Benjamin D. Kalin

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IN THE MATTER OF BENJAMIN D. KALIN TRADING AS KALIN' S FURS AND FASHIONS, ETC.

CONSENT ORDER, ETQ., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket C-lOBS. Complaint, Aug. 1966 Decision, Aug. , 1966 Consent order requiring a Sioux City, Iowa, retail furrier to cease misbranding, falsely invoicing, and deceptively advertising its fur products. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to beheve that Benjamin D. Kahn, an individual trading as Kahn s Furs and Fashions, and Kalin, hereinafter referred to as respondent, has violated the provisions of said Acts and the Rnles and Regulations promulgated under the Fur Products Labeing 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: PARAGRAPH 1. Respondent Benjamin D. Kalin is an individual trading as Kalin s Furs and Fashions, and Kalin Respondent is a retailer of fur products with his offce and principal place of business located at 522 Nebraska Street, Sioux City, Iowa.

PAR 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9, 1952, respondent has been and is now engaged in the introduction into commerce, and in the sale, advertising, and offering for sale in commerce, and in the transportation and distribution in commerce, of fur products; and has sold KALIN S FURS AND FASHIONS, ETC. 499 498 Complaint advertised, offered for sale, transported and distributed fur products which have been made in whole or in part of furs which have the terms commercebeen shipped and received in commerce, as fur" and "fur product" are defined in the Fur Products Labeling Act.

PAR. 3. Certain of said fur products were misbranded in that they were not labeled as required under the provisions of Section 4 (2) of the Fur Products Labeling Act and in the manner and form prescribed by the Rules and Regulations promulgated thereunder.

Among such misbranded fur products, but not Jimited thereto, were fur products without labels, and with labels which failed: 1. To show the true animal name of the fur used in the fur product.

2. To disclose that the fur contained in the fur product was bleached, dyed, or otherwise artificially colored, when such was the fact.

3. To show that the fur product was composed in whole or in substantial part of paws, tails, bellies, or waste fur, when such was the fact.

PAR. 4. Certain of said fur products were misbranded in violation of the Fur Products Labeling Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects:

(a) The term "natural" was not used on labels to describe fur products which were not pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Rule 19 (g) of said Rules and Regulations.

(b) The disclosure that fur products were composed in whole , tails, be1les, sides, fianks, gi1s or in substantial part of paws ears, throats, heads, scrap pieces or waste fuy, where required was not set forth on labels, in violation of Rule 20. of said Rules and Regnlations.

(c) Labels affxed to fur products did not comply with the minimum size requirements of one and three-fourths inches by two and three-fourths inches, in violation of Rule 27 of said Rules and Regulations.

(d) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was not completely set out on one side of labels, in violation of Rule 29 (a) of said Rules and Regulations. (e) Information required under Section 4 (2) of the Fur Prod- Complaint 70 F.

ucts Labeling Act and the Rules and Regulations promulgated thereunder was not set forth legibly on labels, in violation of Rule 29 (a) of said Rules and Regulations.

(f) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was set forth in handwriting on labels, in violation of Rule 29 (b) of said Rules and Regulations. (g) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was not set forth in the required sequence, in violation of Rule 30 of said Rules and Regulations. (h) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was not set forth separately on labels with respect to each section of fur products composed of two or more sections containing different animal furs, in violation of Rule 36 of said Rules and Regulations.

0) Required item numbers were not set forth on labels, in violation of Rule 40 of said Rules and Regulations. PAR. 5. Certain of said fur products were falsely and deceptively invoiced by the respondent in that they were not invoiced as required by Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated under such Act. Among such falsely and deceptively invoiced fur products, but not Jimited thereto, were fur products covered by invoices which failed;

1. To show the true .animal name of the fur used in the fur prod uct.

2. To show the country of origin of imported furs used in fur products.

PAR. 6. Certain of said fur products were falsely and deceptively invoiced with respect to the name or designation of the animal or animals that produced the fur from which the said fur products had been manufactured, in violation of Section 5 (b) (2) of the Fur Products Labeling Act.

Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products which were invoiced Broadtail" thereby implying that the fur products contained therein were entitled to the designation "Broadtail Lamb" when in truth and in fact they were not entitled to such designation. PAR. 7. Certain of said fur products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act in KALIN S FURS AND FASHIONS, ETC. 501 498 Complaint that they were not invoiced in accordance with the Rules and Regulations promulgated thereunder in the following respects: (a) Information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was set forth on invoices in abbreviated form in violation of Rule 4 of said Rules and Regulations. (b) The term "Dyed Broadtail-processed Lamb" was not set forth on invoices in the manner required by law, in violation of Rule 10 of said Rules and Regulations.

