Korricks' Inc.

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

IN THE ~iA ITER OF KORRICE:S' , INC., ET AL.

CONSENT Order, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket C-33. Com.plai-nt, Nov. 30, 1961-Dec-ision, Nov. 30, 1961 Consent order requiring furriers in Phoenix, Ariz. , to cease violating the Fur Products Labeling Act by failing to show, on invoices and in advertising, the true names of animals producing the fur in fur products; failing, on invoices, to show when fur was dyed and to disclose the country of origin of imported furs; advertising prices as reduced without giving the time of the compared higher prices; and failing to keep adequate records as a -basis for price and value claims.

CO~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 Korricks" Inc., a corporation, and Abraham I. Korrick, individually and as an officer of said corporation, hereinafter referred to as respondents, have violated the provisions f-aid Acts and the. H.ules and Hegnlations promulgated under the Fur Products Labeling Act, and it appearing to the Commission that a proce.e.ding by it in respect thereof would be in the public interest hereby issues its complaint st:iting its charges in that respec.t. as follows:

PARAGRAPH 1. Korricks:' Inc. is a corporation, organized, existing and doing business under and by virtue of the. la. ws of the State of Arizona with its office and principal place of business located at North First and East ",Vashington Streets, Phoenix, Arizona. Abraham I. Korrick is vice president and treasurer of the said corporate respondent. and formulates, controls and directs the acts practices and policies of the said corporate respondent. His office and principal place of business is the same as that. of the said corporate respondent.

P;\R. 2. Subsequent t~) the e.:tTeetiye date of the Fur Products Labeling A.ct on ~\ ngllst 0, 1952. respondents acting in cooperation flnd coniunC'tion with Pacific Const Fur Company, a corporation, and Yenus Furs. a eorpol':H ion. hn ve been and are now engaged in the introduction into commerce and in the. sale, advertising, and offering for sale~ in commerce~ and in the transportation and distribution jn commerce' of fur products; and have. sold. advertised, offered for sale, transport-ed and distributed fnr products which hate been RORRICKS' , INC. , ET AL. 1217 1216 Complaint made in whole or in part 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. Certain of said products were falsely and deceptively invoiced by respondents 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 limited thereto, were invoices pertaining to such fur products which failed:

1. To show the true animal I name of the fur used in the fur product. 2. To disclose that the fur contained in the fur products was bleached, dyed, or otherwise artificially colored when such was the fact.

3. To shmv the country of origin of the imported furs used in the fur product.

PAR. 4. Certain of sa,id fur products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act in that they were not invoiced in aecordanee with the Rules and Regulations promulgated thereunder in that. information required under Section 5 (b) (1) of the Fur Proc1uc.ts Labeling Act and the Rules and Regulations promulgated thereunder was set forth in abbreviated form in violation of Rule 4 of said Rules and Regulations. PAR. 5. Certain of said fur products were falsely and deceptively advertised in violation of the Fur Products Labeling Act in that respondents 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 ofiering for sale of said fur products. PAR. 6. Among and included in the advertisements as aforesaid rmt not limited thereto~ were advertisements of respondents which appeared in issues of the. Arizona Republic., a newspaper published in the City of Phoenix~ State of Arizona~ and having a widecirculation in said State and various other States of the United States. By means of said advertisements and other-rs of similar import and meaning not specifically referred to herein respondents falsely and deceptively advertised fur products in that said advertisements: (a) Fa.filed to disclose the name or names of the wnimal or animals that produced the fur eontaine.d in the fur product as set forth in the 693-490--64---- Decision 59 F.

Fur Products Name Guide in violation of Section 5 (a) (1) of the Fur Products Labeling Act.

(b) Represented prices of fur products as having been reduced from previous higher prices without giving the time of such compared higher prices in violation of Rule 44 (b) of said Rules and Regulations.

PAR. 7. Respondents in advertising fur products for sale as aforesaid, made claims and representations respecting prices and values of fur products. Said representations were of the types covered subsections (a), (b), (c) and (d) of Rule 44 of the R.ules and Regulations promulgated under the Fur Products Labeling Act. Respondents in making such claims and representations failed to maintain full and adequate records disclosing the facts upon which such claims and representations were based in violation of Rule 44 (e) said Rules and R,egulations.

PAn. S. The aforesaid acts and practices of respondents, as herein alleged, are in violation of the Fur Products Labe.ling Act and the Rules a11c1 Regulations promu1gatecl thereunder and constitute unfair and deceptive acts and practices in commerce lll1der the Federal Trade Commission Act.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act and the Fur Products Labeling Act, and the respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondents and counsel for the Commission having thereafter exe,cuted an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth 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 law has been violated . as set forth in the complaint, and waivers and provisions as required by the Commission rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent J(on~icks\ Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State KORRICKS' , INC. , ET AL. 1219 1216 Order of Arizona with its office and principal place of business located at North First and East "\Vashington Streets, Phoenix, Arizona. Respondent Abraham 1. I\::orrick is vice president and treasurer of said corporation and his address is the same as that of said corporation.

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 1 t is ordered That Korricks, Inc., a corporation, and its officers and Abraham I. I\::orrick, individually and as an officer of said corporation and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction into commerce, or the saJe, advertising, or offering for saJe in commerce, or the transpOli.ion or distribution in commerce of fur products, or in connection with the saJe, advertising, offering for sale, transportation, or distribution of fur products which are made in whole or in part. of fur which has been shipped and received in com- , as "commerce, "fur" and "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from: 1. Falsely or deceptively invoicing fur products by A. Failing to furnish to purchasers of fur products an invoice showing all the information required to be disclosed by e~ch of the subsections of Section 5 (b) (1) of the Fur Products Labeling Act. B. Setting forth information required under Section 5(b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form.

2. Falsely or deceptively advertising fur products through the use of any ~dvert.isement, representation, public announcement or notice which is intended to aid, promote or ~ssist, directly or indirectly, in the sale, or offering for sale of fur products, ~nd which: A. Fails to disclose the name or names of the animal or animals producing the fur or furs contained in the fur product, as set forth in the Fur Products Name Guide, and as prescribed under the Rules and Regulations.

B. Uses previous higher pric.es as comparatives without giving the time of such higher compared prices.

3. l\Inking claims andl'eprese.nt.ations of the types covered by subsections (a), (b), (c),and (cl) of Rl1le.44 of the. Rules and Re.gubtions promulgated under the, Flu' Products Labeling Act unless there are maintained by respondents full and adequate records disclosing the facts upon yrhich Sllch claims and representations are based. &..

Complain t 59 F.

1 t .is furthe1' onle,' That the respondents herein shall, within sixty (60) days after service upon thenl of this order, file with the Commission a report in "Titing setting forth in detail the manner and form in which t.hey have complied with this order.