H. Appel & Sons, Inc.

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

IN TIDc MATTER OF H. APPEL & SONS , INC., ET AL.

CUJI' SENT onnER , ETC. , IX REGARD ro THE ALLEGED VIOLATIO:\T OF THE F1mERAL TRADE COl\DIISSION AND THE FUR PRODUCTS LABELING ACTS Docket 8121. Complaint, Sept. 1960-Decision, JIa,T. 4, 1961 Consent order requiring New York City furriers to cease violating the Fur Pro duds Labeling Act by invoicing fur products falsely with respect to the name of the animal producing the fur, llsing the term "blended" improperly, and failng in other respects to comply with invoicing requirements.

282 FEDERAL TRADE CQM:MISSION DECISIONS Complaint 53 F.

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 1-I. Appel & Sons, Inc. , a corporation, and Stanley Appel, Paul Toporoff, and Norman Appel, individually and as offcers of said corporation, hereinafter referred to as respondents have violated the provisions of said Acts and the Rules pond 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 follo"s: PAnAGnAPli 1. H. Appcl & Sons, Inc. is a corporation organized existing and doing business under and by virtue of the la"s of the State of Ne" York "ith its offce and principal place of business located at 116 "\Vest 29th Street, Ne" York, Ne" York. Stanley Appel, Paul Toporoff, and Norman Appel are president secretary and treasurer, respectively, of t.he said corporate respondent. These individuals control, formulate and direct the acts, practices and policies of the said corporate respondent. Their offce and principal place of business is the same as that of the said corporate respondent.

PAn. 2. Subsequent to the effective date of the Fur Praduets Labeling Act Gn August 9 , 1952, respondents have been and are nG" engaged in the 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 ha,ve sold, advertised, offered for sale, transported and distributed fur products "which have been made in "hole or in part of fur which has been shipped and received in commerce, and hate introduced into commerce, sold advertised, offered for sale, transported and delivered, in commerce fur, as the t.terms "commerce fur" and "fur product" are defined in the Fur Products Labeling Act.

PAR. 3. Certain of said furs and fur products were falsely and deceptively invoiced by respondents in that such furs and fur products "ere not invoiced as required by Section 5(b) (1) of the Fur Products Labeling Act, and in the manner and form prescribed by the Rules and Regulations promulgated thereunder. PAR. 4. Certain of said fur products "ere falsely and deceptively invoiced or other"ise falsely and deceptively identified "ith respect to the name or names Gf the animal or animals that produced the fur in violation of Section 5 (b) (2) of the Fur Products Labeling Act.

H. APPEL & SONS , INC., ET AL. 283 281 Decision PAR. 5. Certain of said furs "ere falsely and deceptively invoiced in violation of the Fur Products Labeling Act in that they were not invoiced in accordance with the Rules and Regulations promulgated t.hereunder in the follo\ving respects:

(a) Information required under Section 5(b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was set forth in abbreviated form in violation of Rule 4 of said Rules and Regulations.

(b) The term "' blended" "as used as part of the information required under Section 5(b) (1) of the Fur Products Labeling Act and the Rnles and Regulations promulgated thereunder to describe the pointing, bleaching, dyeing or tip-dyeing of furs in violation of Rule 19 (e) of said Rules and Regulations. PAR. 6. Certain of said fur products "ere falsely and deceptivcly invoiced in violation of the Fur Products Labeling Act in that they were not invoiced in accordance with the Rules and Regulations promulgated thereunder in that required item numbers were not set forth on invoices in violation of Rule 40 of said Rules and Regulations.

PAR. 7. The aforesaid acts and practices of respondents, as herein alleged, arc in violation of the Fur Products Labeling Act and the R.ules and Regulations promulgated thereunder and constitute unfair and deceptive acts and practices in commerce under the Federal Trade Commission Act.

:11 r. De W,:tt T. Puckett for the Commission. Bernstein Ber-n8tpi-n by llfr. Jonas H. Bernstein. of Xew York X. Y., for respondents.

