Mendoza Fur Dyeing Works, Inc.

Text (OCR of the scan at left; may contain errors)

IN Tile MATTER OF MENDOZA FUR DYEING ·works, INC.

COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. IS OF AN ACT OF CONGUESS APPROVED SEPT. 26, 1914 Docket 2126. Complaint, N'ov. 9, 1933-orcler, June 25, 1935 1 Gomplaint charged respondent corporation, engaged in dressing, dyeing, and trade-marking or otherwise marking und designating, among others, rabbit skins, at the instance and request of, and in accordance with special agreements with, the owner-furriers or dealers who sell the same, thus dressed, dyed, and trade-marked or otherwise marked or designated, to garment manufacturers, or make use thereof themselves for garment ruanufactm·e, with misbranding or mislabeling, and advertising falsely or misleadingly, in describing or designating as "Mendoza Beaver", rabbit skins so dyed by it as to cause the fur thereof to resemble that of dyed beaver, using said words in advertising in magazines and trade literature· of general circulation, together with the words "This stamp signifies genuine Mendoza Beaver and Mendoza Seal'', and furnishing the owners of said skins, thug dyed by it, garment labels containing the words, "Mendoza Beaver", with full knowledge and in aid of sale in interstate commerce of said skins, thus dressed, dyed, and designated by it, and garments made therefrom, as and for beaver on account of their resemblance thereto, resulting from its said service, and advertisements and labels, describing, and designating, as aforesaid, such skins and garments made therefrom ; With capacity and tendency to mislead and deceive the public into the purchase of said skins and of garments made tl1erefrom, from said owner and manufacturer vendors thereof, respectively, as ami for beaver, and with effect of furnishing manufacturers and wholesale and retail uealers with the means enabling them to per~trate a fraud upon the purchasing public by advertising in the various localities of the several States in which their busin<'sses nre conducted, garments maue from skins so uressed and dyed by it, as ")f('!Hloza· Deaver", and by oflering and s!:!lling the same to the pulJ!ic ns and for genuine beaver, and of aiding, assi8tlng, and abetting sale in interstate commerce of ra!Jbit skins, thus dressed, etc., !Jy it, and of garments thereof, us and for beaver, by the owners and nwnufacturers, respecth·ely, and with capacity awl tenllency to <livert trnlle to owtJers olrering nnd selling In interstate commrrce rabbit skins tlms dressed and dyed by it, nnd to ruanufactur!'rs selling In such commerce garments that·eof, and to other vendees of said owners, and to wholesalers of such garments, and their customers, the retailers, from dealers or furriers selling tlJC skins of rabbit and other fur-bearing animals in such commel·ce, truthfully uescribeu and marked, and from manufacturers and deniers selling therein garments mntle from beaver, rabbit, ami other skins of fur-bearing animals, truthfully branrled and uescrlbed, and from their customer1·s, the retailers; to the prejudice of the public and of competitors of the aforesaid owners of such rabbit sl>ins, and of manufacturers of • The order Is pubiiRhed as modified ns of that date. Orlglnnl order, not printed, was made ns of May 16, 1935.

Complaint 21F.T.C.

garments therefrom, thus aided, assisted, and abetted by It in the sale of said skins and garments as and for beaver, ~nd to the prejudice of competitors of Itself and of Its principals and those it thus aided, etc., in such practices.

Ordered, respondent consenting, that respondent, its officers, etc., in connection - with the dyeing or dressing, sale, offer, or advertisement of dyed muskrat fur or dyed cony ·(rabbit) fur, in Interstate commerce, cease and desist from describing furs other than by the use of the correct name of the fur as the last wot·d in the designation thereof, and ft·om the use of the words "Deaver" or "Seal" as designations thereof, subject to the permitted use thereof In an adjective sense, together with such worlls as "dyed" or "blend:led", as in said order in detail set forth. 11/r. James M. Brinson for the Commission. Mr. Philip L. Liebman, of New York City, for respondent. Col\IPLAINT Acting in the public interest pursuant to the provisions of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its pqwers and duties, and for other purposes", the Federal Trade Commission charges that Mendoza Fur Dyeing 'Yorks, Inc., hereinafter designated respondent, has been and is using unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of said Act, and states its charges in that respect as follows: PARAGRAPH 1. Respondent, Mendoza Fur Dyeing 'Yorks, Inc., is now, and for more than a year last past has been a corporation organized, existing, and doing business under the laws of the State of New York with its principal office and place of business in the city of New York, in said s.tatc, and eng?ged in ~he business._of d:essing, dyeing, and trade-marlung or otherwise markmg and des1gnatmg rabbit skins and the skins of other fur-bearing animals for the owners thereof. It uses, and has used a process for dyeing rabbit skins which causes the fur of such skins to resemble t.he fur of dyed beaver skins, and it describes and designates rabbit skins so dyed by it as "Mendoza Deaver".

