Kat Morgan

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consent order to cease and desist, be received and filed. 1/\ THE MATTER OF KAT MORGAN CONSENT ORDER, ETC. , IN REGARD TO Tile ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AKD THE FUR PROD\:CTS LABELING ACTS Docket C 12Q8. Complaint, May 196' Decision, l'day 2.1 , 196'7 Consent order requiring a New York City manufacturing funier to cease misbranding and falsely invoicing his fur products. CO:YPLAINT 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 believe that ""at Morgan, an individual trading as at dorgan, hereinafter referred to as respondent, has violated the provisions of said Acts and the Rules and Regulations promuigated 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 ?\at :\1organ is an individual trading as at Tvlorgan.

Respondent is a manufacturer of fur products with his offce , (g) NAT MORGAN 747 746 Complaint and principal place of business located at 370 West 35th Street New York ew York.

PAR. 2. Respondent is now, and for some time last past has been, engaged in the introduction into 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 has manufactured for sale, sold, advertised, offered for sale, transported and distributed fur products which have been made in whole or in part of furs which have been shipped and received " 'l in commerce, as the terms 'Icommerce flll' " and IIfnI' 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, 01' othenvise 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 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 said Rules and Regulations.

(b) Required item numbers were not set forth on labels, in violation of Rule 40 of said Rules and Regulations. PAR. 6. 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 limited thereto, were fur products covered by invoices which failed:

Decision and Order 71 F. 1. To show the true animal name of the fur used in any such fur product.

2. To disclose that the fur contained in the fur products was 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 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 as Balkan Cat" when in truth and in fact such animal name does not appear in the Fur Products Name Guide. PAR. 9. Certain of said fur 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 in the following respects: (a) Information required under Section 5(b) (1) of the Fur Products Labcling 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 "natural" was not used on invoices io 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.

(c) Required item numbers were not set forth on invoices in violation of Rule 40 of said Rules and Regulations. PAR. 10. 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 Hnd constitute unfair methods of competition and unfair and deceptive acts and practices in commerce under the Federal Trade Commission Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investiga- NAT MORGAK 749 746 Order tion of certain acts and practices of the respondent named in the caption hereof, dnd the respondent 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 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 jurisdiclional facts set forth in the aforesaid draft of complaint, a statement that the sig-ning of said agreement is for settement 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 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 Nat lIorg-an is an individual trading as Nat lVlol'gan, with his offce and principal place of business located at 370 West 35th Street, New York, Kew York. 2. The Federal Trade Commissio'.1 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 Nat IVTorgan, an individual trading as N at lVlol'gan or any other name, and respondent' 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 sale, advertising or offering for sale in commerce, or the transporiation or distribution in commerce, of any fur product; or in connection with the manufacture for saJe, 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 delined in the Fur Products Labeling- Act, do forthwith cease and desist from:

A. Misbranding- any fur product by:

Order 71 F. T.

1. 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 by each of the subsections of Section 4 (2) of the Fur Products Labeling Act. 2. Representing, directly or by implication, on a label that the fu r 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 the term " natural" as part of the information required to be disclosed on a label under the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe such fur product which is not pointed, bleached, dyed, lip-dyed or otherwise artificially colored.

4. Failing to set forth on a label the item number or mark assigned to such fur product.

B. Falsely 01' deceptively invoicing any fur product by: 1. Failing 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. Setting forth on an invoice pertaining to such fue product 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. Representing directly or by implication on an invoice that the fur contained in such fur product is natural when such fur is pointed, bleached, dyed, tip-dyed or otherwise artificially colored.

4. 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 5. Failing to set forth the term "natura)" as part of the information required to be disclosed on an invoice under the Fur Products Labeling Act and Rules and Regulations promulgated thereunder to describe such fur product which is not pointed, bleached, dyed, tip-dyed, or otherwise artificially colored.

6. Fuiling to set forth on an invoice the item number or mark assigned to such fur product.

GRAMERCY MILLS , INC. , ET AL. 751 746 Complaint It is JUTther ordered That the respondent herein shall, within sixty (60) days after service upon him of this order, file with the Commission a rep01't in writing setting forth in detail the manner and form in which he has complied with this order.