Canadian Chamois & Leather Corp

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IN THE MATTER OF CANADIAN CHAMOIS & LEATHER CORPORATION COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. (i OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 3691. Complaint, Jan. ~q, 1939-Decision, Apr. 18, 1939 Where a corporation engaged In sale, under trade name "Cllam-0-Line," ot leather interlinings for coats and similar garments, to purchasers In commerce between the several States and in the District of Columbia, in substantial competition with others engaged In manufacture, sale and distribution of leather Interlinings for coats, and also with those thus engaged in such manufacture, sale and distribution of coat linings not of leather, in commerce as aforesaid and in S'aid District, and including, among such competitors, manufacturers of products similar to those made and sold by it who do not in any wise designate same as "chamois" or represent their said products, through use of words and phrases such 'lls "Cham-0-Line," with view to misleading and deceiving purchasers and prospective purchasers into belief they are chamois- Made use of its corporate name, including word "Chamois," in offer and sale of Its said product as aforesaid, and stamped on said product, which it thus invoiced and sold, word "Cham-0-Line," and made use of tags featuring head of a goat and, conspicuously, words "Interlined with 'CIIAI\1-0- LINE,' " together with, in smaller, less conspicuous type, words "The New Chamois-Like Animal Hide Interlining • • "'" and, at bottom, "'Cham-0- Line' wlll not shrivel or dry up like ordinary Chamois,'' which It furnished to purchasers and customers by whom coats and garments made by them with Its said product were advertised as having Interlinings as represented by it, and tags furnished as aforesaid were affixed to such coats and garments, and by some of whom said garments, thus tagged and interlined, were advertised In said connection as "a new Chamois Interlining-especially treated to prevent it becoming stifr when cleaned" or as "chamoislined Back" ;

Notwithstanding fact that product dealt in and represented by it as above set forth was not In fact the ~kin of the chamois ante~ope or the oiltanned inner skin of the sheep, as long commercially known and understood from word "chamois" as meaning very soft and pliable product commercially sold under said name, but was made from wlld pig and skins other than oil-tanned Inner sheepskin or the practically extinct chamois antelope, and, while having same general appearance, did not have peculiar qualities or properties of articles known to trade anq. public as chamois; With effect of misleading and deceiving purchasers of e;aid product, through use of Its aforesaid designations, advertisements, letterheads, invoices, price lists, and tags as above set forth, into the belief that it was the skin of the chamois antelope or oil-tanned Inner skin of the sheep, or chamois, and into purchase of said product in such erroneous belief In preference to products of its competitors, and with result of placing in hands of dealers and retailers means of misleading and deceiving pur- Complaint 28F. T. C.

chasing public, and with capacity and tendency to deceive and mislead purchasers and prospective purchasers as above set forth, nnd with result of thereby unfairly diverting trade to it from competitors likewise engaged in sale nnd distribution of similar products in commerce and in said District:

IIeld, That such acts and practices were all to the prejudice of the public and competitors 'and constituted unfair methods of competition and unfair and deceptive acts and practices in commerce. Defore 11/r. Miles J. Furnas, trial examiner. 11/r, Joseph 0. Fekr for the Commission.

llfr. Victor F. Boire, of Plattsburgh, N. Y., for respondent. Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said art, the Federal Trade Commission, having reason to believe that Canadian Chamois & Leather Corporation, hereinafter referred to as respondent, bas violated the provisions of the said act, and it appearing to the 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, Canadian Chamois & Leather Corporation, is a corporation, organized, existing and doing business under and by virtue of the laws of the State of New York with its principal place of business located at 220 ·west Nineteenth Street in the city of New York, in the State of New York.

