Canadian Fur Trappers Corporation, and Daniel Dornfeld, Jacob Dornfeld, and Morris Dornfeld

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IN THE MATTER OF CANADIAN FUR THAPPERS CORPORATIO~, AND DANIEL DORNFELD, JACOB DORNFELD, AND MORRIS DORN- FELD CO}IPf,.U:s:·r, FI:S:LH~GS, A:S:D ORDER I:'ll REG.\RD TO THE ALLEGED VJOLATIOX OF SEC. 5 OF AN ACT OF CO~GRESS API'UOVED SEPT. 2G, H\14 Duekrt S.p_q. Cowpluiut, May 1.1, 19.18-Dcci~iou, Scarf. 16, 1940 • \Vhere a eorporntion ami two indiYidnnls, who were, aml had lweu since its incorporutiou, officers that·eof, and who partic·lpnted in controlling and directing its policies and practices, ('ngnged in sflle and dbtribntlon of furs and fur products to purehnsers in othet· States and In the District of Columhia, In substantial competition with others likewise engaged in sale and distribution of such produrts in rommerce as aforesaid, including tho><e selling and distributing their products In commerce who do not in any mmmer misrepre~-;ent their status or nature, or character of their business, or geograph- Ical origin of their products, and who do not represent that they are trappers or manufacturing funiers when such Is not the case, and do not misrepresent in any manner the natme, character or quality of pro1lncts sold or offer('d by them- (a) .\adopted and used as corporate and trade name, name including word~ "Cnnadinn I<'ur Trappers," and eanied on their business therf'umler continuously in soliciting sale of and selling their said product!" in commerce as aforesaid, aud displayed said name on letterheads, billbends, curds, invoicl's, and lnbi>ls, and In uew~·paper and radio ad>erti,.ing, and fl'ntured in certain of their said nd,·erth.;emeuts wot·d "CamHlian" uud al;;o wo1·ds "Fur Trnppers," with abbreviation "Corp." in small and Inconspicuous type, aud displayed in cl'rtaiu udvet·tising mattl'r large seal or emblem f.<ilnulatinl{ Royal Coat of Arms of Great Britain, togethl'r with word "Canadian" in conspicuous ll'tters and words ''Fur TflliJI:tet·s" less conspicuously and, in Very flue print, word "Corp."; notwithstanding fact concN'n in que!';tion wns llot a Cnnadinn corporation, but a domestic one, und lmd no connection 1>r a~sodatlou with any organization, grouv, or interest composed or repre- Renting Canadian fur tt·nppl'rs o1· trappers of fm·-bcnring auimnl~. nud wns not eng-aged In business of fur tt·apping or <•therwi~IE:' takiug o-r eurJtnrlug snell auimnls, and furs of Canadian origin dl'alt lu by them did not exci'Pd f•·om 2ii vercent to 3::1 ]:tercent of snell prollucts iu whleh, as n whole, they dealt;

