Rhoda Lee, Inc.

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

IN THE J\fATTR OF RHODA LEE, INC., ET AL.

CONSEKT ORDER , ETC., IX REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRDE COMMISSION AND THE TEXTILE FIBER l' RODUCTS IDEN- TIFCATION ACTS Docket C-587. Complaint, Sept. 1S, 1965-Decision, Sept. , 1963 Consent order requiring three a.ssociated corporate manufacturers of ladies sportswear in New York City, to cease violating the Textile FilJer Products Identification Act by failng to show plainly on lalJels the true generic name of the constituent fibers and the percentage thereof, and the name of the country where imported products were processed or manufactured; and by removing and mutilating, prior to sale to the ultimate consumer, the identifying tags, etc., required to be affxed to such products. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Textile Fiber Products Identification Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commis. sion having reason to believe that Rhoda Lee, Inc., Elberton Manufacturing Company, and Rilla, Inc., corporations, and their offcers and Fred Alcott and Isidor Alcalay, individually and as offcers of said corporations, and Adolf Alcalay, individually and as an offcer of Rhoda Lee, Inc. , hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Textile Fiber Products Identification 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 Rhoda Lee, Inc., is a corporation or. ganized, existing and doing business under and by virtue of the laws of the State of New York with its offce and principal place of business located at 525 Seventh Avenue, New York, JI ew York. Respondents Elberton Manufacturing Company, and Ri1a, Inc. are corporations organized, existing and doing business under and by virtue of the laws of the State of Georgia with their offce and principal place of business located at Highway 17, Elberton, Georgia. Respondents Fred Alcott, Isidor Alcalay, and Adolf Alcalay are offcers of corporate respondent Rhoda Lee, Inc., and formulate, direct and control the acts, practices and policies of said corporate respondent.

688 FEDERAL TRADE CO'lvf.MISSIQX DEC:SIO Complaint 63 F.

Respondents Fred Alcott and Isidor Alcalay are offcers of corporate respondents Elberton Manufacturing Company and Ri1a Inc., and formulate, direct and control the acts, practices and policies of such corporate respondents.

The offce and principal place of business of individual respondents Fred Alcott and Adolf AJcalay is the same as that of corporate respondent Rhoda Lee, Inc.

The offce and principal place of business of individual respondent Isidor Alcalay is the same as that of corporate respondents Elberton Manufacturing Company and TIila, Inc.

Respondents are manufacturers and distributors of textile fiber products including ladies' sportswear.

PAR. 2. Subsequent to the effective date of the Textile Fiber Products Identification Act on March 3 , 1960, respondents have been and are now engaged in the introduction, delivery for introduction, manufacture for introduction, sale, advertising, and offering for sale, in commerce) ancl in the transportation or causing to be transported in commerce, and in the importation into the United States, of textile fiber products; and have sold, offered for sale, advertised, delivered transported and caused to be t.transported, textile fiber product.s which have been advertised or offered for sale in commerce; and have sold, offered for sale, advertised, delivered, transported and caused to he transported, after shipment in commerce, textile fiber products either in their original state or contained in other textile fiber products; as the teTJT1S "commerce" and "textile fiber product" are defined in the TexWe Fiber Products Identification Act. PAR. 3. Certain of said text.ile fiber products were misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified as required under the provisions of Section 4 (b) of t.he Textile Fiber Products Identification Act, and in t.he manner and form prescribed by the Rules and Regulations promulgated under said Act.

Among such misbranded textile fiber products, but not limited t.hereto, were textile fiber products wl,ich were not labeled to show in words and figures plainly legible:

(1) The true generic names of the constituent fibers present in textile fiber products; and (2) The percentage of each of such fibers; and (3) The name of tI,e country where imported textile fiber products were processed or manufactured.

