Giant Plastics Corporation

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IN Tile l\iatter OF GIANT PLASTICS CORPORATION ET AL.

CONSE T ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLA'rION OF THE FEDERAL made CO::fl\ISSION ACT Docket 0-188. Complaint, July 20, 1962-Decision, July 20 , 1962 Consent order requiring Bronx, distributors of toys, novelties, and jewelry, much of it imported from Hong Kong and Japan, to jobbers and retailers to cease selling such merchandise so packaged--commonly on a printed cardboard mount secured by clear plastic-like material-that any identification of foreign origin was not visible except by detl'oying the so-called "bubble pack" ; to cease representing such foreign-made articles falsely as of domestic origin by their practice of stating on some of the packages "MADE " and on all of them "GIANT PLASTICS CORP. , KEW YORK, N. and requiring them to clearly and conspicuously disclose the country of origin on such display or point of sale material. COMPLAINT Pursuant to the provisions of t.he Federal Trade Commission Act and by virtue of the authority vested in it by said Act, tbe Fedem! Trade Commission, having reason to believe that Giant Plastics Corporation, a corporate.ion, and :Herbert .J. Hosenberg, H tro1d Rosenberg, and Celia Rosenberg, individna1Jy and as offcers of saiel corporation hereinafter re.ferred to as respolH1ents, have violated the provisions of saiel Act, and it a.appearing to the Commission that n proceeding by it in respect thereof ",yould be in the public interest, h rehy issues its complaint stating its ('hn.rgps in th:tt. respect as foJ1ows: PARAGRAFH 1. Respondent Giant l)lastics Corporation is a corporation organized, existing: and doing business lmdcr and by virtue of tho Jaws of the State of New York, "ith its principal office and place of business located at 3876 Park Avenue Bronx, N. Respondents Herbert .J. Rosenberg, Harold liosenberg, and Ce1ia Rosenbcrg ate individuals and offcers of t.he corporate respondent. :

180 FEDERAL TRADE COM."lISSIOX DECISIO:'S Complaint 61 F.

They formulate, direct and control the acts and practices of the corporate respondent, including the acts and practices hereinafter set Torth. Their address is the same as that of the corporate respondent. PAR. 2. Respondents are now, and for some tjme last past have been engaged in the offering for sale, sale and distribution OT children toys, novelties and jewelry to distributors and jobbers and to retailers Tor resale to the pubhe.

PAR. 3. In the course and conduct of their business respondent.s nmv cause, and for some time last past have caused their said products when solel, to be shipped from their place of business in the State of New York to purchasers thereof located in various other states of the United States, and maintain, and at all times mentioned herein have maintained, a substantial course of trade in said products in commerce as "commerce" is defined in ,the Federal Tra.de Commission Act. PAR. 4. A substantial portion of respondents' toys, novelties and jewelry is imported from Hong Kong and Japan. Prior to distribution, the respondents cause a.n said imported articles, in some insta,needs mingled with similar products of domestic origin, to be packed in retail display packages. Such packages consist of an article or group of articles on a print.ed ca.rdboard mount secured by a tight form-fit.ting clear plastic bubble or other clear plastic- like InateriaJ. At no place on the packaging, cOlltainel\ or cards is the fact disclose'(l that respondents' products ate imported from I-Iong Kong or Japan. On ,some of the said paekages appe lts the statmnent J\L' DE IK A" AJl of the pacbges contain the statement "GIANT PLAS- TICS CORP., NKW YOIlE:, N. Obscurely printed on each item within the packaging in small and virtually indistinguishable letters appeaxs the word "I-Iong I\:ong:: or "Japan, as the case Jnay be. most inst tnces. resporHlents cause :mid merclwndise to be package,d so that a.ny identification of origin thereof is not visible prior to purchase except b,\. damaging or destroying the so-called ':bubble pack:: or ot her plastic-like pfLckage and closely eXfUnining the eon tents thereof. ft result thereof the purchasing public is not informed of the country of origin of said imported mercl1anc1ise prior to purchase. TJ18 use of t.he aforesaid quoted ,words, stateme.nts and representations oJ origin flppf'" lring on respondents' pac.1wging J1erein (1cscribec1 tends to lead the public to believe that the said Ine.rc11ftndise is of domestic origin. \TI . 5. In the flbsence of an ac1equate (l13clo:"lire that D. proc1ucl including ('hl1(11('n 8 t.oys, novelties and jCITelry, is of foreign origin, the public believes f1lcl understands that it is of domestic origin, a fflct of "hich the Commission takec; offcial notice. As to the aforesaid artie1es of merchandise, a substa,ntial portion of the purchasing public has a preference for said articles ,which are or GIANT PLASTICS CORP. ET AL. 181 179 Decision and Order domestic origin, of which fact the Commission also takes offcial notice. Respondents' failure clearly and conspicuously to disclose the country of origin of said articles of merchandise is, therefore, to the prejudice of the purchasing public.

