DETROIT AUTO DEALERS ASSOCIATION, INC. - ftc.gov · detroit auto dealers assoc., inc., et ai. 193...

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DETROIT AUTO DEALERS ASSOC. , INC. , ET AI. 193 193 Complaint IN THE MATTER OF DETROIT AUTO DEALERS ASSOCIATION , INC. , ET AI, CONSENT ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket 9189. Complaint Dec. 20, 1984- Decision, Dec. , 1986 This consent order prohibits , among other things , twenty six Detroit , Mich. -area Chev- rolet associations , dealerships and dealers from conspiring to not advertise in the classified sections of newspapers or to not advertise vehicle prices at all. Appearances For the Commission: Dennis F. Johnson, Robert C. Jones , Richard B. Smith , Richard A. Wolff, Timothy Suich and Morris Bloom. For the respondents: Lawrence F. Raniszeski and Robert Y. Weller Colombo Colombo Birmingham , Mich. and James F. Rill , Jeffrey Kin" and Christopher J. MacAvoy, Collier , Shannon, Rill Scott Washington , D. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act as amended , and by virtue of the authority vested in it by said Act, the Federal Trade Commission , having reason to believe that the respondent parties named in the caption hereof , and hereinafter more particularly described and designated as " respondents " have 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 fol- lows: PARAGRAPH 1. Each of the parties described below is hereby named as a respondent herein in the capacity set forth in the caption to this complaint. Each respondent named in his capacity as an offcer of a corporate respondent formulales , directs and controls the acts and practices of said corporate respondent. . The complaint was issued against associations , dealerships and dealers for Chrysler- Plymouth and Cadillac as well. For the decisions issued againsl these respondents see 108 F. C. 243 and 249

Transcript of DETROIT AUTO DEALERS ASSOCIATION, INC. - ftc.gov · detroit auto dealers assoc., inc., et ai. 193...

DETROIT AUTO DEALERS ASSOC. , INC. , ET AI. 193

193 Complaint

IN THE MATTER OF

DETROIT AUTO DEALERS ASSOCIATION , INC. , ET AI,

CONSENT ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THEFEDERAL TRADE COMMISSION ACT

Docket 9189. Complaint Dec. 20, 1984-Decision, Dec. , 1986

This consent order prohibits , among other things , twenty six Detroit , Mich.-area Chev-rolet associations , dealerships and dealers from conspiring to not advertise in theclassified sections of newspapers or to not advertise vehicle prices at all.

Appearances

For the Commission: Dennis F. Johnson, Robert C. Jones, RichardB. Smith, Richard A. Wolff, Timothy Suich and Morris Bloom.

For the respondents: Lawrence F. Raniszeski and Robert Y. WellerColombo Colombo Birmingham , Mich. and James F. Rill, Jeffrey Kin" and Christopher J. MacAvoy, Collier, Shannon, Rill ScottWashington , D.

COMPLAINT

Pursuant to the provisions of the Federal Trade Commission Actas amended , and by virtue of the authority vested in it by said Act,the Federal Trade Commission , having reason to believe that therespondent parties named in the caption hereof, and hereinafter moreparticularly described and designated as "respondents " have violatedthe provisions of said Act and it appearing to the Commission that aproceeding by it in respect thereof would be in the public interesthereby issues its complaint stating its charges in that respect as fol-lows:

PARAGRAPH 1. Each of the parties described below is hereby namedas a respondent herein in the capacity set forth in the caption to thiscomplaint. Each respondent named in his capacity as an offcer of acorporate respondent formulales , directs and controls the acts andpractices of said corporate respondent.

. The complaint was issued against associations , dealerships and dealers for Chrysler-Plymouth and Cadillacas well. For the decisions issued againsl these respondents see 108 F. C. 243 and 249

194 FEDERAL TRADE COMMISSION DECISIONS

108 F.

Respondent nameDetroit Auto Dealers Association , Inc.James Daniel HayesTri-County Pontiac Dealers Association

Inc.Greater Detroit Chevrolet Dealers

Association , Inc.Chrysler -Plymouth Dealers Association

of Greater Detroit , Inc.Greater Detroit Dodge Dealers

Association , Inc.Metro Detroit AMC Dealers Association

Inc.Metra Detroit Buick Dealers

Association , Inc.Metro Detroit Cadillac Dealers

Association , Inc.Metropolitan Detroit Ford Dealers , Inc.MetropolitanDetroit Oldsmobile Dealers

Association , Inc.Metropolitan Lincoln-Mercury Dealers

Association , Inc.Southeastern Michigan Volkswagen

Dealers Association , Inc.Metro Detroit Chevrolet Dealers

Association , Inc. ***

Chrysler P!ymouth AdvertisingAssociation of Greater Detroit, Jnc. u*

Metro Detroit AMC AdvertisingAssociation , Inc.

Metro Detroit Buick Dealers AdvertisingAssociation lnc.

Metro Detroit Ford Dealers AdvertisingFund , Inc.

Metropolitan lincoln-Mercury Dealers

Advertising Association , Inc.Tri-County Detroit Dodge Dealers

Association , Inc.Barnett Pontiac- Datsun , Inc.Robert F. BarnettJim Causley Pontiac-GMC Truck, Inc.James F. Causley, Sr.Jim Fresard Pontiac , Inc.F. James FresardRed Holman Pontiac-Toyota-GMC Truck

Co.AlbertA. HolmanArt Moran Pontiac-GMC , Inc.ArthurC. Moran

Complaint

Principal place of business3290W. Big Beaver Road , Troy, MI480843290W. Big Beaver Road , Troy, MI4808416000W. Twe!ve Mile Road , Southfield , Mr

48076100 Renaissance Center , Suite 31 00

Detroit , MI4824332711 Van Dyke , Warren , MI48093

24211 Gratiot Avenue , East Detroit , MI48021

13600 Greenfield Road , Detroit , MI48227

100 Renaissance Center , Suite 31 00Detroit , MI48243

100 Renaissance Center , Suite 31 00Detroit, MI48243

24760W. Seven Mile Road , Detroit , MI48219100 Renaissance Center , Suite 31 00 , Detroit

MI482431950W. Maple Road , Troy, MI48084

23615 Michigan Avenue , Dearborn , MI48124

100 Renaissance Center , Suite 31 00 , DetroitM 148243

32711 Van Dyke , Warren , MI48093

13600 Greenfield Road, Detroit , MI48227

100 Renaissance Center , Suite 31 00 , DetroitMI48243

24760W. Seven Mile Road, Detroit , MI48219

1950W. Maple Road , Troy, MI48084

24211 Gratiot Avenue , East Detroit , MI48021

14505 Michigan Avenue, Dearborn , MI4812614505 Michigan Avenue , Dearborn , MI4812638111 Gratiot Avenue , Mt. Clemens, MI4804338111 Gratiot Avenue , Mt. Clemens , Mt 48043400 N. Main Street , Royal Oak , M 148067400 N. Main Street , Royal Oak , MI4806735300 Ford Road , Westland , MI48185

35300 Ford Road , Westland , MI4818529300 Telegraph Road, Southfield , MI4803429300 Telegraph Road , Southfield , MI48034

*ReHpondenL deRignated with "*" are charged under both Count I and Count II of the complaint. The other

pOlldentsarechargedonly unclerCountlRespondents designated with "u" have had the complaint dismissed against them by Commission order dated

193

Respondent namePacker Pontiac Co.William M. Packer , Jr.

Rinke Pontiac-GMC Co.Roland RinkeBob SeUers Pontiac-GMC , Inc.

Robert B. SeUers

Shelton Pontiac-Buick , Inc.M. (Bud) Shelton

YvonJ. TessierPorterfield Wilson Pontiac-GMC Truck

Inc.Potertield WilsonWoody Pontiac Sales , Inc.

Woodrow W. Woody

. Jack Cauley Chevrolet , Inc.

John H. Cauley

Dexter Chevrolet Co.

. Joseph B. SlatkinDick Genthe Chevrolet , Inc.Richard E. GentheBernie Haul Chevrolet , Inc. **

Bernard C. Houthoofd

James-Martin Chevrolet , Inc.James P. LargeJefferson Chevrolet Co.James P. TellierRaymond R. TessmerLou LaRiche Chevrolet-Subaru , Inc.

Louis H. LaRicheWalt Lazar Chevrolet , Inc.Walter N. LazarJohn W. Lazar

"'.

Stephen R. JasinskiJack MeyersGlen D. ColeMark Chevrolet , Inc.Harry C. DemorestGeorge Matick Chevrolet , Inc.George S. Malick , Jr.Matthews- Hargreaves Chevrolet Co.

Complaint

Principal place of business

500 S Opdyke Road , Pontiac , M148057-500 S. Opdyke Road , Pontiac , MI4805727100 Van Dyke Avenue , Warren , MI4809327100 Van Dyke Avenue , Warren , MI4809338000 Grand River Avenue , Farmington

Hills , MI4801838000 Grand River Avenue , Farmington Hils,

MI48018855 S. Rochester Road, Rochester , M148063855 S. Rochester Road , Rochester , MI4806316100 Fort Street , Southgate , MI4819518650 Livernois , Detroit , M14822.

18650 Livernois , Detroit , MI4822112140 Joseph Campau , Hamtramck, MI

4821212140 Joseph Campau , Hamtramck, M I

482127020 Orchard Lake Road, West Bloomfield

M I 480337020 Orchard Lake Road, West Bloomfield,

M I 4803320811 W. EightMile Road, Detroit , MI4821920811 W. EightMile Road , Detroit , MI4821915600 Eureka Road , Southgate , MI4819515600 Eureka Road, Southgate , MI4819535500 S. Gratiol Avenue , Mt. Clemens, MI

4804335500 S. Gratiot Avenue, Mt. Clemens , MI

480436250 Woodward Avenue, Detroit , MI482026250 Woodward Avenue , Detroit , MI482022130 E. Jefferson Avenue, Detroit , MI482072130 E. Jefferson Avenue , Detroit , MI482072130 E. Jefferson Avenue , Detroit, MI4820740875 Plymouth Road, Plymouth , MI4817040875 Plymouth Road, Plymouth , Ml4817012000 Telegraph Road , Taylor , MI4818012000 Telegraph Road, Taylor , MI4818012000 Telegraph Road , Taylor , MI4818012000 Telegraph Road , Tay!or , MI4818012000 Telegraph Road , Taylor , MI4818012000Telegraph Road, Taylor , MI4818033200 Michigan Avenue, Wayne, MI4818433200 Michigan Avenue, Wayne , MI4818414001 Telegraph Road , Redford , MI4823914001 Telegraph Road , Redford, MI482391616 S. Main Street , Royal Oak , MI48067

Respondents de ignated with "*" are charged under both Count I and Count II of this complaint. The otherrespondents are charged on!y under Cuunt I

'*Respundents designated with "**" have had the complaint dismissed against them by Commission order datedAU!ist 6 1986 (unpublished).

***Respondents desig-nated with "***,, have had Count II of the compiaintdismis ed against them by Commissionordurdat.dAuguRt6 , i986 (unpuhIished).

196 FEm;RAL TRADE COMMISSION DECISIONS

108 F:r.C.

Respondent nameW. Robert AllenMerolls Chevrolet Sales & Service

Norman A. MerollisEd Rinke Chevrolet-GMG Co.Edgar Rinke , Sr.

Mike Savoie Chevrolet , Inc.Myron P. SavoieLes Stanford Chevrolet , Inc.

Leslie J. Stanford

Stewart Chevrolet , Inc.Gordon L. StewartTennyson Chevrolet , Inc.HarryTennysonBuff Whelan Chevrolet , Inc.Robert F. WhelanBill Wink Chevrolet/G MC/IsuzuWilliam J. Wink , Jr.

Michael P. ChinavareGreenfield AMC/Jeep- Renault , Inc.Naiff H. KelelZigmund F . MielnickiVilliage AMC/Jeep, Inc.

Armstrong Buick Opel , Inc.Thomas ArmstrongJim Carney Buick Co.Harold Dietrich , Inc. **

Fischer Buick-Subaru , Inc.Carl E. FischerBill Greig Buick-Opel , Inc.Wiliam R. Greig, Sr.Krajenke Buick Sales, Inc.Clarence KrajenkeMitchell Buick Sales , Inc. **

Tamaroff Buick- Honda , Inc.Marvin Tamaroff

* Audette Cadillac , Inc.

