Harry Bernstein & Sons, Inc., et al.

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IN THE llT'I'E OF HAHRY BEHNSTEIN & SONS, INC., ET AL.

CONSENT SETTLEMENT IN m,GAHD TO TI-IE ALLEGED VIOLATIONS OF THE FEDERAL TRADE COMMISSION ACT AND THE WOOL PRODUCTS J,LABELING ACT Docket 6182. Complaint, Feb. 19.54-Decision, Apr. , 19.54 Where a corporation and its two offcers, engaged in the manufacture and interstate sale and distribution of wool products as defined in the Wool Products Labeling Act- (a) Misbranded men s suits in violation of said Act and the Rules and Regulations promulgated thereunder in that, labeled or tag-ged as consisting of 100% Wool", they contained in addition to wool a substantial quantity of non-woolen fibers;

(b) Misbranded such suits in that labels attached thereto were neither clear distinct, nor plainly legible, as required by Rule 5 of said Rules and Regulations; and (e) Misbranded certain samples. swatches, or specimens of woolen fabrics in that they were not marked, tagged, or labeled to show their fiber content and other information required by law:

Held That such acts and practices, under the eireumstanees set forth, were in violation of the Wool Products Labeling Aet and the Rules and Regulations promulgated thereunder, and constituted unfair and deceptive acts and practices in commerce.

Before MT. Webster Ballinger hearing examiner. MT. Ge01ge E. Steimnetz for the Commission. MT. Loui.s Epstein of New York City, for respondents. CONSENT SIcTTLEMENT 1 Pursuant to the provisions of the Federal Trade Commission Ac and the Wool Products Labeling Act of 1939, the Federal Trad Commission on February 18, 1954, issued and subsequently serVf its complaint upon the respondents named in the caption here( charging them with the use of unfair and deceptive acts and prach in violation of the provisions of said Acts. The respondents, desiring that this proceeding be disposed of consent settlement procedure, provided in Hule V of the Commissi 1 The Commission s "Notice" announcing and promulgating the consent settlemfpubUsbed herewith, follows: The consent settlement tendered by the parties in this proceeding, a copy of w served herewith, was accepted by tbe Commission on April 15, 1954, and ordered, of record as the Commission s findings as to the facts, conclusions. and order in dis1ofthe timethisfor filing report proceeding.of compliance pursuant to the aforesaid order runs f date of service hereof - GuMMISSION DECISIONS Findings 50 F. T. C.

Rules of Practice, solely for the purpose of this proceeding, any review thereof, and the enforcement of the order consented to, and conditioned upon t.he Commission s accept.ance of t.he consent set.t.le. ment hereinafter set forth, and in lieu of answer to said complaint heretofore filed and which answer, upon accept.ance by the Commission of t.his settlement., is to be withdrawn from the record, hereby: 1. Admit. all t.he jurisdictional allegations set forth in the complaint. hereinafter 2. Consent that the. Commission may enter the matters set forth as its findings as to the facts, conclusion, and order to cease and desist. It is understood that the respondents, in consenting to t.he Commission s entry of said findings as to the facts, conclusion admitting orand order to cease and desist, specifically refrain from denying that they have engaged in any of the acts or practices stated therein to be in violation of law.

may be set aside in whole or in 3. Agree that this consent settlement part under the conditions and in the manner provided in Paragraph (f) of Rule V of the Commission s Rules of Practice. The admitted jurisdictional facts, the statement of the acts and prac. thetices which the Commission had reason to believe were unlawful, allconclusion based thereon, and the order to cease and desist, which the respondents consent may be entered herein in final disposi. t ion of th is proceeding, are as follows : FlNDl"'GS , IS TO TIlle FA' :TS PARAGRAPH 1. Respondent Harry Bernstein & Sons, Inc. , is a eorvirtue of the laws of \Joration organized ancl existing under aml by he State of New York. Harry Bernst.ein is president, Herbert Bern. ;ein is seeretary, and Leon Bel'stein is treasurer of said respondent )rporation. These individuals fonnulate, direct ancl cont.rol the acts ,licies and practices of said corporate. respondent. The offces and incipal pbce of business oJ all responclento are located at 104 Fifth 8111e. New York 11 , New York.

