Packard Mills, Inc.

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

In the Marrer or PACKARD MILLS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 8297. Complaint, Afar. 2, 1961—Decision, Sept. 12, 1961 Consent order requiring proprietors of woolen mills in Webster and Caryville, Mass., to cease violating the Wool Products Labeling Act by labeling or tagging as 75%5 1 6 1 3 4 893 1885 88 28 85.345230 Wool,5 1 6 1 3 5 994 1886 66 28 85.345230 15%5 1 6 1 3 6 1074 1887 92 28 96.255524 Nylon5 1 6 1 3 7 1181 1887 56 23 96.849022 ands 1 6 1 3 8 1252 1887 65 29 95.990021 10%5 1 6 1 3 9 1332 1887 170 25 95.975990 Cashmere”5 1 6 1 3 10 1516 1888 57 24 96.559059 ands 1 6 1 3 11 1588 1888 82 29 94.807167 “85%5 1 6 1 3 12 1686 1888 89 27 96.245071 Wool,5 1 6 1 3 13 1789 1887 64 28 96.260887 15%4 1 6 1 4 0 622 1925 1234 34 -1 5 1 6 1 4 1 622 1925 118 28 86.027855 Nylon,”5 1 6 1 4 2 761 1927 107 24 89.737396 weolen5 1 6 1 4 3 889 1928 109 24 96.331383 fabrics5 1 6 1 4 4 1019 1929 92 23 96.653618 which5 1 6 1 4 5 1133 1929 152 25 93.362007 contained5 1 6 1 4 6 1307 1930 205 29 95.814926 substantially.5 1 6 1 4 7 1534 1932 55 22 96.578232 less5 1 6 1 4 8 1609 1931 72 23 96.558792 wool5 1 6 1 4 9 1705 1931 70 23 96.665344 than5 1 6 1 4 10 1797 1935 59 18 95.326187 was4 1 6 1 5 0 620 1967 1233 35 -1 5 1 6 1 5 1 620 1967 66 25 96.348412 thus5 1 6 1 5 2 707 1968 154 29 95.359421 indicated,5 1 6 1 5 3 881 1971 56 22 96.771988 ands 1 6 1 5 4 959 1970 34 29 96.557114 by5 1 6 1 5 5 1012 1971 106 28 96.277122 failing5 1 6 1 5 6 1138 1971 28 24 96.838409 to5 1 6 1 5 7 1187 1971 74 25 96.363945 labels 1 6 1 5 8 1282 1974 109 22 96.383842 certain5 1 6 1 5 9 1413 1973 71 24 96.814598 wool5 1 6 1 5 10 1504 1973 136 29 96.544365 products5 1 6 1 5 11 1660 1979 32 17 96.902321 as5 1 6 1 5 12 1714 1972 139 29 96.477684 required.2 1 7 0 0 0 1099 2051 209 32 -1 3 1 7 1 0 0 1099 2051 209 32 -1 4 1 7 1 1 0 1099 2051 209 32 -1 5 1 7 1 1 1 1099 2051 209 32 81.889702 Complaint2 1 8 0 0 0 547 2130 1307 705 -1 3 1 8 1 0 0 547 2130 1307 589 -1 4 1 8 1 1 0 592 2130 1262 45 -1 5 1 8 1 1 1 592 2130 173 34 96.098251 Pursuant5 1 8 1 1 2 785 2136 34 28 96.098251 to5 1 8 1 1 3 839 2133 57 32 96.300468 thes 1 8 1 1 4 914 2133 192 42 96.300468 provisions5 1 8 1 1 5 1125 2135 38 31 96.529938 of5 1 8 1 1 6 1181 2136 57 31 96.752319 thes 1 8 1 1 7 1256 2135 140 32 96.656189 Federal5 1 8 1 1 8 1417 2136 112 32 96.559914 Trades 1 8 1 1 9 1548 2135 221 34 96.081657 Commissions 1 8 1 1 10 1788 2136 66 31 96.803490 Acta 1 8 1 2 0 552 2181 1301 46 -1 5 1 8 1 2 1 552 2181 66 31 95.953079 ands 1 8 1 2 2 638 2182 57 31 95.953079 thes 1 8 1 2 3 714 2183 97 32 96.208267 Wool5 1 8 1 2 4 833 2183 168 32 96.562653 Products5 1 8 1 2 5 1019 2185 167 42 96.615570 Labeling5 1 8 1 2 6 1204 2187 68 30 96.715500 Acts 1 8 1 2 7 1291 2187 37 30 96.901894 of5 1 8 1 2 8 1349 2188 89 38 93.055145 1939,5 1 8 1 2 9 1459 2187 66 31 96.077774 ands 1 8 1 2 10 1545 2187 44 