Charles Cohen trading as Santa Ana Fur Co. and Charles of the Santa Ana Fur Co.

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

IN THE MATTER OF CHARLES COHEN TRADING AS SANTA ANA FUR CO. AND CHARLES OF TI-IE SANTA ANA FUR CO. CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO:l\Il\IISSION AND THE FUR PRODUCTS LABELING ACTS Docket 6993. Coil/.1Jlaint, Dec. 16, 1957-Decision, M (IV , 1,958 Consent order requiring a furrier in Santa Ana, Calif., to cease violating the Fur Products Labeling Act by removing labels from fur products prior to sale to the ultimate consumer; by naming on invoices fictitious or nonexistent animal or animals other than those producing the fur; by failing to comply in other respects with the labeling and invoicing requirements; by advertising in newspapers which failed to disclose the names of animals producing furs or named other animals, failed to disclose that certain products were composed of artificially colored fur and the name of the country of origin of ill11)Orted furs, and failed to give other required. information; represented prices as reduced from regular prices which were in fact fictitious, represented falsely that he designed and manufactured his fur products, that prices were reduced in a so-called "Disruption Sale and that they were below cost; and by failing to l;:eep adequate records as a basis for the pricing claims.

11110 John J . 111 eN ally supporting the complaint. Respondent, pro se.

INITIAL DECISION BY JOSEPH CALLA WAY, I-IEAIUNG EXAMINER The Federal Trade Commission issued its complaint against the above-named respondent on December 16, 1957, charging him with having violated the Fur Products Labeling Act, the rules and regulations issued thereunder, and the Federal Trade Commission Act by misbranding, falsely invoicing and falsely advertising certain fur products. After being served with the complaint respondent entered into an agreement, dated February 15, 1958, containing a eonsent order to cease and desist, disposing of all the issues in this proceeding ,without hearing, which agreement has been duly approved by the Assistant Director and the Director of the Bureau of Litigation. Said agreement has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein, for his consideration in accordance with section 3.25 of the rules of practice of the Commission. respondent, pursuant to the aforesaid agreement, has admitted . all of the jurisdictional~ allegations of the complaint and agreed that the record may be taken as if findings of jurisdictional facts had Order 54 F.

been made duly in accordance ,,'ith such allegations. Said' agreement further provides that respondent "waives all further procedural steps before the hearing examiner or the Commission, including the making of findings of fact or conclusions of law and the right to challenge or contest the validity of the order to cease and desist entered in accordance with such agreement. It has also been agreed that the record herein shall consist solely of the complaint and said agreement, 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; that said agreement is for settlement purposes only and does not constitute an admission by respondent that he has violated the law as alleged in the complaint; that 8:1i(1 order to cease and desist shall have the same force and efiect. as entered after a full hearing and 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 OIl the complaint and the aforesaid agreement containing the COl1spnt order, and it appearing that the order and agreement cover all the allegations of the complaint and provide for appropriate disposition of this proceeding, the agreement is hereby accepted and ordered filed upon this decision and said agreement bcconling part of the Commission s decision pursuant to sections 3,21 and :3.25 of the rules of practice, and the hearing examiner accordingly makes the follo,ying findings, for jurisdictional purposes, and order: 1. Respondent, Charles Cohen, is an individual t.trading as San! Ana Fur Co. and as Charles of the Santa. Ana Fur Co. The otlice and principal place of business of the said individual respondent is located at 308 North Broad\yay, Santa .Ana, C~dif. 2. The Federal Trade ColTu11ission has jurisdiction of the subject matte-r of this proceeding and of the respondent hereinabove named. The complaint states a callse of action against said respondent llnder the Fur Products Labeling Act and the Federal Trade Commission Act, and this proceeding is in the interest of the public. OJmEI~ 1 tis ordel' That respondent Charles Cohen, an individual trading as Santa Ana Fur Co. and as Charles of the S~ulta Ana Fur Co., or under any other trade name or names, and respondent' s representatives, agents and employees, directly or through any corporate or other device, in connection "With the introduction into commerce, 01' the SANTA ANA FUR CO. ET AL. 1667 1665 Order sale, advertising, or offering for sale, in commerce, or the transportation or distribution in commerce, of fur products, or in connection clis-with the sale, advertising, offering for sale, transportation or tribution of fur products which have been made in whole or in part of fur which has been shipped and received in commerce, as "commerce fur " and "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from: A. Removing or participating in the removal of labels required affixed to fur productsby the Fur Products Labeling Act to be prior to the time any fur product is sold and delivered to the actual consumer.

