1. Spiew Arc & Sons, Inc.

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IN THE latter OF 1. SPIEW Arc & SONS, INC., ET AL.

COXSE ,n ORDER IN REGARD TO 'file ALLEGED VIOL.l'lTlO OF THE FEDERAL TRADE CO:\IlIISSION ACT Docleet 6220. Complaint, June 24, 1951-Decision, Oct. , 1954 Consent order requiring manufacturers of Armed Service type jackets, in Kew Yorlc City to cease representing falsely, by use of colors and styles and of affed markings, insignia, labels, etc., that said outer garments were manufactured for the U. S. Armed Forces and in accordance with the Armed Forces specifications.

Before Afr. .lohn Lewis hearing examiner. Jh. Terral A. Jordan for the Commission. Cha1Jlbers Cha7nbeT8 of New York City, for respondents. CO::IPLAIX' 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 1. Spiewak & Sons Inc., a corporation, and Philip Spiewak, Gerald Spiewak, and Robert Spiewak, individually and as oiIcers of said corporation, 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 follo"Ts: P All\GRAPH 1. Respondent I. Spiewak & Sons, Inc., is a, corporation, organized, existing and doing business under and by virtue of the laws of the State of New .Jersey with its offce and principal place of business located at 1186 Broadway, New York, Kew York. Respondents Philip Spiewak, Gerald Spiewak and Robert Spiewak are respectively President, Vice President and Treasurer of said corporate, respondent. These individuals acting in cooperation with each other formubte, direct and control all of the policies, acts and practices of said corporation. The address of said individual respondents is the sa,me as that of corporate respondent, PAR. 2,. Respondents ate now, and have been for more than one year last past, engaged in the Inallufactul'e, sale and distribution of heavy outer"Tear, including imHation Armed Service type jackets, in commerce, among and bcbveen the various States of the -Cnited St.ates I. SPIEWAK & SONS, INC. , ET AL. 401 400 Complaint and in the District of Columbia. Respondents maintain, and at all times mentioned herein ha.ve mainta.ined a substantial course of trade in said ga.rments, in commerce among and between the various States of the United States.

PAR. 3. The garments manufactured, sold and distributed by respondents in the course and conduct of their business as aforesaid closely resemble the jackets and outer garments issued and furnished to members of the L:united States Armed Forces in color, pattern and yle. Respondents also cause to be affxed to said garments certain markings, insignia, lahels and tags which purport to designate the branch of service, model, contract number, specification number, stock number and directions as to the manner of use in substantially the same form, kind and manner as the markings, insignia, labels and tags prescribed and used by the United States Armed Forces on similar and like garments. Typical of the words and terms appearing on the markings, labels and tags, are as follows: TYPE 1\ Contract :'0. ISS l\gr 212630 Fonl 'Yeather Jacket Jacket, Field JI-1943 This Jacket increases greatly the warmth of clothing worn under it in cold and temperate climates because it is w'indp1" Ooj, USE: Sweat wil chil you; therefore, when you start to get hot, open collar and loosen cuffs and waist: If that is not enough, remove clothing worn underneath.

Waist Drawst1"ng Pull drawstring up anrl loop each end to keep proper adjustment; in ,yarm weather or when oyerheatecl, tie dnnystring across body and opell the Ullbuttoned jacket.

Specification #lss 3098, Typical of insignia llsed on certain of said garments is that of the Air Forces, consisting of 11 fiyc point star with two wings enclosed ill a circle, with the words "Air Forces:' appearing immediately above. PAR. 4. Through the use of said colors, patterns and styles and the markings, insignia, labels and tags, as described in Paragraph hereof, respondents have represented and implied and do represent and imply that said jackets and outer garments, manufactured, sold and distributed by them in commerce were ma,nufactured for the United States Armed Forces Hnd in ac.cordance with spcciftcations of said Armed Forces.

PAR. 5. Said representations ami implications are false misleading and deceptive. In truth and in fact, respondents' said garments 402 FEDERAL TRADE COMMISSION DECISIOC\S Decision 51 F.

were neither manufactured for the lJnitecl States Armed Forces nor in accordance with specHications of said Armed Forces. PAIL 6. By selling and distributing to \yholesalel's and dealers said products manufactured as aforesaid and having affxed to them the markings, insignia, tags and labels hel'cillabO\' 8 described, rcspondents furnish to such holesalcrs and cleaners the means and inst.rumentalities through and by -which they may mislead and deceive the purchasing puhhc as to the origin, kind, type, and style of their said jackets and outer garments.

m, 7. In the course and conduct of their business respondents are in direct and substantial competition with other corporations and firms and individuals engaged in the sale in commerce of jackets and 'outer garments.

