Eastman Kodak Company

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

EASTMAN KODAK COMPANY ' CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-2291. Complaint, Sept. 28, 1972—Decision, Sept. 28, 1972. Consent order requiring a Rochester, New York, manufacturer of photographie equipment, among other things to cease misrepresenting used photographie equipment as new and failing to disclose the nature of,such products. 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 TradeSCommission, having reason to believe that Eastman Kodak Company, a corporation, hereinafter referred to as respondent, has 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:

Paracrary 1. Definitions: (1) Photographic Equipment: Photographic Equipment shall mean still and motion picture cameras and projectors, including attachments thereto and accessories used therewith, which are designed for and customarily sold for general amateur photographic purposes; (ii) Used Photographic Equipment: Photographic Equipment shall be considered used when it has been sold to and delivered to an ultimate consumer; when it has been utilized for the purpose for which it was intended or when it has been utilized for general demonstration purposes.

Par. 2. Eastman Kodak Company is a corporation organized, exist-. ing and doing business under and by virtue of the laws of the State of New Jersey, with its principal office and place of business located at: 848 State Street, Rochester, New York.

Par. 8. Respondent is now, and for some time past has been, engaged in the business of manufacturing, advertising for sale, sale and dis- 040 FEDERAL TRADE COMMISSION. DECISIONS Complaint - 81 FTC.

tribution of, as herein. defined, photographic equipment. to, retailers and others for resale to the public. , Par. 4. In the. course and conduct of its business, as; aforesaid, respondent, now causes, and for some time last past has caused, its products to be shipped from its place of business in the State of N ew _ York to purchasers thereof located.in the various other States of the United States and the District of Columbia. Respondent, therefore, maintains and at all times mentioned herein has maintained, a substantial course of trade in commerce, as “commerce” i is defined in the Federal Trade Commission Act.

Par..5. In connection. with its business as aforesaid, respondent provices and makes available various programs and services including but not limited to repair, refurbishment and repackaging services. By and through such programs and services, respondent has caused the repair, inspection, refurbishment. and/or.repackaging of certain of its photographic equipment. that has-been.used as:that term: is: herein: defined. Par: 6 In the’ course'and cotiduct’ of its: business, as’ aforesaid, respondent caused used photographic equipment which was returned 0 respondent for replacement or credit to be returned to respondent’s inventory, where:said. used. photographic. equipment. was intermingled with other photographic equipment returned to respondent’s inventory which had not been used. In intermingling respondent’s photographic equipment as aforesaid, said used photographic equipment could not thereafter accurately be identified or discerned. As a consequence thereof, used photographic equipment could not be distinguished or ascert ained from new photographic equipment that had been returned to respondent.

Pant 7. Certain quantities of photographic equipment from the aforesaid inventory were thereafter refurbished and/or repackaged. A quantity of the aforesaid refurbished and/or repackaged photographic equipment. were thereafter offered for sale, sold or distributed as new without any disclosure that such equipment has been used or may have been used.

Par. 8. The acts and practices of respondent as alleged in Paragraphs Six and Seven herein, including respondent’s failure to disclose the material fact that photographic equipment from such inventory which had been repaired, refurbished and/or repackaged was used or may have been used has the tendency and capacity to mis- _ lead a substantial portion of the purchasing public into the erroneous and mistaken belief that such photographic equipment was new and into the purchase of such photographic equipment by reason of such erroneous and mistaken belief.

““RASTMAN KODAK CO. 541 539 Decision and Order Therefore, the acts and practices of respondent including respondent’s failure to disclose material facts, as alleged herein, were and are unfair and are false, misleading, and deceptive. Par. 9. In the further course and conduct of its business as aforesaid, respondent has in certain instances caused used photographic equipment which respondent had reason to believe was used to be refurbished and/or repackaged and inspected at the behest of certain | of its customers which resell photographic equipment at wholesale and/or retail so that said photographic equipment has the appearance of new photographic equipment and then returned to said customers. Respondent thereby has furnished to such customers the means and instrumentalities by and through which such customers can deceive members of the purchasing public into the erroneous and mistaken belief that said used photographic equipment is new. Therefore, the acts and practices of respondent. as set forth hereinabove were and are unfair and are false, misleading and deceptive. Par. 10. By and through the use of the aforesaid acts and practices in commerce, respondent placed in the hands of certain of its customers which resell photographic equipment at wholesale and/or retail the means and instrumentalities by and through. which such customers may mislead and deceive the public in the manner and as to the things hereinabove alleged.

Par. 11. The aforesaid acts and practices of respondent. as herein alleged were and have been all to the prejudice and injury of the public and of respondent's competitors and constituted acts and practices in commerce in violation of Section 5 of the Federal Trade Commission Act.

