Harbor Hills Sportswear, Inc.

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IN THE MATTER OF HARBOR HILLS SPORTSWEAR , E\C., ET AL.

CONSENT ORDER, l:TC. , 11\' REGARD TO THE ALLEGED VlOLATIQN OF THE FED :RAL TRADE COMMISSIQK AND THE WOOL J-HonUCTS LABELING Ar;TS lJocket. 7'253. Cumplaint, Sept. 1958-Decisiun, Dec. , 1958 Consent order requiring manufacturers in New Yark City tu cease violating the Wool Products Labeling Act by falsely labeling and invoicing as silk and worsted" or " Made in lLaly, " m( s slacks made of cloth which contained other fibers than silk and wool or contained no wool at al1 , and were manufactured in the "Gnited States; hy failing to conform to other labeling requircllents of the Act; and by furnishing false guaranties that their wool lJl'oclucts were not misbranded. Ml" Thomas F. IIOIudc,' for the Commission. Mr. Fmncis M. DeCaTo of New York, N. for respondents. I:-ITIAL DECISION BY J. EARL Cox, HEARING EXAMINER The complaint charges respondents with misbranding certain of their wool products, furnishing false g-uaranties that said products were not misbranded, and making false and misleading statements concerning such products on sales invoices and shipping memoranda, representing that said products "were composed of silk and \vool, and were made in HaJy, 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 ent.ered into an Agreement Containing Consent Order to Cease and Desist, which was approved by the director and "" assistant director of the Commission s Bure.au of Litigation, and thereafter transmitted to the hearing examiner for consideration.

The agreement states that respondent Harbor Hills Sportswear Inc. , is a corporation exist.ing and doing business under and by virtue of the bws of the State of New York, with its offce and principal place of business locat.ed at. 928 Broadway, Nc\v York. , and that indivir1ua1 respondents David Platoff and Herbert Platoff are president and vice president, respectively, of said corporate respon(lent and are located at the same address. The agreement provides, among other thjngs, that respondents HARBOR HILLS SPORTSWEAH, INC., ET AL. 825 824 Order 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 offcial record unless and until it becomes a part of the decision 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 settement 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 Jaw, 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 chargeclthcrein as being in violation of the Wool Products Labeling Acl of 1939 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 pubUe interest, and accepts the ag!"eement containing consent order to cease and desist as part 01' the record upon which this decision is based. Therefore It is O1'de,' That respondents Harbor Hms Sportswear, Inc. a corporation, and its offcers, and David Platon and Herbert Platoff, individually and as offcers of said corporation, and respondents ' representatives, agents, and employees, directly or throug-h any corporate or other device, in connection \"ith the introduction, or ll1manufacture for introduction into commerce, or the offering for sale, sale, transportation, or distribution in commerce, as "commerce" is defmed in the Federal Trade Commission Act, and the Wool Products Labeling Act of 1939, of men slacks or other " wool products" as such products are defined in said Wool Products Labeling Act, clo forthwith cease and desist from:

Order 55 F.

A. 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. Falsely or deceptively identifying such products or the fabric thereof as being made or manufactured in or imported from Italy or any other foreign country, or otherwise stanlping, tagging, labeling, marking, or representing such product in a manner which is false, misleading, or deceptive in any respect; 3. Failing to securely affx 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 aD other fibers;

b. The maximum percentage of the total weight of such wool product of any nonfibrous loading, filing, or adulterating matter; c. The name or the registered identification number of the manufacturer of such \\7001 product, or of one or more persons engaged in introducing such wool product into commerce, or in the offering for sale, sale, or distribution or delivery for shipment thereof in commerce, as "co1l1merce" is defined in the W 001 Products Labeling Act of 1939;

4. Furnishing false guaranties that said men s slacks or other wool products are not misbranded under the provisions of said Wool Products Labeling Act, when there is reason to believe that the wool products so guaranteed may be introduced, sold, transported, or distributed in commerce as "commerce" is defined in said Act.

lt is fUTtheT orde,' That respondent Harbor Hils Sportswear Inc., a corporation, and its offcers, and David 1'1atoff and Herbert Platoff, individually and as offcers of said corporation, and respondents' representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of men s slacks or any other such products in commerce, as IIcommerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from: A. Misrepresenting the character or amount of the constituent HARBOR HILLS SPORTSWEAR, INC., ET AL. 827 824 Decision fibers contained in such products on invoices or shipping memoranda applicable thereto or in any other manner; B. Misrepresenting the country of origin of such products or the fabric thereof on invoices or shipping mcmoranda applicable thereto or ill any other manner.

DECISION OF THE CO MISSION 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 thc 3d day of December 1958, become thc dccision of the Commission; and according ly ;

It is uTdcreel That respondents Harbor IIiJs Sportswear, Inc. a corporation, and David Platoff and Herbert PlatofT, individually and as offccrs of said corporation, shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing, sctting forth in detail the manner and form in which they have complied with the order to cease and desist. ., 828 FEDERAL TRADE COMMISSION DECISIO:'S Decision 55 F.