S. Kann Sons Co.

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

In THE Marrer or S. KANN SONS CO.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket 7898. Complaint, Feb. 6, 1959—Decision, Sept. 2, 1959 Consent order requiring a Washington, D.C., departuent store to cease violating the Fur Products Labeling Act by failing to set forth on invoices the term “Persian Lamb” as required and otherwise failing to comply with invoicing requirements; by advertising which failed to disclose the names of animals producing certain fur, to reveal that some fur products were composed of artificially colored fur, to use the term “Broadtail-processed Lamb” as required, and represented fictitious prices as usual retail prices; by failing to keep adequate records as a basis for such pricing claims; and by failing in other respects to comply with invoicing and advertising requirements. Mr. Thomas F. Howder for the Commission. Mr. Charles W. Mander, of Washington, D.C., for respondent. Iniriau Decision sy J. Ear, Cox, Hearing Examiner The complaint charges respondent with falsely and deceptively invoicing and advertising certain of its fur products, in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder, and of the Federal Trade Commission Act. After the issuance of the complaint, respondent, its 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 S. Kann Sons Co. is a corporation existing and doing business under and by virtue of the S. KANN SONS CO. 213 212 Order laws of the State of Maryland, with its office and principal place of business located at 8th and Market Space, N.W., in the City of Washington, D.C. .

The agreement provides, among other things, that respondent admits all the jurisdictional facts alleged in the complaint, and agrees 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 shail 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 respondent that it has 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. Respondent waives 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 it 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 al] the issues raised in the complaint, and adequately prohibits the acts and practices charged therein as being in violation of the Fur Products Labeling Act 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 respondent. S. Kann Sons Co., a corporation, and its officers, and respondent’s 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 or distribution in commerce, of fur products, 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:

Order 6 F.T.C.

A. Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoices to purchasers of fur products showing: oo (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 Regulations; (b) That the fur product contains or is composed of used fur, when such is the fact;

(c) That the fur product contains or is composed of bleached, dyed or otherwise artificially colored fur, when such is the fact; (d) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, when such is the fact; (e) The name and address of the person issuing such invoice; (f) The name of the country of origin of any imported furs contained in the fur product;

(g) The item number or mark assigned to a fur product; 2. Setting forth on invoices the name of an animal other than the name of the animal that produced the fur contained in the fur product;

3. Setting forth on invoices information required under 85(b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form; 4. Failing to use the term “Persian Lamb” as required by Rule 8 of the said Rules and Regulations promulgated under said Act; B. Falsely or deceptively advertising fur products through the use of any advertising, 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: 1. Fails to disclose:

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

(b) That the fur products contain or are composed of bleached, dyed, or otherwise artificially colored fur, when such is the fact; 2. Fails to use the term “Broadtail-processed Lamb” as required by Rule 10 of the Rules and Regulations promulgated under the Fur Products Labeling Act;

3. Fails to set forth all the information required under $5(a) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in type of equal size and conspicuousness and in close proximity with each other:

4. Represents, directly or by implication, that the retail prices of AUDIVOX, INC., ET AL. 215 212 Decision fur products are reduced from respondent’s usual or regular prices, or that fur products are being offered for sale at prices affording savings, when such is not the fact.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to section 8.21 of the Commission's Rules of Practice, the initial decision of the hearing examiner shall, on the 2nd day of September, 1959, become the decision of the Commission; and, accordingly :

It is ordered, That respondent S. Kann Sons Co., a corporation, 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.