Deciston ann Orper The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the captioned hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Bureau of Consumer Protection (regional office or bureau) proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent 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 respondent that the law has been violated as alleged in such complaint, ‘ 542 FEDERAL TRADE. COMMISSION . DECISIONS Decision and Order; 81 F.T.C.

and waivers and other provisions as required by the Commission’s rules; and Thes 1 3 2 1 2 885 661 227 48 96.211411 Commissions 1 3 2 1 3 1123 659 131 57 96.722702 having5 1 3 2 1 4 1264 653 192 63 95.800484 thereafter5 1 3 2 1 5 1458 644 204 69 96.515396 considered5 1 3 2 1 6 1670 651 59 59 97.006821 thes 1 3 2 1 7 1739 652 125 57 96.315071 matters 1 3 2 1 8 1866 639 77 74 88.090240 ands 1 3 2 1 9 1951 653 132 65 96.530586 having3 1 3 3 0 0 757 711 1332 616 -1 4 1 3 3 1 0 757 711 1328 58 -1 5 1 3 3 1 1 757 725 212 33 96.410126 determined5 1 3 3 1 2 995 725 78 33 96.384109 that5 1 3 3 1 3 1097 725 41 42 74.233536 it.5 1 3 3 1 4 1150 722 71 36 74.233536 had5 1 3 3 1 5 1248 735 120 22 96.223366 reasons 1 3 3 1 6 1393 728 38 32 95.217537 to5 1 3 3 1 7 1455 723 128 32 95.217537 believes 1 3 3 1 8 1608 720 77 34 95.336807 that5 1 3 3 1 9 1710 722 57 33 95.336807 thes 1 3 3 1 10 1791 711 190 58 92.041855 respondents 1 3 3 1 11 2001 716 12 38 50.865292 .5 1 3 3 1 12 2013 717 72 46 62.020977 has4 1 3 3 2 0 757 771 1327 45 -1 5 1 3 3 2 1 757 768 151 41 96.936813 violated5 1 3 3 2 2 931 777 70 37 96.872902 thes 1 3 3 2 3 1015 776 74 32 93.323807 said5 1 3 3 2 4 1114 765 80 51 90.201271 Act,5 1 3 3 2 5 1219 776 69 41 91.951996 ands 1 3 3 2 6 1312 776 79 31 91.951996 that5 1 3 3 2 7 1414 765 189 50 96.362457 complaints 1 3 3 2 8 1627 773 122 36 96.362457 should5 1 3 3 2 9 1772 773 89 39 96.909660 issues 1 3 3 2 10 1883 767 132 46 96.937416 stating5 1 3 3 2 11 2036 771 48 41 96.406586 its4 1 3 3 3 0 757 818 1323 55 -1 5 1 3 3 3 1 757 828 167 45 96.773834 charges5 1 3 3 3 2 916 839 37 21 97.006836 in5 1 3 3 3 3 968 829 79 34 96.513359 that5 1 3 3 3 4 1065 830 140 40 96.212662 respect,5 1 3 3 3 5 1223 827 69 32 96.542503 ands 1 3 3 3 6 1308 825 134 42 96.662781 having5 1 3 3 3 7 1457 825 192 47 96.678322 thereupon5 1 3 3 3 8 1665 819 178 46 96.505203 accepted5 1 3 3 3 9 1842 823 59 40 96.926170 thes 1 3 3 3 10 1918 818 162 41 96.055481 executed4 1 3 3 4 0 757 865 1327 65 -1 5 1 3 3 4 1 757 881 139 28 96.920921 consents 1 3 3 4 2 909 881 194 37 96.562553 agreements 1 3 3 4 3 1117 877 69 32 96.357635 ands 1 3 3 4 4 1200 869 121 49 96.520386 placed5 1 3 3 4 5 1334 876 84 45 96.997177 such5 1 3 3 4 6 1432 865 194 65 96.721985 agreements 1 3 3 4 7 1639 884 44 21 96.294998 on5 1 3 3 4 8 1694 873 59 33 96.294998 thes 1 3 3 4 9 1765 867 118 51 96.817635 public5 1 3 3 4 10 1888 867 124 44 96.817635 records 1 3 3 4 11 2025 872 59 40 96.963440 fora 1 3 3 5 0 758 923 1326 60 -1 5 1 3 3 5 1 758 938 20 21 96.537560 a5 1 3 3 5 2 794 927 120 47 96.537560 periods 1 3 3 5 3 928 929 40 31 