Bennett Coat Co., Inc.

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IN THE MATTER OF BENNETT COAT CO., INC. ET AI,.

DECISION IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT AND THE WOOL PRODUCTS LABELING ACT Docleet 6108. Complaint, July 1953-Decision, Oct. 1953 Where a corporation and two offcers thereof, engaged in the manufacture and interstate sale and distribution of certain wool products as defined in the Wool Products Labeling Act;

(a) Misbranded certain ladies ' coats in that they were not stamped, tagged, or labeled as required by said Act and the Rules and Regulations promulgated thereunder;

(b) Misbrandcd said coats in that, labeled or tagged as containing "100% Wool they were composed of blcnded fabrics containing both wool and rayon (c) Misbrandedfibcrssaid coats in that; theandpercentage or amount of the constituent fibers of interlinings thereof were not separately set forth on stamps, tags etc. as required by Rule 24 of said Rules and Regnlations : Held That such acts and practices, under thc circumstances set forth, were in violation of the 'Wool Products Labeling Act and the Rules and Regulations promulgated thereunder and constituted unfair and deceptive acts and practices in conl1nerce in violation of tbe Federal Trade COlllmission Act. Before Mr. William L. Pack hearing examiner. jJ1r. George E. Steinmetz far the Cammissian. DECISION aF Tile COJIHIISSION Pursuant to "Decision of the Commission and Order to File Report of Campliance " dated October 6 1953, which, following the Commissian s review of the initial decision in the instant matter and its consideration af the entire record, set forth its opinion that said decision was " adequate and appropriate to. dispase af the proceeding," said initial decision of hearing examiner \Villiam L. Pack, as set out as foJJaws, became on that date the decision of the Commission. INITIAL DECISION BY WILLIAM L. PACK, HEARING EXAMINER Pursuant to the provisions of the Federal Trade Commission Act and the 'IVool Products Labeling Act af 19;)9, the Federal Trade Cammission, on July 9, 1953, issued and subsequently served its complaint in this proceeding up an the respondents named in the caption hereof charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions af those Acts. On August , 1953, respondents filed their answer, in which they admitted all of BENNETT COAT CO. , INC. :ET 11.1.

860 Findings the material allegations af fact set forth in the complaint and waived all intervening procedure and further hearing as to. such facts. Thereafter the proceeding regularly came an far final consideration by the above-named hearing examiner, theretofare duly designated by the Commission, upon the complaint and answer, and the hearing examiner, having duly considered the matter, 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 PARAGRAPH 1. Respandel1t Bennett Caat Ca. Inc. is a carporatian organized and existing under and by virtue of the laws af the State of New Yark, with its offce and principal place of business located at 222 West 37th Street, New Yark, N ew York. Respondents Gearge Tlumak and Louis I. Krieger are, respectively, president and secretary and treasurer of the corporation, and formulate, direct, and cantrol its policies, acts, and practices.

P AU. 2. Subsequent to the effective date of said IV 0.0.1 Products Labeling Act, and mare especially since ,January 1951, respondents have manufactured far introduction, intraduced, sold, distributed, delivered for shipment and offered Jor sale, in commerce, as "commerce " is defined in said Act, wool products, as "wool products" are defined therein. P AU. 3. Certain of said wool products were misbranded in that they were not stamped, tagged, or labeled as required under the provisions af Section 4 (a) (2) of said v\Tool Products Labeling Act af 1939, and in the manner and form prescribed by the Rules and Regulations promulgated thereunder.

PAR. 4. Certain of said waal products were misbranded within the intent and meaning of Section 4 (a) (1) of the W 0.0.1 Products Labeling Act af 1939 and the Rules and Hegulations promulgated thereunder in that they were falsely and deceptively labeled or tagged with respect to the character and amount of the constituent fibers contained therein. Among such misbranded wool products were ladies ' coats labeled tagged by respondent corporation as containing 100% IV 0.0.1" whereas in truth and in fact said products were not 100% wool but were cainpased of blended fabrics containing both wool and rayon fibers. PAR. 5. Certain of said wool products were further misbranded in that the percentage or am aunt af the constituent fibers af interlinings of certain of said ladies' coats were nat separately set forth an stamps tags, labels, or other means af identification in the manner, farm, and extent required by Rule 24 of the Rules and Regulations promulgated by the Commission pursuant to said W 0.0.1 Products Labeling Act. il",nal TRADE COMMISSION DECISIONS Order 50 F. T. C.

CONCLUSION The acts and practices af respondents, as herein found, are in vialatian af the Waal Products Labeling Act af 1939 and af the Rules and Regulations promulgated thereunder, and are to the prejudice of the public and constitute unfair and deceptive acts and practices in cammerce within the intent and meaning of the Federal Trade Cammissian Act.

ORDER I t is ordered That respondent Bennett Caat Ca. Inc., a carporatian and its afIcers, and respondents Gearge Tlumak and Lauis 1. Krieger individually, and respondents' respective representatives, agents and ar other device, in can-employees, directly ar through any carparate nectian with the intraductian ar manufacture far introduction into. , transpartation ar distributioncommerce ar the offering for sale, sale is defined in the Federal Trade Cam-in commerce, as "commerce" af ladies 0.0.1 Products Labeling Act of 1939mission Act and the . caats or other "wool products" as such products are defined in and subject to the Wool Products Labeling Act af 1939, which products to. contain, 0.1' in any way are represented as cantainingcantain, purport waal reprocessed wool" or "reused wool " as those terms are defined in said Act, do. forthwith cease and desist from misbranding such products by; .

1. Falsely or deceptively stamping, tagging, labeling, ar otherwise identifying such products as to. the character ar am aunt af the constituent fibers included therein;

2. Failing to affx securely to. ar place on each such product a stamp, tag, label ar other means af identification shawing in a clear and conspicuous manner;

(a) The percentage af the total fiber weight af such waal product five percentum af said tatalexclusive of arnamentatian not exceeding (4)fiber weight af (1) wool, (2) reprocessed wool, (3) reused wool, each fiber other than waal where said percentage by weight af such aggregate af all atherfiber is five percentum ar mare, and (5) the fibers;

maximum percentage af the total weight af such wool (b) The product af any nanfibrous laading, filling, or adulterating matter; (c) The name or the registered identification number af the manufacturer of such waal product ar af one ar more persons engaged in or in the offering farintroducing such wool product into commerce, , distribution or delivery far shipment thereaf 3ale, sale, transpartatian n commerce, as "commerce" is defined in the Wool Products Labeling \.ct of 1939.

BENNETT COAT CO. , INC.) ET AL. 363 360 Order 3. Failing to set forth separately an the required stamp, tag, label or other means af identification the character and amount af the constituent fibers contained in the interlinings of such wool products as provided in Hule 24 of the Rules and Regulations promulgated under said IV 0.0.1 Products Labeling Act of 1939. Provided That the foregoing provisions concerning misbranding shall nat be construed to. prahibit acts permitted by paragraphs (a) and (b) of Section 3 of the Wool Products Labeling Act af 1939; and Provided furtker That nothing contained in this order shall be construed as limiting any applicable provisions af said Act ar the Rnles and Regulations promulgated thereunder.

ORDER TO FILE REPORT OF CaMPLIANCE tis furtker ordered That the respondents, Bennett Co. at Ca. Inc., a carparation, and Gearge Tlnmak and Lauis I. Krieger, shall within sixty (60) days after service upon them af this order, fie with the Commission a report in writing setting forth in detail the manner and farm in which they have complied with the order to. cease and desist (as required by said decision and order of October 6, 1953J. Syllabus 50 F. T. C.