Pagoda Silks, Inc.

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In THE MATTER OF PAGODA SILKS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-878. Complaint, Feb. 11, 1965—Decision, Feb. 11, 1965 Consent order requiring a Hawaii importer, manufacturer, and retailer of wearing apparel and scarves—also known as jusi—to cease violating the Flammable Fabrics Act. by importing, manufacturing, and selling articles of wearing apparel made of fabrics which are so highly flammable as to be dangerous when worn.

Complaint 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 Pagoda Silks, Inc., a corporation, and Lutgarda Lessmer and Dallas G. Tessmer, individually and as officers of 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:

Paracrary 1, Respondent Pagoda Silks, Inc. is a corporation duly organized, existing and doing business under and by virtue of the laws of the State of Hawaii. Respondents Lutgarda Tessmer and Dallas G. Tessmer are officers of the corporate respondent and formulate, direct and control the policies, acts and practices of the said corporate respondent.

Respondents are importers, manufacturers and retailers of wearing apparel with their office and principal place of business located at 315 Royal Hawaiian Avenue, Honolulu, Hawaii.

Par. 2. Respondents, subsequent to July 1, 1954, the effective date of the Flammable Fabrics Act, have manufactured for sale, sold and offered for sale, in commerce; have imported into the United States; and have introduced, delivered for introduction, transported and PAGODA SILKS, INC., ET AL. 133 182 Decision and Order 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, articles of wearing apparel, as the term “article of wearing apparel” is defined therein, which articles of wearing apparel were, under Section 4 of the Flammable Fabrics Act, as amended, so highly fiammable as to be dangerous when worn by individuals. Among the articles of wearing apparel mentioned above were scarves, also referred to as jusi.

Par. 3. Respondents, subsequent to July 1, 1954, the effective date of the Flammable Fabrics Act, have manufactured for sale, sold and offered for sale, articles of wearing apparel made of fabric which was, under Section 4 of the Act, as amended, so highly flammable as to be dangerous when worn by individuals, and which fabric had been shipped and received in commerce, as the terms “article of wearing apparel,” “fabric” and “commerce” are defined in the Flammable Fabrics Act.

Among the articles of wearing apparel mentioned above were scarves, also referred to as jusi.

Par. 4. The acts and practices of respondents herein alleged were and are in violation of the Flammable Fabrics Act and the Rules and Regulations promulgated thereunder and as such constitute unfair and deceptive acts and practices and unfair methods of competition in commerce within the intent and meaning of the Federal Trade Commission Act.

DeEcIsIoN AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Bureau of Textiles and Furs proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act and the Flammable Fabrics Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by the respondents that the law has been violated as alleged Decision and Order 67 EVL.C.

in such complaint, and waivers and provisions as required by the Commission’s rules; and The Commission, having reason to believe that the respondents have violated said Acts, and having determined that complaint should issue stating its charges in that respect, hereby issues its complaint, accepts said agreement, makes the following jurisdictional findings and enters the following order:

1. Respondent Pagoda Silks, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Hawaii with its office and principal place of business located at 315 Royal Hawaiian Avenue, city of Honolulu, State of Hawaii. Respondents Lutgarda Tessmer and Dallas G. Tessmer are officers of Pagoda Silks, Inc. and their office and principal place of business is the same as that of said corporation.

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 It is ordered, That respondent Pagoda Silks, Inc., a corporation, and its officers, and respondents Lutgarda Tessmer and Dallas G. Tessmer, individually and as officers of said corporation, and respondents’ 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 (b) Manufacturing for sale, selling, offering for sale, introducing, delivering for introduction, transporting or causing to be transported, in commerce, 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 in commerce; any article of wearing apparel which, under the provisions of Section 4 of the Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals. 2. Manufacturing for sale, selling, or offering for sale any article of wearing apparel made of fabric, which fabric has been snipped or received in commerce, and which, under Section 4 of the Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals. It is further ordered, That the respondents herein shall, within sixty (60) 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 this order. BONWIT TELLER 1385 Complaint