Kabat Textile Corporation

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

Paragraph I of this order.

Ix Tile IATTER OF KABAT TEXTILE CORPORATION ET AL.

CONSENT ORDER , ETC. , IX REG..ARD TO THE ALLEGED VIor ATION OF THE :FEDERAL TRADE CO::DIISSIOX AND THE Flat\IlIABLE FABRICS ACTS Docket C-687. Complaint, Jan. 1964-Decision, Jan. , 1964 CODsent order requiring ew York City distributors of imported fabrics to cease violating the Flammable Fabrics Act by importing and selling in commerce fabrics so highly flammable as to be dangerous when worn. COl\IPLAI1.n 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. l:Cabat Textile Corporation, a corporation, and :Milton J. Adelman, individually and as an offcer of the said corporation, hereinafter referred to as respondents, have violated the pro- 340 FEDERAL 'rrade CO L\1JSSIO:\ DECISIOr\S Decision 64 Ji.

visions of sa.id 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 \,ould be in the public interest, hereby issues its complaint, stating its charges in that respect as follows:

PARAGRAPH 1. Respondent ICabat Textile Corporation, is a corporation organized, existing and doing business under and by virtue of the laws of the State of X ew York. Respondent Iilton J. Adelman is president of Kabat Textile Corporation, the corporate respondent. 1'118 individual respondent formulates, directs and controls the n('ts practices and po1ieies of said corporation. The respondents IWT8 their of!ices and principal pinee of business located at 215 West 40th Street, K e"\y Yor1\, X e,,- York.

The respondents are engaged in the sale and distribution of imported fabrics.

PAR. 2. H.esponclents, subsequent to July 1 , 195- , the effective date of the Flammable Fabrics Act, have solei and of!'cl'ed for sale, in commerce; have imported into the L 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 saJe or delivery after sale" in C0111merce; as "commerce " is defined in the Fhmmable 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 "o1'n by indiyic1uals. m. 3. The aforesaid acts and practices of respondents "ere and are in violation of the FbmlnabJe Fabrics ..\.ct ancll llles and Regulations promhlgatec1 thereunder, and as such constitute unfair methods of competition and unfair and deceptive acts flnd practices ilt commerce, within the intent and meaning of the Federal Trac1i: Commission Act.

DECISION .,\XD ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption 11ereof "ith violation of the Federal Trade Commission Act ami the Flammable Fabries Art and the respondents having been served "\with notice 0:( said determinat ion and with a copy of the complaint ille. Commission intenc1ed to issue, together "\with a proposed fornl of onler; flnc1 The respondents flHJ con113cl for the Commission having therenfjpr execllted an agreement containing a consent order. an admission by respondents of all the jl1risc1ictiol1f11 facts set forth in the compbiIlt io jssup herein, a statement that the signing- of said agrrenwnt is for KABAT TEXTILE CORPORATION ET AL. 341 339 Order settlement purposes only and does not constitute an admission by respondents that the Jaw has been violated as set forth in such C01l plaint, and waivers and provisions as re(luired by the COlll1ission rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint ill the form contemplated by said agree menr, makes the following jurisdictiollal findings, and enters the follmving order:

1. lCabat Textile Corporation is a corporation organized, existing and doing business under and by yirtlle of the laws of the State of :New York with its offce and principal place of business located at 215 'IV est 40th Street, K ew Yark, :New York. Respondent :\IiJton J. Adelman is an offcer of Kabat Textile Corporation and his address is the same as that of the said corporation. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents and the proceeding is ill the public interest.

ORDER I. It is mylend That the respondent Kabat Textile Corporation a corporation, and its offcer and respondent, )IiJton J. Adelman individually and as an offcer of said corporation, and respondents representatives, agents and employees, directly or through any corporate or other device, do forthwith cease a.nd desist from: (a)(b)ImportingSelling, offeringinto the forl:nitedsale,States;introducing,or delivering for int.production, transporting, or causing to be transported, in commerce, as "commerce" is defmed in the Flammable Fabrics Act; or (c) Transporting or causing to be transported, for the purpose of sale or delivery a.after sale in commerce a.ny fabric which, under the provisions of Section 4 of the said Flammable Fabrics Act, as amended, is so highly flammable as t.o be dangerous when "Worn by individuals.

P?'ovided, h01l)ever That nothing contajned herein shall affect any rights afforded to the respondents by Section 11 of the Flammable :Fabrics Act.

II. It iR 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' cllstomers to whom shipments were made Complaint 64 F.

since July 1 , 1963, of fabric Style AK 777 and/or Quality 745 or 7'8 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 dangerolls whe.n 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 ill such shipments.

(c) Contains copies of the aforesaid notification to each of the customers referred to in subparagraph (a) and copies of any and all responses to the aforesaid notification. III. It is fUTthe,. ordered That respondents shall forward to the Commission, "\within two (2) da.ys after receipt thereof, copies of any and al1 responses to the notification required by Subparagraph (c) of Paragraph II above ,vhieh are received by respondents after the due elate of the aforesa.id special report. IV. It is j""their' onleJ'ed That the respondents herein shall, within five (5) days after service upon them of this order, Jie ,with the Commission a report in writing setting forth in detail the manller and form in which they have complied with Paragraph I of this