Hartman, Inc., al

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

IN THE MATTER OF AL HARTMAN, INC.

COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 3241. Complaint, Oct. 9, 1937-Decision, Nov. 6, 1937 'Where a corporation engaged In manufacture of dresses and sale and distribution thereof to retail dealers and other customers in the various States and in the District of Columbia, in substantial competition with others engaged in such sale and distribution of dresses; in advertising the same ln newspapers of interstate clrculation- (a) Represented, designated and referred thereto as "Indo China Washable Crepe Prints"; and (b) Set forth on tags attached to dresses thus advertised, offered and sold, language stating that "Owing to the peculiar delicacy of all silk weaves, manufacturers will not guarantee them as flawless," etc., and that "There are certain characteristics appearing in the weave of all silks that should N' not be considered as imperfections," etc. ; otwithstanding fact dresses thus advertised and offered were not composed of silk, product of cocoon of silk worm, as long definitely understood in mind of retail dealers and consulming public from word "silk," products of Which have long held, and still hold, great public esteem and confidence for their preeminent qualities, and us understood from word "crepe" without descriptive qualification, as applied to dress goods and other items of Wearing apparel, as meaning one of terms applied to fabrics resulting from different types of weaving silk fiber, and fabric made from cocoon of silk worm, and as commonly known and understood by public generally, "silk"· 'With cnp;city and tendency to mislead and deceive substantial portion of Purchasing public into erroneous belief that such dresses were made of Silk, and to cause them to purchase said dresses by reason of such erro· neous beliefs, thus engendered, and to divert trade unfairly to it from competitors engaged in manufacture and sale of silk dresses who do not misrepresent the kind of dress£>s made and offered for sale by them; Jr to the substantial Injury of competition In commerce: 1 e d, That such acts and practices were to the prejudice of the public and competitors and constituted unfair methods of competition. },fr, Astor II ogg for the Commission.

Complaint t Pursuant to the provisions of an Act of Congress approved Sep- ~mber 26, 1914, entitled "An Act to create a Federal Trade Commis-Sion to d fi . .F d' e ne 1ts powers and duties, and for other purposes," the e eral Trade Commission, having reason to believe that Al Hartman, Inc., a corporation, hereinafter referred to as respondent, has Complaint 25F. T.C.

been and is using unfair methods of competition in commerce, as "commerce" is defined in said act, and it appearing to said Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent, Al Hartman, Inc., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 1400 Broadway in the city of New York, in said State. It is now, and for many years last past has been, engaged in the business of manufacturing dresses. It sells, and has sold and distributed, such dresses to retail dealers and other customers located in the various States of the United States and in the District of Columbia. It causes, and during the time above mentioned has caused, its said dresses, when sold, to be shipped from its place of business in New York City to the purchasers thereof located in the various States of the United States other than the State of New York. There is now, and has been at all times mentioned herein, a ~constant current of trade and commerce by said respondent in said dresses, so sold by it, between and among the various States of the United States. Respondent is now, and at all times herein mentioned has been, in substantial competition with other corporations and with persons, firms, and partnerships engaged in the sale and distribution of dresses in commerce between and among the various States of the United States and in the District of Columbia. PAR. 2. In the course and conduct of its business as described in paragraph 1 herein, respondent, in soliciting the sale of and selling certain of its dresses, caused, and causes, advertisements and advertising matter to be inserted in newspapers having an interstate circulation. In said advertisements, such dresses offered for sale and sold by respondent were represented, designated and referred to as "Indo China 'Vashable Crepe Prints." The dresses so advertised and offered for sale, and sold, had, and have, attached thereto tags bearing the following language:

Owing to tlle peculiar dellcacy of all silk weaves, manufacturers will not guorantee tlwm as flawless, or against perspiration, slipping or roughing. There are certain characteristics appearing In the weave of all silks that i'honld not be con~ldered as imperfections. They are unavoidable results for whicb the manufacturer cannot be held responsible. The foregoing statements and representations m:ule by the respondent, as in this paragraph set out, serve as representations to members of the purchasing public anll to rrtail dealers that such dresses so adyertised and offered for sale were, and nre, silk d1·esscs. AL HARTl\IAN, INC. 1359 1357 Complaint The representations hereinabove set forth are, and. were, grossly false and misleading in that said dresses so represented, designated. and referred. to are not, and were not, composed of silk, the product of the cocoon of the silkworm, but are, and were, composed. of materials other than silk.

