Gershcow Fur Company

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IN THE l\LATTER OF GERSHCOW FUR COMPANY ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket 7047. Complaint, Jan. 1958-Decision, Aug. 14, 1958 Consent order requiring a furrier in St. Paul, Minn. , to cease violating the Fur Products Labeling Act by failing to comply with the labeling and invoicing requirements; by advertising in newspapers which failed to disclose the names of animals producing certain furs, the ~country of origin of imported furs, or that some products contained artificially colored or cheap fur, and which named animals other than those producing certain furs; and by failing to maintain adequate records as a basis for pricing claims in advertising.

~lr. Will1:a?n A. SO?ners for the Commission. MiltO?L G1'ftY, Esq. for C'l' ay Gray, of St. Paul, IVIinn., for respondents.

INITIAL DECISION BY LOREN H. LAUGHLIN HEARING EXAMINER The Federal Trade Commission (sometimes also hereinafter referred to as the Commission) on January 21 , 1958, issued its cOlnplaint herein, charging the above-named respondents with having violated the provisions of both the Federal Trade Com- 111ission Act and the Fur Products Labeling Act, together with the Rules and Regulations promulgated thereunder, and the respondents were duly served with process. On June 17, 1958, there vvas submitted to the undersigned hearing examiner of the Commission for his consideration and approval an "Agreement Containing Consent Order to Cease and Desist " which.h had been entered into by and between respondents and the attorneys for both parties, under date of June 9 , 1958, subject to the approval of the Bureau of Litigation of the Commission, which had subsequently duly approved the same. On due consideration of such agreement, the hearing examiner finds that said agreement, both in form and in content, is in ac.cord with S3.25 of the Commission s Rules of Practice for Adjudicative Proceedings, and that by said agreement the parties have specifically agreed to the following matters: 1. Respondent Gershcow Fur Company is a corporation, existing and doing business under and by virtue of the laws of the Decision 55 F.

State of Minnesota. Respondent Joseph Gershcow is an individual and officer of the corporate respondent. Said corporate and individual respondent have their office and principal place of business located at 26 East Sixth Street, St. Paul, Minn. 2. Pursuant to the provisions of the Fur Products Labeling Act and the Federal Trade Commission Act, the Federal Trade Commission, on January 21 , 1958, issued its complaint in this proceeding against the respondents and a true copy was thereafter duly served on the respondents.

3. The 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.

4. This agreement disposes of all this proceeding as to all parties.

5. The 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 the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance v,ith this agreement.

6. The record on which the initial decision 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 record unless and until it becomes a part of the decision of the Commission.

8. This agreement is for settlement purposes only and does not theconstitutelawan as admissionallegedby respondentsin thethatcomplaint.they have violated 9. The follovving order to cease and desist may be entered in this proceeding" by the Commission 'without further notice to the respondents. when so entered it shall have the same force and effect as if entered after a full hearing. It may be altered, modified or set aside in the manner provided for other orders. The complaint may be used in construing the terms of the order. Upon due eonsic1eration of the complaint filed herein and th~ said "Agreement Containing Consent Order to Cease and Desist the latter is hereby approved, accepted and ordered filed, the same not to become a part. of the record herein, however, unless and until it becomes part of the decision of the Commission. The GERSHCOW FUR COMPANY ET AL. 217 215 Order 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 proceeding and of the persons of each of the respondents herein; that the complaint states a legal cause for complaint under the Federal Trade Commission Act and the Fur Products Labeling Act and the Rules and Regulations promulgated by the Commission under the latter Act, against each of the respondents both generally and in each of the particulars alleged therein; that this proceeding is in the interest of the public; that the following order as proposed in said agreement is appropriate for the just disposition of all of the issues in this proceeding as to all of the parties hereto; and that said order therefore should be, and hereby is, entered as follows:

ORDER It is onlered That respondents Gershcow Fur Company, a corporation, and its officers, and Joseph Gershcovv, individually and as president of said corporation, and respondents' representatives, agents, and employees, directly or through any corporate or other device, in connection vvith the introduction into commerce, or the sale, advertising, or offering for sale in commerce, or in the transportation and distribution in commerce, of any fur product, or in connection vlith the sale, advertising, offering for sale, transportation, or distribution of any fur product, which has 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. Misbranding fur products by:

1. Failing to affix labels to fur products showing: (a) The nan1e or names of the animal or animals 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 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 paws, tails, bellies, or waste fur, when such is the fact;

, Order 55 F.

(e) The name, or other identification issued and registered by the Commission, of one or more persons who manufactured such fur product for introduction into commerce, introduced it into commerce, sold it in commerce, advertised or offered it for sale in commerce, or transported or distributed it in commerce; (f) The name of the country of origin of any imported furs used in the fur product;

(g) The item number or mark assigned to a fur product. 2. Setting forth on labels attached to fur product: (a) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated fornl;

(b) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder mingled with non-required information; (c) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in handwriting.

B. Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoices to purchasers of 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 Products Name Guide and as prescribed under the Rules and Regulations:

(b) That the fur product contains 01' is composed of used fur when such is the fact;

(c) That the fur product contains or is composed of bleached dyed, or artificially colored fur, when such is the fact; (d) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, when such is the fact;

(e) The name and address of the person issuing such invoices; (f) The name of the country of origin of any imported furs contained in the fur product.

C. Falsely or deceptively advertising fur products, through the use of any advertisen1ent, representation, public announcement, or notice which is intended to aid, promote or assist directly or indirectly, in the sale or offering for sale of fur products, and which:

1. Fails to disclose:

(a) The name or names of the animal or animals prod ucing ...

GERSHCOW FUR COMPANY ET AL. 219 215 Decision the fur or furs contained in the fur product as set forth in the Fur Products Nan1e Guide and as prescribed under the Rules and Regulations;

(b) That the fur products contain or are composed of bleached dyed or otherwise artificially colored fur, when such is the fact; (c) The name of the country of origin of any imported furs contained in a fur product.

2. Contains the name of an animal or animals other than the name or nan1es of the animal or animals that produced the fur. D. Makes claims or representations in advertisements respecting comparative prices or values of fur products unless there are maintained by respondents full and adequate records disclosing the facts upon which such claims and representations are based.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice, the intial decision of the hearing examiner shall, on the 14th day of August 1958, become the decision of the Commission; and, accordingly:

It is ordered That the above-named respondents shall, within sixth (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 cease and desist.

Decision 55 F.