B. :Misbranc1ing fur products by :

1. Fa.filing to affix labels to fur products showing: (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 rules andProducts Name Guide and as prescribed under the 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 bleaehed such is the fret;dyed or othenvise artificially colored fur when (d) That the fur product is composed in ,whole or in substantial part of pa,ys, tails, bellies, or ,,-aste fur, when such is the fact; registered by (e) The name, or other identification issued and the Commission, of one or more persons who manufactured such :fur product for introduction into commerce, introduced it into comit for sale, ormeree, sold it in commerce, advertised or oflered tln.nsported or distributed it in commerce; (f) The name of the country of origin of any imported furs used i'11 the fur product;

2. Setting forth on labels attached to fur products: (a) Infor111ation required under section 4(2) of the Fllr Produds regulations therelU1der mingledLabeling Aet and the rules and ,,-ith nonrequired information;

(b) Information required under seetion 4 (2) of the Fur Products Labeling Aet and the rules and regulations thereunder in handwriting;

C. Falsely or deeeptiypJy invoieing fur products by: products 1. Failure to furnish invoiees to purehasers of fur showing:

(a.) The name or names of the animal or a.nimaJs producing the fur or furs contained in the fur product as set forth in the Fllr Order 54 F.

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 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 ,,-aste fur, when such is the fact; (e) The name and address of the person isslling such invoices; (f) The name of the country of origin of any imported fur contained in a fur product.

2. Setting forth on invoices the name of an animal which is fictitious or nonexistent in place of the name or names of the animal or animals producing the fur as required by paragraph (a) above. 3. Setting forth on invoices the name of an animal other than the name or names of the animal or animals producing the fur as required by paragraph (n) above.

4. Setting forth on invoices information required under section 5 (b) (1) of the Fur Products Labeling Act and the rules and regulations theremHler in Hhhreviated form; 5. Failing to furnish invoices to purchasers of fur products showing the item number or mark assigned to such products, as required by rule 40 of the rules and regulations.

D. Falsely or deceptively advertising fur products through the use of any adn'rtisement, representation, public announcement or notice which is intended to aid, promote or assist, directly or indirectly, in the sale or ofl'e.l.jng for sale of fur products, and which: 1. Fails to disclose the name or names of the animal or animal.ls 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 regulat.ions.

2. Fails to disclose that fur proc1uets contain or are composed of hleaehec1, dyed, or otherwise Hli,ifically colored fllr, when such is the fact"

3. Contains the name of an animal other than the name or names of the animal or animals producing the fur contained in fur products as required by paragraph D.1 above.

4. Fails to dise1osc the name of the eollntry of origin of any imported furs contained in fur products.

5. Fails to set forth the information required by seet.ion 5 (a) the Fur Products Labeling Aet in type of equal size and eonspieuous- SANTA ANA FUR CO. ET AL. 1669 1665 Decision ness and in close proximity with each other, as required by rule 38 (a) of the rules and regulations.

6. Represents, directly or by implication, that the regular or usual price of any fur product is any amount which is in excess of the prices at which SUC~1 products, in the recent regular course of business have been usually and customarily sold by the respondent. 7. Represents, directly or by implication, that fur products being offered for sale were create. , designed or manufactured by respondent ,,"here such is contrary to the fact.

