Henry Monosson et al. trading as; Mono Fur Company and International Fur Co.

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IN THE ~lATI'ER OF HE~RY ~IOKOSSOX ET AL. TRADING AS ~LOKO FUR. CO:MPANY AND INTER.NATIONAL FUR CO. COKSENT ORDER, ETC., IN REGAIW TO TI-IE ALLEGED VIOLATION OF THE FED1~HAL TRADE CO)DIISSIOX AND THE FUH l'IWDUCTS LABELING ACTS Docket GiJ2D. Colli/ill/int, Sept. 12. J.I.I,:jij-J)eci8ioll, July, 1957 ColJf.~ent order requiring- furriers in Los Angeles, Calif. , to cease violating the Fur Products Labelinf.;' A_C"t by acl\"(~rtisiIl g in newspapers wIdell l11isreprE.'sente(l prices, grncle, ami \"nlue (d' fur products, by failing to maintain adequate reeords as a basis 1'(11' such pricing claims, and failing to COlllply with the labeling and jll\'oicing requirements of the Act. 1111'. George E. Steimndz anll .111'. 117 iZl-imn .:.11. fling for the Coml111Sslon.

31'J'. ero17W S. 3101/0880/1. of Los Angeles, Calif., for respondents. INITIAL DECISION BY EARL t-T. KOLI~, I-IL\HING EXA~IINER The c.complaint. in this proceeding issued September 12, 1956 charg-:d respondents Henry ~lonosson and Yetta 1\JonQsson, individually and as eopartnel's trading as 1\10no Fur Company and International Fur Co., located at 818 South Blood,,' ay, Los Angeles California, with the use of unfair and deceptive acts and practices in interstate c.commerce in viola11on of the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder. After the issuance of said complaint, the respondents I-Ienry ~lonosson and Yetta ~Ionosson, indi vichmlly and as c.copartners trading as ~lono Fur Company and International Fur Co., entered into an agreement for consent. order '\"ith counsel in support of the complaint disposing of all the iss1H:)~j in this proceeding, e:s:eept the charge applien ble to such records as pleaded in Paragraph Nine of the, c.complaint, '\which agreement "'as duly approved by the Director and Assistant Director of the Bureau of Litigation. It "as expressly provided in said agreement that the signing thereof is for sett element purposes only and does not constitute an admission by respondents that they hny(~ violated the la'\" as alleged in the complaint.

By the terms of said agreement, the said respondents admitted all the jurisdictional facts al1egec1 in the complaint, except the charge MONO FUR CO. , ETC.

Order applic.able to such records as pleaded in Paragraph Nine 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 any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of la'\v; and all the rights they may have to challenge or contest the validity of the order to cease f1nc1 desist entered in acc.ordance ,with the agreement. respondents further agreed that the order to cease and desist issued in accordance with said agreement, shan have the same force and efl'ec.t as if made after a fun hearing. It ,\yas further provided that said agreement, together with the complaint, shah constitute the entire record herein, that the complaint herein may be used in construing the terms of the order issued pursuant to said agreement, except the charge ft applicable to such records as pleaded in Paragraph Nine of the complaint., and that said order may be altered, modified or set aside in the manner prescribed by the statute for orders of the Commission. The hearing examiner has considered such agreement and the order therein contained, find, 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 dec.ision in accordance with Sections 3.21 and 3.25 of the Rules of Practic.e, 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 proce,eding and of the respondents named herein, and that this proceeding is in the interest. of the public and issues the following order: ORDER 1 t is ordered That respondents I-Ienry ~lonosson and Yetta :Monosson, individually and as copartners trading and doing business under the firm names of :l\fono ' Fur Company and International Fur Co. or under any other trade name or names, and respondents' representatiY(~s, agents and employees, directly or through any c.corporate or other device, in c.onnec.tion with the introduction into commerce, or the. sale, advertising, or oflering for sale in commerce, or the transportation or distribution in commerce, of fur products, or in connec- 01'tion with the ofJ'erij1g for sale, sale, advertising, transportation distribution of fur products ,,-which have been made in ",hole or in ~28;;,I-GO- ,, Order 54 F.

part of fur which had been shipped and received in commerce, as commerce fur" and " fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from: A. :Misbranding fur products by:

1. Failing to affix labels 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 Name Guide and as presc.ribed under the Rules and Regulations;

(b) That. the fur product contains or 1S composed of used fur '\"hen such is the fact;

(e) That. the fur product contains or is composed of bleached dyed, or other,ise artificially colored fur, when such is the fact; (d) That the fur product is composed in whole or in substantial part. of paws, tails, bellies, or ",aste fur, when such is the fact; (e) The name, or other identification issued and registered by the Commission, of one or more persons "ho 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 transported or distributed it in commerce; (f) The name of the c.country of origin of any imported furs used in the fur product.