96.961922 of5 1 3 3 5 4 979 926 112 43 97.011665 thirty5 1 3 3 5 5 1114 925 79 58 95.841171 (30)5 1 3 3 5 6 1208 927 96 44 96.892761 days,5 1 3 3 5 7 1318 938 78 31 96.805382 now5 1 3 3 5 8 1411 926 38 31 96.495903 in5 1 3 3 5 9 1463 925 137 32 96.899185 furthers 1 3 3 5 10 1612 918 211 48 96.452682 conformity5 1 3 3 5 11 1837 923 83 32 95.989326 with5 1 3 3 5 12 1932 920 61 34 91.649910 thes 1 3 3 5 13 2005 933 79 31 91.649910 pro-4 1 3 3 6 0 757 970 1327 69 -1 5 1 3 3 6 1 757 972 122 39 96.435104 cedures 1 3 3 6 2 904 970 196 69 95.618973 prescribed5 1 3 3 6 3 1123 978 37 32 92.755981 in5 1 3 3 6 4 1186 977 139 34 93.267891 Sections 1 3 3 6 5 1354 967 135 51 89.885094 2.34(b)5 1 3 3 6 6 1521 976 38 32 94.842110 of5 1 3 3 6 7 1583 975 46 39 94.842110 its5 1 3 3 6 8 1651 975 100 46 96.458870 rules,5 1 3 3 6 9 1774 974 59 32 96.917587 thes 1 3 3 6 10 1856 972 228 37 96.544563 Commission4 1 3 3 7 0 757 1024 1323 64 -1 5 1 3 3 7 1 757 1024 114 64 95.247162 hereby5 1 3 3 7 2 891 1029 20 42 95.247162 i5 1 3 3 7 3 902 1040 105 22 96.565971 issues5 1 3 3 7 4 1027 1028 44 33 96.863029 its5 1 3 3 7 5 1087 1023 201 47 96.382256 complaint,5 1 3 3 7 6 1308 1028 116 32 96.755661 makes5 1 3 3 7 7 1441 1027 60 32 96.911583 thes 1 3 3 7 8 1522 1025 181 43 96.931282 following5 1 3 3 7 9 1720 1019 253 48 93.254272 jurisdictional5 1 3 3 7 10 1993 1024 87 32 92.151688 find-4 1 3 3 8 0 758 1077 681 43 -1 5 1 3 3 8 1 758 1078 87 42 96.566528 ings,5 1 3 3 8 2 857 1080 69 32 96.865372 ands 1 3 3 8 3 936 1074 111 38 96.933578 enters5 1 3 3 8 4 1057 1079 58 32 96.339439 thes 1 3 3 8 5 1126 1077 184 42 96.220772 following5 1 3 3 8 6 1320 1078 119 32 90.922455 order:4 1 3 3 9 0 757 1113 1325 61 -1 5 1 3 3 9 1 757 1172 3 2 60.260948 _5 1 3 3 9 2 800 1131 27 30 77.067795 1.5 1 3 3 9 3 850 1127 223 43 96.180298 Respondents 1 3 3 9 4 1096 1129 169 37 96.366791 Eastman5 1 3 3 9 5 1289 1128 129 33 95.716019 Kodak5 1 3 3 9 6 1443 1127 179 42 96.703133 Company5 1 3 3 9 7 1646 1126 31 32 95.277962 is5 1 3 3 9 8 1700 1123 21 35 96.487869 a5 1 3 3 9 9 1742 1113 219 54 96.948685 corporations 1 3 3 9 10 1984 1136 98 31 92.604279 orga-4 1 3 3 10 0 758 1174 1327 47 -1 5 1 3 3 10 1 758 1180 110 41 96.202271 nized,5 1 3 3 10 2 881 1180 153 41 95.756294 existing5 1 3 3 10 3 1048 1180 69 32 96.561378 ands 1 3 3 10 4 1134 1179 107 42 96.710419 doing5 1 3 3 10 5 1259 1178 154 37 96.650093 business5 1 3 3 10 6 1427 1175 110 35 96.753250 under5 1 3 3 10 7 1551 1177 69 32 96.975258 ands 1 3 3 10 8 1634 1174 46 45 96.715683 by5 1 3 3 10 9 1694 1176 111 33 96.870369 virtues 1 3 3 10 10 1820 1176 40 33 96.969131 of5 1 3 3 10 11 1872 1176 59 32 96.502586 thes 1 3 3 10 12 1945 1176 82 32 96.246597 laws5 1 3 3 10 13 2042 1175 43 42 96.994095 of4 1 3 3 11 0 759 1201 1330 74 -1 5 1 3 3 11 1 759 1230 57 32 96.942467 thes 1 3 3 11 2 832 1205 96 59 96.939415 States 1 3 3 11 3 943 1230 40 33 96.205566 of5 1 3 3 11 4 997 1231 82 32 96.393784 News 1 3 3 11 5 1093 1231 133 41 96.464859 Jersey,5 1 3 3 11 6 1217 1201 110 74 27.069389 with5 1 3 3 11 7 1339 1229 47 32 96.673431 