is a ready made market! The demand for Chinchila breeding stock is so great authorities estimate that 500,000 animals wi1 be needed for breeding stock alone, before pelting can be seriously considered. * * * The space you will need to raise, breed and sell Chinchilas to start need be no more than your garage, basement, or even the kitchen or bedroom. * * -* The return is quick and BIG. You can have Chinchilas ready for market in just five or six months. A chinchila can have up to three litters a year, averaging from 1 io as hjgh as 6 in a litter. The young can bring from $200.00 a pair on up.

YOU CAr\ MAKE UP TO $800.00 IN ONE YEAR JUST FROM ONE PAIR OF CHlKCHILLAS Here s how. Supposing you get a real conservative average of 2 young per litter. In a year s time you can have 3 pair from your original pair, plus at least one pair from the first offspring. If you sell your young at $200.00 per pair, you would then have S800.00. By keeping at least one pair for future breeding the next year, you could make from $600.00 to $1800. 00. * * * CAN YOU USE $1 000. 00 to $5,000. 00-$10,000.00 per year? Of course you can. And by answering our advertisement you have taken a step forward in that direction. * * '"

KEENEY BROTHERS FARMS, ET AL. 705 703 Complaint Then consider carefully our program: A tremendous National Advertising Campaign (to milions every month all over the United States) specially designed to sell the Chinchillas YOU BREED AT HOME. Yes, you ll agree after digesting this information that we want to work "rith you as a sort of YOU BRBED 'E:v--WE' LL HELP SELL 'EM" team. Is Chincl1ila breeding diffi.ult? Absolutely not. Xature takes care of the breeding, as paired animals are left together at all times. * '" '" WHAT OTHER BUSINESS OFFERS YOU THESE THRILLTNG AD- VANTAGES? * * * YOU ARE IN PARTNERSHIP \\with NATURE and nature does the work for you. * * * YOUR HOME , GARAGE , BARN, BASEMENT IS YOUR FACTORY YOU DOX'T HAVE TO FTND A MARKET FOR THE CHINCHILLAS YOU BREED, BECA"CSE Our National Advertising was originated with the idea of making people interested ill raising Chinchilas come to you * * no matter where you live. YOUR SUCCESS IS OUR SUCCESS. That is why we pay for this large nation-wide advertising campaign to help you. No other type of home business offers you this extra assurance of profits. They have hardy constitutions and with proper care, feed and housing, are relatively free from ilness and disease. PAR. 5. By and through the use of said statements and representations made by respondents in their advertising and promotional material, and others of similar import and meaning but not expressly set out herein, and in oral statements and representations made by their salesmen, respondents represent, and have represented, directly or by implication, that: 1. It is commerciany feasible to breed and raise chinchilas from breeding stock purchased from respondents in homes, basements, garages, kitchens, bedrooms and that large profits can be made in this manner.

2. Tbe breeding of ehlnchilas from breeding stock purchased from respondents as a commerciany profitable enterprise requires no previous experience in the breeding, raising and caring for such animals.

3. Chinchilas are bardy animals and are free from ilness and disease.

4. Eacb female chlnchiJla purchased from respondents and each female offspring wjJ produce at least three live offspring per year.

706 FEDERAL TRADE COM:mission DECISIONS Complaint 76 F.

5. Each female chinchilla purchased fl' Ol1 respondents and each female offspring wil produce several successive litters of from one to six live offspring each year. 6. The offspring referred to in Paragraph Five subparagraph (5) above will sell for at least $200 a pair, a pair being one female and one male.

7. A purchaser starting with one female and one male of respondents' chinchila breeding stock will have a gross income of at least $600 from the sale-of animals in the second year. 8. There is a great demand for the offspring and for the pelts of the offspring of chinchilla breeding stock purchased from respondents.

9. The purpose of respondents ' national advertising is to help purchasers of their chinchilla breeding stock market the chinchillas they raise.

PAR. 6. In truth and in fact:

1. It is not commercially feasible to breed or raise chinchillas from breeding stock purchased from respondents in homes, basements, garages, kitchens, bedrooms and large profits cannot be made in this manner. Such quarters or buildings, unless they have adequate space and the requisite temperature, humidity, ventilation and other necessary environmental conditions are not adaptable to OJ' suitable for the breeding or raising of chinchillas on a commercial basis.

2. The breeding of chinchillas from breeding stock purchased from respondents as a commercially profitable enterprise requires specialized knowledge in the breeding, raising and cm' e of s;:dd anin1als 111uch of which must be acquired through actual experience.

3. Chinchillas are not hanly animals and are not free from illness and disease.

4. Each female chinchila purchased from respondents and each female offspring will not produce at least three Jive offspring per year, hut generally less thml that number. 5. Each female chinchilln. purchased from respondents and each female offsp1'ing \"jll not pror1uce several successive litters from one to six each year, hut generally less than that number, 6. The offspring referred to in subparagraph (5) Paragraph Five above will not sell for at least $200 a pair but substantially less than that amount.

KEENEY BROTHERS FAR:vS, ET AL. 707 703 Complaint 7. A purchaser starting with one female and one male of respondents' breeding stock wil not have a gross income of at least 3600 from the sale of animals in the second year but substantially less than that amount.

8. There is not a great demand for the offspring nor for the pelts of the offspring of chinchila breeding stock purchased from respondents.

9. The purpose of respondents' national advertising is not to help purchasers of their chinchilla breeding stock market the chinchilas they raise but to sell respondents' own breeding stock. Therefore, the statements and representations as set forth in Paragraphs Four and Five hereof were aud are false, misleading and deceptive.

