M & a Inc

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IN THE l\1:A TTER OF M & A INC. TRADING AS PHILIPSON' AND :MRS. GLENNA RICE CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COlt-Il\fISSION AND THE FUR PRODUCTS LABELING ACTS Docket 67"66. Complaint, Apr. 8, 1957-Deaision, Au(f. , 1957 Consent order requiring a furrier in Dallas, Tex., to cease violating the Fur Products Labeling Act by labeling certain fur products with fictitious prices; by invoicing which abbreviated required information; by advertising in newspapers, etc., which failed to disclose that certain fur products were artificially colored or composed of cheap or waste fur, and which misrepresented prices; and by failing to maintain adequate records as the basis for the claims of savings.

M1' . John J. l11athias and Mr. jHorton JVes'lTliith supporting the cbmplaint:

Donalson; Bullard ~lce1' by 1I1r. E. F. l(ucera of Dallas, Tex. for respondents.

INITIAL DECISION BY JOHN LEWIS, I-IEARING EXAMINER The Federal Trade COlnmission issued its complaint against the above-named respondents on April 8, 1957, charging them with having violated the Fur Products Labeling Act and the Rules and egulations issued thereunder, and the Federal Trade Commission Act, through the misbranding of certain fur products and the false and deceptive invoicing and advertising thereof. After being served with said complaint, respondents appeared by counsel and subse- , 1957, containingquently entered into an agreement, dated ~Iay 29 a consent order to cease and desist purporting to dispose of all this proceeding as to all parties. Said agreement which has been signed by all respondents, by counsel for said respondents, and by counsel supporting the complaint, and approved by the Direetor and Assistant Director of the Commission s Bureau of Litigation, has been submitted to the above-named hearing examiner for his consideration in accordance with Section 3.25 of the Commission s Rules of Practiee for Adjudicative Proceedings.

Respondents, pursuant to the aforesaid agreement, have admitted all the jurisdictional allegations of the complaint and agreed that the record may be faken . as if findings of jurisdictional facts had been duly made in accordance with such allegations. Said agreement further provides that respondents waive any further procedural steps before the hearing examiner and the Commission, the making M & A INC. ET AL. 187 186 ' Order 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 aecordance with such agreement. It has been agreed that the order to cease and desist issued in aecordance with 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 a.lso been agreed that the record herein shall consist solely of the complaint and said agreement, and 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. This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing eonsent 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 Seetions 3.21 and 3. of the Commission s Hules of Praetiee for Adjudicative Proceedings and the hearing examiner, accordingly, makes the following jurisdictional findings and order:

1. Respondent 1\1 & A Inc., is a corporation organized, existing, and doing business under and by virtue of the la ,,-s of the State of Texas, a.nd trading as Philipson s at 1907 Elm Street, Dallas, Texas. The home office of the corporate respondent is e/o :J1:arie Antoinette 504 Congress Avenue, Austin, Texas.

respondent :Mrs. Glenna Hice is the store manager at Philipson and, acting in cooperation with the corporate respondent, formulates directs and controls all of the policies and acts of the aforesaid Philipson s. The address of said individual respondent is the sa.me as that of Philipson 2. The Federal Trade Commission has jurisclietion 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 Fur Products La.beling Act and the Federa.l Trade Commission Act, and this proceeding is in the interest of the public. ORDER t is orde'J'ed That respondents 1\1: & A Inc., a corporation, trading under its own na, , or as Philipson s or under any other name or names, and its officers, and 1\1:rs. Glenna Rice, individually and ma.nager of Philipson s and respondents' a.gents, representatives and employees, directly or through any corporate or other device in 528577-60- Order 54 F.

connection with the introduction, into commerce or the sale, advertising or offering for sale, transportation or distribution of fur products in commerce or in connection with the sale, advertising, offering for sale, transportation or distribution of fur products which have been made in whole or in part of fur which has been shipped and received in COllllnerce, as "commerce fur " and "fur products " are defined in the Fur Products Labeling Aet, do forthwith cease and desist from:

A. 1\1isbranding fur products by setting forth on labels attached to fur products prices represented to be the regular or usual price of any fur products which are in excess of the prices at which the respondents have usually or customarily sold such fur products in the recent regular course of their business; B. Falsely or deceptively invoicing fur products by: of fur products 1. Failing to furnish invoices to purchasers 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 Produets Name Guide and as prescribed under the Rules and Regulations; b. That the fur contains or is composed of used fur, when such is the fact;

c. That the fur proc1uet contains or is composed of bleaehed, dyed or other,rwise artificia.lly colored fur, when such is the fact; or in substantial d. That the fur product is composed in whole part of paws, tails, bellies, or waste fur, when suc.h is the fact; e. The name and addre,ss of the person issuing such invoice; of origin of any imported fur con- f. The name of the country tained in a fur product.

2. Setting forth required information in abbreviated form. C. Falsely or deceptively advertising fur products through the use of any advertisement, representation, public announeement directly or in-notice.e which is intended to aiel promote or assist, of fur products, and which:dire,etly in the sale or offering for sale 1. Fails to disclose:

of bleac.hed, dyed a. That the fur product contains or is c.composed or otherwise artificially colored fur, when such is the fact; in substantial b. That the fur product is compose,d in whole or part of paws, tails, bellies or waste fur, when such is the, fact. or usual 2. Represents, directly or by implication that the regular of thepriee of any fur product is any amount which.h is in excess price at which the respondent has usually and c.customarily sold such products in the recent regular course of its business. M & A INC. ET AL. 189 186 Decision 3. l\lakes use of comparative prices or 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 a designated time.

