Galaxy Costume Corporation

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IN THE MATTER OF GALAXY COSTUME CORPORATION ET AL.

SENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COM MISSION AND THE FlJR PIWDUCTS LABELING ACTS Docket C-1183. Complaint, Mar. 11, 1.967-Dec' ision, Mar. 14, .16'7 Consent order requiring a Xew York City manufacturing furrier to cease misbranding and falsely invoicing its fur products. COMPLAINT Pursuant to the pmvisions 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 believe that Galaxy Costume Corporation a corporation, and Sam Weil, individually and as an offcer of said corporation, and Louis Baron, individually and as an employee of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Fur Products Labeling 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 Galaxy Costume Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of '\ew York. Respondent Sam Weil is an offcer of said corporation and respondent Louis Baron is an employee of said corporation, They GALAXY COSTUME CORP. ET AL. 329 328 Complaint formulate, direct and control the policies, acts and practices of said corporation.

Respondents are manufacturers of fur products with their offce and principal place of business located at 225 West 37th Street, ;-ew York, New York.

PAR. 2. Subsequent to the efiective date of the Fur Products Labeling Act on August 9, J 952, respondents have been and are no\v engaged in the introduction into c:commerce, and in the manufacture for 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 have manufactUl' ed for sale, sold, advertised, ofiered for sale, transported and distributed fur products which have been made in whole or in part of furs "which have been shipped and received in commerce as the terms "commerce 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 falsely and deceptively labeled to show that fur contained therein was natural, when in fact such fur was pointed bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Section 4 (1) of the Fur Products Labeling Act. PAR. 4. 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 limited thereto were fur products with labels which failed to disclose that the fur contained in the fur product was bleached, dyed, or otherwise artificially colored, when such was the fact. PAR. 5. 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 inasmuch as required item numbers \were not set forth on labels, in violation of Rule 40 of said Rules and Regulations.

PAK 6. Certain of said ful products were falsely and deceptively invoiced by the respondents in that they were not invoiced as required by Section 5 (b) (J) 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 limited thereto, were fur products covered by invoices which failed to disclose that the fur contained in the fur products was Decision and Order 71 F.

bleached, dyed, or otherwise artificially colored when such was the fact.

PAR. 7. Certain of said fur products were falsely and deceptively invoiced in that said fur products were invoiced to show that the fur contained therein was natural, when in fact such fur was pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Section 5 (b) (2) of the Fur Products Labeling Act.

PAR. 8. Certain of said products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act in that they were not invoiced in accordance with the Rules and Regulations promulgated thereunder inasmuch as required item numbers were not set forth on invoices, in violation of Rule 40 of said Rules and Regulations.

PAR. 9. The aforesaid acts and pnctices of respondents, 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.

DECISIO:- AND ORDER The Federal Trade Commission ha'.'ing 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 Fur Products Labeling 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 .i urisdictional 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 in such complaint, and \vaivers 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 GALAXY COSTCME CORP. ET AL. 331 328 Decision and Order complaint, accepts said agreement, makes the following jurisdictional findings, and enters the following order: 1. Respondent Galaxy Costume Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 225 West 37th Street, :' ew York, New York. Respondent Sam Weil is an oflcer of said corporation and respondent Louis Baron is an employee of said corporation and their address 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 respondents Galaxy Costume Corporation a corporation, and its offcers, and Sam Weil, individually and as an offcer of said corporation, and Louis Baron, individually and as an employee of said corporation, and respondents' representatives, agents 2nd employees, directly or through any corporate or other device, in connection with the introduction, or manufacture for introducbon, into commerce, or the sale, advertising or offering for sale in commerce, or the transportation or distribution in commerce, of any fur product; or in connedion with the manufacture for sale, 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 "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. :Vlisbranding any fur product by:

1. Representing directly or by implication on a label that the fur contained in such fur product is natural when the fur contained therein is pointed, bleached, dyed, tip-dyed, or otherwise artificially colored. 2. Failing to affx a label to such fur product showing in words and in figures plainly legible all of the information required to be disclosed b), each of the subsections of Section 4 (2) of the Fur Products Labeling Act. 3. Failing to set forth on a label the item number or mark assigned to such fur product.

Complaint 71 F.

B. Falsely or deceptively invoicing any fur product by: 1. FaHing to furnish an invoice, 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 by each of the subsections of Section 5 (b) (1) of the Fur Products Labeling Act. 2. Representing directly or by implication on "n invoice that the fur contained in such fur product is natural when such fur is pointed, bleached, dyed, tip-dyed or otherwise artificially colored.

3. Failing to set forth on an invoice the item number or mark assigned to such product.

It is further o1"dered That the respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report in writing sctting forth in detail the manner and form in which they have complied with this order.