its5 1 3 3 11 8 1399 1229 90 32 95.799019 offices 1 3 3 11 9 1502 1228 70 32 96.708961 ands 1 3 3 11 10 1585 1226 172 43 95.788429 principals 1 3 3 11 11 1771 1227 97 41 90.763084 places 1 3 3 11 12 1879 1227 40 32 96.691277 of5 1 3 3 11 13 1930 1226 159 33 96.548370 business.4 1 3 3 12 0 758 1278 914 49 -1 5 1 3 3 12 1 758 1282 132 45 96.130821 located5 1 3 3 12 2 901 1285 36 29 95.967140 at5 1 3 3 12 3 946 1284 61 30 82.691544 3435 1 3 3 12 4 1019 1281 98 36 96.636452 States 1 3 3 12 5 1128 1281 129 40 96.966583 Street,5 1 3 3 12 6 1264 1280 196 40 96.451485 Rochester,5 1 3 3 12 7 1469 1280 85 31 96.442093 News 1 3 3 12 8 1566 1278 106 33 96.442093 York.3 1 3 4 0 0 758 1305 1328 171 -1 4 1 3 4 1 0 799 1305 1287 72 -1 5 1 3 4 1 1 799 1334 29 30 94.144951 2.5 1 3 4 1 2 851 1331 75 34 96.562904 Thes 1 3 4 1 3 945 1327 151 44 94.190903 Federal5 1 3 4 1 4 1111 1331 130 32 95.898270 Trades 1 3 4 1 5 1247 1330 235 35 94.754379 Commissions 1 3 4 1 6 1495 1329 64 32 60.163383 has.5 1 3 4 1 7 1576 1322 226 48 60.163383 jurisdiction.5 1 3 4 1 8 1820 1328 44 32 95.829048 of5 1 3 4 1 9 1876 1328 62 31 96.949722 thes 1 3 4 1 10 1949 1305 137 72 96.918022 subject4 1 3 4 2 0 759 1378 1325 45 -1 5 1 3 4 2 1 755 1386 130 37 96.823921 matters 1 3 4 2 2 902 1375 39 39 96.899261 of5 1 3 4 2 3 957 1382 72 32 96.899261 this5 1 3 4 2 4 1045 1382 208 41 96.727707 proceedings 1 3 4 2 5 1270 1381 68 32 96.722878 ands 1 3 4 2 6 1354 1382 41 31 96.849045 of5 1 3 4 2 7 1410 1381 59 32 96.859375 thes 1 3 4 2 8 1486 1379 217 42 96.882088 respondent,5 1 3 4 2 9 1721 1379 67 31 96.581497 ands 1 3 4 2 10 1804 1379 60 31 96.837303 thes 1 3 4 2 11 1878 1378 206 49 96.058525 proceeding4 1 3 4 3 0 758 1433 429 43 -1 5 1 3 4 3 1 758 1434 29 32 95.172684 is5 1 3 4 3 2 796 1434 37 32 95.172684 in5 1 3 4 3 3 844 1434 58 32 96.291222 thes 1 3 4 3 4 912 1425 116 51 96.869270 public5 1 3 4 3 5 1039 1433 148 49 95.286339 interest.3 1 3 5 0 0 1369 1493 105 22 -1 4 1 3 5 1 0 1369 1493 105 22 -1 5 1 3 5 1 1 1369 1493 105 22 96.600243 ORDER2 1 4 0 0 0 743 1558 1344 1189 -1 3 1 4 1 0 0 800 1558 1151 50 -1 4 1 4 1 1 0 800 1558 1151 50 -1 5 1 4 1 1 1 800 1568 44 31 96.922066 In5 1 4 1 1 2 864 1567 70 33 96.575974 this5 1 4 1 1 3 952 1568 110 40 96.637810 order,5 1 4 1 1 4 1080 1567 59 32 97.020432 thes 1 4 1 1 5 1158 1558 182 50 96.507034 following5 1 4 1 1 6 1357 1566 197 32 96.990067 definitions5 1 4 1 1 7 1571 1564 89 33 96.784225 shall5 1 4 1 1 8 1677 1564 42 32 96.842880 be5 1 4 1 1 9 1734 1564 217 42 54.739288 applicable:3 1 4 2 0 0 757 1614 1329 197 -1 4 1 4 2 1 0 807 1614 1279 45 -1 5 1 4 2 1 1 807 1618 45 41 96.704483 (i)5 1 4 2 1 2 882 1617 259 42 96.409546 Photographic5 1 4 2 1 3 1158 1617 214 42 93.936050 equipment:5 1 4 2 1 4 1392 1615 259 42 96.494934 Photographic5 1 4 2 1 5 1668 1615 196 43 96.431992 equipments 1 4 2 1 6 1879 1614 90 32 95.290833 shall5 1 4 2 1 7 1986 1625 100 21 95.309776 mean4 1 4 2 2 0 757 1665 1327 44 -1 5 1 4 2 2 1 757 1668 74 32 96.042053 still5 1 4 2 2 2 856 1669 68 32 94.323112 ands 1 4 2 2 3 950 1668 130 33 96.234650 