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In re Arthur Murray Studio of Washington, Inc.

78 F.T.C. 401 (1972)

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In re Arthur Murray Studio of Washington, Inc.

United States Federal Trade Commission
78 F.T.C. 401 (1972)

AR

Facts

Arthur Murray Studio of Washington, Inc. (defendant) was charged with using unfair and emotional sales tactics to sign students to expensive dance lesson packages. Specifically, Murray would give out fake prizes, create fake social clubs, administer a fake dancing test, find out personal facts about prospective students to use against them, and engage in unrelenting and intense sales pressure to encourage students to sign up for lessons costing thousands of dollars. Based on consumer complaints, the Federal Trade Commission hearing examiner placed a $1,500 limitation on any contracts for dance instruction signed by Murray. Murray appealed to the federal trade commissioner.

Rule of Law

Issue

Holding and Reasoning (Dixon, J.)

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