Woloch Furs, Inc.

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

br Tile MATTER OF WOLOCH FURS, INC., ET AL.

CQXSEN'l ORDER, ETC., I REGARD TO ALLEm D VIOLATION OF THE FEDERAL rrade co)unSSION AXD THE FUR PRODUCTS LABELING ACTS Docket 7982. Complaint, June 24, 1960-DefJision, Feb. , 1961 Consent orner requiring Xew York City furriers to cease violating the Fur Products Labeling Act by listing fictitious prices on consignment invoices which were intended to aid in the sale of fur products, and by failng to maintain adequate records aR a basis for their pricing and savings claims.

WOLOCR FURS , IKC. , ET AL. 221 220 Complaint IPLAINT 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 sa.id Acts, the Federal Trade Commission having reason to believe that 'Voloch Furs, Inc., a corporation, and Raymond "\Voloch and Nat.han "\Voloch, individually and as offcers of Sf Lid corporation, hereinafter re.ferred to as respondents, have violated the provisions of saiel acts and the Rules and Hegulations promulgated under the Fur Products Labeling Act, a.nd it appearing t.o the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in t.hat respect as follo\ys:

P ARAGIL\I'Il 1. Respondent \V 010ch Furs, Inc., is a corporation organized, existing and doing bl1siness under and by virtue of the Ia"s of the State of New York with its olliee and principal place of business located at 145 "\1' est 30th Street, New York, N e" York. Respondent Raymond "\1' oloeh is president and secretary of the said corporate respondent, and respondent Nathan \V oloch is vice presi(lent and treasurer of the. said corporate.e respondent and as such control, formulate and direct the acts, practices and policies of the said corporate respondent. Individual respondents have an once and principal place of business at the sanle addre.ss as that of the corporate respondent.

PAn. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9, 1952, respondents have been and are now engaged in the introduction into commerce, and in the Inanufacture for introduction into commerce, and in the sale, advertising, and offering for sale, in eomme.rce, and in the transportation and dist.ribution, 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') arc defined in the Fur Products Labeling Act.

PAIL 3. Certain of sa,id fur products "'ere falsely and deceptively invoiced in t.hat 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 Fm Products Labeling Act. PAR. "1. Certain of said fur products were falsely and deceptively advert.ised in that t.he respondents on consignment invoices made representations nncl gave notices concerning said fur products which representations and notices were not in accordance with the 222 FEDERAL 'TRADE COMMISSION DECISIONS Decision 58 provlSons of Section 5 (a) of the Fur Products Labeling Act and the Rules and Hegulations 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 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 price,s of fur products which prices "ere 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 ELld adequate records disclosing the facts upon which such cbims and representations were purportedly based, in violation of Rule 44 (c) of the Rules and R.egulations under the Fur Products Labeling Act. PAR. 6. The a,foresaid ar.ts and practices by respondents, as herein aUeged, were and are in violation of the Fur Products Labeling Act and the Rules and Regulations promulgate.d theTe under and constitute unfair and deceptive acts and practices in commerce \fithin the intent and meaning of the Federal Trade Commission Act.

JJI1'. Oharles S. Oo, for the Commission. 1.1f1'. Oharles Goldberg, of w York for respondents INITIAL DECISION BY HARHY H. IIrNKES , IIEL\RING EXLDfIXER The complaint in this matter cha,lges the respondents 'wit.h viohtion of the Federal Trade Commission d and the 1' u1' Products Labeling Act in connection "ith t.he introduction, 11Rnuft1cture for introduction, sale, advert.ising, offering for sale, or transportation in commerce of fur products, or in connection ,with the s:11e, manufacture for sale, advel'tising oifering for sale, or tra.nsportation of fur products which have been made in whole or in F1rt of fur ,,,which has been shipped or received in commerce. their An agreement has now been entered into by respondents, attorney and counsel supporting the complaint "hieh provides among other things, that respondents admit all the jurisdictional facts alleged in the complaint; that the record on which.h the init.ial decision and t.he decision of the Commission shall be 1msecl shall consist solely of the complaint and the agreement: that the making of fmdings of fact HJ1d conelnsions of law in the decision disposing , WOLocn FURS , INC. ) ET AL. 223 220 Order of this mat.ter is waived, together with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in this proceeding without further notice to the respondents and when entered shall have the same force and eHect as if entered after a fun hearing, respondents specifically ", aivillg aU the rights they nmy have to challenge or contest the validity of the order; that the order may be altered modified or set aside in the manner provided for other orders; tlmt the complaint may be used in construing the terms of the order; that the agreement is for seUleme,nt purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint; and that the agreement shall not become a part of the offcial record unless and until it becomes part of the decision of the Commission.

The hearing examiner having considered the agreement and proposed order and being of the opinion that they provide an adequate basis for appropriate disposit.ion of t.he proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and t.he following order issued:

1. llespondent ,V oloc.h Furs, Inc.., is a corporation existing and doing business under a,nd by virtue of the lo."s of the State of New York, ,with its offce and principal place of bnsine.ss Ioc.ated at 145 ,Vest 30th Street, in the Cit.y of l\ow York, State of Kew York Individual respondents Raymond ,Voloeh itnd Kathan ,Voloch ate offcers of sflid corponltion and their address is the same as that of the corpora.te respondent.

2. The Federal Tratle Commission has jurisdiction of the subject mat.ter of this proceeding and of the respondents, a,nd the proc.ceding is in the public. interest.

ORDER It is ordered That 'Voloch Furs, Inc. , a. corporation, and its offcer, and Raymond 'Voloch find Kathnl1 'Voloeh, inc1ividllaJly and LS oflcers of said corporation, and respondents representatives agents and employees, directly or through any corporate.e or other device, in connection 'with the introduction, nhl1ufactnre for intlo- (luction or the sale, advertising or otrering for sale in commerce or the transport,ation or distribution in commerce of fur products or in c:connection ,with the ;ale, manufact.ure for sale advertising, offering for saJe, transportation or distribution of fur produc.s 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" 224 FEDERAL TRADE COMMISSION DECISIOKS Syllabus 58 F.

are defined in the Fur Products Labeling Act, do forth"ith cease and desist from:

A. Falsely or deceptively invoicing fur products by representing, directly or by implication, on invoices that t.he 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 eust.omarily sold such products in the recent regular course of business. B. 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 represents directly or by implication, that the former, regular or usual.l price of any fur products 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. iisrepresents in any manner the savings available to purchasers or respondents' fur products.

D. Iaking pricing claims or representations respecting prices or values of fur products unless there are maintained by respondents full and adequate records disclosing the facts upon "which such claims and representations are based.

DECISIO OF 'lhe COM).nssIO AXD OlWER TO FILE REPORT OF COMPLIAKCE Pursuant to Section 3.21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 16th Day of February, 1061 become the decision of the Commissiol1j and accordingly:

respondent.s herein shall, "within sixty (60) It 'is oTdm' That days after service upon them of this order, file 'with the Commission a re.port in writing setting forth in detail the roa,nner and fornl in which they have complied "ith the order to cease and desist.