Selvy Fur Co., Inc

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IN THE ;\LATTER OF SELVY FUR CO., INC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket C-1577. Complaint, Aug. 7, 1969-Decision, Aug. 7, 1969 Consent order requiring a New York City manufacturing furrier to cease misbranding, falsely invoicing and deceptively guaranteeing its fur products.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Selvy Fur Co. , Inc. , a corporation, and Benjamin Weinstein and Peter Weinstein, 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 Fur Products Labeling 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 Selvy Fur Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of ;\ ew York.

Respondents Benjamin Weinstein and Peter Weinstein are offeers of the corporate respondent. They formulate, direct and control the acts, practices and policies of the said corporate respondent including those hereinafter set forth. Respondents are manufacturers of fur products with their offce and principal place of business located at 155 West 29th Street, New York, New York.

PAR. 2. Respondents are now, and for some time last past have SELVY FUR CO. , INC. , ET AL. 305 304 Complaint been engaged in the introduction into commerce, and in the manufacture for introduction into commerce, and in the sale, advertising and offering for sale in commerce, and in the transportation and distribution in commerce, of fur products; and have manufactured for sale, sold, advertised, offered for sale, transported and distributed fur products which have been made in whole or in part of furs which have been shipped and received in commerce, as the terms "commerce fuy " and " fur product" are defined in the Fur Products Labeling Act. PAR. 3. Certain of said fur products were misbranded in that they were not labeled as required under the provisions of Section 4 (2) of the Fur Products Labeling Act and in the manner and form prescribed by the Rules and Regulations promulgated thereunder.

Among such misbranded fur products, but not limited thereto were fur products with labels which failed: 1. To show the true animal name of the fur used in such fur products.

2. To disclose that the fur contained in the fur products was bleached, dyed, or otherwise artificially colored, when such was the fact.

PAR. 1. Certain of said fur products were misbranded in violation of the Fur Products Labeling. Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects:

1. The term "natural" was not used on labels to describe fur products which were not pointed, bleached, dyed, tip-dyed, or otherwise artificially colored in violation of Rule 19 (g) of said Rules and Regulations.

2. Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was not set forth separately on labels with respect to each section of fur products composed of two or more sections containing different animal furs, in violation of Rule 36 of said Rules and Regulations.

PAR. 5. Certain of said fur products were falsely and deceptively invoiced by the respondents in that they were not invoiced as required by Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated under such Act. Among such falsely and deceptively invoiced fur products, but Complaint 76 F.

not limited thereto, was a fur product covered by an invoice which failed:

1. To show the true animal name of the fur used in such fur product.

2. To disclose that the fur contained in such fur product was bleached, dyed, or otherwise artificially colored, when such was the fact.

PAR. 6. Certain of said fur products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act in that they were not invoiced in accordance with the Rules and Regulations promulgated thereunder in the following respects: 1. Information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was set forth on invoices in abbreviated form in violation of Rule 4 of said Rules and Regulations. 2. The term "Dyed Broadtail-processed Lamb" was not set forth on invoices in the manner required by law, in violation of Rule 10 of said Rules and Regulations.

3. The term " natural" \vas not used on invoices to descirbe fur products which were not pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Rule 19 (g) of said Rules and Regulations.

4. Information required under Section 5(b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was not set forth separately on invoices with respect to each section of fur products composed of two or more sections containing different animal furs, in violation of Rule 36 of said Rules and Regulations.

PAR. 7. Certain of said fur products were falsely and deceptively invoiced with respect to the name or designation of the animajor' animals that produced the fur from which the said fur products had been manufactured; in violation of Section 5(b) (2) of the Fur Products Labeling Act.

Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products which were described as Broadtail" thereby implying that the fur contained therein was entitled to the designation "Broadtail Lamb" when in truth and in fact it was not entitled to such designation. PAR. 8. Respondents furnished false guaranties under Section 10 (b) of the Fur Products Labeling Act with respect to certain of their fur products by falsely representing in writing that respondents had a continuing guaranty on file with the Federal SELVY FUR CO. , INC. , ET AL. 307 304 Complaint Trade Commission when respondents in furnishing such guaranties had reason to believe that the fur products so falsely guarantied would be introduced, sold, transported and distributed in commerce, in violation of Rule 48 (c) of said Rules and Regulations under the Fur Products Labeling Act and Section 10 (b) of said Act.

PAR. 9. The aforesaid acts and practices of respondents, as herein alleged, are in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder and 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 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 Fur Products Labeling 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 settement 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 and 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 Selvy Fur Co., Inc., is a corporation organized existing and doing business under and by virtue of the laws of 308 FEDERAL TRADE C011lVIISSION DECISIONS Decision and Order 76 F. the State of New York, with its offce and principal place of business located at I55 West 29th Street, city of New York, State of J\Tew York.

Respondents Benjamin Weinstein and Peter Weinstein 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 ordaed That respondents Selvy Fur Co. , Inc., a corporation, and its offcers, and Benjamin Weinstein and Peter Weinstein, 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 manufacture for introduction, into commerce, or the sale, advertising or offering for sale in commerce, or the transportation or distribution in commerce, of any fur product; or in connection \with the manufacture for sale, sale, advertising, offering for sale, transportation or distribution of any fur product which is made in whole or in part of fur which has been shipped and received in commerce, as the terms "commerce fur" and fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. JVisbranding fur products by:

1. Failing to affx labels to fur products showing in words and in figures plainly legible all of the information required to be disclosed by each of the subsections of Section 4 (2) of the Fur Products Labeling Act. 2. Failing to use the term "natural" on labels to describe fur products which are not pointed, bleached dyed, tip-dyed, or otherwise artificially colored. 3. Failing to set forth information required under Section 4 of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder with respect to each section of fur products composed of two or more sections containing different animal furs. B. Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoices, as the term "invoice " is SELVY FUR CO. , INC. , ET AL. 309 304 Decision and Order defined in the Fur Products Labeling Act, showing in words and figures plainly legible al1 the information required to be disclosed by each of the subsections of Section 5 (b) (I) of the Fur Products Labeling Act. 2. Setting forth information required on invoices under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations, in abbreviated form. 3. Failing to set forth the term "Dyed Broadtailprocessed Lamb" on invoices in the manner required where an election is made to use that term instead of the words " Dyed Lamb.

4. Failing to use the term "natural" on invoices to describe fur products which are not pointed, bleached dyed, tip-dyed, or otherwise artificially colored. 5. Failing to set forth information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder, separately on invoices with respect to each section of fur products composed of two or more sections containing different animal furs.

6. Setting forth on an invoice pertaining thereto, any false or deceptive information with respect to the name or designation of the animal or animals that produced the fur contained in such fur products. It iB further 01'dered That respondents Selvy Fur Co. , Inc., a corporation, and its offcers, and Benjamin Weinstein and Peter Weinst€in, 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 fur product is not misbranded, falsely invoiced, or falsely advertised when the respondents have reason to believe that such fur product may be introduced, sold, transported, or distributed in commerce. It is further 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 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. 310 FEDERAL TRADE COYIMISSION DECISIONS Complaint 76 F.