Colonial Engineering Corporation

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

Iy toe Marrer or COLONIAL ENGINEERING CORPORATION, ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE TRUTH IN LENDING AND THE FEDERAL TRADE COMMISSION ACTS Docket C-2272. Complaint, August 18, 1972—Decision, August 18, 1972. Consent order requiring a Springfield, Massachusetts, seller and distributor of home improvement products to cease, among other things, representing salesmen as officers, co-owners or advertising representatives of the respond- 276 FEDERAL: TRADE: COMMISSION. DECISIONS Complaint -- 81. F.T.C.

ent corporation; representing any price as special or reduced unless such. price is a substantial reduction in. price; failing to disclose terms and con- ‘ ditions of guarantees; inducing purchasers to sign blank or partially blank ‘legal instruments or documents; failing to disclose to customers all necessary disclosures required by Regulation Z of the Truth in Lending Act, Respondent is further required to include on the face of its notes5 1 3 1 6 13 1829 828 18 19 96.969566 a5 1 3 1 6 14 1862 823 96 26 96.799232 notices 1 3 1 6 15 1972 824 67 25 96.988068 that5 1 3 1 6 16 2050 825 61 27 96.296082 any4 1 3 1 7 0 859 852 1252 46 -1 5 1 3 1 7 1 859 857 177 29 94.835030 subsequent5 1 3 1 7 2 1063 858 103 25 96.159348 holders 1 3 1 7 3 1194 860 86 25 96.520782 takes5 1 3 1 7 4 1306 860 52 25 96.720116 thes 1 3 1 7 5 1384 861 70 25 96.992569 notes 1 3 1 7 6 1480 862 75 24 96.732101 with5 1 3 1 7 7 1582 863 42 24 95.597969 all5 1 3 1 7 8 1647 852 168 46 96.164558 conditions5 1 3 1 7 9 1843 866 32 23 96.129082 of5 1 3 1 7 10 1902 866 50 25 96.308113 thes 1 3 1 7 11 1978 866 133 29 96.334991 contract4 1 3 1 8 0 858 899 337 33 -1 5 1 3 1 8 1 858 899 171 31 96.507622 evidencing5 1 3 1 8 2 1042 900 51 32 96.447876 thes 1 3 1 8 3 1106 902 89 29 56.921917 debt.5 1 3 1 8 4 1192 895 8 41 56.921917 |2 1 4 0 0 0 1343 950 212 63 -1 3 1 4 1 0 0 1343 950 212 63 -1 4 1 4 1 1 0 1343 950 212 63 -1 5 1 4 1 1 1 1343 950 212 63 23.009216 Complaint2 1 5 0 0 0 746 1006 1363 1394 -1 3 1 5 1 0 0 746 1006 1363 617 -1 4 1 5 1 1 0 826 1006 1280 82 -1 5 1 5 1 1 1 826 1030 175 38 96.265053 Pursuant5 1 5 1 1 2 1012 1035 43 37 96.265053 to5 1 5 1 1 3 1072 1033 59 42 96.803993 thes 1 5 1 1 4 1148 1034 195 49 96.840401 provisions5 1 5 1 1 5 1360 1036 40 32 96.964684 of5 1 5 1 1 6 1416 1037 59 32 96.556786 thes 1 5 1 1 7 1491 1006 147 82 96.916557 Federal5 1 5 1 1 8 1655 1034 114 37 96.361115 Trades 1 5 1 1 9 1786 1039 226 45 96.361115 Commissions 1 5 1 1 10 2026 1041 80 40 97.001060 Act,4 1 5 1 2 0 783 1082 1322 66 -1 5 1 5 1 2 1 783 1082 69 32 96.876259 ands 1 5 1 2 2 868 1082 58 32 96.687851 thes 1 5 1 2 3 937 1070 145 52 63.983410 ‘Truth5 1 5 1 2 4 1072 1095 38 21 96.651039 in5 1 5 1 2 5 1123 1080 168 49 94.935699 Lending5 1 5 1 2 6 1299 1086 69 33 94.935699 Acts 1 5 1 2 7 1385 1088 69 32 96.267845 ands 1 5 1 2 8 1468 1082 68 49 96.721077 thes 1 5 1 2 9 1542 1083 263 56 95.943733 implementing5 1 5 1 2 10 1819 1082 194 66 96.892441 regulations 1 5 1 2 11 2028 1103 77 33 92.687668 pro-4 1 5 1 3 0 782 1124 1323 62 -1 5 1 5 1 3 1 782 1124 177 54 92.317719 mulgated5 1 5 1 3 2 979 1126 233 55 96.768288 thereunder,5 1 5 1 3 3 1216 1137 69 39 96.901085 ands 1 5 1 3 4 1302 1137 48 43 96.995316 by5 1 5 1 3 5 1366 1132 115 40 96.869919 virtues 1 5 1 3 6 1498 1139 52 37 96.989037 of5 1 5 1 3 7 1550 1137 64 35 96.897217 thes 1 5 1 3 8 1631 1140 178 47 96.325142 authority5 1 5 1 3 9 1825 1141 145 33 96.472878 vested5 1 5 1 3 10 1960 1153 38 32 95.867630 in5 1 5 1 3 11 2013 1142 29 33 95.867630 it5 1 5 1 3 12 2059 1142 46 44 96.987465 by4 1 5 1 4 0 783 1176 1322 60 -1 5 1 5 1 4 1 783 1176 98 48 96.582878 those5 1 5 1 4 2 894 1181 100 48 95.589615 Acts,5 1 5 1 4 3 1011 1184 59 42 96.481041 thes 1 5 1 4 4 1087 1178 147 50 96.689568 Federal5 1 5 1 4 5 1252 1188 121 33 96.705360 Trades 1 5 1 4 6 1384 1182 252 54 93.843338 Commission,5 1 5 1 4 7 1640 1190 132 51 96.595879 having5 1 5 1 4 8 1788 1202 120 23 96.535706 reasons 1 5 1 4 9 1924 1196 38 30 96.435280 to5 1 5 1 4 10 1978 1193 127 41 96.435280 believe4 1 5 1 5 0 746 1230 1359 62 -1 5 1 5 1 5 1 746 1230 2 2 0.000000 -5 1 5 1 5 2 778 1233 79 39 96.133621 that5 1 5 1 5 3 880 1230 158 38 96.414200 Colonial5 1 5 1 5 4 1059 1236 239 48 96.688126 Engineering5 1 5 1 5 5 1318 1236 248 45 96.573586 Corporation,5 1 5 1 5 6 1582 1252 20 21 96.966736 a5 1 5 1 5 7 1622 1238 230 48 96.739151 corporation,5 1 5 1 5 8 1872 1244 69 33 96.925835 ands 1 5 1 5 9 1961 1235 144 57 96.957047 Stanley4 1 5 1 6 0 781 1279 1328 68 -1 5 1 5 1 6 1 781 1283 43 34 89.912102 D.5 1 5 1 6 2 846 1283 132 50 96.376755 Saxby,5 1 5 1 6 3 1000 1282 178 50 44.375694 (AKA'S.5 1 5 1 6 4 1197 1289 157 45 96.292885 Douglass 1 5 1 6 5 1373 1290 151 44 96.197693 Saxby),5 1 5 1 6 6 1543 1279 233 68 95.926933 individually5 1 5 1 6 7 1794 1295 71 42 96.570999 ands 1 5 1 6 8 1875 1305 45 29 96.613243 as5 1 5 1 6 9 1937 1306 46 22 96.765312 an5 1 5 1 6 10 1999 1289 110 45 94.622787 officer4 1 5 1 7 0 781 1330 1321 68 -1 5 1 5 1 7 1 779 1326 48 51 94.747986 of5 1 5 1 7 2 836 1330 78 46 93.722893 that5 1 5 1 7 3 919 1330 241 68 61.623074 corporation,5 1 5 1 7 4 1177 1339 213 44 96.768250 hereinafter5 1 5 1 7 5 1406 1336 154 50 77.207771 referred.5 1 5 1 7 6 1576 1345 37 30 94.403610 to5 1 5 1 7 7 1627 1354 38 22 96.493324 as5 1 5 1 7 8 1681 1332 232 54 91.859665 respondents,5 1 5 1 7 9 1929 1338 88 40 93.201904 have5 1 5 1 7 10 2032 1346 70 40 92.447296 vio-4 1 5 1 8 0 777 1379 1325 77 -1 5 1 5 1 8 1 777 1374 103 50 44.648430 lated.5 1 5 1 8 2 889 1388 60 31 44.648430 thes 1 5 1 8 3 965 1388 195 47 96.992622 provisions5 1 5 1 8 4 1177 1381 40 41 97.009125 of5 1 5 1 8 5 1231 1379 109 45 80.136047 those:5 1 5 1 8 6 1348 1392 86 44 96.651077 Acts5 1 5 1 8 7 1451 1383 70 53 96.986092 ands 1 5 1 8 8 1534 1394 44 50 96.321747 of5 1 5 1 8 9 1593 1390 208 66 96.789612 Regulations 1 5 1 8 10 1818 1397 27 31 91.619949 Z5 1 5 1 8 11 1861 1390 