The John Gerber Company

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IN TH MATIR OF THE JOHN GERBER COMP A)fY CONSENT ORDER, ETC., IX REGARD TO THE ALLEGED VIOLATION OF THE FED- ERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket 0-11,8. Complaint, June 18, 1962-Decision, J'Ine 18, 1962 Consent order requiring a furrier in Memphis, Tells" to cease violating the Fur Products Labeling Act by failing to show on invoices of fur products the true animal name of the fur and the country of origin of imported fur, by advertising falsely in newspapers tlmt prices were reduced due to a special purchase .vhen the fur products concerned were the property of an independent third party operating temporarily and conducting a sales promotion on the premises under respondent's name; and by failng to keep adequate records disclosing the facts upon which price and value claims in advertising were based.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling- Act and hy virtue of the authority vested in it by said Acts, the Federal Trade Commission ha vjng reason to believe that The John Gerber Company, hereinafter referred to as respondent, has violated the provisions of said Acts and the R.ules and Regulations promulgate.d under the Fur Products Labe.ling- 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 follows:

PARGRAPH 1. Respondent The John Gerber Company is a corporation organized, existing and. doing business under and by virtue of the laws of the State of Tennessee, with its office and principal place of business located at 25 Korth Main Street, Memphis, Tenn. , THE JO T GERBER CO. 1731 1730 Complaint PAR. 2. Subsequent to the eifective date of the Fur Products Labeling Act on August 9, 1052, respondent has been and is now engaged in the introduction into COllnlerce, and in the sale, advertising, and oflering for sale, in commerce, and in the transportation and distribution, in commerce, of fur products; a.nd has sold, advertised, offered for sale, tra.nsported and distributed fur products which have been made in whole or in part of fur which had been shipped and received in conuerce, as the terms "cornmcree fur: and "fur product" are defuled in the Fur Products Laheling Act.

PAR. 3. Cerbin of saiel fur products were falsely and cJeceptively invoiced by the respondent in that they were not invoiced tS required by Section 5 (b) (1) of the Fur Products Labeling Act and the l1ules and Regulations promulgated under such Act. Among such falsely and deceptively invoiced fur products, but not limiteel thereto, were illvoices pertaining to such fur products which failed:

1. To show the true animal name of the fur contained in the fur products.

2. To show the country of origin of the impOlied fur used in the fur product.

PAR. 4. Certain of said fur products "ere falsely and deceptively advertised in violation of the Fur Products Labeling Act in that respondent caused the dissemination in commerce as "commerce " is defined in saiel Act, of certain newspaper advertisements, concerning said products, which ,vero not in accordance with the provisions of Section 5(a) of the said Act and the Hules and Regulations promulgated thereunder; and which advertisements were intendeel to aid promot.e and assist, directly or indirectly;y, in the sale and offering for sale of said fur products.

PAn. 5. Among and included in the advertisements as aforesaid, but not 1limited thereto were advertisements of respondent: which appeared in issues of The Commercial Appeal, a newspaper published in the city of iemphjs, Stat.e of Tennessee, and having a wiele circulation in said State and various other States of the United State. PAJL 6. In advertising fur products :for sale as aforesaid, respond ent falsely and deceptively advertised said fur products, in violation of Section 5 (a) (5) of the Fur Products Labeling Act and Rule 44 (a) of the said Rules and Regulations, by representing, directly or by implication, through such statements as:

If it were not for tremendous and unnsnal price concessions to Gerber s from one of the greatest fur houses in the United States, a sale like this simply couldn happen! Gerber s passes the savings on to YOU who seek the superlative in fur.

719- 603-G4- 110 1732 FEDERAL TRADE CO IISSIOX DECISIONS Decision and Order 60 F.

that respondent, a retailer, obtained price concessions from a supplier of cert.ain fur pro(lucts and as a, result of the special purchase "VltS able to offer the said fur products for sale to the purchasing public at prices reduced frolll reguhtr or usurLl prices.

The representation that prices were reduced from regular or usual price,s due to a special purchase was false, misleading and deceptive in that respondent did not motke a special purchase of the fur products offered for sale and in fact neither o nec1 nor purchased the said fur products.

The said fur products were the exclusive property of flll independent third party operating temporarily and conducting a sales promotion on the premises and under the name of respondent. PAR. 7. Respondent 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,d by subsections (a), (b), (c) and (d) of Eule 44 of the Rules ,mcl Regulations promulgated under the Fur Products Labeling Act. Hespu;ident in making such clainls and representations ffliled to rrw intain full and adequate records disclosing the facts upon which such claims and representations were based, in violation of H.ule 44:(e) of said Hules and R,egulations.

PAR. 8. The aforesa.id acts and practices of respondent, as herein alleged, are in violation of the Fur Products Labeling Act and the rules and Regulations promulgated thereunder and constitute unfair and deceptive acts and practices and unfair methods of competition in comnwrce under the Federal Trade Conunission Act. DECISION AND ORDER The Commission having heretofore determined to issue its com plaint charging the respondent named in the caption hereof with violation of the Federal Trade Commission Act and the Fur Products Labeling Act, and the respondent having been served with notice of said deter'ninaJion and \Ylth a copy of the complaint the Com mission intended to issue, together with a proposed form or order; and The responc1e,nt and counsel for the Commission having there,after executed an agreement containing a consent order, an admission by respondent of an the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing 01 said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as sct forth in such complaint, and waivers and provisions ns required by the Commission rules; and THE JOH1T GERBER CO. 1733 1730 Dccision/ nJld Order The Commiss having considered the agreement hereby accepts same, issues its complaint in the form contemplated by said agreement, makes the fonowing jurisdictional findings, and enters the following order:

1. l,respondent The John Gerber Company is a corporation organ- Ized, existing and doing business under and by virtue of the laws of the State of Tennessee, with its offce and principal place of business located at 25 North Main Street, Memphis, Tenn. 2. The Federal Trade Commission has jurisdiction of the subject matter of this procecding and of the respondent, and the proceedlllg is in the public interest.

DIilER It is ordered That respondent The Jolm Gerber Company, a Tennessee corporation, and respondenes representatives, agents and employees, directly or through any corporate or other device, in C0114 nection with the introduction into commerce, or the sale, advertising, or offering for sale in commerce of any fur product, or in connection with the sale, advertising, offering for saJe, transportation, or dis. tribution 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" are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

1. Falsely or deceptivcJy invoicing fur products hy: A. Failing to furnish invoices to purchasers of fur products showing in words and figl1es plainly Jegible all the information required to be disclosed by each of the subsections of Section 5 (b) (1) of the Fur Products Labeling Act.

2. Falsely or dcceptively advertising fur products through the use of any advertisement, representation, public announcement or notice which is intended to aid, 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 prices of fur products are reduced from regular or usual prices due to special purchases when such is not thc fact.

B. ljsrepresents in any manner the savings available to purchasers of respondent' s fur products.

3. Making claims and representations of the types covered by subsections (a), (b), (c) and (d) of Rule 44 of the Hules and Regulations promulgated under the Fur Products Labeling Act unless there are majntained by respondent full and adequate records disclosing the facts upon which such claims and representations are based. Complaint 60 F.

It is further ordered 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 this order.