Jo Rich Originals, Inc.

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IN THE MATTER OF JO RICH ORIGINALS, INC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION , THE FLA:vMABLE FABRICS, AND THE TEXTILE FIBER PRODUCTS IDEKTIFICATIO:- ACTS Docket C-1260. Complaint Oct. . 1967-Decision, Oct. 9, 1967 s clothes to Consent order requiring a Miami, Fla., manufacturer of women cease misbranding its textile fiber products, failing to maintain required records, furnishing false guaranties, and misrepresenting that the textiles are imported.

CO'!PLAI"T Pursuant to the provisions of the Federal Trade Commission Act, the Flammable Fabrics Act and the Textile 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 Jo Rich Originals, Inc. , a corporation, and Jack Rich, individually and as an offcer of the said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts, and the Rules and Regulations promulgated under the Flammable Fabrics Act and the Textile Fiber Products Identification 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 Jo Rich Originals, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida.

Respondent Jack Rich is the president of the said corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporation.

The respondents are engaged in the manufacture, sale and disdresses, suits a:!d tribution of women s V-lear, including ladies' coats, with their offce and principal place of business located at 394 W. 24th Street, Miami, Florida.

PAR. 2. Respondents are now, and for some time last past have been, engaged in the introduction, delivery for introduction JO RICH ORIGINALS, IKC. , ET AL. 781 780 Complaint manufacture for introduction, sale, advertising, and offering for sale, in commerce, and in the transportation or causing to be transported in commerce, and in the importation into the Dnited States, of textile fiber products; and have sold, offered for sale advertised, delivered, transported and caused to be transported textile fiber products, which have 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, textie fiber 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 Products Identification Act.

PAR. 3. Certain of said textie 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 or amount of the constituent fibers contained therein.

Among such misbranded textile fiber products, but not limited thereto, were ladies ' dresses labeled by respondents as 100;X, Cotton" whereas, in truth and in fact, such fabrics contained substantially different fibers and amounts of fibers other than as represented.

PAR. 4. Certain of said textile fiber products were further 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 thc manner and form prescribed by the Rules and Regulations promulgated under said Act.

Among such textile fiber products, but not limited thereto, were ladies' dresses with labcls which failed: (a) To disclose the true generic names of the fibers present; and (b) To disclose the true percentage of the fibers present by weight.

PAR. 5. Respondents have failed to maintain proper records showing the fiber content of the textile fiber products manufactured by them, in violation of Section G (a) of the Textile Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder.

Complaint 72 F.

PAR. 6. Respondent furnished false guaranties on invoices pertaining to products sold, shipped and distributed in commerce that its products were not misbranded in violation of Section 10 (b) of the Textie Fiber Products Identification Act. PAR. 7. The acts and practices of respondents as set forth above were, and are, in violation of the Textile Fiber Products Identifieation Act and the Rules and Regulations promulgated thereunder and constituted, and now constitute, unfair methods of competition and unfair and deceptive acts or practices, in commerce under the Federal Trade Commission Act.

PAR. 8. Respondents, now and for some time last past, have falsely represented on invoices to their customers that a Continuing Guaranty has been filed with the Federal Trade Commission with respect to the articles of wearing apparel, to the effect that reasonable and representative tests made under the procedure provided in Section 4 of the Flammable Fabrics Act, as amended and the Rules and Regulations promulgated thereunder, show that such articles of wearing apparel are not, in the form delivered by respondents, so highly flammable under the provisions of the Flammable Fabrics Act as to bc dangerous when worn by individuals. There was reason for respondents to believe that the articles of wcaring apparel covered by such guaranty might be introduced sold or transported in commerce, in violation of Rule 10 (d) of the Rules and Regulations promulgated under the Flammable Fabrics Act and Section 8 (b) of said Act. The acts and practices set forth above were false and misleading in that the respondents did not have a Continuing Guaranty on file with the Commission.

PAR. 9. The aforesaid acts and practices of respondents were and are in violation of the Flammable Fabrics Act and the Rules and Regulations promulgated thereunder, and as such 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.

PAR. IO. Respondents are now, and for some time last past have been, engaged in the offering for sale, sale and distribution of certain products, namely ladies' dresses. In the course and conduct of their business the aforesaid respondents now cause and for some time last past have caused, their said products, when sold, to be shipped from their place of business in the State of Florida to purchasers located in various other States of the Dnited States, and maintain, and at all other times mentioned herein have maintained, a substantial course of trade in said JO RICH ORIGINALS, INC., ET AL. 783 780 Decision and Order products in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 11. Respondents in the course and conduct of their business have made statements on labels affxed to their products misrepresenting that their dresses were imported. Among such misrepresentations, but not limited thereto, was the statement "Imported" made on labels which were affxed to respondents' dresses, representing that the dresses were imported whereas in truth and in fact, the dresses were not imported but were manufactured in the Dnited States.

PAR. 12. The acts and practices set out in Paragraph Eleven have the tendency and capacity to mislead and deceive the purchasers as to the country of origin of the aforesaid products. PAR. 13. The aforesaid acts and practices of respondents, as herein alleged were, and are, all to the prejudice and injury of the public, and constituted, and now constitute, 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 charge respondents with violation of the Federal Trade Commission Act, the Flammable Fabrics Act and the Textie Fiber Products Identification Act; and The respondents and counsel for the Commission having thereanafter executed an agreement containing a consent order! 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 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 the 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 Decision and Order 72 F. T. 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 Jo Rich Originals, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida, with its offce and principal place of business located at 394 :\W. 24th Street, Miami, Florida. Respondent Jack Rich 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 proceeding and of the respondents, and the proceeding is in the public interest. ORDER It is ordered That respondents J 0 Rich Originals, Inc., a corporation, and its offcers, and Jack Rich, individual1ly 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 Dnited States, of any textile fiber product: or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, of any textie fiber product which has been advertised or offered for sale in commerce; or in connection with the sale, oflering 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" arc defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from: A. Misbranding 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 the constituent fibers contained therein.

2. Failing to affx a stamp, tag, label, or other means of identification to each such product showing in a clear legible and conspicuous manner each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act. JO RICH ORIGINALS, INC. , ET AL. 785 780 Decision and Order B. Failing to maintain and preserve for at least three years proper records showing the fiber content of the textile fiber products manufactured by said respondents, as required by Section 6 (a) of the Textie Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder. ft is furthe1' ordered That respondents J 0 Rich Originals, Inc., a corporation, and its offcers, and Jack Rich, 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 th Textile Fiber Products Identification Act. It is fur-ther O1'dered That respondents Jo Rich Originals, Inc. a corporation, and its offcers, and Jack Rich, 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 under the Flammable Fabrics Act, that any fabric is not under the provisions of Section 4 of the said Act, so highly flammable as to be dangerous when worn by individuals, when respondents have reason to believe such fabric may be introduced sold, or transported in commerce.

It is fUTthe,. ordered That respondents Jo Rich Originals, Inc. a corporation, and its offcers, and Jack Rich, 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 offering for sale, sale or distribution of textile fiber products or other products in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting on labels, or on any documents relating to the sale of their products, or in any other manner, that said products are imported. ft is fUTthe1' O1'dered That 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. Complaint 72 F.