Alvic Fabrics Corp.

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order, I:- Tile MATTER ALVIC FABRICS CORP. ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSIO'i AND THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS Docket C-1467. Complaint, Dec. . 1.68 Decision Dec. 10, 19G8 Consent order requiring a l\ cw York City converter of greige textile fabrics to cease misbranding its textile fiber products. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act 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 Alvic Fabrics Corp. , a corporation, and Ellis R. Nichols and Victor Kurnit, individually and as offcers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and Rules and Regulations promulgated under the Textie 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:

ALVIC FABRICS CORP. ET AL. 1463 1462 Complaint PARAGRAPH 1. Respondent Alvic Fabrics Corp. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of New York.

Respondents Sells R. Nichols and Victor Kurnit are offcers of said corporation. They formulate, direct and control the acts practices and policies of the corporate respondent including the acts and practices hereinafter referred to. Respondents are converters of greige textile fabrics for the women s wear manufacturing trade, with their offce and principal place of business located at 469 Seventh Avenue, New York New York.

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 textie 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 textie fiber products, as the terms "commerce" and "textie fiber product" are defined in the Textile Fiber Products Identification Act.

PAR. 3. Certain of said textile fiber products were misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified to show each element of information required under the provisions of Section 4 (b) of the Textile Fiber Products Identification Act, and in the manner and form as prescribed by the Rules and Regulations promulgated under said Act.

Among such misbranded textile fiber products, but not limited thereto, were fabrics with labels on or affxed thereto which failed:

(a) To disclose the true generic name of the fibers present; and (b) To disclose the true percentage of the fibers present by weight.

(c) To disclose the name, or other identification used 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.

Decision and Order 74 F.

(d) To disclose the name of the country where textie fiber products imported by them were processed or manufactured. 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 the following respects: 1. Fiber trademarks used in conjunction with the required information did not appear in immediate conjunction with the generic names of the fibers nor did such trademarks and generic names appear in type or lettering of equal size and conspicuousness, in violation of Rule 17 (a) of the aforesaid Rules and Regulations.

2. A fiber trademark was used on a label without a full and complete fiber content disclosure in accordance with the Act and Regulations the first time the fiber trademark appeared on the said label, .in violation of Rule 17(b) of the aforesaid Rules and Regulations.

3. Samples, swatches, or specimens of textile fiber products subject to the Act and used to promote or effect sales of such textile fiber products, were not labeled to show their respective fiber content and other required information, in violation of Rule 21 (a) of the aforesaid Rules and Regulations. PAR. 5. 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 and Regulations promulgated thereunder and constituted, and now constitute, unfair and deceptive acts and practices and unfair methods of competition in commerce, within the intent and meaning of the Federal Trade Commission Act.

DECISION 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 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 a1l the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the ALVIC FABRICS CORP. ET AL. 1465 1462 Decision and Order 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 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 respondents have violated the said Acts, and that complaint should issue stating its charges in that respect . and the Commission having thereupon accepted thc executed agreement and placed such agreement on the public record and having duly considered the comments filed thereafter pursuant to !) 2.34 (b) of its Rules, now in further conformity with the procedure prescribed in such Rule, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order: 1. Respondent Alvic Fabrics Corp. is a corporation organized existing and doing business under and by virtue of the laws of the State of 1\ ew York, with its office and principal place of business located at 469 Seventh Avenue, Xew York, New York. RespondeClts Ellis R. Nichols and Victor Kurnit are offcers 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, and the proceeding is in the public interest.

ORDER It is ordered That respondents Alvic Fabrics Corp. , a corporation, and its offcers, and Ellis R. Nichols and Victor Kurnit, individually and as offcers 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 commerce, or the importation into the linited 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 Syllabus 74 F.

Textile Fiber Products Identification Act, do forthwith cease and desist from misbranding such products by: 1. Failing to affx a stamp, tag, label, or other means of identification to each such product 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 in conjunction with the required information on labels affxed to said textile fiber products without the generic name of the fiber appearing on said labels in immediate conjunction therewith and in type lettering of equal size and conspicuousness. 3. Using a fiber trademark on any label, without a fuil and complete fiber content disclosure being made in accordance with the Act and Regulations, the first time the fiber trademark appears on the label.

4. Failing to label samples, swatches, or specimens of textile fiber products subject to the Act, and which are used to promote or effect sales of such textile fiber products, in such a manner as to show their respective fiber contents and other required information.

It is fw.ther ordel' That the respondent corporation shail forthwith distribute a copy of this order to each of its operating divisions.

It is fw.ther ordered That the respondents herein shail, 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 which they have complied with this order.