Respondent is now, and for some time past has been, engaged in the business of selling leather interlinings for coats and similar garments under the trade name "Cham-0-Line" in commerce between and among the State of New York and the several States of the United States and in the District of Columbia. When said product is sold respondent transports it from its place of business in the State of New York to the purchasers thereof located in States other than the State of New York and in the District of Columbia. There is now and for some time past there has been a current of trade and commerce in said products thus sold and distributed by respondent between and ainong the various .States of the United States and in the District of Columbia. Respondent is now and for some time past has been in substantial competition with other corporations and with persons, firms, and partnerships engaged in the manufacture, sale, and distribution of leather interlining for coats, as well as others engaged in the manufacture, sale and distribution of coat linings not of leather, in commerce among the several States of the United States and in the District of Columbia. CANADIAN CHAMOIS & LEATHER CORP. 1459 1457 Complaint PAR. 2. Respondent, in offering for sale and selling its said product bet,veen and among the various States of the United States and in the District o£ Columbia, now represents, and for some time past has represented through its corporate name containing the word "chamois'' and by advertisements, price lists, letterheads, invoices, and in other ways, as hereinafter more fully set out, that the aforesaid product is chamois. Respondent sells and has sold its said interlining product to purchasers who used and now use said product in the manufacture of coats and similar garments, which coats and similar garments said purchasers in turn advertise as having interlining'> as represented by respondent. The said interlining product thus sold and invoiced by respondent to such customers had and still has the name "Cham-0-Line" stamped thereon. Tags were and are furnished by respondent to purchasers for their use. Said customers use and have used said tags by affixing the same to coats and similar garments in which respondent's said product was and is attached as an interlining. Said tags feature the head of a gout and the conspicuously printed words "Interlined with 'CHAl\f-0-LINE.'" In smaller, less conspicuous type appear the words "The New Chamois- Like Animal Hide Interlining "' "' *" and, at the bottom of the tag, "'Cham-0-Line' will not shrivel or dry up like ord.inary Chamois."

Respondent sold and now sells said interlining prod.uct to purchasers located in various States. Certain of said purchasers who used and now use the aforesaid tags on garments interlined with said product and which they offered and now offer for sale and sold, caused and now cause their said garments to be advertised as "a new Chamois interlining-especially treated to prevent it becoming stiff when cleaned" or as "chamois-lined back." PAR. 3. Chamois has its origin in the name of an European antelope, the skin of which is made into a soft, pliable leather which is used in the manufacture of gloves and for the polishing of silver and metals, and makes a desirable leather lining in a coat. The chamois antelope is now practically extinct, and its skin is no longer an article of commerce. At the present and for a long time last past, the word "chamois" as commercially known is used to designate the inner part of a sheepskin which when oil dressed is a very soft and pliable product sold commercially under the name of "chamois." Said product likewise is valuable for polishing and cleaning purposes, and for coat interlinings, possessing particularly the power of quickly absorbing moisture and returning thereafter, when dried, to its original softness and. pliable quality. The only trad.e name and designation given to the skin of a chamois antelope and to oil dressed Complaint 28F. T. C.

sheepskin is the word "chamois," and the word "chamois" means to the retail trade and to the public either the skin of a chamois antelope or the oil-tanned skin of a sheep.

PAR. 4. In truth and in fact, the product dealt in and as represented by respondent, as set out in paragraphs one and two hereof is not in fact the skin of the chamosis antelope or the oil-tanned skin of the sheep, but is an article manufactured from wild pig, and skins other than oil-tanned sheepskin or the chamois antelope, and have the same general appearance but not the peculiar qualities or properties of articles known to the public and traae as "chamois." PAR. 5. The use by respondent of the aforesaid designations of its product, and of the advertisements, letterheads, invoices, price lists and tags described in paragraph 2 hereof, has the capacity and tendency to mislead and deceive, and has misled and deceived purchasers of the aforesaid product of respondent into the belief that such product is chamois, to wit: the skin of the chamois antelope or the oiltanned skin of the sheep, and into the purchase of said product of respondent in such erroneous belief in preference to the products of its said competitors, and has placed and places in the hands of dealers and retailers the means of misleading and deceiving the purchasing public.

PAR 6. Among the competitors of respondent mentioned in paragraph 1 hereof, are manufacturers of products similar to those made and sold by respondent, but who do not in anywise designate such products as "chamois'' or represent them, through the use of words and phrases such as "Cham-0-Line," with a view to misleading and deceiving purchasers and prospective purchasers into the belief that they are chamois.

