Kisba Fur Corporation

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IN THE MATTER OF KISBA FUR CORPORATION, ET AL.

CONSENT ORDER, ETC.. 11'' REGARD TO THE ALLEGED VIOLA TION OF THE FEDERAL TRADE COMMISSION AND THE Flm PRODUCTS LAnEUNG ACTS Docket 719.1. Complaint, J,tly 1955-Dec,Bion, Dec. 30, 1958 Consent order requiring furriers in New York City to cease violating the .Fur Produds Labeling Act by invoicing fur products with fictitious prices and making pricing and savings claims without keeping adequate reeords as a b3Sis therefor; by failing to comply in other respects with the labeling and invoicing requirements of the Act.; and by furnishing a false guaranty that certain of their furs were not misbranded. Mj' . Charles W. O' Connell for the Commission. Mr. Manfj'ed H. Benedek of Xew York, N. , for Kisba Fur Corporation and I-I arry 1. Kushner; Goldstein Goldstein New York, N. , for Sam Bassin and Sol Kushner. INITIAL DECISION BY J. EARL Cox, I-EARI)OG EXAMINER The complaint charges respondents with misbranding and with falsely and deceptively invoicing and advertising certain of their fur products, with failing to maintain full and adequate records disclosing the Jacts upon which were based pricing and savings claims and representations as to such products, and with furnishing a false guaranty that certain of their furs or fur products were not misbranded, falsely invoiced and falsely advertised in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder, and of the Federal Trade Commission Act.

, their counsel, After the issuance of the complaint, respondents 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 Kisba Fur Corporation is a corporation organized, existing and doing business under and , with its offce by virtue of the laws of the State of )lew York and principal place of business located at 315 Seventh A venue :tew York, KY., and that respondents Harry 1. Kushner (erroneously referred to in the complaint as Harry J. Kushner), 948 FEDERAL TRADE COMMISSIO" DECISIONS Order 55 F.

Sam Bassin (erroneously referred to in the complaint as Sam Bassen), and Sol Kushner are president, secretary-treasurer and vice president, respectively, of said corporation, their address being the same as that of the corporate respondent. The agreement further states that respondent Sam Bassin resides at 2105 Wallace Avenue, Bronx, N. , and respondent Sol Kushner resides at 2501 Nostrand Avenue, Brooklyn, N. The agreement provides, among other things, that the 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 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 deeision shall have the same force and effect as if entered after a full hearing.

Respondents v;aive 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 oreler agreed upon fully disposes of al1 the issues raised in the complaint, a11l "dequately prohibits the acts ann practices chargen 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 ordered That respondents Kisba Fur Corporation, a corportion, and its offcers, and Harry 1. Kushner, Sam Bassin and Sol Kushner, individually and as offcers of "tid corporation, and respondents' representatives, agents and employees, directly , KISBA FUR CORPORATION, ET AL. 949 947 Order or through any corporate or other device, in connection with the introduction into commerce, or the manufacture for introduction into commerce, or the sale, ac1vertising-, or offering for sale in commerce, or the transportation or distribution in commerce, of fur products, or in connection \\'i1.h 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 "vhieh has been shipped and received in commerce as "commerce, fUf " and "fur products" arc defined in the Fur Products Labeling Act, do forthwith cease and desist from: A. Misbranding' fur products by:

1. Failing to affx 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 ::ame Guide and as prescribed under the Rules and Regulations;

(b) That the fur product contains or is composed of used fllr when such is the fact;

(c) That the fur prodllct contains or is composed of bleached dyed, or otherwise artiicially colored fllr, when such is the fact; (d) That the fllr product is composed in whole or in substantial part of paws, tails, bellies, or waste Jur when such is the fact;

(e) The name, or other identification issued and registered by the Commission, of one or more persons who manufactured such fur products 1'01' introduction into commerce, introduced it into commerce, sold it in commerce, advertised or offered it for sale in commerce, or transported or distributed it in commerce; (f) The name of the country of origin of any imported furs used in the fur products;

2. Setting forth on labels attached to fur products information required under S4 (2) of the Fur Products Labcling Act and the Rules and Regulations promulgated thereunder \which is intermingled with nonrequired information;

B. Falsely or deceptively invoicing fur products by: 1. Failng to furnish invoices to purchasers of Jur 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 Fur Products Name Guide and as prescribed under the Rules and Regulations;

950 FEDERAL TRADE CmlMISSJON DECISIONS Decision 55 F.

(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 invoices; (f) The name of the country of origin of any imported furs contained in the fur product;

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

C. Falsely or deceptively advertising fur products through the use of any advertisement, representation, or public announcement or notice which is intended to aid, promote, or assist, directly or indirecUy, in the sale or offering for sale of fur products and which 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 respondents have usually and customarily solel such product in the recent regular course of their business; D. IVlaking pricing claims or representations in advertisements respecting comparative prices, percentage savings claims, or claims that prices are reduced from regular or usual prices, unless respondents maintain full and adequate records disclosing the facts upon which such claims or representations are based; E. Furnishing false guaranties that certain furs or fur products are not misbranded, falsely invoiced or falsely advertised when there is reason to believe that said furs or fur products may be introduced, sold, transported or distributed in commerce. DECISION OF THE COMMISSIOK AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Hules of Practice the initial decision of the hearing examiner shall, on the 30th day of December 1958, become the decision of the Commission; and accordingly:

It is Q1' dered That respondents Kisba Fur Corporation, a corporation, and Harry 1. Kushner (erroneously named in the com- KISBA FUR CORPORATION, ET AL. 951 947 Decision plaint as Harry J. Kushner), Sam Bassin (erroneously named in the complaint as Sam Bassen), and Sol Kushner, 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, settng forth in detail the manner and form in which they have complied with the order to cease and desist. Order 55 F.