Helen Wong, Inc.

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

IN THE MATTER OF HELEN \VONG, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE Flat\fl\fABLE FABHICS ACTS Docket 0-1295. Oomplct-int, Feb. 1968-Dec-ision, Feb. , 1968 Consent order requiring a Los Angeles, Oalif. , distributor of wearing apparel and fabrics to cease importing and selling dangerously flammable fabrics and furnishing false guaranties to customers.

COl\fPLAINT 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 Helen ",V ong, Inc., a corporation, and Jacob Chang, individually and as an officer of 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 be in the public interest, hereby issues its complaint, stating its charges in that respect as follows: PAR..-\GRAPH 1. Respondent Helen ",Vong, Inc., is a corporation organized, existing and doing business under and by virtue of the la \vs of the State of California. Respondent Jacob Chang 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 importation, sale and distribution of wearing apparel and fabrics, with their office and principal place of business located at 127 East 9th Street, Los Angeles, California.

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 COilllllerce; as "commerce" is defined in the Flammable Fabrics 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 worn by individuals.

Decision and Order 73 F.

PAR. 3. Respondents furnished false guaranties under Section 8 (b) of the Flammable Fabrics Act ,,~ith respect to certain of their products by falsely representing in writing that respondents had a continuing guaranty on file with the Federal Trade Commission 'I" hen respondents in furnishing such guaranties had reason to believe that the products so falsely guarantied would be introduced, sold, transported, and distributed in commerce, in violation of R.ule 10 (d) of said Rules and Regulations under the Flammable Fabrics Act and Section 8 (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 R.ules and Regulations promulgated thereunder, and as such constitute unfair ll1ethocls of competition and unfair and deceptive acts and practices in commerce, within the intent andll1meaning of the Federal Trade Commission A..ct.

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 cOlnplaint which the Bureau of Te.:stiles and Furs proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents \\-ith violation of the Federal Trade Commission Act and the Flammable Fabrics Act: and The responc:rnts and counsel for the Commission having thereafter executed an agremnent 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 agreeme.nt is for settle.ment purpose.s only and does not constitute an admission by respondents that the law has been violated as alleged such complaint, and waivers and other provisions as required by the Commission s Rules; and The Commission having thereafter considered the matter and ha ,-ing 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 exe,cl1tec1 consent agreement and placed such agree.ment on the public record for a period of thirty (30) clays, now in further conformity with the proce.dure prescribed in ~ 2.34 (b) of its R.llles, the Commission hereby HELEN 'WONG ~ INC. , ET AL. 271 269 Decision and Order issues its complaint, makes the following jurisdictional findings, and ent-ers the following order:

1. Respondent I-Ielen ",Vong, Ine., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California., with its office and principal place of business located at 127 East 9th Street, Los Angeles, California. Respondent Jacob Chang is an officer of said corporation and his address is the same as that of said corporation. 2. The Federal Trade Comnlission has jurisdiction of the subject 111atter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER I tis oJ'de'i'ecl That respondents Helen ,Vong, Inc., a corporation, and its officers, and Jacob Chang, individually and as an officer of said corporation, a.nd respondents' representatives, agents and employees directly or through any corporMe or other device, do forthwith cease. and desist from:

(a) Importilig into the United States; or (b) Selling, offering for sale, introducing, delivering for introduction, transporting, or causing to be transported, in commerce, as "commerce" is defined in the Flammable Fabrics Act; ( 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 lammable Fabrics Act, as amended, is so highly flammable as to be dangerous when ,yorn by individuals.

I t -is f1.(.)'thel' ordel' That respondents Helen ",Vong, Inc., and its officers, and Jacob Chang, individually and as an officer 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 fabric is not 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 fu"lthe1' ol'del'ed That. the respondents herein shall, within sixty (60) days after serviee upon then1 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. CERTIFICA.'tion OF RECORD 73 F.