(c) The term "natural" was not used on invoices to describe fur products which were not pointed, bleached, dyed, tip-dyed or otherwise artificially colored, in violation of Rule 19 (g) of said Rules and Regulations.

(d) Required item numbers were not set forth on invoices, in violation of Rule 40 of said Rules and Regulations. PAR 8. Certain of said fur products were falsely and deceptively advertised in violation of the Fur Products Labeling Act in that certain advertisements intended to aid, promote and assist, directly or indirectly, in the sale and offering for sale of such fur products were not in accordance with the provisions of Section 5 (a) of the said Act.

Among and included in the aforesaid advertisements, but not limited thereto, were advertisements of respondent which appeared in issues of the Sioux City Sunday Journal, a newspaper published in Sioux City, Iowa.

Among such false and deceptive advertisements, but not limited thereto, were advertisements which failed to show the true animal name of the fur used in the fur product. PAR. 9. By means of the aforesaid advertisements, and others of similar import and meaning not specifically referred to herein respondent falsely and deceptively advertised fur products in violation of the Fur Products Labeling Act in that the said fur products were not advertised in accordance with the Rules and Regulations promulgated thereunder in the following respects: (a) The term "Dyed Broadtail-processed Lamb" was not set forth in the manner required, in violation of Rule 10 of the said Rules and Regulations.

(b) The term " natural" was not used to describe fur products which were not pointed, bleached, dyed, tip-dyed or otherwise artificially colored, in violation of Rule 19 (g) of the said Rules and Regulations.

(c) An parts of the information required under Section 5 (a) , DecisivTI and Order 70 F.

of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder were not set forth in type of equal size and conspicuousness and in close proximity with each other, in violation of Rule 38 (a) of the aforesaid Rules and Regulations. PAR. 10. By means of the aforesaid advertisements and others of similar import and meaning not specifically referred to herein respondent falsely and deceptively advertised fur products in that certain of said fur products were falsely or deceptively identified with respect to the name or designation of the animal or animals that produced the fur from which the said fur products had been manufactured, in violation of Section 5 (a) (5) of the Fur Products Labeling Act.

Among such falsely and deceptively advertised fur products but not limited thereto, were fur products advertised as "Dyed Broadtail Lamb" when the fur contained in such product was, in fact Dyed Broadtail-processed Lamb.

PAR. 11. By means of the aforesaid advertisements and others of similar import and meaning not specifically referred to herein respondent falsely and deceptively advertised fur products in that certain of said advertisements contained the name or names of the animal or animals other than those producing the fur contained in the fur product, in violation of Section 5 (a) (5) of the Fur Products Labeling Act.

PAR. 12. In advertising fur products for sale as aforesaid, respondent made pricing claims and representations of the types covered by subsections (a), (b), (c), and (d) of Rule 44 of the Regulations under the Fur Products Labeling Act. Respondent in making such claims and representations failed to maintain full and adequate records disclosing the facts upon which such claims and representations were based, in violation of Rule 44 (e) of said Rules and Regulations.

PAR. 13. The aforesaid acts and practices of respondent, as herein alleged, are in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder and constitute unfair and deceptive acts and practices and unfair methods of competition in commerce under the Federal Trade Commission Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished there- KALIN S FURS AND FASHIONS , ETC. 503 498 Decision and Order after 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 respondent with violation of the Federal Trade Commission Act and the Fur Products Labeling Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent 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 respondent that the law has been violated as alleged in such complaint, and waivers and provisions as required by the Commission s rules; and The Commission, having reason to believe that the respondent has violated the 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 Benj amin D. Kalin is an individual trading as Kalin s Furs and Fashions, and Kalin, with his offce and principal place of business located at 522 Nebraska Street, Sioux City, Iowa.

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 Benjamin D. Kahn, an individual trading as Kalin s Furs and Fashions, and Kalin, or under any other name, and respondent's representatives, agents and employees, directly or through any corporate or other- device, do forthwith cease and desist from introducing into commerce, selling, advertising or offering for sale in commerce, or transporting or distributing in commerce, any fur product; or from sellng, advertising, offering for sale, transporting or distributing, any fur product which is made in whole or in part of fur which has been shipped and received in commerce, as the terms "commerce fur" and "fur product" are defined in the Fur Products Labehng Act:

A. Unless there is securely affxed to each such product a label showing in words and in figures plainly legible all of the information required to be disclosed by each of the Decision and Order 70 F.

subsections of Section 4 (2) of the Fur Products Labeling Act.

