Arjay Batting Corp

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IN THE MATTER OF ARJAY BATTIKG CORP., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-1620. Compla.int, Nov. 1969 Decision, Nov. , 1969 Consent order requiring a Brooklyn, N.Y., manufacturer of batting for quilting to cease misbranding and falsely invoicing its wool products. COMPLANT Pursuant to the provisions of the Federal Trade Commission 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 Arjay Batting Corp. , a corporation, and Jacob Lowinger, individually and as an offcer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under 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 Arjay Batting Corp. is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of New York. Its offce and principal place of business is located at 3614 15th Avenue, Brooklyn, New York. Individual respondent Jacob Lowinger is the principal offcer said corporation. He formulates, directs and controls the policies acts, and practices of said corporation. His offce and principal place of business is the same of said corporation. Complaint 76 F.

The respondents are manufacturers of batting which is sold to quilting manufacturers.

PAR. 2. Respondents now and for some time last past have manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment shipped, and offered for sale, in commerce, as "commerce" is defined in said Wool Products Labeling Act of 1939, wool products as "wool product" is defined therein.

PAR. 3. Certain of said wool products were misbranded by respondents within the intent and meaning of Section 4 (a) (1) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, or otherwise identified with respect to the character and amount of the constituent fibers contained therein.

Among such misbranded wool products, but not limited thereto were woo! products, namely batting materials, which contained substantially different amounts and types of fibers than as represented.

PAR. 4. Certain of said wool products were further 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 wool products, namely batting 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. 5. The acts and practices of the respondents as set forth in Paragraphs Three and Four 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. 6. Respondents now and for some time last past have been ARJAY BATTING CORP. , ET AL. 585 583 Complaint engaged in the advertising, offering for sale, sale and distribution of products, namely batting materials, in commerce, and have can sed 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 al1 times mentioned herein, have maintained a substantial course of trade in said products in commerce, as "commerce" is denned in the Federal Trade Commission Act.

PAR. 7. Respondents in the course and conduct of their business, as aforesaid, have made statements on invoices and shipping 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 "90/10 woo)" whereas, in truth and in fact, the products contained substantially different fibers and amounts of fibers than represented. PAR. 8. The acts and practices set out in Paragraph Seven 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 al1 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 and the Wool Prod nets 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 al1 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 586 FEDERAL TRADE COMIVIISSIO:' DECISIONS Decision and Order 76 F.

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, and now in further conformity with the procedure prescribed in S 2. 34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findhlgs, and enters the follo\\ring order: 1. Respondent Al'jay Batting Corp. is a corporation organized existing and doing business under and by virtue of the laws of the State of Kew York, with its office and principal place of business located at 3614 15th Avenue, Brooklyn, New York. Respondent Jacob Lowinger is an offcer of said corporation. He formulates, directs and controls the policies, acts and practices 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 respondents Arjay Batting Corp., a corporation, and its offcers, and Jacob Lowinger, individually and as an offcer of said corporation, and respondents' representatives agents and employees, directly or through any corporate or other device, in connection vliih the introduction, or manufacture for introduction, into commerce, or 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 wool products by: 1. Falsely or deceptively stamping, tagging, labeling, invoicing, advertising, or otherwise identifying such products as to the character or amount of the constitntent fibers contained therein.

2. Failng to clearly affx to, or place on each such product a stamp, tag, label, or other means of identification showing 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.

ARJAY BATTING CORP. , ET AL. 587 583 Decision and Order It is further O1'dered That respondents Arjay Batting Corp., a corporation, and its offcers, and ,I acob Lowinger, individually and as an offcer of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the advertising, offering for sale, sale or distribution of wool batting material or other 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 such products on invoices or shipping memoranda applicable thereto or in any other manner.

It is further ordel'd, That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions.

It is further Drdm' 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.