American Textile Company of New England, Inc.

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THE IATTER 01' AMERICAN TEXTILE CO IP ANY OF NEW ENGLAND, lng., ET AL, COXSEXT miler, ETC., IN REGARD TO THE ALLEGJ D VIOLATION OF THE :FEDERAL TRADE CO:.l\IISSION AXD THE TEXTILE FIBER PRODUCTS lDEXTI- FICATION ACTS Docket 0-836. Complaint, Dec. 27, 1983-Decision, Dec. , 1963 Consent order requiring Boston, Mass., sellers of upholstery fabrics to furniture manufacturers and upholstery shops, to cease violating the Textile Fiber Products Identification Act by usiug terms for their products which falsely represented the fiber content, such as " Silkol'a, aud failiug to use the correct generic name on labels and in advertising; labeling products misleadingly a Kylock" and setting forth the fiber content on labels as "100% Xylon" when only the surface yarns were composed of 100% Xylon; failing to label samples add swatches with required information; removing labels 01' other identification prior to final sale; furnishing false guaranties that their textile fiber products were not misbranded or falsely invoked; and failng in otller respects to comply 'with requirements of tile Act. C02\IPLAIXT Pursuant to the provisions of the Federal Trade Commission Act and the Textile Fiber Products Identification Act, and by virtue of lERICA:V TEXTILE CO. OF ),-rE\V EXGLAXD, !:\C., ET AL. 2051 2050 Complaint the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that American Textile Company of N e\y England, Inc" a corporation and Benjamin vVeissman, Esther ,Veissman a.nd Allen 'Veissman, individually and as offcers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations under the Textile Fibcr Products Idcntificatiou Act, and it appearing to the Commission that a proceeding by it in respect thereof ,vould be in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

\RAGTIAPH 1. Respondent American Textile Company of New England, Inc., is a corporation organized, existing and doing business under' and by virtue of the la,y\,s of the Commonwealth of JHassachusetts.

Individual respondents Benjamin ,Veissmall, Esther ,Veissman and Allen ,Veissman are offcers of the corporate respondent and control direct and formulate the acts, practices and policies of the corporate ponc1el1t. H.espondellts axe engaged in the sale of upholstery fabrics for the outer covering of furniture to furniture manufacturers and upholstery shops. The office and principal place of business of all respondents is located at 1330 Centre Street, K e'lvLon Centrc, :.Iassachusetts, formerly doing business at 36 Canal St.reet, Boston Ias- 3aehusetts.

PAn, 2. Subsequent to the effective date of the Textile Fiber Products Identification Act on :Uarch 3, 1060 respondents have been and are now engaged in the introduction, delivery for introduction, sale a.advertising, and offering for sale, in commerce, and in the transportation and 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 have caused to be transported, textie fiber products, which have been advertised and offered for sale in commerce; and have sold, offered for sale, advertised, delivered, transported and cause to be transported after shipment in commerce, textile fiber products, either in their original state or contained in other textile fiber products, as the terms "commerce and "textile fiber product" are defined in the Textile Fiber Products I dcntification Act.

PAR. 3. Certa.in of said textile fiber products were misbranded by respondents within the intent and meaning of Section 4(a) of the Textile Fiber Products Identification Act and the Rules and Hco'ulations promulgat.ed thereunder, in t.hat they were blsely and deceptively stflmpec1, tagged, labeled, jnvoiced, advertised, or otheI''ivise 2052 FEDERAL TRADE CO:V!MISSION DECISIONS Complaint 63 F.

identifed as to the name or amount of constituent fibers contained therein.

Among such misbranded textile fiber products but not limited thereto were textile fiber products with labels which: 1, Contained terms which represented, either directly or by implication, certain fibers as present in the said product when such was not the case.

Among such terms but not 1limited thereto were the terms "Xylock? and ;' Silkora 2. Set forth the fiber content as 1000/0 Kylon': whereas in truth and in fact only the surface yarns of said product .were composed of 100% Nylon.

Paint. 4. Certain of said textile fiber products were further misbranded by respondent in that they were not stamped, tagged, labeled or otherwise identified as required under the provisions of Sect.ion 4 (b) of the Textile Fiber Products Identification Act and in the manner and form as prescribed by the Rules and Regulations promulgated under said Acts.

Among such misbranded textile fiber products, but not limited thereto, \\ere textile fiber products without labels and with labels which failed to show in words and figures plainly legible the correct generic name of the fibers present.

PAR. 5. Certain of said textile fiber products were misbranded in violation of the Textile Fiber Products Identification Act in that they were not labeled in accordance ,with the Rules and Regulations promulgate-c1 thereunder in the following respects: (a) Fiber trademarks and generic names appeared on labels without a full and complete fiber content disclosure in accordance ,with the Act and Regulations being made the first time the generic name 01' fiber trademark appeared on the label, in violation of Rule 1. (b) of the aforesaid Rules and Regulations.

