A. & N. trading Co.,' Inc

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

IN THE 11ATTER OF THE A. & N. TRADING CO., INC., TRADING AS A. & N. TRADING COMPANY, A & N TRADING COl\IPANY, INC., . ~ AND SPORT CENTER COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT APPROVED SEPT. 26, 1914, AND THE WOOL PRODUCTS LABELING ACT OF 1939 APPROVED OCT. 14, 1940 Docket 4932. Complaint, Mar. 18, 19/f<'J-Decision, Apr. 17, 1944 Neither the intent of a respondent in violating the Wool Products Labeling· Act of 1939, nor its knowledge that it was violating such act, are material to proceedings thereunder before the Commission, and in the instant case, in which the respondent made such allegations in its answer, the Commission is without knowledge in said respect and makes no findings with regard thereto. Where a corporation, engaged in the operation of retail stores in Washington, D. C., and in the offer and sale to the general public therein, of clothing and other merchandise, including many articles subject to the Wool Products Labeling Act of 1939, such as shirts, sweaters, trousers, caps, underwear and blankets,- Sod and distributed such articles in commerce, mishranded in violation of said act and the rules and regulations promulgated thereunder, in that when introduced therein they did not have on or affixed thereto a stamp, tag, label or other means of identification as therby provided, showing the percent~ge of the total fiber weight, of wool, reprocessed wool, reused wool, non-wool fiber, ·and non-fibrous filling or adulterating matter, and proper identification of the manufacturer or reseller, etc., subject to provisions of act: . Held, That aforesaid acts, practices and methods of respondent, under the circumstances set forth, were in violations of the act and said Rules and Regulations, and were all to the prejudice and injury of the public, and constituted unfair and deceptive acts and practices in commerce.

Mr. Dewitt T. Puckett for the Commission.

Mr. Philip Goldstein, of Washington, D. C., for respondents. COMPLAINT 1 Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939 and by virtue of the authority vested in it by said acts, the Federal Trade Commission, having reason ~o believe that Army and Navy Trading Company, a corporation, trad- Ing as A & N Trading Company, A & N Trading Company, Inc., and Sport Center, hereinafter referred to as respondent, has violated the pro- 1 Ily order dated Nov. 6, 1043 the complaint wae amended, as respects respondent'• corporate name, ao follows:

This matter coming on to be heard by Federal Trade Commission upon the motion of counsel for the Commiesion to amend the complaint in this case by substituting the name "A & N Trading Company, Inc." for the na.me ''Army and Navy Trading Company, 11 and it appearing that respondent does notresist enid motion, and the Commission having duly considered the said motion and the record herein and being now fully advised in the premieee.

It is ordered that the complaint herein be, and the eame hereby ie, amended by eubstituting the name "A & N Trading Company, I no." for the name "Army and Navy Trading Company.'' Findings 38F. T. C.

visions of the said acts and the rules and regulations promulgated under the Wool Products Labeling Act of 1939, 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, Army and Navy Trading Company, a corporation, trading as A & N Trading Company, A-& N Trading Company, Inc., and Sport Center, is a corporation organized; existing and doing business under and by virtue of the laws of the State of Maryland and has its principal office and place of business at 8th and D Streets, N. W., Washington, D. C.

PAR. 2. Respondent is now, and for several years last past has been, engaged in the business of operating retail stores in Washington, D. C..,' and is offering for sale and selling to the general public in the District of Columbia various articles of clothing and other merchandise. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in commerce in the District of Columbia. PAR. 3. Among the articles sold by respondent since July 15, 1941, are many which are wool products within the intent and meaning of the Wool Products Labeling Act of 1939, in that such articles which include shirts, sweaters, trousers, caps, underwear and blankets are composed in whole or in part of wool, reprocessed wool or reused wool as those terms are defined in said act.

Many of these said wool products sold and distributed by respondent in said commerce as aforesaid were misbranded in violation of the Wool Products Labeling Act of 1939 and the rules and regulations promulgated under such act in that said wool products, when introduced in said commerce, did not have on or affixed thereto a stamp, tag, label or other means of identification or a substitute in lieu thereof as provided by said act, showing (a) the percentage of the total fiber weight of the wool product, exclusive of ornamentation not exceeding 5 percentum of said total fiber weight, of (1) wool, (2) reprocessed wool, (3) r~used wool, (4) each fiber other than wool where said percentage by weight of such fiber was 5 percentum or more, and (5) the aggregate of all other fibers; (b) the maximum percentage of the total weight of the wool product of non-fibrous loading, filling, or adulterating matter; (c) the name of the· manufacturer of the wool product, or, in lieu thereof; a registered number with name of a reseller under the conditions provided in the rules and regulations promulgated under such act, or the name of one or more persons subject to section 3 of the said act with respect to such wool product. · PAR. 4. The aforesaid acts, practices and methods of 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 ORDER Pursuant to the provisions of the Federai Trade Commission Act, and the Wool Products Labeling Act of 1939, the Federal Trade Commission, on the 18th day,of March, 1943, issued and subsequently served its complaint in this proceeding upon respondent, The A. & N. Trading Co., Inc., a corporation, trading as A. & N. Trading Company, A & N Trading Company, Inc., and Sport Center, charging it with the use of unfair and A. & N. TRADING CO. INC., ETC. 269 267 Findings deceptive acts and practices in commerce in violation of the provisions of said acts and the rules and regulations promulgated under the Wool Products Labeling Act of 1939. Subsequently the respondent filed its answer, and on November 17, 1943, the Commission, by order entered herein, granted respondent's request for permission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving all intervening . procedure and further hearing as to said facts. Thereafter a stipulation as to certain facts regarding the correc~corporate name of the respondent was entered into by and between Richard P. Whiteley, Assistant Chief Counsel for the Commission, and counsel for the respondent, and made a part of the record herein. · Thereafter, this proceeding regularly came on for final hearing before the Commission on the said complaint, the substitute answer and said stipulation as to the facts, 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, The A. & N. Trading Co., Inc., a corporation, trading as A. & N. Trading Company, A & N Trading Company, Inc., and Sport Center, is a corporation organized, existing and doing business under and by virtue of the laws of the State of Maryland and has its principal office and place of business at 8th and D Streets, N. W., Washington, D. C.

