Asheville Textiles Corp.

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it has complied with the order to cease and desist. Ix THE JI:utter OF ASHEVILLE TEXTILES CORP. ET AL. OONSEXT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERA TRAE COM:MISSION AND Tile WOOL PRODUCTS LABELNG ACTS Docket 8233. Complaint, Dec. 1960-Decision, .:1'1'. , 1961 Consent order requiring Kew York City distributors to cease violating the 'Voal Products Labeling Act by tagging as 30% wool, 70% other fibers woolen fabrics which contained nylon and acetate, each in excess of 5% of the total fiber weight, and by failng to label certain other of their products as required.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that Asheville Textiles Corp., a corporation and Lawrence Herman and Max Kovner, individually and as offcers of said corporation, hereinafter referred to as respondents hav violated the provisions of said Acts and the Rules and Regulations promulgated under the .W Dol Products Labeling Act, and it appearing to the Commission that a proceeding by it in respect thereof ASHEVILLE TEXTILES CORP. ET AL. 577 576 Complaint would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

P AHAGRAPll 1. Respondent Asheville Textiles Corp. is a corporation organized, existing and doing business under and by virtue of the laws of the State of :New York. Individual respondents offcers of the corporateLawrence Hcrman and I\lax !(ovner are respondent. Said individual respondents cooperate in fonllulating, directing and controlling the acts, policies and practices of the corporate respondent, including the acts and practices hereinafter referred to. All respondents have their offce and principal place of business at 450 Seventh Avenue in New York, N ew York. PAR. 2 Subsequent to the effective date of the 'Wool Products Labeling Act of 1939 , and more especially since 1958, respondents have introduced into commerce, sold, transported, distributed delivered for shipll1Cnt, and offered for sale in commerce, as "commerce" is defined in said Act, wool products as "wool products" are defined therein.

PAR. 3. Certain of said wool products were 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 they were falsely and deceptively labeled or taggcd with respect to the character and amount of the constituent fibers contained therein.

Among such products were woolen fabrics labeled or tagged by respondents as "30% wool 700/0 other fibers," whereas said fabrics contained nylon and acetate, each in excess of 5'1 of the total fiber weight.

PAR. 4. Certain of said wool products were misbranded by respondents in that they were not stamped, tagged or labeled as required under the provisions of Section 4(a) (2) of the 'Wool Products Labeling Act and in the manner and form as prescribed by the Rules and Regulations pr01llulgat.ed under said Act. PAll. 5. In the course and conduct of their business, respondents were and are in substantial competition, in commerce, with corporations, firms and individuals likewise engaged in the sale of woolen fabrics.

PAR. 6. The acts and practices of the respondents, as set forth above, were ami are in violation of the Wool Products Labeling Act and the R.ulcs and Hegulations promulgated thereunder, and consti. tuted and now constitute unfair and deceptive acts and practices and unfair methods of competition, in commerce, within the intent and meaning of the Fec1eml Trade Commission Act. oSl-237 63--- 578 FEDERAL TRADE COM nSSION DECISIO"'S Decision 58 F.

PAR. 7. In the course and conduct of their business, respondents have made certain statements with respect to the fibers of which their wool products were composed on invoices covering the shipment of said fabrics, among which the following is typical: 95% Reprocessed Wool-50/ Nylon whereas, in truth and in fact, said fabrics contained substantially less woolen fibers than that set forth on the said invoices. PAR. 8. The acts and practices sct out in Paragraph Seven had and now have the tendency Rnd capacity to mislead and deceive purchasers of said products as to the true fiber content thereof and to misbrand products manufactured by then1 in which said products were used.

PAR. 9. The acts and practices of the respondents, as set forth in Paragraph Seven 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 ..\ct.

