Nichimen Company, Inc., et al.

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IN THE lVV..TIR OF NICHL\1EN CO,MPANY, INC., ET AL.

CONSENT ORDER ETC. , IN REGARD '1'0 THE ALLEGED VTOLATIOX OF Tile :FEDEIL\L TRADE COThBIISSION A D THE FLA1\BfABLE FABRICS ACTS Docket C-684, Complaint, Jan. 1964 Decision, Jan. , 1964 Consent order requiring a 'tew York City importer to cease violating the Flammable Fabrics Act by importing into the United States and sellng in commerce fabric which was so highly flammable as to be dangerous wlJen worn.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Flammable Fabrics Act, and by virtue of thc authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Nichimen Company, Inc. , a corporation, and Shunji Uyeda, individually and as an offcer of the said corporation hereinafter referred to as respondents, have violated the provisions of said Acts, and the Rules and Regulations 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 Nichimen Company, Inc., is a corporation organized, existing and doing business under and by virtue of KICHIMBN CO. , IXC. , ET AL. 331 330 Decision the laws of the State of New York. Respondent Shunji Uyeda is the president of Nichimen Company, Inc. , the corporate respondent. The individual respondent formulates, directs and controls the acts practices and policies of said corporation. The respondents have their offecs and principal place of business located at 60 Broad Street, New York, New York.

The respondents are engaged in the importation into the United States of fabrics and in the sale and distribution of such imported fabrics.

PAR. 2. Respondents, subseqnent 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, ill commerce; and have transport.ed and caused to be trfl,nsported for the purpose of sale or delivery after sale, in com meree; as "commerce:' is deii.ned 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 flammable as to be dangerous when worn by indi vid uals. PAR. 3. The aforesaid acts and practices of respondents were and are in viohltion of the Flammable Fabrics Act and the Rules and Regulations promulgated thereunder, and fls such constitute unfair methods of competition and unfait, and deceptive acts and prac. tices in commerce, within the intent and meaning of the Federal Trade Commission Act.

DECISION A:-D ORDER The Commission having heretofore determined to issue its C01n pla.int charging the respondents named in the caption hereof with violation of the Fcdcral Trade Commission Act and the Flamllab1e Fabrics Act and the respondents ha.ving 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 c.onsent order, an admis. sion 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 adlnission by respondents that the law has beell violated as set forth in such complaint, and waivcrs and provisions as required by the Commission s rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agree- 332 FEDERAL 1'TRADE COMMISSION DECISIONS Order 64 F. T.

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

1. Respondent Nichimen Company, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of .I ew York, with its omce and principal place of business located at 60 Broad Street, New York, .I ew York. Respondent Shunji Uyeda is an offcer of said corporation and his address is the same as that of said corpora.tion. 2. 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 T. It is oi'deJ'ed That the respondent ichimen Company, Inc. , a corporation, and its offcer, and respondent, Shunji Uyeda, individually and as an offcer of said corporation, and respondents ' representatives, agents and employees, directly or through any corporate 01' other device, do forthwith cease a.nd desist from: (a)(b) ImportingSelling, offeringinto theforL'nitedsale, States;introducing,or delivering for introduction, transporting, or causing to be transported, in conllnerce, as "commerce is defined in the Flammable Fabrics Act; or (c) Transpol'tingor causing to be transported: for the purpose of sale or delivery after sale in commerce any fabric which, under the provisions of Section 4 of the said Flammable Fabrics Act, as amended, is so highly flammable as to be da.ngerous when worn by individuals.

P?' ovided, houeve?' That nothing contained herein shall affect any rights afforded to the respondents by Section 11 of the Flam mable Fabrics Act.

II. It is /'u?,thel' o)ylered That responclents hereinbefore named fnrnish to the Federal Trade Commission within 5 days after service of this order n. special report ,which:

(a) Contains" list of the names and addresses of all of the corporate respondents' customers to \\hom shipments y,ere made, since July 1, 1963 , of fabric Style \.K 4100 and/or AI\ 7i7 and/or of any other fabric which under the provisions of Section 4 of the said Flmnmable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by in clividllals.

S. SHAMASH & SO , INC. , ET AL. 333 330 Complaint (b) Shows that respondents have notified in writing the customers of the corporate respondent to "\yh011 any of the ship ments 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 the aforesaid notification to each of the customers referred to in subparagraph (a) and copies of ny and all responses to the aforesaid notificat.ion. III. It is f""thel' ordered That respondents hereinbefore named shah forward to the Commission, within two (2) days after receipt thereof, copies of a,ny and all responses to the notification required in Subparagraph (c) of Paragraph II above which are received by respondents after the due date of the aforesaid special report. IV. It is further oJ'dated That the respondents hereinbefore named shall, within five (,J) clays a.after se.lTice upon them of this order, file with the Commission a report in writing setting forth jn detail the manner fillCl form in "\yhieh t.hey have complied ,With Pamgraph I of this order.