40 96.077774 by5 1 8 1 2 11 1609 2187 112 31 96.779655 virtues 1 8 1 2 12 1740 2186 38 31 96.674767 of5 1 8 1 2 13 1797 2187 56 30 96.674767 thea 1 8 1 3 0 551 2232 1301 43 -1 5 1 8 1 3 1 551 2232 174 42 96.498314 authority5 1 8 1 3 2 744 2235 113 31 96.386627 vested5 1 8 1 3 3 880 2235 33 30 96.608765 in5 1 8 1 3 4 934 2235 28 31 96.863655 it5 1 8 1 3 5 980 2235 44 40 96.820854 by5 1 8 1 3 6 1045 2236 71 31 96.534111 said5 1 8 1 3 7 1137 2236 93 39 96.116669 Acts,5 1 8 1 3 8 1251 2236 55 31 96.750916 thes 1 8 1 3 9 1327 2237 141 31 96.750916 Federal5 1 8 1 3 10 1489 2236 111 33 96.615845 Trades 1 8 1 3 11 1620 2236 232 39 96.373108 Commission,4 1 8 1 4 0 549 2283 1303 44 -1 5 1 8 1 4 1 549 2283 128 42 96.204544 having5 1 8 1 4 2 695 2294 117 21 96.166550 reasons 1 8 1 4 3 828 2289 35 27 96.597374 to5 1 8 1 4 4 880 2284 127 32 96.317566 believes 1 8 1 4 5 1023 2286 77 30 96.653534 that5 1 8 1 4 6 1118 2286 156 31 95.671188 Packard5 1 8 1 4 7 1290 2286 104 40 92.928200 Mills,5 1 8 1 4 8 1411 2287 81 39 92.928200 Inc.,5 1 8 1 4 9 1510 2298 19 19 96.774094 a5 1 8 1 4 10 1546 2286 223 41 96.620369 corporation,5 1 8 1 4 11 1786 2286 66 31 96.725471 anda 1 8 1 5 0 550 2334 1300 44 -1 5 1 8 1 5 1 550 2334 114 40 93.286484 Ralph5 1 8 1 5 2 684 2334 44 31 90.971069 K.5 1 8 1 5 3 747 2334 168 32 95.222504 Hubbard5 1 8 1 5 4 935 2337 66 31 95.222504 ands 1 8 1 5 5 1020 2336 123 31 96.571693 Edwin5 1 8 1 5 6 1163 2336 36 31 61.607021 LL.5 1 8 1 5 7 1219 2337 178 39 96.267853 Hubbard,5 1 8 1 5 8 1416 2337 226 41 96.231354 individually5 1 8 1 5 9 1662 2337 65 31 96.899300 ands 1 8 1 5 10 1747 2347 37 21 93.226212 as5 1 8 1 5 11 1801 2335 49 33 92.972603 of-4 1 8 1 6 0 550 2383 1300 45 -1 5 1 8 1 6 1 550 2383 94 33 93.179840 ficers5 1 8 1 6 2 664 2385 38 31 96.754974 of5 1 8 1 6 3 725 2385 72 31 96.543800 said5 1 8 1 6 4 817 2386 226 41 96.533768 corporation,5 1 8 1 6 5 1065 2386 65 31 96.058540 ands 1 8 1 6 6 1153 2386 88 32 92.271019 Alan5 1 8 1 6 7 1261 2387 53 32 89.010735 W.5 1 8 1 6 8 1334 2388 147 39 92.289169 Manter,5 1 8 1 6 9 1502 2387 238 41 93.235504 individually,5 1 8 1 6 10 1760 2388 90 31 92.266830 here-4 1 8 1 7 0 549 2433 1303 46 -1 5 1 8 1 7 1 549 2433 129 33 91.496750 inafter5 1 8 1 7 2 701 2434 150 33 96.560760 referred5 1 8 1 7 3 875 2439 35 28 96.573540 to5 1 8 1 7 4 935 2446 36 21 96.598778 as5 1 8 1 7 5 994 2436 229 41 95.859062 respondents,5 1 8 1 7 6 1247 2437 84 32 96.356201 have5 1 8 1 7 7 1353 2437 148 32 96.794884 violated5 1 8 1 7 8 1525 2439 56 30 96.554359 thes 1 8 1 7 9 1603 2437 190 42 96.683441 provisions5 1 8 1 7 10 1814 2436 38 32 96.954376 of4 1 8 1 8 0 549 2484 1304 46 -1 5 1 8 1 8 1 549 2484 72 32 96.252022 said5 1 8 1 8 2 646 2485 94 41 96.725464 Acts,5 1 8 1 8 3 766 2486 65 31 96.604301 ands 1 8 1 8 4 857 2486 57 32 96.604301 thes 1 8 1 8 5 938 2487 102 31 96.291580 Rules5 1 8 1 8 6 1066 2487 66 31 96.213524 ands 1 8 1 8 7 1157 2487 223 40 96.075340 Regulations5 1 8 1 8 8 