Isidore Sandberg

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In roe Matter oF {SIDORE SANDBERG ET AL. FRADING AS SEYMOUR DRESS & BLOUSE COMPANY COMPLAINT, FINDINGS, AND ORDERS IN REGARD TO THE ALLEGED VIOLA- TION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT, 26, 1914 Docket 6059. Oomplaint, Nov. 18, 1952—Decision, Apr. 2, 1953 Rayon is a chemical fiber which may be manufactured and finished in such manner as to simulate wool and other natural fibers in texture and appearance, and many members of the purchasing public are unable to distinguish between articles of wearing apparel, including dresses, made from such rayon fabrics and those manufactured from wool or other natural fibers; and readily accept wearing apparel made from rayon as made from wool or other natural fibers.

Where two individuals engaged in the manufacture and interstate sale and distribution to retailer purchasers of articles of women’s wearing apparel, including dresses, made of rayon— (a) Failed to label or otherwise inform purchasers that said dresses were composed of rayon; and (b) Falsely represented and impliedly warranted that certain of said dresses, made from brushed rayon fabric, were safe to wear, through failing to reveal the highly inflammable characteristic of the material; With tendency and capacity to mislead a substantial portion of the purchasing public into the mistaken belief that said garments were made of wool and were Suitable and safe for wearing as articles of clothing, and thereby into the purchase of substantial quantities thereof: Heid, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair and deceptive acts and practices in commerce.

While it appeared that respondents, since about January 1952, had been labeling all garments made of rayon and other synthetic fabrics to show their synthetic fiber content, and stated that they were then fully complying with the Trade Practice Rules of the Commission applicable to the rayon and acetate textile industry, it was nevertheless in the public interest that cease and desist order issue in view of the inflammable characteristics of fabrics theretofore used in some of the wearing apparel made and distributed by them.

Before Mr. J. Hari Cox, hearing examiner.

Mr. George E. Steinmetz for the Commission. Helnan & Hurwitz, of New York City, for respondents. SEYMOUR DRESS & BLOUSE CO. 1279 4278 Complaint Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission having reason to believe that Isidore Sandberg and Seymour Sandberg, individually and doing business as a copartnership under the firm name of Seymour Dress & Blouse Company, hereinafter referred to as respondents, have 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: Paracrapu 1. Respondents are individuals trading and doing business as a copartnership under the firm name of Seymour Dress & Blouse Company with their office and principal place of business located at 462 Seventh Avenue, New York, New York. The home address of respondent Isidore Sandberg is 100 Riverside Drive, New York, New York, and the home address of respondent Seymour Sandberg is 404 Barnard Avenue, Cedarhurst, Long Island, New York. Par. 2. The respondents are now and for more than one year last past have been engaged in the manufacture, sale and distribution of articles of women’s wearing apparel including dresses, which are composed of rayon. Respondents cause their products when sold to be transported from their place of business in the State of New York to purchasers thereof located in various other States of the United States. Respondents maintain, and at all times mentioned herein have maintained, a substantial course of trade in said products in commerce among and between the various States of the United States. Par. 8. Rayon is a chemical fiber which may be manufactured and finished in such manner as to simulate wool and other natural fibers in texture and appearance, and many members of the purchasing public are unable to distinguish between articles of wearing apparel, including dresses made from such rayon fibers, from those manufactured from wool or other natural fibers. Consequently, articles of wearing apparel made from such rayon fabrics are readily accepted by many members of the purchasing public as made from wool or other natural fibers.

Par. 4. Some of the dresses manufactured and distributed by the respondents are made from a particular type of brushed rayon fabric which is highly inflammable. Respondents do not label or otherwise inform the purchasers thereof that they are composed of rayon nor do they reveal in any manner the highly inflammable characteristics thereof.

Decision 49 F.T.C..