241 52 96.586243 promulgated4 1 5 1 9 0 778 1429 1326 73 -1 5 1 5 1 9 1 777 1431 118 51 96.677971 under5 1 5 1 9 2 902 1429 59 42 96.598167 thes 1 5 1 9 3 975 1432 139 46 92.014198 ‘Truth5 1 5 1 9 4 1116 1451 26 28 96.510284 in5 1 5 1 9 5 1155 1429 161 73 96.458008 Lending5 1 5 1 9 6 1328 1443 81 41 96.706207 Act,5 1 5 1 9 7 1424 1434 69 50 96.105049 ands 1 5 1 9 8 1507 1429 44 47 67.172241 it5 1 5 1 9 9 1550 1445 193 50 96.717171 appearing5 1 5 1 9 10 1754 1444 39 35 96.990349 to5 1 5 1 9 11 1804 1446 61 34 96.875137 thes 1 5 1 9 12 1879 1446 225 44 96.621262 Commission4 1 5 1 10 0 778 1476 1321 71 -1 5 1 5 1 10 1 775 1478 82 52 95.737495 that5 1 5 1 10 2 874 1497 20 30 95.091629 a5 1 5 1 10 3 898 1476 223 71 71.778351 proceedings 1 5 1 10 4 1135 1491 52 43 95.793823 by5 1 5 1 10 5 1199 1491 56 33 95.223694 it5 1 5 1 10 6 1245 1503 38 22 95.223694 in5 1 5 1 10 7 1301 1493 132 45 96.930450 respects 1 5 1 10 8 1449 1494 137 45 96.591515 thereof5 1 5 1 10 9 1602 1491 115 44 92.832832 would5 1 5 1 10 10 1732 1497 67 32 92.832832 be5 1 5 1 10 11 1789 1508 38 22 96.860153 in5 1 5 1 10 12 1842 1497 58 33 96.785851 thes 1 5 1 10 13 1916 1484 110 62 96.913986 public5 1 5 1 10 14 2050 1498 7 6 96.669067 i5 1 5 1 10 15 2045 1510 54 35 93.074402 in-4 1 5 1 11 0 775 1524 1325 87 -1 5 1 5 1 11 1 775 1524 116 61 95.224731 terest,5 1 5 1 11 2 904 1536 122 48 64.201134 thereby5 1 5 1 11 3 1057 1541 7 6 90.400749 i5 1 5 1 11 4 1055 1551 108 42 96.875198 issues5 1 5 1 11 5 1179 1542 46 47 96.958389 its5 1 5 1 11 6 1243 1545 190 44 96.431679 complaints 1 5 1 11 7 1450 1537 133 51 96.717079 stating5 1 5 1 11 8 1598 1546 46 33 95.979774 its5 1 5 1 11 9 1662 1543 128 68 96.799850 charges5 1 5 1 11 10 1811 1548 20 32 92.224518 i5 1 5 1 11 11 1821 1559 37 21 96.991051 in5 1 5 1 11 12 1874 1549 78 32 95.100044 that5 1 5 1 11 13 1969 1543 131 50 95.100044 respect4 1 5 1 12 0 778 1589 205 34 -1 5 1 5 1 12 1 778 1599 37 21 96.928848 as5 1 5 1 12 2 830 1585 153 47 96.273476 follows:3 1 5 2 0 0 775 1614 1326 228 -1 4 1 5 2 1 0 816 1614 1280 78 -1 5 1 5 2 1 1 816 1630 214 44 7.032089 Paracraru5 1 5 2 1 2 1051 1644 28 31 82.325439 1.5 1 5 2 1 3 1102 1614 223 77 96.804909 Respondents 1 5 2 1 4 1346 1620 158 60 94.128113 Colonial5 1 5 2 1 5 1523 1647 237 43 95.848412 Engineering5 1 5 2 1 6 1780 1649 256 43 96.884499 Corporations 1 5 2 1 7 2029 1662 27 21 96.601059 is5 1 5 2 1 8 2077 1662 19 20 96.800369 a4 1 5 2 2 0 775 1692 1326 51 -1 5 1 5 2 2 1 775 1692 219 40 96.949890 corporations 1 5 2 2 2 1006 1694 195 41 96.240349 organized,5 1 5 2 2 3 1213 1695 151 43 96.982246 existing5 1 5 2 2 4 1375 1698 69 32 96.707893 ands 1 5 2 2 5 1456 1698 106 42 96.454651 doing5 1 5 2 2 6 1570 1698 155 35 96.715195 business5 1 5 2 2 7 1735 1701 110 32 96.701408 under5 1 5 2 2 8 1855 1701 68 32 96.832741 ands 1 5 2 2 9 1933 1701 47 42 96.822746 by5 1 5 2 2 10 1990 1701 111 33 96.846077 virtue4 1 5 2 3 0 775 1741 1321 52 -1 5 1 5 2 3 1 775 1741 40 32 96.997597 of5 1 5 2 3 2 832 1742 58 32 97.021729 thes 1 5 2 3 3 907 1742 84 33 96.665131 laws5 1 5 2 3 4 1009 1745 40 32 96.905426 of5 1 5 2 3 5 1064 1745 60 31 96.688347 thes 1 5 2 3 6 1141 1745 98 34 96.672325 States 1 5 2 3 7 1256 1747 40 32 96.595924 of5 1 5 2 3 8 1312 1747 128 43 96.953339 Maine,5 1 5 2 3 9 1457 1749 84 33 96.590050 with5 1 5 2 3 10 1558 1749 46 33 96.093796 its5 1 5 2 3 11 1620 1750 172 47 96.255684 principals 1 5 2 3 12 1810 1752 90 32 96.829895 offices 1 5 2 3 13 1915 1753 69 32 96.605736 ands 1 5 2 3 14 2001 1752 95 41 96.605736 place4 1 5 2 4 0 775 1792 1257 51 -1 5 1 5 2 4 1 775 1792 40 32 93.178154 of5 1 5 2 4 2 828 1792 302 36 89.932304 business-located5 1 5 2 4 3 1145 1800 36 28 94.268539 at5 1 5 2 4 4 1195 1796 40 34 94.268539 785 1 5 2 4 5 1252 1798 113 43 96.968636 Verge5 1 5 2 4 6 1380 1798 125 44 96.774902 Street,5 1 5 2 4 7 1519 1800 224 43 96.870277 Springfield,5 1 5 2 4 8 1758 1803 274 32 96.813530 Massachusetts.3 1 5 3 0 0 769 1825 1326 270 -1 4 1 5 3 1 0 816 1825 1278 71 -1 5 1 5 3 1 1 816 1844 221 41 96.332329 Respondents 1 5 3 1 2 1053 1845 144 45 92.596169 Stanley5 1 5 3 1 3 1213 1848 43 32 92.596169 D.5 1 5 3 1 4 1272 1848 120 44 96.697083 Saxby5 1 5 3 1 5 1414 1825 121 68 95.969460 (AKA5 1 5 3 1 6 1551 1851 35 33 91.038658 S.5 1 5 3 1 7 1602 1852 154 42 95.732887 Douglass 1 5 3 1 8 1771 1852 133 44 96.048935 Saxby)5 1 5 3 1 9 1925 1854 30 32 96.873413 is5 1 5 3 1 10 1969 1866 43 20 92.365372 an5 1 5 3 1 11 2028 1854 66 33 67.227402 offi-4 1 5 3 2 0 774 1895 1321 49 -1 5 1 5 3 2 1 774 1905 56 21 96.976166 cers 1 5 3 2 2 847 1895 40 32 96.995781 of5 1 5 3 2 3 903 1895 59 33 97.019333 thes 1 5 3 2 4 980 1901 180 37 93.279663 corporate5 1 5 3 2 5 1177 1899 225 42 91.511002 respondent..5 1 5 3 2 6 1412 1902 57 31 96.725426 He5 1 5 3 2 7 1487 1902 212 42 96.471939 formulates,5 1 5 3 2 8 1717 1903 126 33 96.709671 directs5 1 5 3 2 9 1861 1905 68 32 97.001717 ands 1 5 3 2 10 1946 1905 149 32 96.918869 controls4 1 5 3 3 0 772 1944 1322 55 -1 5 1 5 3 3 1 772 1944 59 33 97.018028 thes 1 5 3 3 2 845 1946 152 43 96.993752 policies,5 1 5 3 3 3 1012 1951 72 30 96.954681 acts5 1 5 3 3 4 1099 1949 68 32 96.983192 ands 1 5 3 3 5 1181 1951 168 39 96.886032 practices5 1 5 3 3 6 1364 1952 39 32 96.483368 of5 1 5 3 3 7 1417 1952 59 33 96.724747 thes 1 5 3 3 8 1490 1957 180 37 96.532089 corporate5 1 5 3 3 9 1684 1955 219 42 96.422997 respondent,5 1 5 3 3 10 1915 1955 179 44 96.542656 including4 1 5 3 4 0 772 1996 1321 45 -1 5 1 5 3 4 1 772 1996 58 32 96.725914 thes 1 5 3 4 2 844 2000 70 29 96.587708 acts5 1 5 3 4 3 928 1998 69 32 96.587708 ands 1 5 3 4 4 1010 1999 167 42 96.403656 practices5 1 5 3 4 5 1189 2001 213 34 96.621635 hereinafter5 1 5 3 4 6 1414 2008 50 28 96.713562 sets 1 5 3 4 7 1478 2004 106 34 92.955780 forth.5 1 5 3 4 8 1597 2004 67 33 96.715889 His5 1 5 3 4 9 1676 2005 153 33 95.718948 business5 1 5 3 4 10 1843 2006 160 33 94.088425 address5 1 5 3 4 11 1996 2018 27 21 96.854973 is5 1 5 3 4 12 2035 2007 58 32 96.991493 thea 1 5 3 5 0 769 2049 676 46 -1 5 1 5 3 5 1 769 2057 93 23 96.550217 same5 1 5 3 5 2 873 2058 36 22 94.703491 as5 1 5 3 5 3 918 2049 78 32 94.703491 that5 1 5 3 5 4 1006 2049 46 33 74.504784 of5 1 5 3 5 5 1055 2055 180 39 88.253227 corporate5 1 5 3 5 6 1246 2054 199 41 92.347549 respondent.3 1 5 4 0 0 768 2098 1324 99 -1 4 1 5 4 1 0 809 2098 1283 52 -1 5 1 5 4 1 1 809 2098 74 32 96.565666 Thes 1 5 4 1 2 910 2099 295 35 96.170616 aforementioned5 1 5 4 1 3 1233 2104 225 42 96.681442 respondents5 1 5 4 1 4 1486 2110 179 37 96.755508 cooperate5 1 5 4 1 5 1692 2088 69 52 72.587730 ands 1 5 4 1 6 1789 2111 56 29 72.587730 acts 1 5 4 1 7 1871 2109 156 41 96.390419 together5 1 5 4 1 8 2054 2109 38 33 96.658363 in4 1 5 4 2 0 768 2151 1092 46 -1 5 1 5 4 2 1 768 2148 164 44 96.550049 carrying5 1 5 4 2 2 947 2154 61 28 96.108177 outs 1 5 4 2 3 1024 2151 59 33 96.309853 thes 1 5 4 2 4 1099 2155 72 30 96.970055 acts5 1 5 4 2 5 1188 2156 69 32 96.713364 ands 1 5 4 2 6 1274 2155 167 42 96.321198 practices5 1 5 4 2 7 1457 2156 213 34 96.877022 hereinafter5 1 5 4 2 8 1685 2161 51 29 96.408394 sets 1 5 4 2 9 1753 2158 107 33 96.199249 forth.3 1 5 5 0 0 766 2199 1327 201 -1 4 1 5 5 1 0 811 2199 1282 52 -1 5 1 5 5 1 1 811 2199 83 34 90.161049 Par.5 1 5 5 1 2 910 2203 28 30 85.485947 2.5 1 5 5 1 3 953 2202 239 42 96.606941 Respondents5 1 5 5 1 4 1205 2215 58 22 96.944412 ares 1 5 5 1 5 1276 2217 88 31 96.289307 now,5 1 5 5 1 6 1378 2207 69 32 96.850197 ands 1 5 5 1 7 1461 2207 57 32 97.010796 for5 1 5 5 1 8 1531 2219 92 22 97.004425 some5 1 5 5 1 9 1636 2209 82 33 96.868637 times 1 5 5 1 10 1731 2210 65 32 94.722137 lasts 1 5 5 1 11 1810 2214 79 37 94.722137 past5 1 5 5 1 12 1900 2210 88 33 96.867203 have5 1 5 5 1 13 2000 2211 93 40 96.867203 been,4 1 5 5 2 0 768 2228 1321 79 -1 5 1 5 5 2 1 768 2252 154 55 96.180237 engaged5 1 5 5 2 2 939 2252 38 32 96.935402 in5 1 5 5 2 3 992 2253 59 32 97.004852 thes 1 5 5 2 4 1068 2254 223 45 96.244484 advertising,5 1 5 5 2 5 1308 2228 148 76 87.904663 offerings 1 5 5 2 6 1473 2259 56 31 96.596573 for5 1 5 5 2 7 1545 2259 80 41 96.576614 sale,5 1 5 5 2 8 1642 2260 70 32 96.883041 sales 1 5 5 2 9 1728 2260 68 33 96.599922 ands 1 5 5 2 10 1812 2260 222 34 96.583488 distributions 1 5 5 2 11 2050 2262 39 32 95.958466 of4 1 5 5 3 0 767 2304 1322 52 -1 5 1 5 5 3 1 767 2301 137 34 96.231346 various5 1 5 5 3 2 922 2304 100 32 96.850990 homes 1 5 5 3 3 1039 2304 250 43 96.211586 improvements 1 5 5 3 4 1306 2308 163 41 96.100967 products5 1 5 5 3 5 1485 2313 36 30 97.012794 to5 1 5 5 3 6 1537 2310 60 33 96.946976 thes 1 5 5 3 7 1612 2311 138 42 96.718544 general5 1 5 5 3 8 1767 2311 125 42 94.914444 public,5 1 5 5 3 9 1910 2311 179 45 95.171410 including4 1 5 5 4 0 766 2353 1049 47 -1 5 1 5 5 4 1 766 2353 199 43 96.440048 residential5 1 5 5 4 2 975 2355 117 43 96.976807 siding5 1 5 5 4 3 1102 2358 185 42 96.914490 materials,5 1 5 5 4 4 1299 2359 67 32 97.000900 ands 1 5 5 4 5 1376 2360 60 32 97.005272 thes 1 5 5 4 6 1447 2360 214 34 96.768517 installations 1 5 5 4 7 1672 2363 143 32 95.286682 thereof.2 1 6 0 0 0 1354 2454 146 23 -1 3 1 6 1 0 0 1354 2454 146 23 -1 4 1 6 1 1 0 1354 2454 146 23 -1 5 1 6 1 1 1 1354 2454 118 23 96.780037 COUNTS 1 6 1 1 2 1486 2456 14 21 96.505966 I2 1 7 0 0 0 762 2514 1324 257 -1 3 1 7 1 0 0 763 2514 1323 152 -1 4 1 7 1 1 0 806 2514 1280 43 -1 5 1 7 1 1 1 806 2514 166 43 92.315750 Alleging5 1 7 1 1 2 990 2515 182 34 96.626221 violations5 1 7 1 1 3 1189 2518 39 31 96.688179 of5 1 7 1 1 4 1246 2518 138 33 96.159950 Sections 1 7 1 1 5 1402 2523 17 29 96.159950 55 1 7 1 1 6 1438 2522 39 32 96.929321 of5 1 7 1 1 7 1493 2521 57 33 96.858177 thes 1 7 1 1 8 1567 2523 145 31 94.986610 Federal5 1 7 1 1 9 1730 2523 114 31 94.986610 Trades 1 7 1 1 10 1860 2523 226 34 96.348625 Commission4 1 7 1 2 0 765 2564 1319 49 -1 5 1 7 1 2 1 765 2564 77 41 96.876480 Act,5 1 7 1 2 2 863 2566 58 31 96.778603 thes 1 7 1 2 3 942 2566 204 42 96.943939 allegations5 1 7 1 2 4 1166 2569 39 32 96.636688 of5 1 7 1 2 5 1225 2569 225 44 96.075668 Paragraphs5 1 7 1 2 6 1470 2572 75 33 96.687546 Ones 1 7 1 2 7 1566 2573 68 32 96.311844 ands 1 7 1 2 8 1654 2575 84 30 96.052681 Two5 1 7 1 2 9 1758 2574 120 32 96.655144 hereof5 1 7 1 2 10 1897 2586 58 21 90.686333 ares 1 7 1 2 11 1976 2575 108 33 90.686333 incor-4 1 7 1 3 0 763 2617 1172 49 -1 5 1 7 1 3 1 763 2617 143 40 96.858986 porated5 1 7 1 3 2 920 2617 47 42 96.675606 by5 1 7 1 3 3 983 2618 172 40 96.386658 references 1 7 1 3 4 1169 2620 36 32 96.386658 in5 1 7 1 3 5 1220 2620 116 34 96.576599 Counts 1 7 1 3 6 1343 2613 15 57 94.126190 I5 1 7 1 3 7 1384 2633 37 21 96.494682 as5 1 7 1 3 8 1434 2622 32 33 96.726349 if5 1 7 1 3 9 1480 2624 92 42 96.582664 fully5 1 7 1 3 10 1585 2628 49 28 96.795700 sets 1 7 1 3 11 1650 2625 95 31 96.795700 forth5 1 7 1 3 12 1759 2625 176 38 94.988701 verbatim.3 1 7 2 0 0 762 2667 1321 104 -1 4 1 7 2 1 0 803 2667 1280 56 -1 5 1 7 2 1 1 803 2667 83 32 96.170135 Par.5 1 7 2 1 2 910 2670 28 30 88.897926 3.5 1 7 2 1 3 963 2669 44 32 96.561501 In5 1 7 2 1 4 1027 2670 58 31 96.970451 thes 1 7 2 1 5 1106 2682 117 22 96.221748 courses 1 7 2 1 6 1245 2672 69 32 96.221748 ands 1 7 2 1 7 1335 2674 146 31 96.732269 conducts 1 7 2 1 8 1500 2674 40 33 96.869270 of5 1 7 2 1 9 1560 2675 90 32 96.637032 theirs 1 7 2 1 10 1671 2675 151 33 96.662628 business5 1 7 2 1 11 1843 2687 37 22 96.501900 as5 1 7 2 1 12 1900 2673 183 50 96.803253 aforesaid,4 1 7 2 2 0 762 2719 1321 52 -1 5 1 7 2 2 1 762 2719 223 44 96.202858 respondents5 1 7 2 2 2 1000 2731 76 21 96.880615 now5 1 7 2 2 3 1092 2732 107 30 96.853668 cause,5 1 7 2 2 4 1216 2724 68 32 96.614998 ands 1 7 2 2 5 1300 2723 58 32 96.889221 for5 1 7 2 2 6 1370 2734 92 22 96.889221 some5 1 7 2 2 7 1477 2725 82 32 96.472603 times 1 7 2 2 8 1574 2726 66 32 96.619766 lasts 1 7 2 2 9 1654 2730 78 37 96.619766 past5 1 7 2 2 10 1745 2727 87 32 96.737671 have5 1 7 2 2 11 1846 2728 133 43 96.317696 caused,5 1 7 2 2 12 1993 2729 90 32 96.352859 their COLONIAL’ ENGINEERING CORP:,.ET.AL.. ... . .. 277 QB: Complaint:

said products when sold, to be shipped from their place of business in the Commonwealth of Massachusetts: to purchasers thereof located in various other States of the United States, and maintain, and at all 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 inducing the purchase of their products and installations, respondents have made, and are now making, numerous statements and representations through oral statements made by their salesmen and representatives with respect to the nature of their offer, their prices, time. limitations, : guarantees and performance: of their products.

Typical and illustrative of said statements. and representations but not all inclusive thereof, are the. following: | : Guaranteed for the life of the house.

The cost of heating your home will be cut in half. hy We'll pay you $100 for every customer obtained as .a result of viewing your. home.

We can give you a special reduced price » because we want to use your home for advertising purposes.

Par. 5. By and through the use of the aforesaid statements and representations, and others of similar import and meaning, but not expressly set out herein, in connection with the. oral statements and representations of their salesmen and representatives, the respondents have represented, and are now Tepresenting, directly or by implication that:

1. Respondents’ representatives or salesmen, soliciting the sale of products and installations are officers, co-owners, owners, or advertising representatives of the corporate respondent, or representatives of -or connected or affiliated with the manufacturers of respondents’ products.

2. Respondents’ products and installations are being offered for sale at special or reduced prices, and that savings are thereby afforded purchasers from respondents’ regular selling prices. 3. Homes of prospective purchasers had been specially selected as model homes for the installation of respondents’ siding; after installation such homes would be used for demonstration and advertising purposes by respondents; and, as a result of allowing their homes to be used as models, purchasers would be granted reduced prices or would receive allowances, discounts or commissions. 4. The said offer of reduced prices must be accepted at once or within a limited time.

278 FEDERAL ‘TRADE. COMMISSION DECISIONS Complaint 81 E.T: Cc.

5. Doors, railings, shutters, gutters or other things of value selected by a purchaser in connection with the purchase of siding materials and the installation thereof are given free to such purchasers. 6. Respondents’ products and installations are unconditionally guaranteed, without condition or limitation, for life or for specific: terms of years.

7. The purchase and installation of respondents’ siding materials will result in a savings of up to 50 percent on the purchaser’s heating fuel expenses. .

Par. 6. In truth and in n fact:

_ 1. Respondents’ representatives or salesmen, soliciting the sale of. siding materials and: installations.are. not officers, co-owners, owners, or advertising representatives of or connected or affiliated with the manufacturers of respondents’ products. ~ 2. Respondents’ products and ‘installations are not being offered for sale at special or reduced prices, and savings are not granted respondents’ customers because of a reduction from respondents’ regular selling price. In fact, respondent. does not have a regular selling price but the. prices at which respondents’ said products and installations are sold vary from customer to customer depending on the resistance of the prospective purchaser.

3. Homes of prospective purchasers are not specially selected as model homes for installation of respondents’ products; after installa tion such homes are not used for demonstration and advertising purposes by respondents; and purchasers, as a result of allowing or agreeing to allow their homes to be used as models, are not granted reduced prices, nor do they receive allowances, discounts or commissions. 4. Respondents’ offer need not be accepted at once or within a limited time. Said merchandise is offered regularly at the represented prices and on the terms and conditions therein stated. 5. Doors, railings, shutters, gutters or other things of value selected by a purchaser are not given free with the purchase of siding materials and the installation thereof, but the prices of these products are included in the price of the siding materials and installations. 6. Respondents’ products and installations are not unconditionally guaranteed without condition or limitation for life or any specific term of years. Such guarantee as may be provided is subject to numerous terms, conditions and limitations and it fails to set forth the real nature and extent of the guarantee, the identity of the guarantor, and the manner in which the guarantor will perform thereunder. 7. All purchasers of respondents’ residential siding materials will not realize a savings of up to 50 percent in the cost of heating their residences. Few, if any, will realize such savings. COLONIAL ENGINEERING CORP., ET AL. - 279 275 Complaint Therefore, the statements and representations as set forth in Paragraphs Four and Five hereof were and are false, misleading and deceptive.

Par. 7. In the further course and conduct of their business, and in furtherance of a sales program for inducing the purchase of their home improvement products. and installations, including residential siding materials, respondents and their salesmen or representatives have engaged in the following additional unfair and false, misleading and deceptive acts and practices: .

1. In a substantial number of instances and in the usual course of their business, respondents sell, transfer or assign their customers’ ~ obligations, procured by the aforesaid unfair, false, misleading and deceptive means, to various financial institutions. In any subsequent legal action to collect on such obligations, these financial institutions or other third parties, as a general rule, have available and can interpose various defenses which may cut off certain valid claims customers may have against respondents for failure to perform or for certain other unfair, false, misleading or deceptive acts and practices. 2. In a substantial number of instances through the use of false, misleading and deceptive statements and representations set out in Paragraphs Four and Five above, respondents have been able through high pressure sales tactics to induce customers into signing contracts with respondents on the respondents’ initial contact with the customers. In many cases the contracts signed are blank or incomplete at the time of signing. In such a situation, it is highly improbable that the customer was able to seek out advice or make an independent decision on whether or not he should enter into the contract and, therefore, had to rely heavily on the advice and information given to him by respondents.

Therefore, the acts and practices as set forth in Paragraph Seven hereof were and are unfair and false, misleading and deceptive acts and practices.

Par. 8. In the course and conduct of their aforesaid business, and at all times mentioned herein, respondents have been, and now are, in substantial competition, in commerce, with corporations, firms and individuals in the sale of home improvements, including residential siding, of the same general kind and nature as that sold by respondents. Par. 9. The use by the respondents 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 purchase 280. FEDERAL TRADE .COMMISSION DECISIONS Complaint: .. 81 F.T.C.