Respondent has rendered and renders such service for owners of rabbit skins, at their instance and request and in pursuance of and in accordance with special agreements therefor. Such owners have been and are furriers or dealers engaged in the business of sellin(l" rabbit skins or the skins of other fur-bearing animals in commerce~ among and between the various States of the United States. It hag been and is the practice of sa~d owners of rabbi~ skins dressed, dyed, and trade-marked or otherwise marked or dcs1gnated for them by respondent, to sell them to manufacturers of fur garments, and others MENDOZA FUR DYEING WORKS, INC, 47. 45 Complaint • described and designated as Mendoza Beaver, at the instance of, and in cooperation with, respondent. Such manufacturers have offered for sale and sold garments made from rabbit skins so dressed, dyed, and designated by respondent, in commerce among and between the variow:; States of the United States, as ".Mendoza Beaver", causing them when sold to be transported from their several places of business to purchasers located in various other States of the United States than the State or States wherein are situated such places of business.

It has been and is the practice of respondent to render such service in dressing, dyeing, and designating rabbit skins for their owners, with the. full knowledge, expectation, purpose, and intent that such skins, or garments made therefrom, will be offered for sale and sold in interstate commerce. In furtherance of such sales in interstate commerce it has been and is the practice of respondent to advertise in magazines, journals, and other trade literature of general circulation in and through the various States of the United States, in the course of which, it has used and uses the following language to describe rabbit skins dyed by it and garments made therefrom, to wit, "Mendoza Beaver". In such advertisements, or some of them, appear representations or stamps, below one of which is the following: "This stamp signifies genuine Mendoza Beaver and Mendoza Seal". -Further to encourage, assist, and promote the sale of such garments in such commerce as and for garments made from beaver skins, it has been and is the practice of respondent to furnish the owners of rabbit skins, dyed by it to resemble Leaver skins, with labels to be attached to garments made from such skins containing the words ".Mendoza Beaver".

In the course and conduct of its business respondent has been and is engaged in competition with other individuals, partnerships and corporations dressing and dyeing rabbit skins, or the skins of other fur-bearing animals, for their owners for sale in interstate commerce or for manufacture into garments to be sold in such commerce. The owners of rabbit skins dressed, dyed, described, or designated by respondent and the manufacturers of garments therefrom have been and are in competition with individuals, partnerships, and corporations engaged in the sale of similar or competitive products in interstate commerce.

PAn. 2. Large quantities of rabbit skins have been and are so dressed and dyed by respondent as to resemble and imitate beaver skins, for their owners, including 1\f. D. Spigel, Inc., a manufacturing furrier, doing business in the city of New York and State of New York, for manufacture into coats or other fur garments for 113653m--as--vo1.21----6 Complaint 21F.T.C.

women. Such garments, usually bearing labels described in paragraph 2 hereof in a conspicuous place thereon, have been sold and are sold by such manufacturers, including said :M. D. Spigel, Inc., among and between the various States of the United States, as and for Mendoza Beaver on account of or by means of their resemblance to the dyed furs of genuine beavers, resulting from the agency or service of respondent and its advertisements and labels describing and designating such skins and garments made therefrom as "Mendoza Beaver".

PAR. 3. There are now and have been for many years past competitors of respondent dressing and dyeing rabbit skins or skins of other fur-bearing animals, for their owners, either for sale in interstate commerce, or for sale for manufacture into garments for such commerce, who either stamp or mark them so as clearly to indicate the kind or character of such skins, or omit any mark or designation. There are now and for many years last past have been competitors of the owners of rabbit skins dyed by respondent and of manufacturers selling garments made therefrom, offering for sale and selling in interstate commerce dyed rabbit skins clearly described and advertised as such, and garments manufactured from dyed rabbit skins without any trade mark, brand, stamp, label, or other description. . contammg. . the wor d "b eaver " or th ere by or otherwise ~uggcsting or implying that such garments have been or are made from or out of beaver skins, or any other skins than rabbit skins and there have been and are other competitors of the owners of r~bbit skins dyed by respondent and of manufacturers selling in interstate commerce garments made therefrom, offering for sale and selling' in such commerce garments made from genuine dyed beaver skin tr~th­ fully trade-marked, branded, .or described. PAR. 4. The acts and practices of the owners of the rabuit skins so dressed and dyed for tlwm by respondent at their instance and J."equest, in offering for sale and selling such skins in interstate commerce, and the acts and practices of manufacturers of fur O'arments in offering for sale and selling in interstate commerce ~arments made :from rabbit skins dyed to resemble beaver skins described and designated as Mendoza Beaver, have had and hav~ and each of then~ has had a~d. has' the capacity and tendency to mislead and deceive the pubhc mto the purchase of such skins as and for beaver skins, and into the purchase of garments made from such skins as and for garments made from ueaver skins. Such acts and practices have furnished manufacturers and dealers, whole-. sale and retail, with the means by which they have been and are enabled to perpetrate a fraud upon the purchasing puulic by adver- MENDOZA FUR DYEING WORKS, INC, 49 45 Order . tising in the various localities of the various States in which their business is conducted, garments made from skins so dressed and dyed by respondent as Mendoza Beaver, and by offering for sale and selling the same to the public as and for genuine beaver. Such acts and practices by the owners of rabbit skins dressed and dyed by respondent, and by the vendees of such owners, including manufacturers of fur garments, have had and have the capacity and tendency to divert trade to the owners of rabbit skins dyed and dressed by respondent, who have offered for sale and sold them in interstate commerce and to manufacturers of garments made from such skins, and wholesalers offering for sale and selling the same in interstate commerce, and to their customers, the retail dealers, from dealers or furriers selling the skins of rabbits and of other furbearing animals in interstate commerce, truthfully described and marked, and from manJJfacturers and dealers selling in interstate commerce garments made from beaver skins, rabbit skins and the skins of other fur-bearing animals, truthfully branded and described, and from their customers, the retail dealers. The acts and practices of respondent described in paragraph 2 have aided, assisted, and abetted the owners of rabbit skins dressed and dyed for them by respondent in selling such skins in and among the various States of the United States as and for beaver skins, and have aided, assisted, and abetted the manufacturers of garments from such skins in selling them in such commerce as and for garments made from beaver skins.

PAn. 5. The above and foregoing practices of the owners of rabbit skins dressed and dyed by respondent and of the vendees of such owners, including the manufacturers of garments from such skins, have been and are to the prejudice of the public and of their competitors, and the above and foregoing practices of respondent have been and are to the prejudice of the public and respondent's competitors and the competitors of respondent's principals, and those it has aided, assisted, and abetted in such practices in interstate commerce, which practices have been and are unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of an Act entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes". ORDER TO CEASE AND DESIST 2 Pursuant to the provisions of an Act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes", the t Published as modified.

Order 21F. T. C.

Federal Trade Commission, on the 9th day of November 1933, issued its complaint against .Mendoza Fur Dyeing '\Vorks, Inc., a corporation, respondent herein, and caused the same to be served upon said respondent as required by law, in which complaint it is alleged that respondent has been and is using unfair methods of competition in commerce in violation of the provisions of Section 5 of said Act. On l\Iay 16, 1935, respondent filed an answer to said complaint in which it consented that the Commission may make, enter and serve upon it an order to cease and desist from the violations of law alleged in the complaint, in accordance with the provisions of Section (b) of Rule V of the Rules of Practice of the Commission; and the Commission having accepted said answer, issued an order to cease and desist on May 16, 1935, and thereafter, on to wit the 17th day of June 1935 the Commission, being now fully advised in the premises, modifies the said order to cease and desist, and It is now ordered, that respondent, Mendoza Fur Dyeing \Vorks, Inc., its officers, agents, representatives, and employees, in connection with the dyeing or dressing, sale, offering for sale, or advertising' of dyed cony (rabbit) fur, cease and desist from: t::> 1. Describing furs in any other way than by the use of the correct name of the fur as the last word of the description, and when any dye or blend is used simulating another fur the true name of the fur appearing as the last word of the description must be immediately preceded by the word "dyed", or "blended", compounded with the name of the simulated fur.

2. Using the word "seal" or the word "beaver" alone or in connection, combination, or conjunction with any other word or words to describe or designate dyed cony or dyed beaver, unless and until the word "seal" and the word "beaver" are compounded with the word "dyeu" and ~uch compounded word or words are immediately followed by the word "cony", as ''seal-dyed cony" or "beaver-dyed cony".

3. Using the word "seal" or the words "Hudson Seal" standing' alone or in connection, combination or conjunction with any other~ word or words to describe or designate dyed muskrat unless and until the word "seal" or the words "Hudson Seal" are compoundecl with the word "dyed" and such word or words so compounded ale immediately followed by the word or word;; signifying or dcsiO'nating the true name of the :fur, as "seal-dyed muskrat" or "H:Clson Seal-dyed muskrat".

4. Using the word "seal" or the word "beaver'' or the words "Hudson Seal" standing alone or in connection, combination, or conjunction with any other word or words (regardless of corporate namet MENDOZA FUR DYEING WORI\:s, INC, 51 45 Order trade name or trade-mark), except that the word "seal" or the word "beaver" may oo used as an adjective to denote or describe the color or character of the dye of muskrat or cony fur, as ",seal-dyed muskrat" or "beaver-dyed cony" or "seal-dyed cony", and except that the words "Hudson Seal" may be used as an adjective to denote or describe the color or character of the dye of muskrat fur, as "Hudson Seal-dyed muskrat".

5. Using the word "Hudson" standing alone or in connection, combination or conjunction with any other word or words to describe or designate dyed cony (rabbit) fur.

It is further ordered, That the re,spondent shall, within 90 days from the date of the service upon it of the order herein, file with the Commission a report in writing, setting forth in detail the manner and form of its compliance with this order. 52 FEDERAL TRADE COl\11\IISSION DECISIONS Syllabus 21F. T. C.