The Old Lady's New Look

The Federal Trade Commission has so often been confused, cranky and slow-moving in the past that Washington officials have dubbed it "the Old Lady of Pennsylvania Avenue." Last week, however, the old lady kicked up her heels over a victory that greatly increased both her prestige and power. Overruling two lower-court decisions, the Supreme Court held that the FTC acted correctly when, in 1962, it ordered Colgate-Palmolive and the Ted Bates ad agency to stop using a mock-up of Plexiglas and sand to demonstrate on TV that Palmolive Rapid Shave could make it easy to "shave" sandpaper. From now on, the FTC will be in a position to ban any deceptive mock-ups that advertisers try to use to "prove" their claims.

Down with Squirrel Guns. Despite last week's headlines, and the FTC's reputation as a very litigious lady, the commission has been trying to reduce its legal assaults. It issued 415 cease-and-desist orders last year--12% fewer than in 1963. Its $28,500-a-year chairman, Paul Rand Dixon, a husky Tennessean, scorns what he calls "the squirrel-gun approach" of suits against individual violators, prefers to lay down ground rules for entire industries.

Businessmen usually obey the guidelines because they know that the FTC is tough to beat once it does go to court. The commission recently persuaded scores of sellers and advertisers to stop claiming falsely that products have been made by blind persons, exaggerating the profits that small investors can earn in Laundromat businesses, and enticing children to become salesmen by deceptive offers of "free" merchandise. Says Dixon: "I'm a great admirer of President Johnson's attitude of 'Come, let us reason together.' "

Aspirin & Cigarettes. A onetime crusading aide to the late Senator Estes Kefauver, Rand Dixon works hard at appearing more reasonable than he used to be. When he became boss in 1961, he scarcely concealed his distrust of big business, often squabbled with his four commissioners. Frustrated by the fights on high and uneasy about the commission's broad and petty swoops on business, many of the brightest young FTC lawyers quit. Dixon did some hard thinking. He fought the morale problem by pushing pay raises and speeding promotions, began to side with staffers more sympathetic to business; recently he declared that "all but a handful" of businessmen want to compete fairly. One result: the FTC's turnover of lawyers dropped from 19% three years ago to 1 1/2 last year. The commission still has some personnel difficulties. What the 1,150-employee agency really needs is more technical experts: last year it had to drop plans for a sweeping look at aspirin marketing for lack of scientific personnel.

Though Dixon has little influence at the White House, Capitol Hill is beginning to take him more seriously. It was only after he announced plans to order cigarette makers to place warning labels on their packages and in their ads that Congress was moved to press for action. Partly to head off Dixon's stiffer proposals, Congress last week considered five cigarette bills of its own. It is likely not to demand warnings in cigarette ads but to pass a bill requiring warnings on all cigarette labels. If it does so, Paul Rand Dixon will get much of the credit--or blame.

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