8. Hepresents, directly or indirectly, through the use of such terms as "Disruption Sale Clearance Hemodeling Sale Liquidation or through terms of like import. or meaning, that fur products being offered for sale are from respondent' s regular inventory or stocks or must be disposed of at reduced prices, where such is contrary to the fact.

9. Represents, directly or by in1plication, that fur products are be.ing ojf'ered for sale at. prices 1"hieh are the same as, or are below respondent' s wholesale costs of such products, where such is contrary to the fact.

10. ~Iakes pricing e1aims and representations of the type referred to in paragraphs D. 6 and 9 above, unless there are maintained by respondent fun and adequate reeorcls disclosing the facts upon which such claims or representations are based, as required by rule 44 (e) of the rules and regulations.

DECISION OP THE COl\Diission AND order TO FILE HEPORT OF CO::UPLIANCE Pursuant to section 3.21 of the Commission s rules of practice, the initial decision of the he.aring examiner shall, on the 22c1 day of ~fay' 1!)58, become the decision of the Commission; and, accordingly: It is ordered That the respondent herein shall within sixty (60) days after service upon him of this order, file with the Commission a report in "Titing setting forth jn detail the m:1,liner and form in which he has complied with the order to cease and desist. , ,, Decision 54 F.

IN TI-IE :.\IATTER OF SEON ZERAH ET AL. DOING BUSI~ESS AS I-IA ",VTHORNE ",V A TCI-I CO.

CONSENT Order, ETC., IN REGARD TO TIIE ALLEGED VIOLATION OF THE FEDERAL TRADE cO:\I:i\nSSION ACT Docket 7011, Coli/plaint, Dec. 1957-DccisiolL Jlay 22 1958 Consent order requiring a partnership in San Ji'rnncisco, Calif., selling its merchandise to jotbers and dealers for resale, to cease representing falsely in catologs, on counter display cards, and on containers, that certain of their watches containing one jewel were "jeweled, " guaranteed for 1 year, had teen awnrded a gold medal in competitions at London, Paris and Geneva, nnd that secondhand, rebuilt wa tches were new; and to cease attaching to their merchandise, or furnishing to their customers for attachment thereto, tags printed with fictitious and greatly exaggerated prices. illi' . John J. .:11 cially, for the Commission. 111t. Seon Zel'ah and .:11;,. Jacques Raoul ZcJ'((,/( of San Francisco Calif. pro Be.

INITIAL DECISION BY LOREN I-I. LAUGHLIN , lie"\HJNG Exa~nNEH The Fe.deral Trade Commission (sonwhnws also llereinaJter rcfelted to as the Commission) isslled its c.complaint herein, charging the above-named respondents with having violated the provisions of the Federal Tra-de Commission Act in certain pmticulnrs, On :March 11 , 1958, there was submitted to the nndersi~!'lied hearing examiner of the Commission for his consideration an(l apprOI'll an "agree.me.nt containing consent order to erase and desist :' ,yhic11 had been enter.red into by and bet.,yeen respondents and the attorney for the Commission, under elate of Febrllary 2;\ ID:'58, subject to the approval of the Bureau of Litigation of the Commission hieh had subsequently duly approved the same.

On due consideration of snell agreement., the hearing examiner finds that sa-iel agreement-., both in form and in content, is in accord ",ith section 3.25 of the. Commission s rules of praet.ic.e for adjudicative proceedings, and that by said agreement the parties have specifically agreed to the follOlying mattt'TS:

1. Respondents Seon Zernh and Jacques Raoul Zerah are, inclividuals and eopartners doing business as JIa ,ytllol'ne ",Vatell Co. with their 01liee and principal pbce of business located at 593 ~Ijssion Street, San Fl'anciso, Calif.

