Chori New York, Inc., et al.

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IN THE MATTER OF Chari NEW YORK, INC., ET AL.

CONSENT ORDER, ETC. , I); REGARD TO THE ALLEGED nOLAT!DX OF THE FED;lRAL TRADE co nnSSIOX AXD THE FLA3-DIABLE FABRICS ACT Docket 0-682. Comp aint, Jan. 21, 1964--Dectsion, Jan. , 1964 Consent order requiring Kew York City importers to cease violating the Flammable Fabrics Act by importing and distributing in commerce fabrics which were so highly flammable as to be dangerous when worn. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Flammable Fabrics Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Chori ew York, Inc. , a corporation, and Shosuke Tanikaga, Kunio Misaki and Akira Utsumi, individually and as offcers of the sa.id corporation, hereinafter re.ferred to as respondents, have violated the provisions of said Acts, and the Rules and Rcgulations promulgated under the Flammable Fabrics 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 Chori New Y ork, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Respondents Shosuke Tanikaga Kunio Misaki and Akira Utsumi, are president, secretary and treasurer, respectively of Chol'i New York, Inc., the corporate respondent. The individual respondents together with the Board of Directors of said corporation, participate in the formulation: direction and control of the acts, practices and policies of said corporation. All respondents have their offces and principal place of business located at 350 Fifth Avenue, New York 1, New York. The respondents are engaged in the importation into the United States and in the sale and distribution of such imported fabrics. PAR. 2. Respondents, subsequent to July 1 , 1954, the effective date of the Flammable Fabrics Act, have sold and offered for sale, in commerce; have imported into the United States; and have introduced, delivered for introduction, transported, and caused to be transported, in commerce; and have transported and caused to be transported for the purpose of sale or delivery after sale, in commerce; as "commerce" is defined in the Flammable Fabrics Act CHORI NEW YORK, DW. ) ET AL. 323 322 Decision fabric as that term is defined therein, which fabric was, under Secso highly flam- tion 4' of the Flammable Fabrics Act, as amended, mable as to be dangerous when worn by individuals. PAR. 3. The aforesaid acts and practices of respondents were and are in violation of the Flammable Fabrics Act and the Rules and Regulations promulgated therennder, and as such constitutes unfair methods of competition and unfair and deceptive acts and practices in commerce, within the intent and meaning of the Federal Trade Commission Act.

DECISIO AXD ORDER The Commission having heretofore determined to issue its conlplaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act and the Flammable Fabrics 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 Thc respondents and counsel for t.he Commission having thereafter executed an agree.11ent containing a consent order, an admission by respondents of all the jurisdictional facts set forth in the c.ompbint 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 rules; and The Commission, ha.ving considered the agreement, hereby accepts .same, issues its complaint in the form contemplated by said agreement, ma,kes the following jurisdictional findings, and enters the following order:

1. Respondent Chori New York, Inc., is a corporation organized existing ancl doing business under and by virtue of the laws of the State of New York. Respondents Shosuke Tanikaga, Knnio liisaki and Akira .Utsumi, are president, secretary and treasurer, respectively of Chari N ew York, Inc., the corporate respondent. The individual respondents together with the Board of Directors of said corporation, participate in the formulation, direction and control of the acts, practices and policies of said corporation. All respondents have their offces and principal place of business located at 350 Fifth Avenue, New York 1, New York.

2. Tbe 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 64 F.

ORDER I. It is O1'de1'ed That the respondent Chori X ew York, Inc. , a corporation, and its offcers) and respondents, Shosuke Tanikaga, Kunio Misaki and Akira Utsumi, individually and as offcers of said corporation, and respondents' representatives, agents and employees ith ceasedirectly or through any corporate or other device, do forth,, and desist from:

(a) Importing into the United States; or introducing, delivering for (b) Selling, offering for sale, introduction, transporting, or causing to be transported ill commerce, as "commerce" is defined in the Flammable Fabrics Act; (e) Transporting or causing to be transported, for the purpose of sale or delivery after sale ill commerce any fabric which, under the provisions of Section 4: of the mid Flammable Fabrics Act, as mnendecl, is so highly flmnmable as to be dangerous when worn by individuals.

Pro-vided, however That nothing contained herein shan affect any rights afforded to the respondents by Section 11 of the Flammable Fabrics Act.

II. It is further olYlered That respondents hereinbefore Hamed furnish to the Federal Trade Commission within 5 days after service of tllls order a special report which:

(a) Contains a list of the names and addresses of all of the corporate respondents' customers to whom shipments were made since July 1, 1963, of fabric Style AK 7331 and/or of any other fabric which under the provisions of Section 4, of the said Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals.

(b) Shows that respondents have notified in writing the customers of the corporate respondent to whom any of the shipments referred to in subparagraph (a) above were made as to the questionable flammable nature of the fabrics contained in such shipments.

(c) Contains copies of thc aforesaid notification to each of copies of the customers referred to in subparagraph (a) and any and all responses to the aforesaid notification. III. It i8 further ordered That respondents, hereinbefore named shall forward to the Commission, within two (2) days after receipt thereof, copies of any and all responses to the notification required by Subparagraph (c) of Paragraph II above which are received by respondents after the due date of the aforesaid special report. JOYCE'fTE FABRICS CORP. E'r AL. 325 322 Complaint IV. It is !u1,that orde,' That the respondents, hereinbefore named, shall, within five (5) 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 Paragraph I of this order.