of substantial quantities of respondents products by. reason. of..said erroneous and mistaken belief. moss Par. 10. The aforesaid acts and practices of respondents, a 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 and deceptive acts and practices in. commerce in violation of Section 5 of the Federal Trade Commission Act. COUNT II 5 1 6 1 1 2 808 1062 161 51 60.202824 Alleging5 1 6 1 1 3 982 1072 166 34 96.596436 violations 1 6 1 1 4 1162 1055 39 51 96.596436 of5 1 6 1 1 5 1213 1074 59 33 95.708916 thes 1 6 1 1 6 1285 1076 113 32 95.541992 Truth5 1 6 1 1 7 1410 1077 44 32 95.541992 In5 1 6 1 1 8 1466 1077 160 45 95.700554 Lending5 1 6 1 1 9 1661 1041 2 2 95.700554 A5 1 6 1 1 10 1634 1042 72 82 83.130814 ‘Acct5 1 6 1 1 11 1717 1077 70 35 96.830513 ands 1 6 1 1 12 1799 1081 59 32 93.279922 thes 1 6 1 1 13 1868 1081 213 43 92.086426 implement-4 1 6 1 2 0 761 1122 1323 52 -1 5 1 6 1 2 1 761 1121 62 41 96.766685 ings 1 6 1 2 2 844 1122 196 41 96.670418 regulations 1 6 1 2 3 1062 1124 242 45 96.702644 promulgated5 1 6 1 2 4 1327 1127 216 42 96.295471 thereunder,5 1 6 1 2 5 1567 1125 77 43 96.295471 ands 1 6 1 2 6 1657 1125 41 43 95.864075 of5 1 6 1 2 7 1718 1130 60 43 96.734467 thes 1 6 1 2 8 1799 1131 147 33 96.998787 Federal5 1 6 1 2 9 1970 1132 114 42 96.543037 Trade4 1 6 1 3 0 760 1170 1322 58 -1 5 1 6 1 3 1 760 1170 229 48 96.563087 Commissions 1 6 1 3 2 1004 1173 78 42 96.330536 Act,5 1 6 1 3 3 1098 1175 60 32 96.330536 thes 1 6 1 3 4 1173 1175 204 46 96.436462 allegations5 1 6 1 3 5 1393 1178 41 46 96.981407 of5 1 6 1 3 6 1450 1171 222 57 96.262756 Paragraphs5 1 6 1 3 7 1687 1170 75 44 96.965096 Ones 1 6 1 3 8 1775 1176 73 38 96.161430 ands 1 6 1 3 9 1863 1183 85 32 96.751617 Two5 1 6 1 3 10 1963 1174 119 41 94.948822 hereof4 1 6 1 4 0 760 1222 1324 73 -1 5 1 6 1 4 1 760 1232 58 22 95.579918 ares 1 6 1 4 2 845 1223 240 43 95.579918 incorporated5 1 6 1 4 3 1106 1226 54 58 96.550331 by5 1 6 1 4 4 1188 1224 178 63 96.469795 references 1 6 1 4 5 1382 1228 43 43 93.986427 in5 1 6 1 4 6 1453 1222 132 70 57.355209 Counts 1 6 1 4 7 1582 1225 67 64 4.126060 Tm5 1 6 1 4 8 1661 1233 41 43 96.752502 as5 1 6 1 4 9 1720 1228 41 61 89.130447 if5 1 6 1 4 10 1776 1228 105 67 69.525040 fully5 1 6 1 4 11 1908 1238 65 54 21.990417 set.5 1 6 1 4 12 1978 1228 106 65 83.173904 forth4 1 6 1 5 0 759 1269 665 37 -1 5 1 6 1 5 1 759 1269 177 37 67.658203 vérbatim,3 1 6 2 0 0 754 1306 1335 367 -1 4 1 6 2 1 0 790 1306 1299 74 -1 5 1 6 2 1 1 790 1323 92 33 73.661697 ‘Par.5 1 6 2 1 2 906 1326 47 30 94.728035 11.5 1 6 2 1 3 976 1323 44 34 96.363289 In5 1 6 2 1 4 1040 1325 59 35 96.473190 thes 1 6 2 1 5 1119 1306 157 74 96.603455 ordinary5 1 6 2 1 6 1303 1310 16 23 37.951874 ©5 1 6 2 1 7 1305 1327 118 47 95.058075 courses 1 6 2 1 8 1441 1325 75 37 92.070976 ands 1 6 2 1 9 1527 1324 154 55 44.917301 conduct:5 1 6 2 1 10 1693 1331 40 33 96.778717 of5 1 6 2 1 11 1751 1329 93 36 97.002960 theirs 1 6 2 1 12 1861 1320 174 60 78.997803 business,5 1 6 2 1 13 2033 1328 56 39 56.999954 ‘as.4 1 6 2 2 0 756 1369 1330 59 -1 5 1 6 2 2 1 756 1373 185 50 96.032112 aforesaid,5 1 6 2 2 2 959 1377 236 42 50.919579 respondents’5 1 6 2 2 3 1197 1369 192 59 89.897324 regularly5 1 6 2 2 4 1390 1371 128 45 94.680481 extends 1 6 2 2 5 1534 1385 42 28 94.680481 or5 1 6 2 2 6 1591 1377 147 51 96.516548 arranges 1 6 2 2 7 1754 1377 59 39 96.888016 for5 1 6 2 2 8 1829 1384 57 32 96.781204 thes 1 6 2 2 9 1903 1379 183 50 87.783371 extension:4 1 6 2 3 0 757 1419 1332 73 -1 5 1 6 2 3 1 757 1419 33 36 88.867538 of5 1 6 2 3 2 811 1420 12 3 26.375465 ¢5 1 6 2 3 3 817 1428 177 46 96.450920 consumers 1 6 2 3 4 1014 1425 124 43 96.593163 credit,5 1 6 2 3 5 1154 1428 69 33 96.037849 ands 1 6 2 3 6 1245 1425 58 49 96.037849 for5 1 6 2 3 7 1321 1423 93 39 93.242981 some5 1 6 2 3 8 1432 1426 92 50 91.764542 tinte5 1 6 2 3 9 1536 1431 83 48 54.252235 last:5 1 6 2 3 10 1623 1435 80 49 91.224266 past5 1 6 2 3 11 1720 1427 96 40 68.926331 have.5 1 6 2 3 12 1828 1420 188 72 87.350441 regularly5 1 6 2 3 13 2023 1427 66 42 87.363464 ex-4 1 6 2 4 0 755 1473 1329 58 -1 5 1 6 2 4 1 755 1467 126 51 94.014160 tended5 1 6 2 4 2 893 1471 41 36 96.345596 or5 1 6 2 4 3 948 1471 172 49 96.808121 arranged5 1 6 2 4 4 1134 1478 58 32 96.823433 for5 1 6 2 4 5 1204 1471 70 41 96.890404 thes 1 6 2 4 6 1277 1470 178 43 96.737885 extensions 1 6 2 4 7 1466 1474 44 51 95.893692 of5 1 6 2 4 8 1519 1477 177 44 95.893692 consumers 1 6 2 4 9 1708 1477 127 39 96.254372 credits 1 6 2 4 10 1831 1486 37 32 96.747971 as5 1 6 2 4 11 1881 1476 203 55 96.339264 “consumer4 1 6 2 5 0 754 1500 1323 82 -1 5 1 6 2 5 1 754 1509 153 48 96.569916 credit”5 1 6 2 5 2 898 1537 30 22 96.867142 is5 1 6 2 5 3 942 1500 124 73 96.940536 defined5 1 6 2 5 4 1084 1528 16 20 85.708878 i5 1 6 2 5 5 1091 1529 36 31 96.770348 in5 1 6 2 5 6 1132 1518 218 62 80.555855 ‘Regulations 1 6 2 5 7 1358 1527 42 45 65.956253 Z,5 1 6 2 5 8 1412 1521 62 43 96.914345 thes 1 6 2 5 9 1480 1524 276 56 86.400101 implementing.5 1 6 2 5 10 1760 1528 183 54 94.482788 regulations 1 6 2 5 11 1957 1529 13 11 39.338188 |5 1 6 2 5 12 1967 1535 39 34 96.919846 of5 1 6 2 5 13 2018 1527 59 42 96.947136 thea 1 6 2 6 0 754 1556 1332 85 -1 5 1 6 2 6 1 754 1569 124 39 95.192062 Truth5 1 6 2 6 2 882 1577 44 31 95.192062 In5 1 6 2 6 3 941 1578 161 42 96.329185 Lending5 1 6 2 6 4 1117 1579 81 41 96.777046 Act,5 1 6 2 6 5 1210 1573 85 54 96.308731 duly5 1 6 2 6 6 1309 1556 242 84 79.533676 proinulgated5 1 6 2 6 7 1565 1578 47 60 96.940643 by5 1 6 2 6 8 1624 1581 59 48 95.843147 thes 1 6 2 6 9 1695 1581 119 48 95.843147 Boards 1 6 2 6 10 1828 1580 39 37 97.004013 of5 1 6 2 6 11 1882 1579 204 62 69.171341 Governors.4 1 6 2 7 0 754 1605 602 68 -1 5 1 6 2 7 1 754 1619 44 39 96.868454 of5 1 6 2 7 2 802 1627 91 32 96.770401 thes 1 6 2 7 3 880 1627 143 33 96.927650 Federal5 1 6 2 7 4 1029 1627 147 35 96.516113 Reserves 1 6 2 7 5 1186 1605 147 68 82.900108 System.3 1 6 3 0 0 750 1653 1324 268 -1 4 1 6 3 1 0 794 1653 1280 78 -1 5 1 6 3 1 1 794 1677 82 32 92.937714 Par.5 1 6 3 1 2 899 1680 48 30 96.089775 12.5 1 6 3 1 3 970 1678 214 43 95.679199 Subsequent5 1 6 3 1 4 1203 1684 36 29 95.679199 to5 1 6 3 1 5 1258 1683 85 41 96.803246 July5 1 6 3 1 6 1364 1684 29 39 96.424980 1,5 1 6 3 1 7 1414 1685 91 39 96.859932 1969,5 1 6 3 1 8 1526 1653 230 78 95.593742 respondents,5 1 6 3 1 9 1780 1686 6 5 88.810150 i5 1 6 3 1 10 1777 1697 37 21 96.317657 in5 1 6 3 1 11 1834 1686 57 33 96.669769 thes 1 6 3 1 12 1909 1668 165 62 95.923393 ordinary4 1 6 3 2 0 752 1708 1322 62 -1 5 1 6 3 2 1 752 1738 117 22 96.444725 courses 1 6 3 2 2 881 1729 68 32 96.780945 ands 1 6 3 2 3 961 1730 147 32 96.684593 conducts 1 6 3 2 4 1120 1731 38 32 96.298225 of5 1 6 3 2 5 1170 1731 92 33 96.914223 theirs 1 6 3 2 6 1272 1708 152 57 95.796959 business5 1 6 3 2 7 1435 1734 90 32 95.328140 ands 1 6 3 2 8 1516 1746 36 21 95.328140 in5 1 6 3 2 9 1564 1736 196 39 96.779068 connections 1 6 3 2 10 1771 1737 86 32 96.811844 with5 1 6 3 2 11 1868 1738 110 32 96.533188 credits 1 6 3 2 12 1988 1739 86 31 96.922127 sales4 1 6 3 3 0 753 1778 1321 51 -1 5 1 6 3 3 1 753 1788 36 21 96.768097 as5 1 6 3 3 2 805 1778 129 33 94.981773 “credits 1 6 3 3 3 949 1780 131 32 96.813454 sales”5 1 6 3 3 4 1073 1792 28 20 96.832443 is5 1 6 3 3 5 1116 1781 158 34 96.935837 defined5 1 6 3 3 6 1266 1794 36 20 96.642960 in5 1 6 3 3 7 1318 1783 138 34 96.913933 Sections 1 6 3 3 8 1469 1787 94 30 93.305618 226.25 1 6 3 3 9 1583 1785 56 42 91.727661 (n)5 1 6 3 3 10 1660 1786 40 32 96.480080 of5 1 6 3 3 11 1714 1788 208 41 93.305534 Regulations 1 6 3 3 12 1936 1789 37 40 92.270424 Z,5 1 6 3 3 13 1987 1788 87 33 96.842178 have4 1 6 3 4 0 751 1829 1323 45 -1 5 1 6 3 4 1 751 1829 122 32 96.917267 caused5 1 6 3 4 2 892 1830 69 32 96.369667 ands 1 6 3 4 3 982 1842 58 21 96.800453 ares 1 6 3 4 4 1059 1832 142 42 96.397209 causing5 1 6 3 4 5 1219 1833 92 33 96.545425 theirs 1 6 3 4 6 1330 1838 183 29 96.675507 customers5 1 6 3 4 7 1533 1839 35 29 96.586449 to5 1 6 3 4 8 1586 1840 137 29 95.853241 executes 1 6 3 4 9 1741 1837 102 32 96.587158 retails 1 6 3 4 10 1861 1838 213 34 96.541458 installment4 1 6 3 5 0 750 1881 1011 40 -1 5 1 6 3 5 1 750 1882 179 39 96.271027 contracts,5 1 6 3 5 2 952 1881 213 33 96.316391 hereinafter5 1 6 3 5 3 1186 1883 153 34 96.450081 referred5 1 6 3 5 4 1361 1888 36 29 