Joseph Schneiderman

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In THE Matrer or JOSEPH SCHNEIDERMAN ET AL. TRADING AS S. SCHNEIDERMAN & SONS CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket 7983. Complaint, June 24, 1960—Decision, Oct. 13, 1960 Consent order requiring manufacturing furriers in New York City to cease violating the Fur Products Labeling Act by listing fictitious prices on consignment invoices of fur products, intended to promote the sale of the products, and by failing to maintain adequate records as a basis for such pricing.

Complaint Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Joseph Schneiderman, Harry Schneiderman, and Louis Schneiderman, individually and as copartners, trading as S. Schneiderman & Sons, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Fur Products Labeling Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: Paracrapy 1. Joseph Schneiderman, Harry Schneiderman and Louis Schneiderman are individuals and copartners trading as S. Schneiderman & Sons with their office and principal place of business located at 150 West 30th Street, New York, New York. Par. 2. Subsequent. to the effective date of the Fur Products Labeling Act on August 9, 1952, respondents have been and are 640968 Complaint 57 F.T.C.

now engaged in the introduction into commerce, and in the manufacture for introduction into commerce, and in the sale, advertising, and offering for sale, in commerce, and in the transportation and distribution, in commerce, of fur products, and have manufactured for sale, sold, advertised, offered for sale, transported and distributed fur products which have been made in whole or in part of fur which had been shipped and received in commerce as the terms “commerce”, “fur” and “fur product” are defined in the Fur Products Labeling Act. - ;

Par. 3. Certain of said fur products were falsely and deceptively invoiced in that the respondents set out on invoices certain prices of fur products which were in fact fictitious, in violation of Section 5(b) (2) of the Fur Products Labeling Act. Par. 4. Certain of said fur products were falsely and deceptively advertised in that the respondents on consignment invoices made representations and gave notices concerning said fur products, which representations and notices were not in accordance with the provisions of Section 5(a) of the Fur Products Labeling Act and the Rules and Regulations. promulgated thereunder; and which representations and notices were intended to aid, promote and assist, directly or indirectly, in the sale and offering for sale of said fur products.

By means of the said representations and notices contained in the consignment invoices to customers, and others of similar import and meaning not specifically referred to herein, respondents falsely and deceptively advertised their fur products in that respondents thereby made representations as to the prices of fur products which prices were in fact fictitious, in violation of Section 5(a)(5) of the Fur Products Labeling Act.

Par. 5. Respondents, in making pricing and savings claims and representations, failed to maintain full and adequate records disclosing the facts upon which such claims and representations were purportedly based, in violation of Rule 44(e) of the Rules and Regulations under the Fur Products Labeling Act. Par. 6. The aforesaid acts and practices by respondents, as herein alleged, were and are in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder and constitute unfair and deceptive acts and practices in commerce under the Federal Trade Commission Act.

Mr. Harry E. Middleton, Jr., for the Commission. Mr. Charles Goldberg, of New York, N.Y., for respondents. S. SCHNEIDERMAN & SONS | 8838 881 . Decision Initia, Decision By Loren H. Laventin, Heartne Examiner The Federal Trade Commission (sometimes also hereinafter referred to as the Commission) on June 24, 1960, issued its complaint herein, charging the above-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 August 16, 1960, there was submitted to the undersigned hearing examiner of the Commission for his consideration and approval an “Agreement Containing Consent Order To Cease And Desist,” which had been entered into by and between respondents and counsel supporting the complaint, under date of August 1, 1960, 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 § 3.25 of the Commission’s Rules of Practice for Adjudicative Proceedings, and that by said agreement the parties have specifically agreed to the following matters:

