Paramount Quilting Corp

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IN THE MATTER OF PARAMOUNT QUILTING CORP., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION' OF THE FEDERAL TRADE COMMISSION, THE TEXTILE FIBER PRODUCTS IDENTIFICATION AND THE WOOL PRODUCTS LABELING ACTS Docket C-1576. Complaint, Aug. 1969 Decision Aug. 1969 Consent order requiring a Bronx quilting manufacturer to cease misbranding its wool and text:le fiber products, falsely invoicing its textile fiber products, furnishing false guarantees and failng to maintain quired records.

COMPLAIN1' Pursuant to the provisions of the Federal Trade Commission Act, the Textile Fiber Products Identification Act and the Wool Products Labeling Act of 1939 , and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Paramount Quilting Corp., a corporation and Erwin Blum and Hyman D. Parker, individually and as offcers of said 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 the Wool Products Labeling Act of 1939, 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 Paramount Quilting Corp. is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Its offce and principal place of business is located at 4246 Park A venue, Bronx, New York.

Respondents Erwin Blum and Hyman D. Parker are offcers of said corporate respondent. They formulate, direct and control the PARAMOUNT QUILTING CORP. , ET AL. 299 298 Complaint acts, practices and policies of said corporation. Their address is the same as that of said corporation.

Respondents are manufacturers of textie fiber products and wool products.

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

PAR. 3. Certain of said textie fiber products were misbranded by respondents 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 quiled materials with labels which failed: (1) To disclose the true percentage of the fibers present by weight; and (2) To disclose the true generic names of the fibers present. PAR. 4. Respondents have failed to maintain proper records showing the fiber content of the textile fiber products manufactured by them in violation of Section 6 (a) of the Textile Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder.

PAR. 5. Respondents have furnished false guaranties that their textile fiber products were not misbranded in violation of Section 10 of the Textile Fiber Products Identification Act. PAR. 6. The acts and practices of respondents, as set forth above were, and are, in violation of the Textie Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, and constituted, and now constitute, unfair methods 300 FEDERAL TRADE CO:VIlVIISSION DECISIONS Complaint 76 F.

of competition and unfair and deceptive acts 01' practices, in commerce, under the Federal Trade Commission Act. PAR. 7. Respondents, now and for some time last past, have 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. 8. Certain of said wool products were misbranded by respondents 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 products, namely quilted materials, with labels on or affxed thereto which failed to disclose the percentage of the total fiber weight of the said 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. 9. The acts and practices of the respondents as set forth in Paragraph Eight 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 and deceptive acts and practices and unfair methods of competition in commerce, within the intent and meaning of the Federal Trade Commission Act.

PAR. 10. Respondents, now and for some time last past, have been engaged in the offering for sale, sale and distribution of products, namely quilted interlining materials, to garment manufacturers. In the course and conduct of their business, respondents now cause and for some time last past, have caused their said products, when sold, to be shipped from their place of business in the State of New York to purchasers located in various other States of the United States and maintain, and at all times mentioned herein, have maintained a substantial course of trade in said products in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 11. Respondents in the course and conduct of their business, as aforesaid, have made statements on invoices and shipping PARAMOUNT QUILTING CORP. , ET AL. 301 298 Decision and Order memoranda to their customers misrepresenting the fiber content of their said products.

Among such misrepresentations, but not limited thereto, were statements representing the fiber content thereof as "50/50 wool" whereas, in truth and in fact, the products contained different amounts of woolen fibers and also contained different fibers and amounts of fibers than represented.

PAR. 12. The acts and practices set out in Paragraph Eleven have had and now have the tendency and capacity to mislead and deceive the purchasers of said products as to the true content thereof and were and are all to the prejudice and injury of the public and constituted, and now constitute, unfair and deceptive acts and practices 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, the Textile Fiber Products Identification Act and the Wool Products Labeling Act of 1939; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of aJl 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 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 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 Decision and Order 76 F.

Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters ' he following order: 1. Respondent Paramount Quiling Corp. is a corporation organized, existing and doing business under the laws of the State of :-ew York, with its offce and principal place of business located at 4246 Park Avenue, Bronx, N ew York.

Respondents Erwin Blum and Hyman D. Parker 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 Paramount Quilting Corp. a corporation, and its offcers, and Erwin Blum and Hyman D. Parker, 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 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 ((comnlerce" and "textile fiber product" are defined in the Textile Fiber Products Identiflcation Act, do forthwith cease and desist from:

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

B. Failing to maintain reeords of fiber content of textie fiber products manufactured by them, as required by Section PARAMOUNT QUILTING CORP. , ET AL. 303 298 Decision and Order 6 (a) of the Textile Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder. It is further ordered That respondents Paramount QuiJting Corp. , a corporation, and its offcers, and Erwin Blum and Hyman D. Parker, individually and as offcers of said corporation and respondents' representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from furnishing a false guaranty that any textile fiber product is not misbranded or falsely invoiced. It is further ordered That respondents Paramount Quilting Corp. , a corporation, and its offcers, and Erwin Blum and Hyman D. Parker, 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, or the 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 failing to securely affx to or place on each such product a stamp, tag, label or other means of identification correctly sho\ving 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 ordered That respondents Paramount Quiling Corp. , a corporation, and its offcers, and Erwin Blum and Hyman D. Parker, 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 offering for sale, sale or distribution of quiled materials or any other textile products in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting the character or amount of constituent fibers contained in quilted products or any other textile products on invoices or shipping memoranda applicable thereto or in any other manner.

It is furthe1. ordered That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions.

It is further ordered That the respondents herein shall, within Decision and Order 76 F.

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.