Ellisberg'S, Inc.

Text (OCR of the scan at left; may contain errors)

IN THE l\1A TTER OF ELLISBERG' S, INC. , ET AL.

CONSENT ORDER, ETC., IN HEGAHD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\Il\IISSION AND THE FUR PRODUCTS LABELING ACTS Docket 6819. Complaillt, Ju.ne 14, 1957-Decision, Sept. 18, 1957 Consent order requiring a furrier in Raleigh, N. , to cease violating the Fur Products Labeling Act by fictitious pricing on labels and in advertising, and by ad\'ertising in newspapers which failed to disclose the names of animals producing the fur in certain products 01' the country of origin or that certain furs were artificially colored, and which misrepresented values, comparative prices, percentage savings, and guarantees; and by failing in other respects to comply with the labeling, invoicing and advertising requirements of the Act.

~fichael J. Vitale and J'hmnas A. Ziebarth, Esqs. supporting complaint.

IIO1.va.?yl E. ill anning~ Esq. representing respondents. INITIAL DECISION BY J Al\IES A. PURCELL~ HEARING EXAMINER The complaint in this proceeding, issued t une 14, 1957, charges the respondents, above-named, with violation of the provisions of the Federal Trade Commission Ac.t, the Fur Products Labeling Act and the Rules and Regulations promulgated under the last-named Act, in connection with the sale, advertising and offering for sale transportation and distribution, shipping and receiving in commerce of fur and fur products, as the designations "commerce fur" and fur products" are defined in the Fur Products Labeling Act. Subsequent to the servjce of the complaint on all respondents, all parties did, on July 20, 1957, enter into an agreement for a consent order disposing of all of the issues in this proceeding, which agreement was duly approved by the Director and Assistant Director of the Bureau of Litigation of the Commission. It was provided in said agreement that the signing thereof is for settlement purposes only and does not constitute an admission by the respondents that they have violated the law as alleged in the complaint. By the terms of said agreement, the respondents admitted all of the jurisdictional allegations of the complaint and agreed that the rec.ord herein may be taken as though the Commission had made findings of jurisdictional facts in accordance with such allegations. By said agreement the parties expressly waived a hearing before ELLISBERG' S INC., ET AL. 355 354 Decision a Hearing Examiner or the Commission; the making of findings of . fact or conclusions of law by the I-Iearing Examiner or the Commission; the filing of exceptions and oral argument before the Commission, and all further and other procedure before the Hearing Examiner and the Commission to which the respondents may otherwise, but for the execution of said agreement, be entitled under the Federal Trade Commission Act or the Rules of Practice of the Commission.

By said agreement, respondents further agreed that the order to cease and desist issued in accordance with said agreement shall have the same force and effect as though made after a full hearing, presentation of evidence and findings and conclusions thereon, and specifically waived any and all right, power or privilege to challenge or contest the validity of such order. It was further provided that said agreement, together with the complaint, shall constitute the entire record herein; that the comp1a.int herein may be used in eonstruing the terms of the order issued pursuant to said agreement; and that the said order may be altered, modified or set aside in the manner provided by statute for other orders of the Commission.

Said agreement recites that respondent Ellisberg, Inc. , is a corporation existing and doing business under and by virtue of the laws of the State of North Carolina; that the individual respondents, Elias and :Mortimer Ellisberg are, respectively, President and Secretary- Treasurer of the corporate respondent; the complaint charges that the individual respondents, acting in cooperation with each other, formulate, direct and control all of the acts and policies of the corporate respondent. The address and principal place of business of all respondents is located at No. 126 Fayetteville Street Raleigh, North Carolina.

. The I-learing Examiner has considered such agreement and the order therein contained, and, 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 beeoming part the Commission s decision in accordance with Sections 3.21 and 3. of the Rules of Practice.

Consonant with the express terms and provisions of said agreement, the Hearing Examiner finds that the complaint herein states a valid cause of action; that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of all respondents named herein and that this proceeding is in the public interest wherefore he issues the following order:

Order 54 F.

ORDER I t is ordered That respondent Ellisberg, Inc., a corporation, and its officers, and Elias Ellisberg and ~fortinlerEllisberg, individually ~nd as officers of said corporation, and respondents' agents, representatives and employees, directly or through any corporate or other device, in connection with the sale, advertising, or offering for sale in commerce, or the transportation or distribution in commerce any fur product, or in connection with the sale, advertising, offering for sale, transportation or distribution of any fur product which is made in whole or in part of fur which has been shipped or 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:

i. Falsely or deceptively labeling or otherwise identifying any :such product by affixing thereto any label or tag containing a price which is greater than the price normally charged in the usual and Tegular course of business;

2. 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 prescribed under the Rules and Regulations;

(b) That the fur product contains or IS composed of used fur "\v 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 a fact; (d) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, when such is a fact; (e) The name, or other identification issued and registered by the Commission, of one or more persons who 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 country of origin of any imported furs used in the fur product;

3. Setting forth on labels attached to such fur products nonrequired information mingled with information that is required under Section 4 (2) of the Act and the Rules and Regulations thereunder;

B. Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoices to purchasers of fur products showing:

ELLISBERG' S IKC. , ET AL. 357 354 Order ( 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 w hen such is a fact;

( c) That the fur product contains or is composed of bleached dyed, or otherwise artificially colored fur, when such is a fact; (d) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, TV hen such is a fact; ( e) The name and address of the person issuing such invoices; (f) Tlle name of the country of origin of any imported furs contained in the fur product;

C. Falsely or deceptively advertising fur products through the use of any advertisement, representation, public announcement, or notice which is intended to aid, promote or assist, directly or indirectly, in the sale or offering for sale of fur products, and which: 1. Fails to disclose:

(a) The name or names of the animal or animals producing the fur or furs contained in the fur products as set forth in the Fur Products al11e Guide and as prescribed under the Rules and Regulations;

(b) That fur products contain or are composed of bleached, dyed or otherwise artificially colored fur, when such is the fact; (c) The name of the country of origin of any imported fur contained in such fur products;

'2. Sets forth information required under Section 5 (a) of the Fur Products Labeling Act and the Rules and R-egulations thermmder in abbreviated form;

3. Fails to set forth in type of equal size and conspicuousness information required under Section 5 (a) of the Fur Products Labeling Act and the Rules and Regulations thereunder; 4. Represents prices of fur products as being reduced from regulai' or usual prices where the so-called regular or usual prices are in fact fictitious, in that they are not the prices at which said mer- ,chandise is usually sold by respondents in the recent regular course of business in violation of Section 5 (a) (5) of the Fur Products Labeling Act and Rule 44 (a) of the Rules and Regulations thereunder;

5. Guarantees that prices will be higher later in the season un- Jess such is the fact;

D. :Making use comparative prices and percentage savings daims in advertising unless such prices and claims are based on Decision 54 F. T. C.

current market values or unless the designated time of a bona fide compared price is given;

E. :Making pricing claims and representations of the type referred to in Paragraphs C 4 and D unless full and adequate records disclosing the facts upon which such claims and representations are purportedly based are maintained, as required under Rule 44 (e) of the Rules and Regulations.

DECISION OF THE COl\Il\IISSION AND ORDER TO FILE REPORT OF COl\fPLBNCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 18th day of September, 1957 become the decision of the Commission; and accordingly:

1 t is ordered That the respondents 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 complied with the order to cease and desist. J. H. FILBERT, INC. 359 Findings