1. Spiewak & Sons, Inc.

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IN THE MATTER OF 1. SPIEWAK & SONS, INC. , ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATIOK OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-1258. Complaint, Sept. 1.97-Decision, Sept. 9, 1.967 Consent order requiring a New York City clothing manufacturer to cease misbranding its \Vool products and failing to aff proper labels thereto. 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 1. Spiewak & Sons, Inc. a corporation, and Gerald Spiewak, Robert 1. Spiewak and Martin H. Spiewak, 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 1. Spiewak & Sons, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York as of January 2 1967. It was previously anew Jersey corporation, organized, existing and doing business under the laws of said State until its dissolution on December 31, 1966.

Respondents Gerald Spiewak, Robert 1. Spiewak and Martin H. Spiewak are offcers of the corporate respondent. They formulate, direct and control the acts, practices and policies of the said corporate respondent including those hereinafter set forth. Respondents are manufacturers of wool products with their offce and principal place of business located at 10 West 33rd Street, New York, New York.

PAR. 2. Respondents, now and for some time 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.

Decision and Order 72 F. T. PAR. 3. Certain of said wool products were misbranded by the respondents within the intent and meaning of Section 4(a) (1) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder in that they were falsely and deceptively stamped, tagged, labeled, or otherwise identified with respect to the character and amount of the constituent fibers contained therein.

Among such misbranded wool products, but not limited thereto were wool products stamped, tagged, labeled, or otherwise identified by respondents as "90;:, Reprocessed Wool, 10% Other Fibers," whereas in truth and in fact, said products contained substantially different fibers and amounts of fibers than as 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 thc 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 total fiber weight of the said wool product, exclusive of ornamentation not exceeding 5;;, of the total 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% or more; and (5) the aggregate of an other fibers.

PAR. 5. The acts and practices of the respondents as set forth above were, and are, in violation of the Wool Products Labcling 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 intent and meaning of the Federal Trade Commission Act.

DECISIO:\ 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 I. SPIEWAK & SONS , INC., ET AL. 699 697 Decision and Order 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 agreement containing a consent order, an admission by the respondents of aJl 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 respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated said Acts, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in 34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent 1. Spiewak & Sons, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of :\ew York, as of January 2, 1967. It was previously a Kew Jersey corporation organized, existing and doing business under the laws of the said latter State unti its dissolution on December 31 , 1966. Said corporate respondent' offce and principal place of business is located at 10 West 33rd Street, New York, New York.

Respondents Gerald Spiewak, Robert 1. Spiewak and Martin H. Spiewak 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 OJ'de?ed That respondents 1. Spiewak & Sons, Inc. , a corporation, and its offcers, and Gerald Spiewak, Robert 1. Spiewak and Martin H. Spicwak, individually and as offcers of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the manufacture for introduction into commerce the introduction into commerce, or the ofiering for sale, sale transportation, distribution, delivcry for shipment or shipment Complaint 72 F. T.

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 wool 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. ft is JUTther ordered That the respondents herein shah, 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.