PAR. 3. The word "silk" :for many years last past has had, and still has, in the mind of the retail dealers and consuming public generally .a definite and specific meaning, to wit, the prodnrt of the cocoon of the silkworm. Silk products for many years have held, and still hold, great public esteem and confidence for their preeminent qualities. Silk fibre has long been woven into a variety of fabrics. A variety 0~ distinctive terms has been applied to the fabrics resulting from different types of weaving of silk fibre. Dress goods and other items of Wearing apparel designated, described and referred to as "crepe" ~ave been for a long time, and at the present time still are, associated In the public mind with the fabric made from the cocoon of the silkworm, commonly known and understood by the public generally as "silk."

. PAR. 4. There are among the competitors of respondent mentioned In paragraph 1 herein corporations, individuals, partnerships, and fi~ms engaged in the manufacture and sale of silk dresses who do not misrepresent the kind of dresses manufactured and offered for sale by them.

P~n. 5. The use by respondent of the representations set forth herem have had, and now have, the capacity and tendency to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that such representations are, and were, true and to cause them to purchase said products as a result of such erroneous beliefs engendered as above set forth. The use by respondent of the r:presentations aforesaid has unfairly diverted, and does unfairly dn'?tt, trade in said commerce to the respondent from its suitl competitors, and thereby substantial injury is being, and has been done, by respondent to competition in commerce among and between the '·arious States of the United States.

• par. 6. The above alleged acts and practices of respondent, us here· Inabove alleged, are all to the prejudice of the public and respond- ~nt's said competitors, and constitute unfair methods of competition ~commerce within the intent and meaning of Section 5 of an Act of congress entitled "An Act to create a Federal Trade Commissioll, ~0 define its powers and duties, and for other purposes,'' approve1l ' P]>tembpr 26, 1914.

l:i8121'"-3!l -88 1360 FEDERAL TRADE CO:MMISSION DECISIONS Findings 25F.T.C.

REPORT, FINDINGS AS ·ro THE FACTS, AND ORDER 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 Federal Trade Commission, on the 9th day of October 1937, issued and subsequently sened its complaint in this proceeding upon respondent Alliartman, Inc., a corporation, charging it with the use of unfair methods of competition in commerce in violation of the · provisions of said act. On November 3, 1937, the respondent filed its answer in which answer ,it admitted all the material allegations of the complaint to be true and stated that it waived hearing on the charges set forth in the said complaint and consented that, without further evidence or other intervening procedure, the Commisison may ,issue and serve upon it findings as to the facts and conclusion and an order to cease and desist from the violations of law charged in the complaint. Thereafter, this proceeding regularly came on for final hearing before the Commiss:on on the said complaint and the answer thereto, and the Commission having duly considered the same and being now fully advised in the premises, finds that this proceeding is in the interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom: FINDINGS AS TO THE FACTS P ARAGnAPII 1. Respondent, AI Hartman, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 1400 Broadway in the city of New York, in said State. It is now, and for many years last past has been, engaged in the business of manufacturing dresses. It sells, and has sold and distributed, such dresses to retail dealers and other customers located in the various States of the United States and in the District of Columbia. It causes, and during the time above mentioned has caused, its said dresses, when sold, to be shipped from its place of business in New York City to the purchasers thereof located in the various States of the United States other than the State of New York. There is now, and hns been at .all times mentioned herein, a constant current of trade and commerce by said respondent in said dresses, so so]d by it, between and among the various States of the United. States. lwspondent is now, and at all times herein mentioned. has been, in substantial competition with other corporations and. with persons, firms, and partnerships engaged in the sale and AL HARTMAN, INC. 1361 1357 Findings distribution of dresses in commerce between and among the various States of the United States and in the District of Columbia. PAR. 2. In the course and conduct of its business as described in paragraph 1 herein, respondent, in soliciting the sale of and selling c~~tain of its dresses, caused, and causes, advertisements and adverilsmg matter to be inserted in newspapers having an interstate circulation. In said advertisements, such dresses offered for sale and sold by respondent were, and are, represented, designated and referred to as "Indo China 'Vashable Crepe Prints." The dresses so advertised and offered for sale, and sold, had, and have, attached thereto tags bearing the following language : Owing to the peculiar delicacy of all silk weaves, manufacturers will not guarantee them as flawless, or against perspiration, slipping or roughing. There are certain characteristics appearing in the weave of all silks that should not be considered as imperfections. They are unavoidable results for Which tJ;le manufacturer cannot be held responsible. PAR. 3. In the manner and through the means above stated, respondent represented, and represents, to retail dealers and to memh;rs of the purchasing public generally that such dresses so advertised and offered for sale were, and are, silk dresses. The repre- ~entations hereinabove set forth arc, and were, false and misleading In that said dresses so represented, designated and referred to were 11.0t, and are not, composed of silk, the product of the cocoon of the Silkworm, but were, and are, composed of materials other than silk. _PAR, 4. The word "silk" for many years last past has had, and Shu has, in the mind of the retail dealers and consuming public generally a definite and specific meaning, to wit, the product of the cocoon of the silkworm. Silk products for many years have held, an~ still hold, great public esteem and confidence for their preenunent qualities. Silk fibre has long been "\\'oven into a variety of fabrics. A variety of distinctive terms has been applied to the fabrics resulting from different types of weaving of silk fibre. Dress goods and other items of wearing apparel designated, described or l:eferred to as "crepe," without a modifying word descriptive of the fibre from which they are made, have been for a long time, and at the present time still are, associated in the public mind with a fabric lliade from the cocoon of the silkworm, commonly known and understood by the public generally as "silk."

