California Floral Manufacturing Company

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IN THE MATTER OF CALIFORNIA FLORAL :lfANUFACTURIKG COMPANY ET AL.

CONSENT armER, ETO. ) IN REGARD TO THE ALLEGED VIOL \TION OF THE FEDERAL TR \DE co nIISSION AJ\"D Tile FLA3-DU.BLE FABRICS ACTS Docket 8217. Comp aint, Dec. !1, 1960-Decisionj May, 1961 Consent order requiring distributors in Yucaipa, Calif., to cease violating the Flammable Fabrics Act by sellng fabric for making leis which was so highly flammable as to be dangerous when worn. 766 FEDERAL TRADE CO",LV1ISSION DECISIONS Complaint 58 F.

COlHPLAIXT Pursuant to the provisions of the Federal Trade Commission Act and the Flammable Fabrics Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that California Floral Manufacturing Company, a corporation, and Raymond E. Ramont, individually, as an offcer of said corporation and also trading as Ramont's Floral Arts Studio hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Flammable Fabrics 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 follows:

PARAGRAPH 1. Respondent California Floral :l1manufacturing Company is a corporation duly organized, existing, and doing business under and by virtue of the laws of the State of California. Respondent Raymond E. Ramont is president of the corporate respondent and formulates, directs, and controls its policies, acts and practices. He also trades as Ramont's Floral Arts Studio. The business address of al1 the respondents is 35112 California Street Yucaipa, California.

PA'L 2. Respondents, subsequent to July 1 , 1954, the effective dat.e of the Flammable Fabrics Act, have sold and offered for sale trans-in commerce; have introduced, delivered for introduction, ported, and caused to be transported, in commerce; and have transported and caused to be transported for the purpose of sale or delivery after sale in commerce; as "commerce" is defmed in the Flammable Fabrics Act, fabric, as that term is delined therein which fabric was, under Section 4 of the Flammable Fabrics Act as amended, so highly flammable as to be dangerous when worn by individuals. Said fabric is offered for sale and sold by respondents for the purpose of making leis.

PAR. 3. Itespondents, in the course and conduct of their business are engaged in direct and substantial competition, in commerce with corporations, firms and individuals in the sale and offering for sale of fabrics for the same general use as that of respondents' which are not dangerously fJammab1e under the definition of the Flammable Fabrics Act.

PAR. 4. The aforcsaid acts and practices of respondents were and are in violat.ion of the Flammable Fabrics Act and the Rules and R.egulations prop1ulgated thereunder, and as such constitute unfair methods of competition and unfair and deceptive acts and practices in CALIFORNIA FLORAL MANFACTURING CO. ET AL. 767 765 Decision commerce, within the intent and meaning of the Federal Trade Commission Act.

Mr. Brockman Hore for the Commission. Mr. Carl B. Stu1'Ze7Vker of Los Angeles, Calif., for respondents. INITIAL DECISION BY LOREN H. LAUGHLIN, HEARum EXAMINER The Federal Trade c:ommission (sometimes also hereinafter referred to as the Commission) on December 9 , 1960, issued its complaint herein, charging the respondents, California Floral Manufacturing Company, a corporation, and Raymond E. Ramont individually, and as an offcer of said corporation, and also trading as Ramont' s Floral Arts Studio, with having violated the provisions of the Federal Trade Commission Act, and of the Flammable Fabrics Act and the Rules and Regulations promulgated thereunder; and respondents were duly served with process. On March 20, 1961 , there was submitted to the undersigned hearing examiner of the Commission, for his consideration and approval, an "Agreement Containing Consent Order To Cease And Desist", which had been entered into by respondents their counsel and counsel supporting the complaint on Ylarch 9, 1961 , subject to the approval of the Bureau of Litigation of the Commission, which had subsequently duly approved the same.