HAWTHORNE WATCH CO. 1671 1670 Decision 2. Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on December 27, 1957, issued its complaint in this proceeding against respondents and a true copy was thereafter duly served on respondents. 3. Respondents admit all of the jurisdictional facts alleged in the complaint and agree that the reeor~l may be taken as if findings of jurisdictional fads had been duly made in accordance with sneh allegations.

4. This agreement disposes of all of this proceeding as to all parties. 5. Respondents waive:

(a) Any further procedural steps before the hearing examiner and the Commission;

(b) The making of findings of fact or conclusions of law; and (c) All of the rights they may have to challenge or contest the validity of the order to cease and desist entered in ' aeeordance with thi s agreement.

6. Tlw record on which the initial deeision and the decision of the Commission shall be based shall consist'solely of the complaint and this agreement.

7. This agreement shall not become a part of the official reeorcl unless and until it becomes a part of the deeision of the Commission. 8. This 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.

9. That the proposed order set forth in the agreement may be entered by the Commission ,,-without further notice to the respondents and ,,-hen so entered it shall have the same force and effect as if entered after a full hearing; may be altered, modified, or set aside in the manner provided for other orders; and that the complaint may be used in eonstruing the te-rms of the order. The hearing examiner further finds from the complaint and said agreement that the Commission has jurisdiction of the subject matter of this proceeding and of the person of each of the respondents; that the complaint states a legal callse for complaint under the Federal Trade Commission Act, both generally and in each of the partielllar charges alleged therein; that this proceeding is in the interest of the public; and that the order proposed in the said agreement. is issues as to all of theappropriate for the full disposition of all the parties to this proceeding.

The said agreement, including the order proposed therein, is therefore accepted by the hearing examiner and transmitted to the Commission here,,-ith for filing if the Commission so deeides; and said Decision 54 F.

proposed order is adopted and hereinafter made and entered as the Order" portion of this inital decision: Provided That neither said agreement 1101' this initial decision shall become a part of the official record of this proceeding, nor shall this initial decision be published unless and until they respectively become parts of the official decision of the Commission.

ORDER It is ordered That respondents Seon Zerah and Jacques Raoul Zerah, as individuals, or as eorpartners doing business as Hawthorne 1Vatch Co., or under any other trade name or names, and respondents' representatives, agents, and employees, directly, or through any corporate. or other device, in connection with the offering for sa.le, sale or distribution of merchandise, including watches or other items of jewelry, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

(1) Representing, directly or by implication that any such watch: (a) Is a "jeweled" watch, or that it contains a jeweled movement unless such watch contains at least seven jewels, each of which serves a mechanical purpose as a frictional bearing; (b) Is guaranteed, unless the nature and extent of the guarantee and the manner in which the guara,ntor will perform thereunder are clearly and conspicuously disclosed;

( c) lias been a warded a gold medal or other prize, honor or recognition, in competition with other 'watches. (2) Representing, directly or by implication, that any such merchandise, including watches or other items of jewelry, are new when such are secondhand or reconstructed. (3) Supplying purchasers of merchandise, inc.luding water-hes and other items of jewelry, with price tags having prices or amounts which are in excess of the nsua.l or regular retail selling prices of such merchandise, or otherwise representing that the usual or regular retail price of such merchandise is any amount greater than the price at which such merchandise is usually and regularly sold at retail.

(4) Putting into operation any plan whereby retailers or others may misrepresent the regular or usual retail prices of merchandise. DECISION OF THE COl\Il\IlSSION AND ORDER TO FILE REPORT OF COl\IPLIA1\~C:E Pursuant to section 3.21 of the Commission s rules of practice the initial decision of the hearing examiner shall, on the 22d da,y of HAWTHORNE WATCH CO. 1673 1670 Decision l\iay 1958, become the decision of the Commission; and, accordingly: 1 t is ordered That respondents 8eon Zerah and Jacques Raoul Zerah, as individuals, or as copartners doing business as I-Iawthorne "\Vatch Co. 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 w hieh they have complied with the order to cease and desist.

Decision 54 F.