Reign Teens, Ltd.

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IN THE NL\TTER OF REIGN TEENS, LTD., ET .AL.

CONSENT .order, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE WOOL PRODUCTS LABELING, THE TEXTILE FIBER PRODUCTS IDENTIFICATION, AND THE FEDERAL TRADE COllDIISSION ACTS Docket C-13Jf4. Complaint, June 1968-Decision, June, 1968 Consent order requiring a Ke" York City manufacturer of girls' and ladies coats and raincoats to cease misbranding the fiber content of its wool and textile fiber products.

CO~IPLAINT Pursuant to the provisions of the Federal Trade Commission Act the "\V 001 Products Labeling Act of 1939 and the Textile Fiber Products Identification Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Reign Teens, Ltd., a corporation, and Eugene 'V. Goldstein, indiyidually 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 '"\'"001 Profl11ds Labeling Act of 1939 and the Textile Fiber Products Identification 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 follmys: PARAGRAPH 1. Respondent Reign Teens, Ltd., is a corporation organized, existing and doing business under and by virtue of the la"\ys of the State of New Yor1\:.

Respondent Eugene ,V. Goldstein is an officer of said corporation. lie formulates, directs and controls the acts, practices and policies the corporate respondent including the acts and practices hereinafter referred to.

Respondents are manufacturers of girls~ andladies~ coats and raincoats, including both "\yool and textile products, "ith their office and principal place of business located at 520 Eighth Avenue, New York New York.

PAR. 2. Respondents, nmy and for some time last past, have manufactured for introduction into commerce, introduced into commerce" sold, transported, distributed, de.livered for shipment, shipped, and oiIerecl for sale, in commerce: as "commerce~: is defined in said "\Y 001 Complaint 73 F.

Products Labeling Act of 1939, wool products as "wool product is dep.ned therein.

P -\n. 3. Certain of said ,,001 products were. 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 "'ere. falsely and decepti ,'ely stumped, tagged, labeled, or other,ise identified ,,-ith respect to the character and amount of the constituent fibers contained therein. \..among such misbranded "' 001 products, but not limited thereto were girls~ coats stamped, tagged, labelecL 01' other,ise identified containing "90% Reprocessed ,Yool, 10% Other Fibers ~~ w' whereas in truth and in fact, such coats contained substantially different fibers and amounts of fibers than represented.

P A,R. 4. Certain of said "' 001 products were 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) of the ""'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 were wool products, namely gills ~ coats, "ith labels on or affixed thereto, which failed to disclose the percentage of the total fiber weight of the said "' 001 products, exclusive of ornamentation not exceeding five per centum of said total fiber ,,-eight, of (1) wool; (2) reprocessed ,\"001; (3) reused "'001: (4) each fiber other than wool, when said percentage by weight of such fiber \,as file per centum or more; and (:3) the aggregate of all other fibers.

PAn. 5. The acts and practices of the respondents as set forth a have were and are, in violation of the ,Y 001 Products Labeling -\.ct of UJ::W and the Rules and Regulations promulgated thereunder, and constituted, and no\y constitute, unfair methods of competition and unfair and deceptive acts and practices in coinmerce. within the intent and meaning of the Federal Trade Commission Act. \R. 6. Respondents are no'" and for some time last past hale been engaged in the introduction ~ delivery for introduction, manufacture for introduction, sale, advertising and oflering for sale, in commerce and in the transportation or causing to be transported in commerce and in the. importation into the l-;-united States, of textile fiber products and hale sold ~ o:fl:'ered for sale, advertised, delivered, transported and caused to be transported, textile fiber pl oducts, which hale been advertised or oflered for sale in commerce; and have sold, offered for sale, adyertiseel, eleliyereel, transport eel and caused to be transported REIGN TEENS, LTD.. ET AL. 1001 999 Decision and Order after shipment in commerce, textile. fiber products, either in their origina.l state or contained in other textile fiber products; as the terms commerce" and "textile. fiber product" are defined in the Textile Fiber Products Identification Act.

