Dedham Mills, Inc.

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

IN TI~E J\latter DEDl-IAJ\I )IILLS, INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO:i\BIISSIOX AND THE WOOL PRODUCTS LABELING ACTS Docket C-129G. Complaint, Feb. S, 19G5-Decisions, Fcb. S 1968 Consent order requiring a Dedham, Mass. , manufacturer of woolen and other types of yarn, to cease misrepresenting the fiber content of its products. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the ,Y 001 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 Dedham :Mills, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of the said Acts and the R.nles and R.egulations promulgated under the ",V 001 Products Labeling Act of 1939, and it appearing to the Commission that a proceeding by it in respect thereof ,,-ould be in the public interest, hereby issues its complaint stating its charges in that respectfollo.ws: PARAGRAPH 1. Respondent Dedham :Mills, Ine., is a corporation organized, existing and doing business under and by virtue of the laws of the Common wealth of J\lassachusetts. Respondent is a. manufacturer of wool products with its office. and principal place of business located at 90 J\lilton Street Dedham. :i\lassach usetts.

Complaint 73 F.

PAR. 2. Respondent, nO\v and for some time last past, has manufactured for introduction into commerce, introduced into commerce.e, sold transported, distributed, delivered for shipment, shipped and offered for sale, in commerce, as "commerce" is defined in said ",V 001 Products Labeling Act of 1939, ,,001 products as "wool product~' is de.fined therein.

PAH. 3. Certain of said wool products "ere misbranded by respondent within the intent and meaning of Section 4 ( a) (1) of the ",V 001 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 constituent fibers contained therein. Among such misbranded wool products, but not limited thereto, were certain yarns stamped, tagged, labeled Or other,ise identified as containing "100% acrylic" and "65% wool, 20% o1'1on, 15% fur" whereas in truth and in fact, said "100% acrylic." yarn contained a substantial amount of ".oolen fibers and said "65% wool, 20% orion~ 15% fur yarn contained substantiallv different amounts of ,,-oolen fibers than represented.

PAH. 4. Certain of said ".001 products were further misbranded by respondent in that they ,,-ere not stamped, tagged, labeled, or otherwise identified as required under the provisions of Section 4 (a) (2) of the ",V 001 Products Labeling Act of 1939 and in the manner and form as prescribed by the Rules and Regulations promulgated under said Act.

Among such misbranded wool products, but not limited thereto, were certain ya.rns with labels on or affixed thereto ,,-which failed to. disclose the percentage of the total fiber weight of the wool product, exclusive of ornamentation not exceeding 5 per centum of said total fiber weight of (1) wool; (2) reprocessed wool; (3) reused wool; (4) each fiber other than wool, ,vhen said percentage by weight of such fiber was 5 per eentmn or more; and (5) the aggregate of all other fibers. PAn. 5. The acts and praetiees of the respondent as set forth above were, and are, in violation of the ,Y 001 Products Labeling 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. PAR. 6. In the course and conduct of their business, respondent now causes and for some time last past, has caused its products, when sold to be shipped from their place of business in the Commonwealth of J\Iassachusetts to purchasers located in various other States of the ,, DEDHAM MILLS, INC. 285 283 Decision and Order United States, and maintained a substantial eO1.u;'~e of trade in said products in commerce, as "commerce~' is defined in the, Federal Trade Commission Act.

m. 7. Respondent in the course. and conduct of their business, as aforesaid, has made statements on invoices and shipping memoranda to its customers misrepresenting the fiber content of certain of its said products.

Among such misbranded wool products, but not limited thereto, were certain yarns which ,were invoiced as containing "100% acrylic" and 65% wool, 20% orion 15~X: fur" whereas in truth and in fact, said 100% acrylic" yarn contained a substantial amount of woolen fibers and said "65% wool 20% orion, 15% fur" yarn contained substantially dift' erent amounts of oolen fibers than represented. PAR, 8. The acts and practices set out in Paragraph Seven have had and no\" have the tendency and capacity to mislead and deceive the purchasers of said products as to the true content thereof and to cause them to misbrand products sold by them in which said materials were used, \R. 9. The aforesaid acts and practices of respondent as herein alleged were and are all to the prejudice and injury of the public. and of respondent' s competitors and constituted, and now constitute unfair and deceptive acts and practices in commerce, within the intent and meaning of the Federal Trade Commission Act. DECISION AXD ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with copy of a draft of complaint which the Bureau of Textiles and Furs propose;d to present to the Commission for its consideration and which if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act and the ,Y 001 Products Labeling Act of 1939; and The respondent and eo11nse1 for the. Commission hftying thereafter executed an agreement containing a, consent order, an admission by the. respondent of an the jurisdictionn 1 facts set forth in the aforesaid draft. of eol11plaint, a statement. that the signing of saiel agreement for settle,l11ent purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such complaint and waivers and other provisions as required by the Commission Rules; and Decision and Order 73 F.

The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the said Acts, and that complaint should issue stating its charges in that respect, and having thereupon accepted the. executed consent agreement and plac.ed 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 follo"ing jurisdictional findings, and enters the ion owing order:

1. Respondent Dedhanl ~Iills, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the Oommon,vealth of ~Iassac1111setts, ,with its office. and principal pla.ce business located at. 90 :Milton Street, in the town of Dedham, Common"health of :Massachusetts.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding i~ in the public interest..

OPJ)ER It -i-rs O)'(lei' That respondent Dedham ~Iills, Inc., a corporation and its officers, and respondents representati ,- , agents and employees directly or through rmy corporate or other device, in connection with the introduction, or manufacture for introduction, into commerce, or the offering for sale, sale, transportation, distribution, delivery for shipment or shipment, in commerce, of wool products, as "commerce and ;;,vool product~ are defined in the \V 001 Products Labeling Act of 1939, do fort1nvith cease and desist from misbranding such products by:

1. Falsely oJ.' deceptively stamping. tagging, labeling, or other- ,vise identifying such products as to the character or amount of the constituent fibers contained therein.

2. Failing to securely affix to or place on, each such product a stamp, tag, label, or other means of identification correctly sho\Ting in a clear and conspieuous manner each element of information required to be disclosed by Section ':I: (a) (2) of the "'V 001 Products Labeling Act of 1939.

is fuJ'their' ordered That respondent Dedham :l\Iills Inc '. a cm'po- Tation, and its offi.cers~ and respondents representatives, agents and ~ in con- employees, directly or through any corporate or other device nection with the offering for sale, sale or distribution of yarn or any in the ot her textile products in commerce, as ;;commerce'~ is defined Federal Trade Commission Aet, do fortlnvith cease and desist train , .

NATIONAL HOUSE"\VARES, INC. , ET AL. 287 283 Complaint misrepresenting the character or amount of constituent fibers contained in yarn or any other textile products on invoices or shipping memoranda applicable thereto or in any other manner. I t is furthe1' o?YZel' That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order.