motions 1 4 2 2 4 1105 1668 134 41 96.539909 pictures 1 4 2 2 5 1261 1678 152 22 96.522392 cameras5 1 4 2 2 6 1437 1666 68 32 95.242050 ands 1 4 2 2 7 1530 1666 199 41 95.431679 projectors,5 1 4 2 2 8 1751 1665 180 42 93.267799 including5 1 4 2 2 9 1952 1665 132 32 92.017899 attach-4 1 4 2 3 0 759 1716 1325 44 -1 5 1 4 2 3 1 759 1722 110 30 96.821846 ments5 1 4 2 3 2 881 1719 143 41 96.054398 thereto,5 1 4 2 3 3 1036 1719 112 32 96.772102 which5 1 4 2 3 4 1161 1730 59 20 96.867378 ares 1 4 2 3 5 1231 1718 164 42 96.305023 designed5 1 4 2 3 6 1408 1718 58 31 96.489693 for5 1 4 2 3 7 1479 1717 69 32 96.994720 ands 1 4 2 3 8 1560 1716 221 42 96.281418 customarily5 1 4 2 3 9 1792 1716 75 32 96.736031 sold5 1 4 2 3 10 1879 1716 56 31 96.736031 for5 1 4 2 3 11 1945 1716 139 41 96.368507 general4 1 4 2 4 0 760 1770 604 41 -1 5 1 4 2 4 1 760 1773 154 29 96.749084 amateur5 1 4 2 4 2 926 1770 252 41 95.725471 photographic5 1 4 2 4 3 1191 1780 173 31 95.323387 purposes.3 1 4 3 0 0 760 1816 1327 299 -1 4 1 4 3 1 0 808 1816 1276 46 -1 5 1 4 3 1 1 808 1820 58 41 39.528023 (11)5 1 4 3 1 2 896 1821 94 33 96.454987 Used5 1 4 3 1 3 1009 1820 254 42 96.041473 photographic5 1 4 3 1 4 1278 1819 215 41 96.218483 equipment:5 1 4 3 1 5 1510 1817 258 42 96.723770 Photographic5 1 4 3 1 6 1783 1816 197 42 96.730713 equipments 1 4 3 1 7 1996 1816 88 32 95.927597 shall4 1 4 3 2 0 760 1867 1326 37 -1 5 1 4 3 2 1 760 1871 40 32 96.966362 be5 1 4 3 2 2 812 1871 197 33 96.630272 considered5 1 4 3 2 3 1021 1872 81 31 96.629059 used5 1 4 3 2 4 1116 1871 98 32 96.329369 when5 1 4 3 2 5 1225 1870 29 33 96.979080 it5 1 4 3 2 6 1265 1872 62 30 96.939705 has5 1 4 3 2 7 1338 1871 83 32 96.932487 been5 1 4 3 2 8 1432 1869 74 33 96.836868 sold5 1 4 3 2 9 1517 1873 36 28 96.879875 to5 1 4 3 2 10 1566 1868 68 32 93.284065 ands 1 4 3 2 11 1645 1867 172 33 39.336586 delvered5 1 4 3 2 12 1826 1872 37 27 96.342842 to5 1 4 3 2 13 1873 1878 43 21 96.342842 an5 1 4 3 2 14 1927 1867 159 32 95.848228 ultimate4 1 4 3 3 0 760 1917 1327 45 -1 5 1 4 3 3 1 760 1932 176 22 96.328468 consumers 1 4 3 3 2 953 1922 111 32 96.126122 unless5 1 4 3 3 3 1086 1922 207 40 95.734253 respondents 1 4 3 3 4 1310 1932 64 21 95.734253 cans 1 4 3 3 5 1391 1920 164 33 96.077110 establish5 1 4 3 3 6 1572 1920 76 31 96.531914 that5 1 4 3 3 7 1663 1919 59 31 96.472984 thes 1 4 3 3 8 1739 1917 155 34 96.794403 ultimate5 1 4 3 3 9 1909 1929 178 21 96.005615 consumer4 1 4 3 4 0 761 1968 1326 46 -1 5 1 4 3 4 1 761 1972 60 33 96.850288 has5 1 4 3 4 2 836 1977 60 28 96.290085 not5 1 4 3 4 3 909 1973 82 32 96.599625 used5 1 4 3 4 4 1005 1972 58 33 96.894890 thes 1 4 3 4 5 1075 1971 147 43 96.842117 products 1 4 3 4 6 1236 1972 57 32 96.883667 for5 1 4 3 4 7 1306 1972 58 32 96.883560 thes 1 4 3 4 8 1378 1981 165 33 96.817612 purposes5 1 4 3 4 9 1556 1971 58 31 96.483994 for5 1 4 3 4 10 1626 1969 112 33 96.808296 which5 1 4 3 4 11 1749 1968 29 33 96.913506 it5 1 4 3 4 12 1789 1979 70 22 96.921089 was5 1 4 3 4 13 1871 1968 162 33 96.464584 intended5 1 4 3 4 14 2046 1980 41 20 96.464584 or4 1 4 3 5 0 