4. 1\1:akes price claims and representations of the type referred to paragraphs 2 and 3 above, unless there are maintained by respondent full and adequate records disclosing the facts upon which such claims or representations are based, as required by Rule 44 ( e) of the Rules :and Regulations.

DECISION OF THE COMMISSION AND ORDER '1'0 FILE REPORT OF CO:l\fPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial deeision of the hearing examiner did on the 15th day of August 1957, become the cleeision of the Commission; and, accordingly :

1 t is ordered That the respon den ts herein shall wi thin 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 eompliecl with the order to cease and desist. Decision 54 F.

IN THE 1\1A TTER JOSEPH I-I. SOl\llo DOING BUSINESS AS L'AR.GENE PRODUCTS CO.

CONSENT OPJ)ER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMl\fISSION .ACT Doclcet 6686. Complaint, Dec. 1,956-Decision, .Aug. , 1957 Consent order requiring a seller in New York City to cease representing falsely in advertising in circulars and magazines and on the labels of his perfume products that fictitious and excessive prices were the usual retail prices; that the perfumes 'were compounded in France and that he manufactured them; and to cease advertising falsely that they were nationally advertised on television.

JIr. Ii ent P. liratz for the Commission Jh' . Jacob Oottin of New York, N. , for Respondent. INITIAL DECISION BY "'\VILLIAl\I L. PACE: , IIEAHING EXAl\IINER The complaint in this matter charges the respondent ,,'ith violation of the Federal Trade Commission Act in connection with the sale of perfume products. An agreement has now been enter.red into by counsel supporting the complaint and respondent. which provides among other things, that respondent admits all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall be. based shall consist solely of the complaint and agreement; that the inelllsion of findings of fact and conclusions of law in the deeision disposing of this matter is waived, together with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in disposition of the. proceeding, such order to have the same foree and effect as if entered after a full hearing, respondent specifically waiving any and all rights to eludlent:' c or contest the validitv of such order: that the order may be altered, modified, or set aside in the manner provided for other orders of the Commission; that the complaint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitute. an admission by respondent that he has violated the law as alleged in the complaint. The hearing examiner having considered the agreement and proposed order and being of the opinion that they pl'oyidc an adequate basis for an appropriate disposition of the proceeding, the agreement is hereby:y accepted, the following jurisdictional findings made, anll the following order issued:

L' ARGENE PRODUCTS CO. 191 190 Order 1. Respondent Joseph H. Somlo is an individual doing business as L'Argene Products Co., with his office and principal place of business located at 11 East 48th Street, New York, New York. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered That respondent Joseph 1-1. Somlo, individually and trading as L'Argene Products Co., or trading under any other name his agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale sale or distribution of perfumes, eolognes or any other related product, do forthwith cease and desist from directly or indirectly: 1. Disseminating or causing to be disseminated any achTe.rtisement by means of the United States mails or by any means in commerce as "commerce" is defined in the Federal Trade Commission Act, for the purpose of inducing or which is likely to induce, directly or indire.etly, the purchase. of said pro duets, which advertisement: (a) Contains or lists prices or ,amounts when such prices or amounts are in excess of the prices at which the products are usually and customarily sold at retail.

(b) Uses the words "From Paris To You" or a picture of the Eiffel Tower or any pieturization indieative of Franee in eonneetion with any products not manufactured or compounded in Franee, or otherwise representing, directly or by implication, that such products are manufactured or compounded in Franee.

(e) Uses any Freneh name or word as a corporate or trade name or as a part thereof or any name, word, term or depiction indieative or com-of French origin in connection with products manufactured pounded in the United States, unless it is clearly and conspicuously revealed in immediate eonneetion and conjunction therewith that such products are manufactured or compounded in the United States. (d) R.represents, directly or by implication, that respondent manufaetures the products sold by him.

(e) R.represents, directly or by implication, that the products sold bv him are advertised on television or in anv other manner that is not in accordance with the fads.

2. Disseminating or causing to be disseminated any advertisement by any means, for the purpose of inducing or which is likely to induee, directly or indirectly, the purchase of respondent's products in commerce, as "commerce" is defined in the Federal Trade Commission Aet, which advertisement contains any of the representations prohibited in Paragraph 1 of this order.

Decision 54 F.

It is furtlwr ordered That respondent Joseph H. Somlo, individually and trading as L'Argene Products Co., or trading under any other name, and his agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of perfumes, colognes, or any other related product, in commerce, as "commerce:' is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Setting out prices or amounts on the labels or in the labeling his products, when such prices or amounts are in excess of the prices at which such products are usually and customarily sold at retail. 2. Using the words "From Paris To You " or a picture of the Eiffel Tower or any picturization indicative of France in connection with any products not manufactured or compounded in Franee, or otherwise representing, directly or by implication, that such products are. manufactured or compounded in France, on the labels or in the labeling.

3. Using any French name or word as a corporate or trade name or as a part thereof or any name, word, term or depietion indieative of French origin, on the labels or in the labeling of products manufactured or compounded in the United States, unless it is dearly and eonspieuously revealed in immediate connection and eonjunetion therewith that such products are manufactured or compounded in the United States.

4. Representing, directly or by implication, on the labels or in the labeling that respondent manufaetures the products sold by him. DECISION OF THE CO:M:~nSSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial deeision of the hearing examiner shall, on the 21st day of August, 1957, become the decision of the Commission; and, aecordingly:

It is ordered That the respondent herein shall, within sixty (60) days after serviee upon him of this orde-r, file with the Commission a report in writing setting forth in detail the manner and form in which he has complied with the order to cease and desist. MORSE SALES, INC., ET AIJ. 193 Decision