Nichimen Co., Inc.

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

In THe Marrer or NICHIMEN Coo., INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 7369. Complaint, Jan. 28, 1959—Decision, Aug. 1, 1959 Consent order requiring a New York City seller to cease violating the Wool Products Labeling Act by labeling as “camel 60%, wool 40%,” woolen fabrics which contained substantially less camel’s hair than so represented, by failing to set forth the correct percentage of camel’s hair in other wool products, and by failing to tag certain wool products as required. dir. Thomas F. Howder for the Commission. Tompkins, Boal & McQuade, of New York, N.Y., for respondents. Iniriau Decision py J. Eart Cox, Heartnc Examiner The complaint charges respondents with misbranding certain of their wool products, and with the use of false, misleading and deceptive statements and representations on contracts, correspondence, and sales invoices and memoranda as to the character and amount of the constituent fibers contained in said 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 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 Nichimen Co., Inc., is a corporation existing and doing business under and by virtue of the Order 56 I.T.C.

laws of the State of New York, with its office and principal place of business located at 39 Broadway, New York, New York, and that individual respondents KX. Fujiwara, S. Uyeda and N. Nara are president, secretary and treasurer, respectively, of the corporate respondent, and are located at the same address. 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 shall 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 charged therein as being in violation of the Wool Products Labeling Act of 1989 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 Nichimen Co., Inc., a corporation, and its officers, and I<. Fujiwara, S. Uyeda, and N. Nara, 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 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 Woo] Products Labeling Act of 1939, of woolen fabrics composed of camel's hair and wool, or other “wool products” as such products NICHIMEN CO., INC., ET AL. 135 133 Decision are defined in said Wool Products Labeling Act, 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 contained therein;

2. Failing to securely affixed 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 percentage, by weight, of such fiber is five percentum or more, and (5) the aggregate of all other fibers;

(b) The maximum percentage 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 or distribution or delivery for shipment thereof in commerce, as “commerce” is defined in the Wool Products Labeling Act of 1939;

3. Failing to disclose the true percentage of specialty fibers present in wool products when the name of the specialty fiber is used in lieu of the word “wool,” as provided for in Rule 18 of the Rules and Regulations.

Tt is further ordered, That respondent Nichimen Co., Inc., a corporation, and its officers, and K. Fujiwara, 8. Uyeda, and N. Nara, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or thr ough any corporate or other device, in connection with the offering for sale, sale or distribution of woolen fabrics or any other such products, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist. from: A. Misrepresenting the character or amount of the constituent fibers contained in such products on contracts, correspondence sales invoices and 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 did, on the Ist day of Decision 56 FTC.

August, 1959, become the decision of the Commission; and, accordingly: .

It is ordered, That respondents Nichimen Co., Inc., a corporation, and K. Fujiwara, 8. Uyeda and N. Nara, 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.