Joycette Fabrics Corp

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IN THE MATTER OF JOYCETTE FABRICS CORP. ET AL.

COKSE:NT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRlI.DE G02.nIlSSIO , THE FLA r1'TABLE F AERICS AND 'rIIE TEXTILE. FIBER PH.ODUCTS lDENTIl"ICATION ACTS Docket C-683. Complaint, Jan. 21, 196.4-Decisioll, Jan. , 1964 Consent order requiring Kew York City converters and distributors of imported fabrics, to cease violating the Flammable Fabrics Act by importing or sellng flammable fabrics in commerce, and falsely representing to customers that they had a continuing guaranty with the Federal Trade Com- Act showed certain mission to the effect that tests required under' the fabrics not to be dangerously flammable; and requiring them to furnish to the Commission witbin five days a list of custOIDcrs to ,,,ham flammable fabrics were sbipped, along "\ith a showing that such customers were notified of the questionable flammable nature of the fabrics; and further requiring them to cease violating the Textie Fiber Products Identification Act by failng to affx required labels to textie products imported or sold in commerce.

CO::lpl\IXT Pursuant to the provisions of the Federal Trade Commission Act the Flammable Fabrics Act and the Textile Fiber Products Identification Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that J oycette Fabrics Corp. , a corporation, and Louis A. Levine and David Sherman, individually and as offcers of said corporation hereinafter referred to as the respondents, hane violated the provisions of said Acts, and the Rules and Regulations promulgated under the Flammable Fabrics Act and the Tcxtile Fiber Products Identification Act, and it a.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 follmys: PARAGRAPH 1. Respondent J oycette Fabrics Corp. is a corporation organized, existing and doing business under.r and by virtue of the laws of the State of )I ew Y Olk. Respondents Louis A. Levine and David Sherman are president and treasurer, respectively, of J oycett8 326 FEDERAL TRADE COc.I.l,nSSIQX DECISIQXS Complaint 64 F.

Fabrics Corp., the corporate respondent. The individual respondents together with the Board of Directors of said corporation, participate in the formulation, direction and control of the policies, acts and practices of the said corporate respondent. All respondents have their offces and principal place of business located at 1450 Broadway, New York, New York.

The respondents are engaged ill the conversion and sale of imported fabrics.

P.A. 2. Subsequent to July 1 , 1954, the effective date of the Flammable Fabrics Act, respondents have sold and offered for sale ill commerce; have ilnpOl'ted into the United States; and have int.roduced, delivered for introduction, transported, and caused to be transported, in commerce; R,nd have transported and caused to be transported for the purpose of sale or deli very after sale, in commeree; as "commerce" is defined in the Flammable Fabrics Act fabric as that term is defined therein, which fabric was, under Section 4 of the Flammable Fabrics Act as amended, so highly fla.mmable as to be dangerous when Vi'orn by individuals. PAR. 3. Respondents, by falsely representing in writing that they have a continuing guaranty under the Flammable Fabrics Act on file with the Federal Trade Commission, have furnished their customers with a false guaranty with respect to certain of the fabrics mentioned in Para.graph 2 hereof, to the effect that reasonable and representative tests made under the procedures provided in Section 4 of the Flammable Fabrics Act, as amended, and the Rules and Regulations promulgated thereunder, show that said fabrics are not, in the f0r111 delivered by respondents, so highly flammable under the provisions of the Flammable Fabrics Act as to be dangerous when worn by individuals. There was reason for respondents to believe that the fabrics covered by such guaranty might be introduced, sold, or transported in commerce in violation of Section 8 (b) of the aforesaid Act and Rule 10(d) of the Rules and Regulations promulgated under such Act.

Said guaranty was false in that respondents did not have such a continuing guaranty on file with the Federal Trade Commission. PAR. 4. The aforesaid acts and practices of respondents were and are in violation of the Flammable Fabrics Act and the Rules and Regulations promulgated thereunder, and as such constitute unfair methods of competition and unfair and deceptive acts and practices -1n commerce, within the intent a.nd meaning of the Federal Trade Commission Act.

PAR. 5. Subsequent to the effective date of the Textile Fiber Products Identification Act on "Larch 3, 1960, respondents have been and JOYCETTE FABRICS CORP. ET AL. 327 325 Decision are now engaged in the introduction, delivery for sale, sale, advertising, and offering for sale, in commerce, and 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 transported, textile fiber products, which have been advertised or offered for sale in commerce; ,md have sold, offered for sale, advertised, delivered, transported, and caused to be transported, after shipment in commerce, textile fiber products, either in their original stat.e or contained in other textile fiber products, as the terms "'commerce, and "textile fiber products" are defined in the Textile Fiber Products Identification Act.

