Greans, Inc.

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

IN THE MATTER OF GREANS, INC., ET AL.

CONSENT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOI ATION OF THE FEDERAl.J TRADE CO:MMlSSIOK AND THE FU PRODUCTS LABELING ACTS Docket 0-62.9. Complaint, Dec. 1D6S-Decision, Dec. , 196$ Consent order requiring retail furriers in Norfolk, Va., to cease violating the Fur Products Labeling Act by representing, in labeling and advertising, prices of fur products as reduced from higher prices which were, in fact, fictitious; failng, in newspaper advertising, to show the true animal name of fur used in fur products; representing falsely, in such advertising. that fur products on sale, were "from our exclusive fur collection by OLEG CASSINI", failng to use the term "1\.natural" for fur products which were not artificially colored, failng to comply with other advertising requirements; and failng to keep adequate records as a basis for pricing claims. COMPLAINT Pursuant to the 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 Greans, Inc., a corporation, and Barney B. Brittman, Fanny B. Cohen, Jack Cohen and Blanche C. Brittman, individually and as offcers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules FEDERAL TRADE CmvlMISSIO " DECISIO1676 Complaint 63 F.

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: P ARAGRAPII 1. Respondent Groans, Inc., is a corporation organized existing and doing business under the laws of the Commonwealth of Virginia. Respondents Barney B. Brittman, Fanny B. Cohen, Jack Cohen and Blanche C. Brittman are offcers of the corporate respondent and formulate, direct and control the acts, practices and policies of the said corporate respondent including those hereinafter set forth. Respondents are retailers of fur products with their offce and principal place of business located at 113 College Place, Norfolk, Virginia. PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9, 1952, respondents have been and are now engftged in the introduction into commerce, and in the sale, advertising, and offering for sale in commerce, and in the transportation and distribution in commerce, of fur products; and have sold, advertised offered for sale, transported and distributed fur products which have been made in whole or in part of furs which have been shipped and received in commerce, as the terms "commerce, "fur" and "fur prod. net:' ate defined in the Fur Products Labeling Act. P AU. 3. Certain of said fur products were misbranded in violation of Section 4 (1) of the Fur Products Labeling Act in that they were falsely and deceptively labeled or otherwise falsely and deceptively identified in that labels affxed to fur products, contained representations, either directly or by implication that the prices of such fur products were reduced from the prices at which respondents regularly and usually sold such fur products in the recent regular course of business and the amount of such purported reduetion constituted savings to purchasers of respondents' products when, in fact, the socaned regular or usual prices were fictitious in that they were not the prices at which such fur products were regularly and usually sold by the respondents in the recent regular course of business and the said fur products were not reduced in price as represented and savings ,were not afforded purchasers of respondents' said fur products, as represented.

PAR. 4. Certain of said fur products were falsely and deceptively advertised in violation of the Fur Products Labeling Act in that certain advertisements intended to aid, promote and ;1ssist, directly or indirectly, in the sale and offering for sale of such fur products were not in accordance with the provisions of Section 5(a) of the said Act. Among and included in the aforesaid advertisements but not limited GREA1"VS , INC. ) EI' AL. 1677 1675 C'complaint thereto, were advertisements of respondents which appeared in issues of the Virginian Pilot, a newspaper published in the City of Norfolk State of Virginia.

Among such false and deceptive advertisements, but not limited thereto, were advertisements which failed to show the true animal name of the fur used in the fur product.

PAR. 5. By means of the aforesaid advertisements and others of similar import and meaning not specifically referred to herein respondents falsely and deceptively advertised fur products in violation of Section 5 (a) (5) of the Fur Products Labeling Act by representing, directly or by implication through such statements as "Save $200- An outstanding value from our exclusive fur collection by OLEG CASSINI luxurious styled Autumn Haze Mink Stoles" that the fur products advertised and oflered for sale were manufactured, created designed or styled by said Oleg Cassini, when in fact the majority of fur products thus advertised and oflered for sale were not manufactured, created, designed or styled by the said Oleg Cassini. PAR. 6. By means of the aforesaid advertisements and other advertisements of similar import and meaning not specifically referred to herein, respondents falsely and deceptively advertised fur products in that said advertisements represented that the prices of fur products were reduced from regular or usual retail prices and that the amount of such price reductions afforded savings to the purchasers of respondents' products, when the so-called regular or usual retail prices were in fact fictitious in that they were not the prices at which said merchandise was usually sold by respondents in the recent regular course of business and the said fur products were not reduced in price as represented and the represented savings were not thereby aflorded to the purchasers, in violation of Section 5 (a) (5) of the Fur Products Labeling Aet and Rule 44 (a) of the Rules and regulations promulgated under the said Act.

PAR. 7. By means of the aforesaid advertisements and others of similar import and meaning not specifically referred to herein, respondents falsely and deceptively advertised fur products in violation of the Fur Products Labeling Act in that the said fur products were not advertised in accordance with the Rules and Regulations promulgated thereunder in the following respects: (a) The term "natural" was not used to describe fur products which were not pointed, bleached, dyed, tip-dyed or otherwise artificially colored, in violation of Rule 19 (g) of the said Rules and Regulations.