Par, 5. Purchasers of brushed rayon dresses manufactured by respondents include retail stores which resell the same to the general public, and the failure of respondents to reveal that such articles are made of rayon, and failing to reveal that they are made of highly inflammable mvicrial, places in the hands of retailers and others a means and instrumentality whereby members of the purchasing public may be misled and deceived in the manner above set forth. Par. 6. By failing to label or tag their said brushed rayon dresses as rayon, and by failing to reveal or disclose the inflammable characteristics thereof, respondents have represented and impliedly warranted that said dresses are safe to wear. In truth and in fact, dresses and other articles of wearing apparel made of such brushed rayon material are dangerous and unsafe to be worn because they are highly inflammable.

Par. 7. The practices of respondents of failing to reveal that their garments are made of rayon and of failing to reveal that some of their garments made of a particular type of brushed rayon are highly infammable and are unsafe to be worn as articles of clothing had the tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that said garments were made of wool and were suitable and safe to be worn as articles of clothing and into the purchase of substantial quantities of their garments because of such erroneous and mistaken belief.

Par. 8. The aforesaid acts and practices of respondents 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. DECISION OF THE COMMISSION Pursuant to Rule XXII of the Commission’s Rules of Practice, and as set forth in the Commission’s “Decision of the Commission and Order to File Report of Compliance,” dated April 2, 1953, 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, the Federal Trade Commission on November 18, 1952, issued and subsequently served its complaint in this proceeding upon the respondents Isidore Sandberg and Seymour Sandberg, individually and ag partners trading as Seymour Dress & Blouse Company, charging: SEYMOUR DRESS & BLOUSE CO. 1281 1278 Findings them with the use of unfair and deceptive acts and practices in commerce within the intent and meaning of said Act. After the filing of respondents’ answer in this proceeding a hearing was held on January 21, 1953, before the above-named hearing examiner of the Commission, theretofore duly designated by it, at which a stipulation was entered into by and between Jacob E. Hurwitz, attorney for respondents, and George E. Steinmetz, attorney in support of the complaint, subject to the approval of the hearing examiner, whereby it was stipulated and agreed that a statement of facts agreed to on the record may be made a part of the record herein and may be taken as the facts in this proceeding and in lieu of evidence in support of the charges stated in the complaint or in opposition thereto; that the said hearing examiner may proceed upon said statement of facts to make his initial decision stating his findings as to the facts, including inferences which he may draw from the said stipulation of facts, and his conclusion based thereon, and enter his order disposing of the proceeding as to said respondents without the filing of proposed findings and conclusions or the presentation of oral argument. Said stipulation as to the facts expressly provides that upon appeal to or review by the Commission, said stipulation may be set aside by the Commission and this matter remanded for further proceedings under the complaint. Thereafter, this proceeding regularly came on for final consideration by said hearing examiner upon the complaint, answer, and stipulation, said stipulation having been approved by the hearing 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 facts, conclusion drawn therefrom, and order: FINDINGS AS TO THE FACTS Paracrapy 1. Respondents are individuals trading and doing business as a copartnership under the firm name of Seymour Dress & Blouse Company with their office and principal place of business located at 462 Seventh Avenue, New York, New York. The home -address of respondent Isidore Sandberg is 100 Riverside Drive, New York, New York, and the home address of respondent Seymour Sandberg is 404 Barnard Avenue, Cedarhurst, Long Island, New York. Par. 2. The respondents are now and for more than one year last past have been engaged in the manufacture, sale and distribution of articles of women’s wearing apparel, including dresses, which are -composed of rayon. Respondents cause their products when sold to be transported from their place of business in the State of New York cto purchasers thereof located in various other States of the United Findings 49 F.T.C.

States. Respondents maintain, and at all times mentioned herein: have maintained, a substantial course of trade in said products in. commerce among and between the various States of the United States: Par. 8. Rayon is a chemical fiber which may be manufactured and finished in such manner as to simulate wool and other natural fibers in texture and appearance, and many members of the purchasing public are unable to distinguish between articles of wearing apparel, including dresses, made from such rayon fabrics and those manufactured from wool or other natural fibers. Consequently, articles of wearing apparel made from such rayon fabrics are readily accepted by many members of the purchasing public as made from wool or other natural fibers.

Par. 4. Some of the dresses manufactured and distributed by the respondents were made from a particular type of brushed rayon fabric which burns rapidly or intensely and is highly inflammable. Respondents did not label or otherwise inform the purchasers thereof that they were composed of rayon nor did they reveal in any manner the highly inflammable characteristics thereof.