PAR. 2. Respondent is now, and for several years last past has been, engaged in the business of operating retail stores in Washington, D. C., and is offering for sale and selling to the general public in the District of Columbia various articles of clothing and other merchandise. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in commerce in the District of Columbia. PAR. 3. The complaint in this proceeding alleged that the corporate name of the respondent was Army and Navy Trading Company. The respondent's answer alleged that the correct name of the respondent was A & N Trading Company, Inc., and on November 6, 1943, the Commission, by order duly entered herein, amended the complaint to correct the name of the respondent. A stipulation as to the facts with regard to the correct name of the respondent was entered into between counsel for the Commission and respondent and made a part of the records, and shows the correct name of respondent to be "The A. & N. Trading Co., Inc." and the Commission so finds.

PAR. 4. Among the articles sold by respondent since July 15, 1941, are many which are wool products within the intent and meaning of the Wool Products Labeling Act of 1939, in that such articles, which include shirts, sweaters, trousers, caps, underwear and blankets, are composed in whole or in part of wool, reprocessed wool or reused wool as those terms are defined in said act. ' Many of these said wool products sold and distributed by respondent in said commerce as aforesaid were misbranded in violation of the Wool Products Labeling Act of 1939 and the rules and regulations promulgated under such act in that said wool products, when introduced into said Order 38 F. T. C. ' commerce, did not have on or affixed thereto a stamp, ta.g, label or other means of identification or a substitute in lieu thereof as provided by said act, showing (a) the percentage of the total fiber weight of the wool product, exclusive of ornamentation not exceeding 5 percentum of said total fiber weight, of (1) wool, (2) reprocessed wool, (3) reused wool, ( 4) each fiber other than wool where said percentage by weight of such fiber was 5 percentum or more, and (5) the aggregate of all other fibers; (b) the maximum percentage of the total weight of the wool product of non-fibrous loading, filling, or ac~ulterating matter; (c). the name of the manufacturer of the wool product, or, in lieu thereof, a registered number \-with name of a reseller under the conditions provided in the rules and regulations promulgated under such act, or the name of one or more persons subject to Section 3 of the said act with respect to such wool product.

PAR. 5. Respondent's answer contains a paragraph which states in substance that any violation of the Wool Products Labeling Act of 1939 was committed without any intent to do so or knowledge. thereof by the respondent. Neither the intent of the respondent in violating the act nor its knowledge that it was violating the act are material to proceedings under the Wool Products Labeling Act of 1939 before the Commission, and the Commission is without knowledge in these respects and makes r::.o finding with regard thereto.

The aforesaid acts, practices and methods of respondent as herein found were and are in violation of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder and 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, and the Wool Products Labeling Act of 1939.

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the amended complaint of the Commission and the answer ·of respondent, in which answer respondent admits all the material allegations of fact set forth in said amended complaint 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 its conclusion that said respondent has violated the provisions of the Federal Trade Commission Act, and the provisions of the Wool Products Labeling Act of 1939.

It is ordered, That the respondent, The A. & N. Trading Co., Inc., a corporation, trading as A. & N. Trading Company, A & N Trading Company, Inc., and Sport Center, or trading under any other name, its officers, representatives, agents and employees, directly or through any corporate or other device, in connection with the sale or offering for sale in commerce as "commerce" is defined in the aforesaid acts, do forthwith cease and desist from misbranding shirts, sweaters, trousers, caps, underwear and blankets, or other "wool products," as defined in, and subject to, the Wool Products. Labeling Act of 1939, which contain, purport to contain or in anJ way are represented as containing "wool," "reprocessed wool" or "reused wool" as those tcrrris arc defined in said act, by failing to securely affix to or place on such products a stamp, tag, label or other means of identification showing in a clear and conspicuous manner: A. & N. TRADING CO. INC., ETC. 271 267 Order (a) The percentage of the total fiber weight of such wool product, exclusive of ornamentation not exceeding five percentum of said total fiber weight of (1) wool, (2) reprocessed wool, (3) reused wool, (4) each fiber other than wool where said percentage by weight of such fiber is five percentum or more, and (5) the aggregate of all other fibers. (b) The maximum percentage of the total weight of such wool products of any non-fibrous loading, filling or adulterating matter. (c) The name of the manufacturer of such wool product; or the manufacturer's registered identification number and the name of a seller of such wool product; or the name of one or more persons introducing such wool product into commerce, or engaged in the sale, transportation, or distribution thereof in commerce, as "commerce" is defined in the Federal Trade Commission Act and the \Vool Products Labeling Act of 1939.

Provided, That the foregoing provisions concerning misbranding shall not be construed to prohibit acts permitted by Paragraphs (a) and (b) of Section 3 of the Wool Products Labeling Act of 1939; and provided, further, that nothing contained in this order shall be construed as limiting any applicable provisions of said act or the rules and regulations promulgated thereunder. . . It is further ordered, That the respondent shall, within 60 days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order. · Complaint 38 F. T. C.