Allen Waugh

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IN THE ~fatter OF ALLEN WAUGH TRADING AS ALLEN "'VAUGH ORDER ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\DIISSION AND THE FUR PIWDUCTS LABELING ACTS Docket ;'71. Complaint, Apr. 195" Dccision, .Auo. 28, 1957 Order requiring a furrier in San Francisco, Calif., to cease violating the Fur Products Labeling Act by falsely i(lentifying furs in advertising ami labeling with respect to the animals producing them, and failing to conform to Jabeling and invoicing requirements of the Act; by advertising which failed to disclose tlle names of aninl1lls producing certain furs or that certain pl' oducts were composed of used or a rti ficiall~r colored iu 1', and wl1 ich falsely represented prices as reducetI and misrepresented percentage savings; and by failing to maintain Htlequate records on which the pricing claims were based, Daniel J. JIupphy, Esq., for the. Commission. Respondent ))7'0 se.

INITL\L DECISION BY RO1:mnt L. PIPER, lIEAHING EXAl\IINER STATE)IEXT OF THE CASE On April 16, 1957, the Federal Trade Commission issued its complaint against ADen 'Vaugh (hereinafter called respondent), c.harging hirn with misbranding and falsely and deceptively invoicing and advertising certain fur products in violation of the provisions of the Fur Products Labeling Act (hereinafter cn.Jled the Fur Act), C. 69 (a), et seq. find the Fede.ral Trade Commission Act (hereinafter called the Act), 15 U. C. 41 et seq. Copies of said complaint, together ,,-ith a notice of hearing, "-ere duly served upon respondent.

Thereafter, pursuant to the prm- isiol1s of Se.c. 3.7 (a) (2) of the Commission s Rules and Hegulations promulgated under the Act and also set forth in the. compla-int, respondent filed an ans"\ver admitting a11 the material allegations of the complaint and "\yaiving hearing, but reserving the right. to submit proposed findings and conclusions and to appeal from the initial decision under S 3.22 of saiel Hules.

Pursuant to leave granted, proposed findings of fact., conclusions of hnv, order and reasons in support thereof were receiH'd from counsel supporting the complaint but not from respondent.1 J All of tile findjng~ uI1c1 colic'1nsiol1s proposed b l- counsel supporting the compl:lint 11n1'e beelJ 11dojJted lJereJlI. ;'1 t::.C. ~ lUO7(b). ALLEN WAUGH 237 236 Findings Upon the entire record in the case, the undersigned makes the following:

FINDINGS OF FACT Respondent is an individual trading as Allen 'Vaugh, \rith his office and principal place of business located at 51 Grant Avenue San Francisco, California.

Subsequent to the effective date of the Fur Act on August 1952 respondent has been and is no"- engaged in the introduction into connnerce, and in the sale, aclyertising, and offering for sale, in commerce, and in the transportation and distribution in commerce fur products; and has sold, advertised, oil'ered for sale, transported and distributed fur products which "-ere made in ",hole or in part of fur ,,-which had been shipped and received in commerce, as the terms. commerce/: "fur:: and "fur products" are defined in the Fur Act. Certain of said fur product s "-ere misbrande.d in that they were falsely and deceptively labeled or otherwise falsely and deceptively identified with respect to the name or names of the animal or animals that produced the fur from ,,-hieh sa.id fur products had been manufactured, ill violation of ~ 4: (1) of the Fur Act. Certain of said fur products "-ere misbranded in that they were not labeled as required under the provisions of ~ 4 (2) of the Fur' Act, and in the manner and form prescribed by the Hnles and Regulations promulgated thereunder.

Certajn of said fur products "-ere misbranded in violation of the Fur .Act in that they "-ere not labeled in accol'Clance ,,-ith the. Rules and Hegulations promulgated thereunder in the following respects: (a) Information required under 9 4 (2) of the Fur Act and the Hnles and Regulations thereunder "-ns set forth in abbreviated form in violation of Rule ~1 of the aforesaid Rules and Regulations. (b) Respondent atIlxed labels to fur products which did not comply with the minimum size requirements of 13h 2i14 inches in violation of ule 27 of the aforesaid Ii-ules and Regulations. (c) Information required under 9 4 (2) of the Fur Act and the Hules nnd Hegulations thereunder "-as mingled with non-required information in yiolatioll of Enle. 2D (a) of the. aforesaid Hules and Regulations.

(d) Information required under S 4(2) of the Fl1r Act and the Hliles l1l1l1 Hegulntions thereunder "'as not comple.1el~y set forth one side of the labels in violation of Hlile 2D(a) of the aforesaid H,ulps and Hegulntions.