PAH. 8. The sale and distribution in commerce of said garments in the color, style, design and \,ith markings, as hereinabove allrged has had and now has the tendency and capacity to Lld does mislead a substantial portion of the purchasing public into the bel ief that s tid ga.nnents \were Inanufactnred for the Cnited States Armed Forces ancl in accordance \with spe,cifica.tions of said Armed Forces. As a l'e ult thereof, substantial trade in commerce has been unfairly diverted to respondents from their competitors and substantial injury has been done to competition in commerce.

PAR. 9. The aforesaid acts and practices of the respondents, as herein alleged, are all to the prejudice and injury of tile public and of respondents' cOlnpetitol's and constitute unfair alll deception' acts and practices anc1l1nfair methods of competition, in commerce, within the. intent and meaning of the Fecle,ral Trade Commission Act. DECISlOX OF THE CO)DIISSIOX Pursuant to Rule XXII of t.he Commission s Hules of Practice. and as set forth in the Commission s ';Decision of the Commission and On1el' to File Heport of Compliance :: datr(l October lD. 195J , till initial decision in the instant matter of hearing examiner J ohn Le\yj as set. out as follows, became on that. (hte the decision of the Commission.

TXITIAL DEClSlOX BY ,T01-IX LE\VlS : Ile.\HIXG EX \.lI-=' Pursuant to the provisions of the Federal Tracie Commission Acl the _ edcral Trade Commission on June 24, 1854, issued and subsequently served its complaint upon the respondents named in the C,-lpt.ion hereof, charging tl1em with the use of unfair and deceptive ;lct :llld practices anclllnfall' methods of competition in commerce in \"io- 1. SPIEWAK & SONS, mc" ET AL. 403 400 Findings lation of the provisions of said Act. Thereafter, respondents appeared by counsel and entered into a stipulation for, consent order, dated August 11, 1954, Said stipulation provides that the answer heretofore filed by respondents is withdrawn and expressly \vaives a hearing before a hearing examiner or the Commission, the making of findings of fact or conclusions of la\v by the hearing examiner or the Commission, the fiing of exceptions and oral argw11ent before the Commission, and all further and other procedure before the hearing examiner or the Commission to "which respondents may be entitled under the Federal Trade Commission Act or the Rules of Practice of the Commission. I respondents consent to the entry of an order to cease and desist in the form provided for in sltid stipulation which shall have the same force and effect as if made after a full hearing, presentation of evidence and findings and conclusions thereoIl, and waive any and alll'ight, power or privilege to challenge or contest the validity of said order. Said stipulation further provides that the signing thereof is for settlement purposes only a.nd docs not constitute an admission of violation by respondents except that respondents admit all the jurisdictional anegations of thc complaint. The said stipulation having been submitted to the above-named hearing examiner, theretofore duly designated by the Commission for his consideration in accordance with Rule V of the Commission Rules of Practice, and it appearing that said stipulation provides for an appropriate disposition of this proceeding, the same is hereby accepted and ordercd filed as part of the record herein by the hearing examiner who, after considering the complaint and said stipulation finds that this proceeding is in the interest of the public and makes the following:

.JLRISDICTIOX AL FINDINGS PARAGRAPH 1. Respondent 1. Spiewak & Sons, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of 11 ew Jersey, with its offcc and principal place of business located at 1186 Broadway, New York, New York. Respondent Philip Spiewak, Gerald Spiewak, and Robert Spiewak arc president, vice president, and treasurer, respectively of said corporate respondent. The address of said individual respondent is the same as that of the corporate respondent.

PAR. 2. Respondents are now, and have been for more than one year last past, engaged in the manufacture, sale and distribution of heavy outerwear garments, including various armed service type jackets, in commerce, among and between the va.rious States of the United States and in the District of Columbia. Respondents main- 404 FEDERAL TRADE COM.'\ISSION DECISIONS Order 51 F. T. C.

tain, and at all times mentioned herein have maintained, a substantial course of trade in said garments, in comm-eTce among and between the various States of the linited States.

ORDER It is ordered that respondents I. Spiewak & Sons, Inc., a corporation and Philip Spiewak, Gerald Spiewak, and Robert Spiewak, individually and as officers of said corporate respondent, and respondents agents, representatives and employees, directly or through any corporate or other device, in the offering for sale, sale or distribution of wearing apparel in commerce, as "commerce" is defined in the Federal Trade Commission Act, or of any other garments, do forthwith cease and desist from representing, directly or by implication, by marking, branding, labeljng, tagging, or in any other manner contrary to fact that such merchandise was manufactured for the Armed Forces of the United States or in accordance with specifications of said Armed Forces.

ORDER TO FILE REPORT OF co:vrPLIAXCE 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 Cas required by said declaratory decision and order of October 19 , 1954). &, ARGUS CAMERAS , INC. 405 Order