LeAnn Fine Furs, Inc.

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IN 'l'1IE )t1ATTEH LEARN FIKE Figg, INC., ET AL.

CONSE.! T ORDER , ETC. , IN HEGAHD TO 'rIJB ALLEGED VIOLATION OF THE FEDERAL TRADE COi\OnSSION AXD THE FUR PRODUCTS LABELING ACTS Docket 6503. Complaint, Feb. 10, 1956-Decision, May 24, 1956 Consent order requiring furriers in East St. Louis, Ill., to cease violating the Fur Products Labeling Act by failng to disclose in newspaper ads, on attached labels, and on invoices information required by the Act; and in such advertising, naming animals other than those speeificd in the Fur Products Name Guide, and misrepresenting the amount of savings possible to purchasers, Before ilr. Robe"t L. PipeT hearing examiner. 1111'. R. D. YO'tng, Jr. for the Commission. Brady~ Dono'uan Ilatch of East SL Louis, Ill., for respondents. CO:iiplaint Pursuant to the provisions of the Federal Trade Commission Act and thc Fur Products Labeling Act, aud by virtue of the authority vested in it by saiel Acts, the Federal Trade Commission, hn.vil1g reason to be1icve that Learn Fine Furs, Inc., a corporation, and David Snndow and Sylvia Sanc1O\v, individllal1y and as offcers of said corporation, here.inafter referred to as respondents, have violated the provisions of said Acts ami the Rules and Hegulations promulgated under the Fur I' roduds Label ing Act, and it appea.ring to the Commission tlult a proceeding by it in respect thereof would be. in the public interest, hereby issues its complaint, stating its charges in that rcspcct as follows:

PAHAGRAT'JI 1. The corporate respondent Learn Fine Furs, Inc. is a corporation, organized and existing under and by virtue of the laws of the State of Illinois.

Indivic1uall'respondent David Sandow is President and Treasurer and individual respondent Sylvia Sandow is Secretary and Vice- President of the corporate.e respondent. These individual respondents formulate, direct and control the acts, practices and policies of the corporate respondent. The ofiice a.nd principal.l place of business of aU said respondents is located at 3iH, Col1insville Avenue, East St. Louis, Illinois.

PAIL 2. Subsequent to the eirectiyc date of the Fur Products Labeling Act on August D ID52 respondents ha.ve introduced, sold, advertised, offered for sale, transported and distributed fur products ill : , LEARN FINE FURS, IXC. : ET AL. 1405 140,1 Complaint commerce, and have sold, a.advertised, offered for sale, transported and distributed fur products which have beell made in ,whole or ill part of fur which had been shipped and received in commerce, as "COllmerce fur " and "fur products" 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 Labeling Act, in that respondents caused the dissemination in commerce, as "commerec " is defined in the Fur Products Labeling Act, of cert.ain aclvertisement concerning sa.id products by means of nmvspapers and by various other means, which ac1vertise,ments were not, in accordance with the provisions of Section 5 (a) of t.he Fur Product.s Labeling Act, and which advertisement.s were intended to and did aid, promote and assist directly a,nd indirectly, in the sale and offering for sale of said fur prod ucts.

PAR. "1. Among and inclllding the llclvertisements as afore,said, but not limiteel thereto, were advertisements of respondents which appeared in various issues of the East St. Louis Journal, a publication having wide circulation in the State of Illinois fwd ill the adjacellt areas of other Str!.eS of the United States. By means of the aforesaid advertisements, and through othert; of similar import and meaning, not specifically referred to herein, respondents falsely and deceptively advertised the.ir fur products IE that sa.id advertisements:

(a) .Fa.filed to disclose the name or name.s of the animal or anillal producing the fur or furs contain8rl in the fur product, as set forth in the Fur Products Name Guide, in violation of Section 5 (a) (1) the Fur Products Labeling Act.

(b) Failed to disclose tlmt fll products conloined or were composed of secondhand or used fur, whell such was the fact, in violation of Section 5 (a) (2) of the Fur Products Labeling Act. (c) Failed to disclose that fur products conta.ined or ,were composed of bleached, dyed or otherwise artificially colored fur whe, sllch was the fact, in violation of Section 5 (a) (3) of the Fur Products Labeling Act.

(d) Contained the llame or names of an animal or animals other.r than the name or names specified in the Fur Products 1\ ame Guide" in violation of Section 5 (a) (5) of the Fur Products Labeling Act, (e) Failed to disclose the name of the country of origin of importeel furs contained in suc.h fur products in violation of Se,ction 5 (a) (6) of the Fur Produds Labeling Act.

