Authorized TV, Inc

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IN THE MATTER OF AUTHORIZED TV, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE TRUTH IN LENDING ACTS Docket C-2584. Complaint, Oct. 22, 1974 — Decision, Oct. 22, 1974 Consent order requiring Seattle, Wash., retailers of television sets, record players and stereophonic components, among other things to cease violating the Truth in Lending Act by failing to disclose-to corsumers, in connection with the extension of consumer credit, such information as required by Regulation Z of the said Act. AUTHORIZED TV ING. ET AL. : pasy 1178 , : .. Complaint. “~~ Appearances a For the Conimission: Dean A. Fournier.

For the respondents: Pro se.

COMPLAINT yes Os; Pursuant to the provisions of the Truth in Lending Act and the ee implementing regulation promulgated thereunder, and: the. Federal Trade Commission Act, and by virtue of the authority vested-in it by said Acts, the Federal Trade Commission, having reason to believe that Authorized TV, Inc., a corporation doing business as Schoenfeld’s Muntz TV and as Stereo Mart, and Alvin E. Schoenfeld, individually and as. an officer of said corporation, and Frank A: Besancon, an individual doing business as TV Mart North, hereinafter referred to as respondents, fave violated the provisions of said Acts and implementing regulation, 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: co PARAGRAPH 1. Respondent Authorized TV,.Inc., doing business as Schoenfeld’s Muntz TV and as Stereo Mart, is a corporation organized, : existing and doing business under and by virtue of the laws of the State of Washington, with its principal office and place of business located at 6429 Empire Way South, Seattle, Wash. :

Respondent Alvin E. Schoenfeld is an individual and 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 said corporation. .

Respondent Frank A. Besancon is an individual trading and doing business as TV Mart North. His principal office and place of business is located at 13760 Aurora Avenue North, Seattle, Wash. PAR. 2. Respondents are now, and for some time last past have been, engaged in the advertising, offering for sale, and sale of television sets, - record players and stereophonic components and supplies to the public . at their respective yetail premises in metropolitan Seattle. Respondent Schoenfeld and the corporate respondent engage in further such activities in metropolitan Tacoma, Wash., while respondent Besancon engages in further such activities in metropolitan Everett, Wash. - par. 38. In the ordinary course and conduct of their respective businesses, the respondents regularly engage in credit sales and arrange for the extension of consumer credit, as “eredit sale,” “arrange for the ooo SSDERAL TRADE ComMisgron DECISIONS oe Be Decision and Order: : gq FTC. extension of credit,” and “consumer credit” are defined in Section 226.2 of Regulati n Z, the implementing regulation of the Truth in Lending ~ Act, duly Promulgated by the Board of Governors of the Federal] Re-. ao Serve System.

published, in. various. media, advertisements (as “advertisement” Ise defined in Regulation Z) to aid, promote, or assist directly or indirectly required by Section 226.10(d)(1) of Regulation -Z. : 2. Stated the dollar amounts of finance charges and installment. ' Payments, and/or the amount of. downpayment required and the period — of repayment, without also stating, as required by Section 226.10(d)(2) of Regulation Z, in terminology prescribed under Section 226.8 of | Regulation Z,-and in the manner and. form Prescribed under Seetion /-226.6(a) of Regulation Z, all of the following: aes a. the ¢ash price; : be -b. the amount of the downpayment required or that no downpayment ~ is required, as applicable;

c. the amount of the finance charge expressed as an annual percentage rate; and , “d. the deferred payment price, Par. 5. Pursuant to. Section 103(q) of the Truth in Lending Act,. respondents’ aforesaid failures to comply with the provisions of Regulation Z constitute Violations of that Act, and pursuant to Section 108 thereof, respondents have thereby Violated the Federal Trade Commission Act, DECISION AND ORDER 1178 Decision and Order 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 Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Authorized TV, Ine. is a corporation organized, exist- | ing and doing business under and by virtue of the laws of the State of Washington, with its office and principal place of business located at 6429 Empire Way South, Seattle, Wash.

Respondent Alvin E. Schoenfeld is an individual and an officer of the corporate respondent. He formulates, directs and controls the policies, acts and practices of said corporation, and his address is the same as that of said corporation.

Respondent Frank A. Besancon is an individual trading and doing business as TV Mart North. His office and principal place of business is located at 138760 Aurora Avenue North, Seattle, Wash. 2. The Federal Trade Commission has jurisdiction of thé subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered, That respondents Authorized TV, Inc., a corporation doing business as Schoenfeld’s Muntz TV and as Stereo Mart, or under any other name or names, and its officers, and Alvin E. Schoenfeld, individually and as an officer of said-corporation, and Frank A. Besancon, an individual doing business as TV Mart North, or under any other name or names, and respondents’ successors, assigns, agents, representatives and employees, directly or through any corporation, subsidiary, division, or other device, in connection with any extension or arrange- Decision and Order 84 F.T.C.

ment for the extension of consumer credit, or any advertisement to aid, promote or assist directly or indirectly any extension of consumer credit, as “advertisement” and “consumer credit” are defined in Regulation Z (12 C.F.R. §226) of the Truth in Lending Act (Pub. L. 90-321, 15 U.S.C. 1601, et seq.), do forthwith cease and desist from: 1. Stating, in any such advertisement, the rate of any finance charge unless the rate of the finance charge is expressed as an “annual percentage rate,” using that term, as required by Section 226.10. (d)(1) of Regulation Z.

2. Representing in any such advertisement, directly or by implication, the amount of the downpayment required or that no downpayment is required, the amount of any installment payment, the dollar amount of any finance charge, the number of installments or the period of repayment, or that there is no charge for credit, unless all of the following items are stated in terminology prescribed under Section 226.8 of Regulation Z, as required by Section 226.10(d)(2) of Regulation Z:

a. the cash price;

b. the amount of the downpayment required or that no downpayment is required, as applicable;

c. the number, amount, and due dates or period of payments scheduled to repay the indebtedness if the credit is extended; d. the amount of the finance charge expressed as an annual percentage rate; and e. the deferred payment price.

3. Failing, in any consumer credit transaction or advertisement, to make all disclosures, determined in accordance with Sections 226.4 and 226.5 of Regulation Z, at the time and 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 respondents deliver a copy of this order to cease and desist to all present and future personnel of respondents engaged in the consummation of any extension of consumer credit or in any aspect of the preparation, creation or placing of advertising, to all persons engaged in reviewing the legal sufficiency of advertising, and to all present and future agencies engaged in preparation, creation or placing of advertising on behalf of respondents, and that respondents secure from each such person and agency a signed statement acknowledging receipt of said order.

It is further ordered, That respondents notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent such as dissolution, assignment or sale resulting in the emergence 1183 Complaint of a successor corporation, the creation or dissolution of subsidiaries, or any other change in the corporation which may affect compliance obligations arising out of the order.

It is further ordered, That the individual respondents named herein promptly notify the Commission of the discontinuance of their present business or employment and of their affiliation with a new business or employment. Such notice shall include respondents’ current business address and a statement as to the nature of the business or employment in which they are engaged, as well as a description of their duties and responsibilities.

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.