Sally Gee, Inc.

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IN THE :vA TTER OF SALLY GEE, INC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COME\ISSION AND THE FLAMMABLE FABRICS ACTS Docket C-14G4. Complaint, Dec. 1968-Decision, Dec. 1968 Consent order requiring a New York City importer of wearing apparel to cease marketing dangerously flammable products. COC\PLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Flammable Fabrics Act, as amended, and by virtue of the authority vested in it by said Acts, the Federal Trade , Inc., a cor-Commission, having reason to believe that Sally Gee poration, and Howard Goldenstein, individually and as an officer of said corporation, hereinafter referred to as respondents have violated the provisions of said Acts and the Rules and asRegulations promulgated under the Flammable Fabrics Act, amended, 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: P ARAGRAI'H 1. Respondent Sally Gee, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of :\ew York.

1452 FEDERAL TRADE COMMISSION DEC;SIONS Decision and Order 74 F. Respondent Howard Goldenstein is an offcer of the corporate respondent. He formulates, directs and controls the acts, practices and policies of the said corporate respondent including those hereinafter set forth.

Respondents are engaged in the importation and sale of wearing apparel, including, but not limited to, ladies' scarves. The business address of the respondents is 1 West 37th Street, :\ ew York, New York.

PAR. 2. Respondents are now and for some time last past have been engaged in the sale and offering for sale, in commerce, and in the importation into the United States, and have introduced delivered for introduction, transported and caused to be transported in commerce, and have sold or delivered after sale or shipment in commerce, products, as the terms "commerce" and product" are defined in the Flammable Fabrics Act, which products failed to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the Flammable Fabrics Act, as amended.

Among such products mentioned hereinabove were ladies scarves.

PAR. 3. The aforesaid acts and practices of respondents were and are in violation of the Flammable Fabrics Act, as amended 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. DECISI01\ 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 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 Flammable Fabrics Act, as amended; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of al1 the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agrecment is for settemcnt purposes only and does not constitute an admission by respondents that the Jaw has been violated as alleged in such complaint, and waivers and other provi- SALLY GEE, INC. , ET AL. 1453 1451 Decision and Order sions 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 respondents have 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 Sally Gee, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 1 West 37th Street, Kew York, New York. Respondent Howard Goldenstein is an offcer 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 is ordered That the respondents Sally Gee, Inc., a corporation, and its offcers, and Howard Goldenstein, individually and as an offcer of said corporation, and respondents' representatives agents and employees, directly or through any corporate or other device, do forthwith cease and desist from manufacturing for sale, seIJing, offering for sale, in commerce, or importing into the United States, or introducing, delivering for introduction transporting or causing to be transported in commerce, or selling or delivering after sale or shipment in commerce, any product as "commerce" and "product" are defined in the Flammable Fabrics Act, as amended, which fails to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the aforesaid Act. It is further ordered That the respondents herein shall, within ten (10) days after service upon them of this Order, file with the Commission an interim special report in writing setting forth the respondents' intention as to compliance with this Order. This interim special report shall also advise the Commission fully and specifically concerning the identity of the product which gave rise to the complaint, (1) the amount of such product in inventory, 1454 FEDERAL TRADE COMMISSION DECISI01\S Complaint 74 F.

(2) any action taken to notify customers of the flammabilty of such product and the results thereof and (3) any disposition of such product since April 4, 1968. Such report shah further inform the Commission whether respondents have in inventory any fabric product or related material having a plain surface and made of silk, rayon or cotton or combinations thereof in a weight of two ounces or less per square yard or fabric \with a raised fiber surface made of cotton or rayon or combinations thereof. Respondents will submit representative samples of any such fabric, product or related material with this report. Samples of the fabric, product or related material shah be no less than one square yard. It is furthe?' ordered That the respondent corporation shah forthwith distribute a copy of this Order to each of its operating divisions.

It is fwther onlered 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