Europe Craft Imports, Inc.

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

IN THE MATTER OF EUROPE CRAFT IMPORTS, INC., ET AL.

COKSENT ORDER, ETC., IN REGARD 'rQ 'I'HE ALLEGED VIOLATION OF Tli FEDERAL TRADE CO::LJIISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 8211. Complaint, Dec. 7, 1960-Decision, Apl'. 13, 1961 Consent order requiring ew York City importers of wool products from Holland to cease violating the Wool Products Labeling Act by labeling as 55% Wool 45% Helanca, ladies' and men s ski pants which contained substantially less woolen fibers than thus represented, by rendering inconspicuous tlle required information as to fiber content on labels by reason of insuffcient background contrast, and by using the term Relanea" instead of the common generic name of the fiber; and to cease representing falsely, by use in advertising matter and on labels of two ski sticks inserted in a snow-covered slope and the words "Piz Palu" (a Swiss mountain) and "St. Moritz" (a Swiss vilage), that their said ski pants were manufactured in Switzerland. CO:)fl'LAINT 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 Europe Craft Imports, Inc. a corporation, and I-Iernlan Feigcnhcimer and Gerda Feigenheimer indi vi dually and as offcers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the 'W 001 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 sbtting its trges in that respect as follows: PARAGRAPH 1. Respondent Europe Craft Imports, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Kew York. Individual respondents Herman Feigenheimer and Gerda Fcigcnheimer are offcers of the corporate respondent. Said individual respondents cooperate in formulating, directing and controlling the acts, policies and prac tices of the corporate respondent, including the acts and practices hereinafter referred to. All respondents have their offce and principal place of business at 488 7th A vcnue, New York, New York. PAR. 2. Subsequent to the effective date of the 'W 001 Products Labeling Act of 1939 and more especially since 1959 respondents have imported from Holland, introc1uc.ed into c.commerce, offered 600 FEDERAL TRADE DIISSION DECISIO Complaint 58 F.

for sale, transported and distributed in commerce, as "commerce" is defined in said Aet, 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 Wool Products Labeling Act and the Rules and Regulations promulgated thereunder, in that they were falsely and deceptively labeled or tagged with respect to the character and amount of the constituent fibers contained therein.

Among such misbranded wool products were ladies' and men ski pants labeled or tagged as "55% Wool 45% Helanca, whereas in truth and in fact, said products contained substantially less woolen fibers than represented.

PAR. 4. Certain of said wool products were further misbranded by the 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 promulgated under said Act. PAR. 5. Certain of said wool products were further misbranded in violation of the Wool Products Labeling Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects: (a) The required information descriptive of the fiber content contained on the labels attached to the wool products was minimized and rendered inconspicuous, so as Jikely to be unnoticed by purchasers and the purchaser-consumers, by reason of insuffcient background contrast, making the fiber contents inconspicuous, in violation of Rule 11 of the aforesaid Rules and Regulations. (b) The labels or tags attached to the wool products described a portion of the fiber content as Helanea instead of using the common generic name of thc fiber, in violation of Rule 8 of the aforesaid Rules and Regulations.

PAR. 6. The respondents in the course and conduct of their business as aforesaid were and are in substantial competition in commerce wit.h corporations, firms and individuals likewise engaged in the sale of wool products, including ladies' and men s ski pants. PAR. 7. The acts and practices of the respondents as above set forth were, and are, in violation of the 'V ood Products Labeling Act 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. &:

EUROPE CRAFT IMPORTS ) IKC. , ET AL. 601 599 Decision PAR. 8. In the course and conduct of their business respondents in advertising matter and on labels attached to their said ski pants depict a snow covered slope with two ski sticks inserted in the snow and accompanied whh the words "Piz Palu" (a Swiss mountain) and St. Moritz" (a Swiss village) thereby representing, directly or by implication, that their said ski pants are manufactured in Switzerland.

PAR. 9. Said statements, representations and depictions are false misleading and deceptive. In truth and in fact, respondents said ski pants were manufactured in Holland.

PAR. 10. There is a preference on the part of many dealers and members of the public for ski pants made in Switzerland. PAR. 11. The use by the respondents of the aforesaid false, misleading and deceptive statements, representations and depictions has had, and now has, the capacity and tendency to lead dealers and members of the public into the erroneous and mistaken belief that said statements, representations and depictions were and are true and into the purchase of substantial quantities of respondents' product by reason of said erroneous and mist.taken belief. As a consequence thereof substantial trade, in commerce has been diverted to respondents from their competitors and substantial injury has been and is being, done to competition in commerce. PAR. 12. The acts and practices of said respondents as hereinabove alleged in Paragraph Eight were, and are, all to the prejudice and injury of the public and of respondents' competitors and constituted, and now constitut.e, unfair and deceptive acts and practices and unfair methods of competition, in commerce, within the intent and meaning of the Federal Trade Commission Act. Nr. i1ichael P. Hughes and Nr. Oharles W. O'Oonnell supporting the complaint.