B. To which fur product is affxed a label required by Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder:

1. Which fails to set forth the term "natural" as part of the information required to be disclosed on such label under the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder, to describe a fur product whicb is not pointed, bleached, dyed, tip-dyed or otherwise artificially colored.

2. Which fails to disclose that such fur product is , tails composed in whole or in substantial part of paws bellies, sides, flanks, gins, ears, throats, heads, scrap pieces or waste fur.

3. That does not comply with the minimum size requirements of one and three-fourths inches by two and three-fourths inches.

4. Which fails to completely set out information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations thereunder on one side of such label.

5. Which fails to set forth information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations thereunder in a legible manner in letters of equal size and conspicuousness. 6. Which sets forth information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in handwriting.

7. Which fails to set forth information under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in the sequence required by Rule 30 of the aforesaid Rules and Regulations.

8. Which fails to set forth separately on a Jabel attached to any such fur product composed of two or more sections containing different animal fur the information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder with respect to the fur comprising each section.

KALIN S FURS AND FASHIONS ETC. 505 498 Decision and Order 9. Which fails to set forth the item number or mark assigned to each such fur product.

It is further ordered That respondent Benjamin D. Kalin, an individual trading as Kalin s Furs and Fashions, and Kalin, or under any other name, and respondent's representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction, into commerce, or the sale advertising, or offering for sale in commerce, of any fur product; or in connection with the sale, advertising, offering for sale, transportation or distribution, of any fur product which is made in whole or in part of fur which has been shipped and received in commerce, as the terms "commerce fur" and Hfur product" are defined in the Fur Products Labeling Act do forthwith cease and desist from:

A. Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoices, as the term "invoice" is defined in the Fur Products Labeling Act, showing in words and figures plainly legible all the information required to be disclosed in each of the subsections of Section 5 (b) (1) of the Fur Products Labeling Act. 2. Setting forth on invoices pertaining to fur products any false or deceptive information with respect to the name or designation of the animal or animals that produced the fur contained in such fur product. 3. Setting forth information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form.

4. Failing to set forth the term "Dyed Broadtail-processed Lamb" in the manner required where an election is made to use that term instead of the words "Dyed Lamb.

5. Failing to set forth the term "natural" as part of the information required to be disclosed on invoices under the Fur Products Labeling Act and Rules and Regulations promulgated thereunder to describe fur products which are not pointed, bleached, dyed, tip-dyed or otherwise artificially colored.

6. Failing to set forth on invoices the item number or mark assigned to each such fur product.

B. Falsely or deceptively advertising fur products through the use of any advertisement, representation, public an- Decision and Order 70 F. T. noun cement or notice which is intended to aid, promote or assist, directly or indirectly, in the sale, or offering for sale of any fur product, and which:

1. Fans to set forth in words and figures plainly legible all the information required to be disclosed by each of the subsections of Section 5 (a) of the Fur Products Labeling Act.

2. Falsely or deceptively identifies any such fur product as to the name or designation of the animal or animals that produced the fur contained in the fur product. 3. Sets forth the name or names of any animal or animals other than the name of the animal producing the furs contained in the fur product as specified in the Fur Products Name Guide, and as prescribed by the Rules and Regulations.

4. Fans to set forth the term "Dyed Broadtan-processed Lamb" in the manner required where an election is made to use that term instead of the words "Dyed Lamb, 5. Fans to set forth the term "natural" as part of the information required to be disclosed in advertisements under the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe fur products which are not pointed, bleached, dyed, tip-dyed or otherwise artificially colored.

6. Fails to set forth all parts of the information required under Section 5 (a) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in type of equal size and conspicuousness and in close proximity with each other.

C. Failing to maintain full and adequate records disclosing the facts upon which pricing claims and representations of the types described in subsections (a), (b), (c), and (d) of Rule 44 of the Rules and Regulations promulgated under the Fur Products Labeling Act, are based. It is further o1'dered That the respondent herein shall, within sixty (60) days after service upon him of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which he has complied with this order. MCDONALD & SON GOLF CO. 507 Complaint