Washington Law Review




Respondent, a national retailer of general merchandise, inserted in guarantee certificates accompanying some of its products conditions and limitations not disclosed in guarantees contained in newspaper advertisements. The Federal Trade Commission charged respondent with a violation of section 5 of the Federal Trade Commission Act for making false and misleading representations. Respondent asserted that whenever a customer made a claim guarantees were honored as advertised without regard to conditions and limitations contained in the certificates. On appeal to the Commission, the hearing examiner's initial decision dismissing the complaint was reversed, and a final order to cease and desist was issued. Held: An uncommunicated policy of honoring advertised guarantees without regard to limitations in guarantee certificates accompanying the merchandise does not eliminate the capacity to deceive inherent in the advertisements. Montgomery Ward & Co., Trade Reg. Rep. (1966 Trade Cas.) ¶ 17635 (Aug. 4, 1966).

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