Style-Rite Girl Coat, Inc.

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

IN THE MATTER OF STYLE-RITB GIRL COAT, INC., ET AL.

ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLc\TION OF THE FEDERAL TRADE CO::OHSSION \XD THE :Fcn: PRODUCTS L \BELIKG ,\CTS Docket 823l Cum plaint, Den, , 19GO-))('cision Mar. 30 , 1.061 Com:ent order requiring manufacturers in :New York City to cease violating the Vlool Products Labeling Act by labeling aB "30% 'Wool, 70% Other Fibers, coats which contained more t11an 5% of both nylon and acetate and by faBing to label other wool products as required. COl\IPLA1ST Pursuant t.o the provisions of the Federal Trade Commission Act and the iYool Produds Labeling Act of 1939, and by virtue of the authority vest.ed in i.t by said .Acts, t.he Federal TTac1e Commi.ssion having reason to believe that Style-Rite Girl Coat, Ine., a corporation, and Sidney Sommer and :;.10rton Sommer, hereinafter referred to as respondents, have viola.ted the provisions of said Acts and the Rules and Hegnlnt.ions promulgated under t.he ",Vool Products Labeling .A,- , and it appearing to the. Commission that a proceeding , Complaint 58 F.

by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: PARAGRA. n 1. Style-Rite Girl Coat, Inc. is a. corporation organized, existing and doing business under' and by virtue of the laws of the State of New York. Individual respondents Sidney Sommer and )1orton Sommer are offcers of the corporate respondent. Said individual respondents cooperate in formulating, directing and con trolling the acts, poEcies and practices of the corporate respondents including the acts and practices hereinafter referred to. All respondents have their offce and principal place of business at 520 Eighth Avenue in ew York, New York.

PAR. 2. Subsequent to the effective date of the 'V 001 Products Labeling Act of 1939, and more especially since December 1959 respondents have manufactured for introduction into commerce introduced into commerce sold, transported, distributed, delivered for shipment, and offered for sale in COlllmerce, as "commerce" is defined in said Act wool products, as "wool products" are defined therein.

PAll. 3. Certain of said ,vool products "ere misbranded by the respondents within the intent and meaning of Section 4(a) (1) of the W 001 Products Labeling Act and the Rules and Regulations promulgated thereunder, in that t.hey were falsely and deceptively labeled or tagged with respect to the elmraeter and amount of the constituent fibers contained therein.

Among such wool products were coats labeled or tagged by respondents as "30% 1Vool 700/0 Other Fibers " whereas said coats contained nylon and acetate, each in excess of 0% of the total fiber weight. PAll. 4. Cert.ain or said wool products were further misbranded by respondents in that they were not st.amped, tagged or labeled as required under the provisions of Section 4(a) (2) of the 'Vool Products Labeling Act and in the manner and fornl as prescribed by the Rules and Regulations promulgated under said Act. P(8. 5. The respondents, in the course and conduct of their business, as aforesaid, were and are in substantial competition with other corporfltions, firms and individuals likewise engaged in the manufacture and sale of wool products, including coats. PAll. 6. The acts and practices or the respondents, as set forth above, were and are in violation of the 'V 001 Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, 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. STYLE-RITE GIRL COAT , INC. , ET AL. 539 537 Decision Mr. Dewitt T. Puckett for the Commission. Respondents, for themselves.

INITIAL DECISION BY HERMAN Tacker, I-IEARING EXAMINER The complaint in this procecding, issued December 27, 1960 charged the respondents, Style-White Girl Coat, Inc., a New York corporation, located at 520 Eighth Avenue, New York, New York and Sidney Sommer and Morton Sommer, individually and as of!eers of said corporation, and located at the sanle address as the corporate respondent, with violation of the provisions of the Federal Trade Commission Act, and the .W 001 Products Labeling Act of 1939 and the Rules and Hegulations made pursuant thereto, by misbranding certain wool products manufactured by them for introcluclon into commerce.

After the issuance of the complaint, respondents entered into an agreement containing consent order to cease and desist with counsel in support of the complaint, disposing of all the issues as to all parties in this procecding.

It was expressly provided in said agreement that the signing thereof is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as ltUeged in the complaint.

By t.he terms of said agreement, the respondents admitted all the jurisdictional facts alleged in the complaint and agreed that tho record herein may be taken as if the Commission had made fmdings of jurisdictional facts in accordance with the allegations. By said agreement., the parties expressly waived any further procedura.l steps before the hearing examiner and the Commission; the Inaking of findings of fact or conclusions of law; and all the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement. Respondents further agreed that the order to cease and desist issued in accordance with said agreement, shall have the same force and effect as if Inade after a fun hearing. It was further provided that said agreement, together with the complaint, shall constitute the entire record herein; that the complaint herein may be used in construing the terms of the order issued pursuant to said agreement; and that said order may be altered modified or Eet aEide in the manner prescribed by the statute for orders of the Commission.

540 FEDERAL TRADE CO nIISSION DECISIONS DedsiOll 38 F.

The hearing examiner has considered such agreement and the order therein contained, and, it appearing that selid agreement. and order provide for an appropriate djtiposition of this proceeding, the same is hereby accepted and is ordered filed upon becoming pa.rt of the Commission s dpcision in accordance wit.h Sections 3.21 and 3. of the Hules; of Practice, and, in consonance with the terms of said agreement, t.he hearing exftmine.r finds that the Federal Trade Commission has jurisdiction of the subject matter of this place,ec1ing and of the respondents named herein and that this proceeding is in the interest of the public, f111cl issues Ihe following order: ORDER It is onlrrcd That respondplHs Style-Rite Girl Coat, Inc., a corporation, and its oJI-cel's, and Si(lney Somme1' and )Iol'toll Sommer individually and as offcers of said corponttion and respondents' representatives, ftgents and lTployees, directly 01' through any corpontte or oj-her device, in connection TIith the introduction or manufacture for introdllc.ion into eOlInneree, or the oiIering for sale. sale, transportation or distribution in COlllJ1e.rce, as "cOJnlne1'ce ' is defined in the Federal Trade Commission Act and the ,Yool Products Labeling Act of 1D39, of woolen coah or other ;:wool vroducts " as such products ate. defined in and subject to the I,Yool Products Labeling Act of 1930, do fortlnyith cease and desist from: )Iisbranding such products by:

1. Falsely n.nd (lee-eptively stamping, tagging labeling, or ot.herwise identifying such products lls to the characj e1' or amount of the constituent fibers included therein;

2. Failing to affx labels to such products shOlying each clement of information required to be disclosed by 8 (a) (2) of the ,Vaal Products Labeling Act of 1030.

DECISIOX OF Tile. CO)DIJSSIO \!\D OTIDEIl TO FILE REPORT OF C'Q)IPLL-\XCE Pursuant. to Section 3.21 of the Commission s Rules of Practice the initial cleeision of the hearing examiner sha.ll, on the 30th clay of )\la1'ch 1$)(-), become, the decision of the Commission; fwd accordingly:

It is ordered That respondents herein sh::l11 : within sixty (60) days aiter sC1Tice upon them of this order, file with the Commission a report in writing, setting forth in (let ail the manner find form in which they 1111\8 complied 1;-ith the o1'le1' to cease Hlll desist. , ;; , TESSITALIA 541 541 Findings