Teitelbaum Furs, LTD. of America

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IN THE MATTER OF TEITELBAUM FURS, LTD. OF AMERICA, ET AL. CONSEKT ORDER, ETC., r REGARD TO THE ALLEGED VlOLATlO0' OF THE FEDERAL TRADE COMMISSION AKD THE FUR PRODUCTS LAlmLING ACTS May 1959 Docket 7222. Complaint, Any. 958-Decision, C011Slont order requiring furriers in Beverly HiUs, Calif., to cease violating the Fur Products Labeling Act by falsely identifying animals producing certain furs, by using" the t!?rrn "blended" improperly, by failing' to label and invoire as "secondhand fur" where required, and by failng in other respects to comply with labeling and invoicing requirements; and by advertising in newspapers which failed to disclose the names of animals producing certain furs 01' that some products contained used, artificially colored, or secondhand fur.

MT. William A. Somers; Mr. John J. McNally and Mr. E"qene Knplan for the Commission.

for Leland and Plntlne,' of Los Angeles, Horace L. Kalik, Esq. Calif. , for respondents.

INITIAL Decislon BY LOREN H. LAUGHLIN, HEARING EXAMINER The Federal Trade Commission (sometimes also hereinafter referred to as the Commission) on August 5 , 1958, issued its complaint herein, charging the ahove-named respondents with having violated the provisions of both the Federal Trade Commission Act and the Fur Products Labeling Act, together with the Rules and Regulations promulgated thereunder, and the respondents were duly served with process.

On March 18 , 1959 , there was submitted to the undersigned hearing examiner of the Commissiun for his consideration and approval an "Agreement Containing Consent Order to Cease and Desist " which had been entered into by and between respondents and the attorneys for both parties, under date of March 10, 1959, subject to the approval of the Bureau of Litigation of the Commission, which had subsequently duly approved the same. On due consideration of such agreement, the hearing examiner finds that said agreement, both in form and in content, is in accord with 93.25 of the Commission s Rules of Practice for Adjudicative Proceedings, and that by said agreement the parties have specifically agreed to the following matters: 1. Respondent Teitelbaum Furs, Ltd. , of America is a cor- TEITELBAUM FURS, LTD. OF A:\ERICA, ET AI" 1745 1744 Decision poration organized, existing and doing business under and by virtue of the laws of the State of California, with its offce and principal place of business located at 414 North Rodeo Drive, Beverly Hills, Calif. Respondent Irving B. Telson is an individual and is president of said corporate respondent, and has his offce and principal place of business at the same address as said corporate respondent.

2. 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.

:J. This agreement disposes of all of this proceeding as to all parties.

4. Respondents waive:

(a) Any further procedural steps before the hearing examiner and the Commission;

(b) The making of findings of fact or conclusions of law; and (c) All of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement.

5. 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.

6. This agreement shall not become a part of the offcial record unless and until it becomes a part of the decision of the Commission.

7. This 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. 8. The following order to cease and desist may be entered in this proceeding by the Commission without further notice to respondents. When so entered it shall have the same force and effect as if entered after a full hearing. It may be altered, modified or set aside in the manner provided for other orders. The complaint may be used in construing the terms of the order. Upon due consideration of the complaint filed herein and the said "Agreement Containing Consent Order to Cease and Desist " the latter is hereby approved, accepted and ordered filed the same not to become a part of the record herein, however unless and until it becomes part of the decision of the Commission. The hearing examiner finds from the complaint and the said Agreement Containing Consent Order to Cease and Desist" that 1746 FEDERAL TRADE COMMISSIOK DECISIONS Order 55 F.

the Commission has jurisdiction of the subject matter of this proceeding and of each of the respondents herein; that the complaint states a legal cause for complaint under the Federal Trade Commission Act and the Fur Products Labeling Act and the Rules and Regulations promulgated by the Commission under the latter Act, against each of the respondents both generally and in each of the particulars alleged therein; that this proceeding is in the interest of the public; that the following order as proposed in said agreement is appropriate for the just disposition of all of the issues in this proceeding as to all of the parties hereto; and that said order therefore should be, and hereby is entered as follows;