95.477242 to5 1 6 3 5 5 1420 1896 37 22 63.551678 as:5 1 6 3 5 6 1477 1886 79 32 68.517143 “thes 1 6 3 5 7 1578 1888 183 31 96.562859 contract.”3 1 6 4 0 0 748 1930 1324 86 -1 4 1 6 4 1 0 792 1930 1280 51 -1 5 1 6 4 1 1 792 1930 83 32 94.558609 Par.5 1 6 4 1 2 896 1933 48 30 96.542969 13.5 1 6 4 1 3 964 1932 53 42 96.882927 By5 1 6 4 1 4 1035 1934 69 32 96.356087 ands 1 6 4 1 5 1121 1934 151 42 96.723297 through5 1 6 4 1 6 1289 1935 58 32 96.657478 thes 1 6 4 1 7 1363 1947 59 21 96.913483 uses 1 6 4 1 8 1438 1936 39 32 96.997849 of5 1 6 4 1 9 1493 1937 59 32 96.885742 thes 1 6 4 1 10 1568 1941 162 38 95.794495 contract,5 1 6 4 1 11 1748 1939 234 42 95.794495 respondents,5 1 6 4 1 12 1999 1941 34 31 96.697372 in5 1 6 4 1 13 2051 1952 21 20 96.767441 a4 1 6 4 2 0 748 1981 399 35 -1 5 1 6 4 2 1 748 1981 143 33 95.983696 numbers 1 6 4 2 2 906 1982 40 32 96.958710 of5 1 6 4 2 3 961 1983 186 33 81.143074 instances:3 1 6 5 0 0 748 2032 1323 149 -1 4 1 6 5 1 0 793 2032 1278 51 -1 5 1 6 5 1 1 793 2033 27 30 78.407753 1.5 1 6 5 1 2 845 2032 101 33 96.714508 Have5 1 6 5 1 3 970 2033 109 33 96.853256 failed5 1 6 5 1 4 1102 2037 37 30 96.879478 to5 1 6 5 1 5 1162 2035 143 33 96.661644 discloses 1 6 5 1 6 1327 2037 58 32 96.823181 thes 1 6 5 1 7 1408 2037 79 33 96.894630 dates 1 6 5 1 8 1510 2049 46 22 96.427452 on5 1 6 5 1 9 1577 2039 113 32 96.973129 which5 1 6 5 1 10 1712 2040 58 32 96.528946 thes 1 6 5 1 11 1792 2040 132 33 96.333435 finances 1 6 5 1 12 1946 2041 125 42 96.903992 charge4 1 6 5 2 0 748 2082 1321 56 -1 5 1 6 5 2 1 748 2082 119 56 96.943649 begins5 1 6 5 2 2 884 2086 37 30 96.493439 to5 1 6 5 2 3 940 2094 119 22 96.646011 accrues 1 6 5 2 4 1077 2084 32 33 96.933578 if5 1 6 5 2 5 1128 2085 161 34 95.746834 different5 1 6 5 2 6 1309 2087 93 32 96.891525 from5 1 6 5 2 7 1420 2088 57 33 96.508125 thes 1 6 5 2 8 1497 2089 78 33 96.737923 dates 1 6 5 2 9 1592 2089 39 33 96.635925 of5 1 6 5 2 10 1649 2090 60 32 97.015976 thes 1 6 5 2 11 1725 2091 221 49 96.659828 transaction,5 1 6 5 2 12 1966 2103 36 22 93.095139 as5 1 6 5 2 13 2018 2103 51 22 92.753006 re-4 1 6 5 3 0 748 2133 955 48 -1 5 1 6 5 3 1 748 2133 119 41 96.757149 quired5 1 6 5 3 2 884 2134 47 42 96.757149 by5 1 6 5 3 3 949 2134 138 34 96.807114 Sections 1 6 5 3 4 1106 2138 93 31 93.201012 226.85 1 6 5 3 5 1225 2137 54 42 91.652229 (b)5 1 6 5 3 6 1310 2138 51 43 96.671265 (1)5 1 6 5 3 7 1387 2139 40 32 95.072876 of5 1 6 5 3 8 1445 2140 207 41 93.304642 Regulations 1 6 5 3 9 1669 2142 34 31 90.556557 Z.3 1 6 6 0 0 746 2185 1323 100 -1 4 1 6 6 1 0 788 2185 1281 49 -1 5 1 6 6 1 1 788 2186 29 29 96.525917 2.5 1 6 6 1 2 833 2185 102 32 96.727493 Have5 1 6 6 1 3 950 2185 109 33 96.704330 failed5 1 6 6 1 4 1073 2190 37 28 96.976402 to5 1 6 6 1 5 1126 2187 142 33 96.578194 discloses 1 6 6 1 6 1282 2189 57 32 96.904396 thes 1 6 6 1 7 1354 2189 131 33 96.904396 finances 1 6 6 1 8 1499 2190 124 43 96.783546 charges 1 6 6 1 9 1637 2193 180 41 96.781464 expressed5 1 6 6 1 10 1832 2203 36 21 96.781464 as5 1 6 6 1 11 1883 2203 44 21 96.846252 an5 1 6 6 1 12 1942 2194 127 33 96.304947 annual4 1 6 6 2 0 746 2237 1320 48 -1 5 1 6 6 2 1 746 2238 204 40 96.580070 percentages 1 6 6 2 2 964 2239 74 30 96.892120 rates 1 6 6 2 3 1052 2247 37 22 96.544586 as5 1 6 6 2 4 1105 2237 157 41 96.460899 required5 1 6 6 2 5 1276 2238 45 43 96.977600 by5 1 6 6 2 6 1336 2239 139 34 96.919472 Sections 1 6 6 2 7 1489 2243 92 31 93.089058 226.85 1 6 6 2 8 1603 2242 54 42 92.362350 (b)5 1 6 6 2 9 1684 2243 52 41 96.466690 (2)5 1 6 6 2 10 1757 2243 40 32 95.774498 of5 1 6 6 2 11 1810 2243 208 42 92.133484 Regulations 1 6 6 2 12 2032 2245 34 32 92.042419 Z.3 1 6 7 0 0 743 2286 1326 184 -1 4 1 6 7 1 0 788 2286 1281 47 -1 5 1 6 7 1 1 788 2287 29 30 93.581650 3.5 1 6 7 1 2 841 2286 100 33 95.758553 Have5 1 6 7 1 3 964 2286 109 34 96.551193 failed5 1 6 7 1 4 1096 2291 36 29 96.266808 to5 1 6 7 1 5 1153 2289 144 33 96.392609 discloses 1 6 7 1 6 1318 2290 59 33 96.713318 thes 1 6 7 1 7 1397 2292 153 41 96.242584 number,5 1 6 7 1 8 1573 2297 141 28 96.660446 amounts 1 6 7 1 9 1734 2293 69 33 96.675056 ands 1 6 7 1 10 1825 2295 64 31 93.332092 dues 1 6 7 1 11 1906 2282 98 55 95.229599 dates5 1 6 7 1 12 2028 2306 41 21 96.766891 or4 1 6 7 2 0 746 2335 1321 50 -1 5 1 6 7 2 1 746 2335 120 43 96.184692 periods 1 6 7 2 2 881 2337 39 32 96.983620 of5 1 6 7 2 3 936 2341 181 39 96.620811 payments5 1 6 7 2 4 1131 2339 182 34 96.959190 scheduled5 1 6 7 2 5 1329 2344 35 29 96.920631 to5 1 6 7 2 6 1380 2352 107 32 96.610748 repay5 1 6 7 2 7 1502 2343 57 32 96.928566 thes 1 6 7 2 8 1574 2343 249 42 96.574356 indebtedness,5 1 6 7 2 9 1837 2345 68 32 96.868271 ands 1 6 7 2 10 1920 2345 59 32 96.990196 thes 1 6 7 2 11 1993 2357 74 22 96.708420 sum4 1 6 7 3 0 745 2386 1318 53 -1 5 1 6 7 3 1 745 2386 39 33 96.541916 of5 1 6 7 3 2 804 2388 82 31 96.541916 such5 1 6 7 3 3 906 2392 190 39 96.837769 payments,5 1 6 7 3 4 1117 2400 37 22 96.904892 as5 1 6 7 3 5 1174 2391 157 41 96.137665 required5 1 6 7 3 6 1351 2392 45 42 96.137665 by5 1 6 7 3 7 1417 2392 139 34 96.798096 Sections 1 6 7 3 8 1575 2396 92 31 93.276100 226.85 1 6 7 3 9 1694 2394 53 45 93.085358 (b)5 1 6 7 3 10 1781 2395 53 42 96.575615 (3)5 1 6 7 3 11 1860 2395 38 32 93.149063 of5 1 6 7 3 12 1918 2397 145 40 92.999092 Regula-4 1 6 7 4 0 743 2436 131 34 -1 5 1 6 7 4 1 743 2436 75 34 93.113327 tions 1 6 7 4 2 839 2439 35 31 82.844284 Z.3 1 6 8 0 0 742 2489 1322 101 -1 4 1 6 8 1 0 784 2489 1280 50 -1 5 1 6 8 1 1 784 2491 30 30 88.733658 4.5 1 6 8 1 2 829 2489 100 33 96.769577 Have5 1 6 8 1 3 943 2490 109 33 96.851357 failed5 1 6 8 1 4 1065 2494 37 29 96.851357 to5 1 6 8 1 5 1115 2491 78 42 96.014679 gives 1 6 8 1 6 1207 2503 19 21 95.017838 a5 1 6 8 1 7 1240 2493 91 32 95.017838 clears 1 6 8 1 8 1343 2494 249 33 96.078064 identification5 1 6 8 1 9 1606 2496 38 32 96.926186 of5 1 6 8 1 10 1657 2497 58 31 96.545067 thes 1 6 8 1 11 1727 2500 164 39 97.015030 property5 1 6 8 1 12 1904 2501 36 29 96.933701 to5 1 6 8 1 13 1954 2498 110 32 96.979507 which4 1 6 8 2 0 742 2540 1322 50 -1 5 1 6 8 2 1 742 2549 69 32 96.917137 any5 1 6 8 2 2 826 2540 148 43 96.662361 security5 1 6 8 2 3 989 2540 142 34 96.841148 interests 1 6 8 2 4 1146 2543 122 32 95.690628 relates5 1 6 8 2 5 1283 2555 48 29 95.690628 or,5 1 6 8 2 6 1346 2545 32 31 95.824890 if5 1 6 8 2 7 1392 2545 82 33 95.824890 such5 1 6 8 2 8 1489 2551 164 38 96.662941 property5 1 6 8 2 9 1668 2547 28 32 96.987595 is5 1 6 8 2 10 1711 2551 60 28 96.783501 not5 1 6 8 2 11 1785 2547 221 43 96.295738 identifiable,5 1 6 8 2 12 2018 2560 46 21 96.295738 an3 1 6 9 0 0 728 2590 1369 151 -1 4 1 6 9 1 0 728 2590 1369 51 -1 5 1 6 9 1 1 728 2590 235 42 11.441231 explanations 1 6 9 1 2 976 2592 39 32 96.986855 of5 1 6 9 1 3 1027 2593 58 32 96.986855 thes 1 6 9 1 4 1095 2605 143 21 96.476768 manners 1 6 9 1 5 1249 2594 37 32 96.476768 in5 1 6 9 1 6 1297 2595 112 33 96.946419 which5 1 6 9 1 7 1420 2596 59 33 96.946419 thes 1 6 9 1 8 1489 2597 150 32 96.714447 creditors 1 6 9 1 9 1650 2597 127 33 96.506844 retains5 1 6 9 1 10 1789 2609 40 21 96.852203 or5 1 6 9 1 11 1839 2609 78 32 96.704796 may5 1 6 9 1 12 1929 2600 135 41 88.366631 acquires 1 6 9 1 13 2095 2630 2 2 35.044128 _4 1 6 9 2 0 742 2641 1331 54 -1 5 1 6 9 2 1 742 2651 19 20 96.122055 a5 1 6 9 2 2 783 2641 148 42 96.122055 security5 1 6 9 2 3 952 2641 142 35 96.270493 interests 1 6 9 2 4 1114 2644 36 32 96.489738 in5 1 6 9 2 5 1171 2645 82 32 96.617188 such5 1 6 9 2 6 1273 2650 166 39 96.820503 property5 1 6 9 2 7 1459 2647 113 33 96.828445 which5 1 6 9 2 8 1591 2648 58 32 96.342880 thes 1 6 9 2 9 1668 2648 150 32 95.959534 creditors 1 6 9 2 10 1837 2649 28 32 96.997620 is5 1 6 9 2 11 1884 2650 125 33 96.954437 unable5 1 6 9 2 12 2027 2654 46 41 93.400253 to4 1 6 9 3 0 742 2692 1200 49 -1 5 1 6 9 3 1 742 2692 160 42 96.821640 identify,5 1 6 9 3 2 919 2704 37 21 96.929466 as5 1 6 9 3 3 971 2694 158 41 96.865204 required5 1 6 9 3 4 1144 2695 46 42 96.807564 by5 1 6 9 3 5 1206 2695 137 34 96.520523 Sections 1 6 9 3 6 1358 2699 93 32 93.159927 226.85 1 6 9 3 7 1474 2698 55 42 93.066444 (b)5 1 6 9 3 8 1557 2698 52 43 96.407890 (5)5 1 6 9 3 9 1630 2698 40 33 96.721474 of5 1 6 9 3 10 1684 2699 208 42 93.016693 Regulations 1 6 9 3 11 1907 2701 35 32 90.495491 Z. COLONIAL ENGINEERING ‘CORP.,.ET AL‘ 281 275 ‘Complaint:. » .

