Last Wool Stock Corporation

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Ix THE )!ATTER OF LAST WOOL STOCK CORPORATION ET AL.

CONSENT OHOEll, ETC. , IX REGARD TO THE ALLEGED VIOLATION 01 ' FEDERAL TR.\.DE CCDBIISSION ACT Docket 8050. Complafnt, July 1960-Decision, ..iar. is 1961 Consent order requiring ew York City sellers of woolen waste in the form of woven clips and knitted clips to woolen mils, to cease falsely invoicing as "100% Reprocessed Camel hair, products which contained quantities of wool, mohair, nylon, and substantially less than 100% camel hail'. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vesteel in it by saiel Act, the Federal Trade Commission, having reason to believe that. Last ,Yool Stock Corporation, a corporation, and :Martko Last and Jacob Last, jndi vidnally and as officers of said corporation, hereinafter reierred to as respondents, have violated the provisions of said Act, and it appearing to the Commission that a proceeding by it in respect \..

488 FEDERAL TRADE COMMISSION DECISIO Complaint 58 F.

thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follmvs: PARAGRAPH 1. Respondent Last .W 001 Stock Corporation is a corporation organized, exist.ing and doing business under and by virtue of the laws of the State of New York, with its principal offce and place of business located at 113 Spring Street, in the City of New York, State of New York.

PAR. 2. HespOlldents ::Iartko Last, President, and ,Taeob Last Secretary TrenSlll'Cr, are offcers of the corporate respondent. They formulate, direct and control the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. Their address is the same as that of the corporate respondent. AH. ;), Respondents are now, and for some time last past have been, engaged in offering for sale, sale and distribut.ion of -woolen \Ya te in the form of open dips and knitted clips, including camel JU1ir clips, to oolcn mills and others. m. 4. Hespondellts in the course and conduct or their business 1l0W cause, and for smne time last past have caused their said product.s, "hen sold, to be shipped from their place of business in the State of :Yew York to purchasers thereof located in various other states of the -Cnited States, and maintain, and at all times mentioned herein have maintained, a. substantial course or trade in said product in commerce, as "commerce" is defined in the Federal Trade Commission Act.

\.H. 5. In the course and conduct of their business as aforesaid respondents have made representations concerning their said products on sales invoices. Among and typical of these representations was the follmying:

100% Rep'iocessed Camel hair PAR. G. The aforesa,ic1 represe,ntations were false, mislead.cing and deceptive whereas, in truth and in fact, said products contained quantities of wool, mohair, nylon and substantially less camel hair thftll 'ITas represented.

7. The acts and practices set. out above have had and now have the tendency and capacity to mislead and dpceive purchasers of said products as to the true fiber content, and cause such purchasers to misbra.nd and misrepresent products manufactured by them in which sa,id materials ,were used. PAR. 8. In the conduct of their business, at all times mentioned here.in, respondents have been in substantial competion, in commerce wi th corporations, firms and individuals in the sale of woolen -waste of the same general kind and nature as that sold by respondents. LAST WOOL STOCK CORPORATION ET AL. 489 487 Decision PAR. B. The acts and practices of the respondents set out above were an to the prejudice and injury of the public and of respondents competitors, and constituted and now constitute unfair and deceptive acts and practices and unfair methods of competition, in commerce within the intent and meaning of the Federal Trade Commission Act. Jlh. JJfichael P. n"ghes and J1h. Oharles W. O'Oonnell supporting the complaint.

Engeltn.an and Hart by 1Il'. 1l1yrol/' E' ngel?n.((, of New York, N. for respondents.

INITIAL DECISION BY 'V ALTER IL BENNETT , I-IE.I.mxG EXAl\IINER The Commission issued its compla,int July 18 , 1960 against respondents charging them with false representations in invoices of wool products. The complaint further charged that said representatives constituted unfair and deceptive acts and practices and unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act.

Counsel presented to the undersigned hearing examiner on J anuary 16, 1B61 an agreement dated December 29, 1960 among respondents, Last 'Y 001 Stock Corporation lflrtko Last and Jacob Last counsel for respondents, and counsel supporting the complaint providing for t.he entry wit.hout further notice of a cease and desist order. Said agreement has been duly approved by the Director, the Assistant Director and the Associate Director of the Bureau of Litigation.

The hearing examiner finds that said agreement includes all of the provisions required by Section 3.25 (b) of the Rules of the Commission, that is:

A. An admission by all the respondent parties thereto of jurisdictional facts;

B. Provisions that:

(1) The complaint may be used in construing the terms of the order;

(2) The order shall have the same force and effect as if entered after a full hearing;

(3) The agreement shall not become a part of the offcial record 11 part. or the decisionof the proceeding unless anclllntil it. becomes of the Commission;

(4) The entire record on which any cease and desist order may be based shall consist solely of the complaint and the agreement; (5) The order may be altered, modified, or set aside in the manner provided by statute for other orders;

Order 58 F.

C. 'W ai vels of:

(1) The requirement that the decision must contain a statement of findings of fact and conclusion of law; (2) Further procedural steps before the hearing examiner and the. Commission.

contains the following permissive In addition the agreement provisions: A waiver by the respondents of any right to challenge or contest the validity of the order entered in accordance with the agreement, and a statement. that the signing of said 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.

Having considered said agrecment including the proposed order and being of the opinion that they provide an appropriate.e basis for settlement and disposition of this proceeding, the hearing examiner hereby accepts the agreement but orders that it shall not become a part of the offcial record unless and until it becomes a part of the decision of the Commission.

The follo\\Ting j nrisdictional findings Rre made and the following order issued:

1. Respondent Last Vool Stock Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 113 Spring Street, in the City of K ew York SUete of New York.

2. Respondents Nhrtko Last and Jacob Last arc offccrs of the corporate respondent. They formulate, direct. and control the acts and practices of the corporate responde,nt. Their address is the same as that of the corporate respondent. 3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents. ORDER It is ordered That respondents Last ' Wool Stock Corporation, a corporation, and its offcers, and l\fartko Last and Jacob Last individually and as offlCers of said corporation, and respondents agents, representatives and employees, directly or through any corporate or other device, in connection with the offering for sale sale or distribution of woolen waste or other products in commerce as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from, directly or indirectly, misrepresenting the constituent fibers of which their products are composed , LIBERTY ELECTRONICS) I , ET AL. 491 487 Complaint Dr the percentages or amounts thereof, in sales Invoices, shipping Jllemoranda, or in any other manner.

DECISION OF THE co:;nnSSION AND OImER TO FILE REPORT OF CO IPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall on the 18th day of Ma.rch, 1961 , become t.he decision of the Commission; and accordingly:

It is ordered That the respondents herein shan within sixty (60) da.ys after service upon them of this order, fie with the Commission a report in writing set.ting forth in detail the manner and form in which they have complied with the order to cease and desist.