Ger-Ro-Mar, Inc

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IN THE MATTER OF GER-RO-MAR, ING., TRADING AS SYMBRA’ETTE, ET AL. ORDER, OPINION, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 8872. Complaint, Nov. 24, 1971—Decision, July 23, 1974* Order requiring a San Jose, Calif., manufacturer of brassieres, girdles, swimwear, wigs and lingerie, among other things to cease using ar open-ended, multi-level (pyramid) marketing plan to recruit distributors for its products; misrepresenting the earnings and profits a distributor may expect to make; maintaining resale prices; and restricting distributors as to whom they may sell their merchandise. Appearances For the Commission: Jerome Steiner and Ralph Stone. For the respondents: Rosenberg & Wiseman, San Jose, Calif. * Petition for review filed Oct. 11, 1974, C.A. 2nd. but must await completion of steps by Kennecott to develop an appropriate divestiture plan for submission to the Commission. ORDER DENYING PETITION TO REOPEN PROCEEDINGS On May 23, 1974, Kennecott Copper Corporation (hereinafter Kennecott) filed a “Petition to Reopen the Proceedings on the Question of Relief,” pursuant to Section 3.72 of the Commission’s Rules of Practice, including therein a request for oral argument on the petition, and submitted at the same time a request for oral discussion. Kennecott has subsequently filed various supplemental submissions relevant to its petition. The Bureau of Competition has replied, by answer of June 20, 1974, opposing the petition. Oral argument upon the petition was held on July 10, 1974. The Commission has considered the arguments of petitioner, and does not believe that adequate grounds have been shown to warrant reopening these proceedings for the purpose of considering the issue of relief. The issue of appropriate relief was considered by the Commission at the time it issued its original decision, and its order has been affirmed by the United States Court of Appeals [467 F. 2d 67], and certiorari denied by the Supreme Court [416 U.S. 963 (1974)]. Alleged changed conditions of fact and law described by petitioner are not such as to warrant reopening of these proceedings. Accordingly, It is ordered, That the “Petition to Reopen the Proceedings on the Question of Relief” be, and it hereby is, denied. Commissioners Thompson and Nye dissenting.