Adam, Meldrum & Anderson Company, Inc.

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IN THE MATTER OF ADAM, YIELDRU 1 & At;DERSON COMPANY, INC. CONSENT ORDER, ETC., IN REGARi TO THE ALU:GED VIOLATION OF THE FEDERAL TRADE COM)1ISSIOK AND THE I"UR PRODUCTS LABELI:!G ACTS Docket 7340. Complaint, Dec. 2.9 1.958-Decisi, May, 1.959 Consent order requiring a Buffalo, I\' , furrier to cease violating the Fur Products Labeling Act by failing to set forth in invoices the terms "Persian Lamb Dyed Mouton-processed Lamb " and "dyed Broadtailprocessed Lamb " and failing' in other respects to comply with labeling and invoicing requirements; and by newspaper advertising- which failed to disclose the names of animals producing certain furs or the country of origin, the fact that some fur products contained artificially colored or cheap or waste fur; which named other animals than those producing- the fur in some products; and which represented prices as reduced from regular prices which were in fad fictitious, or as reduced by certain percentages when such was not true.

M1". Alvin D. Edel30n for the Commission, IV!?' . John F. Connelly, of Buffalo, N. , for respondent. INITIAL DECISION BY WALTER R. JOHNSOK, HEARING EXAMINER In the complaint dated December 29 , 1958 , the respondent is charged with violating the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act and the Rules and Regulations made pursuant thereto.

On February 12, 1958, the respondent and his attorney entered into an agreement with counsel in support of the complaint for a consent order.

Under the agreement, respondent admits the jurisdictional facts alleg-ed in the complaint. The parties agree, among other things, that the cease and desist order there set forth may be entered without further notice and have the same force and effect as if entered after a full hearing, and the document includes a waiver by respondent of all rights to challenge or contest the validity of the order issuing in accordance therewith. The agreement is for settement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint.

The hearing examiner finds that the content of the agreement meets all of the requirements of Section 3.25 (b) of the Rules of the Commission.

Order 55 F.

The hearing examiner being of the opinion that the agreement and the proposed order provide an appropriate basis for disposition of this proceeding as to all of the parties, the agreement is hereby accepted and it is ordered that the agreement shall not become a part of the offcial record of the proceeding unless and until it becomes a part of the decision of the Commission. The following jurisdictional findings are made and the following order issued.

1. Respondent Adam, Meldrum & Anderson Company, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 404 Main Street, Eu/hlo, N.

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

ORDER It is (J'dCTCd That respondent Adam, Meldrum & Anderson Company, Inc. , a corporation, and its offcers, and respondent' representatives, agents and employees, directly or through any corporate or other device, in connection "with the introduction into commerce, or the sale, advertising or offering for sale, transportation or distribution in commerce, of fur products, or in connection with the sale, advertising, offering for sale, transportation, or distribution of fur products which are 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 forth"with cease and desist from: 1. Misbranding fur products by:

A. Failing to affx labels to fur products showing: (1) 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 Nan1c Guide and as prescribed under the Rules and Reg-ulations:

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

(3) That the fur product contains or is composed of bleached, dyed or otherwise artificially colored fur, v,rhen such is the Jact; (4) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, ".-hen such is the fact;

ADAM, MELDRUM & ANDERSON CO. , IKC. 1791 1789 Order (5) 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; (6) The name of the country of orig-in of any impo,.ted furs contained in a fur product;

(7) The item number or mark assigned to a fur product. B. Setting forth on labels affxed to fur products: (1) Information required .under Section 4 (2) of the Fur Products Labeling Act and the Rules and Reg-ulations promulgated thereunder in abbreviated form;

(2) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations thereunder mingled with nonrequired information.

(3) Information required under Section ,I (2) of the Fur Prod- Llcts Labeling- Act and the Rules and Regulations promulgated thereunder in hand\writing.

C. Failing to set forth the information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in the required .sequence. 2. Falsely or deceptively invoicing fur products by: invoices to purchasers of fur products showing:A. Failing to furnish (1) 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 Produds Name Guide and as prescribed under the Rules and Hegulations;

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

(3) That the fur product contains or is composed of bleached dyed or otherwise artificially colored fur, when such is the fact; (1) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, \vhen such is the fact;

(5) The name and address of the person issuing such invoice: (6) The name of the country of origin of any imported furs contained in a fur product;

(7) The item number or mark assigned to a fur product. B. Falsely or deceptively or otherwise identifying fur products as to the name or names of the animal or animals that produced the fur from which such products were manufactured. 1792 FEDERAL TRADE COMMISSION DECISIO:-S Ordcr 55 F.'r.

C. Setting forth information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form. D. Failing to set forth the term "Persian Lamb" in the manner required by law.

E. Failing to set forth the term "Dyed Mouton-processed Lamb" in the manner required by law.

F. Failing to set forth the term "Dyed Broadtail-processed Lamb" in the manner required by law.

3. 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, directly or indirectly, in the sale, or offering for sale of fur products, and which:

A. Fails to disclose:

(1) 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 Regulations;

(2) That the fur product contains or is composed of bleached, dyed or otherwise artificially colored fur, when sllch is the fact; (3) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, when such is the (4) The name of the country of origin of any imported fursfact;contained in a fur product. B. Sets forth the name or names of any animal or animals other than the name or names specified in Section 5 (a) (1) of thc Fur Products Labeling Act.

C. Fails to set forth the term " Dyed Mouton-processed Lamb" in the manner required by law.

D. Fails to set forth the term "Dyed Broadtail-processed Lamb" in the manner required by law.

E. Fails to disclose that fur products are composed in whole or in substantial part of flanks, when such is the fact. F. 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 respondent has usually and customarily sold such products in the recent regular course of business. G. Represents, directly or by implication, through percentage savings claims that the regular or usual retail prices charged ADAM, MELDRU:I & ANDERSON CO" INC, 1793 1789 Order by respondent for fur products in the recent regular course of business were reduced in direct proportion to the amount of savings stated, when contrary to fact.

ORDER REOPEJ-ING PROCEEDING AND AMENDING DECISION OF THE COMMISSION It appearing that the Commission by order issued April 20 1959, adopted as its own decision the hearing examiner s initial decision in this proceeding- and directed the respondent, within sixty (60) days after service upon it of said order, to file a report of compliance with the order contained in said initial decision; and It further appearing that the initial decision w"s deficient in that it failed to incorporate the substance of certain pertinent provisions of the consent order agreement on the basis of which it was issued; and The Commission being of the opinion that such deficiency shoo ld be corrected:

It is ordered That this proceeding be, "nd it hereby is reopened.

It is further orde?' That the afores"id decision be, and it hereby is, amended by inserting- between the second and third paragraphs thereof the following parag-raph nder the agreement, respondent admits the jurisdictional facts alleg-ed in the complaint. The parties ag-ree, among other things, that the cease and desist order there sct forth m"y be entered without further notice and have the same force r,nd effect as if entered after a full hearing, and the document includes" waiver by respondent of all rights to challenge or contest the validity of the order issuing- in accordance therewith. The agreement is for settlement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint.

It is further onlered That the respondent Adam, Meldrum & Anderson Company, Inc. , shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which it has complied with the order to cease and desist. 1794 FEDERAL TRADE COM)ISSIO:\ DECISIONS Findings 55 F.