I. J. Fox, Inc.

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

IN THE JlfATT OF I. J. FOX, INC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO Tile ALLEGED VIOLATION OF THE Flm- ERA!J TRADE COJ\D..SSION A: 'm THE FUR PRODTICTS LABELING ACTS Docket 0-78. Complaint, Feu. 12, 1962-Decision, Feb. , 1962 Consent order requiring Boston furriers to cease violating the Fur Products Labeling- Act by failng tosho,'. on invoices the true animal name of fur used In fur products, when such fur was artificially colored, and the country of -origin of imported fllI'S , and failng to comply in other respects with invoicing requirements; by advertising in newspapers which represented prices of fur products as reduced from usual prices which were in fact fictitious, and .as " % to Jf off and even more" when such was not true; and by making price and Talue claims without maintaining adequate records as a basis therefor.

COMl'LAIKT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act and by virtue of thc authority vested in it by said Acts, the Itedcra.l Trade COlllll1ission. hfl;ving reason to believe that 1. J. Fox, Inc., a corporation, and Alfred H. Lilienthal individually and as an offcer of said corporation, hereinafter referred to as respondents, have violated the provisions of sa,id Acts and the Rules and Regulations promulgated under the Fur Products Labeling Act and it appearing to the Commission that a proceeding by it respect thereof would be in the public :interest, hereby issues its complaint stating its clucrges in that respect as follows: P.AR\Q10\PH 1. 1. J". Fox, Inc., is a corporation organized, existing and doing business under and by virtue of tJ1e Jaws of the State of :\Iass;lchusetts with its offce and principal place of business located at 411 "Washington Street, Boston, M;lss.

Alfred H. Lilienthal is president of the said corpomte respondent and controls, directs and formulates the acts, practices and policies of the said corporate respondent. His offce and principal place of business is the salne as that of the said corporate respondent. PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9, 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, advertising, and offering for sale, in commerce, and in the transportation and distribution, in commerce, of fur products; and have manufactured for sale, sold 1. J. FOX, mc., ET AL. 259 25S Complaint advertised, offered for sale, transported and distributed fur products which have been 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 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, and the Rules and Regulations promulgated Dneler such Act. 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 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 show the country of origin of the import,ed furs used in the flu products.

PAR. 4. Certain of said fur products were falsely and deceptively invoiced in violation of the Fur Products Labeling A.ct 1n that they were not invoiced in accordance with the Rules and Regulations prolTIulgat.ed thGreuncler in the follmving respects: (a) Information required under Section 5(b) (1) of the Fur Products La.beling Act and the Rules and Regulations promulgated therelUleler vms set forth in abbreviated form, in violation of Rule 4 of said Rules and Hegulations.

(b) The term "assembled" was used to c1escr.ibe fur products C01Ilposed of pieces in lieu of the required terms, in violation of Rule 20 (d) 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 t.he dissemination in conunerce, 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(,,) of the said Act and the Rules and Regulations promulgated thereUl1c1cr; and which advertise.ments were intended to aid promote and assist, directly or indirectly, in the sale and offering for sale of said fur products.

PAR. 6. Among and included in the ac1vcrtise-1lents as aforesaid, but not limited thereto, were advertisen1ents of respondents, which appeared in issues of the Boston I-Ierald, Boston AmericaJl and Boston Traveler, newspapers published in the city of Boston, State of Mas- 260 FEDERAL TRADE CO::MISSION DECISIOKS Decision and Order 60 F.

sachusett.s, and having a wide circulation in said Stat.e and various other States of the United States.

By lneans of said advertisements and others of similar import and mecHling, not specificCtlly referred to herein, respondents falsely and dece.ptively ac1ve.rtised fur products in that said advertisements: (a) Represented prices of fur products as lmving been reduced from regular or usual prices where the so-called regular or usual prices wero in Jact fictitious in that they ,were liot the prices at which said 11e1'elmndise 'ivas usually sold by respondents in the recent regula.r course of business, in yiolation of Section ,j (a) (5) of the Fur Products Labeling Act and R.u1e 44(a) of saicl R.nles and Heglliations. (b) Represented through percentage savings claims such as "Save 113 to Vz off and even nlore" that prices of fur products were reduced in direct proport-on to the percentage of srl,vings stated when such was not the fact, in yiolation of Section 5(a) (5) of the Fur Products Labeling Act.

