Krumholz Fibre Co., Inc.

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

IN THE l\/fatter OF KRUMHOLZ FIBRE CO., INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 7162. Compla,int, May 1958--Decision, Oct. , 1958 Consent order requiring a manufacturer in New York City to cease violating the Wool Products Labeling Act by labeling as "100% reprocessed wool rolls of batting which contained a substantial percentage of nonwoolen fibers, and by failing to label certain of such wool products as required. 11-11'. Al' uin D. Edelson supporting the complaint. Respondents p'/'o se.

INITIAL DECISION BY JOHN LEWIS, HEARING EXAMINER The Federal Trade Commission issued its complaint against the above-named respondents on May 28 , 1958, charging them \with having violated the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, and the Federal Trade Commission Act, through the misbranding of certain wool products and falsely identifying the constituent fibers thereof. After being served with said complaint, respondents appeared and entered into an agreement containing consent order to cease and desist, dated August 7 , 1958, purporting to dispose of all of this proceeding as to all parties. Said agreement, which has been signed by all respondents and by counsel supporting the complaint, and approved by the Director and Assistant Director of the Commission s Bureau of Litigation, has been submitted to the above-named hearing examiner for his consideration, in accordance \with section 3.25 of the Commission s Rules of Praetiee for Adjudieative Proceedings.

Respondents, pursuant to the aforesaid agreement, have adn1itted all the jurisdictional facts alleged in the complaint, and have agreed that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. Said agreement further provides that respondents waive any further procedural steps before the hearing examiner and the Commission, the making of findings of fact or conclusions of la\\!, and all of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with said agreement. It has been agreed that the order to cease Order 55 F.

and desist issued in accordance with said agreement shall have the same force and effect as if entered after a full hearing and that the complaint may be used in construing the terms of said order. It has also been agreed that the aforesaid 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.

This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing consent order, and it appearing that the order provided for in said agreement covers all the allegations of the complaint and provides for an appropriate disposition of this proceeding as to all parties said agreement is hereby accepted and is ordered filed upon this decision s becoming the decision of the Commission pursuant to Sections 3.21 and 3.25 of the Commission s Rules of Practice for Adjudicative Proceedings, and the hearing examiner, accordingly, makes the following jurisdictional findings and order: 1. Respondent Krun1holz Fibre 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 4242 Park Avenue, Ne\v York, N.

The individual respondent, \Villiam Krumholz is President of the corporate respondent and his business address is the same address as the corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents hereinabove named. The complaint states a cause of action against said respondents under the Wool Products Labeling Act of 1939 and the Federal Trade Commission Act, and this proceeding is in the interest of the pu blic.

ORDER It is ordered That respondents, Krumholz Fibre Co. , Inc. , a corporation, and its officers, and vVilliam Krumholz, individually and as an officer of the corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction or manufacture for introduction into commerce, or the offering for sale sale, transportation or distribution in commerce, as "commerce is defined in the Federal Trade Commission Act, and the vV 001 Products Labeling Act of 1939, of \\Tool products as " \\Tool proc1- KDUMHOLZ FIBRE CO., INC., ET AL. 517 515 Decision ucts" are defined therein, do forthwith cease and desist from misbranding such products by:

1. Falsely or deceptively stamping, tagging, labeling, or otherwise identifying such products as to the character or amount of the constituent fibers contained therein; 2. Failing to securely affix to or place on each such product a stamp, tag, label or other means of identification showing in a clear and conspicuous manner;

(a) The percentage of the total fiber weight of such wool product, exclusive of ornamentation not exceeding five percentum of said total fiber weight, of (1) wool, (2) reprocessed wool, (3) reused wool, (4) each fiber other than wool where said percentage by weight of such fiber is five percentum or more, and (5) the aggregate of all other fibers;

(b) The maximum percentage of the total weight of such wool 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 Wool Products Labeling Act of 1939.

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 did, on the 3d day of October 1958 become the decision of the Commission; and, accordingly:

It is ordered That the respondents herein shall within sixty (60) days after service upon then1 of this order, file 'with the Commission a report in v.rriting setting forth in detail the manner and form in which they have complied with the order cease and desist.

Complaint 55 F.