Raycrest Mills, Inc.

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IN THE !\ATTER OF RAYCREST MILLS, INC.

JPLAIKT, FINDI:\GS, .\KD ORDER 11' lmGA-RD ' 1'0 THE ALLEGED YIOLATJOX OF SEC. 5 OF AX OF COXGHESS -\PPIWYED SEPT. IDH , AXD OF A:N ACT OF CO).' CRESS APPROVED OCT. 14 , 1 !HOACT Docket 5884. Complaint, Dec. lfi 1950-Decision, Nov. , 19. Where a corporation engaged in the manufacture of men s suiting materials ladies' dress goaus and similar fabrics which were sold and distributed in commerce and were wool products as defined in the Wool Products Labeling Act- Misbranded fabrics composed of SO percent rayon awl 20 percent wool within the intent and meaning of said Act and the rules and regulations pJ'omulgated thereunder, in that they did not have on or affxed thereto a stamp; tag, label 01' other means of identifcation sbowing their constituent fibers and tbe percentages tbereof and other information required: Held That sucb acts and practices, unrier tbe circumstances set forth, were in violation of the provisions of said Act and rules and regulations, and constituted unfair and deceptive acts and practices in commerce. Before MT. Webster Boninger hearing examiner. J.fr. Henry D. StTinger for the Commission. Conrad d5 Smith of New York City, for respondent. CO:MPLAIXT Pursuant to the provisions of the Federal Trade Commission Act and the 'W 001 Products Labeling Act of 1039, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that Raycrest 1\:fl1s, Inc., a corporation hereinafter referred to as respondent, has violated the provisions of said Acts and Rules and Regulations promulgated under the 'Vool 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 follows:

P ARAGRAPII 1. Raycrest 1\lills, Inc. , is a corporation organized under and by virtue of the laws of Hhode Island, with its offce and place of business located at 560 1\fineral Spring Avenue, Pawtucket Rhode Island.

PAn. 2. Subsequent to July l,o, 1941, respondent has violated the provisions of the 1Vool Products Labeling Aet of 1939, and the Rules and Regulations promulgated thereunder, by manufacturing for introduction into commerce, introducing into commerce offering for RAYCREST MILLS , INC. 475 474 Decision sale in commerce, and selling and distributing in commerce, as "commerce" is defined in said Act, wool products, as "wool products" arb defined therein, ,,,which were "misbranded " within the meaning of said Act in that there were not on or afixed thereto any stamps, tags, labels or other means of identification, containing the infonnation required by said Act, and in the manner and form required by the Rules and Regulations promulgated thereunder. Among said wool products were included approximately 200 000 yards of piece goods of which approximately 38 000 yards were sold to Roseline Fabrics, Inc., in October, 1948.

PAR. ,3. The aforesaid acts and practices of respondents as herein a lleged were in violation of the 1V 001 Products Labehng Act of 1939 anel the Hules and Regulations promulgated tllereuneler, and constitute unfair and deceptive acts and practices in commerce wjt,hin the intent and meaning of the Federal Trade Commission Act. DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF CO:MPLIAXCE 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, on December 19 , 1950, issued and subsequently served its complaint in this proceeding upon the respondent, Raycl'est J\iills, Inc., a corporation, charging it. ,,,ith the lise of lIniair and deceptive, acts and practices in commerce in violation of the provisions of those Acts. After the filing of respondent's answer, testimony and other evidence in support. oJ and in opposition to the alJe,gations of the complaint were introduced before a hearing examiner of the Commission theretofore designated by it, and such testimony and other evidence were duly recorded and filed in the offce of the Commission. On April 2, 1951 the hearing examiner filed his initial decision dismissing the complaint herein without prejudice.

,Within the time permitted by the Commission s Rnles of Practice counsel slIpporting the complaint filed with the Commission an appeal from said initial decision, and thereafter this proceeding regularly carne on for finrtl consideration by the Commission upon the record herein, including the briefs in support of and in opposition to the appeal and oral argument of cOlmsf'l; and the Commission, having iss!wd its order granting said appeal, and being now fully advised in the premises, finds t.hat this proceeding is in the interest of the public and makes this its findings as to the facts and its conclusion drawn therefrom, the same to be in hen of the init ial decision of the hearing exam11ler.

476 FEDERAL TRADE co:.r:lISSIQN DECISIOKS Order 48 F. T. C.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent Haycrest lil1s, Inc., is a corporation organized under and by virtue of the laws of the State of Rhode Island with its offce and place of business located at 560 Mineral Spring A venue, Pawtucket, R. I.

PAn. 2. Respondent is now and since prior to 1947 has been engaged in the manufacture and sale of men s suiting materials, ladies' dress goods and similar fabrics. During the years 1947 and 1948, respondent manufactured 200 000 yards of fabrics composed of 80 percent rayon and 20 percent wool, as the term " wool" is defined in the V\T 001 Products Labeling Act of 1939, which fabrics were manufactured for introduction and sale in commerce and ,which were in fact introduced sold and distributed in commerce, as "commerce" is defined in the Wood Products Labeling Act of 1939 and in the Federal Trade Commission Act. Said fabrics were wool products as that term is defined in the Wool Products Labeling Act of J939, and were therefore subject to the provisions of said Act and the Rules and Regulations promulgated thereunder.

PAR. 3. The above-described wool products when introduced into commerce and sold and distributed in commerce, as aforesaid, were misbranded within the intent and meaning of the "\V 001 Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder in that they did not have on or affxed to them a stamp, tag, label or other means or identification showing the constituent fibers and the percentages thereof, of such products, and other informat.ion required by said Act and the Rules and Regulations promulgated thereunder.

COXCLUSION Th acts and practices of the respondent, as hereinabove found. were in violation of the provisions of the Wool Products Labeling Aet of 1939 and the Rules and Regulations thereunder, and constituted unfair and deceptive acts and practices in commerce ,vi thin tlle intent rmd meaning of the Federal Trade Commission Act. OUDEH It is ordend That the respondent, Raycrest MilJs, Inc., a corporation, and its offcers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the introduction or manufacture :for introduction into commerce, or the offering for sale, sale, transportation, or distribution in commerce, as "com- RAYCREST MILLS INC. 477 474 Order merce" is defined in the aforesaid Acts, of fabrics or other wool products, as such products are defined in and subject to the .Vool Products Labeling Act of 1939, which products contain, purport to contain, or in any way are represented as containing "wool reprocessed wool or "reuse,d wool " as those terms are defined in said Act, do forthwith cease and desist from misbranding such products 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 conspicuous manner: (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 al1 other fibers.

(b) The maximum percentage of the total weight of such wool product of any nonfibrous loading, fining, or adulterating matter. (c) The name or the registered identification number of the manufacturer of such wool product or of one or more persons engaged in introducing such wool product into commerce) or in the offering for sale, sale, transportiltion, or distribution thereof in commerce, as commerce" is defined in the Federal Trade Conm1ission Act and in the ,Vaal Products Labeling Act of 1939.

P1' ovided That the foregoing provisions concerning misbranding shan not bc construed to prohibit acts permitted by paragraphs (a) and (b) of Section 3 of the Wool Products Labeling Act of 1939; and pT01Jided 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 i8 further ordered That the respondent shall, within sixty (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.

478 FEDERAL 'trade COMMISSION DECISIONS SJ'llalms 48 F. T. C.