Evening star., 1925-02-15

Despite the fact that the Federal
Trade Commission Is daily engaged
In efforts to prevent unfair compe-
tition In business, and sincerely de-
sires to help business men as much
as possible, 1t is probably one of the
most unpopular bureaus of the Fed
eral Government. Possibly this is
due in part to the wording of the
law. which is written negatively,
setting forth what may not be done,
instead OF what may be. 1t seems
a natural reaction Of members Of the
human race to object to being told
they may not do certain things.
Woodrow Wilson, under whose ad
ministration this commission was
formed, originally had the idea of
making it q sort Of get-together or
ganization, where business men OF
the Nation might come to confer with
Government officials as to business
ethics. The law was written, how
ever, in such q manner as to defeat
that plan.
The Supreme Court divides unfair
methods OF competition into two
classes: First, methods opposed to
good morals because characterized by
deception, bad faith, fraud, or oppres-
sion; and, second, methods regarded
as against public policy because OF
dangerous tendency unduly to hinder
competition or create monopoly. The
first class Is unlawful in itself, while
the second class may or may not be
unlawful, depending upon the circum-
stances and conditions.
AS an aid to business men in de-
termininE what is considered unlaw-
ful by the commission, 1t has In Its
annual report for 1924 printed list
of methods Of competition which 1t
condemns. Some Of the outstanding
are as follows:
MisbrandinE of fabrics and other
commodities, respecting the materials
or INGREDIENTS of which they are com :
posed, their quality, origin or source.
The use of false or misleading ad-
| yertisements.
Giving away OF gooos In Arse
Quantities to hamper and embarrass
.r,I, councillors, and selling goods
at cost to accomplish the same pur-
pose.
cu,ated to create the impression that
a dealer is a manufacture, seillns
directly to the consumer, with cor
responding savings.
Discriminating in price.
Securing business by advertising
| free trial. offer proposition, wneh a.
Ia matter of fact only a "money-bacK
lapportunity is offered the prospective
customer, etc.
when Imitation IL Unfair.
Passing off of products, facilities or
business of one manufacturer or deal
er for those of another by Imitation
of product, dress OF gooos, or py
stimulation of appropriation OF ad-
yertising or of corporate or trade
nf
passing off by a manufacturer OF an
inferior product for a superior prod
net heretofore made, advertised and
sold by him. -
The use of monopolistic concerns OF
concealed subsidiaries for carrying on
their business, such concerns being
held out as not connected with the
controlling company
An example of misbranding a prod
net is given with regard to certain
manufacturer of stockings and un-
derwear. The articles made by this
manufa cturer bore such labels as
Natural Merino." Gray Wool" ma :
tural wool" or Australian Wool
which would naturally lead to the
inference by the public that these
| were made of all wool. AS 4 matter
Of fact they contained about 80 per
cent cotton, and 10 per cent wool.
The commission maintained that since
these labels were misleading that
they must be changed to, read wool
and cotton" "worsted wool and cot
ton" etc. The company held that
they were not misleading their Gus
3tomers-the retailers-and that there
fore they were within their legal
rights. The courts. however, upheld
the decision of the commission that
the public should. also be protected.
! The manufacturer Of a we'll known
depilatory made rather an amusing
defense when accused Of false adver-
tising. His advertisement made the
statement that this depilatory would
remove hafr SO that it would not
grow again. A complaint was brought
| before the commission to the effect
that the hair did grow again and ac-
cordingly the manufacturer was ask
ed for an explanation. His reply was
! while new hair may grow in, tech
| nically our advertisements are cor
rect, since certainly the hair which is
removed can not again grow"
tho growtA in popularity Of the