Deer v. Federal Trade Commission

Citation152 F.2d 65
Decision Date05 December 1945
Docket NumberNo. 8.,8.
PartiesDEER et al. v. FEDERAL TRADE COMMISSION.
CourtUnited States Courts of Appeals. United States Court of Appeals (2nd Circuit)

Leon Himmelfarbe, of New York City, for petitioners.

W. T. Kelley, Chief Counsel, Joseph J. Smith, Jr., Asst. Chief Counsel, and Donovan Divet, Sp. Atty., all of Washington, D. C., for respondent.

Before SWAN, CHASE, and CLARK, Circuit Judges.

PER CURIAM.

The petitioners are engaged in the business of selling in interstate commerce various kinds of merchandise, chiefly household articles, and upon request they have supplied some of their customers with a so-called "club plan" or with material for the game of "Bingo" for use by such customers in reselling the goods purchased from the petitioners. The Commission found that the club plan and the bingo paraphernalia were gambling devices, as they clearly were, and that the sale of merchandise by the aid of such devices constituted unfair methods of competition in commerce, as they clearly do, within the prohibition of section 5 of the Federal Trade Commission Act, 15 U.S.C.A. § 45. Federal Trade Comm. v. R. F. Keppel & Bro., 291 U.S. 304, 54 S.Ct. 423, 78 L.Ed. 814; Cinader v. Federal Trade Commission, 2 Cir., 141 F.2d 1022; Modernistic Candies, Inc. v. Federal Trade Commission, 7 Cir., 145 F.2d 454. As the case last cited indicates it was not necessary to prove that the petitioners actually participated in the operation of the bingo game or the club plan conducted by their customers; it is enough that they aided and abetted in such methods of resale. Their advertising justifies an inference that they did. Nor was the Commission obliged to prove injury to the public or loss of business to competitors; when it finds, as it reasonably did here, that unfair practices have been employed by a respondent, it may infer that trade will be diverted from competitors who do not employ such practices. Federal Trade Commission v. Raladam Co., 316 U.S. 149, 152, 62 S.Ct. 966, 86 L. Ed. 1336. Finally, the fact that use of the "club plan" was abandoned more than a year before the Commission issued its complaint is not a bar to an order to cease and desist, for the Commission has broad discretion to determine whether such an order is needed to prevent resumption of the practice. Gelb v. Federal Trade Commission, 2 Cir., 144 F.2d 580, 581; Bunte Brothers v. Federal Trade Commission, 104 F.2d 996, 997; cf. Federal Trade Commission v. Civil Service T. Bureau, 6 Cir., 79 F.2d 113, 115. We cannot...

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9 cases
  • In re Trilegiant Corp.
    • United States
    • U.S. District Court — District of Connecticut
    • March 28, 2014
    ...446 (3d Cir.1951) (aiding and abetting liability for assisting in the commission of unfair trade practices); Deer v. Fed. Trade Comm'n, 152 F.2d 65, 66 (2d Cir.1945) (a party need not participate in the unfair conduct, it is sufficient if he aided and abetted such actions); see also The Ant......
  • In re Trilegiant Corp.
    • United States
    • U.S. District Court — District of Connecticut
    • March 28, 2014
    ...444, 446 (3d Cir.1951) (aiding and abetting liability for assisting in the commission of unfair trade practices); Deer v. Fed. Trade Comm'n, 152 F.2d 65, 66 (2d Cir.1945) (a party need not participate in the unfair conduct, it is sufficient if he aided and abetted such actions); see also Th......
  • Marco Sales Company v. FTC
    • United States
    • U.S. Court of Appeals — Second Circuit
    • December 16, 1971
    ...an unfair practice is established the diversion of trade from competitors, who do not employ such practices, is inferred. Deer v. FTC, 152 F.2d 65, 66 (2d Cir. 1945). The argument that public morals have changed, that public attitudes toward gambling particularly have radically altered with......
  • Alberty v. Federal Trade Commission
    • United States
    • U.S. Court of Appeals — District of Columbia Circuit
    • March 20, 1950
    ...L.Ed. 603; Charles of the Ritz Distributors Corp. v. Federal Trade Commission, 2 Cir., 1944, 143 F.2d 676, 680; Deer v. Federal Trade Commission, 2 Cir., 1945, 152 F.2d 65, 67; cf. Irving Weis & Co. v. Brannan, 2 Cir., 1948, 171 F.2d 232, 235; by the Third Circuit in Siegel Co. v. Federal T......
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