The Schwarzenbach Huber Co., Inc.

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IN THE MATTER OF THE SCH,VARZEKIJACH HUBER CO., INC., ET AL. CONSENT Oiler, ETC. , IN REGARD TO Tile ALLEGED VIOLATION OF THE FEDERAL TRADE COllnnSSION .AXD THE FLA:U)IABLE FABHICS ACTS Docket C-689. Complaint, Jan. 196.4-Decision, Jun. 196.4 * Consent order requiring Kew York City distributors of imported fabrics to cease violating tbe Flammable Fabrics .Ad by importing and sellng- in commerce fabrics so bigbly flammable as to be dangerous when \Yarn. .; Amended April 24 , 1964, herein by eliminating .1jcha('l F. Kopec as a party reopondent.

224-0G8-70-- , , 346 FEDERAL TRADE C01\1.vlISSIOK DECISIONS Complaint 64 F. l'.

IPLAINT Pursuant to the provisions of the Federal Trade COl1Jnission Act and the Flamm ble Fabrics Act, and by virtue of the authority vested in it by said Acts, the Federal Trflc1e Commission, having reason to belie,Te that The Schwarzenbach Huber Co, Inc. , a corporation, and Robert Schwarzenbach Walter J. Br LIl, Kurt O. Trueb, Jerold P. EJden, Mich el F. Kopec and Samuel I. )IancleJ individually and as offcers of the said corporation, hcrcinafter 1'efelted 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 ill that respect as follmrs: PARAGRAPH 1. Respondent The Scln'larzenbach Huber Co. , Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New Jersey. Respondents Hobert Schwarzenbach Walter J. Braun, Kllt O. Trueb, Jerold IJ Elden, Mieh el F. Kopec and Samuel I. Mandel arc offcers of The Schwarzenbach IIuber Co. , Inc. , the corporate respondent. The individual respondents participate in the iorllulation\ direction and control of the acts, practices and policies of said corporation. All respondents have their offces and principal place of business located at '170 Fourth Avenue, New York 1, New York. The respondents are engaged ill the sale and distribution of imported fabrics.

PAR. 2. Respondents, subsequent to July 1 , 1 , the efl'ectiye date of the Flanunable Fabrics Act, have sold and offered for s, in commerce; have imported into the 'United States; and have innoduced, delivered for introduction, transported, and caused to be transported, in commerce; and have transported and caused to be transported foe the purpose of sale or delivery after sale, in commerce; as "commerce" is de.finec1 in the Flammable Fabrics .;-\.ct fabric, as that term is defined therein, which fabric \\' , under Section 4 of the Flmnmable Fabrics Act, as amended, so highly flammable as to be dangerous when worn by individuals. PAR. 3. The aforesaid acts and pracUces of respondents were and are ill violation of the Flammable Fabrics itct and the Hllles and Regulations promulgated thereunder: and as such constitute unfair methods of competition and unfair and deceptive acts and practices in commerce., within the intent and meanl1g of the Federal Traue Commission Act.

THE SCH'VARZEKBACH HUBER CO. , IXC. , ET AL. 347 345 Order DECISlOX AXD ORDER The Commission ha,-ing hereto.afore determined to issue its complaint charging the respondents named in the caption hereof wit 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 io 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 ill the complaint to issue herein, a statement th lt the signing of sftid agreement is for settlement purposes only and does not constitute an admission by respondents that the la,, has been vioh1tecl as set forth in such complaint., and waivers and provisions as required by the Commission s rules; and The Commission, having considered the agreement, hereby accepts same, issues Hs complaint in the form contemplated by said Rgreeand enters the ment,fol1owingmakes the following jurisdictionalorder:findings, 1. The Schwarzenbach Huber Co. , Inc., is fl corporation organized, existing and doing business under and by virtue of the laws of the State of New Jersey, with its offce and principal place or business located at 470 Fourth Avenue, XC\y York, l\ew York. Respondents Robert Schwarzenbach, \Valter J. Braun, Kurt O. Trueb, Jerold P. Elden Iichael F. Kopec, and Samuel 1. ;VIandel are offcers of said corporation and their address is the same as that of said corporation.

2. The Federal Trade Commission has jurisdiction of the sub ject matter of this proceeding and of the respondents and the pro ceeding is in the public interest.

ORn1' I. It is ordered That the respondent The Schwarzenbach Huber Co. , Inc., a corporation, and its offcers, and respondents, Robert Schwarzenbaeh, \Valter .J. Braun, Kurt O. Trueb, Jerold P. Elden Michael F. Kopec, and Samuel I. Iandel, individual1Jy, and as oflicers of said corporation, and respondents ' representati Yes, agents ancl employees, directly or through any corporate or ot1her d(wice do forthwith cease and desist from:

(a) Importing into the United States; or (b) Selling, offering for sale, introducing, deliycring for introduction, transporting, or causing to be transported, in COil- 348 Fr:DERAL TRADE CO LMISSIO DECISIONS Onler 64 F.

merce as ':commerce': is defined in the Flammable Fabrics Act; or (c) 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 said Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals.

II. It i8 further ordered That respondents hereinbdore 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 since July 1, 1963, of fabric Style AI\ 777 and/or 4958 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 notiflCd in writing the customers of the corporate respondent to whom any of t.he shipments referred to in subparagraph (a) above were made, as to the questionable flammable nature of the fabrics contained in such shipments.

(e) 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 further ordered That respondents hereinbdore named shall forward to the COllission, within two (2) days after receipt thereof, copies of any and aJ! responses to the notification required by Subparagraph (c) of Paragraph II above which are. received by respondents aft.er the due date of the aforcsaid special report. IV. It is 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.

ORDER GRANTING PETITION To A lend DECISION AKD Onder ISSUED January 21, 1964 ArmI. 24 , 1864 1Iichael F. ICopec, an individual respondent in the above-captioned matter has filed a petition for amcndment of the consent order to cease and desist issued on January 21, 1964, so as to delete all ref- HAL SAM PRODUCTS CO. 349 345 Complaint erence to him as a respondent. Good cause having been 8110"111 for this relief and it appearing that complaint counsel has no objection It is ordered That the consent order issued January 21. 196.1, be and it hereby is, amended by eliminating )iichael F. Kopec as a party respondent and by deleting all reference to him.