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Federal Trade Commission v. Mary Carter Paint Co.
Citations: 15 L. Ed. 2d 128; 86 S. Ct. 219; 382 U.S. 46; 1965 U.S. LEXIS 2405; 1965 Trade Cas. (CCH) 71,594Docket: 15
Court: Supreme Court of the United States; November 8, 1965; Federal Supreme Court; Federal Appellate Court
The Federal Trade Commission (FTC) ordered Mary Carter Paint Company to cease deceptive advertising practices in violation of the Federal Trade Commission Act. The company advertised that purchasers would receive a "free" can of paint with the purchase of another, but the FTC determined this misrepresented the pricing structure. The court found that the price advertised for one can was not reflective of its usual retail price, thereby making the second can not truly "free." The Commission's guidelines allow for advertising an item as "free" if the terms are clearly stated; however, Mary Carter failed to meet this standard as it misallocated the total cost between two cans under the guise of promotional pricing. The court emphasized that the FTC is better positioned to assess deceptive practices, and there was substantial evidence supporting the Commission's findings. The appellate court's decision to set aside the FTC's order was reversed, and the case was remanded for clarification of the FTC's order. Justice Stewart did not participate in the decision.