Charles Audette

Frank Audette

Crissman Cadillac , Inc.

mplaint

Principal place of business

1616 S. Main Street , Royal Oak , MI4806721800 Gratiot Avenue , East Detroit , Mt 4802121800 Gratiot Avenue , East Detroit , MI4802126125 Van Dyke, Centerline , MI4801526125 Van Dyke, Centerline, MI480151900W. Maple Road , Troy, MI480841900 W. Maple Road , Troy, MI4808421711 Michigan Avenue , Dearborn, MI

4812321711 Michigan Avenue , Dearborn, MI

4812323755 Allen Road , Woodhaven , MI4818323755 Allen Road , Woodhaven , MI4818332570 Plymouth Road , Livonia , MI4815032570 Plymouth Road , Livonia, MI4815040445 Van Dyke , Sterling Heights , MI4807840445 Van Dyke , Sterling Heights , MI4807810700 Ford Road , Dearborn , MI4812610700 Ford Road , Dearborn , MI4812623951 Plymouth Road , Detroit , MI4823913600 Greenfield Road, Detroit , MI4822713600 Greenfield Road , Detroit , MI4822732899 Van Dyke Road , Warren , MI48093666 S. Woodward Avenue , Birmingham

MI4801130500 Plymouth Road , Livonia , MI4815030500 Plymouth Road, Livonia , MI4815024231 Van Dyke, Center Line , MI480153939 S. Wayne Road , Wayne, MI481841790 Maplelawn , Troy, MI480841790 Maplelawn , Troy, MI48084600 S. Main Street , Royal Oak , MI48067600 S. Main Street , Royal Oak , MI4806712801 Joseph Campau , Detroit , MI4821212801 Joseph Campau, Detroit , MI48212165 N. Gratiot Avenue , Mt. Clemens , MI

4804328585 Telegraph Road , Southfield, MI4803428585 Telegraph Road , Southfield , MI480347100 Orchard Lake Road , West Bloomfield

MI480337100 Orchard Lake Road , West Bloomfield

MI480337100 Orchard Lake Road , West Bloomfield

MI480331350 N. Woodward Avenue , Birmingham , MI

480116160 Cass Avenue , Detroit , MI 48202Charles Dalgleish Cadillac-Peugeot

Inc.'Respondents designated with " ,, are "harged under hoth Count I and Count II of ths LOmplaint- The other

respondents an, charged only under Count I.Respondents designated with "H'. have had the complaint dismissed against them by Cummissiun order dated

AUl!st6. 1986(unpublished)

193

Respondent nameCharles Dalgleish , Jr.

Douglas DalgleishDreisbach & Sons Cadillac Co.

Thomas S. Dreisbach

* Arnold Jerome Cadillac , Inc.Roger Rinke Cadillac Co.Roger J. RinkeRichard RinkeMclnerney, lnc.

Martin J. Mcinerney

Birmingham Chrysler-Plymouth , Inc.

Robert M. BrentDaniel DwyerLochmoor Chysler- Plymouth , Inc.

Justin De FrancisDick Green

James A. McinerneyThomas M. Mcinerney, Jr. **Thomas M. Mcinerney, Sr.Monicatti Chrysler-Plymouth Sales , Inc.

Northland Chrysler-Plymouth , Inc.

John J. Mcinerney

Roseville Chrysler- Plymouth , Inc.. James RiehlBill Snethkamp, Inc.

William Snethkamp

Thompson Chrysler-Plymouth , Inc.Joseph P. ThompsonWestborn Chrysler-Plymouth , Inc.

Complaint

Principal place of lJusiness

6160 -CassAvenue, Detroit; M148202-6160 Cass Avenue , Detroit , MI4820224600 Grand River Avenue , Detroit , MI

4821924600 Grand River Avenue , Detroit, Ml

48219675 S. Saginaw , Pontiac , MI480538333 Eleven Mile Road , Warren , MI480938333 Eleven Mile Road , Warren , MI480938333 Eleven Mile Road , Warren , Ml4809314100 W. Eight Mile Road , Oak ark , MI

4823714100W. Eight Mile Road , Oak Park

482372100 W. Maple Road , Troy, MI4808432711 Van Dyke Avenue , Warren , MI4809332711 Van Dyke Avenue , Warren , MI4809318165 Mack Avenue , Detroit , MI4822418165 Mack Avenue, Detroit , MI4822429301 Grand River Avenue , Farmington , MI

4802412200Telegraph Road , Taylor , MI4818012200 Telegraph Road , Taylor , M14818012200Telegraph Road , Taylor , MI4818040755 Van Dyke Avenue , Sterling Heights

MI4807814100W. Eight Mile Road, Oak Park , MI

4823714100W. Eight Mile Road , Oak Park , MI

4823725800 Gratiot Avenue , Roseville , MI4806625800 Gratiot Avenue, Roseville, MI4806616400 Woodward Avenue , Highland Park, MI

4820316400 Woodward Avenue , Highland Park , MI

4820316225 Fort Street, Southgate, MI4819516225 Fort Street , Southgate , MI4819523300 Michigan Avenue, Dearborn , MI

48124

Respondents dl!Hignated with ''-*'' are chargHd under both Count I and Count II of ths complaint The otherrespondents are charged only under Count (

ResprmdHnL, dl!Hignated with "**,, have had the complaint dismissed against them by CommiHHion order datHdAugust G , 1986 (unpublished).

***

RespondfmL, deHignated with "" *" have had Count II of the complaint dismissed against thHm by Commissionorder dated Augu!\t 6 , 1986 (unpublished).

198 FEDERAL TRADE COMMISSION DECISIONS

Complaint - 108 F,TcC.

Mt. Clemens Dodge , Inc.

Principal place of business24211 GratiotAvenue, East Detroit , MI4802124211 GratiotAvenue , East Detriot , MI4802132850 Ford Road , Garden City, MI4813511500 Joseph Campau , Hamtramck , MI

4821211500 Joseph Campau, Hamtramck , MI

4821243774 N. GratiotAvenue , Mt. CleITens , Mr

4804310500 W. Eight Mile Road , Ferndale, MI

48220101 W. Fourteen Mile Road , Madison Heights

MI48071101 W. Fourteen Mile Road , Madison Heights

MI4807118001 MackAvenue, Detroit , MI4822418001 Mack Avenue , Detroit , Mt4822440111 Van Dyke , Sterling Heights , MI4808740111 Van Dyke , Sterling Heights, MI4808731015 Grand RiverAvenue , Farmington , MI

4802431015 Grand River Avenue , Farmington , MI

4802428400 Van Dyke , Warren M 14809328400 Van Dyke , Warren , MI4809329200 Telegraph Road , Southfield , MI4803429200 Telegraph Road, Southfield , MI480348333 Michigan Avenue , Detroit , MI4821 08333 Michigan Avenue , Detroit , MI4821014585 Michigan Avenue , Dearborn , MI

4812614585 Michigan Avenue , Dearborn , MI

4812637300 Michigan Avenue , Wayne , MI4818437300 Michigan Avenue , Wayne , MI481845900 Highland Road, Pontiac, MI4805422025 Allen Road , Wood haven , MI481838000 Ford Country Lane , Sterling Heights , Mt

480778000 Ford Country Lane , Sterling Heights , MI

4807713711 E. Eight Mile Road , Warren , MI48089550W. Seven Mile Road , Northville , MI

481679600 Telegraph Road, Detroit, MI482399600 Telegraph Road , Detroit , MJ 48239

Respondent nameColonial Dodge , Inc.Arthur J. RoshakCrestwood Dodge, Inc.Garrity Motor Sales , Inc.

James A. Garrity

Northwestern Dodge , Inc.

Oakland Dodge , Inc.

Donald Thomson

Pointe Dodge , Inc.Kenneth MeadeSterling Heights Dodge , Inc.AnthanyJ. VivianoTown & Country Dodge , Inc.*

John Cueter

Van Dyke Dodge , Inc.Frank GaleanaAvis Ford, Inc.Warren E. AvisJerry Bielfield Co.Jerry M. BielfieldBob Ford, Inc.

John Ford

Jack Demmer Ford, Inc.John E. DemmerRichard FlanneryGarno Brothers, Inc.Jerome-Duncan , Inc.

RichardJ. Duncan

AI Long Ford , Inc.McDonald Ford Sales, Inc.

Pat Milliken Ford , Inc.B. (Pat) Milliken

pondents designated with " ,, are charged und!!r both Count I and Count II of ths complaint. The otherrespondents are charged only under Count 1.

**Respondents d!!ignatcd with "**" have had the complaint dismi'3ed against them by Commission order datedAugust6 1986(unpublished).

Respondents designat!!d with "***" have had Cuunt n ufthe complaint dismissed against them by Commissionorder dated August 6 , 1986 (\1npubli hed)

193

Respondent nameRuss Milne Ford, Inc.

Russell H. Milne

North Brothers Ford, Inc.James B. NorthRoy O' Brien , Inc. H

Roy E. O'Brien

Ed Schmid Ford , Inc.

Edward F. Schmid

Stark Hickey West , Inc.William HickeyBob Thibodeau , Inc.

AobertThibodeau

Ray Whitfield FordRaymond J. WhitfieldArnold Lincoln-Mercury Co.Arnold FeuermanAvon Lincoln- Mercury, Inc.

Bob Borst Lincoln- Mercury, Inc.Robert C. BorstCrest Lincoln-Mercury Sales, Inc.

William Ritchie

Paul Meier

Bob Dusseau , Inc.

Robert Dusseau

Stu Evans Lincoln- Mercury, Inc. , ofGarden City

Stu Evans Lincoln- Mercury, Inc. , ofSouthgate

Stewart EvansHines Park Lincoln-Mercury, Inc.

Complaint

PriC?ip

place of business43870 N. Gratiat Avenue

, -

Mt. Clemens:- MI

4804343870 N. Gratiot Avenue , Mt. Clemens

4804333300 Ford Road , Westland, MI4818533300 Ford Road , Westland , MI4818522201 E. Nine MileRoad, S1. Clair Shores

4808022201 E. Nine Mile Road , St. Clair Shores, MI

4808021600 Woodward Avenue , Ferndale , MI48220 21600 Woodward Avenue , Ferndale, MI

4822024760 W. Seven Mile Road , Detroit , MI4821 924760W. Seven Mile Road, Detroit , MI4821926333 Van Dyke Avenue , Center Line , MI

4801526333 Van Dyke Avenue , Center Line,

4801510725 S. Telegraph Road, Taylor , MI4818010725 S. Telegraph Road , Taylor , MI4818029000 GratiotAvenue , Roseville , MI4806629000 Gratiot Avenue , RoseviUe , MI480661185 S. Rochester Road, Rochester , MI

480631950W. Maple Road, Troy, MI480841950W. Maple Road , Troy, MI4808436200 Van Dyke Avenue, Sterling Heights

M14807736200 Van Dyke Avenue, Sterlin!) Heights

M14807736200 Van Dyke Avenue , Sterling Heights

M14807731625 Grand River Avenue , Farmington , MI

4802431625 Grand River Avenue, Farmington

4802432000 Ford Road , Garden City, MI48135

16800 Fort Street , Southgate , MI48195

16800 Fort Street , Southgate , MI4819540601 Ann Arbor Road , Plymouth , MI48170

*Re"pondents desi nated with "*" are charged under both Count I and Count II of th,; complaint. The otherrespondents are charged only under Count I

RespondenL d""ignated with " *" have had the complaint dismis ed again t them by Commission order diitedAugu t 6 1986 (unpublished).

RespondentH designated with "***" have had Counl II ofthl! complaint dismissed against them by Commissionorder dated August 6 1986 (unpublished).

200 FEDBHAL THADE CO:vYIISSION DECISIONS

108 FT.C

Respondent nameGeorge KolbKrug Lincoln- Mercury, Inc.Sigmund Krug

Bob Maxey Lincoln- Mercury Sales, Inc.Robert MaxeyPark Motor Sales Co.Slar Lincoln- Mercury, Inc.

Stanley A. Wilk

Charnock Oldsmobile , Inc.Dan CharnockJ. Herbert CharnockAI Dittrich

Drummy Oldsmobile , Inc

John L. Drummy, Sr.

Gage Oldsmobile , Inc.

Bill Rowan Oldsmobile, Inc.William H . RowanRoy D. DodsonSuburban Oldsmobile- Datsun , IncAutobahn Motors , Inc

Paul Carrick

McAlister Motors, Inc.

W. Desmond McAlister

Melton Motors , Inc.George MeltonSterling Motors , Inc.

