Metropolitan Fibre Batting Corp.

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IN THE l\LATTER OF METROPOLITAN FIBRE BATTING CORP. ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FED- ERAL TRADE CO:\Li\IISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 7023, Complaint, Jan. 9, 1D58-Decision, JJ1a.y, 1958 Consent order requiring manufacturers ,with place of business in Glendale, Long Island, N. , to cease violating the Wool Products Labeling Act by labeling as "70% Heprocessed Wool 80% Reused Wool " and "100% Reprocessed Wool" wool battings which contained substantially less reprocessed or reused wool than the percentages thus represented; by making similar false statements on sales invoices and shipping memoranda; and by failing comply with other labeling requirements of the act. ill?'. T lw1TIIls A. Ziebarth for the Commission. M1' . Nathan LiebeT?nan, pro Be and for :Metropolitan Fibre Batting Corp., and Celina Lieberman.

INITIAL DECISION BY EVERETT F. I-IAYCRAJ'T, HE.:\RING EXA1\IINER On January 9 , 1958, the Federal Trade Commission issued its complaint against ~letropolitan Fibre Batting Corp., a corporation and N atlum Lieberman and "Celina" Lieberman, erroneously referred to in the complaint as "Calina" Lieberman, individually and as officers of said corporation, c.charging them with the llse of unfair and dec.eptiye acts and practices in COI11J11erce in violation of the provisions of the Federal Trade Commission Act, the ,Y 001 Products Labeling Act of 1939 and the rules and regulations proml1lagated under said ,y 001 Products Labeling Act. After the issuance of said complaint and the filing of their ans,yer thereto, the respondents on l\farch 10, 1958 entered into an agreement for c.onsent order with counsel supporting the complaint disposing of all the issues in this proceeding in accordance with section 3.25 of the rules of praetiee and proc.edure, of the Commission, which.h agreement has been duly approved by the Bureau of Litigation.

By the terms of said agreement., the respondents admitted all the jurisdictional facts alleged in the complaint and agreed that the rec.ord ma-y be taken as if findings of jurisdictional facts had been duly made in ac.c.ordance "\with such allegations. Respondents in the agreement expressly waived any further procedural steps before the hearing examiner and the Commission; the making of findings of fact or conclusions of law; and all of the rights they may have to challenge or METROPOLITAN FIBRE BATTING CORP. ET AL. 1653 1652 Order contest the validity of the order to cease and desist entered in accordance with this agreement.

It was further provided in said agreement 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 said agreement. It was further agreed that the agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission, and that sa.id agreement is for settlement purposes only and does not cons6tute an admission by respondents that they have violated the law as alleged in the complaint. The agreement also provided that the order to cease and desist issued in accordance with said agreement shall have the same force and effect as if entered after a full hearing; that it 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 by the hearing examiner on the complaint and the aforesaid agreement for consent order, and it appearing that said agreement provides for an appropriate disposition of this proceeding, the aforesaid agreement is hereby accepted and is ordered filed upon becoming part of the Commission s decision in accordance with sections 3.21 and 3.25 of the rules of practice; and in consonance with the terms of said agreement, the hearing examiner makes the fol1moving jurisdictional findings and order:

1. Respondent :Metropolitan Fibre Batting Corp., is a corporation organized, existing, and doing bllsiness lmder and by virtue of the laws of the State of New York, with its oflice and principal place of business located at 79-30 71st Avenue, Glendale, Long Island, N. Individual respondents Nathan Lieberman and Celina Lieberman are president and secretary-vice president, respectively, of the corporate respondent.

the subject 2. The Federal Trade Commission has jurisdiction of matter of this proceeding and of the respondents hereinabove named. The complaint states a cause of action against said respondents under the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, and this proceeding is in the interest of the public. ORDER It is ordered That respondents ~1:metropolitan Fibre Batting Corp. a, corporation, and its officers, and Nathan Lieberman and Celina Order 54 F, Lieberman, 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 introduction or manufacture for introduction into commerce, or the oflering for sale. sale, transportation, or distribution in commerce, as "commerce" is defined in the Federal Trade Commission Act., and the ,Y 001 Products Labeling Act of 1939, of woolen battings or other "wool products as such products are defined in and subject to, said ,y 001 Products Labeling Act, do forthwith cease and desist from: A. :Misbranc1ing such products by:

1. Falsely or deceptively tagging, labeling or otherwise ide,ntifying such products as to the character or amount of the eonstituent fibers contained therein:

2. Failing to seenl'ely affix to, or place on, each such product. a stamp, tag, or label or other means of identifieat.ion showing in a clear and conspieuolls manner:

(a) The percentage of the total fiber ",eight of such wool proc1uet. exclusive of ornanwntation not exceeding 5 percent of said total fiber we,ight, of (1) wool, (2) reprocessed wool, (3) reused "001 , (4-) each fiber other than "-001 ,,-he..re said percentage by weight of Sllch fiber is 5 percent or more, and (5) the aggregate of al1 other fibers, (b) The maximllm percentage of the total weight. of such wool product of any JlOnfibrous londing, filling or adultern ting matter, (e) The name or the re istered identification mnnlwr oJ the ma1111factureI' of such "' 001 product or one or more persons engaged in introducing sllch "'001 product into commerce, 01' in the offering for sale, sale, transportation, distribution or delivery for shipment thereof in commerce, as "commerce" is defined in the ,Yool Products Labeling Act of 1939.

1 t i8 further ordered That :JfetTopolitan Fibre Batting Corp. , a corporation, and its ofricers, and Nathan Lieberman and Celina Lieberman, individually and as officers of said corporation, and 1'('spondents~ representatives, agent's, and employees, directly or through any corporate or other device, in eonneetion "ith the oflering for sale . sale, or dist.riblltion of woolen bnttings or any other products in commerce, as "commerce': is defined in the Federal Trade Commission Act, do fort,h,,'ith cease and desist from: ::\lisrepresenting the eharaeter or amount of the constitlwnt. fibers eontalned in such products on invoices 01' shipping memoranda appliea.ble thereto or in any other manner.

METROPOLITAN FIBRE BATTING CORP. ET AL. 1655 1652 Decision DECISION" OF TI-lE CO::\DIISSIO~ X~' D ORDER TO FILE REPORT OF CO!lIPLIANCE Pursuant to section 3.21 of the Commission s rules of practice, the initial decision of the hearing examiner shall, 011 the 21st day of l\Iay 1958, become the decision of the Commission; and, accordingly: t is ordered That respondents ~:Ietropo)itan Fibre Batting Corp. a corporatjon, and N a.t.han Lieberman and "Celina" Lieberman, erroneously referred to in the complaint as "Calilw.:' Lieberman, 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 in writing, settng forth in detail the manner and form in which they have complied with the order to rea.se and desist. /(.

Decision 54 F.