Findings

17 F.T.C.

engaged in the United States in the business of selling throughout the United States the products of the aforesaid Guerlain, Inc. The products of said Guerlain, Inc., are well known and are and have been extensively advertised throughout the United States under the name of "Guerlain." The name Guerlain " as applied to perfumes, talcum powders, face powders, other cosmetics and toilet articles, now and for many years has signified to the purchasing public and to the trade that the products sold under such name or under a name of which "Guerlain " is a part are the products of Guerlain, Inc., and of superior quality. Respondent has no connection with said Guerlain, Inc., nor said Guerlain Perfumery Corporation of Delaware. Its products are inferior to the products of Guerlain, Inc.

PAR. 6. Respondent's aforesaid labelling and designating its perfumes, talcum powders, face powders, other cosmetics and toilet articles as herein set out has the capacity and tendency to mislead and deceive its vendees and many of the purchasing public into the belief that its said perfumes, talcum powders, face powders, other cosmetics and toilet articles are manufactured in Paris, France, and imported into the United States and to purchase said perfumes, talcum powders, face powders, other cosmetics and toilet articles in that belief, when in truth and in fact respondent's said perfumes, talcum powders, face powders, other cosmetics and toilet articles are made in the United States of America from ingredients purchased in the United States of America. Respondent's aforesaid labelling and use of the words "Arthur Guerlin" as set out herein has the capacity and tendency to mislead and deceive its vendees and many of the purchasing public into the belief that its perfumes, talcum powders, face powders, other cosmetics and toilet articles and jewelry and other articles are the products of aforesaid Guerlain, Inc., and imported into the United States. Respondent's said labelling has the capacity and tendency to mislead and deceive its vendees and many of the purchasing public into the belief that its said pearls and other jewelry are the products of said Guerlain, Inc., and are imported from France.

PAR. 7. Further, respondent's said labelling and designating of its perfumes, talcum powders, face powders, other cosmetics and toilet articles as set out herein, places in the hands of aforesaid dealer and peddler vendees the instrument and means whereby said peddlers and dealers may commit fraud upon a substantial portion of the purchasing public by enabling said dealers and peddlers to represent, offer for sale and sell said perfumes, talcum powders, face powders, other cosmetics and toilet articles as manufactured in Paris, France;

further, respondent's said corporate name and labelling as set out herein place in the hands of its aforesaid dealer and peddler vendees the instrument and means whereby said dealers and peddlers may commit fraud upon a substantial portion of the purchasing public by enabling said dealers and peddlers to represent, offer for sale, and sell respondent's said perfumes, talcum powders, face powders, other cosmetics and toilet articles, jewelry and other articles as the products of Guerlain, Inc. Further, respondent's said labelling as set out herein places in the hands of its aforesaid dealer and peddler vendees the instrument and means whereby said dealers and peddlers may commit fraud upon a substantial portion of the purchasing public by enabling said dealers and peddlers to represent, offer for sale and sell respondent's pearls and jewelry as imported from Paris, France.

PAR. 8. There are among the competitors of respondent referred to in paragraph 1 hereof many who deal in and sell perfumes, talcum powders, face powders, other cosmetics and toilet articles manufactured in Paris, France, and imported into the United States and who rightfully and truthfully represent said perfumes, talcum powders, face powders, other cosmetics and toilet articles to be such. There are others of said competitors who deal in and sell perfumes, talcum powders, other cosmetics and toilet articles manufactured in the United States from essential ingredients purchased in the United States and who in no manner represent their said perfumes to be manufactured in Paris, France. There are others of said competitors who deal in and sell perfumes, the essential ingredients of which are manufactured in Paris, France, and imported by such competitors into the United States and to rightfully and truthfully represent such perfumes, talcum powders, face powders, other cosmetics and toilet articles to be such. There are also among the competitors of respondent referred to in paragraph 1 hereof many who deal in and sell pearls and jewelry imported into the United States from France and who rightfully and truthfully represent said pearls and jewelry to be such. There are others of said competitors, who deal in and sell jewelry manufactured in the United States and pearls not imported from France and who in no manner represent their said jewelry to be manufactured in Paris, France, nor their pearls to be imported into the United States from Paris, France. There are also among such competitors manufacturers and dealers who do not by their labels or by their corporate name mislead or deceive their vendees or the purchasing public into believing that the articles in which they deal are the products of another manufacturer or dealer. Respondent's acts and practices, all as in this complaint hereinbefore

set out, tend to divert business from and otherwise injure and prejudice said competitors; thereby substantial competition is injured to a substantial extent.

