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TO AUTHORIZE AND DIRECT THE FEDERAL TRADE COMMISSION TO
CONDUCT A COMPREHENSIVE INVESTIGATION OF UNFAIR METHODS
OF COMPETITION AND UNFAIR OR DECEPTIVE ACTS OR PRACTICES
IN THE HOME IMPROVEMENT INDUSTRY, TO EXPAND ITS ENFORCE-
MENT ACTIVITIES IN THIS AREA, AND FOR OTHER PURPOSES

S. 3065

TO AMEND THE FEDERAL TRADE COMMISSION ACT, AS AMENDED.
BY PROVIDING FOR TEMPORARY INJUNCTIONS OR RESTRAINING
ORDERS FOR CERTAIN VIOLATIONS OF THAT ACT

S. 3066

TO AMEND THE FEDERAL TRADE COMMISSION ACT, AS AMENDED,
BY EXPANDING THE JURISDICTION OF THE FEDERAL TRADE COM-
MISSION, BY PROVIDING FOR TEMPORARY RESTRAINING ORDERS
FOR CERTAIN VIOLATIONS OF THAT ACT, AND BY MAKING ANY
VIOLATION OF THAT ACT WITH INTENT TO DEFRAUD OR MISLEAD
A MISDEMEANOR

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Re Door-to-Door Sales Act, S. 1599.

Hon. WARREN G. MAGNUSON,

Senate Office Building,

Washington, D.C.

U.S. ALUMINUM CORP., Franklin Park, Ill., April 9, 1968.

MY DEAR SIR: We strongly urge that the Senate exclude the Home Improvement Industry from the above proposed bill or any similar legislation for the following reasons:

(1) To rank the Home Improvement and Remodeling Business on the same level with kitchenware, encyclopedias, magazine, books and household equipment is unjust and unrealistic. The Home Improvement Industry involves personal consultations, which by necessity should take place in the home, while the other businesses could be conducted anywhere by virtue of their stock and standard goods.

(2) We also believe that this act, or similar bills should not be considered until an exhaustive proposed investigation of the Home Improvement Industry, S.J. Res. 130 is completed, so that all the facts are examined to determine the feasibility and the practicability of the act.

This is submitted with all due respect and with a request for your kind consideration. Hoping that by your acting on this an injustice will be avoided. Faithfully,

HARRY J. NASSAN, Chairman of the Board.

U.S. SENATE,

Washington, D.C., March 13, 1968.

Hon WARREN G. MAGNUSON,
U.S. Senate,

Washington, D.C.

DEAR MAGGIE: Enclosed are several letters and telegrams from sales individuals in the state of Utah voicing opposition to S. 1599. Would you kindly consider their views and make their correspondence part of your record.

Sincerely,

Enclosures.

Senator WALLACE F. BENNETT,
U.S. Senate,

New Senate Office Building,
Washington, D.C.

WALLACE F. BENNETT.

SALT LAKE CITY, UTAH, March 22, 1968.

DEAR MR. BENNETT: I am very disturbed over U.S. Senate Bill 1599 or the "Door to Door Sales Act."

I feel that this is a very unjust act and that it takes away my rights and privileges as a United States citizen. This is destroying a basic American Freedom and discriminates against the legitimate independent business people.

There are many men and women who are of the highest integrity earning a living for their families thru direct selling and are giving a real service to their customers. We are looking to you as our Senator from Utah to protect us from this injustice.

Sincerely,

Mrs. ART NENOW.

SALT LAKE CITY, UTAH, March 13, 1968.

DEAR SENATOR BENNETT: In regards to the Senate Bill 1599, introduced by Senator Warren Magnuson from Washington-I wish to state my objection to this bill. I feel that it singles out direct sales for special and discriminatory federal and legislative treatment. It is my belief that existing laws and their enforcement by federal, state and local agencies are entirely adequate to solve any problems that exist.

I object because the Bill would single out direct selling and make it appear there is a need to regulate direct selling, but that there is no need to regulate

other sales methods. I believe this to be discriminatory, unjust, and entirely unwarranted.

Sincerely,

GLENNA SMITH.

P.S.-We need your support in protecting our Free Enterprise System.

