Modelli Imports, LTD.

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

IN THE MATTER OF MODELLI IMPORTS, LTD., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-921. Complaint, July 1965-Decision, July 1965 Consent order requiring a New Yark City importer of wool products to cease violating the Wool Products Labeling Act by falsely labeling sweaters as 100% virgin wool, when in fact, said sweaters contained Complaint 68 F.

substantially different fibers and amounts than represented and by failing in other respects to comply with statutory and regulatory requirements.

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 Modell Imports, Ltd. , a corporation, and Jack Sosland, and Oscar Zinn, 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 Wool Products Labeling Act of 1939, and it appearing to the Commission that a proceeding by it respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondent Model1i Imports, Ltd., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Individual respondents Jack Sosland and Oscar Zinn are officers of the corporate respondent and control, direct and formulate the acts, practices, and policies of the corporate respondent. Respondents are importers of wool products with their office and principal place of business located at 1410 Broadway, New York, New York.

PAR. 2. Subsequent to the effective date of the Wool Products Labeling Act of 1939, respondents have 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. Among such misbranded wool products, but not limited thereto, were sweaters stamped, tagged, labeled or otherwise identified as saidcontaining 100% virgin wool, whereas in truth and in fact, 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 iden- MODELL! IMPORTS, LTD. , ET AL 277 Decision and Ordertified275as 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 name or registered identification number of the manufacturer of the wool product or the name of one or more persons subject to Section 3 with respect to such wool products. PAR. 5. The acts and practices of the respondents 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 respondents named in the caption hereof with violation of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939 , and the respondents 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 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 admission by respondents 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 ModeUi Imports, Ltd. is a corporation organized existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business at 1410 Broadway, in the city of New York, State of New York. Respondents Jack Sosland and Oscar Zinn, are officers of the said corporation and their address is the same as that of the said corporation.

Com plain t 68 F.

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 respondents Modelli Imports, Ltd. , a corporation, and its officers, and Jack Sosland, and Oscar Zinn, 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 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 1939. 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.