PAR. 7. The above alleged acts and practices of respondent have the capacity and tendency to deceive and mislead purchasers and prospective purchasers into the erroneous belief that the interlining product sold by respondent is chamois and into the purchase of said product on account of such belief. Thereby trade is unfairly diverted to respondent from respondent's competitors in commerce as herein set out, referred to in paragraph 5 hereof and as a consequence t:h.ereof substantial injury is done, and has been done by respondent to competition in commerce among and between the various States of the United States and in the District of Columbia. PAR. 8. The aforesaid acts and practices of respondent as herein alleged are all to the prejudice of the public and of respondent's competitors and constitute unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. CANADIAN CHAMOIS & LEATHER CORP, 1461 1457 Findings REPORT, FINDINGS As TO THE FAcrs, AND Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on January 24, 1939, issued, and on January 26, 1939, served, its complaint in this proceeding upon respondent, Canadian Chamois & Leather Corporation, charging it with the use of unfair methods of competition and unfair and deceptive acts 1md practices in commerce in violation of the provisions of said act. On March 29, 1939, the respondent filed its answer, in which answer it admitted all the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearing as to said facts.- Thereafter, the proceeding regularly <!arne on for final hearing before the Commission on the said complaint and the answer thereto; and the Commission, having duly considered the matter, 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 PARAGRAPH 1. Respondent, Canadian Chamois & Leather Corporation, is a corporation, organized, existing, and doing business under and by virtue of the laws of the State of New York with its principal place of business located at 220 West.Nineteenth Street in the city of New York, in the State of New York.

Respondent is now, and for some time past has been, engaged in the business of selling leather interlinings for coats and similar garments under the trade name "Cham-0-Line" in commerce between and among the State of New York and the several States of the United States and in the District of Columbia. When said product is sold respondent transports it from its place of business in the State of New York to the purchasers thereof located in States other than the State of New York and in the District of Columbia. There is now and for some time past there has been a. current of trade and commerce in said product thus sold and distributed by respondent between and among the various States of the United States and in the District of Columbia. Uespondent is now and for some time past has been in substantial competition with other corporations and with persons, firms, and partnerships engaged in the manufacture, sale and distribution of leather interlining for coats, as well as others engaged in the manufacture, sale, and distribution of coat linings not of leather, in commerce among the several States of the United States and in the District of Columbia.

Findings 28F. T.C.

PAR. 2. Respondent, in offering for sale and selling its said product between and among the various States of the United States and in the District of Columbia, now represents, and for some time past has represented through its corporate name containing the word "chamois'' and by advertisements, price lists, letterheads, invoices, and in other ways, as hereinafter more fully set out, that the aforesaid product is chamois. Respondent sells and has sold its said interlining product to purchasers who used and now use said product in the manufacture of coats and similar garments, which coats and similar garments said purchasers in turn advertise as having interlinings as represented by respondent. The said interlining product thus sold and invoiced by respondent to such customers had and still has the name "Cham-0- Line" stamped thereon. Tags were and are furnished by respondent to purchasers for their use. Said customers use and have used said tags by affixing the same to coats and similar garments in which respondent's said product was and is attached as an interlining. Said tals feature the head of a g-oat and the conspicuously printed words "Interlined with 'CHAM-0-LINE'." In smaller, less conspicuous type appear the words "The New Chamois-like Animal Hide Interlining * * *" and, at the bottom of the tag, "'Cham-0-Line' wili not shrivel or dry up like ordinary Chamois." Respondent sold and now sells said interlining product to purchasers located in various States. Certain of said purchasers who used and now use the aforesaid tags on garments interlined with said product and which they offered and now offer for sale and sold, caused and now cause their said garments to be advertised as "a new Chamois interlining-especially treated to prevent it becoming stiff when cleaned" or as "chamois-lined Back."

