J. Lichterman, Inc.

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

IN THE MATTER OF J. LICHTERMAN, INC., ET AL.

CONSENT ORDER. ETC.. IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket 7183. Complah'/,t, July 1958-Decision, Nov. 1.1,., 1958 Consent order requiring a furrier in Philadelphia, Pa., to cease violating the Fur Products Labeling Act by failing to invoice fur products as required; by advertising by means of letters, tickets, brochures, etc., which represented selling prices as reduced from so-called regular prices which were in fact fictitious, misrepresented percentage savings through the use of such claims as "Half price sale; and by failing to maintain adequate records on which such savings representations were based. MT. S. F. House for the Commission. Schnader, Harris on, Segal Lewis, byrd. Edward W. Mullinix of Philadelphia, Pa., for respondents. INITIAL DECISION BY J. EARL Cox, HEARING EXAMINER The complaint charges respondents with falsely and deceptively invoicing and advertising certain of their fur products, and with failing to maintain full and adequate records disclosing the facts upon which their comparative pricing claims and representations were based, in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder, and of the Federal Trade Commission Act.

After the issuance of the complaint, respondents, their counsel and counsel supporting the complaint entered into an agreement containing consent order to cease and desist, which was approved by the director and an assistant director of the Commission Bureau of Litigation, and thereafter transmitted to the hearing examiner for consideration.

The agreement states that respondent J. Lichterman, Inc., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Pennsylvania, with its office and principal place of business located at 122 South 13th Street Philadelphia, Pa.

The agreement also states that respondent Arthur D. Lichterman is president of said corporate respondent, formulates, controls and directs the acts, practices and policies thereof, and has the same address as that of said corporate respondent. 55 F. Decision The agreement provides, among other things, that 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; that 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; that the agreement shall not become a part of the official record unless and until it becomes a part the decjsion of the Commission; that the complaint may be used in construing the terms of the order agreed upon, which may be altered, modified or set aside in the manner provided for other orders; that the agreement is for settlement purposes only and does not constitute an admission by the respondents that they have violated the law as alleged in the complaint; and that the order set forth in the agreement and hereinafter included in this decision shall have the same force and effect as if entered after a full hearing.

Respondents \vaive any further procedural steps before the hearing examiner and the Commission, the making of findings fact or conclusions of law, 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 the agreement. The order agreed upon fully disposes of all the issues raised in the complaint, and adequately prohibits the acts and practices charged therein as being in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder, and of the Federal Trade Commission Act. Accordingly, the hearing examiner finds this proceeding to be in the public interest, and accepts the agreement containing consent order to cease and desist as part of the record upon ,which this decision is based. Therefore It is onl.e?' That respondents J. Lichterman, Inc., a corporation, and its officers, and Arthur D. Lichterman, individually and as an officer of said 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 sale, advertising, offering for sale in commerce, or the transportation or distribution in commerce of fur products, or in connection with the manufacture for sale, sale, advertising, offering for sale, transportation or distribution 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 de- , .

J. LICHTERMAN, INC., ET AL. 729 727 Decision fined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. 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, 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, ,vhen 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 persons issuing such invoice; (f) The name of the country of origin of any imported furs contained in the fur product;

B. 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. Represents, directly or by implication, that their regular or usual price of any fur product is any amount which is in excess of the price at ,which the respondents have usually and customarily sold such product in the recent. and regular course of their business;

2. Represents, directly or by implication, through percentage savings claims, or otherwise, that the customary or usual retail price charged by respondents for any fur product in the recent regular course of their business is reduced in direct proportion to the amount of savings stated in the percentage savings claims ",hen contrary to the fact;

C. l\laking price claims and representations in advertisements respecting comparative prices, percentage savings claims, or claims that prices are reduced from regular or usual prices of fur products, unless there are maintained by respondents full and adequate records disclosing the facts upon which such claims or representations are based.

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 14th day of November 1958, become the decision of the Commission; and, accordingly:

It is ordel'ed That respondents J. Lichterman, Inc., a corporation, and Arthur D. Lichterman, individually and as an officer of said corporation, 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 which they have complied with the order to cease and desist. LONGINES-WITTNAUER WATCH COMPANY, INC., ET AL. 731 Complaint