After due consideration, the hearing examiner finds that said agreement, both in form and in content, is in accord with 25 of the Commission s H.uses of Practice for Adjudicative Proceedings and that by said agreement the parties have specifically agreed to the following matters:

1. Hcspondent California Floral 1vlanufacturing Company is a corporation existing and doing business under and by virtue of the laws of the state of California, with its offce and principal place of business located at 35112 California Street, Yucaipa, California. Respondent Raymond E. Hamont is a,n individual and is an offcer of the corporate respondent. As such, he formulates, directs, and controls the policicsj ads and practices of said corporation. He also trades as Ramonfs Floral Arts Studio. I-lis business address is the same as t.hat of the corporate respondent. 2. Hesponclents admit alj the jurisdictional facts alleged in the complaint and. agree that the record may be taken as if find ngs of jurisc1ictionnl facts had been duly made in accordance With such allegations, 3. This agreement dislJOses of all of this proceeding as to an part,irs.

768 FEDERAL TRADE CO:\MISSION DECISIO Decision 58 F.

4. R.respondents waive:

(a) Any further procedural steps before the bearing exammer and the Commission;

(b) The making of findings of fact or conclusions of law; and (c) AU of the rights they may have to cl,"l1enge m' contest the va1ldity of the order to c.ease and c1csi!:t 8mel'ed ill accol" cbnce ith this agreement.

5. The reeorcl on which the initial decision and the decision of the Commission sludl be based shall consist solely of the complaint. and this 8.greement.

6. This agreeme,nt shan not become a part of the offcial record nnkss and until it becomes a part of the decision of the Commission. 7. This agreement is for settlement pllrpm:es only and does not. con.c:t itnte an i:clmission by respondents that they have violated t.he law /lS alleged in the complaint.

S. The following order to ce.ase and desist may be entered in this proceeding by the Commission without further notice to respondents. ,Vhen so entered it shall have the same force and effect as if entered after a full hearing. It may be alterc(1, modified or set aside in the manner provided for other orders. The complaint may be used in construing tho terms of the order.

Upon due, consideration of said complaint and agreement, the hearing examiner approves and accepts the "Agreement Containing Consent Order To Cease And Desist; finds thn.t the Commission has jurisdiction of the subjc(.t nlflttpl' of this proceeding and of the respondents herein; that the complaint states a legal cause for complaint under' the Federal Trade Commission Act and under the Flammable Fabric.s ct and the Hnles and Hegulations promulgated thereunder, against the responclents both generally and in each of the pflrticulars alleged therein; that this proceeding is in the interest of the public; a,nd that the order proposed in said agreement appropriate for the just disposition of a.ll the issues in this proceeding as to an of the parties hereto; and therefore issues the said olde.r, a.s follmys:

j t is ordc1' That respondents California Floral Ianufacturing Company, a corporation, and its offcers, and respondent Ra.ymond E. Ramont individually, and as an ofEccr of said corporation and trading as Ramont's Floral Arts Studio, or under any other name a.nd respondents' representatives agents and employees, directly or through any corporate or other device, do forthwith cease arJel desist from:

ECOKOMY PHODDCTS COHPORATION ET AL. 769 765 Complaint 1. Selling;, offering for ale, introducing, delivering for introc1ucbon, transporting, or causing to be transported, in commerce, as comllel'ce ' is defined in the Flammflble Fabrics Act; or 2. Transporting or causing to be trnn ported lor the purpose of sale or delivery after sale in commerce, any iabric, intended or sold for nse in \Y8aring appaJ'e! \which, under the provisions of S4 of the sai(l Flammable Fabrics Act, as amended, is so highly flammable as to be c1ange:rous \"hen \yorn by individuals. CJSIOX OF TIm CU:"DIISSIOX j,ND mmer TO FILE HEPORT OF lPLIA C:E Pursuant. to Section 3.21 of the Commission s Rules of Practice the initial decision of the he,aring examiner shall, on the 16th day of .ra? 10G1 , become the decision of the Commission; and, accordingly:

It is ()J'Zcnd That respondents Crtlifornia Flornl J\Ianufacturing Company, , COTpOl'fltioJl j and Raymond E. Ramont, individually, and as an offcer of said corporation, and trading as R.amonfs Floral Arts Studio, shall, 1within sixty (GO) days after service upon them of this order, file \\.ith the Commission a report in \Writing, setting forth in detail the manner and form in which they have complied