P.:\.R. 7. Certain of said textile fiber products .were misbranded by respondents in that they "were not stamped, tagged. label cd, or other- \Vise identified to show each element of information required to disclosed by Section 4 (b) of the Textile Fiber Products Identification Act, and in the manner and f0l1n as prescribed by the Rules and Regulations promulgate.d under said Act.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products ,with labels ,which failed to disclose the true generic names of the fibers present. P.:m. 8. The acts and practices of respondents, as set forth in Paragraphs Six and Seyen ,were, and are, in Ylolation of the Textile Fiber Prod nets Identification Act and the Rnles and Regulations promnlgated thereunder, and constituted, and now constitute unfair methods of competition and unfair and deceptive acts and practices. in commerce. under the Fe.de.ra 1 Trade Commission ~\..ct. DECISION .\XD ORDER The. Federal Trade Commission h,lying initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents hadng been furnished therafter with a copy of a draft of complaint ",hidl the Bureau of Textiles and Furs proposed to present to the Commission for its consideration and which if issued by the Commission, ",ould charge respondents ,with violation of the Federal Trade Commission Act, the \Y 001 Products Labeling ..:-\..ct of 19:)9 and the Textile Fiber Products Identification Act: The respondents and counsel for the Commission lm,-ing there.afterand admission byexecuted an agreement containing a consent order, an the respondents of n 11 the j llri~dictional facts set forth in the, a foresaid 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 la", has been violated as alleged in such CO111plnillt, and waiyel's ,md 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 hayc. violated the said Acts, and that compla int should issue ~tating its charges in tila t respect, and having thereupon accepted the executed 418- :.\4::"-i:::- , Decision and Order ri3 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 follo\ying jurisdictional findings, and enters the following order:

1. Respondent Reign Teens, Ltd., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New Yark, with its office and principal place of business located at 520 Eighth Avenue, K e"\, Yor1\:, New York. Respondent Eugene ,V. Goldstein is an officer of said corporation and his 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;.'! Oi'dei' That respondents Reign Teens, Ltd., a corporation, and its officers, and Eugene ,V. Goldstein, individually and as an officer of said corporation and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection "\with the manufacture for introduction into commerce, the introduetion into commerce, or the offering for sale, sale, transportation distribution, delivery for shipment or shipment, in commerce, of wool products, ns "commerce," and ""\,001 products" are defined in the 'Vool Products Labeling Act of 1939, do forth"\,ith cease and desist from misbranding "\'001 products by:

1. Falsely and deceptively stamping, tagging, labeling, or other- ,,'ise 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 conspicuous manner, each element of information required to be disclosed by Section 4 ( a) (:2) of the ,Y 001 Products Labeling Act of 1939.

1 t is fu?'ther o?Yle'l'ecl That respondents Reign Teens, Ltd., a corporatiOli, and its officers, and Eugene ,V. Goldstein, individually and as an officer of said corporation, and respondents' representatives agents and employees, directly or through any corporate or other device, in connection with the introduction, delivery for introduction manufacture for introduction, sale, advertising or offering for sale, in commerce, or the transportation or causing to be transported in com- ( I',iARSI DREES CORP. ET AL. 1003 999 'Complaint merce, or the importation into the United States, of any textile fiber product; or in connection with the sale, offering for salej advertising, delivery, transportation or causing to be. transported, of any textile offered for sale in con-fiber product 'which has been advertised or merc.e; or in connection with the sale, offering for sale, advertising, delivery, transportation, or c.ausing to be. transported j after shipment in commerce, of any textile fiber product, "whether in its original state or c.contained in other textile fiber products, as the. terms "commerce and "textile fiber product' are defined in the Textile Fiber Products Identification Act, do fortln,ith cease and desist from misbranding textile fiber products by fn,filing to affix a stamp, tag, label, or other means of identification to enc.h such textile fiber product showing in a dear, legible and conspicuous manner each element of information Tequired to be disclosed by Section 4 (b) of the Textile Fiber Products Ide.ntifieation Act.

It is fu?'thep 01'de1' That the respondent. corporation shall forthwith distribute a copy of this order to each of its operating divisions. I t is ,hl'1'thel' onler' 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 manner and form in