Samuel Schenker, Inc., et al.

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IN THE HATTER OF SA1nml SCHEKKER, Rfc., ET AL.

CONSENT ORDER ETC., IN REGARD TO THE ALLEGED VIOLATION OF 'l' l"EDERAL TRADE CO IlIISSION AND THE. FUR PRODUCTS LABELING ACTS Docket 8250. Complaint, Dec. 28, 1960-Decision, Apr. 13, 1.961 Consent order requiring a New York City furrier to cease violating the Fur Products Labeling Act by failng to comply with labeling and invoicing requirements.

CO:'rIPLAINT Pursuant to t.he provisions of the Federal Trade Cmll1nission Act and the Fur Products Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Samuel Schenker, Inc. , a corporation, and Samuel Schenker, individually and as an offcer of said corporation hereinafter referred to as respondents, have violated the provisions of said Acts and the Hules and Hegulations 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:

P ARAGRAPli 1. Samuel Schenker, Inc., is a corporation organized existing and doing business under and by virtue of the laws of the , SAMUEL SCHE:\TKER , INC. , ET AL. 605 604 Complaint State of J'ew York with its offce and principal place of business located at 252 'West 37th Street, N cw York, K ew York. corporate respondent Samuel Schenker is president of the said and controls, directs and fOl'nulates the acts, practices and policies of the said corporate respondent, including the acts and practices hereinafter set forth. His offce and principal place of business is the same as that of the corporate respondent. PAH. 2. Subsequent to the effective date of the Fur Products Labeling Act on Aug-ust 9, 1952, respondents have been and are now engaged in tile, introduction into commerce, and in the Inanufacture for introduction into commerce, and in the sale, advertising and offering for sale, transportation and distribution in commerce, of fur products and have manufactured for sale, sold, advertised, offered for sale, transported and distributed fur products "which have been made in whole or in part of fur which had been shipped and received in commerce. as the terms "commerce fur" and fut product" are defined in the Fur Products Labeling Act. PAll. 3. Certain of said fur products were misbranded in that they were not labeled as required un dci' the provisions of Section '1(2) of the Fur Products Labeling Act and in the manner and form prescribed by the R.ules and Regulations promulgaterl thereunder. PAR. '1. Certain of said fur products were misbranded in violation of the Fur Products Labeling Act in that they were not labeled in accordance wit.h the R.ulcs and Regulations promulgated thereunder in the following respects:

(a) Information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Hegulations promulgated thereunder \Vas set forth in handwriting on labels, in violation of Rule 29 (b) of said Rules and Hegulatio1l.

(b) Required item numbers were not set forth on labels, in violation of Rule 40 of said Hules and Regulations. PAR. 5. Certain of said fur products were falsely and deceptively invoiced by respondent in that they were not invoiced as required by Section 5 (b) (1) of the Fur Pl'duets Labeling Act, and in the manner and form prescribecl by the R.ules and RcguJations promulgated thereunder.

\R. 6. Certain of said fnr products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act as they were not invoiced in accordance with the Hules and Regulations promulgated therennr1e.r in that required item numbers "ere not set forth on invoices in violation of Rule 40 of said R.ules and Hegulations. PAn. 7. '1'he aforesaid acts and practices of respondents, as herein alleged, are in violation of the Fur Products Labeling Act and the 606 FEDERAL TRADE CO?dYIISSION DECISIONS Decision 58 F.

Rules and Regulations promulgat.ed thcreunder and constitute unfair and deceptive acts and practices in commerce under the Federal Trade Commission Act.

lift. Erlwst D. Oakland for the Commission. Nr. Stanley S. H01'vath of Schaeffer Goldstein of Xew York N. Y., for responents.

INITIAL DEClSIOX BY HERl\AX TOCKED, HE,\IiIXG EX.UIINER The comp_lrint in this proceeding, issued December 28, 1960 charged the respondents, Samuel Schenker, Inc. , a corporation located at 252 \Vcst. i37th Street, New York, New York, and Samuel Schenker, individually and as offcer of saiel corporation, and located at t.he same address as the corporate respondent, with violation of the Fur Products Labeling Act by failing to label products, and deceptively invoicing other products introduced by them into commerce.

Aft.er the issuance of the complaint, respondents entered into an agreement containing' consent order to cease and desist with counsel support of the c mplaint disposing of all the issues as to all parties in this proceeding.

It was expressly provided in said agreement that the signing thereof is for settel1ent purposes only ancl does not constitute an admission by respondents that they have violated the law as alleged in the complaint.

By the terms of said agreement, the respondents admitted all the jurisdictional fa.cts alleged in the complaint and agreed that the record herein may be taken as if the Commission had Inade findings of jurisdict.ional facts in accordance with the allegations. By said agreement, the parties expressly waived any further procedural ste,ps be.fore the hearing examiner and the Commission; the making of findings of fact or eonclusjons of law; and all rights they may have to challenge or contest the validity of the order to cea.s8and desist entered in accordance with the agreement. Respondents further agreed that the order to cease and desist issued in aecorda,nee with said agreement, shall have the same force and effect as if made after a full 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 set aside in the manner prescribed by the st.atute for orders of the Commission.

, SA3.rCEL SCHENKER,. INC.,. ET AL. 607 604 Order The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provide for an Lppropriate disposition of this proceeding, the smile is hereby accepted, and, upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Rules of Practice, shall be fied; and, in consonance with the terms thereof the hearing examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the re,spondents named herein, and that this proceeding is in the interest of the public, and issues the iol1owing order: ORDER It is ordered That respondents, Samuel Schenker, Inc., a corporation, and it.s otliccl's, and Samuel Schenker, individually, rmd as a.n offcer of said corporation, and respondents representatives, agents and employee.s, directly or through any eorporatc or ot.her device. in cODneetjon ,,-ith the introduction, JlfU1l1facture for introduction into coml1wrre, or t.he sale, advertising or offering for sale, tral1Sporation or distribution in commerce of fur products; or in COllne,ction with the sale, manufacture for sale, advertising, offering for sale, t.transportation or distribution of fur products "which ha.ve been made in whole or in part of fur which.h has been shipped and received in commerce, as "commerce fur" and "fur products" are defined in the Fur Products La.be.ling Act, do forthwith cease and desist from:

A. .YIisbranding fur products by:

(1) Failing to affx labels to fur products showing in words and :fgures plainly legible flu the information required to be disclosed by each of the subsections of Section 4(2) of the Fur Products Labeling Act.

(2) Setting forth in handwriting on labels affxed to fur products information required under Section 4(2) of the Fur Products Labeling Act and the Hules and Regulations promulgated thereunder'.

(3) Failing to set forth on labels affxed to fur products the item number or mark assigned to a fur product. B. Falsely or deceptively invoicing fur products by: (1) Failing to furnish to purchasers of fur products inyoires showing the informat.ion required to be djsclosed by each of the llbsections of Section 5(11) (1) of the Fur Products Labeling Act. (2) Failing to set forth on invoices pertnining to fnr P OdllCts the item number or mark assignecl to a fur product. 608 FEDERAL TRADE COMMISSIO DECISIONS Complaint 58 F.

DECISION OF THE COME-IISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of 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 i8 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 mamler and form in which they have complied with the order to cease and desist.