5. Have failed to disclose the “cash price” of the preperty and/or service purchased, as required by Section 226:8. (c) (1) ‘of Regulation Z.

6. Have failed to disclose the amount of the, downpayment itemized ‘as downpayment in money and downpayment in property, as required by Section 226.8 (c) (2) of Regulation Z. 7. Have failed to disclose the “anpaid balance of cash price” as the difference between the amounts described as “cash price” and “total down payment,” as required by Section 226.8 (c) (3) of Regulation Z. 8. Have failed to disclose all other charges, individually itemized, which are included in the amount financed but are not part of the finance charge, as required by Section 226.8 (c) (4) of Regulation Z. 9. Have failed to disclose the sum of the “unpaid balance of the cash price” and all other charges included in the “amount financed” but which are not part of the “finance charge,” as required by Section . 226.8 (c) (5) of Regulation Z.

10. Have failed to disclose the “amount financed, ” as required by Section 226.8 (c) (7). of Regulation Z.

11. Have failed to disclose the total amount of the finance charge, as required by Section 226.8 (c) (8) (i) of Regulation Z. 12. Have failed to disclose the “deferred payment price” as the sum of the cash price, all other charges which are part of the amount financed but are not part of the finance charge, and the finance charge, as required by Section 226.8 (c) (8) (ii) of Regulation Z. 13. Have failed to furnish the customer with a duplicate of the instrument containing the disclosures required by Section 226.8 or a statement by which the required disclosures are made at the time those disclosures are made, as prescribed by Section 226.8 (a) of Regulation Z.

Par. 14. By and through the use of the contract respondents have in various instances induced and caused their customers to affix their signatures to such contracts prior to the completion and insertion of all terms and figures relevant to such contract. In such manner the respondents have failed to provide those disclosures required by Section 226.8 (a) (b) (c).

Par. 15. By and through the use of respondents’ contract to perform various home improvements, a security interest, as “security — interest” is defined in Section 226.2 (z) of Regulation Z, is or will be retained or acquired in real property which is used or expected to be used as the principal residence of respondents’ customers. Respondents’ retention or acquisition of such security interest in said real property thereby entitles his credit customers to be. given the right 4948417319 Decision and Order 81 F.T.C.

to rescind that transaction until midnight of- the third business day following the consummation of the transaction or the date of delivery of all the disclosures required by Regulation Z, whichever is later. Respondents have failed in a number of instances to provide their customers with a notice of the customers’ right to rescind as required -by Section 226.9 (b) of Regulation Z.

