Perl Pillo"W Comip Any

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IN THE ~IA TTER OF PERL PILLO"\V CO~IP ANY CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FED- ERAL TRADE COMMISSION ACT Docket 8308. Complai11t, Mar. 1961-J)eC'isioll, Sept. 1961 Consent order requiring, Houston, Tex., manufacturers to cease such practices as labeling their "Countess" pillows as "All New Material Consisting of Imported White Goose Down" when they actually contained substantial quantities of other material.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal Trade Commission having reason to believe that PeTl Pillow Company, a corporation, and Jack Perlman, 1fartin Perlman, ~faUl.jee Dubinski and Joseph Arena, individually and as officers of the said corporation, hereinafter referred to as respondents, hate violated the provisions of said 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 cha.rges in that respect follows:

PARAGRAPH 1. Respondent Perl Pillow Company is a corporation orga.nized, existing and doing business under and by virtue of the hnvs of the State of Texas, \with its office and principal place of business located at 2120 Rothwell Street, Houston, Texas, Respondents Jack Perlman, l\fartin Perlman, l\iaurice Duhinski and fJ oseph Arena are the oflicers of the corporate respondent.. Their address is the same as that of the corporate respondent. Those individuals direct and control the policies, acts and practices of the corporate respondent including the acts and practices hereinafter set forth. PAIL 2. R,respondents are now, and for more than one year last past have been, engaged in the manufacture and sale of feather and clown pillows to dealers for resale to the consuming public. Responden1 have caused and no\\" cause their said products when sold, to be transported from their place of business in the State of Texas to purchasers thereof located in other States of the United States. Respondents maintain, and at all times mentioned herein have maintained a course of trade in said feather and dmYIl products, in C0111meree, among and bet\yeen the various States of the Unite.d States. PAR. 3. In the course and conduct of their aforesa.id business respondents are now, and have been, in substantial competition in COl1l- , , PERL PILLOW CO. ET AL. 723 722 Dee iI,: i OJ! merce with other corporations and with firms, individuals and partnerships engaged in the manufacture, sale and distribution of feather and down pillows.

P AU. 4. In the course and conduct of their said business, respondents have caused labels to be affixed to certain of their pillows purporting to state and set out the kinds or types and proportions thereof, of filling material contained therein. Typical of the statements appearing on the labels of pillows designated "Countess" is the following: All New ~lnterial Consisting of Imported White Goose Down. PAR. 5. Through the use of the statements appearing on the labels affixed to said pil1mvs, respondents represent that the filling material therein is composed entirely of new down.

PAR. 6. The aforesaid representations are false, misleading and deceptive. In truth and in fact, said pillows contain substantial quantities of filling material other than down. P AH. 7. The use by respondents of the aforesaid false, misleading nd deceptive representations on the labels has had and now has the tendency and capacity to mislead .and decei,-e dealers and the purchasing public as to the content of the filling materials of their said pillows and to induce the purchase of substantial quantities of their said pillows because of such mistaken and erroneous belief. As a result thereof, substantial trade in commerce has been unfairly diverted to respondents from their competitors, and substantial injury has thereby been done to competition in commerce. PAIL 8. The aforesaid acts and practices of respondents, as herein alleged, are all to the prejudice and injury of the public and of respondents' competitors and c.onstitute unfair and deceptive acts and practices and unfair methods of competition, in commerce, within the intent and meaning of the Federal Trade Commission Act. DECISION AND ORnEn This matter having come on to be heard by the Commission upon n record consisting of the Commission s complaint charging the respondents in the proceeding with violation of the Federal Trade Commission Act and an agreement by and between respondents and counsel snpporting the complaint which agreement contains an order to cease and desist, an admission by the respondents of all the jurisdictional facts alleged in the complaint, a statement that the. signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the Jaw has been vlolate.d as aJJegecl in the complaint ~ and ,,-waivers and provisions as required by the Commission s rules, and further provides for dis- 724 FEDERAL TRADE COMl\.lISSIO~ DECISIONS Order 50 missal of the. complaint as to respondent Arena Joseph Schwartz (PlToneously described ill the com pin illt as Joseph Arena) in her eapncity as an individual respondent; and The Commission having considered the agreement and order eontained therein and being of the opinion that the agreement provides an adequate basis for an appropriate disposition of the proceeding, the agreement is hereby accepted, the follO'ving jnrisdietional findings are made, and the following Ol.der is entered: 1. Respondent Perl PinO'v Company is a corporation existing Hn(l doing business under and by virtue of the la,ys of the State of Texas y,ith its ofliee and principal place of business located H 1 2120 HoUnvell Street, in the city of I-Iouston, State of Texas. Respondents Jack Perlman, :Martin Perlman, 1\Iaurice Dubinski and Arena .Joseph SeJnvHrtz are individuals and oflicers of the. eOl'POrate respondent. Theil' address is the same as that of the. corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proc.selling is in the public intere~L OHImTI 1 t is ordered That respondents Perl Pillo,,- Company, a corporation and its oflicers, and .J aek Perlman, J\fartin Perlman, and ~lauri('e Dubinski, individually and as officers of said corporation, and Arena ose,ph Selnvartz, as an officer of sa id corpora bon, and their represpntati,- , agents, and employees, directly or through any corporate other device, in connection ,,-ith the oiIering for sale, sale 01' distribution in commerce, as "commerce.:' is defined in the Federal Trade Commission Act, of feather and down products, do fortlnvit h cease and desist from misrepresenting in any manner, or by any means directly or by implication, the identity of the kind or type of fining material contained in any such products, 01' of the kinds or types, and proportion of each, when the filling material is a mixture of more than one kind or type.

It is further ordered That the complaint be, and the same hereby , dismissed n~ to Arena .To~eph Seh,,"ariz in ))PI' capneit)' a~ an inclividllnlresponclent.

!tis fltl'thcT ordered That the respondents herein slmll within sixty (GO) days af1er ~elTice upon them of this order, file with the. Commission a report in "Titing setting forth in detail the nwnner and foll1i in ,,-hieh theyhcIH' C'ompliecl ,,-itb thisonlrro EASTLAND WOOLEN MILLS, INC., ET AL. 725 Complaint I~ ‘Tue Marrer or