Par. 5. Purchasers of brushed rayon dresses manufactured by respondents include retail stores which resell the same to the general public, and the failure of respondents to reveal that such articles were made of rayon, and the failure to reveal that they were made of highly inflammable material, places in the hands of retailers and others a means and instrumentality whereby members of the purchasing public may have been misled and deceived.

Par. 6. By failing to label or tag their said brushed rayon dresses. as rayon, and by failing to reveal or disclose the inflammable characteristics of some of their fabrics and garments, respondents have represented and impliedly warranted that said dresses were and are safe to wear. In truth and in fact, dresses and other articles of wearing 5 1 3 5 6 2 670 2104 140 40 96.431602 apparel5 1 3 5 6 3 823 2105 100 31 95.621819 made5 1 3 5 6 4 937 2104 38 33 95.621819 of5 1 3 5 6 5 988 2105 81 32 96.165298 such5 1 3 5 6 6 1084 2106 145 32 96.363716 brushed5 1 3 5 6 7 1244 2117 106 31 96.393402 rayon5 1 3 5 6 8 1365 2108 155 32 96.618919 materials 1 3 5 6 9 1536 2120 86 21 96.892021 were5 1 3 5 6 10 1636 2110 66 32 96.800995 ands 1 3 5 6 11 1717 2122 57 21 96.907494 ares 1 3 5 6 12 1787 2112 189 41 96.675812 dangerous4 1 3 5 7 0 669 2153 1305 48 -1 5 1 3 5 7 1 669 2153 67 32 96.419708 ands 1 3 5 7 2 752 2154 122 31 96.109726 unsafe5 1 3 5 7 3 887 2158 36 28 97.003845 to5 1 3 5 7 4 938 2154 40 33 97.004684 be5 1 3 5 7 5 992 2166 94 21 96.786781 worn5 1 3 5 7 6 1101 2156 138 32 96.563316 because5 1 3 5 7 7 1253 2156 80 41 96.737061 they5 1 3 5 7 8 1348 2168 87 21 96.737061 were5 1 3 5 7 9 1450 2159 66 32 96.071579 ands 1 3 5 7 10 1531 2169 57 22 95.773636 ares 1 3 5 7 11 1602 2160 121 41 96.795662 highly5 1 3 5 7 12 1738 2160 236 34 96.523270 inflammable.3 1 3 6 0 0 658 2202 1321 481 -1 4 1 3 6 1 0 710 2202 1265 49 -1 5 1 3 6 1 1 710 2202 82 32 94.412292 Par.5 1 3 6 1 2 809 2202 29 32 92.573296 7.5 1 3 6 1 3 862 2203 72 33 96.321503 Thes 1 3 6 1 4 950 2204 164 41 95.566284 practices5 1 3 6 1 5 1131 2205 38 31 96.737114 of5 1 3 6 1 6 1183 2207 222 40 96.737114 respondents5 1 3 6 1 7 1420 2208 39 32 96.895454 of5 1 3 6 1 8 1475 2208 126 43 96.864754 failing5 1 3 6 1 9 1616 2214 35 28 96.864754 to5 1 3 6 1 10 1667 2211 112 31 96.674385 reveals 1 3 6 1 11 1795 2211 76 32 96.974762 that5 1 3 6 1 12 1885 2211 90 33 96.698486 their4 1 3 6 2 0 668 2254 1311 45 -1 5 1 3 6 2 1 668 2256 173 37 96.487732 garments5 1 3 6 2 2 860 2263 87 22 96.747383 were5 1 3 6 2 3 964 2254 98 32 96.864204 made5 1 3 6 2 4 1081 2254 39 32 95.466049 of5 1 3 6 2 5 1137 2265 107 31 96.353607 rayon5 1 3 6 2 6 1263 2256 66 32 95.391754 ands 1 3 6 2 7 1348 2256 38 32 95.391754 of5 1 3 6 2 8 1405 2257 127 42 96.614693 failing5 1 3 6 2 9 1549 2262 36 28 96.717018 to5 1 3 6 2 10 1603 2259 111 32 96.733841 reveals 1 3 6 2 11 1733 