PAR. 6. Certain of said textile fiber products were misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified with the information required under Section 4(b) of the Textile Fiber Products Identification Act, and in the maIDler and form prescribed by the Rules and Regulations promulgated under said Act.

PAR. 7. The aforesaid acts and practices of respondents were and are in violation of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, and as such constitute unfair methods of competition and unfair and deceptive acts and practices ill commerce, within the intent and meaning of the Federal Trade Commission Act.

DECISION AXD ORDER The Commission havil1g heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act, the Flammable Fabrics Act and thc Textile Fibcr 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 executed 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 settlement purposes only and does not constitute an admission by respondents that the law has been violated as set forth jn such complaint, and waivers and provisjons as required by tlle Commission s rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agree- Ord' 64 F.

ment, makes the following jurisdictional findings, and enters the following order:

1. Respondent J oycette Fabrics Corp. is a corporation organized existing and doing business under and by virtue of the laws of the State of New York. Hespondents Louis A. Levine and David Sherman arc president and treasurer, respectively, of J oycctte Fabrics Corp., the corporate respondent. The individual respondents together with the Board of Directors of said corporation, participate in ihe formulation, direction and control of the policies, acts and practices of the said corporate respondent. All respondents have their offces and principal place of business located at 1450 Broadway, New York, New York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents and the proceeding is in the pu b1ie interest.

ORDER abrics Corp., a cor- I. It is ordei'e(l That the respondent Joycette I poration, and its offcers, and Louis A. Le"\ ine and Da \Tid Sherman and respondents individually and as officers of said corporation, representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from: 1. (a) Importing into the United States; or introducing, delivering for (b) Selling, offering for sale, introduction, transporting, or causing to be transported, in commerce, as ';commerce" is defined in the Flalumable Fabrics Act; (c) Tnmsporting or causing to be transported, for the purpose of sale or delivery after sale in commerce tny fabric, which, under the provisions of Section 4 of the said Flamnmble Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individual1s.

P1' ovided, however That nothing contained herein shall affect a, rights afforded to the respondents by Section 11 of the Flammable Fabrics Act.

. Furnishing to any person a guaranty with respect to any fabric which respondents, or any of them, have reason to believe may be introduced, sold or transported in commerce, "\which guaranty represents, contrary to fact, that reasonable and representative tests ma,de under the procedures provided in Section 4 of the Flammable Fabrics Act, as amended, and the Hules and Hegulations thereunder, show and will show that the fn.bric JOYCETTE FABRICS CORP. ET AL. 329 325 Order covered by the guaranty, is not, in thc form delivered or to be delivered by the guarantor, so highly flammable under the provisions of the Flmnmable Fabrics Act as to be dangerous when worn by individuals: Provided, however' That this prohibition shall not be applicable to a guaranty furnishcd on the basis of and in reliance upon, a guaranty to the same effect received by respondents ill good faith signed by and containing the name and address of the person by "\whom the fabric "\vas manufactured or from whom it was received.

II. It is fU1'ther ordered That respondents J oycctte Fabrics Corp., a corporation, and its offcers, and Louis A. Levine and David Sherman, 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 delivery for introduction, sale, advertising or offering for sale, in commerce, or in the transportation or causing to be transported in commerce, or the importation into the Gnitecl States of any textile fiber product; or in connection with the sale, offering for sale, advertising, cle1ivery, transportation or causing to be transported, of any textilc fiber product which has been advertised or offered for sale in commerce; or in connection with the sale, offering for sale, ac1vertising, delivery, transportation or causing to be transported, after shipment in commerce, of any textile fiber product, IV hother in its original state or contained ill other textile fiber products, as the terms "commerce" and "textile fiber product' are dcIined in the Textile Fiber Products Identification Act do fortlmith cease and desist from misbranding textile fiber products by failing to affx labels to such products showing each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act.

III. It i8 further ordered That respondents hereinbefore named furnish to the Federal Trade Commission within five (5) days after service of this order, a special report which: (a) Contains a list of the names and addresses of all of the corporate respondents' customers to whom shipments WQTe made since July 1, 1963, of fabric Style AK 7331 and/or of any other fn,bric which under the provisions of Section .1 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 notificd, in writing the cllstomers of the corporate respondent to whom any of the shipments referred to in subparagraph (a) above were made, as to 224-0GD--70-- .;

Complaint 4 F.

the questionable flammable nature of the fabrics contained in such shipments.

(C) Contains copies of the aforesaid notification to each of the customers referred to in subparagraph (aJ and copies of any and all responses to the aforesaid notification. IV. It ig f1Frther 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 III above which are received by respondents after the due date of the aforesaid special report. V. It further ordered 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.