The House of Kudra Furs et al.

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IN THE J\1:A TTER OF THE I-IOUSE OF I\TjDHA FURS ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\DIISSION AND TI-IE FUR PRODUCTS LABELING ACTS Docket 6,'30. Coli/plaint, Feb. 195,' Decision, Jllly 1D5,' Consent order requiring a flllTier in Trenton .1" to cease violating the Fur Products Laheling Act by invoicing which named an flnimal other than that producing n particular fur; by advertising in ne,vspapers which falseJ~' rppresente(1 the prices of fur products as reduced when the 80called regular prices were fictitious, find misrepresented comi)arative prices find percentage savings and nllues; and by failing in other respects to conform to the requirements of the Act. ill)'. l1w' .1! E. 111iddleton ~ Jr. supporting the complaint. G'ill Phelan by Jll'. Ednwnd J. Phelan of Trenton, N. , for respondents.

INITIAL DECISION BY .TOSEI'H CALLAWAY. I-leaning EXAl\IINER The Federal Trade Commission issued its complaint against the above. named respondents on February 21, 1957 charging them with violation of the Federal Trade Commission Act and the Fur Products Labeling Ac.t and the llules and Hegulations promulgated uncleI' the last mentioned act as set forth in said c.complaint. After service of the complaint respondents on ~day 8 , 1957 entered into an agreement with counsel supporting the complaint for a consent order to cease and desist from the practices complained of, '\which agreement purports to dispose of an the issues in this proceeding without hearing. This agreement has been duly approve,d by the Assistant Director and the Director of the Bureau of Litigation and has been submitted to the undersigned, heretofore designated to act as hearing examiner herein, for his consideration in accordance '\,ith Rule 3. 25 of the Commission s Rules of Practice. Respondents in the aforesaid agreement have admitted an the jurisdictional facts alleged in the complaint and have agreed that the, rpeord may be taken as if findings of the jurisdictional facts had been duly made in accordance ",ith such allegations. Said agreement provides further that respondents \Taive a11 further proc.edural steps before the hearing examiner or the Commission, inc.1uclinf!" the making of findings of fact or conclusions of law and the right to ehnllenge or contest the validity of the order to cease and desist entered in accordance ,with the agreement. It has also been agreed that. the record herein shall consist solely of the CO111- THE HOUSE OF KUDRA FURS ET AL.

Order plaint and said agreement, that the agreement shall not become part of the official 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 as alleged in the complaint, that said order to cease and desist 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 of the Commission and that the complaint may be used in construing the terms of the order.

This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing the consent order and it appearing that the agreement and order cover all the allegations of the complaint and provide for appropriate disposition of this proceeding, the order and agreement are hereby accepted and ordered filed upon becoming part of the Commission s decision pursuant to Sec.tions 3.21 and 3.25 of the Rules of Practice and the hearing exami':ner accordingly makes the following fuldings for jurisdictional purposes and order:

1. Respondent The House of Kudra Furs is a corporation existing and doing business under and b~7 virtue of the laws of the State of New .Tersey, with its office and principal place of business located at 999 South Broad Street, in the City of Trenton, State of New Jersey.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents named. The complaint states a cause of action against said respondents under the Federal Trade Commission Act and the Fur Product Labeling Ad and the R.ules and R,egulations promulgated under the last mentioned aet. ' I'his proceeding is in the public interest.. ORDER It 1:8 O1yle1' That respondent The House of Kudra Furs, a corporation, and its officers, and respondent George ~f. I\:udra, indivic1ual1y and as an officer of said corporation, and respondents representatives, agents and employees, direc.tly or through any corpm' ate or other device, in connection with the introduction into commerce, or the sale., advertising or offering for sale in commerce or the transportation or distribution in c.commerce of fur products or in connection with the sale, advertising, offering for sale, transportation, or distribution of fur products which have been made in '\"hole or in part of fur which has been shipped and received in Order 54 F.

commerce, as "commerce fur" and "fur products " are defined the Fur Products Labeling Act, do forthwith cease and desist from: A. :Misbranding fur products by:

1. Failing to affix labels to such 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 Name Guide and as prescribed under the rules and regulations;

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

(c) That the fur product contains or is composed of bleached fur, when such is a fact;

(d) That the fur product is composed in whole or in substantial part of paws, tails, beHies or waste fur, when such is a fact; (e) The name, or other identification issued and registered by the Commission, of one or more persons who manufactured such fur product for introduction into commerce, introduced it into commeree, sold it in commerce, advertised or offered it for sale in eommerc.e, or transported or distributed it in commerce; (f) The name of the country of origin of any imported furs used in the fur product.

2. Setting forth on labels attached to fur products required information which is mingled with non-required information. 3. Failing to set forth on labels the information required by Rule 36 of the Rules and Regulations promulgated under the Fur Products Labeling Act, when a fur product is composed of two or more sections containing different animal furs. 4,. Failing to affix labels to fur products showing item numbers required under Rule 40 of the aforesaid Rules and Regulations. B. Falsely or deceptively invoicing fur products by: 1. Failing to show:

(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 Name Guide. and as prescribed under the rules and regulations:

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

(c.) That. the fur product c.contains or is c.omposec1 of bleached clved or othenyise artific.i~l1y colored fur. when suc.h is a fact; (c1) That. the fur product is eomposec1 in whole or in substantial part of paws, tails, bellies, or waste fur, when suc.h is a fact; (e) The name and address of the, person issuing such invoiees; THE HOUSE OF KUDRA FURS ET AL.

Decision (f) The name of the country of origin of any imported furs contained in a fur prochict.

C. Falsely or deceptively advertising fur products, through the use of a~ny advertisement, representatjon, 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: 1. Represents directly or by implication that the regular or usual price of any fur product is any amount which is in excess of the price at which respondents have usually and customarily sold such products in the recent, regular course of their business; 2. Represents direct.Jy or by implication that fur products are of a certain value or quality unless such representations or claims are true in fact;

3. :Makes use of comparative prices and percentage savings claims unless such compared prices or claims are based upon the current market value of the fur product or upon a bona fide compared price at n, designated time;

4. :Makes pricing chims or representations of the type referred to in Paragraphs C-l, 2 and 3 above unless there are maintained by respondents full and adequate records disclosing the facts upon which such claims or representations are based. DECISION OF TI-IE CO)BIISSION AND ORDER TO FILE REPORT OF CO)IPLL\NCE Pursuant to Section 3.21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shan, on the 6th day of July, 1057, become the decision of the Commission; and, accordingly: t is ordered That the respondents herein shan 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. Decision 54 F.