H. B. Davis Cohporation

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IN THE l\L"-TTER OF H. B. DAVIS COHPORATION ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF TI-IE FEDERAL TRADE COl\Il\IISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 6697. Complaint, Dec. 195G-Deci.sion, July, 1957 Consent order requiring a seller in :!'\ew York City to cease labeling as An new material consisting of wool batting, beel comforters which contained substantial amounts of fibers other than wool, and failing to conform to the labeling requirements of the Wool Products Labeling Act; including in the tmnsparent containers of the comforters streamers bearing fictitious prices; and representing falsely in catalogs that said comforters were "100% A1lWool Filled" and bore "Good Housekeeping Seal of Appro\H 1."

Afr. S. F. Ho.use for the Commission.

llfr. J. TIT olfe Ohassen of Brooklyn, N. , for respondent. INITIAL DECISION BY LOREN H. LAUGHLIN, HEARING EXAMINER The Federal Trade Commission (hereinafter referred to as the Commission) on Deeember 26 1956, issued its complaint herein under the Federa.l Trade Commission Act, and the ,Y 001 Products Labeling Aet of 1939 against the above-named respondents 1-1. B. Davis Corporation, a corporation, and 1-Iarry B. Davis and Charles J. Sehwartz, individually and as officers of said corporation. The complaint charge.s respondents with having violated in ee.rtain particulars the provisions of said Acts and the Hules and Regulations promulgated under said ,y 001 Products Labeling Aet.. The respondents were duly served with process. Upon being advised that. Commission s counsel and the respondents "ere negotiating an agreement for a consent cease and desist order pursuant to Seetion 3.25 of the Commission s Rules of Practice for Adjudicative Proceedings, the times for answer and for initial hearing were postponed by appropriate order, pending the negotiation of such an agreement. On J"une 11, 1957, there "as submitted to the undersigned hearing examiner of the Commission for his consideration and approval an Agreement Containing Consent Order To Cease and Desist " "which had been entered into by and beb\een each of the respondents, other than I-Iarry B. Davis, and S. F. I-louse, counsel supporting the complaint, under date of l\lay 3, 1957, and subject to the approval of the Bureau of Litigation of the Commission. Such agreement had been H. B. DAVIS CORP. ET AL. 149 148 Decision thereafter duly approved by the Diredor and Assistant Director of the Commission s Bureau of Litigation.

On due consideration of the said Agreement Containing Consent Order To Cease And Desist, the hearing examiner finds that said agreement both in form and content is in accord with said Section 3.25 of the Rules of Practice and Procedure of the Commission and that by said agreement the parties have specifically agreed that: 1. Hespondents 1-1. B. Davis Corporation, a corporation, and Charles J. Sch,,'artz, an individual and officer of said corporate respondents, have their offices and principal place of business located at 145 ,Vest 15th Street, New York, New York. 2. Pursuant to the provisions of the Federal Trade Commission Act. and the ,Y 001 Products Labeling Act of 1039, the Federal Trade Commission on December 26, 1956, issued its complaint in this proeeeding against respondents, and a true copy \vas thereafter duly served on respondents.

3. Respondents admit all the jurisdictional facts alleged in the complaint and agree that the record may be taken as if findings of jurisc1ietional facts had been duly made in accordanee with such alle.gati ons.

4. This agreement disposes of all of this proceeding as to all parties except harry B. Davis, who in accordance.e with respondent' answer is no longer eonneeted with respondent corporation. It was therefore stipulated and agreed that the complaint be dismissed as to 1-Iarry B. Davis. R.eferenc.es hereafter to "respondents" shall hereafter not. include 1-Ia-rry B. Davis but only the parties to the agreement.

5. Respondents waive:

(a) Any further procedural steps before the hearing examiner and the Commission;

(b) The makings of findings of fact or conclusions of law; and (c) All of the rights they may have to c.challenge or contest the validity of the order to c.ease and desist entered in aecorda-nee with this agreement.

G. The record on which the initial deeision and the decision of the Commission shall be based sha.ll consist solely of the complaint and this agreement.

7. This agreement shall not become a pa-rt. of the official record unless and until it beeomes a part of the decision of the Commission. S. This 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.

,, , ,, Order 54 F.

