Amicale Yarns, Inc.

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

IN THE MATTER OF A:lICALE YARNS, INC., ET AI, CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATlON OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LADELJNG ACTS Docket 7170. Complaint, June 9, 105Ef-Decision, Dec. , 1.958 Consent order requiring distributors in New York City to cease violating the Wool Products Labeling Act by labeling and invoicing as "100% Cashmere " yarn which contained substantially less than 100% cashmere fibers, and by failing to label certain yarns as required. MT. John J. Mathias for the Commission. Rothstein Km' zenilc by M,' . Harold KOTzenik of New York , for respondents.

INITIAL DECISION BY J. EARL Cox, HEARING EXAMINER The complaint charges respondents with misbranding certain of their wool products, and with the use of the false, misleading and deceptive statement, in sales invoices, that said products were composed of 100% cashmere fibers, in violation of the Wool Products Labeling Act of 1939 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 AmicaJe Yarns, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal place of business located at 511 Fifth Avenue, New York, N. and that individual respondent Gregory Schlomm is an offcer of the corporate respondent and formulates, directs and controls the acts, practices and policies thereof, his address being the same as that of the corporate respondent.

A1l parties to the agreement recommend therein that the complaint, insofar as it relates to respondents Philip Brenner and Emanuel Mendelkern (erroneously referred to in the complaint as Emmanuel Mendelkern), be dismissed because their connection with the respondent corporation has been only in a professional 812 EDERAL TRADE COMMISSION DECrSI01-S Order 55 F. T.

capacity, and neither of said respondents has any participation or control in the formulation or direction of the corporate respondent. The agreement further states that the practices charged in the complaint involve some woolen ,,,eaving yarn imported by respondents from Japan in 1905 and 1956.

The agreement provides, among other things, that respondents signatory thereto 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 ,,'i1.h 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 offcial record unless and unti becomes a part of the decision of the Commission; that the complaint may be llsed in construing the terms of the order agreed upon, ,,,hleh 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 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 waive any further procedural steps before the hearing examiner and the Commission, the making of findings of 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 al1 the issues raised in the complaint, and adequately prohibits the acts and practices charged therein as being in violation of the \V 001 Products Labeling Act of J 9:;9 and the Rules and Regulations promulgated thereunder, and of the Federal Trade Commission Act. Accordingly, the hearing examiner fmcls this proceeding t.o 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 ordered That respondents Amicale Yarns, Inc. , a corporation, and its offcers, and Greg-Dry Schlomm, individually and as an offcer of said corporation, and respondents ' agents, representatives and employees, directly or through any corporate or other device, in connection or through any corporate or other rlevice, in connection \with the introduction into commerce, or the AMICALE YARNS , I:-C., ET AL. 813 811 Ordcr offering for sale, sale, transportation or distribution in commerce as "commerce" is defined in the Federal Trade Commission Act and the Wool Products Labeling Act of 1939 , of yarn or other wool products, as such products are defined in and subject to the Wool Products Labeling Act of 1939, 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 included therein: 2, Failing to securely affx or place on each such product stamp, tag, label or other means of identification shmving" in a clear and conspicuous manner:

(a) The perccntage of the total fiber weight of such wool product, exclusive of ornamentation not exceeding five percenturn 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 libel's; (b) The maximum percentage of the total fiber weig-ht of such wool product of any nonfibrolls loading, filling or adultcrating 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 \ 'o()l products into commerce, or in the offering for sale, sale, transportation, distribution or delivery for shipment thereof in commerce, as "commerce" is clefined in the Wool Products Labeling Act of J939, It is further onlered That respondents Amicale Yarns, Inc. a corporation, and its offcers, and Gregory Schlomm, inclivir1uaJ1y and as an offcer of said corporation, and respondents' representatives, agents, and employees, directly or through any corporate or other clevice, in connection \with the offering for sale, sale or distribution of yarns or other merchandise, in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting, directly or indirectly, the fibers of which their products are composed, or the percentages or amounis thereof, in sales invoices, shipping memoranda or in an)T other manner.

It is f"rthe, ordered That the complaint herein, insofar as it relates to respondents Philip Brenner and Emanuel Mendc1kcrn , and the same hercb T is, oismissed without prejudice to the Decision 55 F.

right of the Commission to take such action in the future as the facts may then warrant.

DECISION OF THE Commisslon AND ORDER TO FILE REPORT OF COMPLIANCE The Commission having considered the hearing examiner s initial decision, fied October 17, 1958, accepting an agreement containing a consent order to cease and desist, theretofore executed by the respondents and counsel in support of the complaint, service of which was completed on November 30 1958; and The respondents, by motion flied November 5, 1958, having requested that the initial decision be amended to include a statement that the practices charged in the complaint involve some woolen weaving yarn imported by the respondents from Japan in 1955 and 1956; and Counsel supporting the complaint having filed answer stating that he does not oppose such motion, and it appearing that said requested statement was included in the agreement of the parties as a material part thereof and that its omission from the initial decision results in an incomplete recitation of said agreement and the Commission being of the opinion that the omission should be supplied;

It is ordered That the initial decision bc, and it hereby is, amended by inserting between the fourth and fifth paragraphs thereof the following;

The agreement further states that the practices charged in the complaint involve some woolen weaving yarn imported by respondents from Japan in 1955 and 1956. It is further ordered That the initial decision as so amended shall, on the 2d day of December 1958, become the decision of the Commission.

It is furt.her ordered That the respondents, Amicale Yarns Inc., a corporation, and Gregory Schlomm, individually and as an offcer 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 contained in the aforesaid initial decision.

HAFNER COFFEE CO. 815 Complaint