INITIAL DECISION BY 'VALTEH R. . TOJ-INSOX, HEAIUNG EXAMIXEH In the complaint dated September 23, 1960. the respondents are charged with violating the provisions of t.he Federal Trade Commission Act and the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder.

On December 21 , 1960, the respondents and their attorney entered into an agreement with counsel in support of the complaint for a con3en t order.

nder the foregoing agreement, the respondents a.admit the jurisdictional facts alleged in the complaint. The parties agree, among other things, that the cease and desist order there set forth may be entered ,without further notice and have the same force and effect as if entered after fl. fun hearing and the document includes a. waiver by the respondents of a1l rights to cha11ellge or contest the validity of the order issuing in accordance t.herewit.h. The agreement further , 284 FEDERAL TRADE CQMMISSIO)I DECISIONS Order 58 F.

recites that it is for settlement purposes only and does not constitute an admission by the respondents that they have violated the la" as alleged in the complaint.

The he,aring examiner finds that the content of the agreement meets all of the requirements of section 3.25 (b) of the Rules of the Commission.

The hearing examiner being of the opinion that the agreement and the proposed order provide an appropriate basis for disposition of this proceeding as to all of the parties, the agreement is hereby accepted and it is ordered that the agreement shojI not become part of the offcial record of the proceeding unless and until it becomes a part. of the decision of the Commission. The following jurisdictional findings ate made and the following order issued. 1. Respondent H. Appel & Sons, Inc. is a corporation existing and doing business under and by virtue of the la"s of the State of New York, with its offce and principal place of business at 116 West 20th Street, in the City of Ke" York, State of No" York. Hespondents Stanley Appel, Paul Toporoff and Norman Appel are offcer ) of the corporate respondent and as such formulate, control and direct the policies. acts and practices of the corporate respondent. Their offce', and place of business is the same as that of the corporate I' spondent.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

OHDEH It is ordel'ed That H. Appel & Sons, Inc., a corporation, and its offcers, and Stanley Appel, Paul ToporofI and Korman Appel individually nnel as offcers of said corporation, and respondents: representatives, agents and employees, elirectly or through any corporate or other device, in connection ith thc introduction into commerce, or the saJe, ftch'ertising, or offering for sale in commerce or the transportation or distribution in commerce, of any fur product "\hioh is made in whole or in part of fur which has been shipped and received in commerce, or offering for sale in commerce, or in connection with the introduction into commerce, or the sale, advertising, offering for sale, transportation or distribution in commerce of fur as "commerce fur" and " fur products" are defined in the Fur Products Labeling Act, do forthwith cease and desist from: \. Falsely or deceptively invoicing furs or fur products by: 1. Failing to furnish to purchasers of fur or fur products invoices showing all the information required to be disclosed by each of the subsections of section 5(b) (1) of the Fur Products Labeling Act. SUN-FAST TEXTILES , INC. , ET AL. 285 281 Complaint B. Falsely or deceptively invoicing fur products by: 1. Falsely or deceptively invoicing or otherwise falsely or deceptively identifying any such fur products as to the name or names of the animal or animals that produced the fur from which such product ,vas manufactured.

C. Falsely or deceptively invoicing fur products by: 1. Failing to set forth OIl invoices the item number or mark assigned to a fur product.

D. Falsely or dcceptively invoicing furs by: 1. Setting forth information required under section 5 (b) (1) of the Fnr Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form. 2. Setting forth the term "blencled" as part of the information required under section 5(b) (1) of the Fur Products Labeling Act and the Rules and I egulations promulgated thereunder to describe the pointing, bleaching, dyeing or tip-dyeing of furs. DECISION OF THE COllDIISSIQN AKD ORDER TO FILE REPORT OF co:rri"IAXCE Pursuant to section 3.21 of the Commission s Rules of Practice, the initial decision of the hearing examiner shall, on the 4th Day of March, 1961, become the decision of the Commission; and accordingly:

It is ordered That respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report in writing setting forth in detail the manner and form in "hieh they have complied "ith the order to cease and desist.