PAR. 6. Respondents, in the course and conduct of their business, are in substantial compet,ition, in commerce, with corporations, firms and individuals engaged in the sale of products of the same kind and nature as those sold by respondents.

PAR. 7. The use by the respondents of the aforesaid false, misleading and deceptive statements, representations and practices has had and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said products are of domestic origin and that said statements and representations were and are true, and to induce a substantial portion of the purchasing public, because of said erroneous and mistaken belief to purchase said products.

PAR. 8. The aforesaid acts and pmctices of the respondents, as herein alleged, were, and are, al1 to the prejudice and injury of the public and of respondents competitors and constituted, and now constitute, unfair methods of competition in conuerce and unfair and deceptive acts and practices in commerce in violation or Section 5 (a) (1) of the Federal Trade Commission Act.

DECISION AXD ORDl'::

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 respondents having been served with notice or said determination and with a copy or the complaint the Commission intended to issue, together with a proposed form of order; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondents of al1 the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for settement purposes only and does not constitute an admission by respondents that the Jaw has been violated as set forth in such complaint and waivers 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 contemplated by said agreement makes the following jurisdict.ional findings, and enters the following order:

2S-122-.G,,-- 182 FEDERAL TRADE CO::I::nSSIOj\T DECISIOXS Decision and Order 61 F.

1. Respondent, Giant Plastics Corporation, is a corporation orga, nized1, existing and doing business under and by virtue of the laws of the State of ew Yark, with its offce and principal place of business located at 3876 Park Avenue, in the city of :New York, State of ~ew York.

Respondents Herbert J. Rosenberg, Harold Rosenberg and Celia Rosenberg are offcers of sa.id corporation, and their address is the same as tha.t of said corporation.

2. The Federal Trade Commission has jurisdiction of the subject matt.er of this proceeding and of respondents, and the proceeding is in the public interest.

OIWEIl It is ordered That respondents Giant Plashes Corporation, a corporation, and its offcers, and :Herbert J. H.osenberg, I-Iarold TIo enberg and Celia Rosenberg individually and as oiEcel's of said Corpora tion, and re pondents' representatives, agents, and employees, directly 01' through any corporate or other device, in connection 'with the 011'ering for sale, sale or distribution of children's toys, novelties, and j8"\'elry, and any other irnpol'ted products in commerce, as "commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Representing, lErectly or indirectly, in advertising or in labeling that products rnannfnctured in Hong Kong, Japan or any other foreign country are manufactured in the -United States. 2. Offering for sa.l, selling, or distributing any such product which is packaged, or plaeeel in fl. container, or mounted on or affxed to a card or other clexicB, in such a manner as to conceal the country or place of origin, unless the country or place of origin is dearly and conspicuonsly disclosed on the package, container card or other device.

3. Oflering for sale, seIJing or distribut.ing any such product in Sllch a, mfllnel' that the country or place of origin of the product llnot be 1'ea(hly se.en by prospective purchasers. 4. Disseminating or c.rllsing to be disseminated any display or point or sa.le material ,dth respect to llny such product which fails to clearly)" and conspicuously disclose the country or place of origin of dlc product.

It i8 further ordei' That the respondents he1'e1n shall) within sixty (no) cbys alter service upon them 01 this order, file with the Commis- Siol! fl report in writing ,ettinQ' forth in detail the manner and forn i 1\ W11 jeh they ha YO complied with this order. COMMERCIAL TRAVS. MUTUAL ACCIDENT ASSOC. OF A."\ERICA 183 Complaint