1404 2488 237 42 95.884018 promulgated5 1 8 1 8 9 1665 2488 108 31 96.397949 under5 1 8 1 8 10 1796 2488 57 31 96.867416 thea 1 8 1 9 0 548 2536 1302 44 -1 5 1 8 1 9 1 548 2536 97 31 95.958504 Wool5 1 8 1 9 2 670 2536 168 32 96.004387 Products5 1 8 1 9 3 859 2536 166 42 96.227722 Labeling5 1 8 1 9 4 1045 2538 77 39 96.567741 Act,5 1 8 1 9 5 1145 2538 66 31 96.309189 ands 1 8 1 9 6 1234 2538 28 31 96.834793 it5 1 8 1 9 7 1283 2538 189 42 96.404633 appearing5 1 8 1 9 8 1493 2543 36 26 96.549637 to5 1 8 1 9 9 1549 2539 58 30 96.561783 thes 1 8 1 9 10 1629 2538 221 33 96.542412 Commission4 1 8 1 10 0 548 2582 1302 47 -1 5 1 8 1 10 1 548 2582 76 35 94.839142 that5 1 8 1 10 2 640 2597 21 20 94.839142 a5 1 8 1 10 3 680 2587 204 41 94.969719 proceedings 1 8 1 10 4 901 2587 43 41 96.216476 by5 1 8 1 10 5 963 2587 28 31 96.715759 it5 1 8 1 10 6 1009 2588 34 31 96.715759 in5 1 8 1 10 7 1063 2592 130 37 96.983353 respects 1 8 1 10 8 1208 2587 135 33 96.207893 thereof5 1 8 1 10 9 1359 2589 112 31 96.546051 would5 1 8 1 10 10 1488 2588 41 32 96.546051 be5 1 8 1 10 11 1546 2589 33 31 97.000916 in5 1 8 1 10 12 1597 2589 58 31 96.955063 thes 1 8 1 10 13 1671 2589 114 40 93.195251 public5 1 8 1 10 14 1802 2588 48 31 93.120178 in-4 1 8 1 11 0 547 2637 1304 43 -1 5 1 8 1 11 1 547 2641 111 30 95.880127 terest,5 1 8 1 11 2 676 2637 123 41 96.185860 hereby5 1 8 1 11 3 819 2637 102 32 96.906685 issues5 1 8 1 11 4 940 2638 43 31 96.912209 its5 1 8 1 11 5 1000 2638 195 41 96.858711 complaint,5 1 8 1 11 6 1215 2638 128 42 96.710838 stating5 1 8 1 11 7 1360 2639 43 31 96.090363 its5 1 8 1 11 8 1422 2638 139 42 96.739464 charges5 1 8 1 11 9 1578 2639 34 32 96.876808 in5 1 8 1 11 10 1630 2639 76 32 96.984116 that5 1 8 1 11 11 1722 2642 129 38 96.508034 respect4 1 8 1 12 0 548 2688 200 31 -1 5 1 8 1 12 1 548 2698 35 21 95.547997 as5 1 8 1 12 2 599 2688 149 31 96.889015 follows:3 1 8 2 0 0 547 2742 1303 93 -1 4 1 8 2 1 0 586 2742 1262 43 -1 5 1 8 2 1 1 586 2742 209 31 23.398422 Paragraphs 1 8 2 1 2 820 2745 26 28 94.678612 1.5 1 8 2 1 3 891 2742 218 41 96.003838 Respondents 1 8 2 1 4 1121 2743 156 31 96.570595 Packard5 1 8 2 1 5 1292 2743 105 40 96.522591 Mills,5 1 8 2 1 6 1411 2743 70 32 94.028534 Inc.5 1 8 2 1 7 1494 2743 30 32 94.028534 is5 1 8 2 1 8 1537 2755 19 20 96.467247 a5 1 8 2 1 9 1570 2743 214 42 93.249107 corporations 1 8 2 1 10 1798 2755 50 20 92.534515 or-4 1 8 2 2 0 547 2793 1303 42 -1 5 1 8 2 2 1 547 2793 153 40 94.738297 ganized,5 1 8 2 2 2 717 2793 147 41 96.218636 existing5 1 8 2 2 3 880 2793 65 31 96.955231 ands 1 8 2 2 4 965 2793 105 41 96.081291 doing5 1 8 2 2 5 1085 2793 150 31 96.698044 business5 1 8 2 2 6 1252 2794 108 31 96.554642 under5 1 8 2 2 7 1375 2794 66 31 96.824211 ands 1 8 2 2 8 1457 2794 46 41 96.157219 by5 1 8 2 2 9 1519 2794 110 32 96.157219 virtues 1 8 2 2 10 1644 2795 38 31 96.952850 of5 1 8 2 2 11 1697 2795 59 31 96.823792 thes 1 8 2 2 12 1768 2795 82 31 84.796852 Jaws Complaint 59 FLTC.