'With effect of deceiving und misl!'nding lllo"Jll'cli\'e lllll'ehasers and purehasers of their said products into the brief that corporation in question wns a Cnnndian one, owned, controll('d, and operated by Canadian fur trappers, and that 1woducts offered nnd sold by them were furs and fur products which they had misle or llllluufuetme\1 from peltriP;.o of auimnls attuall3 !ihot, tt·apJ)('rl, or killed, or otherwl"e cnnght mul taken by them in Cmu,da, and were o1Te1·ed and liohl to public lly them without nny intPnention of mlddlemnn, as }weferred by substantial portion of pnrthllliing puhlir, and of ll<>c('l\'ing and mi~h·ncllng pnreha~(·rs Into errmwon>~ !Jdicf, through ~uch !<lmnlation 860 FEDERAL TRADE COMMISSION DECISIOXS Complaint 31 F. T. C. of Royal Coat of Arms, that it was organization or a~soclation of trappers of fur-beat·ing animals in Canada, fur of which, and of animuls in other northet·n countrie;;, is widely believed among purchasers and pro:spectlve purchasers to be superior to that of animals living in milder, more temperate climate, and that they were engaged in busine~s of dealing primat·i!y in furs and fur products produced in said country and were trappers of furbearing animals and actually shot, killed, trapped, or otherwil'le caught or took S~Uch animals in Canada, and that furs and fur products offered and sold by them were such products, made by them ft·om peltrles of animals so shot, etc., by them; and (b) Described or represented certain of said corporation's products in newspaper ad,·ertlsements as "Hudson SPal," "l\IPndoza Bea,·er," ''Beaverette," and "American Broadtail," and repre>:entefl tbe1·eby that garments in question were made from pl:'ltries of twal, beaver or bnby lambs of Karakul breed of sheep, re~<pectively, facts being pto<luct offered and sold by them as "Hud· son Seal" was made from peltrles of mu;:krats, "l\Iendoza Beaver," and "BeaYet·ette" pro<lucts were made from }X'ltries of rabbits, so dressed m1d dyed as to resl'mble fur products made from peltries of spa l and hi' a wr, respectively, and "Amer·ican B1·oadtail" products were made from peltrit>g of lambs other than baby lambs of Kamkul hret>d of sheep, so dregsed and dyed as to resemble such peltr·ies, and pro<lucts in qul'stion Wl'l'e not, as represented as aforesaid, made from the superiot· pl'ltl'ies, as ri'Cognizl'd by public, or sal, muskrat, or baby lambs of Karakul breed; With effect of misleading and deceiving purchasers and prospective purchasers of their aforesaid furs and fur products into erronl'ous belief that they were actually made from peltries of seal, in case of so-called. "Hudson Seal," beaver in case of "Mendoza Deaver" and "Beaverette," and baby lamb of Karakul breed of sheep in case of "A.metican Broadtail," and with result, by reason of such mistaken and erroneous beliefs, engemlered as above set forth, that substantial portion of purchnRing public was induced to buy furs and fur products from them, and tr·ade was thereby 1mfairlr divl'rted to them from competitot·s who truthfully rl'present quality and charactet• of their products, source thereof and nature of their business; to the injury of competition in commerce :

Held, That such acts and practicl's, under the dr·cumstances slt forth, Wl're all to the prejudice of the public and competltot·s, and conRtitnted unfair methods of competition.

Before M1·. Edward E. Reardon, Mr. J.lliles J. Fu.rna.~, and 11/r. John L. Hornor, trial examiners.

Mr. Joseph 0. Fehr for the Commission .

•Yr. Harry S. Hall and Goldstein & Gold.stein, of New York City, for respondents.

Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said act, the Federal Trade Commh:sion, having reason to believe that Canadian Fur Trappers Corporation, a corporation, ami Daniel Dornfeld, Jacob Dornfeld, and l\Iorris Dornfeld, as individuals, and as officers of said CANADIAN FLTR THAPPERS CORP. ET AL. 861 8GD Complaint corporation, hereinafter referred to as respondents, have violated the provisions of 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 Fur Trappers Corporation is a corporation organized, existing, !\lld doing business under the laws of the State of New York, with its principal place of business located at 156 \Vest Thirty-fourth Street, in the city of New York, in • the State of New York. Respondents Daniel Dornfeld, Jacob Dornfeld, and ~Ion·is Dornfeld, are officers of said corporation, and individually and as such officers participated and participate in the control and direction of the. policies and activities of said corporation and in the acts and practices hereinafter alleged. Respondents also maintain and operate retail establishments in the city of Buffalo, in the State of New York, and in the city of Newark, in the State of New Jersey. They are now, and have been for several years heretofore, engaged in the business of selling and distributing to members of the purchasing public, among other items of merchandise., fur products.

