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NCJ Number: 50397 Add to Shopping cart Find in a Library
Title: UNITED STATES OF AMERICA BEFORE FEDERAL TRADE COMMISSION - FINAL ORDER - IN THE MATTER OF GROLIER, INC, DOCKET NO 8879
Author(s): ANON
Corporate Author: US Federal Trade Commission
United States of America
Date Published: 1976
Page Count: 211
Sponsoring Agency: National Institute of Justice/
Rockville, MD 20849
US Federal Trade Commission
Washington, DC 20580
Sale Source: National Institute of Justice/
NCJRS paper reproduction
Box 6000, Dept F
Rockville, MD 20849
United States of America
Document: PDF
Language: English
Country: United States of America
Annotation: THIS 210-PAGE FINAL ORDER PROHIBITS AN ENCYCLOPEDIA AND BOOK PUBLISHER FROM USING MISREPRESENTATION TO RECRUIT DOOR-TO-DOOR SALESPERSONS AND MANDATES CESSATION OF A VARIETY OF DECEPTIVE SALES AND PROMOTION PRACTICES.
Abstract: THE ORDER, ISSUED OCTOBER 12, 1976, AFFECTS GROLIER, INC. AND EIGHT SUBSIDIARY CORPORATIONS. IT PROHIBITS THE RECRUITMENT OF SALESPERSONS BY PROMISING THEM JOBS IN ADVERTISING, PUBLIC RELATIONS, OR MANAGEMENT TRAINING AND ALSO FORBIDS MISREPRESENTATION OF THE AMOUNT OF INCOME A SALESPERSON CAN REASONABLY EXPECT TO MAKE. IT ALSO FORBIDS THE OFFERING OF SUPPOSEDLY 'FREE' MATERIALS FOR ADVERTISING OR PROMOTION PRACTICES WHEN THE FINE PRINT IN THE CONTRACT INCLUDES THE PURCHASE OF ADDITIONAL ITEMS. A NUMBER OF FRAUDULENT AND HARASSING CREDIT TACTICS ARE FORBIDDEN AS ARE PROMOTIONS, SUCH AS DRAWINGS AND SWEEPSTAKES, WHICH DO NOT INFORM THE PARTICIPANT THAT A SALESMAN MAY CALL. THE COMMISSION OPINION IS HEAVILY FOOTNOTED WITH REFERENCES TO TESTIMONY TRANSCRIPTS, COMMISSION EXHIBITS, THE FINDINGS OF THE INITIAL ADMINISTRATIVE LAW JUDGE, AND RELATED JUDICIAL AND REGULATORY COMMISSION DECISIONS. THE FIRST PART OF THE ORDER SUMMARIZES GROLIER'S FRAUDULENT SALES, RECRUITMENT, AND CREDIT COLLECTION TACTICS. THE SECOND PART SPELLS OUT THE TERMS OF THE CEASE AND DESIST MANDATE. A NOTICE TO EMPLOYEES AND PROSPECTIVE EMPLOYEES REQUIRED BY THE COMMISSION IS APPENDED. (GLR)
Index Term(s): Consumer fraud; Consumer protection; Federal Trade Commission (FTC)
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