Scarsdale Quilting Mills, Inc.

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IN THE ;VfA TTER OF SCARSDALE QUILTING MILLS, I)JC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION, THE WOOL PRODUCTS LABELING, AND THE TEXTILE FIBER PRODUCTS IDE:-TIFICATION ACTS Docket C-1206, Complaint, May 2S, 1967-Decision, l'day, 1967 Crmsent order requiring a Tupelo, i\Jississippi, textile manufacturer to cease misb:randing its textile fiber and wool products, failing to keep required records, and furnishing false guaranties on its textile fiber products. SCARSDALE QUILTING MILLS , INC. , ET AL. 739 738 Complaint COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, the Wool Products Labeling Act of 1939 and the Textie Fiber Products Identification Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Scarsdale Quilting Mils, Inc., a corporation and Robert Kutak, individually and as an offcer 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 the Textile Fiber Products Identiication 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 Scarsdale Quiling Mills, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Mississippi. Respondent Robert Kutak is an offcer of said corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporate respondent. Hespondents are engaged in the manufacture and sale of wool and textile fiber products, including quilted fabrics, with their offce and principal place of business located at Tupelo Missis sippi.

PAR. 2. Respondents, now and for some time last past, have manufactui' ed for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment shipped, and offered for sale, in commerce, as "commerce " is defined in the Wool Products Labeling Act of 1939 , wool products as "wool product" is defined therein.

PAR. 3. Certain of said \vaal products were misbranded by the respondents within the intent and meaning- of Section 4 (a) (1) of the Wool Products Labeling Act of 1939 nd Rules and Regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, or othenvise identified with respect to the character and amount of the constituent fibers contained therein.

Among such misbranded wool products, but not limited thereto were quilted fabrics stamped, tagged, labeled, or otherwise identified by respondents as 90'+ Acrylic, lock l.:nknown Fibers whereas in truth and in fact, said products contained woolen Complaint 71 F.

fibers as well as substantially different fibers and amounts of fibers other than represented.

PAR. 4. Certain of said wool products were further misbranded by respondents 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 was a wool product with a label on or affxed thereto which failed to disclose the percentage of the total fiber weight of the said wool product, exclusive of ornamentation not exceeding 5 of the total fiber weight, of (1) wool; (2) reprocessed wool; (3) reused wool; (4) each fiber other than wool, when said percentage by weight of such fiber was 5'Y or more; and (5) the aggregate of all other fibers.

PAR. 5. The acts and practices of the respondents as set forth 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 methods of competition and unfair and deceptive acts and practices, in commerce within the meaning of the Federal Trade Commission Act. PAR. 6. Respondents, for some time last past have been, and are now, engaged in the introduction, delivery for introduction manufacture for introduction, sale, advertising, and offering for sale, in commerce, and in the transportation or causing to be transported in commerce, and the importation into the enited States, of textile fiber products; and have sold, ofiered for sale advertised, delivered, transported and caused to be transported textile fiber products, which had been advertised or offered for sale in commerce; and have sold, offered for sale, advertised, delivered, transported and caused to be transported, after shipment in commerce, textile fibel" products, either in their original state or contained in other textile fiber products; as the terms "commerce" and !'textile fiber product" are defined in the Textile Fiber Pl"ducts Identification Act.

PAR. 7. Certain of said textile fiber products were misbranded by respondents within the intent and meaning of Section 4 (a) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder in that they were falsely and deceptively stamped, tagged, labeled, invoiced, advertised, or otherwise identified as to the name of the constituent fibers contained therein.

SCARSDALE QUILTING MILLS , I:-C. , ET AL. 741 738 Dccision and Order Among such misbranded textile fiber products, but not limited thereto, were quilted fabrics that were labeled as 90% Acrylic 10% Other' Fibers, whereas, in truth and in fact, such products contained substantially different fibers and amounts of fibers other than as represented.

PAR. 8. Certain of the textile fiber products were misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified to show each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act, and in the manner and form prescribed by the Rules and Regulations promulgated under said Act. Among such misbranded textile fiber products, but not limited thereto, were quilted fabrics with labels which failed: (1) To disclose the true percentage of the fibers present by weight; and (2) To disclose the true generic names of the fibers presenl. PAR. 9. Respondents have failed to maintain proper records showing the fiber content of the textile fiber products manufactured by them, in violation of Section 6 of the Textile Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder.

PAR. 10. Respondents have furnished false guaranties that their textile fiber products were not misbranded in violation of Section 10 of the Textile Fiber Products Identification Act. PAR. 11. The acts and practices of respondents, as set forth above were, and are, in violation of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, and constituted, and now constitute, unfail' ethods of competition and unfair and deceptive ads and practices in commerce, under the Federal Trade Commission Act. DECISION AKD 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 ,,,hieh, if issued by the Commission, ,vauld charge respondents with violation of the Federal Trade Commission Act, the Wool Products Labeling Act of 1939 and the Textile Fiber Products Identification Act; and The respondents and counsel for the Commission having there- Order 71 F.

after 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 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 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- ord"r: 1. Respondent Scarsdale Quilting Mills, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Mississippi, with its offce and principal place of business located at Tupelo, Mississippi. Respondent Robert Kutak is an offcer of said corporation and his address is the same as that of said corporation. 2. The Federal Trade Commission has jurisdiction of the subject matter of this procecding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents Scarsdale Quilling Mills, Inc. a corporation, and its offcers, and Robert Kutak, individually and as an oflcer of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection ''with the introduction, or manufacture for introduction, into commerce, or the offering for sale sale, transportation, distribution, delivery for shipment or shipment, in commerce, of wool products, as "commerce " and "wool product" are defined in the Wool Products Labeling- Act of 1939 do forthwith cease and desist from misbranding such products by:

1. Falsely and deceptively stamping, tagging, labeling-, or otherwise identifying- such products as to the character or amount of the constituent fibers contained therein. 2. Failing to securely affx to, or place on, each such product a stamp, tag, label, or other means of identification 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.

SCARSDALE QUILTING MILLS , INC. , ET AL. 743 738 Order It is fur.ther ordered That respondents Scarsdale Quilting Mils Inc., a corporation, and its offcers, and Robert Kutak, individually and as an offcer of said corporation, and respondents ' representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction, delivery for introduction, manufacture for introduction, sale, advertising, or offering for sale, in commerce, or the transportation or causing to be transported in commerce, or the importation into the United States, of any textie fiber product; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, of any textile fiber product which has been advertised 01' offered for sale in commerce; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, after shipment in commerce, of any textile fiber product, whether in its original state or contained in other textile fiber products, as the terms commerce" and "textile fiber product" are defined in the Textile Fiber Products Jdentification Act, do forthwith cease and desist from:

A. Misbranoing textile fiber products by: 1. Falsely or deceptively stamping, tagging, labeling, invoicing, advertising, or otherwise identifying such products as to the name or amount of constituent fibers contained therein.

2. Failing to affx a stamp, tag, label, 0)' other means of identification to each such product showing in a clear legible and conspicuous Inanner each element of information required to be disclosed by Section 4 (b) of the Textie Fiber Prooucts Identification Act. B. Failing to maintain and preserve proper records showing the fiber content of the textile fiber products manufactured by said respondents, as required by Section 6 of the Textile Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder.

It is further O1'dered That respondents Scarsdale Quilting Mils Inc. , a corporation, and its offce)'s, and Robert Kutak, 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 textile fiber product is not misbranded or falsely invoiced under the provisions of the Textile Fiber Products Jdentification Act.

Complaint 71 F.

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.