760 2019 1326 46 -1 5 1 4 3 5 1 760 2023 97 32 95.618149 when5 1 4 3 5 2 887 2023 59 32 95.618149 thes 1 4 3 5 3 976 2022 255 43 96.160782 photographic5 1 4 3 5 4 1261 2022 198 42 95.953651 equipments 1 4 3 5 5 1487 2022 62 31 95.953651 has5 1 4 3 5 6 1579 2020 82 33 96.639786 been5 1 4 3 5 7 1691 2019 141 33 96.615204 utilized5 1 4 3 5 8 1863 2019 56 51 96.926193 for5 1 4 3 5 9 1947 2019 139 42 96.898605 general4 1 4 3 6 0 760 2074 458 41 -1 5 1 4 3 6 1 760 2074 269 33 95.648315 demonstrations 1 4 3 6 2 1044 2085 174 30 96.314148 purposes.3 1 4 4 0 0 762 2101 1325 115 -1 4 1 4 4 1 0 802 2101 1284 64 -1 5 1 4 4 1 1 802 2125 36 31 91.128792 It5 1 4 4 1 2 854 2126 29 31 91.576721 is5 1 4 4 1 3 901 2125 152 40 95.623184 ordered,5 1 4 4 1 4 1071 2125 92 40 96.680275 That5 1 4 4 1 5 1183 2124 206 41 96.380119 respondents 1 4 4 1 6 1405 2124 169 31 96.033089 Eastman5 1 4 4 1 7 1588 2121 127 33 96.033089 Kodak5 1 4 4 1 8 1732 2121 187 45 96.123779 Company,5 1 4 4 1 9 1934 2132 21 20 96.984840 a5 1 4 4 1 10 1969 2101 117 62 92.060417 corpo-4 1 4 4 2 0 762 2172 1325 44 -1 5 1 4 4 2 1 762 2174 122 42 96.651001 ration,5 1 4 4 2 2 905 2176 69 32 96.342720 ands 1 4 4 2 3 993 2175 46 32 96.342720 its5 1 4 4 2 4 1059 2175 135 40 96.461166 officers,5 1 4 4 2 5 1214 2185 186 29 96.824783 successors5 1 4 4 2 6 1419 2171 40 35 96.515800 or5 1 4 4 2 7 1477 2173 133 42 96.607178 assigns5 1 4 4 2 8 1628 2173 69 31 91.734642 ands 1 4 4 2 9 1717 2172 231 41 92.272453 respondent’s5 1 4 4 2 10 1968 2175 119 38 96.870766 agents3 1 4 5 0 0 743 2221 1344 242 -1 4 1 4 5 1 0 743 2221 1344 48 -1 5 1 4 5 1 1 743 2227 84 31 71.552200 ‘ands 1 4 5 1 2 860 2226 201 43 95.363197 employees,5 1 4 5 1 3 1093 2226 146 41 96.901253 directly5 1 4 5 1 4 1271 2237 39 20 96.168259 or5 1 4 5 1 5 1339 2225 154 41 96.389870 through5 1 4 5 1 6 1525 2235 67 31 96.517044 any5 1 4 5 1 7 1622 2223 230 41 96.505836 corporation,5 1 4 5 1 8 1882 2221 205 43 96.632828 subsidiary,4 1 4 5 2 0 761 2270 1323 47 -1 5 1 4 5 2 1 761 2278 150 33 96.130394 divisions 1 4 5 2 2 928 2289 39 22 96.958473 or5 1 4 5 2 3 983 2279 98 31 96.012115 others 1 4 5 2 4 1099 2277 127 40 95.932350 device,5 1 4 5 2 5 1244 2277 38 32 95.932350 in5 1 4 5 2 6 1299 2270 199 38 96.511375 connections 1 4 5 2 7 1514 2275 89 32 96.419289 with5 1 4 5 2 8 1618 2275 60 32 96.880142 thes 1 4 5 2 9 1696 2270 221 45 96.178139 advertising,5 1 4 5 2 10 1935 2273 149 42 96.445534 offering4 1 4 5 3 0 761 2323 1325 45 -1 5 1 4 5 3 1 761 2328 56 32 96.878708 for5 1 4 5 3 2 834 2328 80 40 96.863838 sale,5 1 4 5 3 3 930 2328 70 32 96.967964 sales 1 4 5 3 4 1014 2339 39 21 96.990189 or5 1 4 5 3 5 1069 2326 225 33 96.705666 distributions 1 4 5 3 6 1309 2327 39 32 96.045120 of5 1 4 5 3 7 1363 2325 256 42 96.055389 photographic5 1 4 5 3 8 1631 2325 196 41 96.055389 equipments 1 4 5 3 9 1842 2323 35 33 96.774826 in5 1 4 5 3 10 1893 2334 193 31 95.028206 commerce,4 1 4 5 4 0 761 2372 1324 43 -1 5 1 4 5 4 1 761 2390 36 21 95.969658 as5 1 4 5 4 2 810 2376 184 36 95.969658 commerce5 1 4 5 4 3 1006 2379 28 31 96.602196 is5 