1.5 1 2 4 1 2 606 1684 227 42 95.573730 Respondents5 1 2 4 1 3 862 1684 124 40 96.417274 Joseph5 1 2 4 1 4 1012 1682 276 40 96.277710 Schneiderman,5 1 2 4 1 5 1313 1682 117 39 96.529037 Harry5 1 2 4 1 6 1457 1680 264 33 96.235413 Schneiderman5 1 2 4 1 7 1748 1679 66 32 96.418175 anda 1 2 4 2 0 504 1730 1309 43 -1 5 1 2 4 2 1 504 1734 104 33 95.837372 Louis5 1 2 4 2 2 634 1735 264 32 96.611008 Schneiderman5 1 2 4 2 3 925 1745 55 21 96.762947 ares 1 2 4 2 4 1006 1733 209 32 96.221672 individuals5 1 2 4 2 5 1241 1733 65 31 93.289124 ands 1 2 4 2 6 1328 1737 209 36 91.923988 copartners5 1 2 4 2 7 1554 1731 139 42 96.291985 trading5 1 2 4 2 8 1718 1742 35 20 92.247246 as5 1 2 4 2 9 1779 1730 34 34 92.336212 S.4 1 2 4 3 0 505 1781 1308 43 -1 5 1 2 4 3 1 505 1785 265 33 91.082855 Schneiderman5 1 2 4 3 2 791 1788 28 28 91.082855 &5 1 2 4 3 3 839 1785 87 33 96.644066 Sons5 1 2 4 3 4 948 1784 81 31 96.734146 with5 1 2 4 3 5 1051 1784 91 31 95.831154 theirs 1 2 4 3 6 1162 1783 89 32 96.142372 offices 1 2 4 3 7 1273 1784 64 31 96.814957 ands 1 2 4 3 8 1361 1782 168 42 95.859573 principals 1 2 4 3 9 1552 1782 102 41 75.875542 place:5 1 2 4 3 10 1667 1782 38 37 84.900772 of5 1 2 4 3 11 1726 1781 87 32 92.251755 busi-4 1 2 4 4 0 505 1833 1064 40 -1 5 1 2 4 4 1 505 1847 74 21 96.792229 ness5 1 2 4 4 2 601 1836 129 32 89.308632 located5 1 2 4 4 3 752 1841 36 27 95.689209 at5 1 2 4 4 4 810 1838 58 30 96.030113 1505 1 2 4 4 5 889 1836 96 31 96.109520 West5 1 2 4 4 6 1005 1834 79 32 96.011925 80th5 1 2 4 4 7 1106 1833 123 40 96.515305 Street,5 1 2 4 4 8 1249 1833 82 32 96.192398 News 1 2 4 4 9 1354 1833 107 39 96.727425 York,5 1 2 4 4 10 1481 1833 88 31 95.670784 N.Y.3 1 2 5 0 0 505 1881 1311 199 -1 4 1 2 5 1 0 546 1881 1270 47 -1 5 1 2 5 1 1 546 1889 29 29 94.481094 2.5 1 2 5 1 2 598 1886 236 42 96.388634 Respondents5 1 2 5 1 3 859 1884 108 33 96.664856 admits 1 2 5 1 4 991 1884 46 32 96.752937 all5 1 2 5 1 5 1063 1884 58 31 96.916374 thes 1 2 5 1 6 1147 1883 250 41 96.770012 jurisdictional5 1 2 5 1 7 1425 1883 89 31 96.574890 facts5 1 2 5 1 8 1540 1881 130 43 96.545998 alleged5 1 2 5 1 9 1696 1881 36 32 96.563438 in5 1 2 5 1 10 1758 1881 58 31 96.712051 thea 1 2 5 2 0 505 1932 1310 47 -1 5 1 2 5 2 1 505 1937 188 42 96.350731 complaints 1 2 5 2 2 711 1937 66 32 96.333282 ands 1 2 5 2 3 799 1947 97 31 96.420212 agrees 1 2 5 2 4 916 1935 76 32 96.972931 that5 1 2 5 2 5 1011 1935 58 32 96.667038 thes 1 2 5 2 6 1087 1934 118 32 96.667038 records 1 2 5 2 7 1225 1940 77 35 95.559158 may5 1 2 5 2 8 1323 1934 40 31 96.508080 be5 1 2 5 2 9 1381 1933 101 33 96.508080 taken5 1 2 5 2 10 1504 1944 36 21 96.465622 as5 1 2 5 2 11 1560 1932 30 33 96.917137 if5 1 2 5 2 12 1610 1932 148 42 95.922867 findings5 1 2 5 2 13 1778 1932 37 31 96.764839 of4 1 2 5 3 0 505 1982 1309 47 -1 5 1 2 5 3 1 505 1987 251 42 96.689590 jurisdictional5 1 2 5 3 2 783 1987 89 32 96.916252 facts5 1 2 5 3 3 898 1986 68 31 35.361290 had5 1 2 5 3 4 982 1986 91 31 35.361290 been5 1 2 5 3 5 1101 1985 82 41 96.640488 duly5 1 2 5 3 6 1210 1983 103 33 95.956635 made5 1 2 5 3 7 1334 1984 35 31 95.956635 in5 1 2 5 3 8 1396 1983 203 32 96.377937 accordance5 1 2 5 3 9 1625 1983 82 31 96.819199 with5 1 2 5 3 10 1735 1982 79 33 96.862572 such4 1 2 5 4 0 506 2034 784 50 -1 5 1 2 5 4 1 506 2034 210 50 96.379562 allegations.3 1 2 6 0 0 507 2083 1307 99 -1 4 1 2 6 1 0 548 2083 1266 48 -1 5 1 2 6 1 1 548 2091 28 31 92.251717 3.5 1 2 6 1 2 600 2089 84 32 96.322334 This5 1 2 6 1 3 711 2091 193 40 96.094078 agreements 1 2 6 1 4 932 2087 150 42 96.635582 disposes5 1 2 6 1 5 1108 2086 39 33 96.644264 of5 1 2 6 1 6 1175 2085 46 33 95.489784 all5 1 2 6 1 7 1250 2085 38 32 95.489784 of5 1 2 6 1 8 1315 2085 68 32 96.625114 this5 1 2 6 1 9 1411 2084 205 41 95.941124 proceedings 1 2 6 1 10 1642 2095 37 21 96.807159 as5 1 2 6 1 11 1706 2088 35 27 96.572678 to5 1 2 6 1 12 1768 2083 46 33 95.972458 all4 1 2 6 2 0 507 2136 944 50 -1 5 1 2 6 2 1 507 2136 136 50 96.566406 parties.5 1 2 6 2 2 1449 2151 2 2 42.123718 :3 1 2 7 0 0 547 2189 433 42 -1 4 1 2 7 1 0 547 2189 433 42 -1 5 1 2 7 1 1 547 2193 29 29 84.220894 4,5 1 2 7 1 2 599 2190 236 41 96.914703 Respondents5 1 2 7 1 3 856 2189 124 32 96.870369 waive:3 1 2 8 0 0 507 2235 1309 95 -1 4 1 2 8 1 0 553 2235 1263 46 -1 5 1 2 8 1 1 553 2242 53 39 95.859085 (a)5 1 2 8 1 2 634 2241 79 40 96.647079 Any5 1 2 8 1 3 743 2241 135 31 96.416550 furthers 1 2 8 1 4 906 2238 199 43 95.563438 procedural5 1 2 8 1 5 1133 2242 91 37 96.669762 steps5 1 2 8 1 6 1250 2237 117 32 96.430801 before5 1 2 8 1 7 1392 2236 58 32 96.311996 thes 1 2 8 1 8 1476 2235 143 43 96.462524 hearings 1 2 8 1 9 1645 2235 171 32 96.835114 examiner4 1 2 8 2 0 507 2290 410 40 -1 5 1 2 8 2 1 507 2292 67 32 96.542381 ands 1 2 8 2 2 596 2292 57 32 96.387970 thes 1 2 8 2 3 677 2290 240 40 93.305946 Commissions 1 2 8 2 4 898 2286 22 50 91.999146 ;3 1 2 9 0 0 555 2337 1219 46 -1 4 1 2 9 1 0 555 2337 1219 46 -1 5 1 2 9 1 1 555 2343 53 40 90.822708 (b)5 1 2 9 1 2 637 2343 74 31 96.644623 Thes 1 2 9 1 3 728 2342 141 41 96.172470 making5 1 2 9 1 4 888 2342 38 30 96.930489 of5 1 2 9 1 5 945 2340 149 41 96.630989 findings5 1 2 9 1 6 1113 2340 38 31 96.748482 of5 1 2 9 1 7 1170 2340 73 31 96.101562 facts 1 2 9 1 8 1262 2349 37 21 96.101562 or5 1 2 9 1 9 1318 2337 209 33 96.317894 conclusions5 1 2 9 1 10 1547 2337 38 31 96.848969 of5 1 2 9 1 11 1605 2337 80 40 95.352539 law;5 1 2 9 1 12 1708 2337 66 31 96.866127 and3 1 2 10 0 0 506 2387 1310 148 -1 4 1 2 10 1 0 556 2387 1260 47 -1 5 1 2 10 1 1 556 2394 47 40 92.576721 (c)5 1 2 10 1 2 632 2393 59 32 96.623642 All5 1 2 10 1 3 