Billie Lebow, Inc.

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

IN THE "'latter OF BILLIE LEBOW, IXC., ET AI.

CONSEN'T ORDER ETC. : IX REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE C01\:Li\nS8IO AND THE FUR PRODUCTS LABELING ACTS Docket 8252. Complaint, Dec. 1960-Decision, Apr. 18, 1961 Consent order requiring New York City furriers to cease violating the Fur Products IJabeling Act by pricing fur products fictitiously on invoices, by failng in other respects to observe invoicing and advertising requireM ments, and by failng to keep adequate records as a basis for pricing and savings claims made in advertising.

COl\IPLAIXT Pursuant to the provisions of the Federal Trade Commission 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 Bilie Lebow, Inc., a corporation, Furs by Bilie, Ltd., a corporation, and Bilie Lebow, individually and as an offcer of said corporations, hereinafter referred to as respondents have violated the provisions of said Acts and the Rules and Regulations promulgated under the Fur Products Labeling Act, and it appearing to t.he 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: PARAGRAPH 1. Billie Lebow, Inc. and Furs by Bilie, Ltd. , are corporations organized, existing and doing business under and by virtue of the laws of the State of New York with their offces and principal places of business located at 333 Seventh Avenue, New York, New York.

Bilie Lebow is president of both the said corporate respondents and controls, formulates and directs the acts practices and policies of the said corporate respondents. Her offce and principal place of business is the same as that of the said corporate respondents. PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9, 1952, respondents have been and are now engaged in the introduction into commerce, and in the sale, advertising, and offering for sale, in commerce, and in the transportation , BILLIE LEBOW) INC. ) E'I AL.

324 Decision and distrjbution in commerce, of fur products; and have sold advertised, oH'ered for sale, transported and distributed Tur products which have been made in Ivhole or in part of fur which had been shipped and received in commerce, as the terms "commerce fur and "fur product" arc defined in the Fur Products Labeling Act. PAR. 3. Certain of said fur products were falsely and deceptively invoiced by respondents in that they were not invoiced as required by Section 5 (b) (1) of the Fur Products Labeling Act, and in the manner and form prescribed by the Hules and Hegulations promulgated thereunder.

PAR. 4. Certain of said fur products were falsely and deceptively invoiced in that the respondents, on invoices, made representations as to t.he prices of fur proc111cts which prices I,N' e in fact fictitious, in violation of Section 5 (b) (2) of the Fur Products Labeling Act. PAR. 5. Certain of said fur products were falsely and deceptively adver6sed in that the respondents, on consignment invoices, made representations and gave notiees concerning said fur products, which representations and notices were not in aecordance with the provisions of Section 5(a) of the Fur Products Labeling Act and the Hules and Hcgulations promulgated thereunder, and which representations and notices were intended to aid, promote and assist directly or indirectly, in the sale and offering for sale of said fur products.

PAR. 6. Respondents in making pricing and savings claims and representations in advertisements failed to maintain full and adequate records disclosing the facts upon which such claims and representations were based, in violation of Hule 44 (e) of the Rules and Regulations under the Fur Products Labeling Act. PAIL 7. The aforesaid ads and practices of respondents, as herein alleged, are in violation of the Fur Products Labeling Act and the Hules and Hegulations promulgated thereunder and constitute unfair and deceptive acts and practices in commerce under the Federal Trade Commission Act.

Mr. Charles W. O' Connell and lb. David J. McKean for the Commission.

Hespondents pro se.

INITL\.L DECISION BY JOHN B. PorXDEXTER, HEARlXG EXAMINER On December 29, 1960, the Federal Trade Commission issued a complaint charging the above-named respondents with falsely and deceptively invoieing and ilcl\'ertising certa.ln or their said fur proc1fill-237-e3- 626 FEDERAL TRADE COM.,nSSION DECISIONS Findings 38 ucts in violation of the Federal Trade Commission Act and the Fur Products Labeling Act.

After issuance and service of the complaint, the respondents and counsel supporting the complaint entered into an agreement for a consent order. The agrecment has been approved by the Director Associate Director and the Assistant Director of the Bureau Litigation. The agreement disposes of the matters complained about. The pertinent provisions of said agreement are as follows: Respondents admit all jurisdictional facts; the complaint may be used in construing the terms of the order; the order shall have the same force and effect as if entered after a full hearing and the said agreement 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; the record herein shall consist solely of the complaint and thc agreement; respondents waive the requirement that the decision must contain a statement of fmdings of fact and conclusions of law; respondents waive further procedural steps before the hearing examiner and the Commission, and the order may be altered, modified or set aside in the manner provided by statute for other orders; respondents waive any right to challenge or contest the validity of the order entered in accordance with the agreement and 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.

The undersigned hearing examiner having considered the agreement and proposed order, hereby accepts such agreement, makes the following jurisdictional findings, and issues the following order: JURSDICTIONAL FINDIKGS 1. Respondent Bille Lebow, Inc. , is a corporation 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 333 Seventh Avenue, in the City of X ew York, State of X ew York. 2. Respondent Furs by Bilie, Ltd., is a corporation 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 333 Seventh Avenue, in the City of New York, State of New York. 3. Individual respondent Bille Lebow is president of both the said corporate respondents and controls, formulates and directs the acts, practices and policies of the said corporate respondents. Her offce and principal place of business is the same as that of the said corporate respondents.

BILLIE LEBOW, INC. , ET AL. 627 624 Order 4. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents hereinabove named and the proceeding is in the public interest. ORDER It UJ ordered That respondents Bille Lebow, Inc., a corporation and its offcers, and Furs by Bilie, Ltd., a corporation, and its officers and Bilie Lebow, individually and as an offcer of said corporations and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction into commerce, or the sale, advertising, or offering :for sale in commerce, or the transportation or distribution in commerce or fur products, or in connection with the sale, advertising, offering for sale, transportation, or distribution of fur products which are made in whole or in part of fur which has been shipped and received in commerce, as "commerce, ":fur" and "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

1. Falsely or deceptively invoicing fur products by: A. Failing to furnish invoices to purchasers of fur products showing in words and figures plainly legible all the information required to be disclosed by each of the subsections of Section 5 (b) (1) of the Fur Products Labcling Act.

B. Representing directly or by implication on invoices that the regular or usual prices or any fur product is any amount which is in excess of the price at which respondents have usually and customarily sold such products in the recent regular course or business. 2. Falsely or deceptively advertising fur product.s through the use or any advertisement, representation, public announcement, or notice which is intended to aid, promot.e or assist, directly or indirectly in the sale, or offering for sale of fur products and which: A. Represents directly or by implication that the regular or usual price of any fur product is any amount which is in excess of the price at which respondents have usually and customarily sold such products in the recent regular course of business. B. Misrepresents in any manner the savings available to purchasers of respondents' fur products.

3. Making pricing claims or representat.ions respecting prices and values of fur products unless respondents maintain full and adequate records disclosing the facts upon which such claims and representati ons are based.

628 FEDERAL TRADE CO:\I:vISSIO T DECISIOXS Decision 58 F.

DECISION OF THE COl\DIISSIOX A::'W ORDER TO FILE REPORT OF C01\ITLIANCE Pursuant to Se.dion 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 18th day of April 1961, become thc decision of the Commission; and accordingly:

I tis onlered That respondents herein shall, within sixty (60) days a.after serdce upon them of this order, file with the Commission a report in \writing setting forth in del ail the manner and form in