CONCLUSION

The above alleged acts and practices of respondent are all to the prejudice of the public and of respondent's competitors and constitute unfair methods of competition in commerce within the intent and meaning of section 5 of an act of Congress entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes ", approved September 26, 1914.

ORDER TO CEASE AND DESIST

This proceeding having been heard by the Federal Trade Commission upon the record and the Commission having made its report in which it stated its findings as to the facts and its conclusion that respondent, Arthur Guerlin, Inc., has violated the provisions of an act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes",

It is now hereby ordered, That the respondent, Arthur Guerlin, Inc., its representatives, agents, servants, employees, and successors forthwith cease and desist from:

(a) Using directly or indirectly the word "Paris" or any other word, signifying French origin, on labels, tags or containers of or in advertising of perfumes, talcum powders, face powders, other cosmetics, toilet articles, pearls, jewelry, or any of the articles offered for sale, shipped or sold in interstate commerce, or in connection with the offering for sale thereof in interstate commerce, unless such perfumes, talcum powders, face powders, other cosmetics, toilet articles, and other articles be manufactured or compounded in Paris, France, or in France, and unless such jewelry be manufactured in France and unless such pearls be imported from Paris, France, or from France; and from in any other way labelling and designating its perfumes, talcum powders, face powders, other cosmetics, toilet articles, pearls, jewelry or other articles, sold, advertised, offered for sale or shipped by it in interstate commerce as being manufactured in, compounded in or imported from Paris, France, or from France, unless such perfumes, talcum powders, face powders, other cosmetics and toilet articles, pearls, jewelry and other articles be manufactured in or compounded in Paris, France, or in France, or be imported from Paris, France, or from France;

(b) Using, in interstate commerce, as a part of its corporate name, or on the labels or containers of products advertised, offered for sale or shipped by it, in interstate commerce, or in any other way in interstate commerce, the word "Guerlin" or any other word similar to Guerlin, unless it plainly appears in immediate connection therewith that respondent Arthur Guerlin, Inc., is not connected in any way with the original Guerlain, Guerlain Perfumery Corporation of Delaware, nor with Guerlain, Inc.

It is now hereby further ordered, That the said respondent, Arthur Guerlin, Inc., shall within 30 days after the service upon it of a copy 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 the order to cease and desist hereinbefore set forth.

17 F.T.C.

Complaint

IN THE MATTER OF

LOUIS FARBER, TRADING AS FARBER BROS.

COMPLAINT (SYNOPSIS), FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914

Docket 2024. Complaint, Apr. 1, 1932-Decision, Oct. 10, 1932

Where an individual engaged in the manufacture of silver-plated hollow ware, chromium-plated hollow ware, pewter hollow ware, and other hollow ware and clocks and other novelty jewelry, and in the sale and distribution thereof to wholesale and retail dealers, adopted and used the trade name "Silvercraft" for his said products and featured the same in his advertisements and in catalogs, circulars, etc., and stamped and branded dials and backs of clocks and other products which neither contained silver nor were silver plated, but resembled silver in appearance, "Silvercraft "; with capacity and tendency to mislead and deceive purchasing public into believing said articles to contain some silver or to be silver plated, and induce the purchase thereof in reliance on such erroneous belief and divert trade from and otherwise injure competitors:

Held, That such practices, under the circumstances set forth, were to the prejudice of the public and competitors and constituted unfair methods of competition.

Mr. Robert H. Winn for the Commission.

SYNOPSIS OF COMPLAINT

Reciting its action in the public interest, pursuant to the provisions of the Federal Trade Commission Act, the Commission charged respondent individual, engaged in the manufacture of silver-plated hollow ware, chromium-plated hollow ware, pewter hollow ware, and other hollow ware and clocks and novelty jewelry, and in the sale of said products to wholesale and retail dealers, and with factory and principal place of business in New York City, with using misleading trade name, advertising falsely or misleadingly, and misbranding or mislabeling, in violation of the provisions of section 5 of such act, prohibiting the use of unfair methods of competition in interstate commerce.

Respondent, as charged, employs and features as a trade name for his products, the word "Silvercraft ", displaying said word promi. nently in advertising, advertising matter, catalogs, circulars, folders, letterheads, and business cards (many of which are used by retailers as an aid in selling the products to the consuming public), and causes said products to be stamped and branded with the aforesaid word, notwithstanding fact that many of the products so