Arkwright Accessories, Inc.

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IN THE MATTER OF ARIrWRIGHT ACCESSORIES, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAJ\'IMABLE FABRICS ACTS Docket 6402. Complaint, A1tg. 24, 1955-Decision, Jan. , 1956 Consent order requiring an importer in New York City to cease violating the Flammable Fabrics Act by importing into the United1 States from Japan and selling sill\: scarves so highly inflammable as to be c1angerous when worn.

Before Mr. James A.. Purcell hearing examiner. Mr. Brock1nan H O1'ne for the Commission. Marlin Sandberg, of New York City, for respondents. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Flammable Fabrics Act, and by virtue or the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Arkwright Accessories, Inc., a corporation, and Arthur Olshan, individually and as an officer of said corporation hereinafter referred to as respondents, have violated the provisions of said Acts, and the rules and regulations prOlnulgated thereunder and it appearing to the Commission that a proceeding by it in respect thereor would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondent Arkwright Accessories, Inc., is a New York corporation. Respondent Arthur Olshan is president and sec- The in-retary-treasurer of respondent Arkwright Accessories, Inc. dividual respondent formulates, directs, and controls the policies of said corporation. The business address of both respondents is 49 West 37th Street, New York, New York.

PAR. 2. Respondents, subsequent to July 1, 1954, the effective date of the Flammable Fabrics Act, have imported into the United States articles or wearing apparel, as the term "articles of wearing apparel" is defined in the Flammable Fabrics Act, which, under the provisions of Section 4 of said Act, as amended, were so highly flammable as Respondents have sold to be dangerous when worn by individuals. offered for sale, introduced, delivered for introduction, and transas "commerce" is ported and caused to be transported in commerce, 044 FEDERAL TRADE COMMISSIOK DECISIONS Decision 52 F. T. C. defined in the Flammable Fabrics Act, the said articles of wearing apparel, imported as aforesaid. Respondents have also transported and caused to be transported the said articles of wearing apparel imported as aforesaid, for the purpose of sale and delivery after sale in commerce.

Among the articles of wearing apparel mentioned hereinabove were silk scarves manufactured in Japan.

PAR. 3. Respondents, in the course of their business, are engaged in competition in commerce with others in the sale and offering for sale of scarves which are not flammable "articles of wearing apparel" under the definition of the Flammable Fabrics Act. PAR. 4. The acts and practices of respondents were and are violation of the Flammable Fabrics Act and of the rules and regulations promulgated thereunder, and as such constitute unfair methods of competition and unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

INITIAL DECISION BY J Al\fes A. PURCELL, HEARING EXAl\IINER The complaint in this proceeding issued on August 24, 1955, charges the respondents, Arkwright Accessories, Inc., a corporation existing by virtue of the laws of the State of New York, and Arthur Olshan individually and as an officer of the respondent corporation, with violation of the Federal Trade Commission Act and of the Flammable Fabrics Act and the Rules and Regulations promulgated thereunder, in connection with the importation, sale, offering for sale and transporting in interstate commerce of articles of wearing apparel which articles were so highly flammable as to be dangerous when worn by individuals.

After the issuance of said complaint the respondents entered into an agreement for consent order with counsel in support of complaint disposing of all the issues in this proceeding, which agreement was duly approved by the Director of the Bureau of Litigation. It was expressly provided in said agreement that the signing thereof is for settlement purposes only and does not constitute an admission by respondents that they have violated the la as alleged in the complaint.

By the terms of said agreement, the respondents admitted all the jurisdictional allegations of the complaint and agreed that the record herein may be taken as if the Commission had made findings of jurisdictional facts in accordance with such allegations. By said agreement the parties expressly waived a hearing before the hearing ,examiner or the Commission, the making of findings of fact or con- ARKViTRIGHT ACCESSORIES , INC., ET AL. 645" 643 Order clusions of law by the hearing examiner or the Commission, the filing of exceptions and oral argument before the Commission, and all further and other procedure before the hearing examiner and the Commission to which the respondents may be entitled under the Federal Trade Commission Act or the Rules of Practice of the Commission.

By said agreement, respondents further agreed that the order to cease and desist issued in accordance with said agreement shall have the same force and effect as if made after a full hearing, presentation of evidence and findings and conclusions thereon, and specifically waived any and all right, power or privilege to challenge or contest the validity of such order.

It was further provided that said agreement~ together with the complaint, shall constitute the entire record herein; that the complaint herein may be used in construing the terms of the order issued pursuant to said agreement; and that the said order may be altered modified or set aside in the manner provided by the statute for the orders of the Commission.

Said agreement recites that respondent, Arkwright Accessories, Inc., is a corporation existing under and by virtue of the laws of the State of New York; that respondent Arthur Olshan is an individual and is President and Secretary-Treasurer of the corporate respondent and as such formulates, directs and controls the policies of the corporate respondent. The office and principal place of business of both respondents is located at No. 49 'Vest 37th Street, New York, New York.

The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provides for an appropriate disposition of this proceeding, the same is hereby accepted and is ordered filed upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Rules of Practice, and in consonance with the terms of said agreement, the 'hearing examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and' of the respondents named herein, and that this proceeding is in the interest of the public, and issues the following order: ORDER I t is ordered That the respondent Arkwright Accessories, Inc., a corporation, and its officers, and respondent Arthur Olshan, individually and as an officer of said corporation, and respondents' repre~entatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from: Decision 52 F. T. C. 1. (a) Importing into the United States; or (b) Selling, offering for sale, introducing, delivering for introduction, transporting or causing to be transported, in commerce, as commerce" is defined in the Flammable Fabrics Act; or (J) Transporting or causing to be transported, for the purpose of sale or delivery after sale in commerce;

any article of wearing apparel, which, under the provisions of Section 4 of the said Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals. DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 7th day of January, 1956, become the decision of the Commission; and, accordingly :

I t 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. g, REPUBLIC NOVELTY CO. , INC. , ET AL. 647 Complaint