Weinstein Fur Co.

Text (OCR of the scan at left; may contain errors)

IN THE ~IATTER OF ,VEIN STEIN FUR CO:MP ANY ET AI..

CONSENT ORDER , ETC., IN REGARD TO THE ALLEGED VIOLATION OF THR FEDERAl" TRADE CO~DIISSION AND THE FUR PRODUCTS LABELING ACTS Docket 6415. Oom,plaint, Sept. 20, 1955-Decis'ion, Dec. 1955 Consent order requiring a furrier in Union City, N. J., to cease violating the Fur Products Labeling Act by advertising in newspapers which failed to disclose the names of animals producing certain furs, the country of origin of imported furs, and the fact that fur products were composed of bleached, dyed, or otherwise artificially colored fur; and which' misrepresented geographical origin of furs, prices, and value of fur products :md products as being from the stock of a liquidating business among other things.

Before 1117'. Frank H iel' hearing examiner. .l! )' John J. ill cN ally for the Commission. CO~IPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that "'Vein stein Fur Company, a corporation, and Stanley "\tV. "\tVeinstein, individually and as Secretary and l\1manager of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the rules and regulations promulgated under the Fur Products Labeling 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 it:-.. charges in that respect as follows:

PARAGRAPH 1. Respondent ,Yeinstein Fur Company is a corporation organized under the laws of the State of New tTersey, with its office.e and principal place of business located at 4522 Bergenline Avenue, Union City, New Jersey. Individual respondent Stanley V\T ,Yeinstein is Secretary and :Manager of said corporate respondent and formulates, directs and controls the acts and practices of said corpol' ate respondent. Said individual respondent has the same office and princi pal plac.e of business as corporate respondel\ m. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9 , 1952, the respondents have sold, ach-ertised C'ffered for sale, transported and distributed fur products \\"hith have been made in ,,~hole or in part of fur which had been shipped and 570 FEDERAL TRADE COMl\IISSION DECISIONS Complaint ri2 F. T. C. received ill commerce, as "commerce fur~' and " fur product" are defined in the Fur Products Labeling Act.

PAR. 3. Certain of said fur products were falsely and deceptively advertised, in violation of the Fur Products Labelino' Act in that respondents caused the dissemination of certain advertisements concerning said products by means of ne\Yspapers, ,,'hieh advertisements were not in accordance with the provisions of Section 5 (a) of the Fur Products Labeling Act and of the R,ules and Regulations prol11ulgated lUlder said Act, and which advertisements were intended to and did aid, promote and assist, directly and indirectly, in the :sale and offering for sale of said fur products. PAR. 4. Among and iilclucling the advertisements as aforesaid, but ~llot limited thereto, were advertisements of respondents which appeared in various issues of the '~J ersey J journal ~' the "Palisadian and the "Hudson Dispatch'~ ; publications having a ,vide circulation in the State of New Jersey.

PAR. 5. Certain of the aforesaid advertisements falsely and deceptively failed to disclose:

(a) The name or names of the animal or animals producing the fur or furs contained in the fur products, as set forth in the Fur Products Name Guide and as prescribed under the Rules and Regulations, in violation of Section 5 (a) (1) of the Fur Products Labeling Act. (b) That fur products contained or were composed of bleached dyed or otherwise artificially colored fur, when such was the fact, in violation of Section 5 (a) (3) of the Fur Products Labeling Act. (c) The name of the country of orig,in of imported frus contained in fur products, in violation of Section 5 (a) (6) of the Fur Products Labeling Act.

Certain of the aforesaid advertisements were in violation of the Fur Products Labeling Act and of the Rules and Regulations promulgated thereunder in that they falsely and deceptively: (d) Set forth certain of the required information in abbrey inted form, in violation of Rule 4 of the said Rules and Regnbtiolls. (e) Used words or terms connoting a false geographical Origin of furs contained in fur products, in violation of Hule 'lor the said Rules and Regulations.

(f) J\1isrepresented prices of fur products as having been reduced from regular or usual prices, ",here the regular 01' usual prices were in fact fictitious, in that they 'were not the prices at ",which said merchandise was usually sold by respondents in the recent regular course of the,ir business, in violation of Rule 4:1: (A) of the said Rules and I~egnlations.

(g) WEINSTEIN FUR CO. , ET AL. 571 569 Decision Misrepresented, by means of comparative prices and percentage savings claims not based on current market values, the amount of savings to be effectuated by purchasers of said fur products, in violation of Rule 44 (B) of the said Rules and Regulations. (h) ~1:isrepresented the aggregate value of the fur products being offered for sale by respondents, in violation of Rules 44 (C) and 49 of the said Rules and Regulations.

(i) l\1:isrepresented fur products as being from the stock of a business in a state of liquidation, in violation of Rule 44 (G) of the said Rules and Regulations.

PAR. 6. Respondents, in making the claims and representations as to value referred to in subparagraphs (f) through (h) inclusive of Paragraph 5 hereof, have failed to maintain full and adequate records disclosing the facts upon which such claims and representations were purportedly based, in violation of the Fur Products Labeling Act and of Rule 44 (E) of the Hules and Regulations promulgated thereunder. PAR. 7. Certain of said fur products were misbranded in that they were not labeled as required under the. prm"isions of Section 4 (2) the Fur Products Labeling Act, and in the manner and form prescribed by the Rules and' Regulations promulgated thereunder. PAR. 8. The aforesaid acts and practices of respondents, as herein alleged, were in violation of the Fur Products Labeling Act and of the Rules and Regulations promulgated thereunder, and constituted unfair and deceptive acts and practices under the Federal Trade Commission Act.

