Nationwide Clothiers, Inc., et al.

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IN THE :J\lA TTER NATIONvVIDE CLOTI-IIEHS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE A.ALLEGED VIOLATION OF THE FEDERAL TRADE CO1\I:M:ISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 7038. Complaint, Jon. 1955-Dec-ision, May, 1958 Consent order requiring a manufacturer of men s and boys' clothing, operating a national chain of some 30 retail stores and with main offices in Brooklyn and New York City, to cease violating the 'Wool Products Labeling Act by labeling ns "JOO% All ' Wool " men s sport coats which contained a substantial percentage of 11011wool fibers, by failing in other respects to comply with the labeling requirements of the act, and by making fictitious pricing eIaims for their garments in newspaper advertising, ill-I'. JIichael J. F2~tale and 31-1'. .Alvin D. Edelson for the Commission. AII'. 111oT'7'is Ballei' of Ne"\Y York, N. , for respondents. IXITL\L DECISIOX BY LOIm~ 1-1. IJ.'\DGHLIN , I-IEAP.lng EXAl\IlNETI The Federal Trade Commission (hereinafter referred to as the Commission) on January 15, ID58, issued its complaint herein under the ,Federal Trade Commission Act and the ",V 001 Products Labeling Act of HmD against the a Dove-named respondents, Nationwide Clothiers, Inc., a corporation; A. B. J oue Co. , Inc,, a corporation; and Albert B. Joffe and Julius Blankste.in, individually and as oflicers of said corporations. The complaint charges respondents with having violated in certain particulars the provisions of said acts. The. respOJHlenrs ,,"ere duly scITec1 with process. On ~Jnr('h 27 1058, there was submitted to the undersigned hearing examiner of the Commission for his consideration and approval an agreement containillg consent order to cease and desist " which had been entered into by and between respondents, their counsel and counsel supporting the complaint, under date of :J\1areh 20, 1958 and subject to the npproY:1l of the Bureau of Litigation of the Commission. Such agreement had been thereafter duly approved by the Director and an .Assistant Dire.ctor of that Buren. On due consideration of the said "agre.ement containing consent order to eense and desist " the hearing examiner finds that said agreement, both in form nnd in content, is in ae-eord with section 3. of the Commission s rules of practice for adjudicative proceedings and that by said agreement the parties have specifically agreed that: 1. Respondent Nationwide Clothiers, Ine. is a corporation, organized and existing lmder and by virtue of the laws of the State of NATIONWIDE CLOTHIERS, INC. , ET AL. 1657 1656 Decision Delaware, with its principal place of business located at 268 Fourth Avenue, New York City, N.

Respondent A. B. Joffe Co., Inc. is a corporation, organized and existing under and by virtue of the laws of the State of New York with its principal place of business located at No. Junius Street Brooklyn, New York, N.

The individual respondents, Albert B. Joffe and J uous Blankstein are officers of the aforementioned corporate respondents and maintain business addresses at the same addresses as the corporate respon den is.

2. Pursuant to the provisions of the Federal Trade Commission Act and the ",V 001 Products Labeling Act of 193' , the Federal Trade Commission, on January 15, 1955, issued its complaint in this proceeding against respondents, and a true copy was thereafter duly served on respondents.

3. Hespondents admit an the jurisdictional facts alleged in the complaint, and agree that the record may be taken as if findings of jurisclictionn.I fads had been duly made in accordance with such allega tions.

4. This agreement (nspose.s of aU of this proceeding as to all parties.

5. Hespondents \Vaive:

(a) Any further procedurftl ste.ps before the hearing examll1er and the Commission;

(b) The making of findings of fact or conclusions of law; (c) All of the rights they mfty have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement.

6. The record on ,which the initial decision and the decision of the Commission sh:111 be based shall consist solely of the complaint and this agreement.

7. This ag1'eement shan not become a. part of the official.I record unless and until it becomes a part of the decision of the Commission. S. This agreement is for settlement pui1)oses only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint.

