Nevius Brothers, Inc.

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IN THE MATTER OF NEVIUS BROTHERS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket 6957. Complaint, Nov. 1957-Dec' ision, Oct. , 1958 Consent order requiring a furrier in Trenton, N. , to cease violating the Fur Products Labeling Act by tagging fur products with fictitious prices and failing to comply with. other labeling and invoicing requirements; by advertising in newspapers which failed to disclose that certain products contained artificially colored fur and to set out other required information represented sale prices as reduced from regular prices which were in fact fictitious, and misrepresented percentage reductions; and by failing to keep adequate records as a basis for such pricing claims. John T. Walker Esq., in support of the complaint. Scott Sca?nmell. 11., Esq., of Trenton, N. , for respondents. INITIAL DECISION BY JAMES A. PURCELL HEARING EXAMINER , 1957, The complaint in this proceeding, issued November 25 charges the respondents above-named with violation of the provisions of the Federal Trade Commission Act, the Fur Products Labeling Act and the Rules and Regulations promulgated under the last-named Act, in connection with the sale, advertising and offering for sale, transportation and distribution, shipping and receiving in commerce, of fur and fur products, as the designaare defined in thetions "commerce fur" and "fur products" Fur Products Labeling Act.

said complaint, respondents After issuance and service of Nevius Brothers, Inc., and George Nevius entered into an agreement for a consent order with counsel in support of the complaint, disposing of all of the issues in this proceeding as them, which agreelnent was duly approved by the director and assistant director of the Bureau of Litigation. It was provided signing thereof is for settlement pur- in said agreement that the poses only and does not constitute an admission by the signatory alleged in the respondents that they have violated the law as complaint.

integral part of Attached to said agreement, and forming an same for the purposes of the record, are two affidavits: Nevius which recites in sub- (1) that of respondent George Decision 55 F.

stance that he is president of the corporate respondent but that his primary responsibility is the management of corporate respondent' s store in New Brunswick, N. , (the alleged violations having taken place in corporate respondent's store in the city of Trenton, N. ), wherefore affiant-respondent had no knowledge, and was not aware, of the alleged violations; and (2) that of the named respondent, Harvey C. Voorhees, which recites in substance that his correct name is Harvey C. Voorhees, (incorrectly referred to in the complaint as Harvey :M. Voorhees), and that his duties consist of managing and controlling the accounts payable and receivable of the corporate respondent without control, responsibility or managerial direction of the corporate activities forming the basis of the charges of the complaint. On the basis of the foregoing, and counsel in support of the complaint conceding there is no available evidence to contravene the averments set forth in said affidavits, it was agreed that the complaint shall be dismissed as to George Nevius individually, (but not as an officer of the corporate respondent), and shall also be dismissed as to Harvey C. V ool"hees, both as an individual and as an officer of said corporate respondent, all of \which accomplished by the order hereto attached and as in said agreement contained.

By the terms of said agreement, the signatory respondents admitted all of the jurisdictional allegations of the complaint and agreed that the record herein may be taken as though the Commission had made findings of jurisdictional facts in accordance with such allegations. By said agreement the parties expressly \waived a hearing before the hearing exan1inel" or the Commission, the making of findings of fact or conclusions of law by the hearing examiner or the Commission, the filing of exceptions and oral argument before the Commission, and all further and other procedure before the hearing examiner and the Commission to \which respondents may be entitled under the Federal Trade Commission Act or the Rules of Practice of the Commission.

By said agreement the signatory respondents further agreed that the order to cease and desist issued in accordance \with said agreement shall have the same force and effect as if made after a full hearing, presentation of evidence and findings and conclusions thereon, and specifically waived any and all right power or privilege to challenge or contest the validity of such order. It was further provided that said agreement, together with the NEVIUS BROTHERS, INC., ET AL. 563 561 Order complaint, shall constitute the entire record herein; that the complaint may be used in construing the terms of the order issued pursuant to said agreement and that the said order may altered, lllodified or set aside in the manner provided for other orders of the Commission.

Said agreement recites that respondent Nevius Brothers, Inc. trading as N evius- V oOl'hees, and other names, is a corporation existing and doing business under and by virtue of the laws of the State of New Jersey with its office and principal place of business located at 131-135 East State Street, (inadvertently designated in the complaint as 131-135 State Street), in the city of Trenton, State of N.

Respondent George Nevius is president of said corporate respondent and has the same address as said corporate respondent. The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provides for an appropriate disposition of this proceeding, the same is hereby accepted and, without further notice to respondents, is ordered filed upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3,25 of the Rules of Practice, and in consonance vvith the terms of said agreement, the hearing examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents named herein; that this proceeding in the interest of the public, and issues the following order: ORDER It is ordel'ecl That respondents, Nevius Brothers, Inc. , a corporation, trading under the name of Nevius-Voorhees, or under any other name, and its officers (excepting Harvey C. Voorhees assistant treasurer), and George Nevius, as president of said corporation, and respondents' representatives, agents, and employees, directly or through any corporate or other device in connection with the introduction into commerce, or the sale, advertising, offering for sale, transportation or distribution of fur products in comlllerce, or in connection ,with the sale, advertising, offering for sale, transportation or distribution of fur products which are 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:

Order 55 F.

A. Misbranding fur products by:

1. Representing on labels affixed to the fur products or in any other manner, that certain amounts are the regular and usual prices of fur products when such anlounts are in excess of the prices at which respondents usually and customarily sell such products in the recent regular course of their business. 2. Failing 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 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 \vaste fur, when such is the fact;

(e) The name, or other identifieation issued and registered by the Commission, of one or more persons who manufactured such fur product for introduction into conlmerce, introduced it into commerce, sold it in commerce, advertised or offered it for sale 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 nlark assigned to a fur product. 3. Setting forth on labels affixed to fur products: (a) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in handwriting;

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

NEVIUS BROTHERS, INC., ET AL. 565 561 Order (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;

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

(g) The item number or mark assigned to a fur product. C. Falsely or deceptively advertising fur products through the use of any advertisement, 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 that the fur product contains or is composed of bleached, dyed, or otherwise artificially colored fur when such is the fact;

2. Fails to set out all the information required under Section 5 (a) of the Fur Products Labeling Act and the Rules and Regulations ~romulgated thereunder in close proximity with each other and in type of equal size and conspicuousness. 3. Represents directly or by implication that the regular or usual price of any fur product is any amount which is in excess of the price at which such products were sold in the recent regular course of their business;

4. Represents directly or by implication through percentage savings claims that the regular or usual retail prices charged by respondents for fur products in the recent regular course of their business are reduced in direct proportion to the amounts of savings stated, when contrary to fact. D. Making price claims or representations in advertisements respecting reduced prices, comparative prices or percentage savings, unless there is maintained by respondents, full and adequate records disclosing the facts upon which such claims and representations are based.

It is fu1'ther ordered That the complaint be, and hereby is dismissed as to respondent George Nevius, individually, and as to Harvey C. V ool"hees, individually and as an officer of the corpol"'ate respondent Nevius Brothers, Inc. Decision 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 15th day of October 1958 become the decision of the Commission; and, accordingly:

It is ordel'ecl That the respondents Nevius Brothers, Inc. , a corporation, and George Nevius, as president of said corporation shall, \\rithin 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 they have complied with the order to cease and desist.

REUBEN POMERANTZ JEWELRY CO. INC., ET AL. 567 Findings