Leeds Watch Case Corporation

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IN THE MATTER OF LEEDS WATCH CASE CORPORATION ET AL.

CONSENT ORDER, ETC., IX HEGAHD TO TI-IE ALLEGED 'V"IOLATIO OF THE FEDERAL 'trade C01BHSSTQ:! ACT Docket 0-525. Complaint, July 19G5-Decisiol, July, 1963 Consent order requiring Jamaica, K. Y., distributors of watchbands, some con. sisting in whole or in substantiallJart of components imported from Hong Kong, to cease sellng the watchbands-to manufacturers, distributors and v;wholesalers of watches with no disclosure of their foreign origin. CO?lIPIJ,UXT Pursuant to the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Com- 3ion, hA-ving reason to believe that Leeds ,Vatch Case Corporation, rL corporation, and Harvey S. Dinstman, Joseph Dinstman and I-Iyman Dillstman, individually and as offcers of said corporation hereinafter referred to as respondents, hflve violated the provi2ions of said Act, and it appearing to the Commission that a proceeding by it in respect thereof ,,' ould be in the public interest hereby issues its complaint stating its charges in that respect as follows:

P ARAGRAPII 1. Respondent, Leeds 'Watch Case Corporation, is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 80-25 Van ,Vyck Expre2sway, Jnmn.ica 35, New York.

R.respondents r-farvey S. Dinstman, Joseph Dinstman and layman Dinstman are offcers of the corporate respondent. They formulate direct a.nd control t.he acts and practices of tho corporate respondent including the acts and practices hereinafter set forth. Their address is t.he same as that of the corporate respondent. PAR. 2. Respondents are now, and for some time last past have been engaged in t.he offering for sale, sale and distribution of watchbands to manufacturers and distributors of watches as weJJ as to wholesalers for resale to the public.

, ,,,!), Complaint 63 F.

PAR. 3. In the course and conduct of their business, respondents now cause, and for some time last past have caused, their said product, when sold, to be shipped from their place of business ill the State of New York to purchasers thereof loenJecl in various other States of the United States and in the District of Columbia, and maintain, and at a11 times herein men60necl have maintained. a substant.ial course of t.trade ill said product in commerce, as '; cornl1erce ' is defined in the F'ederal Trade Commission Act. PAR. 4. Some of sfticl 'Iya.tchbancls consist in whole or in substantial pa.rt of components which "ere manufactured in, and imported from I-Iong lCong. ,Vhen offered lor sale and sold by respondents said watchbands do not bear a disclosure showing that they are substantially of foreign origin.

PAIL 5. In the absence of an adequate disclosure that aproc1uct including \yatchbancls, is of foreign origin, the public belien's and understands that it is of domestic origin, a fact of ",vhieh the Commission tokes offcial notice..

As to the aforesaid articles of merchandise a substantial portion of the purchasing public has a preference for said articles which are of domestic origin, of \Thich fa,ct the Commission also takes offcial notice. Respondents failure to clearly and conspicuously disclose the country of origin of said articles of merchandise, or substantial components thereof, is, therefore, to the prejudice of the purchasing public.

PAR. 6. In the conduct, of their business, at all times mentioned herein, respondents hn.ve be,en in substantial competition in commerce, with corpol'tltions, firms, and individuals in the s le of ,vatc11ba,nds of the 5,111e general kind and nature as that sold by the respondents.

. 7. The failure of respondents to disclose t.he foreign origin of t.their watchbands or of sllbstanti d components of their watehbands, has had nd now has, the capaeity and tendency to mislead and deceive purcJm.sers or members of the buying pnbbc in the manner aforesaid, a.nd thereby to induce them to purchase respondents' wfltchbands.

AR. 8. The aforesaid acts a,nc1 practices of respondents herein alleged ere and are aD to t.he prejm1ice an(1 injury of t.he puhlic and of responclents competitors and constitute,d. and now constitute, unfair methods of competition in commerce and unfair deceptive arts and practices in commerce, in violation of Section G of the Federal Trade Commission Act. LEEDS WATCH CASE CORP. ET AL. 241 239 Decision and Order DJ:CISION AND ORDER The Federal Trade Commission having initiated an investigatiou of certain acts and practices of the respondents named in the caption hereof, and the respondents hadng been furnished thereafter with a copy of a draft of complaint which the Bureau of Deceptive Practices proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act; and The responc1e,nts and counsel for the Commission having thereafter executed all agreement contaiIling a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement. is for settlen1ent purposes only and does not constitute an admission by the respondents that the law has been violated as alleged in such complaint, and \\waivers and provisions as required by the Commission s rules; and The Commission, having reason to believe t.hat the respondents have violated the Federal Trade Commission Act., and having determined that complaint should issue stating its clmrges in that respect, hereby issues its complaint, accepts said agreement, make t.he following jurisdictional findings and enters the following orcle-r: 1. Respondent Leeds watch C se Corporation is a corporatiou organized, existing nnd doing business under and by virtue of the la\"\s of the State of New York, ,with its office and principal place of business loc ted t 89-25 Van IVyck Expressway, Jamaiea 35 New York.

Respondents Harvey S. Dinstman, Joseph Dinstman and Hyman Dinstman are offcers of said corporation and their 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 proceed ing is in the public interest.

ORDER It is onle1'eel That the respondent Leeds IVateh Case Corporation, a corporation, and its offcers, and Harvey S. Dinstman individually and as offcersJoseph Dinstman and Hyman Dinstman, of said corporation, and respondents' agents, representfltives and , inemployees, directly or through any corporate or other device connection with the offering for sale, sale or distribution of -watchbands or any other products in commerce, as "commerce ' is defined 242 FEDERAL TRADE COi\IMISSION DECISIOKS Decision and Order 63 F.

in the Federal Trade Commission Act, do forthwith cease and desist from:

1. Offering for sale selling 01' distributing ",vuJchband3 01' similar.r products "which are substantia.lly, or which contain substantial pilrt or parts of foreign origin or fabrication withoutaIfinnatively disclosing the country or place of foreign origin or fabrication thereof on the products themseh- , by marking or stamping all an ( xposecl surface, or on a label or tft,g affxed thereto, of sneh degree of pennanency as to remain thereon until consummation of consumer sale of the product.s and of such eonspicllollsness as to be likely observed and re,Hl by purchasers and prospective purchasers making casual inspection of the products.

2. Offering for sale, selling or distributing any such watch bands or similar products packaged, or mounted ill a. container or on a display eaTel, ,yithont disclosing the country or place of foreign origin of the product, or substantial part or parts thereof, all the front or face of such pa.ckaging, container, or display card, so positioned rls to clearly have application to the product so packaged or mounted, and of such degree of permanency as to remaill thereon until consummation of consumer sale of the product, and of such conspicuousness as to be likely observerl anrl read by purchasers and prospect-iye purchasers making ca,usual inspection of the product as so packaged or mounted.

3. Placing in the ha,nds of manufacturers, distributors, rejlers, and others, means and instrumentalities by and through which they may deceiye and mislead,d the purchasing public concerning the merchandise in the respects set out above. It is further' ol"rdered That the respondents herein shall, wit.hin sixty (60) days after son ice upon them of this order, fie with the Commission a report in writing setting forth in detail the manner and form in ,,-which they have complied with this order. \ , , GE.QHGB ?\--. ZOROS 243 Complaint