TRADE RESTRAINTS - FEDERAL TRADE COMMISSION - FALSE REPRESENTATION AS UNFAIR METHOD OF COMPETITION

An order of the Federal Trade Commission issued against the defendant publisher requiring it to cease and desist from representing to prospective purchasers, contrary to fact, (1) that the purchaser was a selected person in the community to whom special offers were being made, and (2) that an encyclopedia was being given to him free, a charge being made only for an annual supplement. The Circuit Court of Appeals for the Second Circuit affirmed the first clause but dismissed the second. Held, that the second clause should be reinstated. Federal Trade Commission v. Standard Education Society, 302 U.S. 112, 58 S. Ct.

113 (1937).