M. G. Ii Inc.

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

IN THE 1\LATTER OF :1\1. G. II" INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDER..'\.L TR..~DE CO:i\BIISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-1302. Complaint, Feb. 29, 1968-Decis'ion, Feb. , 1968 Consent order requiring a New York City manufacturer of ladies' rainwear and car coats to cease misbranding its wool products, CO:\IPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the ",V 001 Produds 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 "1\,1. G. II" Inc., a corporation, and l\lelvin Golden, individually and as an officer of said corporation, hereinafter referred to as proposed respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the ",V 001 Products Labeling Act of 1939, and it appearing to the Conlillission 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:

PARAGR..~PH 1. Respondent "1\1. G. II" Inc., is a corporation organized, existing and doing business under and by virtue of ,the laws of the State of New York.

Individual respondent l\lelvin Golden is an offieer of the corporate respondent. lie formulates, directs and controls the acts, practices and policies of said corporate respondent, including the acts and practices hereinafter referred to.

Respondents are engaged in the manufacture of ladies' rain wear and car coats, which items are distributed to retailers and jobbers loeated throughout the United States. Their office and principal place of business is loc.ated at 252 "'Vest 37th Street, New York, New York. PAR. 2. Respondents now, and for some time last past, have manufactured for introduction into commerce, introduced into commerce sold, transported, distributed, delivered for shipment, shipped, and offered for sale in commerce, as "commerce" is defined in said W 001 Produds Labeling Aet of 1939, wool products as "wool product" is defined therein.

PAR. 3. Certain of said wool products were misbranded by the respondents within the intent and meaning of Section 4(a) (1) of the M. G. II" INC. , ET AL. 453 452 Decision and Order ""\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 the constituent fibers contained therein. Among such misbranded wool products, but not limited thereto were ladies' car coats stamped, tagged, labeled, or otherwise identified by respondents as "85% Reprocessed "\Vool, 15% Nylon " whereas, in truth and in fact, said products contained substantially different fibers and amounts of fibers than represented.

PAR. 4. Certain of said wool products w.ere further misbranded by respondents in that they were 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 '\001 products, but not limited thereto, was a wool product viz a ladies' car coat, with a label on 01' affixed thereto which failed to disclose the percentage of the total fiber "eight of the said wool product, exclusive of oI11amentation not e:s:eeeding 5 per centum of the total fiber weight, of ( 1) wool; (2) reprocessed wool; (3) reused "001; (4) e.ach fiber other than wool present in the wool product when said percentage by weight of such fiber was 5 per centum or more; and (5) the aggregate of all other fibers. PAR. 5. The acts and practices of the respondents as set forth above were, and are, in violation of the ""\V 001 Products Labeling Aet of 1939 and the Rules and Regulations promulgated thereunder, and constituted, and now constitute, unfair methods of competition and unfair and deceptive ads 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 thereafter with 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 ""\V 001 Products Labeling Ad of 1939; and The respondents and counsel for the Commission having thereafter executed an agreement containing a eonsent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid Order 73 F.

draft of c.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 eomplaint, and waivers and other provisions as required by the Commission s R.ules; and The COlllmission having thereafter c.considered the matter and having determined that it had reason to believe that the respondents have violated said Acts, and that c.complaint should issue stating its charges in that respect, and having thereupon acc.epted the exec.uted eonsent agreement and placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure presc.ribed in S 2.34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional fuldings, and enters the following order:

1. Respondent ';1\1. G. II" Ine., is a c.orporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its office and princ.ipal place of business located at 252 West 37th Street, New York, New York.

R.respondent ~lelvin Golden is an officer of said c.orporation and his address is the sanle as that of said corporation. the subject . The Federal Trade Commission has jurisdic.tion of ma'tterof this proc.eeding and of the respondents, and the proceeding is in the public interest.

ORDER II" Inc., a corporation, and It is ordered That respondents "~1. G. its office.ers, and Melvin Golden, individually and as an office.er of said corporation, and respondents' representatives, agents and employees direc.tly or through any corporate or other devic.e, in connection with the manufacture for introduc.tion into eommerc.e, the introduction into commerce, or the offering for sale, sale, transporation, distribution delivery for shipnlent or shipment in commerce, of wool products as "commerce" and "wool product" are defined in the ,Y 001 Products Labeling Aet of 1939, do forthwith cease and desist from misbranding wool produc.ts by: 1. Falsely or deceptively stamping, tagging, labeling, or otherwise identifying suc.h products RS to the character or amount of constituent fibers contained therein.

place on, eac.h sneh procluet 2. Failing to sec.urely affix to, or a stamp, tag, label, or other means of identification showing in a dear and eonspic.nous manner eac.h element of information required to be disclosed by Section ,4(a) (2) of the Wool Products Labeling Aet of 1939.

, RELIABLE WOOL STOCK CORP. ET AL. 455 452 Complaint 1 t U That the respondents herein shall, within sixty fu1'ther ordered (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. IN THE J\U'ITER OF RELIABLE "'Vaal STOCle CORP. ET. AL.

