J. M. Holstein, Inc.

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IN THE 1fatter OF J. M. HOLSTEIK, INC., ET AI,.

SENT ORDER , Elc. , IN REGARD TO THE ALLEGED VIOLATIO OF THE FEDBIL\L 'trade CO BnssIOX A D THE FUR PRODUCTS I,ABELUW ACTS Docket 8157. Complaint, Oct. 1960-Decfsion, Mat-17 , 1961 Consent order requiring Kewark, N. J. , furriers to cease violating the Fur Products Labeling Act by invoicing which falsely identified the animals producing certain fm's, failed to set forth the terms "Persian Lamb" and Dyed Broadtail processed Lamb" as required, and failed in other resnerts to comply with invoicing requirements of the Act. COl\IPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority , J. M. HOLSTEI:', INC. , ET AL. 475 474 Complaint vested in it by said Acts, the Federal Trade Commission, having reason to believe that J. M. Holstein, Inc., a corporation, and Arthur S. Holstein and Frances E. Holstein, individually and as officers of said corporation, hereinafter referred to as respondents, have violated the plo\.jsions 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:

PARAGRAPH 1. J. M. Holstein, Inc., is a corporation organized existing and doing business under and by virtue of the laws of the State of New Jersey with its offce and principal place of business located at 53 Bank Street, Newark, New Jersey. Arthur S. Holstein is President and Frances E. Holstein is Seeretiuy- Treasurer of the said corporate respondent. These individuals control, formulate and direct the acts, practices and policies of the corporate respondent. Their offce and principal place of business is the same as that of the corporate respondent. PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August D , 1952, respondents have beem and are 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 pro(lucts, and have manufactured for sale, sold, advertised, offered for sale, transported, and distributed fur products which have be,en 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 by respondents in that they were not invoiced as required by Sec,tion 5(b) (1) 01 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 were falsely and deceptive1:v jnvoiecd or otherwise falsely and deceptively identified with respect to the name or names of the animal or animals that produced the' fur from ,yhieh said fur products had been manufactured in violation o:z ('dj()J1 r\(b) ( ) of the -Fur Products Labeling Act. PAR. 5. Certain of said fur products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act in that they 476 FEDERAL TRADE CO:vIMISSIQK DECISIO Decision 58 F.

,vero not invoiced in accordance with the Rules and R.egulations prolIulgated therel1nde.r in the following respects: (a) The term "Persian Lamb" ,vas not set forth in t.he manner required where an election is made t.o use that term instead of Lamb iu violation of Rule 8 of the said Regulations. (b) The term "Dyed Broadtail processed Lamb" was not set forth in the manner required where an election is made to use that term instead of Dyed Lamb in violation of Rule 10 of the said Rules and Regulations.

(c) Required item numbers were not set forth in invoices in violation of Rule 40 of the said Rules and Regulations. . o. The aforesaid acts and practice,s of respondents, as herein alleged, are in violation of the Fur Products Labeling Act and the 'Rules and Regulations promulgated thereunder an constituted unfair mc1 (lrceptiyc acts and prfictices, in commerce, under the Federal Trn.c1e Commission Act.

Jh. Jfie/we! P. IInr;hes for the Commission. Jf/'. Louis Jf. Weber of ew York, X. Y. , for respondents. ITI..L DEClSlOX m: E"\Iu J. KOI_ , HE.\RIXG EX.\j:\INER , J. 1\:1 1-101- The eomplfint in this matter charges the respondents E;tein, ille. a corporation, 1111(1 \rthllr S. Holstein nnd Frances E. IIolstein, incliYichlfl1y and ns offcers of said corporation, with use of unfair and deceptive practices in inter-state commerce in vio1atioll of t,he. prod1sions of tll( Federal Trade Commission Act and the Fur Products Labeling Act, and the rules and regula.tions promulgate,c1 thereunder.

..tn ngre.emellt for disposition of this proceeding by means 01 a consent order has now been executed by respondents and their counsel and counsel supporting the comphtint, and submitted to t.he hearing examiner for his consideration.

The D rE'l'ment pl'mTides, among other things, that respondents admit all of the jl1isdictimml anegations in the complaint; t.hat the record on ",which the initial decision and the decision of the Commission eh" Jl be based shall consist solely of the complaint. and t.he agreement: that the inc.nsion of findings of fact and conclusions of bw in the (lecision disposing of this matter is waived, together with eXflminer and the (lny further proccc1ul'ftl st, eps he.fore. the hearing Commission: that tlw order hereinafter set forth may be entered in rlisposition of the proceeding, such order to have the same force and effect as if entered after a full hearing, respondents specifically waiving any and all rights to challenge or contest the validity of such J. ),1. HOLSTEn;, I , ET AL. 477 474 Order order; that the order may be altered, modified or set aside in the manner provided for other orders of the Commission; that the C01llplaint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and docs not constitute an admission by respondents that they have violated the law as alleged in the complaint.

The hearing examiner having considered the agreement, and the proposed order, and being of the opinion that they provide an adeqlHlte basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings lnade and the following order issued:

1. Respondent, J. M. Holstein, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of Kew business located at 53 Jersey, with its offce and principal place of Bank Street, in the City of Kewark, State of Kew .Jersey. Respond- , tue offcers of saidents, Arthur S. Holst.ein and Frances E. Holstein corporation.

2. The Federal Trade Commission hns jurisdiction of the subject matter of this proceeding and of the respondents. ORDER It -i OJ'dend That J. 11. Holstein, Inc. , a corporate.ion, and its offcers, and Arthur S. Holstein and Frances E. Holstein, individually and as officers of said corporation, and respondents' represe.ntat.ives agents and employees, directly or through any corporate or other device, in connection \"it.h the int.roc1nction, manufa.cure for introduction into commerce or the sale, advertising or offering for sale jll commerce 01' the transportation or distribution in commerce of fur products, or in connect.ion wit.h the sa.1e, manufacture for sale advert ising, offering for sale, transportation or distribution of fur proclucts which arc made. in ' whole or in part of fur which has been ancl "fur hipped and rccei\'ed in commerce, as ';commerce fur" product" ate defined in the Fur Products Labeling Act, do forth- ,,'itll c.ease and desist from:

1. Falsely or deceptively invoicing fur products by: (a) Failing to furnish to purchasers of fur products an invoice showing" all the information required to be disclosed by each of the subsections of Section 5(b) (1) of the Fur Products Labeling Act. (b) Failing to set forth the term "Persian Lamb" where an election is made to use that term instead of the word "Lamb" (c) Failing to set. forth the term "Dyed Broautail Processed LarnV where an ejection is made to use that term instead of the term "Dyed Lamb"

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478 FEDERAL TRADE CO:VElISSION DECISIONS Complaint :38 F. (d) Failing to set forth on IllVOlces the item number or mark .assigned to a fur product.

2. Falsely or deceptively invoicing or otherwise falsely or decept.ivf'.ly identifying any such pro duet as to the name or names of the animal or animals that produced the fur from which sneh product was manufactured.

DECISIO OF THE CO::Il\ISSlOX x:"m ORDER TO FILE HEPORT OF CO::IPLIAXCE Pursuant to Section 3.21 of the Commission ' s I llles of Practice the. initial decision of the hearing examiner shall, on the 17th day of :\Iarch 1061 become the decision of the Commission; anel, accordingly:

It is ordered That the respondent herein shah, within sixty (60) days after service upon it of this order, fie with the Commission a report in writing setting forth in detail the manner and form in