Princess Ann Girl Coat, Inc.

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IN THE MA'I PRINCESS ANN GIRL COAT, INC., ET AL. COMPLAINT, FINDIKGS, AKD ORDERS IN REGARD TO Tile ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914, A D A ACT OF CONGRESS APPROVED OCT. 14, 1940 Docket 58"17. Complaint, May 1951-Decision, Sept. 21, 1951 The use of different labels on the same product, subject to the Wool Products Labeling Act, which show conflcting fiber content information, such as a label on one place of a garment sbo\ving the content as "100 percent reprocessed wool " and another showing it as "100 percent wool " constitute false and deceptive labeling of such products in violation of said act and the rules and regulations promulgated thereunder, since the product cannot be composed entirely of reprocessed wool and wool at one and the same time. Where a corporation and its tn-a offcers, engaged in the manufacture and introduction into commerce, and in the sale and distribution therein in commerce of wool products as defined in the Wool Products Labeling Act- (a) Misbranded certain of said products within the intent and meaning of said act and the rules and regulations promulgated thereunder in that they placed thereon conflicting fiber content information, such as labeling the garment at one place as "100 percent reprocessed wool " and at another place as "100 percent wool;" with effect of confusing the purchasing public as to the fiber content of said products; and (b) Further misbranded certain of said products in that the constituent fibers and the percentages thereof, as well as the name of the manufacturer or its registered identification number, were not set out on the labels attached thereto in the manner and form required by said rules and regulations: Held That such acts and practices, under the circumstances set forth were in violation of said act and the rules and regulations promulgated thereunder, were to the prejudice and injury of the public and constituted unfair and deceptive acts and practices in commerce.

Before Mr. Earl J. K olb trial examiner. Mr. B. G. Wilson and Mr. Oarlo J. Aimone for the Commission. Mr. Frederick Silver of ew York City, for respondents. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the ,Vaal Products Labeling Act of 1939, and by virtue of the authority vested in it by said acts, the Federal Trade Commission having reason to believe that Princess Ann Girl Coat, Inc., a corporation, Jack Horowitz and Seymour ., asscrman, individually and as offcers of said corporation, have violated the provisions of said acts and rules and regllJations promulgated under the Wool Products 326 FEDERAL TRADE CO:\MISSION DECISIONS Complaint 48 F. T. C. Labeling Act of 1030 and it appearing to the Commission that a pro- "ceding 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, Princess Ann Girl Coat, Inc., is a corporation organized and existing under and by virtue of the Ia ws of the State of New Yark; respondent Jack Horowitz is its president and Seymour 'Vasserman is its secretary- treasurer. The individual respondents formulate, direct, and control the policies, acts, and practices of the corporate respondent. The offce and principal place of business of both corporate respondent and individual respondents is located at 225 West Thirty-sixth Street, N. Y. PAR. 2. Subsequent to January 1, lD49, respondents manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment, and offered for sale, in commerce as "commerce" is defined in the Wool Products Labeling Act, wool products, as "wool products" are defined therein. PAR. 3. Certain of said wool products were misbranded within the intent and meaning of the said act and the rules and regulations promulgated therennder in that they were falsely and deceptively labeled with respect to the character and amount of their constituent fibers. Certain of said wool products -were misbranded in that they were falsely and deceptively labeled by respondents by placing on said products labels showing conflicting fiber content information. Typical of such practice is the placing of a label on garments at one place showing the content as "100 percent reprocessed wool" and another Jabel on the same product showing the content as "100 percent "wool." The use on said products of such conflicting labels has the capacity and tendency to confuse and deceive and does confuse and deceive the purchasing public as to the fiber content of said products and is in violation of the 'Vaal Products Labeling Act and the rules and regulations promulgated thereunder.

Certain of saiel wool products were further misbranded in that the constituent fibers and the percentages thereof, as well as the name of the manufacturer or its registered identification number as required by said act and the rules and regulations thereunder '''ere not set out on labels attached to such products, in the manner and form as required by the said ru1cs and regulations.

