Crown Manufacturing Co., Inc.

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In THe Marrer or CROWN MANUFACTURING CO., INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 6796. Complaint, May 14, 1957—Decision, May 238, 1957 Consent order requiring two associated manufacturers in Philadelphia and New York City, respectively, to cease violating the Wool Products Labeling Act by labeling as “100% Wool’, interlining materials which contained substantial quantities of fibers other than wool, and by failing in other respects to conform to the labeling requirements of the Act. Mr. William M. King for the Commission.

Mr. Stanley I, Sheerr and Mr. Harry Swavely, of New York, N.Y., and Mr. David B. Carmel, of Manchester, N.H., for respondents. Intrrat Decision py Asner E. Liescomsp, Heartnc Examiner The complaint herein was issued on May 14, 1957, charging Respondents with misbranding their wool products, consisting of interlining materials, by falsely and deceptively representing the character and amount of the constituent fibers contained therein, and by failing to stamp, tag or label such products, in violation of §4(a) (1) and §4(a) (2) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, and of the Federal Trade Commission Act.

On May 15, 1957, Respondents and counsel supporting the complaint entered into an Agreement Contaming Consent Order To Cease and Desist, which was approved by the Director and the Assistant Director of the Commission’s Bureau of Litigation, and thereafter submitted to the Hearing Examiner for consideration. Respondent Crown Manufacturing Co., Inc., is identified in the agreement as a Massachusetts corporation, with its principal place of business at 4301 Torresdale Avenue, Philadelphia, Pennsylvania; Respondent Sheerr Bros. and Company as a Delaware corporation, with its principal place of business at 1407 Broadway, New York, New York; Respondents Stanley I. Sheerr and Harry Swavely as officers of said corporations, with the same address as Respondent Sheerr Bros. and Company; and Respondent David B. Carmel as a director of the corporate Respondents, his address being Crown Manufacturing Co., Inc., Manchester, New Hampshire. Respondents admit all the jurisdictional facts alleged in the complaint and agree that the record may be taken as if findings of CROWN MANUFACTURING CO., INC., ET AL. 1079 1078 Order jurisdictional facts had been duly made in accordance with such allegations.

Respondents, in the agreement, waive service upon them of the complaint herein, as well as any further procedure before the Hearing Examiner and the Commission; the making of findings of fact or conclusions of law; and all the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement. Alll parties agree that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and the agreement; that the order to cease and desist as contained in the agreement 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; that the complaint herein may be used in construing the terms of said order; and 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.

After consideration of the allegations of the complaint and the provisions of the agreement and the proposed order, the Hearing Examiner is of the opinion that such order constitutes a satisfactory disposition of this proceeding. Accordingly, in consonance with the terms of the aforesaid agreement, the Hearing Examiner accepts the Agreement Containing Consent Order To Cease And Desist; finds that the Commission has jurisdiction over the Respondents and over their acts and practices as alleged in the complaint; and finds that this proceeding is in the public interest. Therefore, It is ordered, That Respondents Crown Manufacturing Co., Inc., a corporation; Sheerr Bros. and Company, a corporation, and their officers; and Stanley I. Sheerr and Harry Swavely, individually and as officers of said corporations; and David B. Carmel, individually and as a director of said corporations; and Respondents’ representatives, agents or 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 Wool Products Labeling Act of 1939, of interlining materials or other “wool products”, as such products are defined in and 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”, do forthwith cease and desist from misbranding such products by:

Decision 53 F.T.C.

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 affix 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 product, exclusive of ornamentation not exceeding five percentum of said total fiber weight, of (1) wool, (2) reprocessed wool, (3) reused wool, (4) each fiber other than wool where said percentages by weight of such fiber is five percentum or more, and (5) the aggregate of all other fibers;

(b) The maximum percentages of the total weight of such wool product of any non-fibrous loading, filling, 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 offering for sale, sale, transportation, distribution or delivery for shipment thereof in commerce, as “commerce” is defined in the Wool Products Labeling Act of 1939.

It is further ordered, That Respondents Crown Manufacturing Co., Inc., a corporation; Sheerr Bros. and Company, a corporation; and their officers; Stanley I. Sheerr and Harry Swavely, individually and as officers of said corporations; and David B. Carmel, individually and as a director of said corporations, and Respondents’ representatives, agents or employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of interlining materials, or any other materials, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting the constituent fibers thereof on invoices or other shipping memoranda or in any other manner.

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 23rd day of May, 1957, become the decision of the Commission; and, accordingly:

It is ordered, That the above-named respondents 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.

CAMDEN SPINNING CO. ET AL. 1081 Decision