GREAT LAKE, ILL., March 14, 1968. DEAR SENATOR BENNETT: Recently it has been brought to my attention that there is a bill before the Senate that would affect direct selling. This is bill No. 1599.

I feel this bill is entirely unfair to those of us working in this line. My husband is in the service, and as you may know, military pay is not adequate to raise and properly care for a family. For this reason many military wives have taken up selling Avon, Figurrettes, Le Voy's, Stanley and others, to help meet their families needs.

If this bill were to be passed, it would severely impair our ability to make a living in the kind of jobs that leave us free to raise our own children and take care of our homes without taking an outside job. It is unjust for us to be regulated and others in the selling line not to be.

I would appreciate your attention on this matter.
Sincerely,

Mrs. JAMES H. KROLL,

DEAR SENATOR BENNETT: I object to United States Senate Bill 1599. I feel this is discriminatory unjust. I hope you will do all you can so this Bill will not be passed.

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I am not door-to-door seller but voice my opposition to door to door bill 1599. I service Spencer customers in my home 39 years taking orders with deposit for future delivery to earn my living. These orders are for back braces, abdominal supports, prescribed by physicians.

Hon. WALLACE BENNETT,

U.S. Senate, Washington, D.C.

Miss NELLIE VILLERS.

ORTHO-VENT SHOE CO., INC.,
Los Angeles, Calif., March 4, 1968.

DEAR SENATOR BENNETT: I am writing you this letter in opposition to the Federal Door to Door Sales Act, Senate Bill 1599 which you have undoubtedly heard about.

It was three and one half years ago when I first made your acquaintance at our home here in Ogden. We had a few of our friends and neighbors in and you were good enough to come and share your thoughts and views with us. I remember I tried to talk you into tasting some of the goodies that we served but all I could talk you into was having some of the mixed nuts. I want you to know that I do appreciate and honor the brief acquaintance that we made at this time. I have always appreciated your representation of me in Washington.

I am writing you to solicit your help and guidance concerning Senate Bill 1599. I represent a direct sales shoe company in eight states of the west. I have 6,031 sales people working for me either full or part time. Seven hundred and six of these sales people are in Utah. We oppose this bill even though our company is not directly affected by the term of the proposed legislation. It is our feeling that this bill is discriminatory and has the effect of singling out one method of product distribution for punitive and discriminatory legislation. This bill, in effect, condemns an entire industry, The Direct Selling Industry and it is this to which we object.

This is the first time I have ever written to you or anyone else in Washington but then again, this is the first time I have had anything strike so directly at me and my way of making a living. I have been in direct sales for most of the eighteen years since graduation from Utah State University.

I want to thank you for your time, consideration and very fine representation. Sincerely yours,

GURNEL M. LARSEN,

Regional Manager.

ELLGREN SALES Co.,

Hon. WALLACE F. BENNETT,

Salt Lake City, Utah, February 29, 1968.

New Senate Office Building, Washington, D.C.

DEAR SENATOR BENNETT: I respectfully enlist your support in opposing the following proposed legislation: Senate Bill 1599-Door To Door Sales Act (Comparable House Bill HR 10904).

I am a permanent resident of the State of Utah. I represent Regal Ware, Inc of Kewaskum, Wisconsin and Knero Corporation of Fredonia, Wisconsin. Both of these firms manufacture many items used in door-to-door sales. A substantial portion of the sales in my territory are to direct sales companies; therefore, my income would be seriously affected by passage of this bill. In addition it would seriously affect my customers and their employees who also reside in our state. These include such reputable companies as:

New Century Enterprises
W. B. Enterprises

Permanent Sales

The Flavorite Company

Modern Home Makers Guild
Modern Living

American Homes Company

My reasons for vigorously opposing this bill are as follows:

1. There are over 2,000,000 hard-working, honest, ethical direct sales people who are respected members of their communities that would be adversely affected. The small businesses of this nation have been the backbone of the nations business. There are many of these that are in the direct sales business. They do an annual multibillion dollar business ($7.000,000,000.00 in 1957). 2. The glib fly-by-night, unethical operators actually comprise a very small minority of the direct sellers and it is very unlikely that the bill would affect their activities since they are already acting contrary to the existing legisla tion and the ethical practices established by the industry's association (such as the National Association of Direct Selling Companies and National House. to-House Installment Companies).