Respondents cause said fur products to be transported from their respective places of business in New York and in New Jersey to purchasers thereof located at points in States of the United States other than the State from which such fur products are shipped and in the District of Columbia. They maintain, and for a period of more than one year last past have maintained, a course of trade and commerce in said fur products, between and among the various States of the United States :mel in the District of Columbia. • PAR. 2. Respondents have been and are engaged in substantial competition in the sale and distribution of said fur products with other corporations and with firms, partnerships, and individuals likewise engag~:>d in the busin~:>ss of selling and distributing fur products in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 3. In the course. and conduct of their bu~iness as hereinbefore described, said respondents adopted as and for their corporate. and trade name the words "Canadian Fur Trappers Corporation," under which to carry on their business, which corporate and trade name they have used continuously for several years last past, and are now using, in soliciting the sale of and selling their fur products in commerce !lmong and betw~:>l'n the nrions State~"> of the United ~states and in the District of Columbia. Respondents have rnused and cause their 862 FEDERAL TRADE COl\ll\USSION DECISIONS Complaint 31 1<'.1'. c. said corporate and trade name, "Canadian Fur Trappers Corporation," to appear on their letterheads, billlwads, cards, invoices, labels, ne,Yspaper advertising matter, and in radio ad,·ertising, having interstate distribution.

In certain newspaper advertisements in which said corporate name is used, respondents display the word "Canadian" in very large and conspicuous type. The words "Fur Trappers" also appear in large and conspicuous type, but somewhat smaller than the size type used in printing the word "Canadian," and directly thereunder. In relatively small and inconspicuous type under the word "Canadian" and following the words "Fur Trappers" appears the abbreviation "Corp." In certain of said advertising matter respondents have caused to be displayed a large seal or emblem simulating the Roy,al Coat of Arms of Great Britain, on which is printed in large and conspicuous letters the word "Canadian," under which the words "Fur Trappers" appear in smaller but conspicuous letters.

In certain other newspaper a<hertising matter, radio broadcasts, and in Yarious other ways, respondents hare made misleading representations and statements concerning their business status of which the following is repref:ientative:

CAKADIAX FUR TRAPPERS In said newspaper advertisements in which said statements and representations are used respondents display the word "Canadian" in very large and conspicuous type. The words "Fur Trappers" appear also in large and conspicuous type, but somewhat smaller than the size type used in printing the word "Canadian," and directly thereun(ler. PAR. 4. The corporate name "Canadian Fur Trappers Corporation." alone or together with the statementf:i appearing in respondents' advertising matter as hereinaboye set. forth, purports to be descriptive of the business status and character, mamwr of acquisition, manufacture, and sale of the products offered for sale and sold by respondents. Tiy the use of said corporate name. "Canadian Fur Trappers Corporation" or by the use of the words "Canadian Fur Trappers" independently or on or in connection with an emblem, seal or coat of arms simulating the Royal Coat of Arms of Great Tiritain in their advertising matter, as hereinabove set forth, or otherwise, respondents represent and imply, and the public has been and is leu to believe: 1. That responuent Canadian Fur Trappers Corporation is :1. Canadian corporation.

2. That said corporation is owned, operated, or contro1Jed by Canadians.

CANADIAN FUR TRAPPERS CORP. ET AL. 863 s::;o Uomplaint 3. That respondents are engaged in the business of offering for sale and selling primarily Canadian fur products. 4. That respondents are an organization, association, or business house composed of Canadian fur trappers.

5. That respondents are trappers of fur-bearing animals. 6. That respondents actually shoot, kill, trap, or otherwise catch or take such fur-bearing animals in Canada.

7. That the fur products offered for sale nnd sold by respondents are the fur products made m· manufactured by them from the animals so • shot, killed, trapped, or otherwise caught or taken by them. 8. That said fur products are offered for sale and sold to the public by respondents as trappers without the intenention of any middleman. PAR. 5. There has been and is a preference on the part of a substantial portion of the purchasing public fot dealing direct with the manufacturer or producer of the merchandise which it buys. Such preference is brought about by the belief on the part of said members of the purchasing public that in dealing direct with the manufactwrer or producer they can secure better prices, superior merchandise, and other advantages which cannot be secured when merchandise is purchased after having gone through the hands of middlemen. There has been and is a widespread belief among purchasers and prospective purchasers of fur products that the fur of animals in Canada and in other northern countries and parts of the world is superior to that of animals living in milder or more temperate climates, and such persons have had and have a preference for the fur products of animals from such northern countries and parts of the world because of such belief in the superiority of the fur products from such animals over the fur products :from animals obtained from more temperate climates.

PAR. 6. Fur products made from the peltries of the seal are properly and commonly designated as Seal or Alaska Sealskin. Fur products made from the peltries of the beaver are properly and commonly designated as Beaver, and fur products made from the peltries of baby lambs of the Karakul breed of sheep are properly nnd commonly designated as Broadtail.