2260 77 33 96.357452 that5 1 3 6 2 12 1828 2271 88 22 96.238205 some5 1 3 6 2 13 1936 2262 43 31 96.238205 of4 1 3 6 3 0 667 2301 1306 50 -1 5 1 3 6 3 1 667 2301 89 32 95.910126 theirs 1 3 6 3 2 772 2306 172 37 96.504395 garments5 1 3 6 3 3 961 2303 99 32 95.752350 made5 1 3 6 3 4 1075 2304 39 31 95.752350 of5 1 3 6 3 5 1129 2316 19 20 96.628944 a5 1 3 6 3 6 1165 2305 188 40 96.628944 particulars 1 3 6 3 7 1368 2310 82 38 97.005272 types 1 3 6 3 8 1466 2307 37 32 97.004990 of5 1 3 6 3 9 1519 2307 146 34 96.203712 brushed5 1 3 6 3 10 1681 2320 108 31 96.655670 rayon5 1 3 6 3 11 1804 2321 87 22 96.352859 were5 1 3 6 3 12 1907 2311 66 33 96.352859 anda 1 3 6 4 0 667 2350 1312 52 -1 5 1 3 6 4 1 667 2361 58 22 96.502953 ares 1 3 6 4 2 741 2350 122 43 96.315300 highly5 1 3 6 4 3 880 2352 227 34 96.232269 inflammable5 1 3 6 4 4 1123 2354 67 32 96.559807 ands 1 3 6 4 5 1208 2355 122 32 96.319550 unsafe5 1 3 6 4 6 1345 2359 35 30 96.366982 to5 1 3 6 4 7 1396 2356 41 33 96.366982 be5 1 3 6 4 8 1453 2368 93 22 96.668724 worn5 1 3 6 4 9 1564 2368 35 22 96.915215 as5 1 3 6 4 10 1616 2359 134 33 96.715286 articles5 1 3 6 4 11 1767 2360 38 32 96.509865 of5 1 3 6 4 12 1822 2360 157 42 95.510933 clothing4 1 3 6 5 0 667 2400 1303 46 -1 5 1 3 6 5 1 667 2400 68 32 96.361877 had5 1 3 6 5 2 754 2401 58 32 96.361877 thes 1 3 6 5 3 830 2402 164 41 96.587669 tendency5 1 3 6 5 4 1015 2403 66 31 96.280708 ands 1 3 6 5 5 1101 2404 154 42 96.901031 capacity5 1 3 6 5 6 1275 2409 36 28 96.427383 to5 1 3 6 5 7 1329 2406 141 33 96.767525 misleads 1 3 6 5 8 1491 2407 66 32 96.726166 ands 1 3 6 5 9 1578 2409 132 32 96.951714 deceives 1 3 6 5 10 1730 2421 19 21 96.967422 a5 1 3 6 5 11 1769 2410 201 34 96.526054 substantial4 1 3 6 6 0 666 2450 1304 45 -1 5 1 3 6 6 1 666 2450 137 41 96.553627 portions 1 3 6 6 2 826 2451 39 32 96.409294 of5 1 3 6 6 3 886 2451 58 33 96.331367 thes 1 3 6 6 4 967 2452 208 43 96.290703 purchasing5 1 3 6 6 5 1198 2454 114 41 96.551193 public5 1 3 6 6 6 1336 2455 71 33 96.318398 into5 1 3 6 6 7 1431 2457 57 31 96.387207 thes 1 3 6 6 8 1511 2468 179 23 96.283104 erroneous5 1 3 6 6 9 1714 2460 67 31 96.210625 ands 1 3 6 6 10 1804 2461 166 33 96.522598 mistaken4 1 3 6 7 0 666 2500 1307 44 -1 5 1 3 6 7 1 666 2500 104 31 96.777107 beliefs 1 3 6 7 2 787 2500 77 32 96.735016 that5 1 3 6 7 3 882 2501 74 32 96.160606 said5 1 3 6 7 4 974 2506 171 37 96.566696 garments5 1 3 6 7 5 1165 2514 86 22 96.785805 were5 1 3 6 7 6 1269 2506 98 30 96.560303 made5 1 3 6 7 7 1387 2506 37 31 96.560303 of5 1 3 6 7 8 1443 2507 85 32 96.699196 wool5 1 3 6 7 9 1549 2508 65 31 96.620804 ands 1 3 6 7 10 1634 2519 87 22 96.823524 were5 1 3 6 7 11 1741 2509 142 34 96.829781 suitable5 1 3 6 7 12 1903 2512 70 32 96.716362 anda 1 3 6 8 0 665 2549 1305 50 -1 5 1 3 6 8 1 665 2549 74 32 96.577484 safe5 1 3 6 8 2 755 2553 36 28 96.976822 to5 1 3 6 8 3 808 2550 40 32 