PAR. 3. Chamois has its origin in the name of an European antelope~ the skin of which is made into a soft, pliable leather which is used in the manufacture of gloves and for the polishing of silver and metals, and makes a desirable leather lining in a coat. The chamois antelope is I tow practically extinct, and its skin is no longer an article of commerce. At the present and for a long time last past, the word "chamois" as commercially known is used to designate the inner part of a sheepskin which when oil dressed is a very soft and pliable product sold commercially under the name of "chamois." Said product likewise is valuable for polishing- and cleaning purposes, and for coat interlinings, possessing particularly the power of quickly absorbing moisture and returning thereafter, when dried, to its original softness and pliable quality. The only trade name and designation given to the skin of a chamois antelope and to oil dressed sheepskin is the word "chamois," nnd the word "chamois" means to the retail trade and to the public CANADIAN CHAMOIS & LEATHER CORP. 1463 1457 Conclusion either the skin of a chamois antelope or the oil-tanned skin of a sheep.

PAR. 4. In truth and in fact, the product dealt in and as represented by respondent, as set out in paragraphs 1 and 2 hereof, is not in fact the skin of the chamois antelope or the oil-tanned inner skin of the sheep, but is an article manufactured from wild pig, and the skins other than oil-tanned inner sheepskin or the chamois antelope, and have the same general appearance but not the peculiar qualities or properties of articles known to the public and trade as "chamois." PAR. 5. The use by respondent of the aforesaid designations of its product, and of the advertisements, letterheads, invoices, price lists, and tags described in paragraph 2 hereof, has the capacity and tendency to mislead and deceive, and has misled and deceived purchasers of the aforesaid product of respondent into the belief that such product is chamois, to-wit: the skin of the chamois antelope or the oil-tanned jnner skin of the sheep, and into the purchase of said product of respondent in such erroneous belief in preference to the products of its said competitors, and has placed and places in the hands of dealers and retailers the means of misleading and deceiving the purchasing public.

PAR. 6. Among the competitors of respondent mentioned in pantgraph 1 hereof, are manufacturers of products similar to those made and sold by respondent, but who do not in any wise designate such products as "chamois" or represent them, through the use of 'words and phrases such as "Cham-0-Line," with a view to misleading and drceiving purchasers and prospective purchasers into the belief that they are chamois.

PAn. 7. The above alleged aels and practices of respondent have the capacity and tendency to deceive and mislead purchasers and prospective purchasers into the erroneous belief that the interlining product sold by respondent is chamois and into the purelmse of said product on account of such belief. Thereby trade is unfairly diverted to respondent from respondent's competitors likewise engaged in the sale .and distribution of similar products in commerce among and between the various Stat£>s of the United States and in the District of Columbia. CONCLUSION The aforesaid acts and practices of the respondent as her£>in alleg-ed are all to the prejudice of the public anti of respondent's comprtitors, and constitute unfair methods of competition in commerce and unfair and drcepti,·e acts and practices in commerce within the intent and meaning of the Federal Trade Commis,ion .Act. 1464 FEDERAL TR.\DE COMMISSION DECISIONS Order 28 F. '1'. C. ORDER TO CEASE AND DESIST Tllis 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 fact set forth in said complaint to be true, and states that it waives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and conclusion that said respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, Canadian Chamois & Leather Corporation, its officers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of leather interlinings for coats and similar garments in commerce as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from: · 1. Representing, through the use of the word "Chamois" in its corporate or trade name or otherwise, or through the use of any words or terms of similar import or meaning, or through any other means or device, or in any other manner, that respondent is a manufacturer of leather products made of Chamois, unless said products are in fact made from the skin of the Alpine antelope or Chamois or the oil dressed inner part of a sheep's skin.

2. Using the words "Chamois," "Cham-0-Line" or any word or words, phrases, terms or names simulating the word "Chamois," alone or in conjunction with any other word or words, in any manner whatever, to describe, designate, or refer to leather products not made :from the skin of the Alpine antelope or Chamois or the oil dressed inner part of a sheep's skin.

It is further ordered, That the said respondent shall, within 60 days from the date of service upon it of this order, file with this Com· mission a report in writing setting forth the manner and form in which it shall have complied with this order. Al\IERTCAN l\IERCHANDISE CO., INC., ET AL. 1465 Syllabus