2. Setting forth, on labels attached to fur products: (a) Non-required information mingled with required information; (b) Required information in abbre"iated form, or in hand"Titing. B. Falsely or deceptively invoic.ing fur products by: 1. Failing to furnish invoices to purchasers of fur products showing:

(a) The name or names of the animal or animals producing the fur or furs c.contained in the fur product as set forth in the Fur Products Name Guide and as prescribed under the R,ules and Regulations;

(b) That the fur product contains or 1S composed of used fur ",hen such is a fact;

(c.) That the fur product c.contains or is composed of bleached dyed, or artifieia.Jly eolore.c1 fur, when such is a fact; (d) That the fur product is compose.d in whole or in substantial part. of paws, tails, beJJies, or waste fur hen such is a fad; (e) The name and address of the person issuing such invoices; nflme of the country of ()l'igin of any imported furs (f) The eontainec1 in the fur product.

C. Falsely or decepti,ely advertising fur products through the use of nny notice, a(hertjsement, representation or public announec- .

MONO FUR CO., ETC.

Decision ment 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 in excess of the price at \which the respondents have usually and customarily sold such products in the recent regular course of their business. 2. :Misrepresents the grade, quality or value of certain of said fur products by the use of illustrations depicting higher priced or more valuable products than those actually available at the advertised sening price.

D. ~laking use in adver6sements of percentage savings claims and compared prices unless such claims or prices are based upon current market values or unless the designated time of a bona fide compared pnce JS given.

It is fU?,the'7' O?Yle1' That the charge in the complaint applicable to such rec.ords as are pleaded in Paragraph Nine thereof, be cbsmissed without prejudice.

DECISION OF THE CO)'Il\IISSIO~ AND ORDER TO FILE REPORT OF CO:1\fPLIA1\T Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 11th day of July, 1957, become the decision of the Commission; and, accordingly: It 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 \yhieh they have complied with the order to cease and desist. .

FEDERAL, TRADE COMMISSION DECISIONS Decision 54 F.

IN TI-IE 1\IA TTER OF ENA-\VARE DISTRIBUTORS, INC., ET AL.

CONSENT ender, ETC., IN REGAPill TO THE ALLEGED VIOLATION OF THE FEDERAL TILq,DE CO:l\OnSSIOX ACT Dockct 6'i3- Colllplcl'i'1li. , Fcb. 2,' 1957-Decision, J'u.ly, 1957 Consent order requiring distributors in Opportunity, Wash., of "Hena-Ware stainless steel cooking utensils designed for so-calleel "waterless cooking, to tease making false representations-tllrough tlleir distributors and personal solicitors ,,'holll the~- supplied with sales training manuals, charts, ('ookbook~, broc11llre::-: , and other aclyertising literature-as to the comparative merits, unique nature and prices of their cooking utensils, the qualitkations of their personnel, and tl1eir manufacturing status, among other things.

Jl orton ire87nith Esq. for the Commission. Respondents, pro sc.

INITIAL DECISION BY ROBERT L. PlrER, I-IEARING EXAMINER The Federal Trade Commission issued its complaint against the above-named respondents on February 27, 1957, charging them with having violated the Federal Trade Commission Act by making false and misleading representations concerning the properties, characteristics, prices, manufacture and other details of their product cooking utensils. Hespondents entered into an agreement, dated 1\lay 17 , 1957, containing a consent order to cease and desist, disposing of all the issues in this proc.eeding without hearing, which agreement has been duly approved by the Director of the Bureau of Litigation. Said agreelnent has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein for his consideration in accon1ance '\with Sec.tion 3. 25 of the Rules 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 made duly in accordance '\"ith such allegations. Said agreement further prm"icies that respondents '\"aive all further procedural steps before the hearing examiner or the Commission, including the mal:ing of findings of fact or conclusions of law and the right 10 challenge or contest the validity of the order to c.ease and desist entered in accordance.e with such agreement. It has also been agreed that the record herein shall consist solely of the complaint and said agree- RENA-WARE DISTRIBUTORS, INC. , ET AL.