PAR. 4. The acts and practices of respondents, as herein alleged were in violation of the 'Vaal Products Labeling Act of 1030 and the rules and regulations promulgated thereunder and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. PRINCESS A1\TN GIRL COAT, INC. , ET AL. 327 325 Findings DECISION OF THE COMMISSIO Pursuant to rule XXII of the Commission s rules of practice, and as set forth in the Commission s "Dccision of the Commission and Order to File Report of Compliance " dated September 21, 1D51 , the initial decision in the instant matter of trial examiner Earl J. Kolb, as set out as follows, became on that date the dec.ision of the Commission. rNITL\L DECISION BY EARL J. Kale, TlUAL EXA IIXER Pursuant to the provisions of the Federal Trade Commission Act and the 'Wool Products Labeling Act of 1D3D, and by virtue of the authority vested in it by said acts, the Federal Trade Commission on May 3, ID51, issued and subsequently served its complaint in this proceeding upon the respondents Princess Ann Girl Coat, Inc., a corporation, and Jade Horowitz and Seymour ,Vasscrman, individually and as offcers of said corporation, charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of those acts. After the service of said complaint upon said respondents, a stipulation as to thc facts was entered into whereby it was stipulated and agreed that a statement of facts executed by counsel supporting the complaint and counsel for respondents might be taken as the facts in this proceeding and iulieu of evidence in support of and in opposition to the charges stated in the complaint and that such statement of facts might serve as the basis for findings as to the facts and conclusion based thereon and an order disposing of the proceeding \vithout presentation of proposed findings and conclusions or oral argument. The stipulation further provided that upon appeal to or review by the Commission such stipulation might be set aside by the Commission and this matter remanded for further proceedings under the complaint. Thereafter, the proceeding re,gularly came on for final consideration by the above-named trial examiner, theretofore duly designated by the Commission, upon the complaint and stipulation as to the facts, said stipulation having been approved by 3aid trial examiner, who, after duly considering the record herein, finds that this proceeding is in the interest of the public and makes the following findings as to the fac.ts, c.onclllsion drawn therefrolll and ordcr: rIXDINGS AS TO THE FACTS P AHA GRAPH 1. Respondent Princess Ann Girl Coat Inc., is a. corporation organized and existing under and by virtue of the laws of the State of New York; respondent J aeI\ Horowitz is its president and 1'e-Seymour "\Vasserman is its secretary-treasurer. The individual Conclusion 48 F. T. C.

spondents rormulate, direct and control the policies, acts and practices or the corporate respondent. The offce and principal place or business or both corporate respondent and individual respondents is located at 225 W. Thirty-sixth Street, N ew York, N. Y. PAR. 2. Subsequent to January 1, 1949, respondents manuractured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered ror shipment, and offered ror sale, in commerce, as "commerce" is defined in the V\T 001 Products Labeling Act, wool products, as "wool products" are defined therein. PAR. 3. Certain or said wool products were misbranded within the intent and meaning or the said act and the rules and regulations promulgated therClUlder in that they were mislabeled by respondents by placing on said products labels showing conflicting fiber content information. Typical of such practice is the placing of a label on garments at one place showing the content as " 100 percent reprocessed wool" and another label on the same product showing the content as 100 percent wool." The use on said products of such conflicting labels has the capacity and tendency to eonruse and does conruse the purchasing public as to the fiber content or said products. As said products cannot be composed entirely or reprocessed wool and composed entirely of wool at one and the same. time, the use or conflicting labels designating said products as being "100 percent reprocessed wool" and 100 percent wool' constitutes false and deceptive labeling or such products in violation or the Wool Products Labeling Act and the rules and regulations promulgated thereunder. Certain or said wool products were rurther misbranded in that the constituent fibers and the percentages thereor, as well as the name or the manufacturer or its registered identification number as required by said act and the rules and regulations thereunder, were not set out on labels attached to such products in the manner and rorm required by the said rules and regulations.

CONCLUSION The acts and practices or the respondents in the manuraeture ror introduction into commerce and in the sale, transportation and distribution in commerce of wool products which were misbranded, as herein round, were in violation or the provisions or the VV 001 Products Labeling Act or 1939 and the rules and regulations promulgated thereunder and were to the prejudice and injury or the public and constituted unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. PRINCESS AI' GIRL COAT INC., ET AL. 329 325 Order ORDER It is ordered That the respondents Princess Ann Girl Coat, Inc., a corporation, and its offcers, and Jack Horowitz and Seymour 'Vasserman, individually and as offcers of said corporation, and their respective representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction into COlnmerce or the offering for sale, sale, or distribution in commerce, as commerce" is defined in the aforesaid acts, of wool products, as .:mch products are defined in and subject to the 'Vaal Products Labeling Act of 1939, which products contain, purport to contain or in any w"'y are represented as containing "wool reprocessed wool " or "reused wool " as those terms are defined in said act, do forthwith cease and desist from misbranding such products:

1. By affing or attaching to said products labels describing fiber content, one or more of which do not clearly state the correct constituent fibers, as required by the Wool Products Labeling Act. 2. By failing to affx securely to or place on such products a stamp, tag, label, or other means of identification showing in a clear and con- Spicuous manner:

(a) The percentage of the total fiber weight of such wool product exclusive of ornamentation not exceeding 5 percent 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 5 percent or more, and (5) the aggregate of all other fibers. (b) The name or the registered identification number of the manufacturer of such wool product one or more persons engaged in introducing such wool product into commerce, or in offering for sale, sale tra.nsportation, or distribution thereof in commerce, as "commerce is defined in the Federal Trade Commission Act and in the IV 001 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 regnlations promulgated thereunder.

ORDER TO FILE REPORT OF COMPLIANCE It i8 O1dered That the respondents herein shan, within sixty (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 the order to cease and desist (as required by said declaratory decision and order of September 21, 1951). &;

Complaint 48F. T. C.