Fur products made from the peltries of seal and beaver are superior to fur products made from the peltries of muskrat and rabbits. Fur products made from the peltries of baby lambs of the Karakul breed of she:>E:>p are superior to fur products made from the peltries of baby lambs of other breeds of sheep. There is a preference on the part of a. substantial portion of the purchasing public for fur products made from genuine peltries of the particular fur-bearing animals lu~rein- Complaint 31 F. T. C. above referred to, because of their superior quality, and said genuine fur products demand ftnd bring substantially greater prices than fur products made from the peltries of muskrat, rabbits, or other breeds of lambs used to stimulate the genuine fur products. PAR. 7. In the course and conduct of its business, and for the purpose of inducing the purchase of its fur products by members of the purchasing public, respondents have, from time to time, inserted advertisements in ne,vspapers havi11g an interstate circulation and have made use of other advertising media, including radio broadcasts, designed and intended to influence purchasers of said fur products. In said advertisements, respondents have caused certain of their fur products to be represented as Seal, Hudson Seal, Mendoza Beaver, or Beaverette. Said designations purport to be descriptive of respondents' fur products and sene as representations that said garments are made from the peltries of seal or of beaver.

In said advertisements, respondents have caused certain of their fur products to be represented as "American Broadtail." Said designation purports to be descriptive of respondents' fur products and serves as a representation that said fur products are made from the peltries of baby lambs of the Karakul breed of sheep.

PAR. 8. (a) In truth and in fact, the representations and implications made by respondents as hereinabove set forth in paragraphs 3 and 4 are and were and each of them was and is false and misleading, for the following reasons :

1. Respondent Canadian Fur Trappers Corporation is not a Canadian corporation.

2. Said corporation is not owned, operated, or controlled by Canadians.

3. Respondents are not engaged in the business of offering for sale and selling primarily Canadian fur products. 4. Respondents are not an organization, association or business house composed of Canadian fur trappers.

5. Respondents are not trappers of fur-bearing animals. 6. Respondents do not actually shoot, kill, trap or otherwise eatch or take fur-bearing animals in Canada.

7. The fur products offered for sale and sold by respondents are not made or manufactured by them from peltries of animals shot, killed, trapped, or otherwise eaught or taken by them in Canada or elsewhere. 8. Respondents do not make or manufacture the fur products which they offer for sale and sell to the public.. 9. Respondents are retail merchants offering for sale and selling to the public fur products made or manufactured by others. CANADIAN FUR TRAPPERS CORP. ET AL. 865 859 Complaint (b) In truth and in fact, fur products offered for sale and sold by respondents bearing the designations Seal and Hudson Seal are made from the peltries of rabbit and muskmt, respectively, and fur prodnets offered for sllle and sold by respondents bearing the ·designations l\lpndoza Beaver, Beaver, and Beaverette are made from the peltries of rabbits, so dressed and dyed as to resemble fur products made from the peltries of beaver. Said muskrat and rabbit peltries are inferior to the peltries of the beaver and the seal in pliability and durability and in the lustre of the fur. • In truth and in fact, the fur products offered for Rale and sold by respondents bearing the designation "American Broadtail" are made from the peltries of lambs other than baby lambs of the Karakul breed of sheep. Said fur products are so dressed and dyed as to resemble the peltt·ies of baby lambs of the Karakul breed of sheep. Said peltries are inferior and l£»ss acceptable to the buying public than the peltries of baby lambs of the Karakul breed of sheep. In truth and in fact, the fur products offered :for sale and sold by re...,pondents bearing designations descriptive of other fur-bearing animals are made :from peltries other than the peltries of the animals so designated. Said :fur products are so dressed and dyed as to resemble peltries from superior fur-bearing animals but are inferior in pliability and durability of the leather and in wearing quality and luster of the fur.

PAR. 9. There are now and have been competitors of respondents selling and distributing fur products in commerce among and between the various States of the United States and in the District of Columbia who do not in any manner misrepresent their status or the nature or character of their business or the geographical origin of their products and who do not represent that they are trappers or manufacturing furriers when such is not the fact and who do not misrepresent in any manner the nature, character or quality of the products sold or offered for sale by them.

