Walter Strassburger & Co., Inc.

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

Paragraph I of this order.

THE )IATTER OF WALTER STRASSBURGER & CO., INC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOL\TION OF Tile FEDERAL TRADE CO DnSSION AND THE l'LAMMABLE FABRICS ACTS Docket C 68G. Compla' int, Jan. 196h-Decision, Jan. , 1.964 Consent order requiring Kew York City importers of fabrics to cease violating the Flammable Fabrics .Act by importing and sellng in commerce fabrics so higbly flammable as to be dangerous when worn. C01\PL.HNT 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 'Walter Strassburger & Co., Inc., a corporation, and ,Valter Strassburger, individually and as an offcer of the said corporation, hereinafter referred to as re,spondents, 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 WALTER STRASSBURGER & CO. , I:\C. , ET AL. 337 336 Decision in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

P ARAGRAPII 1. Respondent W alter Strassburger & Co., Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Respondent Waller Strassburger is president and treasurer of "Walter Strassburger & Co., Inc., the corporate respondent. The individual respondent participates 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 180 Madison Avenue :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, subsequent to July 1, ID54, the effective date of the Flammable Fabrics Act, have sold and offered for sale, in COllllnerCe; have imported into the LTnited States; and ha.ve 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 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 individuals. PAR. 3. The aforesaid acts and practices of respondents were and are in viola:tion of the Flamma.bJc Fabrics Act and the Rules and Regulations promulgated thereunder, and as such constitute unfair methods of competition and unfair and deceptive ads and practices in commerce, within the intent and meaning of the Federal Trade Commission Act.

DECISION AND ORDER The Commission having heretofore determined to issue its C011plaint charging the respondents named in the ca.ption hereof ith violation of the Federal Trade Commission Act, and the Flammable Fabrics Act, and the respondents having bee.n 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 acl- 338 FEDERAL TRADE CO"-DlISSImr DECISIO Decision mission 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, having considered the agreement, hereby accepts same, issues its complaint ill the form contemplated by said agree. ment, makes the following jurisdictional findings, and enters the following order:

1. Respondent, IV' alter Strassburger & Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 180 fadison A venue, in the city of New York State of ew York.

Respondent ,V alter Strassburger is an officer of said corporation a.nd his address is the same as that of said corporatlon. 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.

O1WER I. It is Oi'dei' That the respondent "Talter Strassburger & Co. Inc. , a corporation, and its offcers, and respondent 'Valter Strassburger, individually and as an oilc.er of said corporation, and respondents' representatives, agents and employees, directly or through Rny corporate or other device, do forthwith cease and desist from: (a) Importing into the United States; or (b) Selling, offering for sale, introducing, delivering for introduction, transporting, or causing to be transported, in commerce, as "commerce" is defined in the FJammable Fabrics Act; (c) Transporting or causing to be transported, for the purpose of sale or delivery after sale in commerce, any fabric which under the pl'visions of Section 4 of the said Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals.

Provided, however That nothing contained herein shall affect any rights afforded to the respondents by Section 11 of the Flammable Fabrics Act.

II. It is further oJ'dered That respondents hereinbefore named furnish to the Federal Trade Commission within 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 were made KABAT TEXTILE CORPORATION ET AL. 339 336 Complaint since July 1, 1063, of fabric Style AK 777 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 questionrtble flammable nature of the fabrics contained in such shipments.

(c) Contains copies of the aforesaid notification to each of the customers referred to ill subparagraph (a) and copies of any and all responses to t.he aforesaid notification. III. It is JUTther 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 a.after the due date of the aforesaid special report. IV. It is JUTther ordered That the respondents hereinbefore named shall, within Jive (5) dtlys after service upon t.hem 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