715 2394 39 30 96.623642 of5 1 2 10 1 4 775 2393 58 32 96.750397 thes 1 2 10 1 5 854 2391 111 42 96.307266 rights5 1 2 10 1 6 987 2391 79 40 96.756531 they5 1 2 10 1 7 1088 2401 77 30 96.366837 may5 1 2 10 1 8 1189 2390 86 31 96.670952 have5 1 2 10 1 9 1296 2394 34 26 96.495636 to5 1 2 10 1 10 1353 2388 175 41 96.030510 challenges 1 2 10 1 11 1550 2399 38 20 96.030510 or5 1 2 10 1 12 1609 2391 128 28 96.128807 contests 1 2 10 1 13 1759 2387 57 32 96.219582 thea 1 2 10 2 0 507 2437 1308 48 -1 5 1 2 10 2 1 507 2444 145 41 96.545013 validity5 1 2 10 2 2 673 2444 38 31 97.015678 of5 1 2 10 2 3 730 2444 58 31 96.787964 thes 1 2 10 2 4 806 2442 101 32 96.870483 orders 1 2 10 2 5 925 2447 35 26 97.001633 to5 1 2 10 2 6 979 2451 92 22 96.977257 ceases 1 2 10 2 7 1091 2440 67 33 96.827995 ands 1 2 10 2 8 1179 2440 104 31 96.918411 desist5 1 2 10 2 9 1301 2439 135 32 96.988533 entered5 1 2 10 2 10 1456 2439 35 31 96.687889 in5 1 2 10 2 11 1511 2438 203 32 96.315559 accordance5 1 2 10 2 12 1733 2437 82 32 96.913887 with4 1 2 10 3 0 506 2494 292 41 -1 5 1 2 10 3 1 506 2494 69 32 96.768417 this5 1 2 10 3 2 598 2498 200 37 95.568680 agreement.3 1 2 11 0 0 508 2539 1309 148 -1 4 1 2 11 1 0 550 2539 1267 38 -1 5 1 2 11 1 1 550 2548 28 29 96.523109 5.5 1 2 11 1 2 601 2545 73 32 96.743858 Thes 1 2 11 1 3 691 2544 116 32 95.738029 records 1 2 11 1 4 826 2555 40 20 95.738029 on5 1 2 11 1 5 886 2542 111 33 96.555832 which5 1 2 11 1 6 1012 2542 58 32 96.747414 thes 1 2 11 1 7 1086 2541 113 32 96.646423 initials 1 2 11 1 8 1219 2540 144 32 96.646423 decisions 1 2 11 1 9 1382 2540 67 32 96.983681 ands 1 2 11 1 10 1466 2540 59 32 96.283302 thes 1 2 11 1 11 1543 2539 145 32 96.640945 decisions 1 2 11 1 12 1706 2539 36 31 96.905159 of5 1 2 11 1 13 1761 2539 56 31 96.349243 thea 1 2 11 2 0 509 2589 1306 42 -1 5 1 2 11 2 1 509 2596 222 33 95.547516 Commissions 1 2 11 2 2 752 2595 86 31 69.209068 shall5 1 2 11 2 3 858 2595 40 31 96.991737 be5 1 2 11 2 4 916 2593 100 32 96.814995 based5 1 2 11 2 5 1037 2593 86 31 88.765678 shal]5 1 2 11 2 6 1144 2591 124 32 96.865959 consists 1 2 11 2 7 1288 2591 102 40 96.662621 solely5 1 2 11 2 8 1411 2591 37 31 96.613258 of5 1 2 11 2 9 1468 2591 57 31 96.883301 thes 1 2 11 2 10 1545 2590 185 41 96.710320 complaints 1 2 11 2 11 1749 2589 66 32 96.394424 anda 1 2 11 3 0 508 2647 292 40 -1 5 1 2 11 3 1 508 2647 67 30 96.374374 this5 1 2 11 3 2 600 2650 200 37 96.381271 agreement.3 1 2 12 0 0 508 2690 1308 95 -1 4 1 2 12 1 0 550 2690 1266 47 -1 5 1 2 12 1 1 550 2699 27 29 96.440659 6.5 1 2 12 1 2 602 2696 83 32 96.440659 This5 1 2 12 1 3 709 2699 192 38 84.926643 agreements 1 2 12 1 4 924 2694 86 32 95.735481 shall5 1 2 12 1 5 1033 2698 60 27 95.735481 not5 1 2 12 1 6 1115 2693 133 32 96.817055 becomes 1 2 12 1 7 1271 2704 20 20 93.536247 