Robert Zankl

Wood Motors , Inc.Donald WoodLaFontaine ToyotaMichaelT. LaFontaine'Page Toyota , Inc.Robert PageAI Foster

Edward LewisGerald Malooly

Complaint

Principal place of business40601 Ann Arbor Road, Plymouth , MI4817021531 Michigan Avenue , Dearborn , MI4812421531 Michigan Avenue , Dearborn , MI4812416901 Mack Avenue , Detroit , MI4822416901 MackAvenue, Detroit, MI4822418100 Woodward Avenue , Detroit , MI4820524350 W. Twelve Mile Road, South field , MI

4803424350 W. Twelve Mile Road, South/ield , MI

4803424555 Michigan Avenue , Dearborn , MI4812424555 Michigan Avenue , Dearborn , M14812424555 Michigan Avenue, Dearborn , MI481241155 Oakland Avenue , Pontiac, MI4805514925 E. Eight Mile Road, East Detroit , MI

4802114925 E. Eight Mile Road , East Detroit , MI

4802121710 Woodward Avenue , Ferndale, MI

4822015800 Eureka Road, Southgate, MI481 9515800 Eureka Road , Southgate , MI481 9515800 Eureka Road , Southgate , MI481 951810 Maplelawn , Troy, MI480991765 S. Telegraph Road , Bloomfield Hills , MI

480131765 S. Telegraph Road , Bloomfield Hills , MI

4801344460 N. Gratiot Avenue, Mt. Clemens, MI

4804344460 N. GratiotAvenue , Mt. Clemens , MI

4804315100 Eureka Road , Southgate , MI4819515100 Eureka Road, Southgate , MI481957500 E. Fifteen Mile Road, Sterling Heights

M1480777500 E. Fifteen Mile Road, Sterling Heights

M14807715351 GratiotAvenue , Detroit , MI4820515351 Gratiot Avenue , Detroit , MI4820522805 Michigan Avenue , Dearborn , MI4812422805 Michigan Avenue , Dearborn , MI4812421262 Telegraph Road , Southfield , MI4807521262Telegraph Road, Southfield , MI480751951 S. Telegraph , Bloomfield Hills , MI

480132100 Fort Street , Condo 6 , Trenton , MI4818317677 Mack Avenue , Detroit, MI48224

Respond.,nt.., deBignated with .. ., are d:arged unde)' both Count 1 and Count 11 of ths complaint The otherrespondcntsar charged on:)' under Ccunt I

"Hespondents designated with . .,o O' hiwe had the complaint dismissed against thcm by Comm'Hsion order dated

August6 1986(unpublished'Respondents designated wL' h B" " have had Cou lJ of the complaint dismissed againBt them hy CnmmiHsion

order dated August 6 , 1986 tunpubliBh

193 Complaint

Respondent nameGerald Pollock*'Gerald Skokowski**Theodore H. SoldenWilliam VanHecke

Principal place of business1660B-FortStreet, Southgate , M148195-17677 Mack Avenue , Detroit , MI4822440130 Steel Drive , Sterling Heights, MI4807850111 Van Dyke, Utica, MI48087

PAR. 2. For the purposes of this complaint, the following definitionsshall apply:

(a) Dealer is any natural person , corporate entity, partnership, as-sociation , joint venture , trust or any other organization , ar entitywhich receives on consignment or purchases motor vehicles for saleor lease to the public.

(b) Detroit area is the Detroit, Michigan metropolitan area , compris-ing Macomb County, Wayne County and Oakland County in the Stateof Michigan.

(c) And and or have both conjunctive and disjunctive meanings.PAIL 3. (a) Respondents, other than respondent associations and

respondent James Daniel Hayes , are and have been dealers or dealeremployees engaged in the business of selling or leasing motor vehiclesfrom their places of business located in the Detroit area , includingselling or leasing motor vehicles for transportation to other statestransporting motor vehicles to other states for sale or lease , receivingmotor vehicles from other states , and selling or leasing motor vehiclesfinanced by financial institutions located in other states and insuredby insurance companies located in other states. At all relevant timeshereto , in the course of their business, respondents, other than re-spondent associations and respondent James Daniel Hayes , andothers in the Detroit area involved in the acts and practices describedin this complaint have maintained a substantial course of businessincluding the acts and practices as hereinafter set forth , which are inor affect commerce, as "commerce" is defined in the Federal TradeCommission Act.

(b) Respondent associations are member organizations whose mem-berships ,consist entirely, or almost entirely, of Detroit area dealers.At all relevant times hereto, as a result ofthe activities of respondentassociations ' dealer members , including the acts and practices de-

scribed in this complaint , respondent associations and respondentJames Daniel Hayes have engaged in activities which are in or aflectcommerce , as t' commerce" is defined in the Federal Trade Commis-sion Act.

Respondents designated with ,, " are charged under both Count I and Count II of ths complaint. The otherrespondents are charged only under Count I

Respondents designatcd with "H" have had the complaint dismissed against them by Commission order datedAugust 6 1986 (unpublished)

***Respondents designat.ed with "*M" have had Count II of the complaint dismissed against them by Commissionorder dated August 6 , 1986 (unpubJiRhcd)

202 FEDERAL TRADE COMMISSION DECISIONS

Complain 108 F.

COUNT I

Alleging violation of Section 5 of the Federal Trade CommissionAct, the allegations of Paragraphs 1 , 2 and 3 are incorporated byreference herein as if fully set forth verbatim.

PAR. 4. Respondents are now engaging and have engaged, in agree-ment, contract, combination or conspiracy with each other and withother persons, in the following acts and practices , among others, asshown by minutes of dealer association meetings , newspaper adver-tisements (see Appendix A), and other evidence:

A. Adopting and adhering to a schedule limiting hours of operationfor the sale or lease of motor vehicles in the Detroit area, includinglimiting weekday evening hours to Mondays and Thursdays andmaintaining no hours on Saturdays, except for occasional special

sales; andB. Attempting to persuade and taking action to persuade dealers in

the Detroit area to adopt or adhere to a schedule limiting hours of

operation for the sale or lease of motor vehicles , including limitingweekday evening hours to Mondays and Thursdays and maintainingno hours on Saturdays.

PAR. 5. Respondents are now engaging and have engaged , in agree-ment, contract, combination or conspiracy with each other and withother persons , in various acts or practices in furtherance of the actsand practices referred to in Paragraph 4 , including among otherthings:

A. Threatening physical harm to owners, offcers and employeesand families of owners, offcers and employees , of dealers in the De-troit area that attempt to sel1 or lease motor vehicles on Saturdays oron weekday evenings other than Mondays and Thursdays;

B. Threatening to damage and damaging the property of dealers inthe Detroit area that attempt to sel1 or lease motor vehicles on Satur-days or on weekday evenings other than Mondays and Thursdays; and

C. Obstructing or interfering with the lawful business of dealers inthe Detroit area that attempt to sel1 or lease motor vehic1es on Satur-days or on weekday evenings other than Mondays and Thursdays.

COUN'f II

Alleging violation of Section 5 of the Federal Trade CommissionAct, the al1egations of Paragraphs 1 , 2 and 3 are incorporated byreference herein as if ful1y set forth verbatim , except that the al1ega-tions of this Count II are made only against respondents denoted withan t,*" in the caption and Paragraph 1 hereof.

PAR. 6. Respondents are now engaging and have engaged, in agree-

193 Complaint

ment, contract, combination or conspiracy with ach other and withother persons, in one or botllof the- fol1owing acts and practicesamong others:

A. Restricting the advertising of motor vehicles in the classifiedsection of newspapers in the Detroit area; and

B. Restricting the advertising or publishing of the prices of motorvehicles in the Detroit area.

Violations Charged

PAR. 7. The acts and practices alleged herein have had and are nowhaving the purpose and effect offoreclosing, reducing and restrainingcompetition among dealers in the Detroit area in the sale or lease ofmotor vehicles, and , thus, are to the prejudice and injury ofthe publicand constitute unfair methods of competition in or affecting com-

merce or unfair acts and practices in or affecting commerce in viola-tion of Section 5 of the Federal Trade Commission Act. The unfairmethods of competition and unfair acts and practices ofrespondentsas alleged herein , are continuing and will continue in the absence ofthe relief herein requested.

204 FEDERAL TRADE COMMISSION DECISIONS

Complaint - l08F TC.

APPENDIX A

DETROIT NES7/7/65, p. llD

"''"-., .., . ""- ::"".

f ..

'- '

c L O 5 I N G .J . j r . -f- .

'- .

n- H 0 U.. ----o

\ . "....

WID.. ".., & SAT.

;;,

no..- "'Io &ullio ..

... I . . cI.. -. lo al

- - ..--.,..

, PM. II Wet &I 88 18.

DmOIT Avro . DEALERS ASIOCIA TION INC.

._- -

6W u. A-. De.

..

A-I

193 Complaint

DE'DIT NES6/12/69, p. 17C

PUBLIA RECENT SURVEY AMONG INDIVIDUALCHRYSLER-PLYMOUTH DEALERS REVEALS

NOTICE

A MAJORITY OF THE CHRYSLER.PL YMOUTH

. DEALERS IN THE GREATER DETROIT AREAPLAN TO CLOSE SATURDAYS

DURING THE SUMMER MONTHS, TO ALLOWTHEIR SALESMEN MORE TIME WITH

THEIR FAMILIES. .

BUT WILL BE OPENMonday & Thursday Evenings For Your Convenience

UNTIL 9 P.M. . TUESDAY, WED ESDAY & FRIDAY UNTIL 6 p.

AN EFFORT TO REMAIN ABREAST OF THE TIMES.WITHOUT SACRIFCE TO CUSTOMER ACCOMMODATION AND SERVICE.

.. Qr

.. .

U In ti u",, , li br fI CI.hallRutt 1I II.. li btb.. 1K laifartSaesl.SIInbi

"'

C& FtI bb S* Il IW CMsl.PI .. lub c.,1\ li'- Im ti lie! II.. CWI . li IhIiCltti Sa.. kUlt 1I1en..II ta .. .. IW -IJlti, . . II. Dr.,)'IR ii S.I . II

""-_.. ----.... ......,_.. ...--..

tlllSli,1& IIUJIiUu..kt l. lbt.Qr 1I '(..Ic.Ck

. ...--..

206 FEDERAL TRADE COMMISSION DECISIONS

Complaint- - - 108 F:!'.G

nE'OI'r 6/13/69. p. 180

Effective Saturday, May 31s1

PONTIAC DEALERS.

The Greater Detroit Area

Wil Cion Salurc!c:

For TIe SlUer MODUa

IUlowiDg OW' Salesmen TIe Reede

Time With Thir Famili

W. Wil B. OpeD

Mondy" Thuray Til I 'JITuesy, Wednesay" Friay Til & P Jl

II P8, .. am II. 1o

..:..

PG," II Ct o...

....

an PI SI It nsllIll

--. ..

.. cw ..

IK; I Nnw II.""10. W8

IlIITI P8.... M8 lI/II_II.

---

II II PI, IE.

... ..

IJ lU PI II ti II. . 18 II

.""

"" D..

""

w_../l1I

..-

PIpgli

"".

wnlUIPI68.. 0. ..

A-3

193 Complaint

and

Saturday has been mov

to Monday, Tuesday, and

Thursday evenings at

most of the Dodge Boys:

8a-_8n""....d---"""-.... on "'oG., .. pd tD

_...

.Atoe.Ft-onpn..aI..DlIlDo..""..Ii,Tu.

"'''

......HI8I...dD" *fSW.(OwI,.DDD..b8UL

-....------..--.-..---""---

The Detroit Area Dodge Boys.

----

ANOTER PUBUC SEVI FIOM

A-4

208 FEDERAL TRADE COMMISSION DECISIONS

Complaint 108 F.

D!':ROIT '/17/09, p. Be

ATTENTION OLDSMOBILE

BUYERSEFFECTIVE JUNE 21st THE

FOLLOWING OLDSMOBILE DEALERSWILL BE CLOSED SATURDAYS

UNTIL SEPTEMBER 6thNew Weekday Safe Hours wm Be As Forrows:

MONDAY 9 A.M. TO 9 P.M. WEDNESDAY 9 A.M. TO 6 P.M.TUESDAY 9 A.M. TO 9 P.M. THURSDAY 9 A.M. TO 9 P.M.

FRIDAY 9 A.M. TO 6 P.M.

WI THANK TOU FO TOUR PATJONAGI

GAGE

OLDSMOBILE21710 Woodward

"399-3200

SUPERIOR

OLDSMOBILE1S000W. 7MileRd.

342.7000

ROSEDALE

MOTORS INC.17411 Grand River

VE 5-400

A-S

193

lmTROIT AUTO DEALERS ASSOC. , INC. , gT AL.

Complaint

DETIT TR. PRESS6/19/69. p. 13D

PUBLIC NOTICEYOUR METROPOLITAN DETROIT

BUICKDEALERS WISH TO ADVISE

YOU OF THEIR

NEW SUMMER HOURSWE WILL BE OPEN

MONDAY. TUESDAY AND THURSDAY

NTIL 9 P.

WEDNESDAY AND FRIDAY

UNTI & P.

WE WILL BE CLOSEDALL DAY SATURDAY AND SUNDAY

DETROIT METROPOLITANBUICK DEALERS ASSOC.