(b) A fibcr trademark or generic name was used in non. required information on a label in such a manner as to be false, deceptive and misleading as to fiber content and to indicate directly or indirectly that. a textile fiber product was composed wholly or in part of a particular fiber when such was not the case, in violation af Rule li(d) of the aforesaid Hules and Regulations.

(c) 'Yards, symbols, or other depictions constituting or implying the name or designation of a fiber w"which was not present in the pro duct appeared on the label in violation of Rule 18 of the aforesaid Rules and Regnlntion , AMERICA. TEXTILE CO. OF ),TE\V BNGLA.'iD , r:...,., ET AL.. 2053 2050 Complaint (d) Samples, swatches, and specimens of textile fiber products subject to the aforesaid Act, which were used to promote or effect sales of such textile libel' products, were not labeled to show their respective fiber content ,md other information required by Section 4 (b) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, in violation of Rule 21(a) of the aforesaid Rules and Rc!,yulations.

PAR, (j, Certain of said textile fiber products were falsely and deceptively advertised in that respondents in making disclosures or implications as to the fiber content of such textile fiber products in written advertisements used to aid, promote and assist directly or indirectly in the sale or oHering for sale of said products failed to set forth the required information as to fiber content as specified by Section 4 (c) of the Textile Fibcr Products Identification Act and in the ma.nner and form prescribed hy the Rules and R.cgulations prolllulgated under saiel Act.

Among such textile fiber products, but not limited thereto0 er8 fabrics ,which ,,'ere falsely and deceptively advertised by means of price lists distributed by respondent throughout the United States in that the true generic names of the fibers in such fabric were not set forth.

PAR. 7. By means of the aforesaid advertisements and others of similar import a,nd llleaning not specifically referred to herein, respondents falsely and deceptively "advertised textile fiber products in violation of Textile Fiber Products Identification Act in thflt said textile fiber products were not advertised in accordance with the Hllies and R.egulations promulgated thereunder in the following respects. (a) Fiber trademarks were used in advertising textile fiber products containing more than one fiber, other than permissive ornamentation, and such fiber trademarks did not appear in the required fiber content information in immediate proximity and conjunction with the generic name of the fiber in plainly legible type or lettering of equal size and conspicuousness, in violation of Rule 41 (b) of the aforesaid Rules and Regnlations.

(b) All parts of the required information were not set forth in immediate conjunction with each other in legible and conspicuous type or lettering of equal size and prominence, in violation of Rule 42(a) of the aforesaid Rules and Regulations, (c) Kon-required information and representations used in advertising textile fiber products were false, deceptive, and misleading as to the fiber content of the (textile fiber product and were set forth and used so as to interfere with minimize and detract from the required 7 80- 01 S (j9.--I130 , 2054 FEDERAL TRADE CO:\IMISSION DECISIONS Decision allrl OrrIer 63 E' information, in violation of RuJc 42(b) of the aforcsaid Rules and Hegulations.

Among such products, but not limited thereto, were textile fiber products, namely upholstery fabrics, advertised as "Silkora" thus represent.ing, directly or by implication, that the said products contained silk when such was not the case.

\R. 8. After certain textile fiber products \\ere shipped in commerce respondents have removed or caused or participated in the removal of the. stamp, tag, label or other identification required by the Textie Fiber Products Identification Act to be affxed to such products prior to the time such textile fiber products ""ere sold and deli, ered to the ultimate consumer, in violation of Section 5 (a) of said Act.

'ln. 9. R.respondents have furnished their cust.omers with false gua.ranties that certain of the textile fiber products were not misbranded or falsely invoiced by falsely representing in writing that respondents had a continuing guanmty under the Textile Fiber Products Identification Act on file ,,,itll the Federal Trade Commission in violation of Rule 38 (d) of the Rules and Regulations under said \ct. and Seeton 10 (b) of such Act, PAR. 10, The acts and practices of respondents as set forth here were in violation of the Textile Fiber Products Identification Act and the Rules and Regulations thereunder a,nd constituted and now constitute unfair and deceptive acts and practices and unfa,ir methods of competition in commerce \\-within the intent and meaning of the Federal Trade Commission Act.

DECISION AXD ORDER The Commission ha.ving heretofore determined to issue its com plaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act and the Textile Fiber Products Identification 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 exeC'l1tec1 an agreement containing a consent order, an admission by respondents of all the jurisdictional facts set forth in the complaint to issue herein, a statement that the signing of said agreement is for spttlement purposes only and does not constitute an admission by respondents tllat the Jaw has been violated as set forth jn such complaint, and waivers a,nd provisions as required by the Commission rules; and A,-.l\ierica1 textile co. OF NE GLA1\D , INC. , ET AL. 2055 2050 Ded ioll and Order The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. R,respondent A.Jleriean Textile Company of New England, Inc. is a corporation organized, exi ting and doing business under and by viliue of the laws of the C0I111nonweaJth of )'lassachusetts, with its offce and principal place of business located at 1330 Centre Street Kewton Centre, :\Iassachusetts, formerly doing business at 36 Canal Street. in the City of Boston, Commonwealth of )Iassachnsetts, Re,.spondellts Benj am in 1Yeissman, Esther 1Veissman, a.nd Allen \Veissman are ofieers of said corporation, and their address is the salle as that of said corporation.

