Fernbacher-Lobe Inc. of San Francisco (Formerly Fernbacher-Lobe Co., Inc.)

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IN THE J\fA TIR OF FERNBACHER-LOBE INC. OF SAN FRANCISCO (FORMERLY FERNBACHER-LOBE CO., INC.) ET AL SENT ORDER , ETC., IN REGARD TO THE ALLEGED Viola\TION OF THE FEDERAL TRADE CO",fMISSIOX AND THE FUR PRODUCTS LABELING ACTS Docket 0-530. Complu,int, July 1963-Decision, July 1963 Consent order requiring San Francisco furriers to cease violating the Fur Products LRbeling Act by faBing to use tbe term "natural" on labels and invoices of fur products which were Dot artificially colored; failng to disclose on invoices the true animal name of furs and the country of origin of imported furs, and when fur was artificially colored; substituting nonconforming labels for those attached by the manufacturer or distributor and, in connection therewith, failing to preserve the required records; and failng in other respects to comply with labeling and invoicing requirements. COMPLAINT Pursuant to thc provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that :Fernbacher-Lobe Inc. of San Francisco, a corporation, formerly Fernbacher-Lobe Co., Inc., and Selwyn Sachs and William A. CoJsky, individually and as offcers of said corporation and Irwin S. Cohcn individually and as a stockholder of said corporation, hereinafter referred to as respondents have violated the provisions of said Acts and the Rules and Regulations promulgated under the Fur Products Labeling 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:

PARAGRAPH 1. Respondent, Fernbacher-Lobe Inc. of San Francisco, formerly Fernbachel'-Lobe Co. , Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of California.

Respondents Selwyn Sachs and .Wiliam A. CoJsky are offcers of the corporate respondent and Irwin S. Cohen is a stockholder of the said corporation. They formulate: direct and control the acts practices and policies of the said corporate respondent including those hereinafter set forth.

Respondents are wholesalers of fur products with their oiJce and principal place of business Jocated at 154 Sutter Street, San Francisco, California.

(g) , 314 FEDERAL TRADE CQJ\lMISSIOK DECISIQI\S Complaint 63 F.

PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9 , 1952, respondents have been and a.re now engaged in tlle introduction into commerce, and in the sale advertising, and oftering for sale in eommeree, of fur products; and lu1ve sold, advertjsed, oDered for sale, transpol'terJ and distributed fur products which lutVc been made in "\Thole or in Lrt of fUTs which have been shipped and j"eceived in commerce as the t.terms "commerce fur" and " fur pI )(lucts" are defined in the Fur Products Labeling Act.

PAn. 3. Certain of sa,icl fur products were misbranded in viola.tion of the Fur Products Labeling Act in that they were not Jabeled in accordance with the Rules and Rcgulations promulgated thereunder in the following respects:

(a) Information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Regulations promulgated theretmc1er 'influ set fort.h on labels in abljrQviated form in violation of R.ule 4 of the s dd Rules and Hegnlations. (b) The term "natural" was not used on labels to describe fur products which were not pointed, bleached, dyed, tip-clycd, or otherwise artiGcial1y colored, in violation of Hnle 19 (g) of said ules and R.eglllations.

(c) Infornmtion l'quired under Section 4(2) of t.he Fur Prodnets Labeling Act ana the Hllles and Regulations prOlDl1Jgatecl thereundcr was mingled with non-required information, in violation of Hule 29 (a) of said Rules and Regulations. (d) Information required under Section 4(2) of the Fur Products Labeling Act and t.he 1\n1e8 and Regulations promulgated thereunder was not completely set ant on one side of labels, in violation of Rule 29(a) of said Rules and Regulations. (e) Information required under Section 4(2) of the Fur Products Labeling Act and the Rules and R.egulations promulgated thereunder was set forth in himc1writing on labels: in violation of Rule 29 (b) of said Rules and Regulations. (f) Required item numbers were not set forth on labels in violation of Rule 40 of SD.ic1 Rules and R.egulat.ions. Information required nncler Section .1 (2) of the Fur Products Labeling Ad nc1 the Hl1les mcl Re.gnlatiol1s promulgated thereunder was J10t set forth in the. "l'C'luire, c1 sequence, in violation of R.ule 30 of said Rules iln,l lle,p:nlations. PAR. 4. Certa.in of saia fur procbds ymre falsely and deceptively invoiced by the respoDclellls jn thflt they were not invoiced a.s FEcRKBACHER-LOBE I C. OF S"K FRANCISCO ET "L. 315 313 Complaint required by Section 5(b) (1) of the Fur Products Labeling Act and the Rules and Rcgulations promulgated under such Act. Among such falsely and dcceptively invoiced fur products, but not limited thereto, were fur products covered by invoices which failed:

1. To show the true myim.al llame of the fur used in the rur product.

2. To disclose that the fur contained in the fur product was bleached dyed, or othenvise artificially colored when such was the fact.

3. To show the country of origin of imported furs used in fur products.

PAR. 5. Certain of said fur products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act in that they were not invoiced in accordance .with the Rules and Regulatious promulgated thereundcr in the following respects: 1. The tenn "natural" was not used 011 invoices to describe fur products which were not pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Rule 19(9) of said Rules and Regulations.

