Lasher'S Silk Manufacturikg Co., Inc

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IN THE MATTER OF LASHER'S SILK MANUFACTURING COl\IP ANY, INC. COMPL.\.INT, FINDINGS, AND ORDER IN RF.GARD TO THE .ALLEGED VIOLATIO~ OF SEC. :5 OF AN ACT OF CONGRESS A.APPROVED SEPT. 20, 1914 Doclcet 1,612. Complaint, Oct. 9, 1941-Dccision, June 23, 1!J.j2 Where a corporation engaged in the manufacture and Interstate sale and distribution of ribbon seam binding material and other products- Offered and sold its ribbon seam binding wound on spools, cardboard rolls or carus upon which was imprlntPd, in conspicuous trpe and plainly visible to purchasers, along with said corporation's brand name and other descriptive matter, the legend "100 yds."; when in fact, due to shrinkage in dyeing, said spools or cards contained less than said amount; With result of placing in the· hands of dealers purchasing its products for resale a means whereby tlwy were enabled to mislead and deceive the purchasing public, and of misleading and deceiving a substantial portion of such dealers into the false belief that said spools, cardboard rolls and carus contained said quantity, and of that·eby inducing their purchase ot substantial quantities of its said product; to their loss and injm·y and that of the purchasing public :

Held, That such acts and practices, un<ler the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair and deceptive acts and pmctiees in commerce.

Defore Mr. O{;yde Jrf. Jladley, trial examiner. Mr. B. G. lVilson for the Commis~ion.

Mr. George J. Beldock, of New York City1 for resl)Onclent. Complaint ' Pursuant to the provisions of the Federal Trade Commission Act, nnd by virtue of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that Lasher's Silk Manufacturing Co., Inc., a corporation, hereinafter referred to as respondent, has 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, Lasher's Silk Manufacturing Co., Inc., is a corporation, organized, existing, and doing business under and by virtue of the I a ws of the State of New York, with its office and principal place of business located at 545 Eighth Avenue, in the city of New York, State of New York, and a manufacturing plant in the city of Bethlehem, State of Pennsylvania.

LASHER's SILK l\IA~lJFACTURING CO., INC. 1-179 1478 Comvlaint PAn. 2. The respondent is now, and for more than 2 years last past has been, engaged in the manufacture, at its plant in Bethlehem, Pa., of ribbon seam binding material and other products, and in the sale and distribution thereof in commerce between and among the various States of the United States and in the District of Columbia. Respondent causes its said products, when sold, to be shipped from said place of business in Pennsylvania to jobbers and other purchasers thereof located in various other States of the United States and in the District of Columbia.

Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said products in commerce between and among the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of its said business, as aforesaid, the respondent has offered for sale and sold, and now offers for sale and sells, its said ribbon seam binding under its brand name "Lasher's," Wound or rolled on spools, cardboard rolls or cards. Imprinted and labeled on the visible surface of said spools, cardboard rolls, or cards, among other printed statements, in conspicuous type and visible to the £>ye of jobbers and other members of the purchasing public, appear the following statements:

. SEAM BINDING 100 YARDS RAYON AND SILK SEAM BINDING 100 Yl\.TIDS The foregoing statements and representations are false, misleading, and deceptive in that the said spools, cardboard rolls, or cards did not, and do not, contain 100 yards of ribbon seam binding. In truth and in fact, the said spools, cardboard rolls, or card contain substantially less than 100 yards of ribbon seam binding to the container.

PAR. 4. The acts and practices of the respondent place in the hands of the dealers purchasing for resale a means or instrumentality Whereby such dealers are enabled to mislead and deceive the purchasing public.

PAR. 5. The aforesaid acts and practices of the respondent have , had,, and now have, the capacity and tendency to, and do mislead and deceive a substantial portion of purchasers and prospective pur- ~hasers into the erroneous and mistaken belief that sad spools, cardoard rolls, or cards contain 100 yards of ribbon seam binding and cause jobbers and other members of the purchasing public, because 1480 FEDERAL TRADE COMMISSION DECISIOKS Findings 34 F. T. C. of such erroneous and mistaken belief, to purchase substantial quantities of respondent's products, to their injury and to the injury of the public.