3. Direct selling is a unique and important segment of modern marketing methods. It is the very root of modern free enterprise. Historically, it was the tradesman who traveled from village to village with a horse and wagon to introduce and sell the products of mills and factories. He was among the first entrepreneurs in the U.S.A. It is through the personal contact with the housewife that many new products are introduced and popularized to contribute to the American standard of living. Through this contact, too, the salesman learns what the housewife needs and wants-and this leads to the development of new and improved products. This relationship obviously is not possible in retail, supermarket, or any other type of selling.

4. Safeguards against unethical direct sellers already exist. These include local and state ordinances, the rules of trade associations, manufacturers' franchise conditions and product standards and warranties, the National Better Business Bureau and local better business bureaus. Most manufacturers of direct sales products are members of trade associations and better business bureaus.

5. This bill will result in the annual loss of multibillions of dollars worth of business to manufacturers located in communities throughout the United States. These are well-known companies who manufacture finest quality brushes, appliances, cookware, blankets, vacuum cleaners, sewing machines, washers, dryers, books, magazines, encyclopedias, refrigerator, chinaware, cutlery, cosmetics, clothing and countless other items sold by direct sellers. It is my honest conviction that this proposed legislation is unnecessary; it is aimed at the very small minority at the cost of the vast majority and sets a dangerous precedent in restraint of trade that will adversely affect the right of men to engage in free enterprise as practiced by our forefathers and guaranteed by the constitution.

I request your fullest support in opposing this proposed legislation and assure you that your efforts will be appreciated by my family as well as the families of my customers and their employees.

Sincerely,

RAYMOND W. ELGGREN.

P.S.-Sir, I do appreciate your response to my concern in this Bill. Hugh Pennrock is lining me up to help in the campaign.

SANDY, UTAH, March 22, 1968. DEAR SENATOR BENNETT: I understand that there is a bill-Senate Bill 1599— pending before the Senate Commerce Committee that I definitely feel should not be passed!

I feel this is unfair discrimination and the loss of another freedom if this bill were to pass.

Many items I have in my home are some of the best quality merchandise we have and they were purchased in our home from door-to-door salesmen and saleswomen, who are the only people nowadays who will take the time to explain the product to the customer. Because of the salesman's product knowledge and personal interest, a customer receives much better service.

This kind of service is not rendered in a store. All they do is display, their products, you carry it to the counter and pay for it and no explanation is ever offered or given.

I feel this bill should be defeated because it is taking another constitutional right away from the people-the right to choose. Salesmanship is one thing that makes this country great. This "Door-to-Door Sales Act" will discourage the salesman. There are now sufficient safeguards to protect people from shysters. I urge you to defeat this bill.

Sincerely,

Hon. WARREN G. MAGNUSON,

Chairman, Senate Commerce Committee,
New Senate Office Building.

SHARON M. FARNSWORTH.
U.S. SENATE,

COMMITTEE ON APPROPRIATIONS,
Washington, D.C., March 11, 1968.

DEAR SENATOR MAGNUSON: Enclosed herewith are letters from Mrs. Eva L. Elrod, Lakeland, Florida and Mr. James D. MacGregor, Branford, Florida, all pertaining to hearings you are continuing on March 19 regarding S. 1599.

I would appreciate your consideration of these letters and their inclusion in your hearings and report thereof.

Thank you for your consideration of this material. With kindest regards, I remain

Yours faithfully,

Enclosures.

Hon. SPESSARD HOLLAND,
Senate Office Building,
Washington, D.C.

SPESSARD L. HOLLAND.

EMMONS JEWELERS, INC., Lakeland, Fla., March 4, 1968.

DEAR SIR: I am a manager for a Direct Selling Co. My job is to recruit, hire and train a sales force. We have a high-quality product and give good service to our customers. My recruiting efforts will be greatly hampered if Senate Bill 1599 is passed because it places an unwarranted and unjustified stigma on my industry.

Very truly yours,

Mrs. EVA L. ELROD,

Branch Manager.

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