C. M. Gourdon, Inc.

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

manner and form in which they have complied with this order. IN 'rhe MATTER OF C. M. GOURDON, INC., ET AL.

CO:-SE:oT ORDER , ETC. I:\ REGARD TO THE ALLEGED VIOLATION O"F' THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-1171. Complaint, F'eb. 196'7- Decisiun, Feb. , 1967 Consent order requiring a New York City distributor of fabrics to cease importing or selling dangerously flammable fabrics and furnishing false guaranties to its customers.

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 C. M. Gourdon, Inc., a corporation and Charles M. Gourdon, individually and as an offcer of the 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:

PARAGRAPH 1. Respondent C. 11. Gourdon, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Respondent Charles :'d. Gourdon is the president and treasurer of the said corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporation.

The respondents are engaged in the sale and distribution of fabrics, with their offce and principal place of business located at 58 West 40th Street, New York, New York. PAR. 2. Respondents, subsequent to July 1 , 1954, the effective date of the Flammable Fabrics Act, have sold and offered for sale in commerce; have imported into the united States; and have Decision and Order 71 F. introduced, delivered for introduction, transported, and 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, fabric, as that term is defined therein, which fabric was under Section 4 of the Flammable Fabric Act, as amended, so highly flammable as to be dangerous when worn by individuals. PAR. 3. Respondents subsequent to July 1, 1954, have furnished their customers with a guaranty with respect to the fabric, mentioned in Paragraph Two hereof, to the effect that reasonable and representative tests made under the procedures provided in Section 4 of the Flammable Fabrics Act, as amended, and the Rules and Regulations promulgated thereunder, show that said fabric is not, in the form delivered by respondents, so highly flammable under the provisions of the Flammable Fabrics Act as to be dangerous when worn by individuals. There was reason for respondents to believe that the fabric covered by such guaranty might be introduced, sold, or transported in commerce. Said guaranty was false in that with respect to some of said fabric, respondents have not made such reasonable and representative tests.

PAR. 4. The aforesaid acts and practices of respondents were and are in violation of the Flammable Fabrics Act and the Rules 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 meaning of the Federal Trade Commission Act.

DECISION 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 C. M. GOURDON , INC. , ET AL. 157 155 Order not constitute an admission by the respondents 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 respondents have violated the Federal Trade Commission Act and the Flammable Fabrics Act, 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 C. M. Gourdon, Inc., is a corporation organized existing and doing business under and by virtue of the laws of the State of J\ ew York, with its principal offce and place of business located at 58 West 40th Street, New York, Xew York. Respondent Charles M. Gourdon is an offcer of the corporate respondent and his address is the same as that of said corporate respondent.

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 C. M. Gourdon, Inc., and its offcers, and Charles M. Gourdon, individually and as an offcer of said corporation, and respondents ' representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from:

(a) Importing into the Lnited States; or (b) 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 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. It is further ordered That respondents C. M. Gourdon, Inc., and its offcers, and Charles M. Gourdon, individually and as an offcer of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from furnishing a false guaranty that any fabric is not so highly flammable as to be dangerous when 158 FEDERAL TRADE COMMISSION DECISIOKS Complaint 71 P.

worn by individuals when respondents have reason to believe such fabric may be introduced, sold, or transported in commerce. 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.