The parties hate further specificany agreed that the proposed order to c.ease and desist included in said agreement may be entered in this proceeding by the Commission without further notice to respondents; that when so entered it shall have the same force and effect as if entered after a full hearing; that it may be altered modified or set asic1e in the manner provided for other orders; and Order 54 F.

that the complaint may be used in construing the terms of the order. Upon due consideration of the complaint filed herein and the said "agreement containing consent order to c.ease and desist :: the latter is hereby approved, accepted and ordered filed, if and ,,-hen it 5ha.II have be.c.ome a pa.rt of the Coml11ission s decision. The hearing examiner finds from the complaint and the said "agreement containing consent order to cease and desist/' that the Commission has jurisdiction of the subject matter of this proee.eding and of the persons of e,ac.h of the respondents herein; that the complaint sta tes a legal,l cause for complaint under' the Federa.) Tmcle Commission Act and the ,Y 001 Products Label ing Act of J D3D against each of the respondents, both generally and in each of the particl11nrs alleged therein; that this proceechng is in the interest of tile- public; that the following order as proposed in said agremnent is appropriate for the just disposition of all of the issues in this proceeding; and that said order therefore should be, flnd hereby is, entered as follows: ORDER It is ordcTed That the respondents, K atiml'yide Clothiers, Inc. a corporation, and its ofi-lcers, and A. B. 0 ire Co. , 111('.., a corporation, and its officers, and Albert B. tJofi'e and .Julius Blankstein individually, and fls oflieers of the. f\,forement1oncd corporate respondents, and respondents' representatives, agents, :111(1 employees, directly or through any corpora1e or other device, in connection ",ith the introduction or manufac.ture for introduction into commerce~ 01' the offering for sale, sale, transportation or distribution in commerce, as commerce" is defined in the Federal Trade Commission Act, and the ,Vool Procluc.ts Labeling Act of IDaD, oJ ,yool products, as such products are defined in and subjt~ct to the ,Y 001 Prodllcts LalH.'ling Act of IDED, do forth\\-ith cease and desist froni misbranding such products by:

1. Falsely or deceptively stamping, tagging, labeling, or otlw.T,yise identifying such products as to the charader 01' amount oj' the constituent fibers contained therein;

. Failing to securely affix to or place on each such product. a stamp, tag, label or other means of identification sho\ying in a c.le:u and conspicuous manner:

(n) The precentage of the total fiber ,yeight oJ such ,yool products exclusive of ornamentation not exceeding ;\ percent of said total fiber weight, of (1) ,yool ! (2) reprocessed ,yool, (3) reused ,yool (4) each fiber other than "-001 ,yhere said percentage by ,,'eight of such fiber is 5 percent or lllore, and (;)) the aggrega Le of all other fibers;

,, NATIONvVIDE CLOTHIERS, INC. , ET AL. 1659 1656 Decision (b) The maximllm percentage of the total weight of such ,rool products, of any nonfibrous loading, filling, or adulterating matter; (c) The name or the registered identification . number of the manufacturer of such wool product or of one or more persons engaged in introducing such wool product into commerce, or in the offering for sale, sale, transportation, distribution, or delivery for shipment thereof in commerce, as "commerce " is defined in the \V 001 Products Labeling .A..ct of 1939;

3. Using abbreviated words or terms descriptive of fiber content on stamps, tags, labels or other means of identification attached to said '\001 products;

4. Fa.iEng to separately set forth on the required stamp, tag, hbel or other means of identification, the character and amount of the constituent fibers contained in the interlinings of said wool products; 5. Failing to attach a stamp, tag, or label or other mark of identification containing the information required under section 4 (a) (2) of the ,Vool Prodllcts Labeling Act on each unit of multiple-piece garments.

is fl.lJ'ther olYlel'ed That respondents Nationwide Clothiers, Inc. a corporation, and its oflicers, and A. B. oi1'e Co., Inc., a corporation and its offcers, and Albmi, B. of1'e and J uous Blankstein, individnally, and as officers of the aforementioned corporate n~,spondents, and respondents' representatives, agents and employees directly 01' through any corporate or other device, in connection with the offering for sale, sale or distribution of men s or boy s clothing or other merchandise in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that certain amounts are the reg-ubI' or lIsnal retail price of their clothing, or other merchandise hen such amounts are in excess of the. price at which the respondeni s have regularly or llsually sold said clothing, or other merchandise through tlwir various retail stores.

DECISION OF THE CO::\IMISSION .\ND OIWEH TO FILE TIEI'OIn OF COMPLIANCE Pursuant to seet-ion 3.21 of the Commission s rules of practice, the initial decision of the he:using examiner shall, on the 21st day of :May ID;,)8, become the decision of the Commission; and, aceorclingly: It is ordered Thflt respondents named in the caption hereof 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.h they have complied ,with the order to c.ease and desist.

528577--60----106 Decision 54 F.