Flemington Fur Company et al.

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hieh they have complied with the order io cease and clesist. Ix THE IA TTER OF FLE:lfIKGTON FUR COMP AKY ET AL.

COXSEKT Order ETC. , IN REGARD TO THE ALLEGED "''TOLATIOJ\"C OF THB FEDERAL TRADE CO:1DIISSlOX AND THE FUR PRODL.CTS L.ABELIXG ACTS Docket 8246. Oomplaint, Dec. 1960-Decision, May, 1961 Consent order requiring furriers in Flemington, N. , to cease violating the Fur Products Labeling Act by advertising in newspapers which failed to dis. close the name of the country of origin of imported furs, and represented falsely that they manufactured all the fur products they handled and acted as their O'vn distributor; and by failng to comply with invoicing require. ments FLE:\lIKGTON FUR COMPA Y ET AL. 801 800 Complaint COl\IPLAIXT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority \"steel in it by said Acts, the Federal Trade Commission, having reason to believe that Flemington Fur Company, a corporation, and Philip .r. Benjamin and Joseph Birnbaum, individually and as offcers of said corporation, hereinafter referred to as respondents hayc violated the provisions of said Acts and the Hules and Re,gulations 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: \RAGllAPH 1. Flelnington Fur Company is a corpora.tion organized, existing and doing business under and by virtue of the laws of the State of Ncw Jersey with its offce anel principal place of business located at 8 Spring Street, Flemington, Kew Jersey. Respondents Philip J. Bcnjamin and Joseph Birnbaum are offcers of the corporate respondent. They control, formulate and direct t.he acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. Their address is the same as that of the corporate respondent. \R. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 8 , 1952, respondents have been and are now engaged in the introduction into commerce, and in the manufacture for introduction into commerce, and in the sale, a.advertising, offering for sale, transportation and distribution, in commerce, of fur products, an(1 have manufactured for sale, solar1, advertised, offereel for sale, transported and distributed fur products which have been made in whole or in pert of fur which had been shipped and received in commerce as the terms "commerce, "fur" and "fur product" are, defined in the Fur Products Labeling Act. PAR. 3. Certa.in of said fur products were falsely and deceptively invoiced by the respondents in that they were not. invoiced as required by Section 5(b) (1) of the Fur Products Labeling Act, end in the manner and form pre,scribed by the R.ules and Heglllations promulgated thereunder.

PAll. 4. Certain of saiel fur products were falsely and r1rceptively advertised in violfltion of the Fur Products Labeling Act in that respondents caused the dissemination in commerce, as "commerce Sf! i dis defined in said Act, of certain radio broadcasts concerning products "which \Were not in accordance ' with the provisions of Sec- GS1- 2.:7 r.;;- 802 FEDERAL TRADE COM.viission DECISIOKS Complaint 58 F.

tion 5 (a) of the Act and the Rules and Regulations promulgated thereunder and which advertisements ,were intended to aid, promote or assist, directly or indirectly in the sale and offering for sale of said fur products.

PAR. 5. Among and included in the advertisements as aforesaid but not limited thereto were advertisements of respondents which were broadcast over Station 1\TOR a radio station located in Yark, J\T ew Yark and having a wide coverage in said Stale and various other States of the lnited States. By means of said advertisements and ot.hers of similar import and meaning not specifically referred to herein, respondents fa.lsely and deceptively advertised fur products in that said advertisements failed to disclose the name of the country of origin of the imported furs contained in the fur product, in violation of Section 5 (a) (6) of the Fur Products Labeling Act.

PAR. 6. In advertising fur products for sale A.S aforesaid respondents falsely and deceptively advertised said fur products in violation of Section 5(a) (5) of the Fur Products Labeling Act by representing, directly or by implication, through such statements as Flemington furs are of the finest quality * * * the same fine quality as you would expect to find at. the leading couturiers throughout the world. Only the price is lower because yon buy from New Jerseis largest manufacturer and distributor of finc fllTS \ that respondent.s manufacture all of the fur products marketed by them and act as their own distributor of a11 such fur products, and therefore.: purchasers of respol1dents fur products are enabled to obtain price concessions not obtainable in the usual retail channels of trade.

In truth and in fact respondents procure a substantial majority of their fur products from outside manufacturers and wholesalers flnd sen and offer for sale such products at retail prices. The t.erm distributor': is used with rcferencc to such products and is not limited to the products manufactured by respondents. Purchasers of fur products which are procured from outside manufacturers and wholesalers are not dealing directly with the manufacturer or (11stributor as advertised.