of the State of Massachusetts. Said corporation has woolen mills located in Webster, Massachusetts and Caryville, Massachusetts. Individual respondents Ralph K. Hubbard and Edwin L. Hubbard are officers of the corporate respondent. Individual respondent Alan W. Manter is the resident manager of the Caryville mill. Said individual respondents formulate, direct and control the acts, practices and policies of said corporate respondent, including the acts and practices hereinafter referred to. The business address of individual respondents Ralph K. Hubbard and Edwin L. Hubbard is the same as the corporate respondent, Webster, Massachusetts. The business address of individual respondent Alan W. Manter is Packard Mills, Inc., Caryville, Massachusetts.

Par. 2. Subsequent to the effective date of the Wool Products Labeling Act of 1989, and more specifically since January 1959, respondents have manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment, and offered for sale in commerce, as “commerce” is defined in said Act, wool products, as “wool products” are defined therein. Par. 3. Certain of said wool products were misbranded by respondents within the intent and meaning of Section 4(a) (1) of said Wool Products Labeling Act and the Rules and Regulations promulgated thereunder in that they were falsely and deceptively labeiect or tagged with respect to the character and amount of the constituent fibers contained therein.

Among suc! misbranded wool products were woolen fabrics labeled or tagged by respondents as— 75% Wool, 15% Nylon and 10% Cashmere 85% Wool, 15% Nylon whereas in truth and in fact said products contained substantially less wool than was indicated by the foregoing Jabels or tags affixed thereto. , Par. 4. Certain of said wool products were further misbranded by 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 prescribed by the Rules and Regulations promulgated thereunder.

