H. Stein & Sons, Inc.

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

IN THE MATTER OF H. STEIN & SONS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 7268. Complaint, Oct. 1, 1958—Decision, Jan. 10, 1959 Consent order requiring manufacturers in Chicago to cease violating the Wool Products Labeling Act by such practices as labeling and invoicing as “70% Wool, 30% Rayon,” “65% Wool, 35% other fibers,” ‘100% Wool,” etc., woolen stocks which contained substantially less woolen fibers than the percentages given; by failing to label wool products as required and by furnishing false guaranties that certain of their wool products were not misbranded.

William A. Somers, Esq., for the Commission. James M. Goff, Esq., of Sonnenschein, Lautmann, Levinson, Rieser, Carlin & Nath, of Chicago, Ill., for respondents. INITIAL DECISION BY ROBERT L. PIPER, HEARING EXAMINER The Federal Trade Commission issued its complaint against the above-named respondents on October 1, 1958, charging them with having violated the Wool Products Labeling Act, the rules and regulations issued thereunder, and the Federal Trade Commission Act, by misbranding, misrepresenting, and falsely guaranteeing their wool products. Respondents appeared by counsel and entered into an agreement, dated November 7, 1958, containing a consent order to cease and desist, disposing of all the issues in this proceeding without further hearings, which agreement has been duly approved ‘by the director of the Bureau of Litigation. Said agreement has been submitted to the undersigned, heretofore duly designated to act as hearing examiner herein, for his consideration in accordance with §3.25 of the Rules of Practice of the Commission.

Respondents, pursuant to the aforesaid agreement, have admitted all of the jurisdictional allegations of the complaint and agreed that the record may be taken as if findings of jurisdictional facts had been made duly in accordance with such allegations. Said agreement further provides that respondents waive al] further procedural steps before the hearing examiner or the Commission, including the making of findings of fact or conclusions of law and the right to challenge or contest the validity of the Order 55 F.T.C.

order to cease and desist entered in accordance with such agreement. It has also been agreed that the record herein shall consist solely of the complaint and said agreement, that the agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission, that 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, that said order to cease and desist shall have the same force and effect as if entered after a full hearing and may be altered, modified, or set aside in the manner provided for other orders, and that the complaint may be used in construing the terms of the order.

This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing the consent order, and it appearing that the order and agreement cover all of the allegations of the complaint and provide for appropriate disposition of this proceeding, the agreement is hereby accepted and ordered filed upon this decision and said agreement becoming part of the Commission’s decision pursuant to §§3.21 and 3.25 of the Rules of Practice, and the hearing examiner accordingly makes the following findings, for jurisdictional purposes, and order: 1. Respondent H. Stein & Sons, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois. Respondents Max Stein, Hyman Stein and Milton Stein, are individuals and officers of said corporate respondent. Said corporate and individual respondents have their office and principal place of business at 1250 South Union Street, in the City of Chicago, State of Illinois. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents hereinabove named. The complaint states a cause of action against said respondents under the Wool Products Labeling Act and the Federal Trade Commission Act, and this proceeding is in the interest of the public.

ORDER It is ordered, That respondents H. Stein & Sons, Inc., a corporation, and its officers, and Max Stein, Hyman Stein and Milton Stein, individually and as officers 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 of- H. STEIN & SONS, INC., ET AL. 1055 1053 Order fering 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 woolen stocks, or other “wool products,” as such products are defined in, and subject to, said Wool Products Labeling Act, do forthwith cease and desist from:

A. Misbranding such products by:

1. Falsely or deceptively tagging, labeling or otherwise identifying such products as to the character or amount of the constituent fibers contained therein ;

2. Failing to securely affix to, or place on, each such product a. Stamp, tag or 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 per centum or more, and (5) the aggregate of al] other fibers;

(b) The maximum percentage of the total weight of such wool product of any nonfibrous loading, filling or adulterating matter ; (c) The name or the registered identification number of the manufacturer of such wool product or one or more persons engaged in introducing such wool] product into commerce, or in the offering for sale, sale, transportation, distribution or delivery for shipment thereof in commerce, as “commerce” is defined in the Wool Products Labeling Act of 1939.

B. Furnishing false guaranties that wool waste or other wool products (as “wool products” are defined in the Wool Products Labeling Act) are not misbranded under the provisions of the 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. It is further ordered, That H. Stein & Sons, Inc., a corporation, and its officers, and Max Stein, Hyman Stein, and Milton Stein, individually and as officers 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 woolen stocks, or any other products, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from: Misrepresenting the character or amount of the constituent Decision 55 F.T.C.

fibers contained in such products on invoices or shipping memoranda applicable thereto or in any other manner. 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 10th day of January 1959, become the decision of the Commission ; and, accordingly:

It is ordered, That the above-named respondents 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.

FELIX FRIEDMAN 1057 Decision