Nipkow & Kobelt, Inc.

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IN THE :via TTER OF i\IPKOW & KOBELT, INC., ET AL, CONSE T ORDER, ETC" IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COM IISSION AND THE FLAMMABLE FABRICS ACTS Docket C-1278. Complaint, Dec. 1.967-LJecis1on, Dec. , 1,967 Conser.t order requiring a ::pw York City importer and distributor of fabrics to cease importing or selling dangerously flammable fabrics and furnishing false guarantees to customers.

COMPLAI Pursuant to the provisions of the Federal Trade Commission Act and the Flammable Fabrics Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Nipkow & Kobelt, Inc" a corporation, and Werner A. Kobelt and Emil G. Gress, individually and as offcers 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 it appearing to the Commission that a proceeding by it in respect thereof would he in the public interest, hereby issues its complaint. stating its charges in that respect as follows: PARAGRAPH 1. Respondent Nipkow & Kobelt, Inc. , is a corporation organized, existing and doing business under and by virtue NIPKOW & KOBELT, INC., ET AL. )73 972 Decision and Order of the laws of the State of New York. Respondent Werner A. Kobel! is the president and treasurer and respondent Emil G. Gress is vice president of the said corporate respondent. They formulate, direct and control the acts, practices and policies of said corporation.

The respondents are engaged in the importation, sale and distribution of fabrics, with their offce and principal place of business located at 468 Park Avenue South, New York, New York. PAR. 2. Respondents, now and for some time last past, have sold and offered for sale, in commerce; have imported into the United States; and have introduced, delivered for introduction, transported, and caused to be transported, in commerce; and have transported and caused to be transported for the purpose of sale or delivery after sale, in commerce; as "commerce" is defined in the Flammable Fahrics Act, fabric, as that term is defined therein, which fabric was, under Section 4 of the Flammable Fabrics Act, as amended, so highly flammable as to be dangerous when \vorn by individuals.

PAR. 3, 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 fabric. 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, shmv that such fabric is not, in the form delivered by respondents, so highly flammable under the provisions of the Flammable Fabrics Act as to be dangerous \vhen worn by individuals. There \vas reason for respondents to believe that the fabric 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 R (b) of said Act. PAR. 4. 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, 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 there- Dccision and Order 72 F. after 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 and the Flammable Fabrics 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 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 ' 8 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 S 2. 34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Nipkow & Kobelt, 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 468 Park Avenue South, New York, New York. Respondents Werner A. Kobelt and Emil G, Gress 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 :\ipkow & Kobelt, Inc. , and its offcers, and Werner A. Kobelt and Emil G, Gress, individually and as offcers of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from: (a) Importing into the United States; or (b) Selling, offering for sale, introducing, delivering for introduction, transporting, or causing to be transported, in GUILD INSTITUTE OF MUSIC 975 972 Complaint commerce, as "commerce" is defined in the Flammable Fabrics Act; or (c) Transporting or causing to be transported, for the purpose of sale or delivery after sale in commerce any fabric which, under the provisions of Section 4 of the said Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals. It is further ordered That respondents Nipkow & Kobelt, Inc. and its offcers, and Werner A. Kobelt and Emil G. Gress, individually and as offcers 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 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 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