AR. 2. Subsequent to the efr-ectin' dat.e of till \1'001 Prodllcts Label- Act of 1 J89 , a.nd more especially since H);,)l, respondent.s have ufactured for introduction into commeJ' , introduced, sold, trans. , distl'ibutt, delivered for sh ipment ancl otTered for sale in 1erce, as "commerce" is define'.l in said \1'001 Products Labeling '-001 products, as "wool products" are defined t.herein. . ie;. Certain of said wool products were misbranded wit.hin t.he and meanjng of Section 4 (a) (1) of said \Vool Products Label- , ami of the Ihdes and Hegulat.ioJls promnlg:lted thereunder they were falsely and rleceptiveJy labeled or tagged with respect HARRY BERNSTEIN & SONS , INC. , ET AL. 919 917 Order to the character aml amount of the constituent fibers contained therein. Among such misbranded wool products were men s suits labeled or tagged by respondents as consisting of 100% wool; whereas, in truth and in fact, said wool products did not consist of 100% wool but con. tained, in addition to wool, a substantial quantity of nonwoolen fibers. PAl!. 4. Certain of said wool products were misbranded within the intent and meaning of Section 4 (a) (2) of said "Tool Products Labeling Act, and of the Rules and Hegulations promulgated thereunder. Among such misbranded wool products were men s suits bearing labels or tags attached by respondents which were neither clear, distinct nor plainly legible as required by Hule 5 of the Hules and Regu. lations promulgated pursuant to said Act in that they were blurred indistinct or ilegible.

PAR. 5. Certain of said wool products were misbranded within the intent and meaning of Section 4 (a) (2) of said ,'\ool Products Label. ing Act and Rule 22 of the Rules and Regulations promulgated thereunder; in that certain samples, swat ches, or specimens of woolen fabrics circulated in commerce by respondents for the purpose of pro. moting and furthering sales, were neither marked, tagged, nor labeled to show their respective fiber content and other information required by law.

CONCLUSION The acts and practices of the respondents LS herein found, were in y violation of the 'W 001 Products Labeling Act of 1939, and of the Rules aud Regulations pursuant thereto, and constituted unfair and decep- , in com- ti ve acts and practices and unfair methods of competition Im,rce. within the intent and meanino' of the Federal Trade Commission Act.

OHDF:R TO CEASE AND DESIST hi" . ur'Lend That the respondent IlalTY Bernstein & Sons, Inc., a (corpo:' atiou, and its oflcer:i, and respondents Harry BeI'stein, Her. bert Berucitein and Leon Bernstein, individually, and as officers of said corporation, and respondents' representatives, agents and em. , in con.ployees, directly or through any corporate 01' other device liectiml with the) introduction or manufaeturc for introduction into commerce, or the of Ie ring for sale, sale, tnmsportation or distribution in commerce, as "commerce" is clefiued in the Federal Trade Commis. sion Act ,nd the 'V 001 Products Labeling Act of 19:\9, of meu s suits or other "wool products" as such products arc defined in and subject to the vVool Products Labeling Aet of 19,\f), which products contain pl1t'port to contain, or in any 'lay are represented a containing "wool 920 FEDERAL TRADE COMMISSIOK DECISIONS Onler GOF. '1. C.

reprocessed wool" or "rensed .11001 " 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 or otherwise identifying such products as to the character or amount of the constituent fibers included therein;

2. Failing to securely affx to or pla.ce on each such product a stamp, tag, label or other means of identifica.tion 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 per centum 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 percenturn or more, and (5) the aggregate oJ all other fibers;

(b) The maximum percentage of the total weight of such wool product of any nonfibrous loading, filing, 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 ofiering for sale, sale, transportation, distribution, or delivery for shipment thereof in commerce, as "cOTnmerce " is defined in the 001 Products Labeling Act of 1939.

3. Using stamps, tags, labels or other means of identification upon such wool products, ,"which are blurred, indistinct or ilegible. 4. Using any samples, s.watches or specimens 0:1 wool products with which to promote sales in commerce, unless labeled or marked to show their respective fiber content and other information required by law. 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 1iV 001 Products Labeling Act of 1939, and PTo'uided fUTtheT That nothing contained in this order shall be construed as limiting any applicable provisions of said Act or the Hules and Regulations promulgated thereunder.

