Masterson, Inc.

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

IN THE MATTER OF MASTERSON, INC.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION, THE WOOL PRODUCTS LABELING AND THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS Docket C-1444. Complaint, Nov. 4, 196B-Decision, Nov. 4, 1968 Consent order requiring a Chicago, Ill. , manufacturer of men s and boys outerwear to cease misbranding the fiber content of its wool and textile fiber products and falsely advertising its textile fiber products. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, the Wool Products Labeling Act of 1939 and the Textie 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 Masterson, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said Acts and the Rules and Regulations promulgated under the Wool Products 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 follows:

PARAGRAPH 1. Respondent Masterson, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Mississippi with its offce and principal place of business located at 847 West Jackson Boulevard, Chicago, IIinois.

The respondent is engaged in the manufacture and sale of men s and boys' outerwear.

PAR. 2. Respondent, now and for some time last past, has 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 the Wool Products Labeling Act of 1939, wool products as wool product" is defined therein.

PAR. 3. Certain of said wool products were misbranded by the respondent within the intent and meaning of Section 4 (a) (1) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, in that they were falsely and deceptively st!,mped, tagged, labeled, or otherwise identified Complaint 74 F.

with respect to the character and amount of the constituent fibers contained therein.

Among such misbranded wool products, but not limited thereto were men s and boys' jackets stamped, tagged, labeled or otherwise identified as containing 90 % reprocessed wool and 100/0 other fibers whereas in truth and in fact, such men s and boys jackets contained substantially different fibers and amounts of fibers than represented.

PAR. 4. Certain of said wool products were further misbranded by the respondent in that they were not stamped, tagged, labeled or otherwise identified as required under the provisions of Section 4 (a) (2) of the Wool 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 wool products, namely men s and boys' jackets, with labels on or affxed thereto, which failed to disclose the percentage of the total fiber weight of the wool products, 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, 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 respondent as set forth above in Paragraphs Three and Four were, and are, in violation of the Wool 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. Respondent is now and for sometime last past has been engaged in the introduction, delivery for introduction, manufacturing for introduction, sale, advertising, and offering for sale in commerce, and in the transportation or causing to be transported in commerce, and in the importation into the United States, of textile fiber products; and has sold, offered for sale advertised, delivered, transported and caused to be transported, textile fiber products, which have been advertised or offered for sale, in commerce; and has sold, offered for sale, advertised delivered, transported and caused to be transported, after shipment in commerce, textile fiber products, either in their original state or contained in their textile fiber products; as the terms MASTERSON , INC. 1157 1155 Complaint commerce" and "textile fiber product" are defined in the Textile Fiber Products Identification Act.

PAR. 7. Certain of such textile fiber products were misbranded by the respondent in that they were not stamped, tagged, labeled or otherwise identified to show each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act, and in the manner and form prescribed by the Rules and Regulations promulgated under said Act. Among such misbranded textile fiber products, but not limited thereto, were textile fiber products with labels which failed; 1. To disclose the true percentage of the fibers present weight;

2. To disclose the true generic names of the fibers present; and 3. To disclose the name, or other identification issued and registered by the Commission, of the manufacturer of the product or one or more persons subject to Section 3 of the said Act, with respect to such product.

PAR. 8. Certain of said textile fiber products were misbranded in violation of the Textie Fiber Products Identification Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects: (a) Fiber trademarks appeared on labels without the generic names of the fibers appearing on such labels, in violation of Rule 17 (a) of the aforesaid Rules and Regulations. (b) Generic names and fiber trademarks were used on labels without a full and complete fiber content disclosure appearing On such labels, in violation of Rule 17(b) of the aforesaid Rules and Regulations.

PAR. 9. Certain of said textile fiber products were falsely and deceptively advertised in that respondent in making disclosures or implications as to the fiber content of such textile fiber products in written advertisements used to aid, promote and assist, directly or indirectly, in the sale or offering for sale of said products failed to set forth the required information as to fiber content as specified by Section 4 (c) of the Textile Fiber Products Identification Act and in the manner and form prescribed by the Rules and Regulations promulgated under said Act. Among the aforesaid advertisements, but not limited thereto were advertisements of the respondent which appeared in issues of a catalogue, printed and distributed by respondent throughout the United States.

Among such falsely and deceptively advertised textile fiber 1158 FEDERAL TRADE COMMISSIOK DECISIONS Decision and Order 74 F.

products, but not limited thereto, were textile fiber products which were advertised by means of fiber implying terms such as corduroy, denim" and "madras" among others but not limited thereto, without setting forth the true generic names of the fibers present in the said textile fiber products. PAR. 10. The acts and practices of the respondent, as set forth above, in Paragraphs Seven, Eight and Nine, were and are, in violation of the Textile Fiber Products Identification Act 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, under the Federal Trade Commission Act.

DECISION AND 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 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 respondent with violation of the Federal Trade Commission Act, the Wool Products Labeling Act of 1939 and the Textie Fiber Products Identification Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of alj the jurisdictional facts 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 respondent that the law has been violated as alleged 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 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 placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in 34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Masterson, Inc. , is a corporation organized, existipg- and doing business under and by virtue of the laws of MASTERSON , INC. 1159 1155 Decision and Order the State of Mississippi, with its offce and principal place of business Jocated at 847 West Jackson Boulevard, Chicago Ilinois.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the puhlic interest.

ORDER It is ordered That respondent Masterson, Inc., a corporation and its offcers, and respondent' s representatives, agents and employees, directly or through any 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 "wool product" are defined in the Wool Products Labeling Act of 1939, do forthwith cease and desist from misbranding such 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 affx 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 Wool Products Labeling Act of 1939.

It is further Qj'de?'ed That respondent Masterson, Inc. , a corporation, and its officers, and respondent's 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 commerce, or the importation into the United States, of any textie fiber product; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, of any textie fiber product which has been advertised or offered for sale in commerce; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, after shipment in commerce, of any textile fiber product, whether in its original 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, do forthwith cease and desist from: Syllabus 74 F.

A. Misbranding textile fiber products by: 1. Failng to affx labels to such textile fiber products showing in a clear, legible and conspicuous manner each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act.

2. Using a fiber trademark on labels affxed to such textile fiber products without the generic name of the fiber appearing on such label.

3. Using a generic name or fiber trademark on any label, whether required or nonrequired, without making a full and complete fiber content disclosure in accordance with the Act and the Rules and Regulations thereunder the first time such generic name or fiber trademark appears on the label.

B. Falsely and deceptively advertising textile fiber products by making any representations, directly or by implication, as to the fiber content of any textile fiber product in any written advertisement which is used to aid, promote or assist directly or indirectly, in the sale or offering for sale of such textile fiber product, unless the same information required to be shown on the stamp, tag, or label or other means of identification under Section 4 (b) (1) and (2) of the Textile Fiber Products Identification Act is contained in the said advertisement, except that the percentages of the fibers present in the textie fib€r product need not be stated. It is further ordel' That the respondent corporation shall forthwith distribute a copy of this Order to each of its operating divisions.

It is further ordered 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. IN THE MA TTER OF GLEKCOE CARPET MILLS, INC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FBDERAL TRADE COMMISSION AND THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS GLENCOE CARPET MILLS, INC., ET AL. 1161 1160 Complaint