New Haven Quilt & Pad Co. of Texas, Inc.

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IN THE l\IATTER OF NE1V I-IA VEN QUILT &, PAD CO. OF TEXAS, INC., ET AL. CONSE~T ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO:i\Il\IISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 6"1'56. Complaint, Ap1' 1957-Decigion, Aug. , 1957 Consent order requiring a manufacturer in Dallas, Texas, to cease violating the Wool Products Labeling Act by tagging ' as "\Vool Batting, " etc. , bed comforters containing substantial amounts of fibers other than wool; failing in other respects to label such wool products as required by the Act; by furnishing false guarantees that certain of their wool products were not misbranded; ami by invoicing batts falsely as to percentage of wool content.

il1r. 111ichael J. Vitale and illi'. Tho771,(a; A. Ziebarth supporting the complaint.

Tobolowsky, llwrtt Seldinger by j.llr. lienry D. Schlin-ger Dallas, Tex., for respondents.

INITIAL DECJSIO~ BY JOHN LEWIS, I-IEARING EXAMINER The Federal Trade Commission issued its complaint against the above-named respondents on April 2 ID57 charging them with having violated the 1V 001 Products Labeling Act of 1939 and the ules and Regulations promulgated the.reunder, and the Federal Trade Commission Act, through the misbranding of certain wool products, furnishing false guarantees that they "-ere not misbranded under the provisions of the \Vool Products Labeling Act, and falsely representing the composition of certain batting on sales invoiees and shipping memoranda. After being served with said complaint, respondents appeared by counsel and entered into an agreement containing consent order to cease and desist, dated une 4 lD57, purporting to dispose of all of this proceeding as to all parties ,,'without hearing. Said agreement which has been signed by all respondents, by counsel for said respondents, and by counsel supporting the complaint, and approved by the Diredor and Assistant Director of the Commission s Bureau of Litigation, has been submitted to the above-named hearing examiner for his c.consideration in accordance with Section 3.25 of the Commission ~s Rules of Practice for Adjlldic.ative Proceedings.

Respondents, pursuant to the aforesaid agreement, have admitted all the jurisdictional fads alleged in the complaint, and have agreed that the record may be taken as if findings of jurisdictional facts had been made in aecordanee "ith such allegations. Said agreement NEW HAVEN QUILT & PAD CO. OF TEXAS, INC. , ET AL. 171 170 Order further provides that respondents waive any further procedural steps before the hearing examiner and the Commission, the making of findings of fact or conclusions of law, and all of the rights they may have to challenge or contest the validity of the order to cease and desist entered in aeeordance with said agreement. It has been agreed that the order to cease and desist issued in accordance wit4 said agreement shall have the same force and effect as if entered after a full hearing and that the complaint may be used in construing the terms of said order. It has also been agreed that the aforesaid 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.

This proceeding having now come on for fu1a.l consideration on the complaint and the aforesaid agreement containing consent order, and it appearing that the order provided for in said agreement covers all the allegations of the complaint and provides for an appropriate disposition of this proceeding as to all parties, said agreement is hereby accepted and is ordered filed upon this decision s becoming. the decision of the Commission pursuant to Sections 3.21 and 3.25 of the Commission s Rules of Praetiee for Adjudieative Proceedings and the hearing examiner, aceordingly, makes the following jurisdietional findings and order:

1. R.respondent New I-Iaven Quilt & Pad Co. of Texas, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of Texas, with its office and principal place of business located at 604 First Avenue, in the City of Dallas, State of Texas. Respondent J. Paul Levine is an individual and Secretary- Treasurer of the corporate respondent, with the same address as that of the em'pm' ate respondent.

2. The Federal Trade Commission has 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 ,Vool Proc1uets Labeling Act of 193D and the Federal Trade Commission Act, and this proceeding is in the interest of the public. ORDER It is O1'dered That respondents New I-Iaven Quilt &. Pad Co. of Texas, Inc. , a corporation, and its ofricers and J. Paul Levine, individually and as an offieer of said corporation, and respondents representatives, agents and employees, directly or through any eorporate or other device, in connection with the introduction or manufaetllre for the introduction jnto commerce, or the offering for sale sale., transportation or c1ist-ribution in eoml11e.rce, as "commerce " is 528577-60- 172 FEDERAL TRADE CO:MMISSION DECISIONS Order 54 F.

defined in the Federal Trade Commission Act and the vV 001 Products Labeling Act of 1939, of bed comforters 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" as these terms are defined in said Act, do forthwith cease and desist from: A. Misbranding such products by:

1. Falsely or deceptively stamping, tagging, labeling or otherwise identifying such products as to the character or amount of the constituent fibers contained 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 eonspieuous 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 percentage by weight of such fiber is five percentum or more, and (5) the aggregate of all other fibers;

(b) The maximum percentage 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 comme.ree, as "eomn1eree" is defined in the Wool Products Labeling Act of 1939.

B. Furnishing false gua.rantees that bed comforters or any other wool products or materials are not misbranded under the provisions of the vV 001 Products Labeling Act, when there is reason to believe that. the wool products so guaranteed may be introduced, sold transported or distributed into commerce. is further ordered That New Haven Quilt & Pad Co. of Texas Inc., a corporation, and its officers and J. Paul Levine, individually and as an officer of said corporation, and respondents' representatives agents and employees, directly or through any corporate or other device, in conl1eetion with the offering for sale, sale or distribution of batts or battings or any other products or materials in commerce as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from directly or indirectly: l\1isrepresenting the eonstituent fibers of which their products are NEW HAVEN QUILT & PAD CO. OF TEXAS, INC., ET AL. 173 170 Decision composed or the percentages or amounts thereof, in sales invoices shipping memoranda or in any other manner. DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COl\fPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 8th day of August 1957, bee orne the decision of the Commission; and, accordingly :

t is ordel' 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. Decision 54 F.