Romex International, LTD., et al.

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

and form in which they have complied with this order. IN 'file :M Tlr OF HOMEX IKTERNATIONAL, LTD., ET AL.

CONSl)::T ORDER, ETC. , IX REGARD TO THE ALLEGED VIOLATION OF THE FED- ERL TRADE CO IlIlSSION AND THE WOOL PRODUCTS LABELING ACTS Docket 0-90. Complaint, .ilia?" 1962-Dcci8lon, Mar 1962 Consent order requiring associated distributors in New York City to cease labeling and invoicing as "90% reprocessed cashmere, 10% nylon, fabrics which contained a substantial quantity of other fibers, and failing to disclose on fabric labels the true generk name of the constituent fibers and the percentage thereof.

COMPLAINT Pursuant to the provisions of the Fedeml Trade COlwnission Act and the "Vool Products Labeling Act of 1939 and by virtue of the authoritv vested in it by said Acts, the Federal Trade Commission having. reason to believe that, Romex International, Ltd., a corpora- 719-G03--64-- 468 FEDERAL TRADE COMMISSION DECISIO:\S Complaint 60 F.

tion, and Bini Bino D'Italia, Ltd., a corporation, and ~lorton L. Gordon, individually and as au offcer of said corporations, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the 'W 001 Products Labeling Act of 1939, 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 follows:

PARAGRAPH 1. Respondents Romex International, Ltd., and Bini Bino D'Italia, Ltd., are corporations organized, existing and doing business under and by virtue of the laws of the State of New York with their offce and principal place of business located at 330 Fifth A venue, in the city of ew York, State of ew York. Individual respondent Morton L. Gordon is president and treasurer of both corporate respondents and formulates, directs and controls the acts, practices and policies of the corporate respondents, including those hereinafter set forth. The address and principal place of business of the individual respondent is the same as that of the corporate respondents.

PAR. 9. Subsequent to the effective date of the "'Vaal Products Labeling Act of luan and more especially since 194.8, respondents have introduced into commerce, sold, transported, distributed, delivered for shipment, and offered for sale, in commerce, as "commerce" is defined in ,said Act, \\001 products as ",yool product" is defined therein. PAR. 3. Certain of said wool products were misbranded by the respondents within tho intent and meaning of Section 4(a) (1) of the "'Vaal Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, in that they were falsely and deceptively labeled or tagged with respect to the character and amount of the constituent fibers contained therein.

Among such misbranded wool products, but not limited thereto were fabrics labeled or tagged by respondents as "90% reprocessed cashmere 10% nylon, whereas, in truth and in fact, said fabrics contained a substantial quantity of fibers other than those represented. 'R. 4. Certain of said wool products were further misbranded hy respondents in that they were not st.amped, tagged or labeled as required under the provisions of Section 4(a) (2) of the 'Wool Products Labeling Act of J Dag Rnd III t.he manner and form as prescribed by the Rules and Regulations promulgated under said Act. Among such misbrnlldecl ';\'001 products, but not limited thereto were fabrics with IRbeJs which failed: (1) to disclose the true generic ROMEX INTERNATIONAL, LTD. , ET AL. 469 467 Decision and Order names of the fibers present and (2) to disclose the percentage of such fibers.

PAn. 5. The acts aud practices of the respondents as set forth above were, and are, in violation of the 'W 001 Products Labeling Act of 1939 and the Rules and Hegulations promulgated thereunder, and constituted, and now constitute, unfair and deceptive acts and practices and unfair methods of competition in commerce, within the intent and meaning of the Federal Trade Commission Act. PAR. 6. Respondents in the course and conduct of their business as aforesaid, have made statements on invoices and shipping memo. rancla to their customers Inisrepresenting the fiber content of certain of their said products. Among such misrepresentations were statements representing fabrics to be "90% reprocessed caslunere, 10% nylon" \vhereas in truth and in fact the said fabrlcs contained substa,n6ally less reprocessed cashmere than was represented. Paint 7. The ,wts and practices set out in Paragraph Six have had and now have the t.tendency and capacity to mislead and deceive purcha,sers of said products as to the true content thereof and to cause them to misbrand products manufactured by them in which said materials are used.

PAR. 8. The acts and practices of the respondents set out in Paragraph Six were, and are, all to the prejudice and injury of the public and of respondents' competitors and constituted, and now constitute unfair and deceptive acts and practices, in commerce, within the intent and meaning of the Federal Trade Commission Act. DECISION AXD ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption here,of w"ith violation of the Federal Trade Commission Act and the Yool Products Labeling Act of 1939 , and thc respondents having been served with notice of said determination and. with a c.opy of the complaint the Commission intended to issue, together with a proposed form of order; and The respondents and counsel for t.he Commission having thereafter executed an agreement containing a consent order, an admission by respondents of all the jurisdictional facts set forth in the complaint to issuo herein, a statement t.hat the signing of saiel agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as set forth in such complaint, and "Waivers and provisions as required by the Commission rules; and 470 FEDERAL TRADE eO:\ISSIO:" DECTSIONB Decision and Order 60 .' The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agree- Inent, makes the following jurisdictional findings, and enters the following order:

1. Respondents Romex International, Ltd., and Bini Bino D' Itaha Ltd., are corporations organized, existing and doing business under and by virtue of the laws of the State of New York, with their offce and principal place of business located at 330 Fifth A venue, in the City of ew York, State of New York.

I,respondent Morton L. Gordon is an offcer of both said corporations and his address is the same as that of said corporations. 2. The Federal Trade C01ilnission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents, Romex International, Ltd., a. corporation, and its offcers, and Bini Bind D'Italia, Ltd., a corporation and its offcers, and Morton L. Gordon, individually and as an offcer of both corporations, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction into commerce, or the offering for sale, sale transportation, delivery for shipment, or distribution, in COll1l11erce of fabrics or other wool products, as ';comlnerce" and "wool product' are deiined in the VV 001 Products Labeling Act of 1939, do fortlm.ith cease and desist from 111isbranding such products by: 1. :Falsely or deceptively stamping, tagging, labeling or otherwise identifyjng such products as to the character or amount of the constituent fibers contained therein.

2. Failing to securely affx to or place on each product, a stamp, tag, label or other means of identification showing in a clear and conspicuous manner, each element of information required to be disclosed by Section 4(a) (2) of the Wool Products Labeling Act of 1939. It is jurther ordered That respondents Romex International, Ltd. a corporation, and its offcers, and Bini Bino D' Italia, Ltd., a corporation, and its offcers, and Morton L. Gordon, individually a,nel as an offcer or both corporations, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of fabrics or any other products in con1l11erce, as "C0l111nerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting the character or amount of constituent fibers contained BER TARD KRIEGER & SO , INC. , ET AL. 471 467 Complaint in such products on invoices or shipping memoranda applicable thereto or in any other manner.

It is JUTtheT ordered That the respondents herein shan, 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 a,nd form in which they have complied with this order.