PAR 7. Hesponclents in ach-ertising fur products for sale as aforesa.id, made claims and representations respecting prices and values of fur products. Said representations were on the types covered by subsections (a), (b), (c), and (d) of Rule 44 of the Rules and Regulations promulgated under the Fur Products Labeling Act. Respondents in lnaking such claims anci representations failed to 11laintain fun and adequate records disclosing the facts upon which such claims and representations "\were based in violation of Hule 4-4(e) of said H,ules and Regulations.

PAIL 8. The aforesaid acts and practices of respondents, as herein alleged, are in violation of the Fur Products Labeling Act and the Rules and Hegulations promulgated thereunder and constitute unfair and c1ec( pti\Te acts and practices and unfair methods of competition in commerce under' the Feclc.ral Tra,de Comnlission Act. DECISION AND ORDER The Conm1isslon ha ving heretofore deteTlnined to issue its complahlt 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 Ivith notice of said determination and \with a copy of the complaint the C011lnission intended to issue, together with a proposed fonll of order; and The respondents and counsel for the Con1Jnission having thereafter executed an agree,ment containing a. consent order, an admission by the respondents of an the jurisdictional facts set forth in the complaint, a. statement that the signing of said agreement is for settlement , 1. ,J.FOX , INC. , ET AL. 261 258 Decision and Order purposes only and does not constitute an admission by respondents that the lalv ha,s been violated as set forth in the complaint, and Ivaivers and provisions as required by the Commission s rules; and The Commission, having considered the agreement, hereby accepts same" issues its complaint in the form conte.nplate,l by said agree,ment. makes the following jurisdictional findings, and enters the following order:

1. H.respondent 1. J. Fox, Inc., is a. corporation organized, existing and doing business lplc1e,r and by virtue of the laws of the State of :Massachusetts with its offce fmd principal place of business located at 411 IVashington Street, Boston, '\lass.

Respondent Alfred H. Lilienthal is president of the said corporate respondent and his offce and principal place of business is the same as that of the said corporate respondent.

2. The Federal Trade Comulission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

QIWER It is rdered That respondents 1. J. Fox, Inc., a corporation, a.nd its offcers, and Alfred H. Lilienthal, individually ,md as an offcer of said corporation, 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 sale, advertising or offering for sale in commerce, or the transportation or distribution in commerce, of any fur product; or in c01l1ection with the manufacture for sale, sale, advertising, offering for sale, transportation or distribution, of any fur product which is made in whole or in part of fur which has been shipped and received in commerce, as "commerce fur ' and "fur product" arc 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 invoices to purchasers of fur products showing in words and figures plainly legible an the information 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.r Section 5(b). (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form.

C. Setting forth the term " assembled" or any term of like import as part of the information required under Section 5(b) (1) of the Fur Products Labeling Act and the Rules ,md Reguhttions promulgated 719-603--64-- 262 FEDERAL TRADE COMMISSION DECIS.ONS Syllabus 60 F.

thereunder to describe fur products composed of any of the pieces or parts specified in Rule 20 of said Rules and Regulations. 2. Falsely 01' deceptively advertising fur products through the use of any advertisement, representation, public annOlilcement or notice which is intended to aiel, promote or assist, directly or indirectly, in the sale, or offering for sale of fur products, and which: A. Represents, directly or by implication, that the regular or usual price of any fur product is any amount which is in excess of the price at which respondents have usually and customarily sold such products in the recent regular course of business.

B. Represents directly or by implication through percentage sa, ings claims that the prices of flu' products arc reduced in direct proportion to the percentage of savings stated when such is not the fact. 3. )raking claims and representations of the types covered by subsections (a), (b), (c),and (d) of Rule 44 of the Regulations promulgated under the Fur Products Labeling Act unless there are 1l1aintained by respondents full and adcquate rccords disclosing the facts upon which such claims ancll'epl'csentations are based. It is f1lrtheT o1'leged That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in dcu1il the manner and form in which they have complied with this order.