Frederick Manufacturing Co.

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

In THE Marrer oF FREDERICK MANUFACTURING CO. ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 6866. Complaint, Aug. 14, 1957—Decision, Jan. 22, 1958 Consent order requiring manufacturers in Providence, R.I., to cease affixing to their costume jewelry and men’s accessories, before shipping to retail dealer purchasers, labels bearing fictitious prices greatly in excess of the usual retail prices, thereby providing retailers with means for deceiving the purchasing public.

Mr, John W. Brookfield, Jr., and Mr. Charles W. O’Connell, for the Commission.

Dick & Carty, by Mr. E. Harold Dick, of Providence, R.1., for respondents.

initra, Decision sy Asner E, Lirscoms, Hearing Examiner The complaint herein was issued on August 14, 1957, charging respondents with the dissemination, upon labels at the request of purchasers, of false, deceptive, and misleading representations of the retail prices of their costume jewelry and men’s accessories, in violation of the Federal Trade Commission Act. On November 18, 1957, respondents, their counsel, and counsel supporting the complaint herein entered into an agreement containing consent order to cease and desist, which was approved by the director and the assistant director of the Commission’s Bureau of Litigation, and thereafter submitted to the hearing examiner for consideration. The agreement identifies Respondents Frederick Manufacturing Co. and Casselini, Inc. as Rhode Island corporations, having their office and principal place of business, in common, at 244 Oak Street, Providence, R.I.; and Respondents Albert Lieberman and Albert Bensusan as president and treasurer, respectively, of both corporations, and having the same office and place of business. Respondents admit all the jurisdictional facts alleged in the complaint, and agree that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations.

Respondents waive any further procedure before the hearing examiner and the Commission; the making of findings of fact or conclusions of Jaw; and all the rights they may have to challenge or FREDERICK MANUFACTURING CO. ET AL. 965 964 Decision contest the validity of the order to cease and desist entered in ac- ‘cordance with the agreement. All parties agree that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and the agreement; that the order to cease and desist, as contained in the agreement, 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; that the complaint herein may be used in construing the terms of said order; and that the agreement 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.

After consideration of the allegations of the complaint and the provisions of the agreement and the proposed order, the hearing examiner is of the opinion that such order constitutes a satisfactory disposition of this proceeding. Accordingly, in consonance with the terms of the aforesaid agreement, the hearing examiner accepts the agreement containing consent order to cease and desist; finds that the Commision has jurisdiction over the respondents and over their acts and practices as alleged in the complaint; and finds that this proceeding is in the public interest. Therefore, It is ordered, That Respondents Frederick Manufacturing Co. and Casselini, Inc., corporations, and their officers, and Albert Lieberman and Albert Bensusan, individually and as officers of said corporations, and their agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of costume jewelry and accessories cr any other merchandise in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

Representing through prices or amounts set. out on tickets or labels, whether or not affixed to or shipped with such merchandise, or in any other manner, that certain amounts are the regular and usual retail prices of such merchandise, when such amounts are in excess of the prices at which such merchandise is usually and regularly 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 shall, on the 22d day of January 1958, become the decision of the Commission; and, accordingly : Lt is ordered, That respondents Frederick Manufacturing Co. and Decision 54 F.T.C.

Casselini, Inc., corporations, and Albert Lieberman and Albert Bensusan, individually and as officers of said corporations, shall, within 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. ALLEN V. SMITH, INC. 967 Complaint