Manuel Kasnow trading as Kasnow Furs

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IN THE :.M:A TTER OF 1tlANUEL ICASNOvV TRADING AS ICASNOW FURS CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\Il\fISSION AND THE FUR PRODUCTS LABELING ACTS Docket 6767. Complaint, Api' 8, 1957-Decision, Sept. 20, 1957 Consent order requiring a Chicago furrier to cease violating the Fur Products Labeling Act by removing the original manufacturer s label and substituting his own which failed to include all the information required by the Act, and by failing in other respects to comply with the labeling requirements; by Rch'ertising in ne\Yspapers which failed to disclose that certain fur products were used 01' secondhand, and represented falsely sale prices as reduced from regular prices which were in fact fictitious; and by failing to maintain adequate records as a basis for such claims of savings. lVilliam A. Some'i's Esq., for the Commission. Tho1npson, Raymond, ilia-yel', Jenner Bloo1nstein by Smn'uellV. Bloch: Esq. of Chicago, Ill., for respondent. INITIAL DECISION BY ROBERT L. PIPER, I-IEARING EXA3IINER The Federal Trade Commission issued its complaint against the above-named respondent on April 8, 1957, charging him with having violated the Fur Products Labeling Act, the rules and regulations issued thereunder, and the Federal Trade Commission Act, by misbranding and falsely advertising his fur products. Respondent appeared by c.ounsel and entered into an agreement, dated July 25 1057, containing a consent order to cease and desist, disposing of all the issues in this proceeding ,,-without hearing, which agreement has been duly approved by the Director of the Bureau of Litigation. Said agreement has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein, for his consideration in acc.ordance with Section 3.25 of the R.ules of Practice of the Commission.

Respondent, pursuant to the aforesaid agreement, has admitted all of the jurisdictional allegations of the complaint and agreed that the rec.ord may be. taken as if findings of jurisdictional facts had been made duly in accordance with such allegations. Said agreement further provides that respondent ,waive all further procedural steps before the hearing examiner or the Commission, including the making of findings of fact or conclusions of law and the right to challen fte or contest the validity of the order to cease and desist entered in acc.ordance with such agreement. It has also been agreed that the I::- of the compla.int and said agree-record herein shall consist solely become a part of the official recordment, that the agreement shall not KASNOW FURS 379 378 Order unless and until it becomes a part of the decision of the Commission that said 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, that said order to cease and desist shall have the same force and effect as if entered after a full hearing and may be altered, modified, or set aside in the manner provided for other orders, and that the complaint may be used in construing the terms of the order.

This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing the consent order and it appearing that the order and agreement cover all of the allegations of the complaint and provide for appropriate disposition of this proceeding, the agreement is hereby accepted and ordered filed upon this decision and said agreement becoming part of the Commission s decision pursuant to Sections 3.21 and 3.25 of the Rules of Practice, and the hearing examiner accordingly makes the following findings, for jurisdictional purposes, and order: 1. Respondent l\Ianuel Kasnow is an individual trading and doing business as Kasnow Furs. The office and principal place of business of respondent is locate,d at 20 East Jackson Boulevard, in the city of Chicago, State of Illinois.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proeee.ding and of the respondent hereinabove named. The complaint states a cause of action against said respondent under the Fur Products Labeling Act and the Federal Trade Commission Act, and this proceeding is in the interest of the public. ORDER It is ordered That respondent l\lannel Kasnmv, an individual trading as Kasnow Furs, or trading under any other name, and his agents, representatives and employees, directly or through any corporate or other device, in connection with the introduction, sale advertising, or offering for sale in commerce, or the transportation or distribution of fur products, or in connection with the sale, advertising, offering for sale, transportation or distribution of fur products which have been made in \\~hole or in part of fur which has been shipped and received in commerce, as "commerce fur" and "fur proc1net." are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. l\Jjsbranding fur products by:

1. Failing to affix labels to fur products showing: (a) The name or names of the 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 R,ules and R.egulations. 528577-60- ,, Order 54 F.

. (b) That the fur product contains or IS composed of used fur .w hen suc.h is the fact.

(c) That the fur product contains or is composed of bleached dyed, or 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 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.

2. Setting forth on labels attached to fur products: (a) Required information in abbreviated form. (b) 1.\ on-required information mingled with required information. (c) Required information in handwriting.

B. Falsely or de.ce.ptively advertising fur products through the use of any ach-ertisement., representation, public announcement or notice.e which is intended to aid, promote or assist, directly or indirectly, in the sa Ie or ofiering for sale of fur products, and which: 1. Fails to disclose that the fur product is composed of used fur as required by Rule 21, ,,"hen such is the fact. 2. Fails to disclose that the fur product is second-hand, in violation of Rule 23, when such is the fact.

3. Represents directly or by implication that respondents regular price. of any fur product is any amount which is in exce.ss of the, price at ,which the respondent has regularly or customarily sold or offered for sale in good faith fur products of like grade and quality in the recent regular course of his business. C. ~laking use in advertising of comparative prices or percentage 8ayings c 1a.ims unless such compared prices or claims are based upon current market value of the fur product or upon a bona fide compareel price at a designated time.

D. :\1 aking comparative. or percentage pricing claims of the nature set 01H in Paragraphs B. 3. and C hereof, unless there are maintained . by respondent full and ade.quate records disclosing facts upon which such claims and representations are based, as required by Rule 44 (e) of the Rules and Regula.tions.

If i8 fui'the?' o?'(7eted That respondent :Manuel Kasnow, an indiyic1l1n I trading as Kasnow Furs, or trading under any other name and his agents, representatives and employees, directly or through any corporate or other device, do fortlnvith c.ease and desist from KASNO'V FURS 381 :318 Decision misbranding fur products, in violation of Section 3 (e) of the Fur Products Labeling Act, by substituting his own labels on such fur products, following their receipt in col11l11erce, which labels fail to shmv all of the information required by Section 4(2) of the said Act and the Rules and Regulations promulgated thereunder. DECISIO~ OF THE COl\nIISSIO~ AND ORDER TO FILE HEPOHT OF COl\IPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 20th day of September.r, 1957, become the deeision of the Commission; and, accordingly:

It is O1ylered That the respondent herein shall within sixty (60) days after service upon it of this order, file with the Comnlission a report in writing setting forth in detail the manner and form in ~which it has complied with the order to cease and desist. /.

382 FEDERAL TRADE COM:MISSION DECISIONS Decision 54 F.