It is fUTtheT ordered That the respondents herein shall, within sixty (60) days after service upon them of this order file with the COIImission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist. Harry Bernstein & Sons, Inc.

a corporation.

By /s/ Harry Bernstein P'fesident.

HARRY BERNSTEIN & SONS , JNC. , ET AL. 921 917 Order /s/ Harry Bernstein Harry Bernstein, individually and f1S an offcer of Harry Bernstein & Sons, Inc., a corporation.

/s/ Herbert Bernstein Herbert Bernstein, individually and as all offcer of Harry Bernstein & Sons, Inc., a corporation.

/s/ Leon Bernstein Leon Bernstein, individually and as an offcer of Harry Bernstein & Sons, Inc., a corporation.

Date: April 2, 1954.

The foregoing consent settlement is hereby accepted by the Federal Trade Commission and ordered entered of record on this 15th day of April 1954.

922 .FEDlmAL TRADE COMMISSION DECISIONS Consent Settlement 50 F. T. C. IN THE MATTER OF A. ELGART &: SONS, INC., ET AL.

CONSKNT SETTLEMENT TN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO",fJrTSSJON ACT AND THE WOOL PIWDUCTS LABEUNG ACT Doeket 618(;. CornrJlaint, Mm' 4, 19S4-Deej.sion Apr. . 1954 Where a corporation and itr two ()ffeers engaged in the manufacture and interstate sale and distribution of wool products as defined in the Wool Products Labeling Act- (a) Misbranded certain men s overcoats in that they did not have affxed thereto stamps, tags, labels, or other means of' identifieation showing the percentage of the fiber weight of wool, fiber other than wool, and other information called for under the Act; and (b) Misbranded said overcoats in that, labeled or tagged as consisting of "100% AU 'Vool" , they contained substantial quantities of reprocessed wool or were composed entirely of such wool:

Held 'l' hat such acts and practices, under the 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 commerce.

Before lift. Webster BallingcT hearing examiner. MT. Georqe E. Steinmetz for the Commission. j1fT. James E. lif mlcha.m of Washington, D. C., for respondents. CON SENT SETTLE-Kl\IENT 1 Pmsuant to the provisions of the Federal Trade Commission Act and the 1V 001 Products Labeling Act of 1939, the Federal Trade Commission, on March 4, 1954, issued and subsequently served its complaint upon the respondents named in the caption hereof, charging them with the use of unfair alld deceptive acts and practices in violation of the provisions of said Acts.

The respondents, desiring that this proceeding b(o disposed of COllsent settlement procedure, provided in Rule V of the Commission Rules of Practice, solely for the purposes of this proceeding, and review thereof, and the enforcement of the order consented to, and :t' The Commission s "Notice" announcing and promulgating the consent settlement 88 published herewitb, follows:

The com;ent settle( mellt tendered b ' the parties in thh; proceeding a copy of which is f'served herewHh, was accepted by the Commission on April 27 , 1954, and onlered entered of record as the Commission s findings as to the facts, conclusions, and order in disposition of this proceeding.

The time for filing- nport of compliance pursuant to the aforesaid order runs from the date of service hereof.

A. ELGART &. SONS, INC., ET AL. 923 922 Findings conditioned upon the Commission s acceptance of the consent settlement hereinafter set forth, and in lieu of answer to said complaint hereby:

1. Admit all the jurisdictional allegations set forth in the complaint. 2. Consent that the Commission may enter the matters hereinafter set forth as its findings as to the facts, conclusion, and order to cease and desist. It is understood that the respondents, in consenting to the Commission s entry of said findings as to the facts, conclusion admitting orand order to cease and desist, specifically refrain from denying that they have engaged in any of the acts or practices stated therein to be in violation of law.

3. Agree that this consent settlement may be set aside in whole or in part under the conditions and in the manner provided in Paragraph (f) of Rule V of the Commission s Rules of Practice. The admitted jurisdictional facts, the statement of the acts and prac. tices which the Commission had reason to believe were unlawful, the conclusion based thereon, and the order to cease and desist, all of which the respondents consent may be entered herein in final disposition of this proceeding, are as follows:

FINDJ:NGS AS TO THE J' ACTS PARAGRAPH 1. Respondent A. Elgart & Sons, Inc., is a corporation organized and existing under and by virtue of the laws of the State of Npw York. Nelson Elgart is President, Benjamin Elgart is Vice- President, and Philip Elgart is Secretary and Treasurer of said respondent corporation. These individuals formulate, direct and control the acts, practices, and policies of said corporate respondent. The offce and principal place of business of all respondents are located at890 Broadway, New York 7, New York.

