Winkelman Bros Apparel, Inc.

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IN THE ~latter OF ,VINI(EL~IAN BROS. APPAREL, INC.

COXSE~T ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\Il\IISSION AND THE FUR PRODUCTS LABELING ACTS Docket 8439. Complaint, June 1961-Dccision, Sept. 1961 Consent order requiring a Detroit furrier to cease violating the Fur Products Labeling Act by failing, on labels and invoices and in newspaper advertising, to show the true animal name of the fur in a fur product and to disclose when fur was dyed; failing, in labeling and advertising, to disclose the country of origin of imported furs; failing to shmv a (lUalified name or registered identification number on labels; and failing in other respects to comply with labeling and invoicing requirements.

COi\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 ,Yinkelman Bros. Appnrel, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said Acts and the Rules and Regulations 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 foJJo1\s:

PARAGRAPH 1. Respondent ,Vinkelman Bros. Apparel, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of :Michigan with its office and principal place of business located at 25 Parsons Street, Detroit, :Mich. PAR. 2. Subsequent to the effective elate of the Fur Products Labeling on August 9 , 1952, respondent hns been and is now engaged in the introduction into commerce and in the sale, advertising, nnd ofl'eTing for sale in commerce, and in the transportation and distribution jn commerce of fur products; and has sold, advertised, oiTered for sale, tr~nspoI'ted and distributed fur products which have been made in whole or in part of fur ,rhich had been shipped and received in commerce, as the terms "commerce fur and "1'ur product" are de. fined in the Fur Products Labeling Act.

PAR. 3. Certn1n of said fur products were misbrnnded in that they were not labeled as reqniredl1nc1er the provision~ of Section 4 (2) the Fur Products Labeling ~\.ct and in the. manner and form prescribed by the Rnles and Regulations promulgated thereunder. 574 FEDERAL TRADE COMMISSION DECISIONS. Complaint 59 F.

Among such misbranded fur products, but not limited thereto, ,were fur products with labels which failed:

1. To show the true animal name of the fur used in the fur product. 2. To disclose that the fur contained in the fur products was dyed. 3. To show a qualified name or registered identification number. 4. To show the country of origin of imported furs used in the fur product.

PAR. 4. Certain of said fur products were misbranded in that the respondent, on labels attached thereto, set forth the nam.e of an animal other than the name of the animal that produced the fur, in violation of Section 4(3) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder.

PAR. 5. Certain of said fur products were 11lisbranded in violation of the Fur Products Labeling Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects:

(a) Labels affixed to fur products did not comply with the minimum size requirements of one and three-quarter inches by two and inches, in violation of Rule 27 of said Rules andthree-quarterRegulations. (b) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and regulations promulgated thereunder was mingled with non-required information, in violation of Rule 29 (a) of said Rules and Regulations.

(c) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and R.egulations promulgated thereunder was set forth in handwriting on labels, in violation of R.ule 29 (b) of said Rules and Regulations.

(d) Information required lUlder Secton 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was not set forth separately on labels with respect to each section of fur products composed of two or more sections containing different animal furs, in violation of Rule 36 of said Rules and Regulations. (e) Requited item numbers were not set forth on labels, in violation of Rule 40 of said Rules and Regulations.

PAR. 6. 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 Products Labeling Act, and in the manner and form prescribed by the Rules and Regulations promulgated thereunder.

Among such falsely and deceptively invoiced fur products, but not 1limited thereto, were invoices pertaining to such fur products which failed :

WINKELMAN BROS. APPAREL, INC. 51.5 573 Complaint 1. To show the true animal name of the fur used in the fur product. 2. To disclose that the fur contained in the fur products was dyed when such was the fact.

PAR. 7. Certain of said fur products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act in that they were not invoiced in accordance with the Rules and Regulations promulgated thereunder in that information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was set forth in abbreviated fonn in violation of Rule 4 of said Rules and Regulations. PAR. 8. Certain of said fur products were falsely and deceptively advertised in violation of the Fur Products LabeEng Act in that respondent caused the dissemination in commerce, as "commerce" is defined in said Act, of certain newspaper advertisements, concerning said products, which were not in accordance with the provisions of Section 5 (a) of the said Act and the Rules and Regulations promulgated thereunder; and which advertisements were intended to aid, promote and assist, directly or indirectly, in the sale and offering for sale of said fur products.

PAR. 9. Among and included in the advertisements as aforesaid, but not limited thereto, were advertisements of respondent which appeaTed in issues af the Detroit News, a newspaper pubEshed in the City of Detroit, State of Michigan, and having a wide circulation in said State and various other states of the United States. By means of said advertisements, and others of similar import and meaning not specifically referred to herein, respondent falsely and deceptively advertised fur products in that said advertisements: (a) Failed to disclose the name or names of the animal or animals that produced the fnr contained in the fur product as set forth in the Fur Products Name Guide, in violation of Section 5(a) (1) of the Fur Products LabeEng Act.

