Oakland Fur Dyeing, Inc.

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IN THE MATI'ER OF OAKLAND FUR DYEING, INC.

COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT, 26, 1014 Docket 2121. Complaint, Nov. 9, 1933-order, June 25, 1935 1 Complaint charged respondent corporation, engaged In dt·essing, dyeing, and trade-marking or otherwise marking and designating, among others, rabbit skins, at the instance and request ot and in accordance with special agreements with the owner furriers or dealers who sell the same, thus dressed, dyed, marked, branded, or designated by it for them, to garment manufacturers, with misbranding or mislabeling in stamping on the backs ot rabbit skins, so dressed and dyed by it as to cause the fur thereof to resemble the appearance of the much superior sealskin in pliability, durability, and wearing quality of the :fur, the words "Oakland Seal" in large and conspicuous letters, together with the words "Dyed Cony" in small and inconspicuous letters, with full knowledge and in aid of sale in interstate commerce by said owners of such skins, thus dressed, uyed, and marked by it for them, and by the manufacturers of garments made therefrom under the designation "Sealines", on account of or by means of their resemblance to the dyed fur of genuine seal, resulting from Its said agency or service and its aforesaid mark or brand, conspicuously <lisplaying the words "Oakland Seal" ;

With capacity and tendency to mislead and deceive the public into the purchase of said skins and of garments made thereft·om, from said owner and manufacturer vendors thereof, as and for seal, and the -substantially more costly sealskin garments, respectively, and with effect of furnishing ma1m. facturers and wholesale and retail dealers with the means enabling them to perpetrate a fraud upon the purchasing public by representing that l'afd garments are made of genuine seal and by exhibiting to customers and prospective customers the words "Oakland Seal" stamped on the skin.~ thereof in support of such false representation, and of aiding, assisting, and abetting sale in interstate commerce of r:tbblt skins thus dressed, etc., by it, and of garments therefrom, as and for seal, by the respective owners and manufacturers, and dealers therein in their various localities, and with capacity and tendency to divert traoe t;; owners offering and selllng in interstate commerce said Elkins, thus dyed, dressed and stamped by It for them, and to manufacturers of garments made thereof similarly offer· ing the same, and to wholesale dealers therein and latter's retail dealer customers, from dealers or furriers selling skins of rabbit and other furbearing animals in such commerce, truthfully tlescribP.d and marked, and from manufacturers and wholesalers thus selllng garments made of seal rabbit, or skin ·of other fur-bearing anhnals, truthfully described and branded, and from their reta!J dealer customers; to the prejudice of the public and of competitors of the aforesaid owners and of said owners' vendees, the garment manufacturers, and to the prejudice of the competitors • The order ts published as modlft!!d as of that date. Original order, not printed, was made as of May 16, 1935.

OAKLAND FUR DYEING, INC, 53 52 Complaint of Itself and of its principals, and those thus aided, assisted, and abetted by it 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,e, cease and desist from describing fur other than by the use of the cc.rrect name of the fur as the last word ln the designation thereof, and from the use of the word "seal" as designation thereof, subject to permitted use thereof in an adjective sense, together with such words as "dyed" or "blended", as in said order in detail set forth.

Mr. James M. Brinson for. the Commission.

Complaint Acting in the public interest pursuant to the provlSlons of an act of Congress approved September 26, 1914, entitled "An Act to create a Federal Trade Commission, to define i.ts powers and duties, and for other purposes", the Federal Trade Commission charges that Oakland Fur Dyeing, 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, Oakland Fur Dyeing, 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 Brooklyn, in said State, and engaged in the business of dressing, dyeing, and trade~marking or otherwise marking and designating rabbit skins and the skins of other fur-bearing nnimals for the owners thereof.

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 selling rabbit skins or the skins of other fur-bearing animals in commerce arriong ·and between the various States of the United States. It has been and is the practice of said owners of rabbit skins dressed, dyed, marked, branded, or designated for them by respondent, to sell them with the full knowledge of respondent to manufacturers of fur garments, having their places of business in the city and State of New York or elsewhere in said State, and in the various other States of the United States, and such manufacturers have offered for sale and sold garments made from rabbit skins so dressed, dyed, marked, branded, or designated in commerce among and between the various States of the United States, causing them when sold to be trans- Complaint 21 F. T. C. ported 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 services in dressing, dyeing, marking, branding, or 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, and the acts and practices of respondent hereinafter described in paragraph 2 hereof have been and are directly related to and in furtherance of such business by the owners of such skins and the manufacturers of garments therefrom.

In the course and conduct o.f its business respondent has been and is engaged in competition with other individuals, partnerships, and corr)orations. ' dressin!!,•• dyeing, marking, branding, or desiO'natin(J'b b rabbit skins or the skins of other fur-bearing animals for the owners thereof for sale in interstate commerce or for sale to manufacturers to be made into fur garments to be sold in such commerce. The owners of rabbit skins, dressed, dyed, marked, branded, ·or desig· nated 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 like commerce.

PAR .. 2. The respondent us.es and has used, a process for dressing and dyeing rabbit skins which causes the .fur of such skins to resemble in appearance the fur of genuine sealskins, and thereupon respondent stamps or causes to be stamped on the back o.f each of the skins so treated by it in large and conspicuous letters the words "Oakland Seal". Below the words "Oakland Seal" respondent causes to be stamped the words "Dyed Cony" in small and incon· spicuous letters.

Garments made from rabbit skins so dyed, marked, branded, or designated by respondent resemble garm:nts _made from dyed sealskins but in appeara?ce o~ly:. Dyed rabbit.s~rms are greatly inferior to the skins of seals m pliability and durability of the leather and in wearing quality and luster of the fur, and garments made from sealskins command prices far in excess of or substantially greater than the prices commanded by garments made from rabbit skins. PAR. 3. It requires approximately fifty rabbit skins for the construction of coats for women, while it requires on]y seven sealskins for such purpose, and large quantities of rabbit skins are dressed dyed, stamped, marked, branded, or designated by respondent a~ de~cribed in paragraph 2 hereof, for manufacture into coats' or OAJ{LAND FUR DYEING, INC, 55 52 Complaint other fur garments for women. Such garments bearing the aforesaid mark, brand, or designation of respondent on the back of the skins from which they have been and are made, have been and are sold by manufacturers thereof in the course of their business among and between the various States of the United States, under the name of or described as "Sealines" on account or by means of their ret>emblance to the dyed .furs of genuine seals resulting from the agency or service of respondent and its mark, brand or designation conspicuously displaying the words "Oakland Seal" as described in paragraph 2 hereof.

PAR. 4. There are now and have been .for many years last past competitors of respondent dressi:r:g and dyeing rabbit skins or skins of other fur-bearing animals, including the skins of muskrats and .seals for their owners, to be sold in interstate commerce, to furriers or dealers or to manufacturers to be made into fur garments for sale in interstate commerce, whose practice has been and is either to stamp or mark such skins so as clearly to indicate their kind or character, or to omit any such stamp, mark, or designatipn. Skins so dressed and dyed by such competitors of respondent with or without stamp or other designation thereon, respecting the kind or character of the skins, and garments made from them have been and are offered for sale and sold in interstate commerce by furriers or dealers or manufacturers who have been and are competitors of the individuals, partnerships, and corporations for whom respondent performs and has performed the aforesaid service of dressing, dyeing, stamping, and branding such rabbit skins.

PAR. 5. The acts and practices of the owners of rabbit skins so dressed, dyed, and branded for them by respondent at their instance and request, in offering for sale and selling such skins in interstate commerce, and the nets and practices of manufacturers of fur garments in offering for sale and selling in interstate commerce garments made from rabbit skins dyed to resemble sealskins and bearing the aforesaid brand of "Oakland Seal", have had and have and each of them has had and has the capacity and tendency to mislead and deceive the public into the purchase of such skins as and for sealskins, and into the purchase of garments made from such skins as and for garments made from sealskins. Such acts and practices have furnished manufacturers and dealers, wholesale and retail, with the means by which they have been and are enabled to perpetrate a fraud upon the purchasing public by representing that garments made from such skins are made from genuine seal fur, and by exhibiting to customers and prospective customers stamped on such skins the words ''Oakland Seal" to support their false representations that such garments are made from genuine seal fur. Order 21F. T. C.

Such acts and practices by owners of rabbit skins so dressed, dyed, and stamped by respondent and by their vendees, the manufacturers of fur garments from such skins, have had and have and each of them has had and has the capacity and tendency to divert trade to the owners of rabbit skins so dyed, dressed, and stamped by respondent, who have offered for sale and sold them in interstate commerce, and to manufacturers of garments made from such skins and wholesale dealers 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 fur-bearing animals in interstate commerce, truthfully described and marked, and from manufacturers and wholesalers selling in interstate commerce garments made from sealskins, rabbit skins, and the skins of other furhearing animals truthfully branded and described, and from theircustomers, the retail dealers.

Such acts and practices by respondent, Oakland Fur Dyeing, Inc., described in paragraph 2 hereof, have aided, assisted, and abetted, and aid, assist, and abet the sale in commerce among and between the various States of the United States, by the owners of rabbit skins dressed, dyed, marked, branded, or designated for them by respondent, of such skins, as and for sealskins, and the sale in such commerce by manufacturers and wholesale dealers and the sale by dealers in the various States of the United States in their various localities of garments made from such skins as and for garments made fro~ sealskins.

PAR. 6. The above and foregoing practices of the owners of rabbit skins, dressed, dyed, and stamped by respondent and of their vendees including the manufacturers of garments from such skins have heed and are to the prejudice of the public and of their comp~titors and the above and foregoing practices of respondent have been and are to the prejudice of the publi; an~ ~f respondent's competitors, and the competitors of respondents prmc1pals, and those it has aided a.ssisted and abetted in such practices in interstate commerce which' practic:s have been and are unfair methods of competition i~ 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 Com- • Published as modified.

OAKLAND FUR DYEING, INC. 57 52 Order mission, to define its powers and duties, and for other purposes", the Federal Trade Commission, on the 9th day of November 1933, issued its complaint against Oakland Fur Dyeing, Inc., a corporation, respondent herein, and caused the same to be served upon said respondent as required bylaw, 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 May 16, 1934, 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, Tha~ respondent, Oakland Fur Dyeing, Inc., its officers, agents, representatives and employees, in connection with the dyeing or dressing, sale, offering for sale, or advertising of dyed muskrat fur or dyed cony (rabbit) fur, cease and desist from: 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" alone or in connection, combination, or conjunction with any other word or words to describe or designate dyed cony, unless and until the word "seal" is compounded with the word "dyed" and such compounded word is immediately followed by the word '.'cony", as "seal-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 compounded with the word "dyed" and such word or words so compounded are immediately followed by the word or words signifying or designating the true name of the fur, as "seal-dyed muskrat" or "Hudson Seal-dyed muskrat".

4. Using the word "seal'' or the words "Hudson Seal" ptanding alone or in connection, combination, or conjunction with any other word or words (regardless of corporate name, trade name, or trade mark), except that the word "seal" may be used as an adjective to Oruer 21F.T.C.

uenote or describe the color or character of the dye of muskrat or cony fur, as "seal-dyed muskrat" 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 respondent 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 nnd form of its compliance with this order. PHILIP A. SINGER & BRO., INC. 59 Syllabus