PAR. 10. The use by respondents in their corporate and trade name, or otherwise, of the words "Canadian Fur Trappers Corporation" had and has a capacity and tendency to, and did and does, deceive and mislead prospective purchasers and purchasers of their fur products into the belief that Canadian Fur Trappers Corporation is a Canadian corporation, owned, controlled, and operated by Canadian fur trappers, and that the products offered for sale and sold by respondents are the fur products which they have manufactured from animals actually shot, killetl, trapped, or otherwise caught or taken bv them in Canada. • Findings 31 F. T. C. The use by respondents of the words "Canadian Fur Trappers" in their trade name or in their advertising matter as aforesaid, or the use by respondents of an emblem, seal, or coat of arms simulating the Royal Coat of Arms of Great Britain, on which the words "Canadian Fur Trappers" appear, had ancl has the capacity and tendency to, and did and does, deceive and mislead prospective purchasers and purchasers of their fur products into the erroneous belief that respondents are an organization or association of trappers of fur-bearing animals in Canada; that it is owned, controlled, and operated by Canadians; that it is engaged in the business of dealing primarily in fur products produced in Canada; that its nwmbers are trappers of fur-bearing animals; that its members actually shoot, kill, trap, or otherwise catch or take such fur-bearing animals in Canada; and that the fur products offered for sale and sold by respondents are the fur products made or manufactured by them ft·om the animals so shot, killed, trapped, OF otherwise eaught or taken by them and are offered for sale and sold to the public by them without the intervention of any middleman; and that said fur products are actually made from the peltries of seal, beaver., or baby lamb of the Karakul cbrPed of slwep.

On account of such mistaken and erroneous beliefs hereinabove spt forth, a substantial portion of the purchasing public has been induced to purchase fur products from respondents and thereby trade has been unfairly diverted to respondents from competitors named in paragraph!=: 2 and 9 hereof. As a result thereof, substantial injury has been and now is being done by respondents to competition in commerce among and between the various States of the United States and in the Di~trict of Columbia.

PAR. 11. The aforesaid acts and practices of respondents as herein alleged are all to the prejudice of the public and of respondents' competitors and constitute unfair methods of competition in commerce within the intent ancl meaning o£ the Federal Trade Commission Act.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission .Act, the Federal Trade Cmmnission on May 13, 1938, issued and served its complaint in this proceeding- upon the respondents, Canadian Fur Trappers Corporation, a corporation. and Daniel Dornft-ld, .Tacoh Dornfeld, anrl ~!orris Dornfeld, as individuals and as officers of said corporation. charging them with the use of unfair methods of competition in commerce in violation of the provisions o£ said act. After the filing of answer and amended answpr to said complaint by the rl'- CANADIAN FUR TP.APPERS CORP. ET AL. 867 ~pondents, te~timony, and other evidt>nce in support of the allt>gation~ of ~aid complaint were introduced by Joseph C. Fehr, attorney for the Commission, and in opposition to the allt>gations of said complaint by Goldstein & Goldstein, attorneys for respondents, before trial examiners of the Commission theretofore duly designated by it. Said te>stimony aiel other e\·idence were duly recorded and filed in the office of the Commission. Subsequently a stipulation of facts was Pntered into betwepn counsel for tlw respondents and ,V. T. Kelley, tlw Commission's chief counsel, subject to the Commission's approval. There- •after, the proceeding regularly came on for final hearing before 1he Commission on said complaint and said nmended answer thereto, te~timony and other evidence, inclULling said stipulation as to the facts, briefs in support of the complaint, and in opposition thereto, and the oral arguments of counst>l aforesaid; and the Commission having duly considt>red the mattt>r and being now fully advised in the premises, finds that this procet>ding is in the interest of the public and makt>s this its findings as to the facts and its conclusion drawn therefrom. FINDINGS AS TO THE :tacts PARAGitAPH 1. Respondent, Canadian Fur Trappers Corporation, is a corporation, organized in 192:2, existing and doing business under the l:tws of the State of New York, with its office and princip:itl pl:1cn of business located at 15G West Thirty-fomth Street, in the city of New York, State of New York. The office of president of said eorporate rt-spondent has been vacant for several years but one Samuel Dornfeld and one Harry Dornfeld are vice presidents and respondent Morris Dornfeld and respondent Jacob Dornfeld are secretary and treasurer, respectively, of said corporate respondent. Respondent Dnniel Domfelcl is not an official of said corporate respondent, but has from time to time been employed by it. The aforementioned officers have held their respective offices since the incorporation of rpspondent corporation in HJ22. During this time the corporate respondent, Cuuadian Fur Trappers Corporation and. its aforesaid fJfficers have also maintained nml operated retail establishments in Buffalo, N.Y., and in Newnrk, and Paterson,~. J. PAn. 2. In the course and conduct of their business said respondents are now, and have bt>en for more than 5 years last past, engaged in the business of selling and distributing to members of the purchasing public, along other items of merchandise, furs and fur products, and cau~e said furs and fur products, when soltl, to be transported from their re!;peetin• placrs of husinP~s in New York and New Jersey to pun·husers ther·pof located at points in Stutes of the United States other than ~;aid States of New York and New Jersey nnd in the District of CO~fl\IISSION DECISIONS 868 FEDERAL TRADE Findings 31 F. T. C. Columbia. Said respondents maintain, and for many years havo maintained, a course of trade and commerce in said furs and fur products, between and among the various States of the United States and in the District of Columbia. The aforesaid individual respondent officers, together with Samuel Dornfeld and Harry Dornfeld, control and direct the policies and practices of Canadian Fur Trappers Corporation, the corporate respondent herein.