PAR. 4. After certain textile fiber products were shipped in commerce, respondents have removed and mutilated, and have caused RHODA LEE , IXC" ET AL. 689 687 Decision and Order and participated in the removal and mutilation of, the stamp, tag, label or other identification required by the Textile Fiber Products Identification Act to be affxed to such products, prior to the time such textile fiber products "ere sold and delivered to the ultimate consumer, in violation of Section 5(a) of said Act. PAR. 5. The acts and practices of respondents as set forth above were, and are, in violation of the Textile Fiber Products Identification Act and the Rules and Regulations 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. DECISIO AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter "ith a copy of a draft of complaint "which the Bureau of Textiles and Furs 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 Textile Fiber Products Identification Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing 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 set.tlement purposes only and does not constitute an admission by the respondents that the law has been violated as pJleged in such complaint, and waivers and provisions as required by the Commission s rules; and The Commission, having reason to believe that the respondents have violated the Federal Trade Commission Act and the Textile Fiber Products Identification Act, and having determined that complaint should issue stating its charges in those respects, hereby issues its complaint, accepts said agreement, makes the following jurisdictional findings and enters the following order: 1. Respondent Jlhoda Lee, Inc., is a corporation organized, existing and doing business under and by virtue of the la"s of the State of New York "ith its offce and principal place of business located at 525 Seventh Avenue, Jlew York, Kew York.

Respondents Elberton Manufacturing Company and Rila, Inc. are corporations organized, existing and doing business under and by virtue of the Jaws of the State of Georgia with their offce and 690 FEDERAL TRADE COMllISSIOX DECISIOXS Decision and Order 63 F.

principal place of business located at Highway 17, Elbcrton, Georgia. Respondents Fred Alcott, Isidor AlcaJay and Adolf Alcalay are offcers of Rhoda Lee, Inc.

Respondents Fred Alcott and Isidor Alcalay are offcers of Elberton .Manufacturing Company and of Rila, Inc. The offce and principal place of business of respondents Fred Alcott and Adolf AlcaJay is the same as that of respondent Rhoda Lee, Inc.

The offce and principal place of business of respondent Isidor AJcalay is the same as that of respondents Elberton .Manufacturing Gompany and Rila, Inc.

Z. The Federal Trade Commission 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 Rhoda Lee, Inc., Elberton Manufacturing Company, and Hilla" Inc., corporations, and their offe-ers and Fred Alcott and I!3idor Akalay, inc1iYidually and as offcers of said corporations, and Adolf Alcalay, individually and as an offcer of Rhoda Lee, Inc. , and respondents' represEmtatives, agents and em. ployees, directly or through any corporate or other device, in connection with the introduction, delivery for introduction, manufacture for introduction, sale, advertising or offering for sale, in commerce or the transportation or causing to be transported in commerce, or the importation into the United States of any textile fiber product; or in connection with the sale, offering for sale, advertising, delivery transportation or causing to be transported, of any textile fiber product which has been advertised or offered for sale in commerce; or in connection with the sale, offering for sale, advertising, delivery, trausportation or causing to be transported, after shipment in commerce, of any textile fiber product, whether in its original state or contained in other textjIe fiber products, as the terms "commerce and "textile fiber product" are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from misbranding textile fiber products by failing to affx labels to such products showing in a clear, legible and conspicuous manner each element of information required to be disclosed by Section 4(b) of the Textile Fiber Products Identification Act.

It is f"rther ordered That respondents Rhoda Lee, Inc., EJberton 1fanufacturing Company, and Rina, Inc. , corporations, and their offcers, and Fred AJcott and Isidor AJcalay, individually and as y, PAINTSET FASHIONS' TC" T AL. 691 Complaintoffcers687of said corporabons, and Adolf Alcalay, individually and as an offcer of Rhoda Lee, Inc., and respondents' agents, representatives and employees, directly or through any corporate or other device, do :forthwith cease and desist from removing or mutilating, or causing or participating in the removal or mutilabon of, the stamp, tag, label, or other identification required by the Textile Fiber Products Identification Act to be affxed to any textile fiber product, after such textile fiber product has been shipped in commerce and prior to the time such textile fiber product is sold and delivcred to the ultimate consumer.

It further o1'dered, That each of the respondents herein shall 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 and form in which they have complied with this order.