209

210 FEDERAL TRADE COMMISSION DECISIONS

Complaint -

DETROIT FREE PRESS6/5/70, p. 10C

NOTICECHITSLU.PLT"OUTH 'IALIIS

OF .tIA Tit 'rTROIT ANNOUNcrThy wil be closld SATURDAYSduring JUNE, JULY .. AUGUST, toallow their emploYl1i mar. timewith their familes,

IUT WILL IE OPMonday" Thurs. Evenings 'til' ".Tues., Wed" Fri. 'til , ".

'0' roul COHYfH/fHCf

108 F. 'I,

193 Complaint

DETOIT FR PRESS6/2S/70. p. 9B

Public Noticeso 0" ....O.U CI. "IH IIII

TI" WITH THllt '..WILIIS DUIJNG THI SUMMII . . .

PONTIAC DEALERS

WILL BE CLOSED

SATURDAYS

EFFECTIVE JULY 4th

OUR SUMMER HOURS ARE:'MONDAYS AND TKURSDAYS 'TI 9 P.M. .

TUES., WEDS. I FRIDAYS 'Tll 6 P.tllru lldy and Augusf

AImt Pf.. atrr PI II 11.111 "I' II. a 81LJ1 8"1. 1_,

""' _.

to.... ..- .... a.'Du. 0I""

111 It II. .. II( CUll JIU .. .1110 't1C..1C

.- '-.

W;" 1I,.11..

.-. .....

m 1I1i' PI a. PI'Ww., " W-. ..co. .... 'I I&, SI.

..-... -."'''. ..-.

wco. Wlm NI1& .. "'" filt II .m..i P8 ""11: IfIlL 1m

--. .....

...... MI.

-. -.

00_.

212 FEDERAL TRADE COMMISSION DECISIONS

Compbint - -

DE'ROIT 6/2./70. p. lSC

NEVER ON

SATURDAY(DURING JULY AND AUGUST)

d like to remind you that The

Cbmolet Dealer of Greater Detroit wil

be ckied on Saturdav durin the months

of July and Auglll Buf 01/ of us "illbe open unfil 9:11 mry Monday andThursday throughouf the nmmer.Come on up and see us sometime.

THE METROPOLITAN DETROIT

CHEVROLET DEALERS

J08 F.1'.

193 Complaint

D!:TRot NrS5/H171, p. J.C.

ATTENTION,

ALL WEEKEND

CAR SHOPPERS!

THERE ARE JUST

SATURDAYS LEFT

. SHOP 'OR A

DODGE DEAL

, Colo.iol'"Cn.twod Do..EosI,WI' DId,.

Gorrty Mo'or Sol..Fomood DId"Honlll Dodl'av"k Iro!l.nMoM.. Dedi'

i M,tor Oty Dod,. \

Th ,.. .&w (,M' DDC,. D..lm) ..., MI.. ,..1., .ffu ...tt .d perh-M spclalbb " -,., ..k..ch witt tllr "'01" paunlr I.DI. n.t'. dy 8ul D.trl-8 D.,lan .11 - nosm SATURDAYS hnlt J...Jllr - .nll Alplt. I"'. ".J" .,. MOte'Tii,. nIDi T "I" " ,ItaM fl' bI '"'. WI

11'001 0.... Do"IIrl.."", Do .'ob,l. Do" aoyno' Sovth '0111 Dtd .SI.rIDf Hoigh To.. & Co DoVe Dyb Do..Jim vm Do

T..h. .A,,JO

214 FEDERAL TRADE COMMISSION DECISIONS

ComplainJ - 108 F.

nETOI FR PRESS5/22/71. p. J.lB

f)' PUBLIC NOTICE - TaT .. 811 aA P_ "1K M. y K..IY

:'

'I 8Q ...TI .AX 'I

CHRYSLER-PLYMOUTHl ' DEALERSOF TI GRTE DETOIT

. ..

. t.aOSE SATURDAYS

ImING TH SmOIER nmNCING L" Y 29, 19n

' I'B "0"( C8NT'\""CE .- "u. 8E . . MO:\"DA Y .. TBDA Y "E' GS "I .

DAY. 'tJ\iESDAY .. FBIIUV "I . I'

" .

. THIS ADDITlO:o.U. LESrBE TIM IS VOL-UNAlY DOXATE 8Y "OL"B P"CCSPIRIT nIYSLEPL'"MOI: DEA"EB IN AN EROB T TO PBO OT ali.

...

EHLO .. WMM"1 BEU8!U

. .

193 Complaint

DETorr FR PRIS5/"/71, p. lec

NEVER ON

SAXURDAY

- -

DURING JtNE-JUY AN AUGUST

----..-

- An. Chvro.t D..lors 01 Greet.r D.troit - - - : . .

. .

",11 be clos.d SatUrdaY' during tho monts 01 'June. July end August'- so our 5elesmn

enioy the summer. Whicn mens w. 11 all

. in beHer Ipiri to meb good Chevy dee!sthrO\gho;Jt the rest of tn. weet

. . .

endondey end Thursd"y .yenings until 9i).

_-

.se YOu thn. And "'8 hop8 you'l enjoy

.. your Saturday, en much IS we will.

TH METROPOUTAN DETROIT

CHEVROLET DEALRS

216 FEDERAL THADE COMMISSION DECISIONS

Complaint -

DErr nt PItS507T11. p. 1.

Public Notice-SO OUR I MPlOYFS CAN SPINO MORI

TIME WITH THEIR fAMILIES oumNG TH! SUMMER.

PONTIACDEALERS

CLOSEDSATURDAY

tFFECTI.VE MAY 29th

OUR SUMMER HOURS ARE:MONDAYS AND THURS. ilL 9 P.

TUES.. WEDS. & FRI. ilL 6 P.

UNTIL SEPTEMBER1D1Irm ,,'IU

, ..

PUtt WI; racT..,. M;. .k'"Jllln""1& Mt IC PlrwQ11..._"". h._

...

li I' tI. PIlTUflU II ..Tw-. "'Ie' ht. NkIIUIfI'-""1A1I1&1 'I ..._t.. II"i. MI . c-.... M'd

.ltI.tI''''lIl. tI#KI.n""UltJh",,' "". .u-

-..

s. ,. s. li WI" ..rw aJU,-,...... at... _h_.. M..'t'_"" .( "UJlI"n.tt ''''''Io''hoI C" lI'd

....'"".

108 F

193 Complaint

DETIT FREE PRESS5/27/71, p. lOB

A-14

218 FEDERAL TRADE COMMISSION DECISIONS

mplaint - 108 PeT.

tlr:rr nu /2'/11. p. ZB

were

outon Sat

J I ", .1 /,'(1H' . L t:

/.,

1 .

_-"

1r

'-'

i(" \:.'1

L - .J ,

,"' , .

S!,lnlnJ; IllmorTOW . wc lI he cIoJ;d every S:tturJ;IY ' rjl L,borD:I)' so WI. Gin l' OjOY mon: o ( !hc ummcr season wirh our familiesIn rhe mc.amimc. our S::le:i and Service f.:ciliries will b openMond y rhru Frid;JY ' USU:JI.

Why don r you bug: uut. roo. Come on in and see us .xcept Saturdays.

_...."Iurn...

-...

iIw.,,-,,-

,,,...

-I1TO M01'OU. --

(....."'''

..aI'"'''''Gr'",

_...._-.

1.1

.",aa-.ofOlI.110.*"1""--_.ID_I"",,-,-'

:"" :....:,..!..,.,.-

-.01011.

-':

1'''51...,.....-

- u.-. wa....-...LI__ ..CM.

...., MOJO --II:iW..fo_,

"'"

"'__IOU.

" , - -

,.,,,'''..0.- _c.......

"'. .."--

193 Complaint

DETROIT FREE PRESS5/23/72, p. 9B

NEVER ON

SATURDAYBEGl\1,ThG MAY 27

THROUGH AUGUST

Vie d lie to remid yoo tJ The ChmoltDulm of 6rultr Detr ii be OOed Sa t!y be !ly 27, th ! But all of us /till open unti 9:00 e

Mondag and Thurzg throughout thtsummtr. Coe DlII &D let lI some

THE METROPOLITAN DETROIT

CHEVROLET DEALERS

1.-16

220 FEDERAL TRADE COMMISSION DECISIONS

Complaint -

DETROIT 5/24/72, pa 21C

MOST OF USDETROIT-AREADODGE DEALERS

WILL BE

CLOSED SATURDAYSDURING

JUNE, JULY, & AUG.

........-_.......", ","'."'-... .. ." - .. ..

Dco-..".'7'"w... "11' Op.' h7' ,.N.MotHII" & T7t"dll,......,.,..,..c----""-""'''''C_''''

.. c. G""

_. - . .. .; ..- -.

'00 ,..

. -.,. ..

",..J,.

"'''.

'I..

....."

DIIVE CAREFULLT.ENJOT TOUI WEEKENDS.

ND ON THI

DETROIT AREAGOOD GUYs.

108 F

19:1

DETROIT AUTO DEALERS ASSOC. , INC. , ET AI.

Complaint

DEOIT PR PRESS5/25/72 p. 17C

Public Noticeso OUI (W"'Lons CAN SPEND MOil

TIME WITH THEil ""WILIU UIINCi THE suw..u . . .

PONTIAC DEALERS

WILL BE CLOSED

SA TURDA YSEFFECTIVEMA Y 27TH

OUR SUMMER HOURS ARE:MONDAYS AND THURSDAYS ' TIL 9 P.TUES., WEDS. I FRIDAYS 'TIL 6 P.

UNTI SEPTEMBERIIIT ,,li.I",. ".d. 8c1Lf8uc1&

'-;' """

Ie WUAlllfi!.

...,_. ....

'''"tIIEU WII NI,"

, .....

....mNmK.--...i NUl NI ..IWII . 'II.

"'1 Clf' fWUt ..il QlIII'

.. II NI ..

--.

11ft PI ..

-"- ""'

MIII..II'

"'.

c.,

,,,,'"

I( Nm.

..,

.. al111f1a

"".

"!' PI II ..

"""'

l1101.

tII f'lUIIMo_-

.....

PHIi 1(1I

--., : '-. : . , " - ':-::' ' ''' ''- ;;. -

A-IB

221

222 FEDERAL TRADE COMMISSION DECISIONS

Compl';int

DETOIT FRE PRESS5/26/72, p. 10C

Closed

Saturdaysfor the summerat the sign

of the cat!

Effective immedialeJ). .1I Detroit .rlULilD-Mfl dwen .iJ be dON &turday. to Jive emplo)"ee ful wektnda wiLh

thei laa. W' amdertandi1r in ,iaMonday thr Friday (incJudinE Moaday

and Thun.y ..b

" '

ti

II o clocj iI appriited.

4: .

108 F.

193 Complaint

DETROIT FRE PRES5/26/72, p. llC

Detroit Area OldsobUe Dealers WilBe Closed Saturday andMemorial Day.

NEW SUMMER IIOUIS,'J' II' f""'"" .,.. 'fll . ,.I

T'''''rl, W""U'U u. Frill'''.,.. 'TII I Mt ,It.... hint.,.

Charlldr Oldsmobile24555 Micni/iln A...nul, D..rborn, 56S-Orummy Olckmobile1-4925 . Mil. ROld , East Detroit , 772.2200

Edmond Motor Solei12101 Joleph C.rnpllo, H.mtramc , 36S.SS00

Gate Oldsmobile21710 Wood-ard A...nue, Femd.Ie , 399.3200

Gloumoll Olefsmobn.2800 T.I'litaph Ro.d, So+Mield, 354.)300

Har,roYt Olcbmobill:n073 Michi..n "...rwl , Wayn. , 721-31.0

K.y OldsmollU.2446 E. 12 Mil. RHd, Warr,n. 751-6100

liI LIt Oldslloblie295 South Gt.tiot Mi. CArn",. 465-56loudale Moton17-t11 Grind Rj...r, Detrit, 272-4212

liI Rowenl Oldsmobil.15S EUf ', Soutl-lljlln. 282.)100

lob Sob Olchrnobn.15205 E. J.n.n. . Grone Poinfe P.rk , 821-

Suburban Motors Company565 S. Wocw...rd Avenue. .irmin9h m.

SuperIor Oldsmobile150 W. 7 Mae bod, De"oi, 342-

Detroit Oldsmobile Dealers Association

50 TB'T .uLO,..ta SA.L PE.5G:\ J:L !8A.'. E.OY

CHRYSiEii:PLyiiOUTHDEALERS

224 FEDERAL TRADE COMMISSION DECISIONS

Complaint - 108 B\T.