a5 1 2 12 1 8 1314 2697 80 37 93.536247 parts 1 2 12 1 9 1416 2692 38 32 96.689819 of5 1 2 12 1 10 1477 2692 70 37 83.545105 the.5 1 2 12 1 11 1558 2692 116 31 91.160904 officials 1 2 12 1 12 1699 2690 117 33 96.974327 record4 1 2 12 2 0 508 2742 1307 43 -1 5 1 2 12 2 1 508 2748 112 31 95.706650 unless5 1 2 12 2 2 637 2747 65 32 95.724274 ands 1 2 12 2 3 720 2747 86 32 95.724274 until5 1 2 12 2 4 824 2746 29 32 96.593597 it5 1 2 12 2 5 868 2747 148 30 96.522667 becomes5 1 2 12 2 6 1033 2756 18 20 96.293137 a5 1 2 12 2 7 1069 2749 79 36 96.293137 parts 1 2 12 2 8 1164 2744 38 32 96.891632 of5 1 2 12 2 9 1219 2744 56 32 96.948242 thes 1 2 12 2 10 1292 2743 147 33 96.842262 decisions 1 2 12 2 11 1454 2743 37 31 96.043198 of5 1 2 12 2 12 1508 2743 58 31 96.563538 thes 1 2 12 2 13 1584 2742 231 33 96.670326 Commission. Order 57 IVT.C.

7. This 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.

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 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:

It is ordered, That Joseph Schneiderman, Harry Schneiderman and Louis Schneiderman, individually and as copartners trading as S. Schneiderman & Sons, or under any other name, 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 sale, advertising, offering for sale, transportation or distribution, in commerce, of fur products; or in connection with the sale, manufacture for 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™, “Sir™ and “fur product” are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. Falsely or deceptively invoicing fur products by representing, directly or by implication, on invoices that the former, regular or usual price of any fur product is any amount which is in excess of TONEMASTER MANUFACTURING CO. ET AL. 885 881 Sylabus the price at which respondents have formerly, usually or customarily sold such products in the recent regular course of business; B. Falsely or deceptively advertising fur products through the use of any advertisement, representations, 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 represents, directly or by implication that the former, regular or usual price of any fur product is any amount which is in excess of the price at which respondents have formerly, usually or customarily sold such product in the recent regular course of business; C. Misrepresenting in any manner the savings available to purchasers of respondents’ fur products;

D. Making pricing claims or representations respecting prices or values of fur products unless respondents maintain full and adequate records disclosing the facts upon which such claims and representations are based.

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 13th day of October 1960, 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.