ORDER It is ordered That Teitelbaum Furs, Ltd. of America, a corporation, and its offcers, and Irving E. Te1so11, individually and as an offcer of said corporation, and respondents ' representatives, agents, and employees, directly or through any corporate or other device, in connection with the introduction into commerce, or the sale, advertising, offering for sale, transportation 01' distribution of fur products in commerce, or in connection with the sale, advertising, offering for sale, transportation or distribution of fur products which have been made in whole or in part of fur which has been shipped and received in commerce, as commerce fur " and "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from: A. Mishranding fnr products by;

1. Falsely or deceptive,l.v labeling or otherwise falsely or deceptively identifying fur products with respect to the name or names of the animal or animals that produced the fur from which said fur products had been manufactured; 2. Failing to affx labels to such 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 Name Guide and as prescribed under the Rules and Hegulations;

(b) That the fur product contains or is composed of used fur; (c) That the fur product contains or is composed of bleached, dyed or otherwise artificially colored fur; (d) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur; TEITELBAUM FURS, LTD, OF AMERICA, El' AL. 1747 1744 Order (e) The name, or other identification issued and registered by the Commission, of one or more persons who manufactured such fur product for 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 contained in the fur product;

3. Setting forth on labels attached to fur products: (a) Information required under 9'1 (2) of the Fur Products Labeling Act and the Rules and Regulations promulg-"ted thereunder in abbreviated form;

(b) The term " blended" as part of the information required under 95 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe the pointing' , bleaching, dyeing or tip-dyeing of furs; (c) Information required under 94 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder mingled with non-required information; (d) Information required under 94 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in handwriting;

4. Feeiling to set forth on labels the term "second hand" in describing fur products where required by Rule 23: 5. Failing to set forth sepeerately on labels eeUeeched to fur products composed of two 01' more sections containing different animal furs the information required under S/! (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder with respect to the fur comprising each section; B. Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoices to purchasers of fur products showing:

(a) The neeme or names of the animal or animals producing the fur or furs conteeined 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 fur: (c) That the fur product contains or is composed of bleached dyed, or otherwise artificially colored fur: (d) That the fur product is composed in whole or in substantial peert of paws, tails, bellies, or waste fur; (e) The name and address of the person issuing such invoice; Decision 55 F, (f) The name of the country of origin of any imported furs contained in a fur product;

(g) The item number or mark assigned to a fur product; 2. Using on invoices the name or names of any animal or animals other than the name or names provided for in paragraph E(1) (a) above;

3. Setting forth on invoices pertaining to fur products: (a) Information required under 95 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form;

(b) The term "blended" as part of the information required under 95 (b) (I) of the Fur Products Labeling Act and the Rules and Regulations promulgaied thereunder to describe the pointing, bleaching, dyeing or tip-dyeing of furs; 4. Failing to set forth on invoices the term " second hand fur where required by Rulc 23;

5. Failing to set forth separately on invoices pertaining to fur products composed of two or more sections containing different animal furs the information required under 95 (b) (1) of the Fur Products Labeling Act and the H. ules and Regulations thereunder with respect to the fur comprising each section; C. Falsely or deceptively advertising fur products through the use of any advertisement, representation, public announcement or notice which is intended to aid, promote, or assist, diredly or indirectly, in the sale or offering for sale of fur products, and which:

1. Fails to disclose:

(a) The name or names of the animal or animals producing the fur or furs contained in the fur products as set forth in the Fur Products Name Guide and as prescribed under the Rules and Regulations;

(b) That the fur products contain or are composed of used fut;

(c) That the fur products contain or are composed of bbiched dyed, or otherwise artificially colored fur; 2. Fails to set forth the term "second hand fur" where required by Rule 23 of the Rules and Regulations. 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 TEITELBAUM FURS, LTD, OF AMERICA, ET AL. 1749 1744 Decision 9th day of May 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.

Decision 55 F,