domestic or of domestic products as manufactured in a locality nationally famous for the particular product. Nine of these involved the use of names simulating the names of oriental rugs to designate rugs made in this country by machinery. Eleven complaints charged misrepresentation of correspondence schools or home-study courses. Nine complaints alleged misrepresentation as to business status, such as business connections, and size and extent of plant or business. This category also included the representation by distributors that they were producers. Nine complaints alleged use of fictitious price markings, or value, including in some instances also alleged misrepresentation as to the character of the product. Other complaints alleged misrepresentation of methods of doing business, value of coupons, and conditions under which coupons were redeemed; disparagement of competitor's product; the misrepresentation that the advertised product had been tested and approved by nationally known laboratories; intimidation by the false representation that a competitor's product was an infringement of copyright; misrepresentation of terms and conditions of purchase; of merchandise as gratuitous; of financial returns to agents; of profits to purchasers or representatives, equipment used, value of product and services to be rendered; misrepresentation through use of the term "free samples" and misrepresentation that the regular and usual selling price was a specially reduced price for a limited time; misrepresentation of the quantity of product by the use of oversize containers; misrepresentation through use of the name "University Press" that a business was owned by a university and operated a printing establishment; misrepresentation of character of business by the use of misleading trade names; of certain products as being exclusive, limited or restricted; misrepresentation by the appropriation and use of trade names of competitors, or nationally known manufacturers; and false representation of price, of guarantees and of ownership and operation of laboratories. C. MISCELLANEOUS COMPLAINTS Lotteries or gift enterprises.-Sixty-six complaints charged either that manufacturers of, or dealers in, food products, wearing apparel, novelty merchandise, and various other articles of merchandise so packed or assembled their products that sales thereof were to be made by means of a game of chance or lottery, or that they supplied dealers with lottery devices for use in the sale of such merchandise to the public. Most of the complaints charged the sale of either candy or novelty merchandise. Alleged misleading use of names of nationally known organizations.-Another complaint was against a publishing corporation, its subsidiary and its officers, alleging, among other things, that the respondents, through their salesmen, represented that they were connected with, and that their books were published and sold by, a nationally known scientific institution and a nationally known patriotic organization; that the entire profits derived from the sale of the books accrued to the scientific insitution and patriotic organization; that their sale was limited to a small number of selected individuals in each community; and that the patriotic organization maintained a lobby in Washington, D. C., for the purpose of combating anti-American and subversive organizations. The complaint further alleged that in truth the books were not published and sold by the scientific institution and patriotic organization, and these organizations did not receive all the profits from their sale but only a royalty; that their sale was not limited to a few selected individuals in each community; and that the patriotic organization did not maintain a lobby for the purpose of combating un-American activities. It was also charged that the use of certain words in the corporate name of the subsidiary respondent in itself constituted false and misleading representations in that it simulated the name of a nationally known scientific institution. (4465.) Alleged unfair practices involving sale of water-colored photographic enlargements and miniatures as "paintings" and "oil paintings."-A complaint was issued against 70 respondents charging, among other things, that they, pursuant to various understandings, agreements, combinations, and conspiracies, visited prospective customers in various parts of the country to sell the respondents' products, making various representations, among which were that they were engaged as advertising agents of an association of artists and that their products were "paintings," "hand-painted portraits" or "polychrome portraits" worth $30 or a like amount. The complaint alleged that the respondents were not and never had been an art association but conducted a business enterprise; that the pictures sold by them were not portraits or paintings but cheap, quickly made photographic enlargements; and that the respondents' primary object was the sale of picture frames at exorbitant prices. (4522.) Alleged endorsement of product by fictitious disinterested agency.A complaint issued against a manufacturer and distributor of mattresses charged, among other things, that the respondent entered into an arrangement with an advertising or mailing agency by which the latter mailed to prospective purchasers advertising matter endorsing and recommending the respondent's mattresses, such advertising matter having been prepared and subscribed as if coming from good housekeeping and other women's clubs, which were in fact non-existent. (4483.) II. COMPLAINTS UNDER THE CLAYTON ACT A. VIOLATION OF SECTION 2 (a) OF CLAYTON ACT AS AMENDED BY Eleven complaints were issued which charged the sale of various commodities of like grade and quality to some buyers at different prices from those charged other buyers. The complaints alleged that the effect of such discriminations in price may be substantially