PAR. 6. The aforesaid acts and practices of the respondent, as herein alleged, are all to the prejudice and injury of the public and constitute unfair and deceptive acts· and practices in commerce within the intent and meaning of the Federal Trade Commission Act. REPORT, FINDINGS AS TO THE FACTs, AND Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on the 9th day of October A. D. 1941, issued and subsequently served its complaint in this proceeding upon the respondent, Lasher's Silk Manufacturing Co., Inc., a corporation, charging it with unfair and deceptive acts and practices in com· merce in violation of the provision~ of said act. After the issuance of the complaint, testimony, and other evidence in support of the allegations of the complaint were introduced by the attorney for the Commission, and evidence in opposition to the allegations of the. complaint was introduced by the attorney for the respondent, before a duly appointed trial examiner 'of the Commission designated by it to serve in this proceeding, and a stipulation . of facts was entered into on the record by the attorney for the Commission and the attorney for the respondent. The testimony and other evidence and the stipulation of facts were duly recorded and filed in the office of the Commission. The attorney for respondent waived the filing of the trial examiner's report, filing of briefs and oral argument.

Thereafter, the proceeding came on for final hearing before the Commission, upon the complaint, the testimony and other evidence, and the stipulation as to the facts. And the Commission, havii1g duly considered the matter and being now fully advised in the pren1· ises, finds that this proc~eding 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. The respondent, Lusher's Silk l\Ianufacturing Co., 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 545 Eighth Avenue, in the city and State of New York, and having a manufacturing plant in the city of Bethlehem, Pa.

LASHER'S SILK MANUFACTURING CO .• INC. 14_81 1478 Order PAn. 2. The respondent, for more than 2 years last past has been, and now is, engaged in the manufacture, in its plant at Dethlehem, Pa., of ribbon seam binding material and other products, and in the ~ale and distribution thereof in commerce between and among var- Ious States of the United States and in the District of Columbia. The respondent maintains, and at all times mentioned herein has maintained, a course of trade in said product in commerce between and among various States of the United States and in the District of Columbia.

PAn. 3. In the course and conduct of its business as aforesaid, respondent has offered for sale and sold its ribbon seam binding, wound or rolled on spools, cardboard rolls, or cards, under its brand name, ''Lasher's." Among other statements imprinted and labeled on the \'isible surface o£ such spools, cardboard rolls or cards, in conspicuous type and plainly visible to purchasers, are the following: Seam Binding 100 yards Rayon and silk; Seam Dindlflg 100 yards.

. The foregoing statements are misleading in that, due to shrinkage ln dyeing, the spools, cardboard rolls, or cards did not and do not contain 100 yards of ribbon seam binding, eac?, but contain less than loo yards.

PAn. 4. The acts and practices of the respondent place in the hands 0.f dealers purchasing its product for resale, means and instrumentalities whereby they are enabled to mislead and dece-ive the purchasing Public.

PAn. 5. The aforesaid nets and practices of·the respondent had and have the capacity and tendency to and do mislead and deceive a substantial portion o£ the purchasing public into the false and erroneous h.elief that such,spools, cardboard rolls, or cards contain 100 yards of ribbon seam binding; and have induced the purchase by such dealers, because of such belief, of substantial quantities of respondent's prod- Uct, to the loss and injury of such dealers and the purchasing public. CONCLUSION The aforesaid acts and practices of the respondent, as herein found, are all to the prejudice and injury of the public and constitute unfair and deceptive acts and practices in commerce within the intent and llleaning of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST . This proceeding having been heard by the Federal Trade Commis- Ston upon the complaint of the Commission testimony and other evi- 1482 FEI'ERAL TRADE COMMISSION DECISIOXS Order 34 F. T. C.

dence in support of the allegations of the complaint introduced by the attorney for the Commission, and evidence in opposition to the allegations of the complaint introduced by the attorney for the respondent, before a duly appointed trial examiner of the Commission designated by it to serve in this proceeding, and a stipulation of facts entered into on the record by the attorneys for the Commission anJ for the respondent-the filing of the trial examiner's report, briefs, oral argument, and all intervening procedure being waived, and it being agreed between the attorneys for the Commission and for the respondent that the Commission may make its findings as to the facts and its conclusion based thereon, and issue its order disposing of tho proceeding: And the Commission having made its findings as to the facts and its conclusion that respondent has violated the provisions of the Federal Trade Commission Act:

It is ordered, That the respondent, Lasher's Silk Manufacturing Co., Inc., a corporation, its officers, representatives, directors, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of it3 product, ribbon seam binding material, whether sold under the brand name "Lasher's" or under any other name, in commerce as "commerce" is defined in the Federal Trade Commission Act, do forthwith. cease and desist from Representing, directly or indirectly, that the number of yards or quantity of ribbon seam binding wound, contained or rolled on spools, cardboard rolls, or cards, or on any container in which said product is offered for sale or sold, is greater than the number of yards or quantity of such product actually contained thereon. It is further ordered, That the respondent shall, within 60 days after the service upon it of this order, file with the Commission B report in writing, setting forth in detail the manner and form in which it has complied with this order.

H & H HAT CO. 1483 Complaint