Ronell Fashions, Inc

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IN THE 1\1A ITER OF RONELL FASHIONS, INC, ET AL.

COMPLAINT, DECISION, FINDINGS, AND ORDERS IN REGARD TO THE AL- LEGED VIOLATION OF SEC. 5 OF A.N AC'l' OF CONGRESS APPROVED SEPT, 26, 1914, AND OF AN ACT OF CONGRESS APPROVED OCT. 14, 1940 Docket 916. Complaint, Aug, 1951-Decision, M~ar, 17, 1952 \Yhere a corporation and its president and secretary-treasurer, engaged in the manufacture, sale, and distribution in commerce of "wool products" as defined in the Wool Products Labeling Act, including some 500 women s topper coats, which they made from bolt-ends, samples and other odd pieces of cloth, the actual fiber content of which they did not kl1ow- (a) Misbranded a substantial number of said garments as to the character and amount of the constituent fibers, including, as illustrative, three of said coats which, all labeled "100% wool", contained 37,1%, 29%, and 35,3% wool respectively, with the balance of viscose rayon; and (b) Misbranded certain of said products in that they did not have affixed thereto tags or labels required under the Act:

II cld, That such acts and practices, under the circumstances set forth, were in viola tion of Sees. 3 and 4 of the Wool Products Labeling Act of 1939 and of the Rules and Regulations promulgated thereunder, and constituted unfair and deceptive acts and practices in commerce, Before 1111' J, Earl Cox hearing examiner. 1111.. Russell T. Potter for the Commission. Contact&; Smith of New York City, for respondents. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the \V 001 Products Labeling Act of 1939, and by virtue of the authority yested in it by said Acts, the Federal Trade Commission having reason to believe that Ronell Fashions, Inc" a corporation, and Abraham \Volf and Hyman Ellis, individually and as officers of said corporation, have violated the provisions of said Acts and the Rules and Regulations promulgated under the \V 001 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, Ronell Fashions, 1nc" is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Its principal office and place of business is located at 241-37th Street, New York, New York. Respondents Abraham \Volf and I-Iyman Ellis are President and Secretary- Treasurer, respectively, of respondent"Ronell Fashions, Inc. Decision 48 F. T. C.

and as such, formulate and execute its policies and practices. Their business address is the same as that of the corporate respondent. PAR. 2. Subsequent to the effective date of the . ct anel more especially since January 1950, 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 "\tV 001 Products Labeling Act, wool products, as "wool products" are defined therein. PAR. 3. Certain of said wool products were misbranded in that they were not stamped, tagged or labeled as required under the provisions of section 4 (a) (2) of the ",Vool Products Labeling Act of 1939 and in the manner and form prescribed by the Rules and Regulations relating thereto.

PAR. 4. Certain of said wool products were misbranded ",within the intent and meaning of the said A.ct and Rules and Regulations in that they were falsely and deceptively labeled with respect to the character and amount of the constituent fibers appearing therein. Among the misbranded products aforementioned were womens' coats. Such coats were labeled by the respondent as "100% wool." In truth and in fact, the coats were not 100% wool as labeled but contained substantial quantities of fibers other than wool. PAR. 5. The Acts and practices of respondents, as herein alleged were in violation of the "\tV 001 Products Labeling Act of 1939 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, DECISION OF THE COMl\IISSION . Pursuant to Rule XXII of the Commission s Rules of Practice and as set forth in the Commission s "Decision of the Com.mission and Order to File Report of Compliance, dated :March 17, 1952, the initial decision in the instant matter of hearing examiner, J. Earl Cox, as set out as follows, became on that date the decision of the Commission, INITIAL DECISION BY J. EARL cox, HEARING EXAMINER Pursuant to the provisions of the Federal Trade Commission Act and the "\V 001 Products Labeling Act of 1939, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission on August 16 19:51, issued and subsequently served its complaint in this proceeding upon the respondents Ronell Fashions, Inc" a corporation, and Abraham ",Volf and Hyman Ellis, individually and as officers of said cor- RONELL FASHIONS, INC., ET AL. 1001 999 Findings poration, charging them with the use of unfair and deceptive acts and practices in conllnerce in violation of the provisions of said Acts. After the issuance of said complaint and the filing of respondents answer thereto, hearings were held at which testimony and other evidence in support of and in opposition to the complaint ,were introduced before the above-named hearing examiner, theretofore duly designated by the Commission, and said testimony and other evidence were duly recorded and filed in the office of the Commission. Thereafter the proceeding regularly came on for final consideration by said hearing examiner on the complaint, the answer thereto, testimony and other evidence, proposed findings as to the facts and conclusions presented by counsel, oral argument not having been requested; and said hearing exalniner, having duly considered the record herein, finds that this proceeding is in the interest of the public and makes the following findings as to the facts, conclusion drawn therefrom, and order:

FINDINGS AS TO Life FACTS PARAGRAPH 1. Respondent, Ronell Fashions, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New Yor1\:, with its principal office and place of business located at 241 "\Vest 37th Street, New York, New York. . Respondents Abraham "\Volf and Hyman Ellis are President and Secretary- Treasurer, respectively, of respondent Ronell Fashions, Inc. and as such, formulate and execute its policies and practices. Their business address is the same as that of the corporate respondent. PAR. 2, Since January, 1950, respondents manufactured for introduction into commerce, introduced into commerce, offered for sale sold, transported, and distributed in commerce, as "commerce" is defined in said Federal Trade Commission Act and "\V 001 Products Labeling Act, wool products, as "wool products" are defined in said vV 001 Prod ucts Labeling Act.

PAR. 3. Certain of said wool products ,were misbranded in that they were not stamped, tagged or labeled as required under the provisions of Section 4 (a) (2) of the "\17001 Products Labeling Act of 1939 and in the manner and form prescribed by the Rules and RegulationsrelatingPAR, 4, Certain of said wool thereto,products were misbranded within the intent and meaning of the said Act and Rules and Regulations promulgated thereunder in that they were falsely and deceptively labeled with respect to the character and am,count of the constituent fibers appearing therein, Among the misbranded products aforementioned were three women s topper coats which were labeled by the respondents as "100% wool." In truth and in fact, the coats were not 100% Order 48 F. T, C, wool as labeled, but contained substantial quantities of fibers other than wool. One topper coat contained 62.9% of viscose rayon and 37.1 % wool, another 71 % viscose rayon and 29% wool, and the third 64,7% viscose rayon and 35.3% wool. Approximately 500 topper coats similar to these three were made by respondent corporation from bolt-ends, samples and other odd pieces of cloth which carried no markings as to wool and other fiber content, The respondents did not know the actual fiber content of the garments so made, and a substantial number of them were mislabeled. The use of such materials was discontinued by said respondent about January, 1951. Total annual production of respondent corporation ,,-as approximately 100 000 garments, .

CONCLUSION The aforesaid acts and practices of respondents, as herein found were in violation of Sections 3 and 4 of the ,Y 001 Products Labeling Act of 1939 and of the Rules and Regulations promulgated thereunder, and constitute unfair and deceptive acts and practices in COlllmerce within the intent and meaning of the Federal Trade Commission Act.

ORDER It is o1'CleJ'ed That the respondent Ronen Fashions, Inc" a Corporation, and its officers, and Abraham "'\Volf and Hyman Ellis, individually, and as officers of said corporation, their respective 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, transportais defined in thetion or distribution in commerce, as "commerce" , as aforesaid Acts, of women s topper coats or other wool products 001 Products Label- such products are defined in and subject to the ,Y ing Act of 1939, which products contain, purport to contain, or in any way are represented as containing "wool reprocessed wool or "reused wool " as those terms are defined in said Act, do forthwith cease and desist from 11lisbrandil1g said women ~s coats 01' other wool products:

1. By falsely and deceptively representing on any stamp, tag, label or other means of identification appearing on a wool product the character or amount of the constituent fibers appearing therein; 2. 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) The percentage of the total fiber weight of such wool product exclusive of ornamentation not exceeding fh~e per centum of said total HONELL FASHIONS, INC" ET AI;, 1003 999 Order fiber weight, of (1) wool, (2) reprocessed wool, (3) reused wool, (4) each fiber other than wool where said percentage by weight or such fiber is five per centum or more and (5) the aggregate of all other fibers' (B) The maximum percentage of the total ,,' eight of such wool product of any non-fibrous loading, filling 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, transportation, distribution or delivering for shipment thereof in commerce, as "commerce" is defined in the Federal Trade Commission Act and in the "\V 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 thew 001 Products Labeling Act of 1939; and Provided fu-rthe1' That nothing contained in this order shall be construed as limiting any applicable provisions of said Act or of the Rules and Regulations promulgated thereunder, ORDER TO FILE REPORT OF COMPLIANCE I t is ordered That the respondents herein shall, 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 :March 17 , 1952J. Complaint 48 F, T. C.