(f) iisreprcscnted, by means of comparative prices and percenta.ge savings claims not based on elll'rent market vnlnes, the amount 451524- 1406 FEDERAL TRADE CO:'LVIrSSIOX DECISIONS Decision 52 F. T. C.

of savings to be effectuated by purchasers of said fur products, in violation of Rule 44 (b) of the aforesaid Rules and Regulations. PAIL 5. Certain of said fur products arc misbranded ill violation of Section 4 (1) of the Fur Products Labeling Act, in that the name or names of the animal or animals producing the fur contained in such fur products were falsely and deceptively identified on the stamps, tags or labels attached to said fur products. PAR. 6. Certain of said fur products are misbranded in that they were not labeled as required mlder provisions of Section 4 (2) of the Fur Products Labeling Act and ill the manner and form prescribed in the Rules and Regulations promulgated thereunder. PAR. 7. Certain of said fur products are misbranded in that respondents, on labels attac.hed thereto, set forth the name of an animal other than the name of the animal that produced the fur, ill violation of Section 4 (3) of the Fur Products Labeling Act. PAR. 8. Certain of said fur products were misbranded in violation of the Fur Products Labeling Act in that they "Iere not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects:

(a) Respondents failed to set forth the names of the pieces of 'Ivhich the fur products were composed in violation of Rule 20 of said Rules and Regulations.

(b) Hespondents failed to disclose tlmt the fur contained in fur products was secondhand or used fur, when such was the fact, in violation of Rules 21 and 23 of said Rules and Re.gulations. (c) Hespondents failed to maintain full and adequate records disclosing the fa-ets upon which comparative prices were purportedly based in violation of Rule 44 (e) of said Hules and Regulations. PAR. 9. Certain of said fur products were falsely and deceptively invoiced, in that they were not invoiced as required under the provisions of Section 5 (b) (1) of the Fur Products L"beling Act, and in the manner and form prescribed by the Hules and Regulations promulgated thereunder.

PAn. 10. The aforesaid acts and practices of respondents wcrc in violation of the Fur Products Labeling Act and of the Rules and Regulations promulgated t.hereunder, and constituted unfair and deceptive acts and practices in commerce under the Federal Trade Commission Act.

INITIAL DECISION BY ROBERT L. PIPER, I-EAHING EX.-\:\:IXER The Federal Trade Commission issued its complaint against the abm e-named respondents on February 10, 1956, charging them with having violated the Fur Products Labeling Act, the rules and regu- LEAXN FINE FURS , INC.) ET AL. 1407 1404 Decision lations issued thereunder, and the Federal Trade Commission Act. After being served with said complaint, respondents appeared by counsel and entered into an agreement. , dated l\1.areh 21 , 1956, containing a consent order to cease and desist disposing or all the issues in this proceeding without hearing. Said agreement has been Sl1b4 mitted to the undersigned, heretofore duly designated to act as hearing examiner herein, for his consideration in accordance with Section 25 of the Hules of Practice of the Commission. Respondents, pursuant to the aforesaid agreement, have admitted all of the jurisdictional allegations of the complaint and agreed that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. Said agreement further provides that respondents waive all further procedural steps before the hearing e.examiner orthe COlll1nission, including the making of findings of fact or conclusions of law and the right to challenge or contest the validity of the order to cease and desist entered in accordance with such agreement. It has also been agreed that the record herein shall consist solely of the COIn plaint and said agreement, that the agreement slmll not become a part of the offcial record unless and until it becomes a part of the decision of the Commission that said agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law a.s alleged in the com plaint, that said order to cease and desist shall have the same force and ei!'ect 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.

This proceeding having now come on for fmal consideration on the complaint and the aforesaid agreement containing the consent order . and it appearing that the order and agreement cover all of the allegations of the complaint and provide for appropriate disposition of this proceeding, the same are hereby accepted and ordered filed upon becoming patt or the Commission s decision pursuant to Sections 3. and 3.25 of the Rules of Practice, and the hearing examiner accordingly makes the following findings, for jurisdictional purposes, and order:

1. Respondent Lea.un Fine Furs, Inc., is a. corporation existjng and doing business under and by virtue of the laws of the State of Illinois, with its offce and principal place of business located at 334 CollinsvilJe A venue, in the City of East St. Louis, State of illinois. Individual respondents have their oilice and principal place of business at the same place as corporate respondent. 1408 FEDERAL TRADE CCn-L\nssTOS DECIf:IONS Order 52 F. T. C.