DETROIT RES6/1/72 , p. l.SD

PUBLIC NOTICE

OF THE 6RE.4.TER DETROIT AREA

WILL CLOSE SATURDAYSDURING THE SUMMER

OR YOLB CO:-",'E.'iIE CE 111 1nLL BE OPE,IIO:\' DA Y Ii TH1.RSD.4. Y E\' 6S 'TL. P

' V, 1ID:-ESDA Y Ii Fa ID.\ Y E\' EM:\6S 'TIL a P

THIS .'DDITID,"-'L LEISUIE TI'IE IS '. 01.l:\T.'IIIU' DO:\'TED B'k' 'k. 8l"B PI"BLiCliPllllTED Call'k. SLEII.PLBIOlT1 DE.'L-EllS L'\ A.'\ D7.BT T8 .BO'lOT BI:BE'I PL8YD .. C_Jn:sIT BELA n.!I

DETROIT AUTO DEALEI;S ASSOC. , lNC. , ET AL.

193 Complaint

Det !' Pn5124173, p. 11c

PUBLIC NOTICE

CHRYSLER PLYMOUTH DEALERS

DF GREATER DETOITWILL IE

CLOSED SATURDAYS

MAY 26th THRUSEPT. 1st

OPEN MONDAYS & THURSDAYS T1 9P.MWESDAY, WEDNESDAY FRIDAYTIL"6 P.M

225

226 FEm HAL TRADE COMMISSION m CISIONS

Complaint

Deit Fr Pr5/26/73, p. lO

Closed

Saturdaysfor the Summerat the sign

of th e cat!

EIad.. i....\) an 'In'Ullh Au, .n troit ar.a Uncoln-Marc:ury d.al.1' will b. elcMld

-da to g;.. omoy fun _kend

-..

foTIf You IIndJtndn; in wifg da hvFr Concucl'lI Mon an'I ";Olm ""I 9. dod);. apprecd.

108 F.

193 Complaint

Deit Pr Pr5/30/73, . p.

GREATER DETROIT CHEVROLET" DEALERS

r the conveniente 0' ouremployees and their -lamiles the GreaterDetroit Chevrolet Dealerswil be c105ed on Saturdays,during the months 0'June, July, and August.

. '

. ,0

: OUr Sote Dertmentwil he open during the

. following hours

MONDAY AND THURSDA 8:30 A.M. TO 9:OQ P.M

TUESDAY, WEDNESDAY AND FRIDAY. 8:30 A.M. .to 6 PoM

VE A SAFE AND HAPPY SUMMER"

228 FEDERAL TRADE COMMfSSION DECISIONS

Complaiht -

Deit Ne5/30/73, p. 2l

IP The AMC

,.

Dealers of

Greater Detroitwnl be closedSaturdys

. .

. June 2nd thruSept. 1 sf.

. .

CI Rplu we lI

. .

n. II died .. tW Fr

. .

1\-

108 F'.T:C.

193 Complaint

Deit Fr Pr6/2/73, p. 9c

NOW-THRU SEPT 10th .

" DETROIT AREA

DODGE DEALERS.

. WILL BE

CLOSED SATURDAYS .DURING

JUNE, JULY & AUG.III .rd., to a'''. OUP lei.. ana '.",n DV) 'n gab'Nn fu cw of R. w8nc tu ....r da.. Co. DolopI'" So bogi"'n;- 2.

We'll stay open 'til 9 p.Mondays & Thursdays

So lha yo"' ho plent of con 1 ftpil,"" tirt- to b-ing 'aur c:cr - il lor depend

Go W)'' IWrvjU , mo 1 01 us win stl: Dp an9:0 PM Mond GPid Th 811,wgs du;.IJvIy, Ond Auil. Tou " :!?\oww

:..::. .... ---

" DRIVE CAREFULLY .ENJOY YOUR WEEKEND

DEPD eN ;Ht

- _

DDDGDETROIT AREA

BOY GOC?D GUYS -

A-26

230 FEDERAL TRADE COMMISSION DECISIONS

Complaint 108 F.T:C.

DETIT FR 1128/73. p. HE

DODGEBOY

ROOMS W\LLOUR S\\O

SI\1'URDI\'(S,BE CLOS

DECEMBER WS1'I\R1'\NG

We etroitAreaGood Guys

are doing our bit to ease the energy crisis.0"..

~~~

CI"y tit "."'''.c h.c"". our ro.. arM"'!! 11'1 ,..d hOfIl'." ICb -lnl ,II 8111: U""!I) fll f '!'f (,,,nCh , A"O,I h"'Y'''It' "'"IL1 L .Clel ",, """lIe 111"" 10 hrlp lIiln ",,' ,hort'll',

'I,II"'.hl1th'DV,"Th'libi:lllt.mn

'-., .

I w, :II)" DO"" "'cn rQu'" Fn("f . .' "su"-8nd """Y 01 our a/OW'D("" ""I! beOPlI'MDnd.y."ClThu .y_n1ni:sto')'rC:O"vrn'.nCI.

re doinc our bit, and ., re dependinl on )'our help, too!

fDCAIIPEN'TERSAll DD. HDIl8i-'Da1& SuflDa1-1).,""""ft'", .1U"" IOSOOW,tohl"" 4OI1t_Dy.W_, _"&8I -"III, . M;, ..nJ1

"".

,,h_ 4I0I7

,plDHIAl DODGl INC. KtJ BrQTHERSINC. GAKlND DDDGt lfit. Jalr....,1I

"''

11 c;..,... '-11_""... IQIW, I.MiI. 2'.'5W, 121M,...00_._h "701 0.""'

""''.

'1110' -""Hv".

""''

..a71 '-o. MC"-.'015

tRsrooo DODlOlllr: G.lMiI8S11s. P'INTfDODGllNt T-Ic.D8'-32ISQ_'d 127""_" IIOCI_IoA.. 310UGo'''

G."..nC," ,... ',IH _""ol Mo".'167 Dr..r Mo"'111' .m'ftRNWOOODDDIOf.INr: .."CityJWL-- II Brl., V.U DYKf DODCll8t

:Jt1QQ w_....01 A.. ISSo.lo",,, 'ID3CII.. V8nD,.,.....I.""",U21D '-n",,'- "", . .'DSS 0.,_, _10. ""'13 W..... .."11

C.rnlf Motor Slies In : MI.O_1Dcg 11I S!UTtlPOIHTE DODGE JlMVINCEDODG!.INt.I'SDD_"""'..- ! 'In.N c;,..,,,_. IHOC1 2311F."

'-"'''

_10 "111 ""0._..._101'0.3 '8"". -,,41"'0 w--.-" 1""1

;?-

"2'7

193

u__. --- -- --..--..- ------. , u.-"

' -- ---.

Complaint

1I/.:f/7..; 'P...:

:..- '

GEUi;An'te DlIO

---- - . "

-Ct3iVRE)LU-o AL"ER

. '

until further notice,

- _..

y,illbe4ose-'ro

- Saturdays starling Dec. .1, f973For your 5hopptn; conwlni.nCI

we wil remaIn open

. - MON. & THURS. NIGHTS TIL 9 P.-- TUEs":'WED =FRI::"3D 'A M.=b:bOP. C- -

. . : . .. ; . ' . ----., ." .

..,, 8

. . . . . ": . . .. ' " , . " " -. . ' .

1\-

232 FEDERAL THADE COMMISSION DECISIONS

108 F.Complaint

SPEC1AL ANNOUNCEMENTYOU TR.h.COUNtYPONTIAC DEALERS

- - ~~~ ~~~

our 'port to help. So. the 22 Triount PDntioc Dec:dcrs have deided todose thir Ihwroonaevery Saday, beginn Decembr 1st. This ,"11 be decr cnjng ou power commption byapproximote1y 15%.

AUDETPONTIC. INC.lru8uh...'rr, 'lml...UI

IARNm'DNTIAC. INC.IUII18..1J.ull_u

"".....

815...,ID

.,

,lt III llSJ '6"1l1r.. tAt rRfJ#U ll! un .rr tI.IELCASTRD

PONTIAC, INC.DZIW.....,

"'''''.

'!AGDI

....... . ' - -

' A1rllDRA

".'

ACKER 'D1nIACIM CAUSL!PDNTIAC, INC.

INC. f::=

- - ::'''''''- -

... I 14

."'.

.U--,'-8.1Q._-

...

III"""IW' WotI ID"BRUCE tP.IGPONTIAC. INC.

"'.

'-"'1I"'mI. 81181n

,lCK W. HAUPTSALES. IHC.JUl..

.."""

:;,t

.:,

.-.. ani

RUSS DKNSDOSALES. INt.....,-oKtA If... ....,_nMtMU1PDNTC, "C.",(Iin_

"-...

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POOTIC IlAiLSTORE.

......

:iI'''.8U

linEPOrmC CO.In.'.''

_... ...-

IDI smm. .OHTC, INC.mD5..liol-8w'''..1I1

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.1M FRLI"D'DNTlC, "C.

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iHELTON'ONTIAC- IUICK, IIC.1l1. 1o-""a.Of, ."""_Ua

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SIMPSON 'ONTIACSALU. INC,1I.'If"" .-..u. aaw.,a

....

SKiNNER.FlUlN-iUTO SALES, INC.

_111. ..10"""."".18".

...

'DRTRFJELD WILSONPONTIAC, IOC.tIl..II'-

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RADY WOOO -PONTC, IIC."'1I11W,,

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'.

193Complaint

H/.2 /7.3/ 1" .R.

:lt!..

METRO

BU!CK- L DEALEftS

UNTIL FURTHER NOTICE THE. -_.METRO eUICK':OPEL DEALERS

VlILL BE CLOSED .

:- ,- ----,.---- --.. ----...

SA TLtRDA Y . .. BEGINNIDECEA1/JER 1, 1973 .

FOR - OUR SHOPPJNG '-_uJVENIHJCE WE WI

. :

. MONDAY AND THURSDAy

::'OflDA Y AND THU SDA Y

8:30 A.M TO 9:00 P.M.

, -

TUESDAY, WEDNESDAY & FRIDAY

8:30 . TO 6 P.M.

A-3D

'6\0';'6$C\';D'6'6\0

"\,, .

ltf'v

-- ;\'\"-'" "

co"',,

\,\,p

/'\c."\O

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1J -..I"",I lei -'Ca. .

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the-- 0 .

..""

;;."o ?

.. \

193 Complaint

Now Detroit MetropolitaFord Dealerswill be closedOn SaturdaysUntillurther notice participating

Detroit Metropolitan Ford Deale..wil. be clo.ed Saturday beginningDecember I , 1973.

For your convenience we will be opennriI9;OO P.M. Monday and Thu..doy,

.and until 6:00 P.M. Tue,day, Wednesd"yand Friday.Detroit MetropoliortFord

- 0J

'''

,I

.." - .. ::::. :::

/'f3f/7.

A-32

236 FEDERAL TRADE COMMISSION DECISIONS

Complainr

1.2/9 / '7"

J.t

..... -..

CL"OS.

SA TURDAYS-JThe Ford Deqlers of MetrO.

. polltan Detroit ;,ot.d" over-.whelmlngly close theIrnew and. used car .ales

. rooin on Saturdays. .

, As a result.l Avis Ford wil b.,closed SaturdCJs Immedl-

. ately, unti further notice.Avis - Ford wil be openMonday and Thul:sda,.nights JI 9 m. for yourconvenience.

.,#.. -;. ~~~ ....

J'..

~~~~~~~

108 F:'I:C:

''!':-

237 Decision and Order (Chevrolet)

DRCISLON f:ND- ORDER

The Commission having heretofore issued its two count complaintcharging the respondents named in the complaint issued in this mat-ter on December 20 , 1984 , with violation of Section 5 of the FederalTrade Commission Act , as amended , and the respondents having beenserved with a copy ofthat complaint, together with a notice ofcontem-plated relief; and

The Chevrolet association , the Chevrolet dealers , and the Chevroletindividual respondents identified in Attachments A , Band C to thisorder, their attorneys , and counsel for the Commission having there-after executed an agreement containing a consent order f;)y Count IIof the complaint, an admission by the identified respondents of all thejurisdictional facts set forth in the complaint, a statement that thesigning of said agreement is for settlement purposes only and does notconstitute an admission by respondents that the law has been violatedas alleged in Count II of such complaint, and waivers and other provi-sions as required by the Commission s Rules; and

The Secretary of the Commission having thereafter withdrawnCount II of the complaint from adjudication in accordance with Sec-tion 3.25(c) of its Rules; and

The Commission having considered the matter and having there-upon accepted the executed consent agreement and placed such

agreement on the public record for a period of sixty (60) days , now infurther conformity with the procedure prescribed in Section 3.25(1) ofits Rules, the Commission hereby makes the following jurisdictionalfindings and enters the following order:

1. Respondent Chevrolet dealers identified in Attachment A are allcorporations with their principal places of business located at theaddresses shown in Attachment A.