CONSENT ORDER, ETC. , IN REGARI) TO THE ALLEGED VIOLATION OF THE FEDERAL TR..\DE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS 7I,Iar. 4, 1968 Docket 0-1308. Oomp7a,int, Mar. 4, 1968-Decision Consent order requiring a New York City distributor of raw wool stock to cease misbranding its wool products, CO:MPLAINT provisions of the Federal Trade Commission Act Pursuant to the of 1939, and by virtue of theand the 'V 001 Products Labeling Act authority vested in it by said Acts, the Federal Trade Commission 001 Stock Corp. a corpora-having reason to believe that Reliable 'V tion, and Jack Goldstein and Leon ICarson, individually and as officers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the vV 001 Products Labeling Act of 1939, and it a pearing 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 Reliable 1V 001 Stock Corp. is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Individual respondents Jack Goldstein and Leon Iearson are officers control the acts, prac-of said corporation. They formulate, dired and tices and policies of the corporate respondent including the acts and practices hereinafter referred to.

Respondents are engaged in purchasing and selling wool stock in the form of bales of woolen clips, to quilters and lining manufacturers in New York and out of state. Their office and principal place of business is located at 117-119l\1ercer Street, New York, New York. PAR. 2. Respondents, now and for some time last past, have introduced into commerce., sold, transported, distributed, delivered for Complaint 73 F. T, " isshipment, shipped, and offered for sale, in commerce, as "commerce defined in said 1V 001 Products Labeling Act of 1939, wool products as "wool product"is defined therein.

PAR. 3. Certain of said wool products "ere misbranded by the respondents 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 the eonstituent fibers contained therein. not limited thereto Among such misbranded ,,001 products, but were woolen,n elips stamped, tagged, labeled, or otherwise identified as containing 100% wool whereas in truth and in fact, such fabrics contained substantially different fibers and amounts of fibers than represented.

PAR. 4. Certain of said wool products ',e.re further misbranded by respondents in that they ,were not stamped, tagged, labled, or otherwise ide,ntified as required under the prm-isions of Section 4 (a) (2) 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 produds, but not limited thereto were woolen clips "ith labels on or affixed thereto, which.h failed to of the said wool pro-disclose the percentage of the total fiber "eight duct, exclusive of ornamentation not exceeding five per centum of said total fiber "eight of (1) wool fibers; (2) reprocessed wool; (3) reused wool; (4) each fiber other than wool when said percentage by weight of such fiber "as five per centum or more; and (5) the aggregate of all other fibers.

PAR. 5. The ads and practices of the respondents as set forth above Labeling Aet of 1939were, and are, in violation of the "\Vool Products 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 Ad. PAR. 6. Respondents are now, and for some time last past, have been engaged in the offering for sale, sale, and distribution of certain of their busi- products, namely woolen clips. In the course and condud ness as 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 New York to purchasers located in various other States of the United States, and maintain and at all tilDes RELIABLE WOOL STOCK CORP. ET AL. 457 455 Decision and Order mentioned herein have maintained, a substantial course of trade in said products in C01l1nlerCe, as "commerce " is defined in the Federal Trade Comnlission Aet.

PAR. 7. Respondents in the course and conduct of their business have Inade statements on invoices to their customers, misrepresenting the fiber content of certain of their products. Among such misrepresentations, but not limited thereto, were statements setting forth the fiber content thereof as "100% Reprocessed ",Vool " whereas, in truth and in fact, the product was not " 100% Reproeessed ",V 001" but contained substantially different fibers and amounts of fibers than represented.

PAR. 8. The acts and practices set out in Paragraph Seven have the tendeney and capaeity to mislead and deceive the purchasers of said products as to the true content thereof.

PAR. 9. 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.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the eaptioll hereof, and the respondents having been furnished thereafter "ith 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 ",V 001 Products Labeling Act of 1939 ; 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 fads 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 such complaint, and waivers and other provisions as required by the Commission s Rules; and The Coll1lnission having thereafter considered the matter and ha ving det,ermlned that it had reason to believe that the respondents have violated the said Ads, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed 41, 3.45-72- 458 FEDERAL TRADE'. COM.J.\IISSION DECISIONS Order 73 F. T.

consent agreement and placed such agreement on the public record for a neriod of thirty (30) days, now in further eonformity with the proeedure 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 Reliable vV 001 Stock Corp. is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 117-119 :Mercer Street, New York, New York. Respondents J aek Goldstein and Leon Karson are ollieers 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 Reliable \Yool Stock Corp., a eorporation, and its officers, and Jack Goldstein and Leon Karson individually and as officers of said corporation, and respondents representatives, agents and employees, directly or through any eorporate or other device, in connection with the manufacture for introduction into commerce, introduction into comnlerce, or offering for sale, sale, transportation, distribution, delivery for shipment or shipment, in commerce, of wool products, as "commerce" and "wool product" are defined in the Wool Products Labeling Act of 1939, do forthwith cease and desist from misbranding wool products by: 1. Falsely and deceptively stamping, tagging, labeling, or otherwise 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 showing in a clear and conspieuous manner, each element of information required to be disclosed by Section 4 (a) (2) of the \Y 001 Products Labeling Aet of 1939.

t is further ordered That respondents Reliable \V 001 Stock Corp. a corporation, and its officers, and Jack Goldstein and Leon I(arson, individually and as officers 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 woolen clips or other products, in commerce as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting the character or amount of constituent SMARTSHIRE COAT, INC. , ET AL. 459 455 Complaint fibers contained in such products on invoices or shipping memoranda applicable thereto, or in any other lUanneI'. It is further ordered That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the Con11llission a report in writing setting forth in detail the manner and form in which they have complied with this order.