INITIAL DECISION BY FRANK HIER, I-IEARING EXAMINER Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, the Federal Trade Commission on September 20, 1955, issued and subsequently served its complaint in this proceeding against respondents ,Yeinstein Fur Company, a New Jersey corporation with its office and principal place of business located at 4522 Bergenline Avenue, Union City, New Jersey, and Stanley vV. vVeinstein, individually and as Secretary and :Manager of said corporation, whose office and principal place of business is the same as that of said corporate respondent and who formulates, directs and controls the acts and practices of the corporate respondent. On October 24, 1955, there "'as submitted to the undersigned )10:11'ing examiner an agreement between respondents and counsel sup: ~()lting the complaint providing for the entry of a consent order. By the terms of said agreelilent, respondents admit an the jurisdictional facts alleged in the complaint and agree that the record may ue 572 FEDE~AL TRADE COMMISSION DECISIONS Order 52 F. T. O. taken as: if findings of jurisdictional facts had been duly made in accordance with such allegations; waive any further procedural steps before the hearing examiner and the Commission; waive the making of findings of fact or conclusions of law; and waive all of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement. Such agreement further provides that it disposes of all of this proceeding as to all parties; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and this agreeme,nt; that the latter shall not become a ,part of the official record unless and until it becomes a part of the 'decision of the Commission; that the agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint; and that the. following order to cease and desist may be entered in this proceeding by the Commission without further notice to respondents and when so entered it shall have the same force and effect as if entered after a' full hearing and may be altered, modified or set aside in the manner provided for other orders; and that the complaint may be used in construing the terms of the order. The hearing examiner having considered the agreement and proposed order and being of the opinion that they provide an appropriate basis for settlement and disposition of this proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and the following order issued:

1. Respondent ,Yeinstein Fur Company is a corporation organized existing and doing business under the laws of New .Jersey, '\with its (Jffice and principal place of business located at "1522 Bergenline Avenue, Union City, Ne'\y ~Tersey. Respondent Stanley ,V. vYeinstBin is Secretary and :Manager of said corporation '\"ith his office and principal place of business located at the same address. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the. respondents, and the proceeding is in the public. interest.

ORDER I t ,is ordered That respondents, ",Yeinstein Fur Company, a corporation, and Stanley 'V. ,Yeinstein, individually and as an officer of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the sale, advertising, offer for sale, transportation or distribution of fur products ,,-hi('h have been made in whole or in part of fnr ",hleh had been shipped and received in commerce, as "commerce ((( (/) WEINSTEIN FUR CO. , ET AL. 573 569 Order "fur " and "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

affix labels to fur (1) ~1:isbral:1ding fur products" by failing' to products showing:

a) The name or names of the animal or animals producing the fur or furs contained in the fur products, as set forth in the Fur Products N all1e Guide and as prescribed under the Rules and Regulations;, fur when b) That the fur product contains or is composed of used such is the fact;

(c) That the fur product contains or is composed of bleached dyed, or othenvise artificially colored fur when such is a fact; (d) That the fur product is composed in whole or in substantial part of paws, tails, bellies or waste fur when such is a fact; e) The name, or other iclentifieation issued and registered by the such furCommission of one. or more persons who manufactured product for introduction into commerce, introduced it into commerce orsold it in commerce, advertised or offered for sale in commerce, transported or distributed it in commerce; (f) ' The name of the country of origin of any imported furs used i 11 the fur product.

(2) Falsely or deceptively advertising fur products through the use of any advertisements, representation, public announcement or notice ';which is intended to aid, promote or assist, directly or indirectly in the sale or offering for sale of fur products, and which: Fails to disclose the' name or names of the animal or animals producing the fnr or furs contained in the fur products as set forth in the Fur Products Name. Guide and as prescribed under the Rules and Hpgnlations;

(7J) Fails to disclose that fur products contain or are composed of bleached, dyed, or othenvise artificially colored fur when such is the fact.

) l;"'nile to disclose the name of the country of origin of imported flll'~ contained in fur products;

d) Sets fort h required information in abbreviated form; f) F sps ,yards or terms connoting a false geographical origin of furs containp(l in fur products;

(f) nl'prC~_;ellts, directly or by implication: product is any (1) That the regular or usual price of any fur ::mount \which is in excess of the price at which such product had been offered for sale in good faith or sold by respondents in the recent regular course of their business.

(2) That a sale price enables purchasers of fur products to eft'petnate any savings in excess of the difference bet\yeen the said price 4;-;1 ;)~4- ..GH--- Decision 52 F. T. C.

and the price at which comparable products were sold during the time specified or, if no time is speeified, in excess of the difference between said price and the current price at which comparable products are sold;

(3) That the aggregate value of fur products offered for sale is greater than is the fact;

(4) That any of such products were from the stock of a business in a state of liquidation, contrary to the fact. (3) ~lakes the pricing claims or representations referred to in Paragraph (f), (1), (2) and (3), inclusive, above, unless there are Inaintained by respondents full and adequate records disclosing the facts upon which such claims and representations are based, as required by R.ule 44 (e) of the Rules and R.egulations. DECISION OF THE COl\nnSSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Sec. 3.21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 8th day of December, 1955, become the deeision of the Commission; and aecordingly :

1 t is ordel'ed 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 data.il the manner and form which they have complied with the order to cease and desist. HALL-MARK STUDIOS 575 Complaint