96.839783 be5 1 3 6 8 4 866 2561 95 21 96.154007 worn5 1 3 6 8 5 979 2562 36 21 96.042633 as5 1 3 6 8 6 1033 2551 133 33 96.939781 articles5 1 3 6 8 7 1185 2554 38 31 96.707695 of5 1 3 6 8 8 1240 2554 151 43 96.326820 clothing5 1 3 6 8 9 1410 2556 66 31 96.687492 ands 1 3 6 8 10 1495 2557 71 32 96.735977 into5 1 3 6 8 11 1584 2557 58 33 96.259300 thes 1 3 6 8 12 1657 2559 164 40 96.494171 purchases 1 3 6 8 13 1840 2561 37 32 92.933197 of5 1 3 6 8 14 1894 2561 76 32 92.933197 sub-4 1 3 6 9 0 664 2599 1308 45 -1 5 1 3 6 9 1 664 2599 140 32 96.678764 stantial5 1 3 6 9 2 825 2599 182 42 96.411720 quantities5 1 3 6 9 3 1027 2602 39 31 96.990944 of5 1 3 6 9 4 1084 2602 91 32 96.563011 theirs 1 3 6 9 5 1194 2608 171 36 96.393600 garments5 1 3 6 9 6 1385 2605 138 33 96.196617 because5 1 3 6 9 7 1543 2608 38 31 96.809814 of5 1 3 6 9 8 1601 2608 79 32 96.969154 such5 1 3 6 9 9 1702 2620 180 22 95.984322 erroneous5 1 3 6 9 10 1903 2612 69 32 95.146744 anda 1 3 6 10 0 658 2647 301 36 -1 5 1 3 6 10 1 658 2647 167 35 96.186180 mistaken5 1 3 6 10 2 847 2650 112 33 95.792892 belief. SEYMOUR DRESS: & BLOUSE CO. 1283 1278 Order CONCLUSION The aforesaid acts and practices of respondents as hereinabove 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 meaning of the Federal Trade Commission Act. The respondents have since about January 1952 labeled all garments made of rayon and other synthetic fabrics to show the synthetic fiber content thereof, and further state that they are now fully complying with the Trade Practice Rules of the Federal Trade Commission applicable to the rayon and acetate textile industry. However, because of the inflammable characteristics of the fabrics heretofore used in some of the wearing apparel manufactured and distributed by the respondents, it is in the public interest that a cease and desist order be issued.

ORDER It is ordered, That the respondents Isidore Sandberg and Seymour Sandberg, individually and trading and doing business as Seymour Dress & Blouse Company, or under any other name or names, and their respective representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution in commerce, as “commerce” is defined in the Federal Trade Commission Act, of dresses or any other garments, do forthwith cease and desist from: 1. Offering for sale or selling any garments composed in whole or in part of rayon without clearly disclosing thereon, or on tags or labels affixed thereto, such rayon content. , 2. Offering for sale or selling any garments made of highly inflammable materials without clearly and affirmatively disclosing thereon, or on tags or labels affixed thereto, that said garments are highly inflammable and are dangerous and unsafe to be worn as articles of clothing.

ORDER TO FILE REPORT OF COMPLIANCE It 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 April 2, 1953]. Syvlabus 49 EF. TLC.