Sani Distributors, Inc.

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

IN THE MATTER OF SA2\I DISTRIBUTORS , INC. , ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION A"D THE WOOL PRODUCTS LABELI:-G ACTS Docket C-1237. Complaint JU' flc, iD6/-Decision, June 30, 1967 Consent order requiring a New York City importer of ' wool fabrics to cease misbranding its wool products.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Sani Distributors, Inc. , a corporation, and Sham Sani and Lal C. Sani, individually and as offcers 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 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 Sani Distributors, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Individual respondents Sham Sani and Lal C. Sani are officers of said corporation. They are responsible for and formulate the acts, practices and policies of said corporation, including the acts and practices hereinafter referred to.

Respondents are importers of wool products (fabrics) with their offce and principal place of business located at 9 East 37th Street, New York, New York.

PAR. 2. Respondents now, and for sometime last past, have manufactured 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 wool products were misbranded within the intent and meaning of Section 4 (a) (I) of the Wool Products Labeling Act of 1939 and the Rules and Regulations p;' omul- SANI DISTRIBUTORS, INC., ET AL. 1523 1522 Decision and Order gated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, or otherwise identified with respect to the character and " mount of the constituent fibers contained therein.

Among such misbranded wool products, but not limited thereto were wool products, namely, fabrics, which contain substantially different amounts and types of fibers than were set forth on the labels aftxed thereto.

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, were certain wool products, namely fabric with labels on or affxed thereto, which failed to disclose the percentage of the total fiber weight of the wool product, exclusive of ornamentation not exceeding 5 per centum of said total fiber weight, of (I) wool; (2) reprocessed wool; (3) reused wool; (4) each fiber other than wool, when said percentage by weight of such fiber was 5 per centum or more; (5) the aggregate of all other fibers. PAR. 5. The acts and practices of the respondents as set forth above were, and are, in violation of the Wool Products Labeling Act of J 939 and the Rules and Regulations promulgated thereunder, and constituted, and now constitute, unfair and deceptive act.s and practices and unfair methods of competition in commerce, within the intent and meaning of the Fer1eral Trade Commission Act.

DECISIO:- A:-D 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, wou ld charge respondents with violation of the Federal Trade Commission Act and the Wool Products Labeling- Act of 1939; and The respondents and counsel for the Commission having thereafter executed an agrcement cont.aining a consent ordel' , an admission by the respondents of all the jurisdictional facts set forth Order 71 F.

in the aforesaid draft of complaint, a statement that the signing of said agreement is for settement 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 order: 1. Respondent Sani Distributors, Inc., 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 9 East 37th Street, New York, New York. Respondents Sham Sani and Lal C. Sani are offcers 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 Sani Distributors, Inc. , a corporation, and its offcers, and Sham Sani and Lal C. Sani, individually and as officers of said corporation, and respondents representatives, agents and en1ployees, directly or through any corporate 01' 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 or 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 Pl:oducts Labeling Act of 1939. ROCK RIVER WOOLEN:- MILLS ET AL. 1525 1522 Complaint It is fU1"that 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