(e.) Information required under ~ 4(2) of the. Fur Act and the R1l1es and Hegulations thereunder "- as set forth in hanchn'iting on , ,, Findings 54 F.

labels in violation of Rule 29 (b) of the aforesaid Rules and Regulations.

11l11nber was not set out on the label of each fur (f) An item product, in violation of Rule 40 of the aforesaid Rules and Regulations.

Certain of said fur products were misbranded in violation S 3 (e) of the Fur Act in that respondent, following receipt thereof in commerce, removed the original manufacturer s label and thereafter substituted his mnl which substituted labels "-ere false and deceptive in that they failed to include all of the information required by S 4(2) of the said Act. Certain of said fur products "-ere falsely and deceptively invoiced by the respondent in that they \were not. invoiced as required by 9 5 (b) (1) of the Fur Act and in the manner and form prescribed by the Rules and Regulations thereunder. . Certain of said fur products \,ere falsely and deceptively invoiced purchasers of said furin tha.t respondent on invoices, furnished to of an animal other than the name of theproducts, set forth the name in violation of S 5(b) (2) of the Furanimal that produced the fur, Act and the Rules and Regulations thereunder. Certain of said fur products \were falsely and deceptively invoiced in violation of the Fur Act in that they "-ere not. invoiced in accordance with the Rules and R.egulntions thereunder in that: of the Fur .Act and (a) Information required under 9 5 (b) (1) the Rules and Regulations thereunder \vas set forth in abbreviated of the aforesaid Rules and Regulations.form, in violation of Rule 4 used as part of the required in- (b) The term "blendecr' was formation to describe the pointing, bleaching, dyeing or tip-dyeing of Rule 19 of the aforesaid Rules and Reg- of furs, in violation ulations.

Certain of said fur products \were falsely and dec.eptively advertised in violation of the Fur Act in that respondent. caused the dissemination in commerce, as "commerce:' is d~fined in said Act which.h certain nmyspaper advertisements, concerning said products, prm~jsions of S 5 (a) of the said were not. in accordance with the Act and the Rules and Regulations promulgated thereunder; and which advertisements were intended to aid and did aid, promote and sale assist, directly and indirectly, in the sale and ofiering for said fur products.

Jl1ong and included in said advertisements, but not limited thereto were advertisements of the respondent published in the .January 18 :and :March 25 , 195() issues of the Oakland Tribune, a newspaper ALLEN WAUGH 239 236 Findings published in the City of Oakland, State of California and having a substantial circulation in said State and various other States of the United States.

By means of said advertisements, as well as others of similar import not specifically referred to herein, respondent falsely and deceptively advertised his fur products in that said advertisements: (fl.) Failed to disclose 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 Porducts ~ ame Guide, in violation of 9 5 (a) (1) of the Fur Act;

(b) Failed to disclose that fur products were composed of used fur ,,-hen such was the fact, in violation of 9 5 (a) (2) of the Fur Act; (c) Failed to disclose that certain fur products contained or were composed of bleached, dyed, or othenvise artificially colored fur hen such ,vas the fact, in violation of 95(a) (3) of the Fur Act; (d) Contained the name or names of an animal or animals other than those producing the fur contained in the fur product, in violation of 9 5 (a) (5) of the Fur Act;

(e) Failed to use the term "secondhand used fur " ",here applicable, in violation of Rules 21 and 23 of the Rules and Regulations; (f) Represented prices of fur products as having been reduced from regular or usual prices, "'here the so-calle.d regular or usual prices ,were in fact fictitious in that they were not the prices at which said merchandise ,vas usually sold by respondent in the recent regular course of his business, in violation of 9 5 (a) (5) of the Fur Act and Rule 44 (a) of the R.ules and Regulations promulgated thereunder;

(g) Used comparative prices and percentage savings claims which were. not based on current market values and which failed to give a designated time of a bona fhle compared price, in violation of 9 5 (a) (5) of the Fur Act and Rule 44 (b) of the Rules and Regulations thereunder;

(h) Represented "$100 000 of furs now priced at $50 000" when such representation "as not true in fact, in violation of 9 5 (a) (5) of the Fur Act and Rule 44 (d) of the Rules and Regulations promulgated thereunder.

Respondent in making the pricing claims and representations, refen' ed to in subparagraphs (f), (g) and (h) of the foregoing paragraph herein, failed to maintain full and adequate records disclosing the facts upon which such claims and representations were purportedly based, in violation of R.ule 44 (e) of the aforesaid Rules and Regulations.

240 FEDERAL TRADE COMMISSIOK DECISIONS Order 54 F.

CONCLUSIONS OF LAW 1. Respondent is engaged in commerce, and engaged in the abovefound acts and practices in the course and conduct of his business in commerce, as "commerce" is defined in the Fur Act. 2. The acts and practices of respondent hereinabove found are in violation of the Fur Act and the Rules and Hegulations promulgated thereunder, and constitute unfair and deceptive acts and practices in commerce under the Act.