. PAn. 5. There are among the competitors of respondent mentioned ~~ paragraph 1 hereof corporations, individuals, partnerships, and Irms engaged in the manufacture and sale of silk dresses who do 1 ~0t misrepresent the kind of dresses manufactured and offered for !;ale by them.

1362 FEDERAL TRADE COl\Il\IISSION DECISIONS Order 25F. T.C.

PAR. 6. The representations made by respondent in conn~ction with the sale and distribution of said dresses in said commerce as hereinabove set out have had, and now have, the capacity and tendency to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that such dresses were made of silk, and to cause them to purchase such dresses on account of such erroneous beliefs engendered as above set forth. The representations made by respondent, as aforesaid, have the capacity and tendency to unfairly divert trade to respondent from said competitors, and thereby substantial injury is being done, and has been done, by the respondent to competition in commerce as herein set out. CONCLUSION The aforesaid acts and practices of respondent AI Hartman, Inc. are to the prejudice of the public anu of responuent's competitors, and constitute unfair methods of competition in commerce, "\within the intent and meaning of Section 5 of an Act of Congress, ap· proved Septem.ber 26, 1914, entitle<l "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes."

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of respondent, in which answer respondent admits all the material allegations of the complaint to be true, and states that it waives hearing on the charges set forth in saiu complaint and consents that, without further evidence or other intervening procedure, the Commission may issue and serve upon it fintlings as to the facts and conclusion and an oruer to cease and desist from the violations of law charged in the complaint, and the Commission having made its findings as to the facts and conclusion that saiu respondent has violate<! the provisions of an Act of Congress, approve<! September 2G, 1914, entitled "An Act to cre:tte a FedHal Trade Commission, to define its powers and duties, anu for other purposes."

It is ordered, That the respondent AI Hartman, Inc., its officers, rrpresentatives, ag('nts, and employees, in connection with the offerin~ for sale, sale and distribution of its merchandise, women's wearing apparel and dress goods, in interstate commerce or in the District of Columbia, do forthwith cease anu d('sist from: 1. Using the word "silk," or any other word of similar import or meaning, to describe products which are not composed wholly of silk, AL HARTl\IAN, INC. 1363 1357 Order the product ·of the cocoon of the silkworm, but which are composed of a material or materials other than silk. 2. Using the word "crepe" to describe, advertise, brand or label any product which is not composed wholly of silk, the product of the ~ocoon of the silkworm, unless there is used in immediate conn.ectwn and conjunction with said word "crepe," in letters of equal Slze and conspicuousness, a word or words accurately describing the material or materials from which said products are actually made. It i8 further ordered, That the respondent shall, within 30 days after the service upon it of this order, file with the Commission a l·eport in writing settin(l' forth in detail the manner and form in Which it has complied with this order.

1364 FEDERAL TRADE COMl\IISSION DECISIONS Syllabus 25 F. '1'. C.