Mr. De Witt T. Puckett for the Commission. Nr. Ruben Schwartz of )few York, N. , for respondents. INITIAL DECISION BY llIDIAX TOCKER, HE.AIUNG EXA:\IINER 1960 The complaint in this proceeding, issued December 27, charged the respondents, Asheville Textiles Corp., anew Yark corporation, located at 450 Seventh Avenue, New York 1, New York and Lawrence Hern1an and Iax l\:ovner, individual.11y and as offcers of said corporation, rmd located at the same address as the corporate respondent, with violation of the provisions of the Federal Trade 193D andCommission Act, and the VV 001 Products Labeling Aet of the Rules and Regulations made pursuant thereto, by Inisbranding certain wool products manufactured by them for introduction 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 proceeding.

It was expressly provided in sa.ic1 agreement that the signing thereof is for settlement purposes only and does not constitute an admission by respondents that they have violated the Jaw as alleged in the complaint.

By the terms of sa.ic1 agreement, the respondents admitted all the jurisdictional facts alleged in the complaint and agreed that the ASHEVILLE TEXTILES CORP. ET AL. 579 576 Order record herein may be taken as if the Commission had made findings of jurisdictional facts in accordance with the allegations. By said agreement, the parties expressly wa,ivecl any further procedunll steps before the hearing examiner and the Conunission; the making or findings of fact 01' c(;llclusiollS of hlW; and all rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreeme.nt. Respondents further agreed that the order t.o cease and desist issued in accordance \with said agreement, shah have the sa,me force and euect as if 11n,de after a fnJI hearing. It was further provided that said agreen1ent, together with the complaint, shall constitute the entire record herein j that the C0111plaint herein Inay be llsed in construing t.he terms of the order issued pursuant to said agreement.; and that said order may be altered 1110clifiecl or set aside in the manner prescribed by the statute for orders of the Commission.

The hearing examiner has considered such agreement and the order therein contained, and, it appcRring that said agreement and order provide for an appropriate disposition of this pro(',eeding, the same is hereby accepted and, upon becoming part of the CmnmiR,o;ion decision in accordance with Sections 3,21 and 3.2;) of t.he HnJes oJ Prn.ctice lll be filed; and in consonance with the t.terms thereof t.he hearing examiner finc1s t.hat. the Federal Trade Commission has jllri clict.on of t,he subject matter of this proceeding and of the respondent.s named herein, and thrt t.his proceeding 1S in the intere.st of t1w public, Hnd issues the following order: OlUTER I t is once?'ecl That respondents Asheville Textiles Corp., a corporat.ion, and its offcers, and Lawrence IIel'man and JHax KOTIer individually find as offcers of sajd corporation, and respondents repre.sentat.ives agents and employees, directly or through any corporate or other device, in connection ",.ith the introduction into com- 1TlCree or the offering for sale, sa, , transportion or distribution in eoll.merce, as "commerce ' is defined in the Federal Trade Commission Act :wcl the Vi 001 Proclucts Labeling Act of 1939, of woolen fabrics or other " woo) products " as such products are defined in and subject to the w 001 Products Labeling Act of 1939, do forthwith cease and desist from misbranding such products by: 1. Falsely or deceptively stamping, tagging, .labeling or otherwise identifying :;uch products as to the character or amount of the con stituent fibers included therein;

Complaint 58 F.

2. Failing to affx labels to such products showing each element of information required to be disclosed by Section 4(a) (2) of the ' Wool Products Labeling Act of 1939.

It i8 fUTtheT ordered That respondents Ashevillc Textiles Corp. a corporation. md its officers, a,nd Lawrence I-Ierman and j11ax: n::ovner, individually and as offcers of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale sale or clistdbution of fabrics or any other product in commerce, as co11n181'ce " is defmed in the Federal Trade Commission . ct., do forthwith cease and desist from misrepresenting the constituent fibers of which their products arc composed, or the percentages thereof, on invoices, shipping memoranda or in any other manner. DECISIQ:: OF THE COl\IlnSSIOX AND OTImm TO FILE H.l'PORT OF COJlfPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 12th day of April 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, file with the Commission a report in writing, setting forth in detail the manner and form in which they have complied with the order to cease and desist.