(b) All parts of the information required under Section 5 (a) of the Fur Products Labeling Act and the Rules and Regulations pro- 1678 FEDERAL TRADE Co:..lmission DECISIONS Decision and Order 63 P.

mulgated thereunder were not set forth in type of equal size and conspicuousness and in close proximity with each other, in violation of Rule 38 (a) of the aforesaid Rules and Regulations. PAR. 8. Respondents falsely and deceptively advertised fur products by affxing labels thereto which represented either directly or by implication that prices of such fur products had been reduced from regular or usual prices of such products and that the amount of such reductions constituted savings to purchasers when the so-called regu- Jar or usual prices were in fact fictitious in that they were not the prices at which said merchandise was usually sold by respondents in the recent regular course of business and the said fur products were not reduced in price as represented and the represented savings were not thereby afforded to purchasers, in violation of Section 5(a) (5) of the Fur Products Labeling Act and Rule 44(a) of the Rules and Regulations.

PAR. 9. In advertising fur products for sale, as aforesaid, respondents made pricing claims and representations of the types covered by subsections (a), (b), (c) and (d) of Rule 44 of the Regulations under the Fur Products Labeling Act. Respondents in making such claims and representations failed to maintain full and adequate records disclosing the facts upon which such pricing claims and representations were based, in violation of Rule 44(e) of the said Rules and Regulations.

PAR. 10. The aforesaid acts and practices of respondents, 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 commerce. under the Federal Trade Commission Act. DECISION AND Onder 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 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 an 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 , , GREA. IXC' J ET AL. 1679 1675 Decision and Order respondents that the law has been violated as set forth in such complaint, and waivers and provisions as required by the Commission rules; and The Commission, having considered the agreement, hereby aecepts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. R.respondent. Greans, Inc., is a corporation organized, existing and doing business under the laws of the Commonwealth of Virginia, with its ollce and principal place of business located at 113 Col1egB Place orfoJk, Virginia.

respondents Barney B. Brittman, Fanny B. Cohen, Jack Cohen and Blanche C. Brittman 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 procecding is in the public interest.

ORDERS I t is ordered That respondents Groans, Inc., a corporation, and its offcers and Barney B. Brittman, Fanny B. Cohen, Jack Cohen and Blanche C. Brittman, individually and as offcers of said corporation and respondents' representatives, agents and employees, directly or through any corporate or other device in connection with the introduction, into commerce, or the sale, advertising or offering for sale in commerce, or t.he transportation or distribution in commerce, of any fur product; or in connection with the sale, advertising, offering for sale, transportation or distribution, of any fur product which is made in "whole or in part or rur which has been shipped and received in commerce, as the terms "commerce fur" and "fur product" are defmed in the Fur Products Labeling Act, do forthwith cease and desist from:

A. Misbranding fur products by:

1. Falsely or deceptively labeling 01' otherwise idcntifying such products by any representation that any price, when accompanied or unaccompanied by any descriptive language wa.s the price at which the merchandise so represented was usl1al1y and customarily sold at. retail by the respondents unless such merchandise was in fact usually and customarily sold at retail by respondents at such price in the recent past. 2. fisrepresenting in any manner on labels or other means of identification the savings available to purchasers of respondent' s products.

1680 FE DE HAL TRADE CQl\imission DECISIONS Decision and Order 03 F.

3. Falsely or deceptively representing in any manner directly or by implication, on labels or other means of identification that prices of respondents' fur products are reduced. B. Falsely or deceptively advertising fur products through the use of any advertisements, representation, public alIDounCBment or notice which is intended to aid, promote or assist directly or indirectly, in the sale, or offering for sale of any fur products, and which:

1. Fails to set forth in words ,md figures plainly legible all the information required to be disclosed by each of the subsections of Section 5(a) of the Fur Products Labeling Act.

2. R presents, directly or by implication that any of their fur products were manufactured, created, designed or styled by Oleg Cassini or any other person unless such fur products were manufactured, created, designed or styled by Oleg Cassini or such other person.

3. Fails to set forth the term "Natural" as part of the information required to be disclosed in advertisements under the Fur Products Labeling Act and the Rules and Regulations promulgated the,reunder to describe fur products which are not pointed, bleached, dyed, tip-dyed or otherwise artificially colored.

4. Fails to set forth aJl parts of the information required under Section 5 (a) of the Fur Products Labeling Act and the Hulcs and Hegulations promulgated thereunder in type of equal size and conspicuousness and in close proximity with each other.

5. Represents, directly or by implication, that any price when accompanied or unaccompanied by any descriptive language, was the price at which the merchandise advertised was usually and customarily sold at retail by thc respondents unless such advertised merchandise was in fact usually and customarily sold at retail at such price by respondents in the recent past.

6. Misrepresents in any manner the savings available to purchasers of respondents' fur products.

7. Falsely or deceptively represents in any manner that prices of respondents' fur products are reduced. D. Making claims and representations of the types covered by subsections (a), (b), (c) and (d) of Rule 44 of the Rules and Regulations promulgated under the Fur Products Labeling Act RODDER' S MADEMOISELLE ET AL. 1681 1675 CDmplaint unless there are maintained by respondents full and adequate records disclosing the facts upon which such claims and representations are based.

It i8 further ordered That the respondents herein shall, within sixty (00) days after service 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.