Schneider & Falk, Inc.

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IN THE MATTER OF SCHNEIDER & FALK, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED .violation OF THE FEDERAL TRADE COMMISSION AND THE TEXTILE FIBER PRODUCTS IDENTIFICA TION ACTS Docket C 1271. Compla,int, Nm' 24, j967-Decision i'v' . 24, 1967 Consent order requiring a ::ew York City textile "\vho1esaler and converter cease misbranding' its textile fiber products. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Textie Fiber Products Identification Act, and by virtue Complaint 72 F.

of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Schneider & Falk, Inc. a corporation, and Aaron Schneider and David Falk, 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 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 Schneider & Falk, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondents Aaron Schneider and David Falk are offcers the corporate respondent. They formulate, direct and control the acts, practices and policies of said corporate respondent including the acts and practices hereinafter set forth. Respondents are wholesalers and converters of textile fiber products with their offce and principal place of business located at 240 West 35th Street, New York, New York. PAR. 2. Respondents are now, and for some time last past have been, engaged in the introduction, delivery 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 United 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, textile 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 textile fiber products were misbranded by the respondents within the intent and meaning of Section 4 (a) of the Textile Fiber Products Identification Act and the Hules 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 c.onstituent fiber contained therein.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products with invoices which set forth SCHNEIDER & FALK , INC., ET AL. 877 875 Complaint the fiber content as 100% cotton print, whereas, in truth and in fact, said product contained substantial amounts of rayon. PAR. 4. Certain of said textile fiber products, were misbranded in that they were not stamped, tagged, labeled or otherwise identified as required under the provisions of Section 4 (b) of the Textile Fiber Products Identification Act, and in the manner and form as prescribed by the Rules and Regulations promulgated under said Act.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products with labels which failed: 1. To disclose the true generic names of the fibers present; and 2. To disclose the correct percentage of such fibers. PAR. 5. Certain of said textile fiber products were misbranded by the respondents, in violation of the Textile Fiber Products Identification Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects:

1. Information required under Section 4 (b) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder was set forth on labels in abbreviated form, in violation of Rule 5 (a) of the aforesaid Rules and Regulations.

2. Information required under Section 4 (b) of the Textile Fibcr Products Identification Act and the Rules and Regulations promulgated thereunder was not set forth on the required labels so that all parts of the fiber content information appeared in type or lettering of equal size and conspicuousness, in violation of Rule 16 (b) of the aforesaid Rules and Regulations. 3. Nonrequired information was set forth on labels in such a manner as to interfere \with, minimize, detract from, and conflict with information required by Section 4 (b) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, in violation of Rule 16(c) of the aforesaid Rules and Regulations.

PAR. 6. The acts and practices of the respondents as set forth above were, and are, in violation of the Textile Fiber Product Identification Act 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.

Decision. and Order 72 F.

DECISION 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 Texties 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 and the Textile Fiber Products Identification Act; and The respondents and counsel for the Commission having thereafter 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 settement 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 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 Schneider & Falk, 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 240 West 35th Street, Kew York, New York. Respondents Aaron Schneider and David Falk 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 pu blic interest.

ORDER It is ordered That respondents Schneider & Falk, Inc., a corporation, and its offcers, and Aaron Schneider and David Falk individually and as offcers of said corporation, and respondents representatives, agents and employees, directly or through any SCHNEIDER & FALK , INC., ET AL. 879 875 Decision and Order corporate or other device, in connection with the introduction delivery 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 textile fiber products; or in connection with the sale, offering for sale advertising, delivery, transportation or causing to be transported of any textie fiber products, which have been advertised or 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 textie fiber product, whether in its original state or contained in other textie fiber products, as the terms "commerce" and "textile fiber product" are 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 constituent fibers contained therein.

2. Failing to affx labels to such textie fiber products showing in a clear, legibie and conspicuous manner each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act. 3. Setting forth information required under Section 4(b) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder in abbreviated form on labels affxed to textile products. 4. Failing to set forth all parts of the information as to fiber content required under Section 4 (b) of the Textie Fiber Products Identification Act and the Rules and Regulations promulgated thereunder in type or lettering of equal size and conspicuousness.

5. Settng forth on labels nonrequired information that interferes with, minimizes, detracts from, or conflicts with the required information.

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. Complaint 72 F.