The parties have further specifically agreed that the proposed order to cease and desist included in sa.id agreement may be entered in this proceeding by the Commission ,vithout further notice to respondents; that when so entered it shall have the same force and effect as if entered after a full hearing; that it may be altered modified or set aside in the manner provided for other orders; and that the complaint ma,y be used in construing the terms of the order. Upon due consideration of the complaint filed herein and the said Agreement Containing Consent Order To Cease And Desist " the latter is hereby approved, accepted and ordered filed, the same not to become a part of the record herein, ho',ever, unless and until it becomes part of the dec.ision of the Commission. The hearing examiner finds from the c.complaint and the said "Agreement Containing Consent Order To Cease And Desist" that the Commission has jurisdiction of the subject matter of this proceeding and of the persons of each of the respondents he.rein; that the complaint states a legal cause for complaint under the Federal Trade Commission Act and the ,Yool Products Labeling Act of 1939 and the Rules and Regulations promulgated under the latter Act., against each of the respondents both generally and in eac.h of the particulars alleged therein; that this proceeding is in the inte.rest of the public; that the following order as proposed in said agreeme.nt is appropriate for the just disposition of an of the issues in this proeeeeling, such order to become final only if and when it becomes the order of the Commission; and that said order therefore should be, and hereby is en tereel as foil ows :

ORDER It is ordel' That the respondents H. B. Davis Corporation, a corporation, and its offieer, Charles J. Schwartz, individually and as an officer of said corporation, and respondents ' representatives agents and employees, directly or through any corporate or other device, do forthwith cease and desist from introducing into commeree, or offering for sale, selling, transporting or distributing, in commerce, as "commerce" is defined in the Federal Trade Commission Aet and the ,Vool Products Labeling Aet, bed eomforters or other ool products ~' as such products are defined in and subject to said ,Vool Products Labeling .Aet which products contain, purport to c.contain, or in any way are represented as c.containing "wool reprocessed wool " or "reused wool" as those terms are defined in said Act:

1. Any such procluets which are misbranded in that they are falsely or deceptively stamped tagged, labeled or otherwise iden- H. B. DAVIS CORP. ET AL. 151 148 Order tified ns to the character or amount of the, constituent fibers eontained therein.

2. Any suc.h products ,,-hieh are misbranded in that they are falsely or deceptively identified as to prices at which they are sold bv retailers in their usual and reu1:lr course of business. 3. Any such products ,,'which are Inisbranc1ed in that a stamp, tag, label or other means of identification is not on or securely affixed to such product shmving in a clear and conspicuous manner: (a) The percentage of the total fiber ,ve-ight. of such ,vool product exclusive of ornamentation not. exceeding five percentum of said total fiber weight., of (1) \\001 , (2) reprocessed ,vool, (3) reused wool, (4) each fiber other than "' 001 ,vhere said percentage by ,,'eight of such fiber is fh-e pereentum or more, and (5) the aggregate of all other fibers;

(b) The maximum perc.entage of the total ,,- eight. of suc.h wool product of any non fibrous loading, filling, or ndulterating matter; (c.) The name or the registered identification number of the manufacturer of Bueh wool product or of one or more persons engageel in introducing such wool product into commerce, 01' in the offering for sale, sale, transportation, distribution, or delivery for shipment thereof in commerce.e, as "commerce" is de.fined in the 'V 001 Products Labeling ~c\.ct of 1939.

It is fvTtheT orde' That 1-1. B. Davis Corporation, a c.orporation and its off-icer, Charles .T. Sch,,-artz, incliviclually and as an officer of said corporation, and respondents' representatives, agents, and employees, aired ly or through any coi'porate or other device, in Collnec.tion with the offering for sale, sale, or distribution of bed comforters or any other product. in commerce, as "commerce" is defined in the Federal Trade Commission Ac.t, do fortJnyith c.ease and desist from, diredly or indirectly:

1. :Misrepresenting in any way the constituent fiber or material used in their merchandise or the respective percentage thereof; is the usual 2. R.representing in any manner that a. certain amount and re!!ular retail price for their produc.ts ,,-hen such amount is in excess ~f the price at which their procluc.ts are usually and regularly sold at retail;

B. Hepresenting directly or by implic.ation that their prodl1ets are approved by Good I-lonsekeeping ~Jagazine or any other individual firm, or organization, unless such is the fact. complaint bp, ancl the, same I t is sti71 fuTthei' ordel' That the hereby is, dismissed as to the respondent H:ury B. Davis. Decision 54 F.

DECISION OF THE COl\1l\IISSION AXD ORDER TO FILE REPORT OF COl\IPLIAKCE Pursuant to Section 3.21 of the Commission s Rules of Praetiee the initial c1eeision of the hearing examiner shall, on the 31st day of July, 1957, become the decision of the Commission; and, aeeordingly: 1 t is ordered That respondents H. B. Davis Corporation, a corporation, and Charles J. Schwartz, individually and as an offieer of said corporation, 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. , ,, ALRICH MANUFACTURING CO. , INC., ET AL. 153 Decision