Freiss Originals, Inc.

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In tur Matrer or FREISS ORIGINALS, INC., ET. AL CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 7451. Complaint, Mar. 24, 1959—Decision, July 9, 1959 Consent order requiring New York City manufacturers to cease violating the Wool Products Labeling Act by labeling as 100% wool, ladies’ coats which contained a substantial quantity of other fibers; by failing to label certain wool products as required; and by furnishing false guarantees that certain of their wool products were not misbranded. Mr. Kent P. Kratz for the Commission.

Mr. Otto A. Samuels, of New York, N.Y., for respondents. IntriaL Decision sy J. Ear, Cox, Heartne EXAMINER The complaint charges respondents with misbranding certain of their wool products, in violation of §4(a)(1) and §4(a) (2) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, and with furnishing false guarantees that FREISS ORIGINALS, INC., ET AL. 39 38 Decision certain of their wool products were not misbranded, in violation of 89 of said Act, which practices constitute unfair and deceptive acts and practices and unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act. After the issuance of the complaint, respondents, their counsel, 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’s Bureau of Litigation, and thereafter transmitted to the Hearing Examiner for consideration.

The agreement states that respondent Freiss Originals, 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 205 West 39th Street, New York, New York, and that individual respondents Isidore Reiss, Howard Reiss, Fred Reiss and Edward Reiss are president, vice president, treasurer, and secretary, respectively, of the corporate respondent; that they cooperate in formulating, directing and controlling the acts, policies and practices thereof; and that their office and principal place of business is located at the same address as that of said corporate respondent.

The agreement provides, among other things, that 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 official 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 settlement 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 decision shal] have the same force and effect as if entered after a full hearing. Respondents waive any further procedural steps before the Hearing Examiner and the Commission, the making of findings of fact or conclusions of Jaw. 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 order agreed upon fully disposes of all the issues raised in the complaint, and adequately prohibits the acts and practices Order 56 ELTAC.

charged therein as being in violation of the Wool Products Labeling Act of 1939 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 7s ordered, That respondent Freiss Originals, Inc., a corporation, and its officers, and Isidore Reiss, Howard Reiss, Fred Reiss and Edward Reiss, 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 offering 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 ladies’ coats or other “wool products,” as such products are defined in and subject to the Wool Products Labelang Act of 1939, do forthwith cease and desist from:

A. Misbranding such products by:

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

2, Failing to securely affix to or place on each such product a stamp, tag, 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, (8) reused wool. (4) each fiber other than wool where said percentages by weight. of such fiber is five percentuin or more, and (5) the aggregate of all other fibers;

(b) The maximum percentages of the total weight of such wool product. of any non-fibrous loading, filling or adulterating matter ; (c) The name or the registered identification number of “the manufacturer of such wool product or of 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. Fummishing false guarantees that wool products 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. FORBES & WALLACE, INC., ET AL. 4] 38 Decision 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 did, on the 9th day of July, 1959, become the decision of the Commission; and, accordingly : It is ordered, That respondents Freiss Originals, Inc., a corporation, and Isidore Reiss, Howard Reiss, Fred Reiss, and Edward Reiss, individually and as officers 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. .