2. The Federal Trade Commission hits jurisdiction of the subject matter of this proceeding and of the respondents hereinabove named. The complaint states a cause of action against said respondents under the Fur Products Labeling Act and the Federal Trade Commission Act: and this proce,eding is in the interest of the Public. ORDER It is ordered. That respondent Learn Fine Furs, Inc. a corporation, and its offcers, and respondent David Sandow and l'€,spondent Sylvia Sandow, indiv idua11y and as offcers or said corporation, and respondents representatives, agents and employees, directly or through any corporate or other device, ill connection with the introduction into commerce, or the sale, advertising, or offering for sale in commerce, or the transportation or distribution in commerce, of fur products, or in connection with the sale advertising, offering for sale., tI'ansportation, or distribution of fur products which have been made in whole or in part of fur which has been shipped and received in commerce, as "commerce " "fur " and ;;fur products" are defined in the Fur Products Labeling Acl do forthwith cease and desist frolll: A. Falsely or deceptively advertising fur products through the use of any a.advertisement, representation, pubbc announcement, or notice which is intended to aiel, promote or assist, dire.ctly or indirectly, in the sale or oilering for sale of fur products, and which: 1. Fails to disclose:

(a) The name or names of the allinlal 01' animals producing the fur or furs contained in the fur product as set forth in the Fur PTOQUcts ame Guide and as prescribed under the Rules and Regulations; (b) That the fur products cont.ain or are composed of secondhand or used fur when such is a fact;

(c) That the fur products contain or a.re composed of bleached dyed, or otherwise artificially colored fur ""hen such is a fact j (d) The name of the country of origin of imported furs contained in t.he fur products.

2. rakes use of comparative prices or percentage saving claimt: unless such compared prices or claims are based upon the c.urrent market value of the fur product or upon a bona fide compared price at a designated time.

-). Contains the name or names of an animal1 or animab other,r that1 those producing the fur contained in the fur product. B. J\fisbranding fur products by:

1 Order pl1lJli J)ed f\ modified by Commission ortler of July ::T , 1956. LEfu'lN FI::E FURS , lSC., ET AL. 1409 1404 Order 1. Falsely or deceptively labeling or otherwise identifying any such product as to the llame or llames of the animal or animals that produced the fur from which such product was manufactured; 2. Failing to affx j"bels to fur products showing: (a) The name or names of the animal or animals producing the fur or furs contained in the fur product as set forth in the Fur Products Kame Guide nnd ns prescribed under the Rules and Regulations;

(b) That the fur product. contains or is composed of used fur when such is a. fact;

(c) That the fur pl'duct contains or is composed of bleached dyed, or artificially colored fur when such is a fact; (d) That the fur product is composed in whole or in substantial part or pa. : tails, bellies or "\yaste fur "\vhen such is a fact; (e) The nH1ne, or other ide.ntifwfttion issued and registered by the Commission, of one, or more persons who manufactured such fur product for introduction into commerce, introduced it into commerce sold it in commerce advertised or offered it for sale in commerce, or transport-e.d or dist.ributed it in commerce; U) That name of the country of origin of any imported furs used in t.he fur procluc.t.

C. ?\taking comparative pricing claims or representations unless there is mnjntainec1 full and adequate records disclosing the facts upon which such claim3 01' representations arc based. D, Falsely or c1e.c.eptive.1y invoicing fur products by: 1, Fa.filing t.o furnish invoices showing: (a) Tile. name or names of the a.animal or animals producing the fur 01' furs contained in the fur product as set forth in the Fur Products :\ame Guide and as prescribed under the Rules and Regulations;

(b) That the ful' product contains or is composed of used fur when such is a fact;

(c) That the fur product contains or is composed of bleached, dyed or anii:c.ially colored fur when such is a fact; (d) That t.he. fur product is composed in whole or in substantial part of paws, tails, bellies, or wa.ste fur when such is a fact; (e) The name and address of the person issuing such invoices; (f) The name of the country of origin of any imported furs contained.d jn the fur product.

1410 FEDERAL TRADE COMMISSION DECISIO Decision 52 F.

DECISION OF THE COMl\ISSION AXD ORDER TO FILE Iffa' ORT OF C03:IPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 24th day of May, 1956, become the decision of the Commission; and, accordingly: It i8 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. &, , .

FALLS YARK MILLS) INC" ET AL. 1411 Complaint