The Mayday Corporation et al.

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Ix THE ~L\.TTEH OF TI-IE )1~~YDAY COR.PORATIOX ET AL.

COXSE::'\TT ORDER , ETC. , IX HEG..Um TO THE ALLEGED VIOL"\.TION OF THE FED:ERAL TI~ADE CO:3.DIlSSIOX ..-\.XD THE F"L~R PIWD"LTTS LABELING ACTS Docket 6785. Complaint, Apr. l!JIj" Deci.sion, Sept. i?1 , 1~15" Consent order requiring a Cleveland, Ohio, furrier to cease violating: the Fur Products Lflbeling Ad by failing to compl~' with the labeling find invoicing reqnil"ements; by ndverti8ing ,,-hith failed to disclose that certain fur prodnets "-ere compose(1 of artificially colored fnr, which contained the I1nmes of nnimals other thnn those proc1ncing certain fur, ana ,,- hieh misrepresented prices find values; and by failing: to maintain nc1equate reeords as a basis for such pricing claims.

J/)'. J-lapry E. JIiddletoJ) ~ Jr. for the Commission. ((~ J1 c~V-ulty: of Cleve- J1T. 1T7m. R. BTunn of llalle: Jlabe)'~ Be)'ic7L land, Ohio, for respondents.

INITIAL DECISION BY .J OHX B. POIXDEXTER, I-IEARING EX"DIIXEH The complaint in this proceeding charges that. The ~lay(1n~' Corporation, a corporation, doing business as K. B. Company: David G. Kangesser, and :May Kangesser, erroneously referred to in the complaint as ~lae Kangesser, hereinafter called respondents, have. violated the provisions of the Federal Trade Commission Act. the Fur Products Labeling Act, and the Rules and Regulations pro.: , inmulgated thereunder in the sale, advertising and distribution commerce, of fur products.

After issuance and service of the complaint, counsel supporting the complaint, respondents, and their counsel, enter-red into an agreement for a consent order. The agreement has been a pproyed by the Director and Assistant Director of the Bureau of Litigation. Th~ order corrects the misspelling of the respondent ~Iay Kangesser name and disposes of the matters complained about.. The material provisions of said agreement are as follows: Re~ sponclents admit all jurisdictional facts; the complaint may be used in construing the terms of the order; the order shall hate the same force and effect as if entered after a full hearing and the said agreement shall not become a part of the official record of the proceeding part of the decision of the Commission; unless and until it. becomes a must contain a respondents waive the requirement. that the decision conclusion of law; respondents statement of findings of fact and waive further procedural steps before the hearing examiner and the , or set aside Commission, and the order may be altered, modified Order 54 F.

in the manner provided by statute for other orders; respondents waive any right to challenge or contest the validity of the order entered in accordance with the agreement; and the signing of 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.

The hearing examiner having considered the agreement and pro. posed order and being of the opinion that the acceptance thereof will be in the public interest, hereby accepts such agreement, makes the following jurisdictional fmdings, and issues the following order: JURISDICTION AL FINDINGS 1. The respondent, The l\layday Corporation, is a corporation organized and doing business under the laws of the State of Ohio, with its office and principal place of business located at 239 Euclid Avenue, Cleveland, Ohio. Said corporation does business as K. B. Company. The respondents David G. Kangesser and :May Kangesser are individuals and officers of said corporation and their office and princi pal place of business is the same as that of the corporation. 2. The Federal Trade Comnlission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER , a cor- I t if) o1'de1'ed That respondent The ~fayc1ay Corporation poration, doing business under its own name; as Ie. B. Company or under any other name.; and its officers; and David G. Rangesser and ~Iay Rangesser, individually and as officers of said corporation and respondents' agents, representatives and employees, directly or t.hrol1gh any corporate or other device, in connection with the introduction into commerce or the sale, advertising, or offering for sa.1e in commerce, or the transportation or distribution in commerce of any fur product, or in connection with the sa.le, 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. ~Iisbranding fur products by:

1. Falsely or deceptively labeling or otherwise identifying any animals that such product as to the name or names of the animal or produced the fur from which such product was manufactured. 2. Failing to affix labels to fur products sho"ing: THE MAYDAY CORP. ET AL. 387 385 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 when such is the fact;

( c) That the fur product contains or is composed of bleached dyed, or othenyise artificially colored fur, when such is the fact; (d) That the fur product is composed in whole or in substantial part of pa,,' , tails, bellies, or Wflste. 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.

3. Setting forth on the labels attached to fur products the name or names of any animal or animals other than the name or names provided for in Paragraph A(2)(a) above;

4. Setting forth on labels attached to fur products: (a) :Nonrequired information mingled with required information; (b) R.e.quired information in handwriting; (e) Required information in abbreviated form. 5. Failing to affix labels to fur products showing item numbers required under Rule 40 of the Rules and R.egulations. B. Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoic.es to purehasel's of fur products showing:

(a) The name or names of the animal or animal-Is proclueing the fur or furs eontainec1 in the fur products, 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 c.colored fur, when such is the fact; (c1) 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 and address of the person issuing such invoices; (f) The name of the country of origin of any imported furs contained in the fur product;

Decision 54 F.

2. Abbreviating required information on invoices; 3. Failing to set forth on invoices the item number of the fur product;

4. Setting forth on invoices the name or names of any animal or animals other than the name or names provided for in Paragraph B(l) (a) above.

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 indirect ly, in the sale. or offering for sale of fur products, and" which : 1. Fails to dise-lose that the fur products contain or are composed of bleached, dyed, or othenvise artificially colored fur, when such is the. fact.

2. 1.Jses the name or names of an animal or animals to describe the fur of an animal other than those produc.ing the fur in the fur product.

3. ::\lakes use of comparative prices and percentage savings claims unless such compared prices or claims are based upon a. bona fide compared price at a, designated time, and full and adequate records disclosing the facts upon ,,-which such prices and claims are based. DECISIO)i OF THE co~DnSSlo~ AND ORDER TO FILE HEPOHT OF CO::\IPLU.NCE Pursuant to Section 3.21 of the Commission s Rules of Practice the. initial decision of the hearing examiner shall, on the 21st day of September, 1957 become the decision of the Commission; and accordingly:

It oJ'de)' That. the. respondents herein shan within sixty (60) days after service upon them of this order, file ,,-ith the Commission a report. in "Titing setting forth in detail the manner and form in which they have complied "with the order to cease and desist.. &:. , ,, , TIDEVlATER PAINT & OIL CO. , INC,.. ET AL. 389 Decision