1 4 5 4 4 1046 2378 133 32 96.409126 defined5 1 4 5 4 5 1192 2378 36 32 96.656975 in5 1 4 5 4 6 1241 2378 57 32 96.656975 thes 1 4 5 4 7 1309 2377 144 33 95.880981 Federal5 1 4 5 4 8 1468 2376 114 33 96.501740 Trades 1 4 5 4 9 1594 2372 312 43 93.674568 Commissions 1 4 5 4 10 1828 2368 77 54 96.806328 Act,5 1 4 5 4 11 1918 2374 45 33 93.145828 do5 1 4 5 4 12 1975 2375 110 32 92.357307 forth-4 1 4 5 5 0 760 2430 507 33 -1 5 1 4 5 5 1 760 2430 85 32 96.040680 with5 1 4 5 5 2 856 2441 92 22 96.276718 ceases 1 4 5 5 3 961 2430 67 33 96.311752 ands 1 4 5 5 4 1042 2430 103 32 95.816971 desist5 1 4 5 5 5 1157 2430 110 31 83.078880 from:3 1 4 6 0 0 828 2476 1259 251 -1 4 1 4 6 1 0 887 2476 1200 45 -1 5 1 4 6 1 1 887 2483 27 29 93.761925 1.5 1 4 6 1 2 938 2481 151 40 95.778809 Failing,5 1 4 6 1 3 1107 2480 128 41 96.943466 clearly5 1 4 6 1 4 1252 2480 69 32 96.431992 ands 1 4 6 1 5 1338 2478 261 47 96.514168 conspicuously5 1 4 6 1 6 1615 2481 37 28 96.528458 to5 1 4 6 1 7 1668 2477 152 40 96.720421 disclose,5 1 4 6 1 8 1835 2473 38 38 96.948837 in5 1 4 6 1 9 1888 2462 199 47 93.804420 connection4 1 4 6 2 0 845 2527 1241 45 -1 5 1 4 6 2 1 845 2531 86 33 96.831482 with5 1 4 6 2 2 946 2533 57 31 96.751923 thes 1 4 6 2 3 1019 2531 69 32 96.460815 sales 1 4 6 2 4 1104 2532 38 31 96.678246 of5 1 4 6 2 5 1157 2530 84 33 96.761185 used5 1 4 6 2 6 1258 2530 253 42 95.230034 photographic5 1 4 6 2 7 1528 2529 207 43 96.771111 equipment,5 1 4 6 2 8 1750 2527 36 32 96.265938 in5 1 4 6 2 9 1801 2527 48 32 96.265938 all5 1 4 6 2 10 1864 2527 222 41 96.789261 advertising,4 1 4 6 3 0 828 2575 1257 49 -1 5 1 4 6 3 1 828 2583 112 40 59.943241 ‘sales,5 1 4 6 3 2 958 2581 230 43 96.121399 promotional5 1 4 6 3 3 1204 2582 180 32 96.753296 literature5 1 4 6 3 4 1400 2581 69 39 96.386063 ands 1 4 6 3 5 1485 2581 148 32 96.936394 invoices5 1 4 6 3 6 1648 2575 207 45 96.545212 concerning5 1 4 6 3 7 1867 2578 83 32 93.278130 such5 1 4 6 3 8 1966 2579 119 41 92.955437 photo-4 1 4 6 4 0 844 2629 1243 60 -1 5 1 4 6 4 1 844 2635 146 43 96.137894 graphics 1 4 6 4 2 1009 2633 206 56 96.691505 equipment,5 1 4 6 4 3 1236 2644 44 20 94.533997 on5 1 4 6 4 4 1300 2632 58 32 94.533997 thes 1 4 6 4 5 1377 2632 176 31 96.398865 containers 1 4 6 4 6 1573 2631 37 32 96.807007 in5 1 4 6 4 7 1627 2630 114 32 96.539078 which5 1 4 6 4 8 1757 2629 59 32 96.535683 thes 1 4 6 4 9 1834 2629 253 42 95.828293 photographic4 1 4 6 5 0 845 2680 1242 67 -1 5 1 4 6 5 1 845 2685 203 62 95.347397 equipments 1 4 6 5 2 1059 2684 27 32 96.448227 is5 1 4 6 5 3 1105 2680 178 45 96.448227 packaged5 1 4 6 5 4 1300 2683 67 32 96.663849 ands 1 4 6 5 5 1384 2694 44 21 96.361229 on5 1 4 6 5 6 1444 2683 58 31 96.322952 thes 1 4 6 5 7 1519 2680 253 44 96.302917 photographic5 1 4 6 5 8 1790 2680 198 42 96.097023 equipments 1 4 6 5 9 2004 2680 83 32 96.849152 with “589° = ': BASTMAN KODAK CO, > | 543 ‘ Decision: arid Order “>. sufficient permanericy as likely to remain thereon until sale to the ‘ ultimate ‘consumer, the fact that such product has been previously ‘used, as is defined above.

