Comforte, Inc.

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

IN THE ~lA TTER OF CO:MFORTE, INC., ET AL.

CONSENT ORDER, ETC. , IN REG.\RD TO THE ALLEGED YIOLATlON OF THE FEDERAL Tll-\DE COl\ll\II~Slon X~' D THE WOOL nWDUCTS LAm~LI:1\G ~\.Cls Docket 651,'/. Complaint, Apr, 30, 1056-Decision, Nov, 30, 195'/ Consent order requiring a Chic:lgo manufacturer of ,yool pro(lucts to cea~e enclosing in indiyi(lu::ll conta iners of bf-.'d (,OU1fl1rter~, inert8 01' stream1l"' carrying fictitious prices greatly in excess of the u~unl n~tail prices and tlms plncing in the lwl1ds of' retailers IIwans of deceiving the IH1I'chasing public.

iiii'. lViZlia'ln A. Somen for the Commission. Ohap'J1Lan, Anixter Delaney, of Chicago, Ill. , by i11r. ~~fa.ndel L. A nixter for respondents.

INITIAL DECISION BY 'YIl, LLD( L. PACK, IIEMUXG EXAMINEU The. complaint in this matter charged the respondents with certain violations of the ,Y 001 Products L(1,beling Act of 1939 and the uks and Regulations promulgated thereunder, and the Federal Trade Commission Act, in conneehon with the sale of bed comfortrespect to all of theers. An agreement for a eonsent order with prices ofissues r(1,ispc1 in the complaint, except that relating to the respondents' products, has heretofore been entered into by respondents and counsel supporting the complaint, and an initial decision based upon such agreement was issued by the hearing examiner on October 11 , 195G. That decision also dismissed the complaint in its entirety as to respondent Earl Chapman. An agreement for n consent order ,,' ith respect to the issue of pricing has no\\' been entered into by the remaining respondents and counsel supporting the eO1i1plaint. This agreement provides among other things, that said respondents admit all the jurisdictional allegations in the complaint; that the record on \\'hieh the initial (1ecision and the l1ecision of the Commission shall be based shall consist solely of the complaint and agreement; that the inclusion of findings of fact and conclusions of law in the deeision disposing of such renw1ning issue is waived, together with any further procedural steps bdore the hearing esaminer and the Commission; that the order hereinafter set forth may be entered in disposition of said issue, such order to have the same force and 1 The otl1el' l'liar::es of the complaint were di!"posed of by n consent order on Nov. 24 195G, 52 F. c. 4Sl;.

662 FEDERAL TRADE COMl\HSSION DECISIONS Decision 54 F.

effect as if entered after a full hearing, said respondents specifically ,\"waiving any and all rights to challei1ge or . contest the validity 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 respondents that they have violated the la", as alleged in the complaint.

The hearing examiner being of the opinion that the agreement provides an adequate basis for appropriate disposition of the remaining issue in the proceeding, the agreement is hereby accepted the following jurisdictional findings made, and the following order issued:

1. Respondent Comforte, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of Illinois. Respondents Nathan E. Chapman and Jesse Parmacek are individuals and are officers of the corporation. The office and principal place of business of all the respondents is located at 2511-51 \Yest 18th Street, Chicago, Illinois.

2. The Federal Trade Commission has jurisdiction of the subjeet matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER I t is o1Ylered That respondents, Comforte, Inc. , a corporation and its officers, and Nathan E. Chapman and Jesse Parmacek, individually and as officers of said corporation, and respondents' representatives, agents and employees, directly or through any Corporate or other device, in connection ",ith the offering for sale, sale or distribution of bed comforters or similar merchandise in commerce, as "commerce" is defined in the Federal Trade Commission Aet, do forthwith cease and desist from, directly or indirectly: 1. Hepresenting, by preticketing or in any other manner, that a certain amount is the customary or llslml retail price of such merchandise when said amount is in excess of the price at which such me.rchandise is customarily and usually sold at retail. 2. Furnishing such merchandise to others which has been preticketed with a price or al'nount which is in excess of the price at which snell merchandise is customarily and usually sold at retail DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner did, on the 30th day of COMFORTE , INC. , ET AL. 663 661 Decision November, 1957, become the decision of the Commission; and accordingly:

It is. ordered That the respondents Comforte, Inc., a corporation and Nathan E. Chapman and ,Jesse Parmacek, individually and as officers of said corporation, shall within sixty (60) days after service upon them of this order, file with the Commission a report writing setting forth in detail the manner and form in which they have complied with the order to cease and desist. 664 ;FEDERAL TRADE COMMISSION DECISIONS Complaint 54 F.