2. The Federal Trade Commission has jurisdiction of the subject l11t.tter of this IJroeeeding and of the respondents, and the proceeding is in the puLJlie interest.

ORDER It is orde'/ed That respondents American Textile Company of New Eng1ancl, Inc. , a corporation, and its offcers and Benjamin \Yeissman, Esther ,Yeiss11an and Allen \Veissman, individually and a offcers of said corporation, and respondents' representatives, agents and eraployees, directly or through any corporate or other device in COllllection with the innoduction, delivery for introduction, sale ac1venising, or oilering for sale, in COlllllcrce, or the transportation or causing to be transported in commerce, or the importation into the United St.ates of any textile fiber product; or in connection with the sale, oilering for sale, advertising, delivery, transportation or causing t.o be, transported, of any textile fiber product, which has been adver tised or offered for sa.le in commerce j or in C01l1cction with the sale oft' cring for sale, advertising, delivery, transportation, or causing to be transporteel, after shipment in commerce, of any textile fiber product whether in its original state or contained in other textile fiber proc1 nets, as the terms "commerce" and " textile fiber product' are define, in the Textile Fiber Products lclentifieation Act, do forthwith cease :mc1 clf'sist from:

A, Misbranding textile fiber products by:

1. Falsely or deceptively stamping, tagging, labeling, inyoicing, advertising or otherwise identifying such products as to the name or amount of constituent fibers contained therein.

2. Stamping, Jabeling, invoicing, advert.ising or otherwise identifying such products by representing, either directly 2056 FEDERAL TRADE COl\L\iissio DECISIO?-TS Decision and Order 63 F.

or by implication through the use of such terms as "Nylock" and "Silkora" or any other terms, that such products conta.in any fibers which are not present therein, 3, Failing to affx labels to such textile fiber products showing ill (t. clear, legible and conspicuous manner each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act. 4. Using a generic name or fiber trademark on any label whether required or non-required, without making a full and complete fiber content disclosure in accordance with the Act and Regulations the first time such generic name' or fiber trademark appears on such bbe!.

5. Using fiber trademarks or generic names on labels affxed to textile fiber products in such a manner as to be false: deceptive or misleading as to fiber content or so as t.o indicate directly or iudirectly that any such textile fiber product is composed of wholly 01' in part of a particular fiber when such is not the case.

o. Vsing words, symbols, or depictions on htbels ntt l,:hed to textile fiber products which constitute or imply the nelme or designation of a fiber when such fiber is not pre e!1t in the aforesaid product.

7. Failing to affx labels showing the respective fiber content and other required information to samples, s\vatches and specimens of textile fiber products subject to the aforesaid Act which are used to promote or efiect sales of such textile fiber products, B. Falsely and deceptively advertising textile fiber products by:

1. \Iaking any representations by disclosure or by implication of the fiber contents of any textile fiber product in any \yriUen advertisement which is used to aid, promo:e assist directly or indirectly in the sale or offering for i3ale of such textile fiber product unless the same information required to be shown on the stamp, tag, label or other me lns of identification under Sections 4(b) (1) and (2) of the Textile Fiber Products Identification Act is contained in the said advertisement, except that the percentages of the fibers present in the textile fiber product need not be sbttecl. 2, lsing a fiber trauemark in advertising textile fiber products containing more than one fiber \'without such fiber trac1eJuark appearing in the required fiber content information in immediate proximity and conjunction with the genj;

PRAGER BRUSH COMPANY ET AL. 2057 2050 Syllabus erie name of the fiber in plainly legible type or lettering of equal size and conspicuousness.

3. Failing to set forth all parts of the required information in advertisements of textile fiber products in immediate eonjunction with each other in legible and conspicuous type or lettering of equal size and prominence.

4. using non-required information and representations in any advertisement of any textile fiber product in such a manner as to be false, deceptive or misleading as to the fiber content of the textile fiber product or so as to interfere with minimi e or detract from required information. C. Furnishing false guaranties that textile fiber products are not misbranded or falsely invoiced under the provisions of the Textile Fiber Products Identification Act, 1 t 'i:s .further ordered That respondents American Textile Company of Ke'I Ellghmcl, Inc., a. corporation, and its offcers and Benjamin IVeissman, Esther ,Ycissman, and Allen "\Veissman, individually and as oIlcers of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from removing, or causing or participatill 1he 1'cmm-al of, the stamp: tag, Jabel or other jdentification required by the Textile Fiber Products Identification Act to be on or affxed to any textile fiber product, after such textile fiber product hfl5 been shipped in commerce and prior to the time such textile fiber product has been sold and delivered to the ultirnate consumer. 1 t JUT/her oTClel'ecZ That the respondents herein shan, within sixty (GO) da.ys a.after service upon them of this order, file with the Com.mission a report in "writing setting lorth in detail the manner