2. Individual respondents identified in Attachment B are offcers ofvarious Chevrolet dealers , as shown in Attachment B , and as suchthey formulate, direct and contrbl the acts and practices ofthe dealersfor which they are offcers.

3. The respondent Chevrolet association identified in AttachmentC is an incorporated trade association for Chevrolet motor vehicledealers with its principal place of business located at the addressshown in Attachment C.

4. The Federal Trade Commission has jurisdiction of the subjectmatter ofthis proceeding as it relates to Count II ofthe complaint andof the respondents listed in Attachments A , Band C , and the proceed-ing is in the public interest.

238 FEDERAL TRADE COMMISSION DECISIONS

Decision and Order (Chev-rolet) 108 F. 'I.

ORDER

For purposes of this order , the following definitions shall apply:

1. Person means any natural person , corporation , partnership, as-sociation, joint venture, trust or any other organization or entity, butnot governmental entities.

2. Dealer means any person who receives on consignment, or pur-chases, motor vehicles for sale or lease to the public , and any directoroffcer, employee, representative or agent of any such person.

3. Other dealer means any dealer not named in this order.4. Dealer association means any trade. civic, service, or social as-

sociationwhose membership is comprised primarily of dealers.5. Detroit area means the Detroit, Michigan metropolitan area

comprising Macomb County, Wayne County and Oakland County inthe State of Michigan.

6. Respondent means any corporation listed in Attachment A, anyindividual listed in Attachment B, or any association listed in Attach-ment C, and the officers , directors, representatives, agents, divisionssubsidiaries, and successors and assigns of any listed corporation orassociation.

It is ordered That each respondent shall cease and desist fromdirectly or indirectly, or through any corporate or other device , enter-ing into or continuing or carrying out any agreement, contract, combi-nation or conspiracy with any respondent or any other dealer ordealer association in the Detroit area which has the purpose or effectof'

A. Restricting, regulating or limiting the advertising of any motorvehicle in the classified section of any newspaper or the advertisingor publishing by any person of any price , term , or condition of sale ofany motor vehicle , except to the extent that the restriction , regulationor limitation of such advertising is necessary for the purpose of engag-ing in lawful joint advertising; or

B. Maintaining, adopting or adhering to any policy, act or practicethat restricts , regulates or limits the advertising by any person of anymotor vehicle in the classified section of any newspaper or the adver-tising or publishing by any person of any price , term , or condition ofsale of any motor vehicle, except to the extent that the restrictionregulation or limitation of such advertising is necessary for the pur-pose of engaging in lawful joint advertising.

237 Dccision and Order (Chevrolet)

- II.

It is further ordered That each respondent shall cease and desistfrom , directly or indirectly, or through any corporate or other deviceperforming any of the following acts or practices, or encouraging anyperson to perform any of the following acts or practices , or enteringinto or continuing or carrying out any agreement, contract, combina-tion or conspiracy with any other person in the Detroit area to do orperform any of the following acts or practices:

A. Requesting, recommending, coercing, influencing, encouragingor persuading, or attempting to request, recommend, coerce , influ-ence, encourage or persuade , any other respondent or any other deal-er in the Detroit area to maintain , adopt or adhere to any policy, actor practice that restricts, regulates or limits the advertising by anyperson of any motor vehicle in the classified section of any newspaperor the advertising or publishing by any person of any price, term, orcondition of sale of any motor vehicle, except to the extent that therestriction , regulation or limitation of such advertising is necessaryfor the purpose of engaging in lawful joint advertising; or

B. Requesting, recommending, coercing, influencing, encouragingor persuading, or attempting to request , recommend, coerce, influ-ence , encourage or persuade, any other respondent or any other deal-er in the Detroit area to change his advertised or published prices.

III.

It is further ordered, That nothing contained in Parts I or II aboveshall be construed to prohibit: (a) any respondent association fromformulating, adopting, disseminating to its members, and enforcinglawful guidelines governing the conduct of its members with respectto advertisements that such respondent association reasonably be-

lieves would be false or deceptive within the meaning of Section 5 ofthe Federal Trade Commission Act; (b) any other respondent fromparticipating in such activities as identified in Subpart (a) of an as-sociation of which such respondent is a member; or (c) any respondentfrom informing or advising anyone regarding what the respondentreasonably believes to be the requirements of any other existing or

proposed federal , state , or local law, regulation , or order, or publish-ing such interpretations thereof.

240 FEDEHAL TRADE COMMISSION DECISIONS

Decision and Order (Chevrolet) 108 F.

IV.

It is further ordered That the respondent association listed in At-tachment C shall cease and desist from failing to maintain for five (5)years following the taking of any action against a person alleged to

have violated any advertising guidelines as described in Part III ofthis order, in a separate fie segregated by the name of any personagainst whom such action was taken , any document that embodiesdiscusses , mentions , refers, or relates to the action taken and anyallegation relating to it.

It is further ordered That the respondent association listed in At-tachment C shall:

A. Within sixty (60) days ofthe date this order becomes final , amendits by-laws to incorporate by reference this order , and provide eachmember with a copy of this order and the amended by-laws;

B. For three (3) years from the date this order becomes final , provideeach new member with a copy of this order and the amended by-lawswithin thirty (30) days of the new member s admission to the associa-tion.

VI.

It is further ordered That, for a period of three (3) years from thedate this order becomes final , the respondent association listed inAttachment C shall notify the Commission at least sixty (60) daysprior to the adoption of any advertising guidelines as described in

Part III of this order.

VII.

It is further ordered That each respondent shall , within sixty (60)days after this order becomes final , and then annually thereafter fora period of three (3) years , fie with the Commission a report , inwriting, signed by the respondent , setting forth in detail the mannerand form in which it has complied with this order.

VII.

It is further ordered That each corporate respondent shall notifythe Commission at least thirty (30) days prior to any proposed change

237 Decision and Ordcr (Chevrolet)

in that corporate respondent, s ch as dissolution , assignment or saleresulting in the emergence of a successor corporation , the creatidhdissolution of subsidiaries or any other change in that corporate re-spondent that may affect compliance obligations arising out of thisorder. In the case of each natural person respondent named hereinfor a period of three (3) years from the date this order becomes finalsaid respondent shall promptly notify the Commission ofthe discon-tinuance of his present business or employment and of any new af-fiiation or employment with any dealer or dealer association. Suchnotice shall include the respondent's new business address and astatement of the nature of the business or employment in which saidrespondent is newly engaged , as well as a description of the respond-ent' s duties and responsibilities in connection with the business oremployment.

ATTACHMENT A

Jack Cauley Chevrolet , Inc.7020 Orchard Lake RoadWest Bloomfield , Michigan 48033

Matthews-Hargreaves Chevrolet Co.1616 South Main StreetRoyal Oak , Michigan 48067

Dexter Chevrolet Co.

20811 W. Eight Mile RoadDetroit , Michigan 48219

Merolls Chevrolet Sales & Service , Inc.21800 Gratiot AvenueEast Detroit , Michigan 48021

Dick Genthe Chevrolet , Inc.15600 Eureka RoadSouthgate , Michigan 48195

Ed Rinke Chevrolet-GMC Co.26125 Van DykeCenter Line , Michigan 48015

Jefferson Chevrolet Co.

2130 E. Jefferson AvenueDetroit , Michigan 48207

Mike Savoie Chevrolet , Inc.1900 West Maple I-wadTroy, Michigan 48084

Lou LaRiche Chevrolet-Subaru , Inc.40875 Plymouth RoadPlymouth , Michigan 48170

Les Stanford Chevrolet , Inc.21711 Michigan AvenueDearborn , Michigan 48123

Walt Lazar Chevrolet , Inc.12000 Telegraph RoadTaylor , Michigan 48180

Tennyson Chevrolet , Inc.32570 Plymouth RoadLivonia , Michigan 48150

Mark Chevrolet , Inc.33200 Michigan AvenueWayne , Michigan 48184

Buff Whelan Chevrolet , Inc.40445 Van DykeSterling Heights , Michigan 48077

George Matick Chevrolet , Inc.14001 Telegraph RoadRedford , Michigan 48239

Wink Chevrolet Co.d//a Bil Wink Chevrolet/GMC

10700 Ford RoadDearborn , Michigan 48126

242 FEDERAL TRADE COMMISSION DECISIONS

Decision and Ordcr (Chevrcifet) 108 F, 'l.

ATTACHMENT B

John H. CauleyJack Cauley Chevrolet , Inc.7020 Orchard Lake RoadWest Bloomfield , Michigan 48033

Harr C. Demorest

Mark Chevrolet , Inc.33200 Michigan AvenueWayne , Michigan 48184

Joseph B. SlatkinDexter Chevrolet Co.

20811 W. Eight Mile RoadDetroit , Michigan 48219

Norman A. Merollis Merollis Chevrolet Sales & Service , Inc.21800 Gratiot AvenueEast Detroit , Michigan 48021

Richard E. GentheDick Genthe Chevrolet , Inc.15600 Eureka RoadSouthgate , Michigan 48195

Louis H. LaRicheLou LaRiche Chevrolet-Subaru , Inc.40875 Plymouth RoadPlymouth , Michigan 48170

Harry TennysonTennyson Chevrolet , Inc.32570 Plymouth RoadLivonia , Michigan 48150

Walter N. LazarWalt Lazar Chevrolet , Inc.12000 Telegraph RoadTaylor , Michigan 48180

William J. Wink , Jr.Wink Chevrolet Co.d/b/a Bill Wink Chevrolet/GMC10700 Ford RoadDearborn , Michigan 48126

ATTACHMENT C

Greater Detroit Chevrolet Dealers Association , Inc.100 Renaissance Center, Suite 3100Detroit , Michigan 48243

243 Decision and Order (Chrysler-Plymouth)

IN THE; MATTER OF

DETROIT AUTO DEALERS ASSOCIATION , INC. , ET AI,

CONSENT ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE

FEDERAL TRADE COMMISSION ACT

Docket 9189. Complaint Dec. 20, 1984-Decision, Dec. , 1986

This consent order prohibits, among other things , eleven Detroit , Mich.-area Chrysler-Plymouth associations, dealerships and dealers from conspiring to not advertise inthcclassified sections of newspapers or to not advertise vehicle prices at all.

Appearances

For the Commission: Dennis F. Johnson, Robert C. dones, RichardB. Smith, Richard A. Wolff, Timothy Suich and Morris Bloom.

For the respondents: Howard E. O'Leary, Dykema, Gossett, SpencerGoodnow Trigg, Washington , D.

DECISION AND ORDER

The Commission having heretofore issued its two count complaintcharging the respondents named in the complaint issued in this mat-ter on December 20, 1984 , with violation of Section 5 of the FederalTrade Commission Act , as amended , and the respondents having beenserved with a copy ofthat complaint , together with a notice ofcontem-plated relief; and

The Chrysler-Plymouth association, the Chrysler-Plymouth deal-ers, and the Chrysler-Plymouth individual respondents identified inAttachments A , Band C to this order, their attorneys, and counsel forthe Commission having thereafter executed an agreement containinga consent order for Count II of the complaint, an admission by theidentified respondents of all the jurisdictional facts set forth in thecomplaint, a statement that the signing of said agreement is for settle-ment purposes only and does not constitute an admission by respond-ents that the law has been violated as alleged in Count II of suchcomplaint, and waivers and other provisions as required by the Com-mission s Rules; and

The Secretary of the Commission having thereafter withdrawnCount II of the complaint from adjudication in accordance with Sec-tion 3.25(c) of its Rules; and

The Commission having considered the matter and having there-*CompJaintpreviously published at 108 F C. 193.

244 FEDERAL TRADE COMMISSION DECISIONS

Decision and Order (Chrysler-Plymouth) 108 F. T:C.

upon accepted the executed consent agreement and placed suchagreement on the public record for a period of sixty (60) days , now infurther conformity with the procedure prescribed in Section 3.25(0 ofits Rules, the Commission hereby makes the following jurisdictionalfindings and enters the following order:

1. Respondent Chrysler-Plymouth dealers identified in AttachmentA are all corporations with their principal places of business.locatedat the addresses shown in Attachment A.

2. Individual respondents identified in Attachment B are offcers ofvarious Chrysler-Plymouth dealers , as shown in Attachment B , andas such they formulate, direct and control the acts and practices ofthedealers for which they are offcers.

3. The respondent Chrysler-Plymouth association identified in At-tachment C is an incorporated trade association for Chrysler-Ply-mouth motor vehicle dealers with its principal place of businesslocated at the address shown in Attachment C.

4. The Federal Trade Commission has jurisdiction of the subjectmatter ofthis proceeding as it relates to Count II ofthe complaint andofthe respondents listed in Attachments A, Band C, and the proceed-ing is in the public interest.

ORDER

For purposes of this order, the following definitions shall apply:

1. Person means any natural person , corporation , partnership, as-sociation , joint venture , trust or any other organization or entity. butnot governmental entities.

