Government Employees' Exchange, Inc

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- In the Matter oF GOVERNMENT EMPLOYEES’ EXCHANGE, INC., ET AL. CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-1893. Complaint, Apr. 6, 1971—Decision, Apr. 6, 1971 Consent order requiring a Washington, D.C., publisher and distributor of a biweekly newspaper for government employees to cease publishing adver- ‘tisements for any firm without prior authorization, failing to discontinue such advertisements after being notified, and seeking to collect for such unauthorized advertisements.

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. Government Employees’ Exchange, Inc., a corporation, and Sidney Goldberg and Barbara Goldberg, a/k/a Barbara Harlos, individually and as officers 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 follows:

Complaint 7 B.E.C.

ParacrarH 1. Respondent Government Employees’ Exchange, 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 office and place of business located at 1913 I Street, N.W., Washington, D.C.

Respondents Sidney Goldberg and Barbara Goldberg, a/k/a Barbara Harlos, are officers of said corporation. They formulate, direct, and control the acts and practices of the corporate respondent, including the acts and practices herein set forth. Their address is Box 90 A8, Glenelg, Maryland.

Par. 2. Respondents are now, and for some time last past have been, engaged in the publishing, offering for sale, sale, and distribution of The Government Employees’ Euchange, a biweekly newspaper, and in the solicitation of advertisements for inclusion therein.. Par. 3. In the course and conduct of their business as aforesaid, respondents now cause, and for some time past have caused, their said newspaper, when sold,:to be transported from their place of business located in the District of Columbia, or from the places of business of their consignees, to purchasers thereof located in various States of the United States and the District of Columbia, and maintain, and at all times mentioned herein have maintained, a substantial course of trade in said newspaper in commerce, as “commerce” is defined in the Federal Trade Commission Act. Par. 4. In the course and conduct of their business aforesaid, respondents solicit buyers for advertising space in the said newspaper by telephone and other means.

As a result of such solicitations, respondents publish advertisements in their said newspaper, sometimes under authority of an executed written contract and at other times under authority of an oral contract.

In a substantial number of instances, however, respondents have engaged in the unfair and deceptive practice of placing advertisements of various persons and firms in their newspaper without having received authorization from such persons or firms. Respondents have in other instances obtained authorization from persons or firms for publication of advertisements but have published such advertisements for a period of time in excess of that which was authorized. Respondents have then sought to exact payment from such persons and firms for such unauthorized advertisements. This unfair and deceptive practice engaged in by respondents of publishing unauthorized advertisements and seeking to exact payment therefor has subjected firms and individuals to harrassment and unlawful demands for the payment of non-existent debts. GOVERNMENT EMPLOYEES’ EXCHANGE, INC., ET AL. 59] 589 Decision and Order Therefore, the acts and practices as set forth in Paragraph Four hereof were and are unfair, false, misleading and deceptive acts and practices.

Par. 5. In the course and conduct of their business, and at all times mentioned herein, respondents have been, and are now, in substantial competition, in commerce, with: corporations, firms, and individuals, engaged in the sale of advertising space in newspapers and other publications.

Par. 6. The use by respondents of the aforesaid unfair and false, misleading and deceptive acts and practices, statements and representations has had, and now has, the capacity and tendency to mislead and deceive members of the 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 by reason of said erroneous and mistaken belief.

Par. 7. The aforesaid acts and practices of repondents, 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 commerce and unfair and deceptive acts and practices in commerce in violation of Section 5 of the Federal Trade Commission Act.

Decision AND ORDER The Commission having heretofore determined to-issue its complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act, and the respondents 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 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 complaint to issue herein, 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 considered the agreement and having accepted same, and the agreement containing consent order having thereupon been placed on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in Section 2.34(b) of its Rules, the Commission hereby issues its 592. -—-~ FEDERAL TRADE COMMISSION DECISIONS Decision and Order 78 F.T.C.

complaint in the form contemplated by said agreement, makes the following jurisdictional. findings, and enters the following order: 1. Respondent Government Employees’ Exchange, 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 office and place of business located at 1913 I Street, NW., Washington, D.C. Respondents Sidney Goldberg and Barbara Goldberg, a/k/a Barbara Harlos, are officers of said corporation and their address j is Box 90 A8, Glenelg, Maryland.