PAR. 7. In the course and conduct of their business, and at all times mentioned herein, respondents have been in substantial competition, in commerce, with corporations, firms and individuals in the sale of chinchilla breeding stock. PAR. 8. The use by respondents of the aforesaid false, misleading and deceptive statements, representations and practices has had, and now has, the tendency and capacity to mislead members of the purcbasing public into the erroneOllS and mistaken belief that said statements and representations IV€l'€ and are true and into the purchase of substantial quantities of respondents' chinchillas by reason of said erroneous and mistaken belief. PAR. 9. The aforesaid acts and practices of the 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 competition in eomn1erce and unfair and deceptive acts and pl'Rctices in commerce, in violation of Section 5 of the Federal Tn,de Commission Act. DECISION A1\D ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Bureau of Deceptive Practices proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act; and 708 FEDERAL TRADE COIVMISSION DECISIONS Decision and Order 76 F.

The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to Deli eve that the respondents have violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in S 2.34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Keeney Brothers Farms is a partnership comprised of Alvin L. Keeney and Elmer H. Keeney who formulate direct and control its acts, policies and practices. The principal offce and place of business of said partnership is located at Route ew Freedom, Pennsylvania.

Respondents Alvin L. Keeney and Elmer H. Keeney are individuals trading and doing business as a copartnersbip under the aforesaid name and style. Their address is the same as that of the partnership.

Respondent Larry Keeney is an individual and offce manager of said partnership. He cooperated in and effectuated the acts policies and practices of the partnership. His address is the same as that of the partnership.

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

ORDER It is ordered That respondents Keency Brothers Farms, a partnership, and Alvin L. Keeney and Elmer H. Keeney, individually and as copartners trading and doing business as Keeney Brothers Farms, or trading and doing business under any other name or names, and Larry Keeney, individually and as an offce manager of said partnership, and respondents ' representatives KEENEY BROTHERS FARIVS, ET AL. 709 703 Decision and Order agents and employees, directly or through any corporate or other device, hl connection with the advertising, offeyjng for sale, sale or distribution of chinchila breeding stock or any other products in commerce, as Hcon1merce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from: A. Representing, directly or by implication, that: 1. It is commercially feasible to breed or raise chinchilas in homes, basements, garages, kitchens or bedrooms, or other quarters or buildings unless in immediate conjunction therewith it is clearly and conspicuously disclosed that the represented quarters or buildings can only be adaptable to and suitable for tbe breeding and raising of chinchilas on a commercial basis if they have the requisite space, temperature, humidity, ventilation and other environmental conditions.

2. Breeding chinchilas as a commercially profitable enterprise can be achieved without previous knowledge or experience in the breeding, raising and care of such animals.

3. Chinchilas are hardy animals or are free from illness or disease.

4. Each female chinchila purchased from respondents and each female of Is pring produce at least three live young per year.

5. The number of live offspring produced per female chinchila is any number or range of numbers; or repre- ,senting, in any manner, the past number or range of numbers of live offspring produced per female cbinchila of purchasers of respondents' breeding stock unless, in fact, the past number or range of numbers represented are those of a substantial number of purchasers and accurately reflect the number or range of numbers of live offspring produced per female cbinchila of these purchasers under circumstances similar to tbose of the purchaser to whom the representation is made. 6. Each female chinchila purchased from respondents and each female offspring wil produce several successive litters of one to six live offspring each year. 7. The number of litters or sizes thereof produced per female chinchila is any number or range thereof; or representing, in any manner, the past number or range 710 FEDERAL TRADE COIVMISSION DECISIONS Decision and Order 76 F.

of numbers of litters or sizes produced per female chinchila of purchasers of respondents' breeding stock unless, in fact, the past number or range of numbers represented are those of a substantial number of purchasers and accurately reflect the number or range of numbers of litters or sizes thereof produced per female chinchila of these purcbasers under circumstances similar to those of the purchaser to whom the representation is made. 8. The offspirng of respondents' chinchilla breeding stock sell for at least $200 per pair.

9. Chinchila offspring from respondents' breeding stock yvi11 sell for any price, average price, or range of prices; or representing, in any lnanner, the past price average price or range of prices of purchasers of respondents' breeding stock unless, in fad. the past price average price or range of prices represented are those of a substantial number of purcbasers and accurately reflect the price, average price or range of prices reaUzed by these purchasers under circumstances similar to those of the purchaser to whom the representation is made.

10. A purcbaser starting with one female and one male will have, from the sale of animals, a gross income earnings or profits of $600 in the second year after purchase.

11. Purchasers of ,'respondents' breeding stock wil realize earnings, profits or income in any amount or range of amounts; or representing, in any manner, the past earnings, profits or income of purchasers of respondents breeding stock unless, in fact, the past earnings, profits or income represented are those of a substantial number of purchasers and accurately reflect the average earnings, profits or income of these purchasers under circumstances similar to tbose of the purcbaser to whom the representation is made.

12. Purchasers of respondents' breeding stock can expect to be able to sell the offspring or tbe pelts of the offspring of respondents ' chincbilas because said chinchilas or pelts are in great demand.

13. The purpose of respondents' national advertising is t.o help purchasers of their d1incbilla breeding stock KEENEY BROTHERS FARMS, ET AL. 711 703 Decision and Order market the chinchilas they raise; or misrepresenting, in any manner, the advertising, promotional or sales assistance engaged in by respondents or furnished to purchasers of respondents' products.

B. Misrepresenting, in any manner, the earnings or profits to purchasers or the quality or reproduction capacity of any chinchila breeding stock.

C. Failing to deli vel' a copy of this order to cease and desist to all present and future salesmen or other persons engaged in the sale of respondents' products or services, and failing to secure from each such salesman or other person a signed statement acknowledging receipt of said order. It is JUTther Q1'dered That the respondents herein shall within sixty (60) days after service upon them of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.