Opinion ID: 242260
Heading Depth: 2
Heading Rank: 7

Heading: Representation as to Potential Earnings of Those Completing the Course.

Text: 112 The Commission found that the representation that $25 per week for spare time work and from $50 to $200 per week could be reasonably expected was not true. The circular letter referred to tells salesmen 113 'You pitch to housewives mainly; you can see them all day long; they are now earning exactly nothing. They need only to be convinced that they can make as little as $15.00 a week in their spare time at home and they will buy.' 114 The very alluring use of the words 'as little as' is significant. In one of the advertisements the salesmen are advised: 115 'Your can show them how to earn up to $5.00 an hour continuously at home, with invisible Nu-Weaving.' 116 A circular addressed to the salesmen entitled 'Questionnaire', is very revealing. It contained the following preamble: 117 'This is self-explanatory. 118 'It was composed through a compilation of all the usual questions which arose in the prospect's mind. Read them through several times and 'fix' the answers in your mind. Thus, you will have them all at your finger tips. Already, unhesitant answers to any questions generates a prospect's confidence in the salesmen. With this knowledge, your first 'pitch' should be as good as any that follows.' (Emphasis added.) 119 The questions themselves bear the following heading: 120 We Know You Must Have Loads of Questions to Ask Us but We Have Been Asked So Many Questions About Nu-Weaving We Think We Can Anticipate Most of Yours-- So Read These Questions and Answers. 121 The first six questions are a complete answer to the attempt of the petitioner to thrust upon his salesmen the sole responsibility for the representations with which we are dealing. 122 Here we have instructions which use the words 'invisible repair', 'invisible weaving' and 'reweaving', indiscriminately and almost interchangeably, and statements urging salesmen to represent that it is 'easy' to earn $25 a week in 'spare time' and that many 'full-time' re-weavers 'earn as high as $200 per week.'Because they disclose so thoroughly the manner in which the petitioner was 'coaching' his salesmen, the questions are reproduced in their entirety: 123 'Q. 1 What is Nu-Weaving? Ans. Nu-Weaving is a new method of invisible repair to damaged cloth. Through the use of specially designed hand instruments and a newly created method of doing invisible weaving, the time required for repairs on most jobs is about 1/3 of the time needed heretofore by the old methods. 124 'Q. 2 What does all this mean to me? Ans. Because of this great saving in time, operators are able to do this work at about 1/3 of the usual price and still earn as much per hour as operators using the old method. 125 'Q. 3 How much money can I expect to earn? Ans. If you work only spare time it is easy to earn $25.00 a week. Many full time reweavers earn as high as $200 a week. 126 'Q. 4 In just what way does this make Nu-Weaving an attractive trade? Ans. Because, while only a small 5% of the public could afford the old, expensive methods, Now-- Through Fast Nu-Weaving, this type of repair fits everyone's pocketbook; thus, a much greater field for this work is open and a much greater need exists for competent Nu-Weavers. 127 'Q. 5 Why haven't there been more invisible weavers in the past? Ans. Due to the long time necessary to teach the old way of doing invisible weaving, those 'in the know' have usually been reluctant to impart their knowledge to more than a limited number of apprentices. 128 'Q. 6 How long does it take to become competent? Ans. Many students trained have completed their course in a period of two to three weeks.' (Emphasis added.) 129 In another of the advertisements of the course the statement is made: 130 'Reweavers earn as high as $100 per week.' 131 There is testimony in the record that it was not possible to earn that amount, unless the person devoted all her time and had established a custom that would bring in work enough to produce such earnings. It certainly could not be obtained through cleaners and dyers who, in the same questionnaire, were declared to be the main source of custom and profit for the graduates of the course. Question 15 and the Answer to it read: 132 'What assistance do you give graduates in starting their own business? Ans. The main source of Invisible Reweaving are cleaners, upholsterers and insurance companies. If you will submit a list of not more than 20 such business concerns, we will contact them with advertising material and attempt to arrange for you to leave samples of your work for display. You will find them eager for the most part to give you their full co-operation. The lower price schedule; 3 days delivery and excellence of work is sufficient to encourage them to become Nu-Weaving agencies.' 133 Operators of commercial weaving establishments testified that employees skilled in all types of reweaving could not earn the amounts which were held out as easy possibilities to the graduates of this course in a very limited type of weaving. These misrepresentations were of the type which courts have condemned repeatedly. 34 The Commission was fully justified in ordering the petitioner to desist from representing that the potential earnings of those purchasing and completing his course and engaging in re-weaving are greater than they are in fact. Of a similar Order this Court has stated: 134 'It does not preclude all future representations by petitioners of the earning experience of their graduates. It does preclude representations that petitioners' graduates earn wages in excess of the average net earnings which they actually receive. In short, the order says no more than that future representations by petitioners must have a basis of fact. The order is clear and definite and within the discretion delegated by Congress to the Commission to prescribe appropriate remedies.' 35 135