3. This proceeding is in the public interest, and an order to cease and desist the above-found unlawful practices should issue against respondent.

ORDER 1 t is 01ylered That respondent -,AJlen 'Vaugh, an individual doing business as Allen 'Vaugh or under any other name, and respondents representatives, agents and employees, directly or through any corpol' 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 commerce of fur tn'oducts, 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 commerce, as "commerce fur" and ': fur product" are defined in the Fur l~.. , do forthv.'ith cease and desist from: A. :JIisbranding fur products by:

1. Falsely or deceptively labeling or identifying any such product as to the name or names of the animal or animals that produced the fur from ,,-which such product was manufactured; 2. Failing to affix labeling 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 ~ ame Guide and as prescribed under the Rules and Regulations;

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

(c) That the fur product contains or is composed of bleached dyed or otherwise 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 waste fur, when such is the fact; (e) The name, or other identification issued and registered by the Commission, of one or more persons 'Tho manufactured such fur product for introduction into commerce, introduced it into ALLEN WAUGH 241 236. Order commerce, sold it in commerce, advertised or offered it for sale, or transported or distributed it in commerce; (f) The name of the country of origin of any imported furs used in the fur product;

3. Setting forth on labels attached to fur products: (a) Information required under' S 4(2) of the Fur Act and the R.ules and R.egulations thereunder in abbreviated form or in handwi'iting;

(b) Information required under S 4 (2) of the Fur Act and the Rules and Hegulations thereunder mingled with non-required information;

4, Affixing labels to fur products which do not comply with the minimum size requirements of 134 inches by 234 inches; 5, Failure. to show on labels attached to fur products all of the information required under ~ 4 (2) of the Fur Act and the Rules a.nd Regulations thereunder on one side of such labels; G. Fa.ilure to set forth on labels pertaining to fur products an item number or mark assigned to such products; B. Falsely or deceptively invoicing fur products by: 1. Failure to furnish invoices to purchasers of fur products shmying:

(a) The name or names of the animal or anim::ds producing the fur or furs contained in the fur product as set. forth in the Fur Products Xame Guide and as prescribed under the Rules nnd Regulations;

(b) That the fur product contains or JS composed of used fur when such is the fact;

(c) That the fur product contains or is composed of bleached dyed, or other\rise rutificial1y colored fur, ,Then such is the fact; (c1) That the fur product is composed in ,,-hole or in substantial part:. of paws, tails, bellies, or \\H.ste fur, when such is the fact; (e) The name and address of the person issuing such invoice; (f) The name of the country of origin of any imported fur contained in a fur product;

2. Setting forth information required under 9 5 (b) (1) of the Fur Act and the Rules and Regulations thereunder in abbreviated form;

3. Using the term "bien deer' to describe the pointing, bleaching, dyeing or tip-dyeing of furs; C. Falsely or deceptively advertising fur products through the use of any advertisement, representation, public announcement or n9iice 'which is intended to aid, promote or assist, directly or indirectly, in the sale or offering Jor sale of fur products, and \\which: Decision 54 F. T. C.

1. Fails to disclose:

( 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 such is the fact;

(c) That the fur product. contains or is composed of bleached dyed, or otherwise artificially colored fur, when such is the fact; (d) That the fur product is composed of "secondhand used fur when such is the fact;

2. Contains the name or names of any animal or animals other than the name or names provided for in Paragraph 5 (a) (1) of the Fur Act;

3. Represents directly or by implication: (a) That the regular or usual price of any fur product is any amount which is in excess of the price at which such products were sold in the recent regular course of his business; (b) The value of fur products \,hen such chims and re,presentations are not true in fact;

4. ~lakes use of comparative prices or percentage savings claims unless such compared prices or percentage savings are based upon current market vnlues or unless a bona. fi' de price at a designated time is stated;

5. ~In.kes pricing elaims and representations of the types referred to in subparagraphs 8(a) and (b) and 4 above, unless there are maintained by respondent full and adequate re.cords disclosing the facts up~n \vhieh such cln.ims or representations are based, as required by Rule 44 (e) of the Rules and Regulations; D. In substituting labels affixed to fur products which have been shipped to and received by respondent in commerce, misbranding such products in any of the respects set forth in Paragraph A of this Order.

DECISlO):f OF THE CO~DnSSlON AND onnEn TO YILE HEroRT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 28th day of August, 1957, become the decision of the Commission; and, accordingly :

1 t is 0 nle 'J'ed. That the respondent herein shall within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist. , .

THE CARL CO. ET AL. 243 Decision