NCJ Number
50397
Date Published
1976
Length
211 pages
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)