Par. 5. Respondents, in the course and conduct of their business, as aforesaid, were and are in substantial competition in commerce with corporations, firms and individuals likewise engaged in the manufacture and sale of woolen products, including woolen fabric. Par. 6. The aforesaid acts and practices of the respondents were and are in violation of the Wool Products Labeling Act of 1989 and the Rules and Regulations promulgated thereunder, and constituted PACKARD MILLS, INC., ET AL. 461 459 Decision and now constitute, unfair methods of competition and unfair and deceptive acts and practices, in commerce, within the intent and meaning of the Federal Trade Commission Act.

Mr. Michael P. Hughes for the Commission. Bingham, Dana & Gould, by Mr. Joseph Ford, Boston, Mass., for respondents.

Intriat Decision spy Raymonp J. Lyncu, Heartna Examiner | The complaint in this proceeding, issued March 2, 1961, charges the above-named respondents with violation of the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act and the Rules and Regulations issued thereunder. On June 20, 1961, there was submitted to the undersigned hearing examiner an agreement between respondents and counsel supporting the complaint providing for the entry of 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 further notice and have the same force and effect as if entered after a full hearing and the document includes a waiver by the respondents of all rights to challenge or contest the validity of the order issuing in accordance therewith. The agreement further recites that it is for settlement purposes only and does not constitute an admission by the respondents that they have violated the law as alleged in the complaint, and that the complaint may be used in construing the terms of the order.

The hearing examiner finds that the content of the agreement meets all of the requirements of Section 3.25(b) of the Rules of the Commission.

The hearing examiner having considered the agreement and proposed order, and being of the opinion that they provide an appropriate basis for settlement and disposition of this proceeding, the agreement is hereby accepted, and it is ordered that said agreement shall not become a part of the official record unless and until it becomes a part of the decision of the Commission. The following jurisdictional findings are made and the following order issued. 1. Respondent Packard Mills, Inc. is a corporation existing and doing business under and by virtue of the laws of the State of Massachusetts, with its office and place of business located in Webster, Massachusetts.

Individual respondents Ralph K. Hubbard and Edwin L. Hubbard are officers of said corporate respondent. Individual respondent, Alen W. Manter (named in the complaint as Alan W. Manter) is the Decision 59 I.T.C.

resident manager of the Caryville mill. The individual respondents control, direct and formulate the acts and practices of said corporate respondent. The address of the individual respondents Ralph K. Hubbard and Edwin L. Hubbard is the same as that of the corporate respondent. The address of individual respondent Allen W. Manter is Packard Mills, Inc., Caryville, Massachusetts. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER lt is ordered, That respondent Packard Mills, Inc., a corporation, and its officers, and Ralph K. Hubbard and Edwin L. Hubbard, individually and as officers of said corporation, and Allen W. Manter (named in the complaint as Alan W. Manter), individually, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction or manufacture for introduction into commerce, or the offering for sale, sale, transportation or distribution, in commerce, as “commerce” is defined in the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, of woolen fabrics 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 identifying such products as to the character or amount of the constituent fibers included therein.

2. Failing to affix labels to such products showing such elements of information required to be disclosed bv Section 4(a)(2) of the Wool Products Labeling Act of 1939.

DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE This matter having come on to be heard by the Commission upon its review of the initial decision filed by the hearing examimer on July 20, 1961, and the Commission having determined that said initial decision is adequate and appropriate in all respects te dispose of this proceeding:

/t +s ordered. That the aforesaid initial decision be, and it hereby is, adopted as the decision of the Commission. It is further ordered. That. the respondents, Packard Mulls, Inc., 2 corporation, and Ralph K. Hubbard and Edwin L. Hubbard, individually and as officers of said corporation, and Allen W. Manter (named in the complaint as Alan W. Manter), individually, shall, BAKER MERCHANDISING CORP. ET AL. 463 459 Complaint 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.