Par. 16. Pursuant to Section 103 (q) of the Truth i in Lending Act, respondents’ failures to comply with the. provisions of Regulation Z constitute violations of that Act.and, pursuant to Section 108 thereof, respondents thereby violated the Federal Trade Commission Act: DECISION AND 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 Boston Regional Office 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, the Truth in Lending Act, and regulations promulgated under the Truth j in Lending Act; 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 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 believe that the respondents have violated the said Acts, 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 Section 2.34(b) of its rules, the Commission issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Colonial Engineering Corporation is a corporation, organized, existing and doing business under and by virtue of the laws of the State of Maine, with its principal office and place of business. located at 78 Verge Street, Springfield, Massachusetts. COLONIAL ENGINEERING CORP., ET AL. 283 275 Decision and Order Respondent Stanley D. Saxby, (AKA S. Douglas Saxby) is an officer of the corporate respondent. He formulates, directs, and controls the policies, acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His address is the same as that of the corporate respondent. 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 I It is ordered, That respondents Colonial Engineering Corporation, a corporation, its successors and assigns, and its officers, and Stanley D. Saxby (AKA §S. Douglas Saxby) individually and as an officer of said corporation trading under said corporate name or any trade name or names, and respondents’ officers, agents, representatives, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with advertising, offering for sale, sale, — distribution or installation of residential siding materials or other home improvement products or services or other products in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing, directly or by implication, orally or in writing that:

(a) Respondents’ salesmen or representatives are officers, co-owners, owners or advertising representatives of the corporate respondent, or representatives of or connected or affiliated with the manufacturers of respondents’ products. (b) Any price for home improvement materials or other products or services, sold or installed by respondents, is a special or reduced price; unless respondents can affirmatively show that such price constitutes a significant reduction from the price at which respondents have sold or installed substantially similar home improvements, or other products or services, for a reasonably substantial period of time in the recent regular course of their business.

(c) The home of any of respondents’ customers or prospective customers has been selected to be used or will be used as a model home, or otherwise, for advertising or’ demonstration purposes.

(d) Any reduced price, allowance, discount or commission is granted by respondents to purchasers in return for permit- FEDERAL ‘TRADE COMMISSION DECISIONS Decision and Order 81 FTC.

'» ting or agreeing to allow the premises on which respondents’ products are: installed to be used for model home or for demonstration purposes. : — (e) Any offer to sell products and installations is limited in time or in any other manner unless any represented limitation or restriction is actually imposed and adhered to. - ‘(f) Doors, railings, shutters, gutters or other things. of value selected by a purchaser in connection with the purchase of siding materials and the installation thereof are given free to such purchasers.

(g) Any of respondents’ products and installations are guaranteed unless the nature, extent and duration of the guarantee, the identity of the guarantor and the manner in which the guarantor will perform thereunder are clearly and conspicuously disclosed; and unless respondents promptly and fully perform all of their obligations and requirements, directly or impliedly represented, under the terms of each such. . guarantee. -—. oe , (h) Purchasers of respondents’ siding materials and installations will realize any specific percentage or amount of savings, or that savings can be had generally in their heating fuel expenses.

2. Inducing or causing purchasers or prospective purchasers of respondents’ products or services to sign blank or partially completed retail installment contracts or other legal instruments or documents.

_ 3. Assigning, selling or otherwise transferring respondents’ notes, contracts or other documents evidencing a purchaser’s indebtedness, unless any rights or defenses which the purchaser has and may assert against respondents are preserved and may be asserted against any assignee or subsequent holder of such note, contract or other documents evidencing the indebtedness. 4. Failing to include the following statement clearly and conspicuously on the face of any note, contract or other instrument of indebtedness executed by or on behalf of respondents’ customers :

NOTICE Any holder takes this instrument subject to the terms and conditions of the contract which gave rise to the debt evidenced hereby, any contractual provision or other agreement to the contrary notwithstanding. 5, Contracting for any sale arising out of a door to door solicitation which shall become binding on the buyer prior to midnight COLONIAL: ENGINEERING CORP., ET. AL. 285: 275. Decision and. Order - of the third day, excluding. Sundays and, legal holidays, after the date of consummation:of the transaction.

6. (a) Failing to disclose to the buyers, in any sale ai arising out. of a door to. door solicitation, orally,. prior to the consummation of the sale, and in writing; on any conditional sales “contract, security agreement, promissory:-note or other, instrument executed by such buyer with such’ conspicuousness _ and clarity as is likely to be observed and read by: stich buyer, that the buyer may rescind: or. cancel-the sale by directing or mailing a notice of cancellation..to respondents’: address prior to. midnight of the third. day, excluding Sundays: and Jegal holidays, after the date of the sale. : (b) Upon such cancellation, the burden shall bec on: Lrespondents to collect-any goods left in ‘buyer’ shomeand to return any- ' payments received from the buyer. Nothing contained,in this right-to-cancel provision shall relieve buyers of the responsibility for. taking reasonable. care. ‘of: ‘the -goods: prior to cancellation. .:and » during: a: reasonable; period. following: cancellation. :

(ce) Failing to. provide a a separate. and clearly understandable form which the buyer may use as a ‘notice of cancellation. , (d) Failing to refund immediately all monies to customers who have requested contract cancellation in writing within three (3) days from the execution of such contract. II It is ordered, That respondents Colonial Engineering Corporation, a corporation, its successors and assigns, and its officers, and Stanley D. Saxby (AKA S. Douglas Saxby), individually and as an officer of the corporation, trading under the corporate name or trading or doing business under any other name or names, and respondents’ officers, agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with any extension of consumer credit or any advertisement to aid, promote or assist directly or indirectly any extension of consumer credit, as “consumer credit” and “advertisement” are defined in Regulation Z (12 C.F.R. § 226) of the Truth in Lending Act (Pub. L.’ 90-821, 15 USC 1601 e¢ seq.), do forthwith cease and desist from: & 1. Failing to disclose the date on which the finance charge begins to accrue when. that date is different from the date of the transaction, as required by Section 226.8(b) (1) of Regulation Z. 286.

FEDERAL TRADE: COMMISSION DECISIONS Decision and Order 81 VTC.

. 2, Failing to disclose the finance charge expressed as an annual percentage rate, as required by Section 226.8(b) (2) of Regulation Z. , 3. Failing to disclose the number, amount. and due dates or period of payments scheduled to repay the indebtedness, and the sum of such payments, as required by Section 226.8(b) (3) of Regulation Z. , oe a 4, Failing to give a clear identification of property to which - any security interest relates or, if such property is not identifiable, an explanation of the manner in which the creditor retains or may acquire a security interest: in such property ‘which the creditor is unable to identify, as required by Section 226.8(b) (5) of Regulation Z = a hoary 5. Failing to disclose the “cash price” of the property and/or _ service purchased, as required by Section 926.8(c) (1) of Regulation Z. - 6. Failing to disclose the amount of the downpayment, itemized as downpayment in money and downpayment in property, as required by Section 226.8(c) (2) of Regulation Z. %, Failing to disclose the “unpaid balance of cash price” as the difference between the amount described as “cash price” and “total downpayment” as required by Section 226.8(c) (3) of Regulation Z. , 8. Failing to disclose all other charges, individually itemized, which are included in the amount financed but are not part of the finance charge, as required by Section 226.8(c) (4) of Regulation Z.

9. Failing to disclose the sum of the “unpaid balance of the cash price” and all other charges included in the “amount financed” but which are not part of the “finance charge,” as required by Section 226.8(c) (5) of Regulation Z.

10. Failing to disclose the “amount financed,” as required by Section 226.8(c) (7) of Regulation Z.

11. Failing to disclose the total amount of the finance charge, as required by Section 226.8(c) (8) (i) of Regulation Z. (12) Failing to disclose the “deferred payment price” as the sum of the cash price, all other charges which are part of the amount financed but are not part of the finance charge, and the finance charge, as required by Section 226.8(c) (8) (it) of Regulation Z.

13. Failing to furnish the customer with a duplicate of the instrument containing the disclosures required by Section 226.8 COLONIAL- ENGINEERING CORP., ET. AL. 287. Decision and Order or a statement by which the-required disclosures are made at the time those disclosures are made, as prescribed by Section | 226. 8 (a) of Regulation Z. ;

14. Failing to give notice to the customer of his right to rescind. the transaction as required by Section 226.9(b) of Regulation Z, when all of the security interests in the customer’s principal residence which have been or will be retained or acquired have not been effectively. waived.

15. Failing, in any consumer credit transaction or advertise-' ‘ment, to make all disclosures, determined in accordance with Section 226.4 and Section 226.5 of Regulation .Z, in the manner, form, and amount required by Sections:226.6, 226.7, 226.8, 226.9, and 226.10 of Regulation. Z.

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 in which they have complied with this order. 288 FEDERAL TRADE COMMISSION: DECISIONS , Complaint © -: 81. F.T.C::-