Chariot Textiles Corp.

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IN THE l\LATTER OF CHARIOT TEXTILES CORP. ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\nnSSION AND THE 'WOOL PRODUCTS LABELING ACTS Docket 0-1327, Oo1Jtpla-int, April 30, 1968-Decision, Alw'il 30, 1968 Consent order requiring a New York City importer of fabrics to cease misbranding its wool products.

CO1\IPkUNT Pursuant to the provisions of the Federal Trade Commission Act and the \Vool Products Labeling Act. of 1030, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that Chariot Textiles Corp" a corporation, and Charles Rosengarten and Elliot Rosengarten, individually and as officers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the R,ules and Regulations promulgated under the vV 001 Products Labeling Act of 1939, 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:

PARAGR..-lph 1. Respondent Chariot Textiles Corp, is a corporation oforganized,theexistingStateand doingofbusinessNewunder York.and by virtue of the laws Individual respondents Charles Rosengarten and Elliot Rosengarten are officers of said corporation. They formulate, direct and control the acts, practices and policies of said corporation, including the acts and practices hereinafter referred to.

Respondents are importers of wool products (fabrics) and eonverters of piece goods. Their office and principal place of business located at 505 Eighth Avenue, New York, New York. PAR. 2. Respondents now, and Tor some time last past, have introclueecl into C'omrnerce, E,olct transported, distributed, delivered for shipment, shipped, and offered for sale" in commerce, as "comn:ierce 418-345-- 72---- Decision and Order 73 F.

is defined in the "\V 001 Products Labeling Act of 1939, wool products as "wool product" is defined therein.

PAR, 3, Certain of said wool products \,ere misbranded within the intent and meaning of Section 4(a) (1) of the ,Yool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder in that they were falsely and decepti,e1y 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 ,,001 products, namely fabrics, stamped, tagged, In beled, or otherwise identified as containing 7:'5 percent reprocessed ',001 , 15 percent fur fibers, 10 percent nylon, "whereas in truth and in fact, such fabrics contained substantially different amounts and types of fibers than were set forth on the, labels affixed thereto, PAR, 4, Certain of said wool products "'ere further misbranded by respondents in that they ",ere not stamped, tagged, labeled, or otherwise identified as required under the provisions of Section 4: (a) (:2) the ,Vool 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 ",ool products, namely fabrics 'I"ith labels on or affixed thereto which failed to disclose the percentag' 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 ""001; (3') reused ""001; (4) each fiber other than wool, when said percentage by weight of such fiber ,,"as ;) per centum or more: and (5) the aggregate of all other fibers.

PAR. 5. The acts and practices of the respondents as set forth abmwere. and are, in violation of the ,Vool Products Labeling,' Act. of 1009 and the Rules and Regulations promulgated thereunder, and constituted, and 11m," constitute, unfair and c1ecel'tiye acts and practices and unfair methods of eompetitio11 in commerce~ 'I,"within the intent and meaning of the Federal Trade Commission ..:-~ct. DECISION A XD ORDER The Federal Trade Commission having initiated an inn'stigation of certain acts and practices of the respondents named in the cn ptlon hereof, and the respondents having- been furnished thereafter ,with (l cop~' of a draft. of complaint ,,"which the Bureau of Textiles and Furs proposed to present to the. Commission for its consideration and ,,"which CHARIOT TEXTILES CORP. ET AL, 795 793 Decision and Order if issued by the Commission, would charge respondents ,with violation of the Federal Trade Commission, ct and the ,Y 001 Products Labeling ~c\..ct 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 facts set forth in the aforesnic1 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 In.,,- has been violated as nl1egecl 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 belie,' e that the respondents have i'iolatecl 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) clays, now in further collformity ,....ith the procedure prescribed in ~ 2.34 (b) of its Rules, the Commission hereby issues its complaint, makes the follo\ying' jurisdictional findings, and ellters the following order:

1. Respondent Chariot Textiles Corp. is a corporation organized existing and doing business under and by yirtne of the b,ys of the State of New York, ,with its office and principal place of business located at 505 Eighth J~..venue, Ne,v York, Ne\V York. Res )ondents Charles Rosen.Q:artC'll and Elliot RosenQ"arten are OD'ieels 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, a ncl the proceeding is in the public interest.

ORDER It is onlei' That respondents Chariot TE'xtiles Corp. , a corporation, and its oflieers, and Charles Rosengarten and Elliot Rosengarten individually and as officers of said corporation, ancll'esponc1e.nts' representatives, agents and employees, directly or through any corporate or other device in connection ,with the intro(lurtion into commerce, or the onering for sale, sale, transportation, (listribution, delivery for shipment or shipment in commerce, or wool products, as "eomn1erce and " ,yool product." are d('illlf'd in t1w ,Yool Products Labeling Act of 1930, do fort Inyith cease a11(l desist from mj~:hli1)l(ljnp: ~:lich products by: 796 FEDERAL TR./1DE COJ\DIISSION DECISIONS 'Complaint 73 F, 1, Falsely or deceptively stamping, tagging, labeling, or otherwise identifying such products as to the character or an1count 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 showino' in a clear and conspicuous manner, each element of information required to be disclosed by Section 4(a) (2) of the ,",Tool Products Labeling Act of 1939, It is lui'thel' onle1? That the respondent corporation shall forthwith distribute a copy of the Order to each of its operating divisions. I t is fu1?thel? onle1? That the respondents herein shall, within sixty (60) days after service upon thell1 of this order, file with the Commission a report in writing setting forth in detail the manner and form in w.which they have complied with this order.