to lessen competition or tend to create a monopoly in commerce, or to injure, destroy, or prevent competition with persons who either grant or knowingly receive the benefit of such discrimination, or with customers of either of them. Two of such complaints involve salt, one hardware, one yeast, four oil products, one rubber stamps, one automobile parts, and one textiles. B. VIOLATION OF SECTION 2 (c) OF CLAYTON ACT AS AMENDED BY ROBINSON-PATMAN ACT A total of forty-three complaints issued during the year charged violations of section 2 (c), commonly referred to as the brokerage section. Fourteen of these complaints were directed to sellers of merchandise alleged to be granting brokerage to buyers or intermediaries acting in fact for such buyers. Ten of the complaints were directed at the practices of field brokers accepting brokerage on their own purchases or passing on brokerage to buyers, and in some instances, against both practices. Eight complaints were directed at the practices of resident commission buyers in New York City alleged to be engaged in the purchasing of furs and other goods and accepting brokerage from the sellers while acting in fact for the buyers. Five complaints issued under this section charged wholesalers with receiving brokerage on their own purchases. Five complaints alleged the existence of dummy brokerage setups, and one complaint was directed at the practice of a merchandise broker accepting brokerage on his purchases. Most of these complaints have been disposed of and are referred to under the section relating to orders to cease and desist (pp. 80, 81). C. VIOLATION OF SECTION 2 (d) OF CLAYTON ACT AS AMENDED BY One complaint charged a manufacturer of nurses' uniforms with the granting of advertising allowances to certain customers while not granting such allowances to other competing customers on proportionately equal terms. (4335.) ORDERS TO CEASE AND DESIST UNFAIR TRADE PRACTICES PROHIBITED IN 346 CASES The Commission issued 348 orders to cease and desist from the use of unfair methods of competition and other violations of law during the fiscal year ended June 30, 1941, as compared with 282 issued during the last preceding fiscal year. Two of the 348 orders were rescinded, additional pleadings were filed, and subsequently another order to cease and desist was entered in each of the 2 cases, making a total of 348 orders issued in 346 cases. One company was respondent in 2 separate proceedings, and orders were issued in each case, although the name appears only once in the following list: LIST OF RESPONDENTS Acme Premium Supply Corporation__- Lottery: miscellaneous merchandise. Actino Laboratories, Inc., and others--- Passing off used competing equipment as new equipment: orthoptic instruments. Air Conditioning Textiles, Inc.---. Misrepresenting results effected: soap. Location St. Louis. Chicago. New York. Air Conditioning Training Corporation, and others. Youngstown, Ohio. Algren Manufacturing Co., Inc___ Misrepresenting gold content: wrist watch buckles. Allen Candy Co., W. C., Inc.. Lottery: candy. Allred Brothers Candy Co.... Altman Neckwear Corporation_ - - Passing off merchandise not made by American Indians, as Indian handicraft; misrepresenting silk content and failing to disclose rayon content: neckties. American Brokerage Co., Inc.. Price discrimination: food products. American Cord & Webbing Co... Misrepresenting silk and linen content and failing to disclose rayon content; falsely representing that all of the respondent's merchandise is dyed with "vat dyes" and that the color is impervious to the effects of sunlight: tape for venetian blinds. American Crayon Co...-- Price discrimination: educational supplies. American Drug & Chemical Co... Misrepresenting therapeutic value: medicinal preparations. American Hair & Felt Co., and others-- Misrepresenting hair content; unduly disparag ing competing products: rug underlays. New York. Portland, Oreg. Charlotte, N. C. New York. Roanoke, Va. New York. Sandusky, Ohio. Minneapolis. Chicago. American Lead Pencil Co., and others--- erasers. American Lecithin Co., Inc., and others___ Combining in restraint of trade; falsely claiming merchandise has been endorsed by an agency of the Federal Government; unduly disparaging competing products: lecithin. American Maize-Products Co.-- Price discrimination: corn products. American Medicinal Products, Inc., and others Misrepresenting results effected and failing to disclose harmful potentialities: flesh-reducing compounds. American Plierench Corporation____ Misrepresenting financial returns to agents: tools. Anheuser-Busch, Inc... Price discrimination: corn products. Apex Lamp Works... Misrepresenting results and economies effected: lamp reflectors. Arlington Sales Co.... Lottery: miscellaneous merchandise. Arnold Shoe Co., M. N......... Using the word "alligator" to designate leather other than that made from alligator hide, and to describe certain leather finishes without a statement to the effect that the word refers to the "finish" only: shoes. Art-Web Manufacturing Co., Inc., and others Passing off domestic merchandise as imported merchandise: wearing apparel. Associated News Photographic Service, Inc., and others. Private photographers claiming to be press photographers: photographic prints. Associates Sales Agency... Lottery: miscellaneous merchandise. Atlantic Commission Co_____. Price discrimination: fruits and vegetables. Atlas Health Appliance Co. ---- Misrepresenting therapeutic value and failing to disclose harmful potentialities: diathermy devices. Augusta Knitting Corporation.. Misrepresenting silk and wool content: knitted wear. Hoboken, N. J. Elmhurst, Long Island, New York. Los Angeles. Chicago. St. Louis. Brooklyn, N. Y. Kansas City, Mo. South Weymouth, Mass. Brooklyn, N. Y. New York. Birmingham, Ala. New York. Los Angeles. Utica, N. Y. Automatic Radio Manufacturing Co., Inc., and others. Boston. |