PAR. 3. Respondents have been, and are, engaged in substantial com- • petition in the sale and distribution of said furs and fur products with other corporations, and with firms, partnerships, and individuals likewise engaged in the ousiness of selling and distributing furs and fur products in commerce among and between the various States of the United States nnd in the District of Columbia. PAR. 4. In the course and conduct of their business, said respondents adopted as and for their corporate and trade name the words "Canadian Fur Trappers Corporation," under which they carry on their business, which said corporate and trade name they have used, continuously in soliciting the sale of and selling their furs and fur products in commerce among and between the various States of the United States and in the District of Columbia. Respondents have caused and cause their said corporate and trade name "Canadian Fur Trappers Corporation," to appear on letterheads, bill heads, cards and invoices, labels, and in newspaper and radio advertising. In certain newspaper advertisements in which said corporate and trade name is used, respondents display the word "Canadian'' in very large ~md conspicuous type. The words "Fur Trappers" also appear in large and conspicuous type, but somewhat smaller than the size type used in printing the word "Canadian," and directly thereunder. In relatively small and inconspicuous type under the word "Canadian'' and following the words "Fur Trappers" appears the abbreviation "Corp." In certain of said advertising matter respondents have caused to be displayed a large seal or emblem simulating the Royal Coat of Arms of Great Britain, on which is printed in large and conspicuous letters the word "Canadian" under which the words "Fur Trappers" appear in smaller but conspicuous letters and below the words "Fur Trappers," in wry fine print, is the word "Corp." In its r1newspaper ach·ertisements respondents have caused certain of theit· fur products to be represented as "Hudson Seal," "l\femloza Beaver,'' "Beaverette," and "American Broadtail." "Hudson Seal" is the trade name for-dyed muskrat, and ".Mendoza Beaver" and "Beawrette'' are trade names for dyed coney or rabbit. "American Broadtail'' is a. trade name for processed lamb. Said trarle names purpott to he descripti,·e of respontlents fur pro<luds and, wlless mo(lifie(l by the usb CANADIAN FUR TRAPPERS CORP. ET AL. 869 s:m I•'inuings of the true name of the fur, such as "Hudson Seal-Dyed Muskrat," ''Mendoza Beaver-Dyed Coney," "Beaverette-Dyed Coney," or "American Broadtail-Processed Lamb," serve as representations that said garments are made from the peltries of seal, beawr or of the peltries of baby lambs of the Karakul breed of sheep, respectively. PAR. 5. The respondent, Canadian Fur Trappers Corporation, is not a Canadian corporation, nor does it have any connection or asso- .c.iation with any organization, group, or interest composed of or representing Canadian fur trappers or trappers of fur-bearing animals. Said respondent company is in fact an American corporation, wholly American owned, controlled, and operated. Respondent does not trap and is not engaged in the business of trapping or otherwise taking or capturing, fur-bearing animals. While many of the fur products offered for sale and sold by respondents are not made or manufactured from peltries of fur-bearing animals shot, killed, trapped, or otherwise caught or taken in Canada, a substantial percentage of the furs and fur garments sold by respondents, that is to say, from 25 to 25 percent thereof, are made from peltries of fur-bearing animals .<.hot, killed, trapped, or otherwise caught or taken in Canada. Respondents are, in fact, retail merchants offering for sale and selling to the public furs and fur products made or manufactured for them by others.