PAR. 2. Subsequent to the effective date of the Wool Products Labeling Act of 1939 and more especially since .Tanuary 1952, respondents have manufactured for introduct.ion into commerce, introduced sold, t.transported, distributed, delivered for shipment, and offered for sale in commerce, as "commerce" is defined in said Wool Products Labeling Act, wool products, as "wool products" are defined therein. PAR. 3. Certain of said wool products described as men s overcoats were misbranded within the intent and meaning of Section 4 (a) (2) of said Wool Products Labeling Act, and of the rules and regulations promulgat.ed thereunder.

PAR. 4. Certain of said wool products were misbranded within the intent and meaning of Section 4 (a) (1) of said Wool Products Label. ing Act and of t.he rules and regulat.ions promulgated t.hereunder, in Order 50 F. '1'. U.

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 men s overcoats labeled or tagged by respondents as consisting of "100% All \Vool" ; whereas in truth and in fact, said wool products did not consist of 100% wool or all wool, but contained, in addition, substantial quantities of reprocessed wool; else were composed entirely of reprocessed wool, as the terms "wool" and "reprocessed wool" are defined in said Act and the r111es and regulations promulgated thereunder. CONCLUSION The acts and practices of the respondents, as herein found, were and are in violation of the Wool Products Labeling Act of 1939, and of the rules and regulations pursuant thereto, and constitute unfair and deceptive acts and practices and unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST It 1,8 ordered That the respondent A. Elgart & Sons, Inc., a corporation, and its offcers, respondents Nelson Elgart, Benjamin Elgart and Philip Elgart, individually, and as offcers of said corporation and respondents' 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 "commerce" is defined in the Federal Trade Commission Act and the \V 001 Products Labeling Act of 1939, of men s overcoats or other "wool products " as such products are defined in and are subject to the Wool Products Labeling 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 misbranding such products by: 1. Falsely or deceptively stamping, tagging, labeling, or otherwise identifying such products as to the character or amount of the constituent fibers included therein.

2. Failing to securely affx to or place on each such product 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 products exclusive of ornamentation not exceeding five per centum of said total fibcr weight, of (1) wool, (2) reprocessed wool, (3) reused wool, (4) A. ELGART & SONS , INC. , ET AL.

922 Order each fiber other than wool where said percentage by weight is five percentum or more, and (5) the aggregate of all other fibers. (b) The maximum percentage of the total weight of such wool products of any non-fibrous loading, filling, or adulterating material. (c) The name or the registered identification number of the manufacturer of such wool products or of one or more persons engaged in introducing such wool products into commerce, or in the offering for s,11e, sale, transportation, distribution, or delivery for shipment thereof in commerce, as "commerce" is defined in the IV 001 Products Labeling Act of 1939.

Providing that the foregoing provisions concerning misbranding shall not be construed to prohibit acts permitted by Paragraphs (a) and (b) of Section 3 of the ,V 001 Products Labeling Act of 1039. Providing further, that nothing contained in this order shall be construed as limiting any applicable provision of said Act or the Rules and Regulations promulgated thereunder It is fUTtheT order' 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. A. Elgart & Sons, Inc.

a corporation.

By Nelson Elgart Isl Pnsident.

Nelson Elgart Isl Nelson Elgart, individually and as an offcer of A. Elgart & Sons, Inc., a corporation.

/r/ Benjamin Elgart Benjamin Elgart, individu.

ally and as an offcer of A.

Elgart & Sons, Inc. , a corporation.

Is/ Philip Elgart Philip Elgart, individually and as an offcer of A. Elgart & Sons, Inc., a corporation.

Dat(o: March 31 , 1954.

The foregoing consent settlement is hereby accepted by the Federal Trade Commission and ordered entered of record on this 20th day of A april1954.

Syllabus 50 F.