Howe

The petitioners, Phil Howe, David A. Howe, and Joanne B. Howe, trading as Howe and Company, are and have been engaged in the sale and distribution of cosmetic preparations. The preparations when sold are transported from their place of business in Seattle, Washington, to various other states of the United States and in the District of Columbia. For the purpose of inducing the purchase of the cosmetics, the petitioners use the trade name “Hollywood” and the legend under that “Favorite of the Stars.” Of the some twenty items sold by the petitioners, only three are obtained from sources in Hollywood, although more than 52% of the firm’s purchases consist of the three items manufactured in Hollywood, and as to such items the trade name is not inhibited.

The Federal Trade Commission after considering the evidence found that the word “Hollywood” when used to designate cosmetic preparations is associated by a substantial portion of the purchasing public with the motion picture industry and is understood as indicating that the cosmetics are manufactured there and are used by Flollywood stars, which is further strengthened by use of the legend “Favorite of the Stars.” The Commission found…