Galef Jacobs by Nr. Gabriel Galef of New York N. , for re,spondents.

IXI'rIAL DECISION BY 'VALTER Ie. BENNETT, HEARING EXAMINER The Federal Trade Commission issued its complaint against the above-named respondents on December 7, 1960. The complaint charged respondents ,with mislabeling and misbranding woolen ski pants and with representing directly or by implication that said ski pants were manufactured in Switzerland rather than Holland. Said acts and practices were charged to be in violation of both the W 001 Products Labeling Act and the Federal Trade Commission Act. The proceeding has abated as to Herman Feigenheimer who is dead.

602 FEDERAL TRADE CO::vI::ITSSION DECISIONS Decisiou 58 F.

On February 1, 1961, Counsel submitted to the undersigned hearing examiner an agreement among surviving respondents, counsel representing them and counsel supporting the complaint, providing for the entry without further notice of a consent order. The agree. ment was duly approved by thc Director, thc Acting Associatc Director and the Assistant 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 Rnles 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 terrns of the order; 2) Thc order shall have the same force and effect as if entered after a full hearing;

3) The agrecment shall not become a part of the offcial record of the proceeding unless and until it becomes a part of the decision of the Commission;

4) The entire record on which any eea,se 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;

C. Waivers 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.

In acldition the agreement contains the follo\\-ing permissive 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 does not constitute an admission by respondents that they have violated the law as alleged in the complaint.

Having considered said agreement, including the proposed order and being of the opinion that they provide an appropriate basis for settlement and disposition or tllis proceeding; the hearing examine.r hereby accepts the agreement but orders that it shall not become a part of the offcin,l record unle,ss and until it becomes a part- of the decision of the Commission.

The following jurisclictiol1rtl findings are made ancl the following order issued:

1. Responclent Europe Craft Imports, Inc. is a corporation exist- 1ng fmd doing business under and by virtue or the laws of the State EUHOPE CRAFT IMPORTS, I ) B'l' AL. 603 599 Order of New York, with its offce and principal place of business located at 488-7th Avenue, in the City of New York, State of New York. 2. Individual respondent Gerda Feigenheimer is an offcer of the corporate respondent. Said individual respondent formulates, directs and controls the acts and practices of the corporate respondent. Her offce and principal place of business is located at the same address as that of the corporate respondent 3. Reliable information has been presented to the Commission that discloses that individual respondent Herman Feigenheimer is deceased.

'1. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents. ORDER It is orde,.ed That respondents, Europe Craft Imports, Inc. , a corporate.ion, and its offcers, and Gerda Feigenheimer, individually and as an offcer of said corporation, and respondents' representatives, agents, and employees, directly or through any corporate or other device, in connection with the introduction into commerce, or the offering for sale, sale, transport.ation, or distribution in commerce as "commerce" is defined in the Federal Trade Commission Act and the 1V 001 Products Labeling Act of 1939, of ski pants or other "wool products" as such products are defined in and subject to the Wool Products Labeling Act of 1939, do forthwith cease and desist from misbranding such products by:

1. Falsely or deceptively stamping, tagging, labeling or otherwise ident.ifying such products as to the character or amount of the constituent fibers included therein.

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

3. Failing to use the common generic name when naming fibers in the required information.

4. Lsing stamps, tags, labels or other means of identification upon such wool products, which have insuffcient background contrast making the fiber contents incollspic.uolls. ' 1 t i8 jmtheT OJ.dered That respondents, Europe Craft Imports r nc., a corporation, and its offcers, and Gerda Feigenheimer, individually and as an ofIceI' of said corporation, and respondents' representatives, agents and employees, dire,ctly or through any corporate or other device, in connection with the offering; for sale, sale or distribution of ski pants or any other product in commerce, as commerce" is c1e.finec1 in the Federal Trade Commission Act, do Complaint 58 F.'l.

forthwith cease and desist from misrepresenting, directly or by implication, in any manner, the country oT origin oT their ski pa,nts or of any other product.

It is further ordered That the complaint be dismissed as to Herman Feigenheimer.

DECISIO OF THE CO).IlIISSIOX AXD ORDER TO FILE REPORT 01" C01\IPLIAXCE Pursuant to Section 3.21 of the Commission s Rules oT Practice the initial decision of the hearing examiner shall on the 13th day of april 1961, become the decision of the Commission; and accordingly:

It is ordered That respondents Europe Craft Imports, Inc. , a corporation, and Gerda Feigenheimer 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.