Chadbourn Gotham, Inc.

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IN THE MATTER OF CHADBOURN GOTHAM, INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7110. Complaint, Ap1' 1958-Decision, Sept. 25, 1958 Consent order requiring a manufacturer in Charlotte, N. , to cease preticketing its lingerie and hosiery with fictitiously high prices. M,.,\ Edwa1'd F. Do'll'ns supporting the complaint. , Bushby, Palmer MT. Pete?' P. Mullen of Dewey, Ballantine lVood of Ne\v York, N.Y., for respondent. INITIAL DECISION BY JOSEPH CALLAWAY, HEARING EXAMINER The Federal Trade Commission issued its complaint against the above-named respondent on April 7 , 1958, charging it with having violated the Federal Trade Commission Act as set forth in the complaint. After issuance and service of the complaint respondent on July 28 , 1958 entered into an agreement for a consent order to cease and desist from the practices complained of which agreement disposes of all the issues in this proceeding without hearing. This agreement has been duly approved by the assistant director and director of the Bureau of Litigation and has been submitted to the undersigned, heretofore designated to act as hearing examiner herein for his consideration in accordance with Rule 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 n1ay be taken as if findings of the jurisdictional facts had been duly made in accordance with such allegations. Said agreement provides further that respondent waives all further procedural steps before the hearing examiner or the Commission, including the making of findings of fact or conclusions validity of the of law and the right to challenge or contest the order to cease and desist entered in accordance with such agreeshall consist ment. It has also been agreed that the record herein 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 CHADBOURN GOTHAM, INC. 473 472 Order admission by respondent that it has violated the law as alleged in the complaint, that said order to cease and desist 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, and that the complaint may be used in construing the terms of the order.

This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing the consent order, and it appearing that the order and agreement cover all of 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 becoming 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 following findings, for jurisdictional purposes, and order:

1. Respondent Chadbourn Gotham, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of North Carolina, with its office and principal place of business located at 2417 North Davidson Street, Charlotte, N. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent hereinabove named. The complaint states a cause of action against said respondent under the Federal Trade Commission Act. This proceeding is in the public interest.

ORDER It is OT'de1' That respondent Chad bourn Gotham, Inc., a corporation, and its officers, agents, representatives and employees directly or through any corporate or other device in connection "\with the offering for sale, sale or distribution of hosiery, or lingerie, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Representing in any manner that certain amounts are the regular and usual retail prices of hosiery, or lingerie when such amounts are in excess of the prices at which such hosiery, or lingerie is usually and regularly sold at retail. 2. Putting into operation any plan designed to enable retailers or others to misrepresent the regular and usual retail prices of hosiery or lingerie.

D€(:ision 55 F.

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 25th day of September 1958, become the decision of the Commission; and, accordingly:

It is ordered That the respondent herein shall within sixty (60) days after service upon it of this order file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist.

WASHINGTON NATIONAL INSURANCE COMPANY 475 Decision