Order ment, that the agreement shall not be,come a 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 he,aring 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 nO', come on for final consideration on the complaint and the aforesaid agreement containing the consent order, and it appearing that the order and agreement cover all of the anegations of the complaint and provide for appropriate disposition of this proceeding, the agreement is hereby accepted and ordered filed upon this decision and said agreement becoming part of the Commission s decision pursuant to Sections 3.21 and 3.25 of the Rules of Practice, and the hearing examiner accordingly makes the folio'\\ing findings, for jurisdictional purposes, and order: 1. Respondent R.ena-,Vare Distributors, Inc., is a corporation organized, existing, and doing business under and by virtue of the la-ws of the State of ,Vashington, with its office and principal place of business located at Opportunity, ,Vashington (P.O. Box 33). The individual respondents, Fred ,V. Zylstra and Otto ,V. Zylstra are officers and directors of said respondent c.orporation, and their address is the same as that of the corporate respondent. 2. The Federal Trade Commission has jurisc1ic.tion of the subject matter of this proc.eeding and of the respondents hereinabove named. The complaint states a cause of action against said respondents under the Federal Trade Commission Act, and this proceeding is in the interest of the public.

I t is o1'Clered That respondents, Rena- ,Yare Distributors, Inc. , a ,iV.,c.orporation, and its oflic.ers, and Fred ,Y. Zylstra and Otto Zylstra, individually and as oflic.ers and directors of said corporation nnd respondents' agents, representatives, and employees, directly or through any corporate or other device, in c.connection with the offeris de-ing for sale. sale, or distribution, in commerce.e as " commerce" fined in the Federal Trade Commission ,Act, of stainless steel cooking 11tensils, or any other cooking utensils of substantially similar composition, design, construction, or purpose., do forthwith cease and desist from:

1. Representing, directly or by implic.ation : (a) That respondents' utensils are ne'\v or revolutionary or are the first or only utensils designed for both cooking and serving food; Decision 54 F.

(b) That respondents' utensils cook food at a lower temperature than do competing products, or that the results achieved by the use of their utensils are unique as compared with those achieved by the waterless" method of cooking in other utensils; (c) That respondents' sales personnel are members of their advertising department or are other than salesmen; (d) That the offer to sell respondents' utensils is for the purpose of advertising, or that the prices at which their products are offered are special or reduced prices, when such is contrary to the fact; (e) That respondents employ, or have employed, laboratory technicians, home economists, dietitians, or engineers, or have concluded research in connection with their utensils, or that respondents own operate, or control a factory wherein their utensils are manufactured when such is contrary to the fact;

(f) That al1 the vitamin and mineral c.content of food is retained when respondents' utensils and the " '\yaterless " method of cooking are used; Provided That nothing herein shall prevent respondents from representing that more vitainins and minerals are retained in food cooked in their utensils and using the "waterless" method of cooking than "hen c.ooked in other utensils requiring substantially larger quantities of water;

(g) That minerals in food are destroyed by heat "' hen using any kind of c.ooking utensils or any method of cooking; (h) That vitamins in food, other than Vitamin C and some elements of the Vitamin B complex, are destroyed or damaged by heat in cooking, or that these vitamins are destroyed or damaged by heat in c.ooking, exc.ept when subjected to prolonged high temperatures. 2. Furnishing means or instrumentalities to others by and through which they may mislead and deceive the public respecting the matters set forth in Paragraph 1 hereof.

DECISION OF TI-IE CO~Il\IISSION AND ORDER TO FILE REPORT OF CO)lPLIANCE Pursuant to Sec.tion 3.21 of the Commission s Rules of Practice the initial decision of the hearing e.examiner sha 11 , on the 17th day of July, 1957, become the decision of the Commission; and, ac.cordingly: It is once1' That the respondents herein shall within sixty (GO) days after servic.e upon them of this order, file with the Commission a. report. in writing setting forth in detail the manner and form in "hic.h they have complied "ith the order to c.ense and desist. .

AFFILIATED BROKERS, INC., ET AL.

Decision