2. The F 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 Government Employees’ Exchange, Inc., a corporation, and its officers, and Sidney Goldberg and Barbara Goldberg, a/k/a Barbara Harlos, individually and as officers of said corporation, and respondents’ agents, representatives and employees, directly or through any corporate or other device, in connection with the solicitation, ‘offering for sale or the sale of advertising, In any newspaper or other publication in commerce, as “commerce” is defined in the Federal Tr ade Commission Act, do forthwith cease and desist from:

1. Placing, printing or publishing, or causing to be placed, printed or published, any advertisement on behalf of any person, firm or corporation, in any publication without a prior authorization, order or agreement to purchase said adertisement. 2. Placing, printing or publishing any advertisement after being notified by the advertiser, or his duly authorized representative, that the advertisement is to be discontinued. - 3. Sending, or causing to be sent, bills, letters or notices to any5 1 3 6 1 2 847 1982 133 31 96.499496 person,5 1 3 6 1 3 1002 1970 77 32 96.496292 firms 1 3 6 1 4 1102 1980 37 21 95.836845 or5 1 3 6 1 5 1161 1967 217 56 96.914726 corporations 1 3 6 1 6 1402 1966 85 32 96.616638 with5 1 3 6 1 7 1509 1965 122 42 96.805954 regards 1 3 6 1 8 1654 1968 35 28 96.788322 to5 1 3 6 1 9 1712 1974 67 31 93.248665 any5 1 3 6 1 10 1796 1962 189 33 92.815163 advertise-3 1 3 7 0 0 757 1991 1231 263 -1 4 1 3 7 1 0 758 1991 1230 66 -1 5 1 3 7 1 1 758 2025 92 30 96.288239 ments 1 3 7 1 2 870 2021 112 32 96.288239 which5 1 3 7 1 3 1001 2020 62 32 96.243362 has5 1 3 7 1 4 1082 2019 83 32 95.627037 been5 1 3 7 1 5 1181 2026 43 24 95.627037 or5 1 3 7 1 6 1245 2017 29 33 96.425018 is5 1 3 7 1 7 1294 2021 34 28 96.503250 to5 1 3 7 1 8 1349 2017 40 32 96.932899 be5 1 3 7 1 9 1409 1991 157 66 96.974945 printed,5 1 3 7 1 10 1578 2015 147 32 95.379227 inserted5 1 3 7 1 11 1745 2025 39 21 96.725121 or5 1 3 7 1 12 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respondents 1 3 8 1 8 1537 2234 218 72 95.215126 corporations 1 3 8 1 9 1769 2264 89 32 93.288406 shall5 1 3 8 1 10 1876 2263 112 32 92.881233 forth-4 1 3 8 2 0 677 2313 1311 49 -1 5 1 3 8 2 1 677 2324 87 32 96.962646 with5 1 3 8 2 2 784 2322 181 33 96.855064 distributes 1 3 8 2 3 987 2332 20 21 96.835960 a5 1 3 8 2 4 1028 2331 86 31 96.534302 copy5 1 3 8 2 5 1135 2319 40 32 96.534302 of5 1 3 8 2 6 1196 2318 69 32 96.663345 this5 1 3 8 2 7 1287 2318 100 32 96.882172 orders 1 3 8 2 8 1409 2320 36 29 96.580788 to5 1 3 8 2 9 1468 2316 81 32 96.975677 each5 1 3 8 2 10 1570 2316 38 31 95.938736 of5 1 3 8 2 11 1630 2315 44 32 97.017876 its5 1 3 8 2 12 1696 2313 181 43 93.054741 operating5 1 3 8 2 13 1900 2313 88 32 92.462746 divi-4 1 3 8 3 0 674 2384 102 23 -1 5 1 3 8 3 1 674 2374 102 33 95.409439 sions.3 1 3 9 0 0 677 2375 1313 191 -1 4 1 3 9 1 0 716 2375 1273 89 -1 5 1 3 9 1 1 716 2425 39 31 69.374237 It5 1 3 9 1 2 772 2424 30 31 95.753708 is5 1 3 9 1 3 818 2422 139 42 96.699440 furthers 1 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E'P AL.’ ous:

589 °° Complaint emergence of a successor corporation, the creation or dissolution of subsidiaries or of any change in the corporation which may affect compliance obligations arising out of the order. : It is further ordered, 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 of their compliance with this order.