The 721 Corporation

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

In THe Marrer or THE 721 CORPORATION porne Business 4s BONWIT TELLER CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-879. Complaint, Feb. 11, 1965—Decision, Feb. 11, 1965 Consent order requiring a New York City importer and retailer of wool products to cease violating the Wool Products Labeling Act by misbranding the fiber content of sweaters by labeling sweaters as “60% mohair, 33% wool, 7% nylon,” when such sweaters contained substantially different fibers and amounts than represented, by failing to disclose on labels the percentage of the total fiber weight of wool and other fibers, and by using the term “mohair” on labels to describe certain fibers that were not entitled to such designation.

Complaint Pursuant to the provisions of the Federal Trade Commission Act and of the Wool Products Labeling Act of 1939, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that The 721 Corporation, a corporation doing business as Bonwit Teller, hereinafter referred to as respondent, has violated the provisions of said Acts and the Rules and Regulations promulgated under the Wool Products Labeling Act of 1989, 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 The 721 Corporation is a corporation doing business as Bonwit Teller organized, existing and doing business under and by virtue of the laws of the State of Delaware. Respondent is an importer and retailer of wool products with its office and principal place of business located at 721 Fifth Avenue, New York, New York.

Par. 2. Subsequent to the effective date of the Wool Products Labeling Act of 1939, respondent has introduced into commerce, sold, transported, distributed, delivered for shipment, shipped and offered for sale in commerce as “commerce” is defined in said Act, wool products as “wool product” is. defined therein. Par. 3. Certain of said wool products were misbranded within the intent and meaning of Section 4(a) (1) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled or otherwise identified with respect to the character and amount of the constituent fibers contained therein. Decision and Order 67 F.T.C.

Among such misbranded wool products, but not limited thereto, were sweaters stamped, tagged, labeled or otherwise identified as containing 60% mohair, 33% wool, 7% nylon, whereas in truth and in fact, said sweaters contained substantially different fibers and amounts of fibers than represented.

Par. 4. Certain of said wool products were further misbranded in that they were not stamped, tagged, labeled or otherwise identified as required under the provisions of Section 4(a)(2) of the Wool Products Labeling Act of 1939 and in the manner and form as prescribed by the Rules and Regulations promulgated under said Act. Among such misbranded wool products, but not limited thereto, were certain sweaters with labels on or affixed thereto, which failed to disclose the percentage of the total fiber weight of the wool product, exclusive of ornamentation, not exceeding five per centum of said total fiber weight; of (1) woolen fibers; (2) each fiber other than wool if said percentage by weight of such fiber is five per centum or more; (8) the aggregate of all other fibers.

Par. 5. Certain of said wool products were misbranded in violation of the Wool Products Labeling Act of 1939, in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder, in that the term “mohair” was used in leu of the word “svyool” in setting forth the required fiber content information on labels affixed to wool products when certain of the fibers described as “mohair” were not entitled to such designation, in violation of Rule 19 of the Rules and Regulations under the Wool Products Labeling Act of 1939.

Par. 6. The acts and practices of the respondent as set forth above were, and are in violation of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, and constituted, and now 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. DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondent named in the caption hereof with violation of the Federal Trade Commission Act and the Wool Products Labeling Act of 1989, and the respondent having 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 respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by BONWIT TELLER 137 135 Decision and Order respondent 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 admission by respondent that the law has been violated 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 its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent The 721 Corporation, is a corporation organized, existing and doing business as Bonwit Teller under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at 721 Fifth Avenue, in the city of New York, State of New York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered, That respondent The 721 Corporation, a corporation, doing business under the name of Bonwit Teller or any other name or names, and its officers, representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from introducing into commerce, or offering for sale, selling, transporting, distributing or delivering for shipment in commerce, wool sweaters or any other wool product, as “commerce” and “wool product” are defined in the Wool Products Labeling Act of 1939: 1. Which are falsely or deceptively stamped, tagged, labeled or otherwise identified as to the character or amount of the constituent fibers contained therein.

2. Unless each such product. has securely affixed thereto, or placed thereon, a stamp, tag, label or other means of identification correctly showing in a clear and conspicuous manner each element of information required to be disclosed by Section 4(a) (2) of the Wool Products Labeling Act of 1989. 8. To which is affixed a label wherein the term “mohair” is used in lieu of the word “wool” in setting forth the required information on labels affixed to such wool products unless the fibers described as mohair are entitled to such designation and are present in at least the amount stated.

379-702—7T1——-10 Complaint 67 L.C.

Zt ts further ordered, That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order.