(b) Failed to disclose that fur products contained or were composed of bleached, dyed 0.1' otherwise n,rtific.iaJJy colored fur, when such was the fact, in violation of Section 5 (a) (3) of the Fur Products Labeling Act.

(c) Failed to disclose the name of the country of origin of the imported furs c.contained in the fur products, in violation of Section 5 ea) (6) of the Fur Products Labeling Act.

PAIL 10. The aforesaid acts and practices of respondent, as herein a.alleged, are in violation of the I~ ur Products Labeling Act and the Rules and Regulations promulgated thereunder and constitute unfair imd dec.eptiye acts and practic.es in commerce under the Federal Trade Commission Act.

&:

.order 59 F.

1111' . Robert W. Lo1.lJtkian for the Commission. Butzel, Levin., W~ nston ltint Detroit, :Mich., for respondent. INITIAL DECISION BY "\V ILLIAl\f L. P ACR, I-IEARING EXAl\HXER The complaint in this 111atter charges the respondent ,,'i1.h certain violations of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder, a.nc1 the Federal Trade Commission Act. An agreement. has now been entered into by respondent and counsel supporting the complaint which prm~icies, mnong other things that respondent admits all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and agreement.; that the inclusion of findings of fact and conc.lusions of law in the decision disposing of this matter is waived, together with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in disposition of the proceeding, such order to have the same force and effect as if entered after a full hearing, respondent specificady waiving any and all rights to challenge or contest the validity of such order; that the order may be altered, modified, or set. aside in the manner provided for other orders of the Commission; that the complaint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint.

The hearing examiner ha villg considered the agreement and proposed order and being of the opinion that they provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and the foJJO\ving order issued:

1. Respondent "\Yinkelman Bros. Apparel, Inc., is a :Miehignn eorporation with its oflice and principal place of business located at. 25 Parsons Street, Detroit, :l\iichigan. 2. The Federal Trade Commission has jurisdiction of the. subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is onlered That "\Yinkelman Brothers Apparel, Inc., a corporation, and its ofiicers and respondents representatives, agents and employees, directly or through any corporate or other de,ice, in connection "ith the introduction into commerce, or the sale, advertising, or oflering for sale in commerce. , or the. transportation or distribution in , WINKELMAN BROS. APPAREL, INC. 577 573 Order commerce of fur products, or in connection with the sale, advertising, offering for sale, transportation, or distribution of fur products which are made in "hole 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 fortln,ith cease and desist from:

1. i\lisbrrmding fur products by:

A. Failing to affix labels to fur products shmying in words and figures plainly legible all of the information required to be disclosed by each of the subsections of Section 4 (2) of the Fur Products Labeling Act.

B. Setting forth on labels affixed to fur products the name or names of any animal.1 or animals other than the name or names provided for in Section 4(2) (A) of the Fur Products Labeling Act. C. Setting forth on labels affixed to fur products: 1. Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules nnd Regulations promulgated thereunder mingled with non-required information.

2. Information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in hand1\Triting.

D. Affixing to fur products labels that do not comply with the minimum size requirements of one nnd three-quarter inches by tlYO nnd three-quarter inches.

E. 11 iIing to set forth separately on hbels nfl1xec1 to fur products composed of two or more, sections containing c1ifI'eTent animal furs the, information required under Section 4 (2) of the Fur Products Labeling Act. and the Rules nnd Regubtions promulgated thereunder Iyith respect. to the fur comprising each section, F. Failing to set forth the item number-r or mark assigned to a fur prodllet.

2. Falsely or deceptively invoicing fur products by: A. Failing to furnish invoices to purchasers of fur products showing all the infornwtion required to be disclosed by each of the subsections of Section 5(b) (1) of the. Fur Products Labeling Act. B. Setting forth information required under Section 5 (b) (1) oJ the Fur Products Labeling Act. and the Rules nnel Hegnlations promulgated thereunder in nbbre.viated form, 3. Falsely or deceptively advertising fur products through the n::,e of nny acherbsement, representation, public announcement or notice which is intended to aid, promote or assist, directly or indirect))", in the sale or offering for sale of fnr products and "\which: A. Fails to disclose:

(1) The name 01' names of the. animal or anirnnls producing the 693-490--64---- Complaint 59 F.

fur or furs contained in the fur product, as set forth in the Fur Products Name Guide and as prescribed under the Rules nnd Regulations. (2) That the fur product contains or is composed of bleached, dyed or otherwise artificially colored fur, when such is the fact. (3) The name of the country of origin of any imported furs contained in a fur product.

DECISION OF Tl-IE CO:\Il\lission 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 21st day of Septe.mber 1961 , become the decision of the Commission; and accordingly:

1 t is o1'dered That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist.