Ladd Knitting Mills, Inc.

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IN THE MATTER OF LADD KNITTING :\lills, I"C., ET AL.

CONSEKT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSIOK ACT Docket 7216. o1ip/aint, Aug. -4, lD58-IJecis'ioil, Dec. 24, 1958 Consent order requiring two affliated manufacturers and sellers of women sweaters, with oiners in Reading, Pa., ano New York City, to cease advertising' falsely in mag"azincs and trade papers and on attached tags and labels, that their orlon sweaters would " not pill or fuzz" or were PilJ Proofed.

Mr. Guo' land S. Pe?' guson supporting complaint. Respondents, Pro se.

INITIAL DECISION BY JOHN B. POINDEXTER, HEARING EXAMINER On August 4 , 1958, the Federal Trade Commission issued a complaint charging Ladd Knitting Mills, Inc., a corporation and Ta1boti Knitiing :dils, Inc. ' a corporation and Lester C. Laufbahn, Kaney Laufbahn, and Stephen H. Lewis, individual1ly and as officers of said corporations, hereinafter referred to as respondents, with misleading and deceptive statements and representations in advertising their orion sweaters. After issuance and service of the complaint, the respondents and counsel supporting the complaint entered into an agreement for a consent order. The order disposes of the matters complained about. The agreement has been approved by the director and assistant director of the Bureau of Litigation. The pertinent provisions of said agreement are as 1'ol1ow8: Respondents admit air jurisdictional facts; the complaint may be used in construing the terms of the order; the order shall have the same force and eflect as if entered after a fun hearing and the said agreement shall not become a part of the official record of the proceeding unless and until it becomes a part of the decision of the Commission; the record herein shall consist solely of the complaint and the agreement; respondents waive the requirement that the decision must contain a statement of findings of fact and conclusions of law; respondents waive further procedural steps before the hearing; examiner and the Commission and the order may be altered, modified, or set aside in the manner J Now lmown as T"Jhott, In Order 55 F.

provided by statute for other orders; respondents waive any right to challenge or contest the validity of the order entered in accordance with the agreement and the signing of said 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.

The undersigned hearing examiner having considered the agreement and proposed order and being of the opinion that the acceptance thereof will he in the public interest, hereby accepts such agreement, makes the following jurisdictional lindings, and issues the following order:

JUHISDICTIONAL FINDINGS 1. Corporate respondent Ladd Knitting Mills, Inc. , is a corporation 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 North Sixth Street andlIeisters Lane Reading, Pa.

2. Corporate respondent Talbott, Inc. , formerly Talbott Knitting MilIs, Inc. , is a corporation existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 1407 Broadway, New York, N. , and with offces also at North Sixth Street and Heisters Lane, Reading, Pa.

Individual respondents Lester C. Laufbahn, Nancy Laufbahn and Stephen II. Lewis are officers of said corporations. They formulate, direct and control the policies and practices of the corporate respondents. The address of all individual respondents is the same as that of the corporate respondent, Ladd Knitting Mills, Inc.

3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents and the proceeding is in the public interest.

ORDER It is ordered That respondents Ladd Knitting :l1ills, Inc. , a corporation, and its offcers; Talbott, Inc., a corporation, and its officers and Lester C. Laufbahn, :\ancy Laufbahn, and Stephen H. Lewis, individually and as ofncers of said corporations, and respondents' agents, representatives and employees, directly or throug-h any corporate or other device, in connedion \"with the offering for sale a1e and distribution of women s orlan sweaters LADD KNITTING MILLS, INC., ET AL. 943 941 Decision or any other product made of orion, in commerce, as "commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

Representing, directly or hy implication, that said products are pil proofed, pill proof or that they wil not pill. DECISION OF THE COMMISSION AND ORDER TO FILE HE PORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s H.ules of Practice on the 24ththe initial decision of the hearing examiner shall, day of December 1958 , become the decision of the Commission; and, accordingly;

, Inc. , a It is O1'deTcd That respondents Ladd Knitting Mills corporation, and its offcers; Talbott, Inc., a corporation, and its , and Stephen offcers and Lester C. Laufbahn, Nancy Laufbahn H. Lewis, individually and as offcers 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.

Decision 55 F.