2. ‘Representing; directly or by implication, that ‘used photographic. equipment distributed by or on behalf of-respondent is new or misrepresenting in any manner the nature, extent or degree ‘of use of any photographic equipment offered for sale, sold or distributed by or on behalf of respondent.

3. Failing to maintain a system for handling used photographie equipment that is returned to the respondent which is so designed that photographic equipment which has been used is sufficiently identified to assure ultimate disposition in accordance with the terms of this order.

4. Supplying new packaging material for photographic equipment manufactured by the respondent to Independent Warranty shops or other non-affiliated entities which customarily do repair or service work on photographic equipment manufactured by respondent, except if such repair or service facility states in writing that such packaging material. is intended for use with consumer-owned photographic equipment. — 5. Supplying new packaging material for photographie equipment manufactured by the respondent to customers who resell such equipment at wholesale and/or retail, except for packaging material customarily shipped for display or replacement purposes, without receiving from the customer a statement in writing indicating that the requested packaging material is not to be utilized with used photographic equipment as that term is herein defined. .

It is further ordered, That :

(a) As a condition precedent to repairing, refurbishing, repackaging or replacing any photographic equipment returned to respondent, respondent shall require any person, firm or corporation other than an ultimate consumer who returns such product to provide in writing a statement which will indicate whether or not the returned photographic equipment is a used product as that term is herein defined ;

(b) Respondent shal! maintain copies of ‘statements received under the provisions of the immediately preceding subparagraph and Paragraphs 4 and 5 for a period of at least three (3) years and respondent shall maintain records sufficient to show compliance with Paragraph 3 supra for a period of three (3) years. (c) Irrespective of the information received pursuant.to sub- \ 644 FEDERAL TRADE. COMMISSION DECISIONS . Decision and Order 81 FNC.

. paragraph (a) above, if the respondent has reason to believe from a physical inspection of the photographic equipment or from documentation accompanying the returned product that it has been used as that term is herein defined, it-shall be treated as used photographic equipment pursuant to Paragraphs 1, 8, 4 and 5 above.

- It is further ordered, That respondent herein shall notify the Commission at least thirty (80) days prior to any proposed change in the structure of the corporate.respondent, such as dissolution, assignment - or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the respective corporation, which may affect compliance obligations arising out of this order.

It.is further ordered, That. respondent. shall, within sixty (60) days after service upon it.of ‘this order, file with the. Commission a-report in writing setting, forth in detail the manner: and form: in which it has complied with this order.....

Lt is further: ordered, That respondent shall deliver, by first class: mail, postage prepaid, a copy ofthis order to each of its customers who resell photographic equipment at wholesale and/or retail. _ It is further ordered, That the respondent shall forthwith distribute a copy of this order to each of its operating divisions.