PAR. 6. The fur products offered for sale and sold by respondents, bearing the desilrJlations "Hudson Senl" is made from the peltries of muskrats, and "Mendoza Beaver" and "Beaverette" are made from the peltries of rabbits, so dressed and dyed as to resemble the fur products made from the pelt.ries of seal and beaver respectively. The fur products offered for sale and sold by respondents bearing the designation "American Broadtail" are made from the peltries of lambs other than baby lambs of the Karakul breed of sheep and are so dressed and dyed as to resemble the peltrit>s of baby lnmbs of the Karakul breed of sheep.

PAR. 7. Fur products made from the peltries of seal are properly nnd commonly designated as "Seal" or "Alaska Sealskin." Fur prodlids made from the peltries of beaver are properly and commonly designated as "Beaver," and fur products made from the peltries of baby lambs of the Karakul breed of sheep are properly and commonly <lesignated as "Broadtail." Fur products made from the peltries of seal are superior to fur products made from the peltries of muskrat :md are so recognizt>d by the purchasing public. Fur prmlucts made fr-om the peltries of bean•r art> supt>rior to fur products made from the peltries of rnbbits and are so rl'cognizt>d by the public. Fur prod.- 1lcts made from the peltries of bahy lambs of the Karakul brt>Pd of Findings 31 F. T. C. sheep are superior to fur products made from the peltries of baby lambs of other breeds of sheep, and this fact is recog11ized by the purchasing public.

PAR. 8. There has been and is a preference on the part of a substantial portion of the purchasing public for dealing direct with the manufacturer or producers of the merchandi~e which it bnys and there has been and is a widespread belief among purchasers and prospective purchasers of fur products that the fur of animals in Canada and in other northern countries and parts of the world is superior to that of animals living in milder or more temperate climates. PAR. 9. There are now and ha\e been competitors of re~pondents selling and distributing fur products in commerce among and between the various States of the United States and in the District of Columbia. who do not in any manner misrepresent their status or the nature or character of their business or the geographic origin of their products and who do not represent that they are tmppers or manufacturing furriers when such is not the fact, and who do not misrepresent in any manner the nature, character or quality of the products sol1l or offered for sale by them.

PAR. 10. The use by the respondents in their corporate and trade name of the words "Canadian Fur Trappers Corporation" hnd, and has, the capacity and tendency to, and did and does. deceive and mislead prospectiye purchasers and purchasers of their furs tllll fur products into the belief that the Canadian Fur Trappers Corporation is a Canadian corporation, owned, controlled, nnd operated by Canadian fur trappers, and that the protlucts offeretl for sale and sold by respondents are furs and fur pt·oJ.ucts which they hn,·e made or manufactured from the peltries of animals actually shot, killed, trapped, or otherwise caught or taken by tlwm in Canada and are offered for sale and sold to the public by them without the interwntion of any middleman.

The use by respondents of the emblem, seal or coat of arms simulating the Royal Coat of Arms of Great Britain~ on which the words ''Canadian Fur Trappers Corporation" appear, had, and has, the cnpncity and tendency to, and did and does, deceh·e and mislead prospectire purchasers and purehasers of their fur products into the erroneous belief that respondents are an organization or association of trappers of fur-bearing animals in Canada; that they are engaged in the business of dealing primarily in furs and fur products pro(luced in Canada; that they are trappers of fur-bearing :mimals; that they actually shoot, kill, trap, or otherwise catch or take such fur-bearing animals in Canada; that the furs and fur products offered for sale and sold by them are furs and fur pro<lucts made or manufaehn·Nl CANADIAN FFR TRAPPERS CORP. ET AL. 871 ( )J"l)t'L"

by them from the peltries of animals so shot, killed, trnppell, or otherwise caught or taken by them.