2. Dealer means any person who receives on consignment, or pur-chases , motor vehicles for sale or lease to the public , and any directoraUicer, employee , representative or agent of any such person.

3. Other dealer means any dealer not named in this order.4. Dealer association means any trade , civic , service , or social as-

sociation whose membership is comprised primarily of dealers.5. Detroit area means the Detroit , Michigan metropolitan area

comprising Macomb County, Wayne County and Oakland County inthe State of Michigan.

6. Respondent means any corporation listed in Attachment A , anyindividual listed in Attachment B , or any association listed in Attach-ment C, and the offcers , directors , representatives , agents, divisions,subsidiaries and successors and assigns of any listed corporation orassociation.

243 Decision and Order (Chrysler-Plymouth)

It is ordered That each respondent shall cease and desist fromdirectly or indirectly, or through any corporate or other device, enter-ing into or continuing or carrying out any agreement, contract, combi-nation or conspiracy with any respondent or any other dealer ordealer association in the Detroit area which has the purpose or effectof:

A. Restricting, regulating or limiting the advertising of any motorvehicle in the classified section of any newspaper or the advertisingor publishing by any person of any price, term, or condition of sale ofany motor vehicle , except to the extent that the restriction , regulationor limitation of such advertising is necessary for the purpose of engag-ing in lawful joint advertising; or

B. Maintaining, adopting or adhering to any policy, act or practicethat restricts , regulates or limits the advertising by any person of anymotor vehicle in the classified section of any newspaper or the adver-tising or publishing by any person of any price , term, or condition ofsale of any motor vehicle , except to the extent that the restrictionregulation or limitation of such advertising is necessary for the pur-pose of engaging in lawful joint advertising.

II.

It is further ordered That each respondent shall cease and desistfrom , directly or indirectly, or through any corporate or other device,performing any of the following acts or practices , or encouraging anyperson to perform any of the following acts or practices , or enteringinto or continuing or carrying out any agreement , contract, combina-tion or conspiracy with any other person in the Detroit area to do orperform any of the following acts or practices:

A. Requesting, recommending, coercing, influencing, encouragingor persuading, or attempting to request, recommend , coerce, influ-ence, encourage or persuade , any other respondent or any other deal-er in the Detroit area to maintain , adopt or adhere to any policy, actor practice that restricts , regulates or limits the advertising by anyperson of any motor vehicle in the classified sectioD of any newspaperor the advertising or publishing by any person of any price , term , orcondition of sale of any motor vehicle, except to the extent that therestriction , regulation or limitation of such advertising is necessaryfor the purpose of engaging in lawful joint advertising; or

B. Requesting, recommending, coercing, influencing, encouragingor persuading, or attempting to request, recommend, coerce , influ-

246 FEDERAL TRADE COMMISSION DECISIONS

Decision and Ordcr1Chrysler-Pi"ymouthJ 108 F.

'!.

ence , encourage or persuade , any other respondent or any other deal-er in the Detroit area to change his advertised or published prices.

III.

It is further ordered That nothing contained in Parts I or II aboveshall be construed to prohibit: (a) any respondent association fromformulating, adopting, disseminating to its members , and enforcinglawful guidelines governing the conduct of its members with respectto advertisements that such respondent association reasonably be-lieves would be false or deceptive within the meaning of Section 5 ofthe Federal Trade Commission Act; (b) any other respondent fromparticipating in such activities as identified in Subpart (a) of an as-sociation of which such respondent is a member; or (c) any respondentfrom informing or advising anyone regarding what the respondentreasonably believes to be the requirements of any other existing or

proposed federal , state , or local law , regulation , or order , or publish-ing such interpretations thereof.

IV.

It is further ordered That the respondent association listed in At-tachment C shall cease and desist from failing to maintain for five (5)

years following the taking of any action against a person alleged to

have violated any advertising guidelines as described in Part III ofthis order, in a separate fie segregated by the name of any personagainst whom such action was taken , any document that embodies,discusses , mentions , refers, or relates to the action taken and anyallegation relating to it.

It is further ordered That the respondent association listed in At-tachment C shall:

A. Within sixty (60) days ofthe date this order becomes final , amendits by-laws to incorporate by reference this order, and provide eachmember with a copy of this order and the amended by-laws;

B. For three (3) years from the date this order becomes final , provideeach new member with a copy of this order and the amended by-lawswithin thirty (30) days of the new member s admission to the associa-tion.

243 Decision and Order (Chrysler-Plymouth)

VI.

It is further ordered That, for a period of three (3) years from thedate this order becomes final , the respondent association listed inAttachment C shall notify the Commission at least sixty (60) daysprior to the adoption of any advertising guidelines as described in

Part III of this order.

VII.

It is further ordered That each respondent shall , within . sixty (60)days after this order becomes final , and then annually thereafter fora period of three (3) years , fie with the Commission a report, inwriting, signed by the respondent , setting forth in detail the mannerand form in which it has complied with this order.

VII.

It is further ordered That each corporate respondent shall notifythe Commission at least thirty (30) days prior to any proposed changein that corporate respondent , such as dissolution , assignment or saleresulting in the emergence of a successor corporation , the creation ordissolution of subsidiaries or any other change in that corporate re-spondent that may affect compliance obligations arising out of thisorder. In the case of each natural person respondent named hereinfor a period ofthree (3) years from the date this order becomes finalsaid respondent shall promptly notify the Commission of the discon-tinuance of his present business or employment and of any new af-fiiation or employment with any dealer or dealer association. Suchnotice shall include the respondent's new business address and astatement of the nature of the business or employment in which saidrespondent is newly engaged, as well as a description of the respond-ent' s duties and responsibilities in connection with the business oremployment.

248 FEDERAL TRADE COMMISSION DECISIONS

l08F:T.Decision and Order (Chrysler-Plymouth)

ATTACHMENT A

Birmingam Chrysler-Plymouth , Inc.2100 West Maple RoadTroy, Michigan 48084

Lochmoor Chrysler-Plymouth , Inc.18165 Mack AvenueDetroit , Michigan 48224

Shelby Oil Company, Inc.d/b/a Monicatti Chrysler-Plymouth Sales40755 Van Dyke AvenueSterling Heights , Michigan 48078

Rosevile Chrysler-Plymouth , Inc.25800 Gratiot A venueRosevile , Michigan 48006

Bil Snethkamp, Inc.16430 Woodward AvenueHighland Park , Michigan 48006

Thompson Chrysler-Plymouth , Inc.16225 Fort StreetSouthgate , Michigan 48195

Westborn Chrysler-Plymouth , Inc.23300 Michigan A venueDearborn , Michigan 48124

ATTACHMENT B

Robert M. BrentWarren Chrysler-Plymouth , Inc.32711 Van Dyke AvenueWarren , Michigan 48093

James RiehlRoseville Chrysler-Plymouth , Inc.25800 Gratiot AvenueRosevilc , Michigan 48006

Wiliam SnethkampBill Snethkamp, Inc.16430 Woodward AvenueHighland Park , Michigan 48023

ATTACHMENT C

Chrysler-Plymouth Dealers Association of Greater Detroit, Inc.32711 Van DykeWarren , Michigan 48093

249 Decision and Order (Cadilac)

IN TH

DETROIT AUTO DEALERS ASSOCIATION , INC. , ET AL.

CONSENT ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THEFEDERAL TRADE COMMISSION ACT

Docket 9189. Complaint Dec. 20, 1984 Decision, Dee. , 1986

This consent order prohibits, among other things, thirteen Detroit , Mich.-area Cadillacassociations , dealerships and dealers from conspiring to not advertisejn the classi-fied sections of newspapers or to not advertise vehicle prices at alL

Appearances

For the Commission: Dennis F. Johnson, Robert C. Jones, RichardB. Smith, Richard A. Wolff; Timothy Suich and Morris Bloom.

For the respondents: Lawrence F. Raniszeski and Robert Y. WellerColombo Colombo Birmingham , Mich. and lames F. Rill, Jeffrey King and Christopher J. MacAvoy, Collier, Shannon, Rill ScottWashington , D.

DECISION AND OUDlm.

The Commission having heretofore issued its two count complaintcharging the respondents named in the complaint issued in this mat-ter on Deccmber 20 , 1984 , with violation of Section 5 of the FederalTrade Commission Act, as amended , and the respondents having beenserved with a copy of that complaint, together with a notice ofcontem-plated relief; and

The Cadillac association , the Cadilac dealers, and thc Cadillac in-dividual rcspondents identified in Attachments A , Band C to thisorder , their attorneys , and counsel for the Commission having there-after executed an agreement containing a consent order for Count IIofthe complaint , an admission by the identified respondents of all thejurisdictional facts set forth in the complaint, a statement that thcsigning of said agreement is for settlement purposes only and does notconstitute an admission by respondents that the Jaw has been violatcdas alleged in Count II of such complaint , and waivcrs and other provi-sions as required by the Commission s Rules; and

The Secretary of thc Commission having thereafter withdrawnCount II of the complaint from adjudication in accordance with Sec-tion 3.25(c) of its Rules; and

250 FEDERAL TRADE COMMISSION m;CISIONS

Decision and Order (Cadillac) 108 FT:C.

The Commission having considered the matter and having there-upon accepted the executed consent agreement and placed suchagreement on the public record for a period of sixty (60) days, now infurther conformity with the procedure prescribed in Section 3.25(f) ofits Rules, the Commission hereby makes the following jurisdictionalfindings and enters the following order:

1. Respondent Cadilac dealers identified in Attachment.A are allcorporations with their principal places of business located at the

addresses shown in Attachment A.2. Individual respondents identified in Attachment B are offcers of

various Cadillac dealers , as shown in Attachment B , and as such theyformulate, direct and control the acts and practices ofthe dealers forwhich they are offcers.

3. The respondent Cadillac association identified in Attachment Cis an incorporated trade association for Cadillac motor vehicle dealerswith its principal place of business located at the address shown inAttachment C.

4. The Federal Trade Commission has jurisdiction of the subjectmatter ofthis proceeding as it relates to Count II ofthe complaint andofthe respondents listed in Attachments A , Band C , and the proceed-ing is in the public interest.

ORDER

For purposes of this order, the following definitions shall apply:

1. Person means any natural person , corporation , partnership, as-sociation , joint venture , trust or any other organization or entity, butnot governmental entities.

2. Dealer means any person who receives on consignment, or pur-chases , motor vehicles for sale or lease to the public, and any directoroffcer , employee , representative or agent of any such person.

3. Other dealer means any dealer not named in this Order.4. Dealer association means any trade , civic , service, or social as-

sociation whose membership is comprised primarily of dealers.5. Detroit area means the Detroit , Michigan metropolitan area

comprising Macomb County, Wayne County and Oakland County inthe State of Michigan.

6. Respondent means any corporation listed in Attachment A , anyindividual listed in Attachment B , or any association listed in Attach-ment C, and the officers, directors , representatives, agents , divisionssubsidiaries, and successors and assigns of any listed corporation orassociation.

249 Decision and Order (Cadilac)

It is ordered That each respondent shall cease and desist fromdirectly or indirectly, or through any corporate or other device , enter-ing into or continuing or carrying out any agreement, contract, combi-nation or conspiracy with any respondent or any other dealer ordealer association in the Detroit area which has the purpose or effectof:

A. Restricting, regulating or limiting the advertising of any motorvehicle in the classified section of any newspaper or the aqvertisingor publishing by any person of any price , term , or condition of sale ofany motor vehicle , except to the extent that the restriction , regulationor limitation of such advertising is necessary for the purpose of engag-ing in lawful joint advertising; or

B. Maintaining, adopting or adhering to any policy, act or practicethat restricts , regulates or limits the advertising by any person of anymotor vehicle in the classified section of any newspaper or the adver-tising or publishing by any person of any price , term, or condition ofsale of any motor vehicle , except to the extent that the restrictionregulation or limitation of such advertising is necessary for the pur-pose of engaging in lawful joint advertising.

II.

It is further ordered That each respondent shall cease and desistfrom , directly or indirectly, or through any corporate or other deviceperforming any of the following acts or practices , or encouraging anyperson to perform any of the following acts or practices, or enteringinto or continuing or carrying out any agreement, contract, combina-tion or conspiracy with any other person in the Detroit area to do orperform any of the following acts or practices:

A. Requesting, recommending, coercing, influencing, ericouragingor persuading, or attempting to request, recommend , coerce, influ-ence , encourage or persuade , any other respondent or any other deal-er in the Detroit area to maintain , adopt or adhere to any policy, actor practice that restricts, regulates or limits the advertising by anyperson of any motor vehicle in the classified section of any newspaperor the advertising or publishing by any person of any price , term , orcondition of sale of any motor vehicle, except to the extent that therestriction , regulation or limitation of such advertising is necessaryfor the purpose of engaging in lawful joint advertising; or

B. Requesting, recommending, coercing, influencing, encouragingor persuading, or attempting to request , recommend , coerce, influ-

252 FEDERAL TRADE COMMISSION DECISIONS

Decision and -Order (CaoiIr,3. 108F.'!.

cnce, encourage or persuade, any other respondent or any other deal-er in the Detroit area to change his advertised or published prices.

