Loomtogs, Inc., et al.

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Ix THE MATTER OF LOO:lTOGS, IXC. , ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSI01\ AND THE TEXTILE FIBER PRODUCTS IDENTIFICA TION ACTS Docket C-1460. Complaint, Dec. 1.968-Decislon, Dec. , 1968 Consent order requiring two )Je"\v York City sportswear manufacturers to cease misbranding and falsely advertising their textile fiber products. COMPLAINT Pursuant to the provisions of thc Federal Trade Commission Act 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 Loomtogs, Inc. a corporation, Sports Editions, Inc. , a corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under 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 Loomtogs, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Its executive offce and place of business was formerly located at 130 Fifth Avenue, New York New York and is presently located at 29 West Thirty-Eighth Street, New York, New York.

LOOMTOGS , INC. , ET AL. 1433 1432 Complaint Respondent Sports Editions, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of :\ew York, with its executive offce and place of business located at the above address.

Proposed respondents are engaged in the manufacture and sale of sportswear.

PAR. 2. Respondents are now, and for some time last past have been, engaged in the introduction, delivery for introduction manufacture 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 have 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 have 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 other textile fiber products; as the terms commerce" and "textile fiber product" are defined in the Textile Fiber Products Identification Act. PAR. 3. Certain of such textie fiber products were misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified as required under the provisions of 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 generic names of the fibers present; and 2. To disclose the name, or other identification issued and registered by the Commission, of the manufacturer of the product or one or more persons subj ect to Section 3 of the said Act with respect to such product.

PAR. 4. Certain of said textile fiber products were misbranded in violation of the Textile Fiber Products Identification Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in that samples, swatches and specimens of textile fiber products subject to the aforesaid Act, which were used to promote or effect sales of such textile fiber products, were not labeled to show their respective fiber content and other information required by Section 4 (b) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, in violation of Rule 21 (a) Complaint 74 F.

of the aforesaid Rules and Regulations. PAR. 5. Certain of said textie fiber products were falsely and deceptively advertised in that respondents 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 such textile fiber products, but not limited thereto was ladies sportswear which was falsely and deceptively advertised by means of a catalogue, distributed by respondents throughout the United States in that the true generic names of the fibers in such articles were not set forth. Also among such textile fiber products but not limited thereto were ladies' shifts, suits and jackets which were falsely and deceptively advertised by the respondents in issues of "Mademoiselle Glamour " and various other magazines having interstate circulation in that the true generic name of the fibers in the above products were not set forth.

PAR. 6. By means of the aforesaid advertisements and others of similar import and meaning not specifically referred to herein respondents falsely and deceptively advertised textile fiber products in violation of the Textile Fiber Products Identification Act in that said textile fiber products were not advertised in accordance with the Rules and Regulations thereunder in the following respects:

A. A fiber trademark "vas llsed in advertising textile fiber products, namely ladies' dresses, without a full disclosure of the fiber content information required by the said Act and the Rules and Regulations thereunder in at least one instance in said advel,tisement, in violation of Rule 41 (a) of the aforesaid Rules and Regulations.

B. A fiber trademark was used in advertising textile fiber products, namely ladies' dresses, containing more than one fiber and such fiber trademark did not appear in the required fiber content information in immediate proximity and conjunction with the gencl'c name of the fiber in plainly legible type or lettering of equal size and conspicuousness, in violation of Rule 41 (b) of the aforesaid Rules and Regulations.

C. A fiber trademark was used in advertising textile fiber LOO:vTOGS , INC. , E'l AL. 1435 1432 Decision and Order products, namely ladies ' dresses, containing only one fiber and such fiber trademark did not appear, at least once in the said advertisement, in immediate proximity and conjunction \With the generic name of the fiber, in plainly legible and conspicuous type, in violation of Rule 41 (c) of the Hforesairl Ellles and Regulations.

PAR. 7. The acts and practices of respondents, as set forth above, were and are, in violation of the Textile Fiber Products Identification Act and the Rules ane! Reguations promulgated thereunder, and constituted, and now constitute unfair methods of competition and unfair and deceptive acts or practices in commerce, under the Federal Trade Commission Act. DECISION Aid 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 a copy of a draft of complaint which the Bureau ()f Textiles and Furs proposed to present to the Commission for its consideration and which, if issued by the Commission, would charg-e respondents with violation of the Federal Trarle Commission Act and the Textile Fiber Products Identification Act; 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 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 in such complaint, and y',raivel' s ano other provisions as required by the Commission s Eules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Acts, and that complaint should issue stating' its charg-es 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 3LJ (b) of its Rules, the Commission hereby issues its complaint,. makes the follo\ving jurisdictional findings, and enters the -following order:

1. Respondent Loomtogs, Inc., is a corporatior, 0l'ganize6 existing and doing business under and by virtue oI the laws of the State of New York. Its executive offce a.nd principal place of Decision and Order 74 F. business was formerly located at 130 Fifth A venue, New York New York, and is presently located at 29 West Thirty-Eighth Street, New York, New York.

Respondent Sports Editions, Inc. , is a corporation organized existing and doing business under and by virtue of the Jaws of the State of New York. Its executive offce and principal place of business was formerly located at 130 Fifth Avenue, New York N ew York, and is presently located at 29 West Thirty-Eighth Street, New York, New York.

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 Loomtogs, Inc. , a corporation and its offcers, Sports Editions, Inc., a corporation, and its offcers 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 importation into the United States of any textile fiber product; or in connection with the sale, offering for sale, advertising, delivery, transportation or causing to be transported, of any textile 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: A. Misbranding textile fiber products by 1. Failing 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. Failing to affx labels to samples, swatches or specimens of textile fiber products used to promote or effect the sale of such textile fiber products showing in words and figures plainly legible a11 the information required to be disclosed by Section 4 (b) of the Textile Fiber LOO:lTOGS, INC. , ET AL. 1437 1432 Order Products Identification Act.

B. Falsely and deceptively advertising textie fiber products by:

1. Making any representation, 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, label or other means of identification under Sections 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 textile fiber product need not be stated. 2. Using a fiber trademark in advertisements without a fun disclosure of the required content information in at least one instance in the said advertisement. 3. Using a fiber trademark in advertising textile fiber products containing more than one fiber without such fiber trademark appearing in the required fiber content information in immediate proximity and conjunction with the generic name of the fiber in plainly legible type or lettering of equal size and conspicuousness. 4. Using a fiber trademark in advertising textile fiber products containing only one fiber without such fiber trademark appearing at least once in the advertisement, in immediate proximity and conjunction with the generic name of the fiber, in plainly legible and conspicuous type.

It is jurther ordered That the respondent corporations shah forthwith distribute a copy of this order to each of their operating divisions.

It is jurthe1' ordered That the respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order. 1438 FEDERAL TRADE COYIMISSION DECISIONS Complaint 74 F.