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FTC v. Standard Education Society, 302 U.S. 112 (1937)

Federal Trade Commission v. Standard Education Society

No. 14

Argued October 18, 1937

Decided November 8, 1937

302 U.S. 112


1. The fact that a false statement may be obviously false to those who are trained and experienced does not change its character, nor take away its power to deceive others less experienced. P. 302 U. S. 116.

2. There is no duty resting upon a citizen to suspect the honesty of those with whom he transacts business. Laws are made to protect the trusting as well as the suspicious. Id.

3. Findings of the Federal Trade Commission are conclusive if supported by evidence. P. 302 U. S. 117.

4. As part of a scheme for selling an encyclopedia and a loose-leaf extension service, respondents falsely represented to prospective purchasers that the books would be given to them free and that they would pay only for the extension service at a reduced price, whereas, in truth, the price charged them was the same as the regular standard price for both the books and the extension service. Held violative of § 5 of the Federal Trade Commission Act. Pp. 302 U. S. 115, 302 U. S. 117.

5. An order of the Federal Trade Commission forbade, in the advertising of a revised encyclopedia, the use of the names of persons, as contributors or editors, who had not consented to such use and who had neither actually contributed to the publications nor helped to edit them. Held properly inclusive of contributors to an earlier work no part of whose contributions had been carried into the revision. P. 302 U. S. 117.

6. The Commission's findings, supported by evidence, sustain its order forbidding, in advertisements of a publication, the use of testimonials attributed to persons who did not give them. P. 302 U. S. 118.

7. A cease and desist order of the Federal Trade Commission directed to a corporation binds those who are in control of its affairs, and may properly include them as individuals when there is reason to believe that, if directed to the corporation alone, they will endeavor to evade it. P. 302 U. S. 119.

86 F.2d 692 reversed in part.

Page 302 U. S. 113

Certiorari, 301 U.S. 674, to review the judgment of the court below which modified in part, and reversed in part, an order of the Federal Trade Commission.

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