II.

It is further ordered That nothing contained in Parts I or II aboveshall be construed to prohibit: (a) any respondent association fromformulating, adopting, disseminating to its members , and enforcinglawful guidelines governing the conduct of its members with respectto advertisements that such respondent association reasonably be-lieves would be false or deceptive within the meaning of Section 5 ofthe Federal Trade Commission Act; (b) any other respondent fromparticipating in such activities as identified in Subpart (a) of an as-sociation of which such respondent is a member; or (c) any respondentfrom informing or advising anyone regarding what the respondentreasonably believes to be the requirements of any other existing orproposed federal , state, or local law, regulation , or order, or publish-ing such interpretations thereof.

IV.

It is further ordered That the respondent association listed in At-tachment C shall cease and desist from failing to maintain for five (5)

years following the taking of any action against a person alleged to

have violated any advertising guidelines as described in Part III ofthis order, in a separate file segregated by the name of any personagainst whom such action was taken, any document that embodiesdiscusses , mentions , refers , or relates to the action taken and anyallegation relating to it.

It is further ordered That the respondent association listed in At-tachment C shall:

A. Within sixty (60) days ofthe date this order becomes final, amend

its by-laws to incorporate by reference this order, and provide eachmember with a copy of this Order and the amended by-laws;

B. For three (3) years from the date this order becomes final , provideeach new member with a copy ofthis order and the amended by-laws

within thirty (30) days of the new member s admission to the associa-tion.

249 Decision and Order (Cadillac)

VI.

It is further ordered That, for a period of three (3) years from thedate this order becomes final , the respondent association listed inAttachment C shall notify the Commission at least sixty (60) daysprior to the adoption of any advertising guidelines as described in

Part III of this order.

VII.

It is further ordered That each respondent shall , within sixty (60)days after this order becomes final , and then annually thereafter fora period of three (3) years , fie with the Commission a report , inwriting, signed by the respondent , setting forth in detail the mannerand form in which it has complied with this order.

VII.

It is further ordered That each corporate respondent shall notifythe Commission at least thirty (30) days prior to any proposed changein that corporate respondent, such as dissolution , assignment or saleresulting in the emergence of a successor corporation, the creation ordissolution of subsidiaries or any other change in that corporate re-spondent that may affect compliance obligations arising out of thisorder. In the case of each natural person respondent named hereinfor a period ofthree (3) years from the date this order becomes finalsaid respondent shall promptly notify the Commission of the discon-tinuance of his present business or employment and of any new af-filiation or employment with any dealer or dealer association. Suchnotice shall include the respondent's new business address and astatement ofthe nature of the business or employment in which saidrespondent is newly engaged, as well as a description of the respond-ent' s duties and responsibilities in connection with the business oremployment.

254 FEDERAL TRADE COMMISSION DECISIONS

108 F:T:C.Decision and Order (CadiIJacJ

ATTACHMENT A

Audette Cadilac , Inc.7100 Orchard Lake RoadWest Bloomfield , Michigan 48033

Crissman Cadilac , Jnc.131)0 North Woodward AvenueBirmingham , Michigan 48012

Charles Dalgleish Cadillac-Peugeot , Inc.6160 Cass AvenueDetroit , Michigan 48202

Dreisbach & Sons Cadilac Co.

24600 Grand River AvenueDetroit , Michigan 48219

Arnold Jerome Cadilac , Inc.675 S. SaginawPontiac , Michigan 48053

Roger Rinke Cadillac Co.8333 East Eleven Mile RoadWarren , Michigan 48093

ATTACHMENT B

Charles AudetteAudette Cadilac , Inc.7100 Orchard Lake RoadWest Bloomiield , Michigan 48033

Frank Audette

Audette Cadilac , Inc.7100 Orchard Lake RoadWest Bloomfield , Michigan 48033

Charles Dalgleish , Jr.Charles Dalgleish Cadilac-Peugeot , Inc.6160CassAvenueDetroit , Michigan 48202

Douglas DalgleishCharles Dalgleish Cadillac-Peugeot , Inc.6160 Cass AvenueDetroit , Michigan 48202

Thomas S. DreisbachDreisbach & Sons Cadillac Co.24600 Grand River AvenueDetroit , Michigan 48219

Roger J. RinkeRoger Rinke Cadilac Co.

8333 East Eleven Mile RoadWarren , Michigan 48093

ATTACHMENT C

Metro Detroit Cadillac Dealers Associat.ion , Inc.100 Renaissance Center , Suite 3100Detroit , Michigan 48243

255 Complaint

IN THE MATTER OF

COSMO COMMUNICATIONS CORPORATION

CONSENT ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THEFEDERAL TRADE COMMISSION ACT

Docket C-3203. Complaint, Dec. 1986-Deci. ion Dec. , 1986

This consent order prohibits, among other things, a Miami, Fla. manufacturer andseller of telephones from misrepresenting that its phones are capable of generatingthe tones necessary to access alternative long distance and banking services thatrequire touch-tone phones.

Appearances

For the Commission: Joel C. Winston and Steven A. Shaffer.

For the respondents: Pro se.

COMPLAINT

The Federal Trade Commission , having reason to believe thatCosmo Communications Corporation , a corporation

, ("

Cosmo" or " re-spondent") has violated the provisions of the Federal Trade Commis-sion Act, and it appearing to the Commission that a proceeding by itin respect thereof would be in the public interest, alleges:

PARAGRAPH 1. Cosmo is a Florida corporation , with its offces andprincipal place of business located at 16501 N.W. 16th Court, MiamiFlorida.

PAR. 2. Respondent manufactures , advertises, ofiers for sale , andsells consumer premises telephones and telephone equipment, includ-ing pushbutton pulse-only-generating ("touch pulse ) telephones.

PAR. 3. The acts and practices of respondent alleged in this com-

plaint have been in or affecting commerce, as "commerce" is definedin the Federal Trade Commission Act.

PAR. 4. Typical of respondent's representations for certain of itstouch pulse telephones , but not necessarily all- inclusive thereof, arethose on the package label attached hereto as Exhibits A and B. Theaforesaid representations include the following:

(a) "Works with rotary and touchtone systems." (Exhibits A and B)(b) "ALL COSMO pulse/tone switchable circuitry telephones ofier

push button rotary lines and tone dialing systems and are compatiblewith MCI, ITT , AT&T, Sprint and Network systems. " (Exhibit B)

256 FEDERAL TRADE COMMISSION DECISIONS

Complaint 108 F.'Le;.

(c) A picture of the face ofthe telephone prominently displaying itspushbutton keypad. (Exhibits A and B)

PAR. 5: Through the use of the statements and depictions referredto in Paragraph Four and other representations not specifically setforth herein , respondent has represented , directly or by implicationthat:

(a) Respondent's touch pulse telephones are capable of generatingtones to complete a calL (b) Respondent's touch pulse telephones will permit the purchaser

to use all available phone-accessed services requiring tone-generatingtelephones, such as alternative long distance service carriers andcomputerized bill paying and account transaction services.

PAR. 6. In truth and in fact

(a) Respondent's touch pulse telephones are not capable of generat-ing tones to complete a call; and

(b) Respondent' s touch pulse telephones wil not permit the pur-chaser to use all available phone-accessed services requiring tone-

generating telephones, such as alternative long distance service carri-ers and computerized bill paying and account transaction services.

Therefore, respondent's representations as set forth in ParagraphFive were and are false and misleading.

PAR. 7. The acts and practices of respondent as alleged in thiscomplaint constitute unfair or deceptive acts or practices in or affect-ing commerce in violation of Section 5(a) of the Federal Trade Com-mission Act.

Chairman Oliver and Commissioner Azcuenaga were recorded asvoting in the negative.

255

COSMO COMMUNICATIONS CORP. 257

C2ffpli:tint

EXHIBIT A

000281 OWSOJ

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. No ad,IIona) ""'''v8 Ehm.",!os '''''..n",,,..

oIaccod. Make ana

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.. CIU."XloosO'ou!

.700FOO'".ng

."'Cvance' s"ho ""'""Cu"r,

8 Re-o,alO"""",nSl"M'".call last n"",,a'al'-

."""'k5..,m "'I"' 3nd'ounTo"" .ystems

. 1S!anl ",'oN ODatloneasy

.W"' "a5ta"""" out hM m(J '''lu.e- -

. ,o"JTomaTIc ",ck I"e""n," na"""llet us..

258 FEDERAL TRADE COMMISSION DECISIONS

Complaint IOS F.

EXHIBIT B

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255 Complaint

260 FEDBHAL THADE COMMISSIO:- DECISIONS

Decision and Order 108 F.

DECISION AND ORDER

The Federal Trade Commission having initiated an investigation ofcertain acts and practices of the respondent named in the captionhereof, and the respondent having been furnished thereafter with acopy ofa draft of complaint which the Bureau of Consumer Protectionproposed to present to the Commission for its consideration andwhich , if issued by the Commission , would charge the respondent withviolation of the Federal Trade Commission Act; and

The respondent and counsel for the Commission having thereafterexecuted an agreement containing a consent order , an admission bythe respondent of all jurisdictional facts set forth in the aforesaiddraft of complaint, a statement that the signing of said agreement isfor settlement purposes only and does not constitute an admission bythe respondent that the law has been violated as alleged in suchcomplaint , and waivers and other provisions as required by the CailMmission s Rules; and

The Commission having thereafter considered the matter and hav-ing determined that it had reason to believe that the respondent hasviolated the said Act, and that complaint should issue stating itscharges in that respect , and having thereupon accepted the executedconsent agreement and placed such agreement on the public recordfor a period of sixty (60) days , now in further conformity with theprocedure prescribed in Section 2. 34 of its Rules , the Commissionhereby issues its complaint , makes the following jurisdictional find-ings and en ters the following order:

1. Respondent Cosmo Communications Corporation is a corporationorganized , existing and doing business under and by virtue of the lawsof the State of Florida , with its offce and principal place of businesslocated at 16501 N.W. 16th Court in the City of Miami , State ofFlorida.

2. The Federal Trade Commission has jurisdiction of the subjectmatter of this proceeding and of the respondent , and the proceedingis in the public interest.

ORDER

It is ordered That respondent Cosmo Communications Corporationa corporation; its successors and assigns; and its offcers representatives, agents and employees, directly or through any corporationsubsidiary, division or other device , in connection with the advertis-

255 Decision and Order

iug, offering for sale, sale or distribution- or-any consumer prel!itelephone or other telephone communication device in or affectingcommerce, as "commerce" is defined in the Federal Trade Commis-sion Act, do forthwith cease and desist from:

A. Representing in any manner, directly or by implication , that anysuch device is capable of generating the tones necessary to completea call, unless such is the case.

B. Misrepresenting in any manner , directly or by implication , thecompatability of any such device with any tone-accessed telephone

service , including, but not limited to , alternative long distance servicecarriers and phone-accessed computer services.

C. Failing to disclose , clearly and prominently, on the package labelfor each such device in the custody or control of respondent (includingexisting inventory) that operates by pushbuttons but does not gener-ate tones:

Pulse Telephone: Operates by pulse dialing like a rotary telephone.Will not produce tones.

provided, however that after seven (7) years from the date of service

of this order the above disclosure may be replaced by the disclosurePulse Telephone ; and provided further, however that this order

shall not be construed to relieve respondent, its successors and assignsfrom having to comply with any provision of any federal, state , orlocal law rule , regulation , or order requiring a disclosure differentfrom that specified by this order , and , in the event any such law , ruleregulation , or order requires an equally or more comprehensive dis-closure concerning the pulse operating system and the inabilty ofthe

device to produce tones, that disclosure may be used in place of thedisclosure specified by this order.

II.

It is further ordered That respondent shall notify the Commissionat least thirty (30) days prior to any proposed change in the corpora-tion such as a dissolution , assignment or sale resulting in the emer-gence of a successor corporation, the creation or dissolution of

subsidiaries , or any other change in the corporation which may affectcompliance obligations under this order.

III.

It is further ordered That respondent shall , within sixty (60) daysafter service of this order upon it and at such other times as the

262 FEDERAL TRADE COMMISSION DECISIONS

Decision and Order 108 F.

Commission may require, file with the Commission a report , in writ-ing, setting forth in detail the manner and form in which it hascomplied with this order.

Chairman Oliver and Commissioner Azcuenaga were recorded asvoting in the negative.