:2. Required item numbers 'were not set forth on invoices, in viobtion of Rule 40 of said Rules and Regulations. PAR. 6. Hespondcnts in introducing, selling, advertising, and offering for sale, in C011111e1'CC, and in processing for commerce fur products; and in selling, advertising, offering for sale and processing fur products which have been shipped and received in commerce, have misbranded such fur products by substituting thereon Jabels which did not conform to the requirements of Section" of the Fur Products Labeling Act, for the Jabels affxed to said fli products hy the manufacturer or distributor pursuant to Section 4 of said Act, in violation of Section 3 (e) of said Act. PAR. 7. Respondents in substituting Jabels as provided for in Section 3 (e) of the Fur Products Labeling Act, have failed to keep and preserve the records required: in violation of Section 3 (e) and Rule 41 of the Rules and Regulations promulgated under the saiel Act.

PAR. 8. The aforesaid acts and practices of respondents as herein alleged, are in violation OT the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder and constitute unfair and deceptive ads and practices and unfair met.hods of competit.ion in commerce under t.he Federal Trade Commission Act. 316 FEDERAL TRADE COM."\SSIO" DECISIO"S Decision and Order 63 F. DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of thc Federal Trade Commission Act and the Fur Products Labeling Act, and the respondents having been served with notice of said determination and with a copy of 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 aJ! the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said 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 s rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement, makes the foJ!owing jurisdictional findings, and enters the following order:

1. Respondent, Fernbacher-Lobe Inc. of San Francisco, formerly Fernbacher-Lobe Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, wjth its offce and principal place of business located at 154 Sutter Street, in the city of San Francisco, State of California. Respondents Selwyn Sachs and WiJ!jam A. Colsky "rc offcers of said corporation. Respondent Irwin S. Cohen is " stockholder or said corporation. Their address is the same as that of said corporation.

2. The Federal Tmde Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceed- Ing 1S in the public interest.

ORDER It i8 O1y/eted That respondents Fernbacher-Lobe Inc. of San Francisco, a. corporation, formerly Fernbacher-Lobe Co. Inc. and its offccrs and Selwyn Sachs and William A. Colsky, individually a.nd as offcers of said corporation, a.nd Irwin S. Cohen, individually and as a stockholder of said corporation, and respondents' repre. sentatives agents and employees, directly or through any corporate FERNBACHERCLOBE INC. OF SAN FR,L'-CLSCO ET AL. 317 313 Decision and; Order or other device, in connection with the introduction into commerce or the sale, advertising or offering for saJe in commerce, or the transportation or distribution in commerce, of any fur product; or in connection with the sale, advertising, offe;ing 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" are defined in the Fur Products Labeling Act do forthwith cease and desist from: A. Misbranding fur products by:

1. Setting forth information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form on labels affxed to fur products.

2. Failing to set forth the term "natural" as part of the information required to be disclosed on labels under the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe fur products which are not pointed, bleached, dyed, tip-dyed, or otherwise artificially colored.

3. Setting forth information required under Section 4(2) of the Fur Products Labeling Act and the Rules and R.egulations promulgated thereunder mingled with nonrequired information on Jabels affxed to fur products. 4. Failing to completely set out information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Regulations thereunder on one side of the JaheJs affxed to fur products.

5. Setting forth information required under' Section 4(2) of the Fur Products Labeling Act and the Rules ancl Regulations pro1l1ulgated thereunder in handwriting on labels ai1ixed to fur products.

6. Failing to set forth on labels the item number or mark assigned to fur products.

7. Failing to set forth information required under Section 4(2) of the Fur Products Labeling Act ancl the Rules and Regulations promulgated there.under on labels in the sequence required by Rule 30 of the ftforesaic1 R.ules and Hegulations.

B. Falsely or deceptively invoicing fur products by: 1. FaiJ.ng to furnish invoices to purchasers of fur products showing in words and figures plainly legible a1l the in- 318 FEDERAL TRADE CO L\nSSION DECISIOKS Decision and Order 63 F. formation required to be disclosed in each of the subsections of Section 5(b) (1) of the Fur Products Labeling Act. 2. Failing to set forth the term "natural" as part of the information required to be disclosed on invoices lmcler the Fur Products Labeling Act and Rules and Regulations promulgated thereunder to describe fur products which are not pointed, bleached, dyed, tip-dyed, or otherwise artifcially colored.

3. Failing to set forth on invoices the item number or mark assigned to fur products.

ft is further orde,. That respondents Fernbacher-Lobe Inc. of San Francisco, a corporation, formerly Fernbacher-Lobe Co. Inc., and its offcers and SeJwyn Sachs and '\Villiam A. CoJsky, individually and as offcers of said corporation, and Irwin S. Cohen individually and as a stockholder of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction, sale advertising or offering for sale, in Comt1erce or the processing for commerce, of fur products; or in connection Tlith the selling, advertising, oiIering for sale, or processing of fur products which have been shipped and received in commerce do forthwith cease and desist from:

A. :Misbrancling fur products by substituting for the labels affxed to such fur products pursuant to Section 4 of the Fur Products Labeling Act, la,bels which do not conform to the requiren1cnts of the aforesaid Act a,nd the Rules and Regulations promnlgated thereunder.

B. Fa.filing to keep and preserve the records required by the Fur Products Labeling Act and the Hules and Regulations promulgated thereunder in substitut.ing labels as permitted by Section 3 (e) of the said Act.

It -is bather ordered That the responde,nts herein shall, within sixty (60) days after service upon them of this order, file wit.h the Commission a report in Tlrit.ing setting forth in detail the manner and form in which tlley ha.ve complied Tlith this order. ALLEN CAHFET SHOPS , INC. ) Err AL. 319 Compiaint