Hespondents' acts and practices in representing and df:'scribing their furs and fur products manufactured of muskrat as "Hudson Seal," rabbit peltries as "Mendoza Beaver" and ''lleaverette," and peltries of ordinary lambs or sheep as "American Broadtail," have had, and now have the capacity and tendency to, and do, mislead and decei\"e purchasers and prospectiye purchasers of such furs and fur products into the erroneous nnd mistaken belief that said furs and fur products are actually made from the peltries of seal in the case of "Hudson Seal," beaver in the case of ":Mendoza Beaver" and "Beaverette," and haby hunb of the Karakul breed of s}wep in the case of "Americ~'ln Broadtail."

PAR. 11. On account of such mistaken nud erroneous beliefs engemlered as hereinabon set forth, a substantial portion of the purdmsing public has been induced to purchase fm·s and fur pro<lncts from. the respondents, and thereby trade has been unfairly diverted to respondents from competitors who truthfully repre!'ient the quality nml ehnraeter of their prodnets, the !:;Olll"ce of their prmlucts, and the Jwtme of their lmsinf'ss. In consequence thereof, injury has been dmw, awl now is being done, by respondents to competition in commerce. among and between the various States of the Unitf'd States mHl in the District of Columbia.

CONCLtJSTON The afore!'in ill nets and practices of respondents, as lwrein found, nre all to the prejudice of the public and of respondents' competitors and constitute unfair methods of competition in comme>rce within the inte:>nt ancl nwaning oft he Federal Trade Commission Act. ORDF:H TO CE.\~E AXD DESIST This proceeding having been henr<l by the Federal Trade Commission upon the romplnint of the Commission, the answer of respondents, testimony aml other evidence in support of the nlle>gntions of said complaint and in opposition the:>reto, taken before duly designated examiners of the Commission brief:>fs filed herein, and oral argument by ,Joseph C. Fehr, counsel for the Commission, and by Harry S. Hall, counsel for respondents, and the Commission having made its findings as to the facts and its conclusion that said respondents haw. violated the provisions of the Federal Trade Commission Act. It i.Y ordered, That the respondent~ Cunadian Fur Trappers Corporution, a corporation, its officers, rf'presentntivE>s, agents, nnd employees. 2116:-il(l'"-41 Yo!. 31-::;8 .872 FEDERAL TRADE CO.MMISSlON DECISIONS Oruet· 31F. 'I'. C.

directly or through any corporate or other device, and Jacob Dornfeld and Morris Dornfeld, individually and as officers of said corporation, and their respective agents, representatives or employees, individual or corporate, in connection with the offering for sale, sale, and distribution of furs and fur garments, in commerce as commerce is defined in in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Using the word "trappers" or the words "fur trappers," either in- • dependently or in connection or conjunction with any other word or words, as descriptive of their said business. 2. Using a pictorial design simulating the Royal Coat of Arms of Great Dritian, or any emblem or seal suggesting or implying that the business of respondents is conducted by an organization or association formed in Canada or composed of inhabitants of Canada or any other part of the British Empire.

3. Describing furs in any other way than by the use of the correct name of the fur as the last word of the description thereof; and when any dye or blend is used in simulating another fur, the true name of the fur appearing a~ the last line of the description shall be immediately preceded by the word "dyed" or "blended," compounded with the name of the simulated fur, as: Seal-Dyed Coney; Hudson Seal- Dyed Muskrat; Mendoza Beaver-Dyed Coney; Beaverette-Dyed Coney; and American Broadtail-Processed Lamb. It i,'j further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order; and It is furth.er ordered, That complaint hereby be and the same hereby :Js, dismissed as to the respondent Daniel Dornfeld. EMPIRE STYLE DESIGNERS LEAGL"E, INC., ET AL. 873 Syllabus