PAR. 7. The aforesaid acts and practices of respondents, as herein alleged, are in violation of the Fur Products Labeling Act. and the Rules and Regulations promulgated thereunder and constitute l1nfalr and deeeptive acts and practices in commerce under the Federal Trade Commission Act.

\y FLE nNG'lON FUR COMPAcVY ET AL. 803 800 Decision Jh. Cha"zes IV. Connell and Mr. A Tth,,,' IV alter, Jr. for the Commission.

Hespondents 7Jio se.

INITIAL DECISIO BY 1V ALTEH R. J OIIKSON , I-IEARING EXAMINER In thc complaint dated December 28, 1960, the respondents are charged with violating the provisions of the Federal Trade Commission Act Rnd the Fur Products Labeling Act and the Rules and Hegulations promulgated thereunder.

On :.Iareh 13 , 19(31 , the respondents entered into an agreement with counsel in support of the complaint for a consent order. Under the foregoing agreement, the respondents admit the jurisdictional facts alleged in the complaint. The parties agree, among other things, that the cease. and desist order there set forth may be entered without lurther notice and have the same force and effect as if entered after a full hearing and the document illc.udes R waiver by the respondents of 1111 rights to challenge or contest the validity of the order issuing in accordance there,,-ith. The agreement further recites that it is for settlement purposes only and does not constitute an :Hlmission by the respondents that thpy have violated the la. as alleged in the complaint.

The hearing examiner finds that the cont.ent of the agreement meets all of thc requirements of section ". 25 (b) of the Rules of the Commission.

The hearing examiner being of the opinion that the agreement and the proposed order provide an appropriate basis for disposition of this proceeding as to an of the parties, the agreement is hereby accepted and it is ordered t.hat the agre.ement shall not become a part of the offcial record of the. proceeding unless and until becomes a part of the decision of the Commission. The following jurisdictional findings are made and the follo\T"ing order issued. 1. R.esponclent Flemingt.on Fur Company is a corporation existing and doing business under' and by virtue of the laws of the State of New Jersey. Individual respondents Philip J. Benjamin and ,Joseph Birnbaum are offcers of said corporate respondent. Said individual respondents formulate, direct, and control the acts and practices of the corporate respondent. All respondents have their offce ancl prinejpaJ place of busine.ss at 8 Spring Street, FJemingtol1j New .Jersey. 2. TJle Federal Trnclc Commissjon has jurisdict.ion of the subject matter of this proceeding find of the respondents, ancl tlle proceeding is in rhe public interest.

\\ , 804 FEDERAL TRADE CO:vMISSIOK DECISIO Decision 58 F.

ORDER It i8 Oncl' That FJemingt.on Fur Company, a corporation, ancl its oHlcel's, and Philip .T. Benjamin and Joseph Birnbaum, individually and as offcers of sttic1 corporation, and respondents ' representat.ives, agents and employe, , directly or through any corporate or other device, in connection with the int.l'ocll1ctioll, manufacture for introduction, 01' the sale, advertising or offering for sale in commerce, or the transportation or distriblltion in commerce, of fur products or in conrwc.ion \with the sale, manufacture for s, advertising, offering for sale, transpol'l;ltion or distribution of fur products which have been made in \\"hole or in part of fur which has been shipped a.nd receive.d in commerce, as "commerce fur" and fur product" are defined in the Fur Products La.beling Act, do forth-with cease and desist from:

1. Fa.lscly or decept.i very invoieing fur products by: A. Failing to furnish to purchasers of fur products invoices showing all the information required to be disclose.d by each of the subsections of Section 5(b) (1) of the Fur Products Labeling Act. 2. Falsely or deceptively advertising fur products through the use of any advertisement, representation, public announcement or notice "\which intended to aid, promote or assist, directly or indirectly, in the sale or oiTering for sale of fur products and which: A. R.represents directly or by implication that respondents are )101eso.le or manufacturing distributors of fur products ,;"hen such is nol the fact.

B. Gses the "\ford "manufacturers" or any simulation thereof \\ ith reference to ally fur products procured from outside sources of supply and not manufactured by respondents. C. Fails to disclose the name of the country of origin of any imported furs contained in 11 fur product. DECJSIOi\T OF TIIE CO.:Uj,USSIOX ..AXD OIrDER TO File REPORT OF CO:?fPLTAXCE Pursuant to section 3.21 of the COllnnission s Rules of Pract.ice the initial decision of the heating examiner shall, on the 17th day of Iay IDGl, become the dee-ision of the Commission; and, accordingly: J t is ordered That respondents herein shan, within sixty (60) days after service upon them of this order, file with the Commission a report in \friting setting forth in detail the manner and form in "\\which they have corn plied with the order to cease and desist. KXICKERBOCKER CASE CORPORATIO ET AL. 805 805 Complaint