Auteuil Fabrics, Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF AUTEUIL FABRICS, INC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATIOK OF THE FEDERAL TRADE COMMISSION, THE TEXTILE FIBER PRODUCTS IDENTIFICATION, AI\D THE FLAMMABLE FABRICS ACTS Docket J(j2.9. Complaint, Nov. 196' Decision, Nov. 17, 1969 Consent order requiring two New York City importers of wearing apparel including ladies' sca1'es to cease marketing dangerously flammable articles of clothing and falsely guaranteeing their textile fiber products. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, the Flammable Fabrics 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 Auteuil Fabrics, Inc., a corporation, Royale Accessories Inc., a corporation, and David Schneider and Selma Schneider, individually and as offcers of said corporation, hereinafter referred to as respondent have violated the provisions of said Acts and the Rules and Regulations promulgated under the Flammable Fabrics Act and 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: PARAGI\APH 1. Respondents Auteuil Fabrics, Inc. , and Royale Accessories, Inc. , are corporations organized, existing and doing business under and by virtue of the laws of the State of New York. Respondents David Schneider and Selma Schneider are officers of said corporate respondents. They formulate, direct and control the acts, practices and policies of said corporation. Respondents are engaged in the business of the importation and sale of textile fiber products, including wearing apparel in Complaint 76 F.

the form of ladies' scarves, with their offce and principal place of business located at 10 West 37th Street, New 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. PAR 4. Respondents are now and for some time last past have been engaged in the introduction, delivery for introduction, sale advertising, and offering for sale, in commerce, and in the transportation or causing to be transported in commerce, and the importation into the Vnited States, of textile 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 ucommerce " and "textile fiber product" are defined in the Textile Fiber Products Identification Act. PAR. 5. Respondents furnish false guaranties with respect to certain of their textile products by falsely representing in writing that respondents had a continuing guaranty on file with the Federal Trade Commission, in violation of Section 10 (b) of the Textile Fiber Products Identification Act and Rule 38 (d) of the Rules and Regulations promulgated thereunder.

PAR. 6. The acts and practices of the respondents as set forth in Paragraph Five were and are in violation of the Textile Fiber AUTEUIL FABRICS, INC. , ET AL. 629 627 Complaint Products Identification Act and the Rules and Regulations promulgated thereunder, and constituted and now constitute unfair methods of competition and unfair and deceptive acts or 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 Texties 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 Flammable Fabrics Act, as amended 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 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 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. Corporate respondents are organized, existing and doing business under and by virtue of the Jaws of the State of New York with their offce and principal place of business located at 10 West 37th Street, :'ew York, New York. Respondents David Schneider and Selma Schneider are offcers of the corporate respondents and their address is the same as the corporate respondents.

Decision and Order 76 F.

2. The Federal Trade Commission has jurisdiction of the subj ect matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents Auteuil Fabrics, Inc., a corporation, and its offcers, and Royale Accessories, Inc. , a corporation, and its offcers, and David Schneider and Selma Schneider individually and as offcers of said corporations, and respondents representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from manufacturing for sale, selling, 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, fabric or related material as "commerce product, fabric" and "related material" 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 shah 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' intentions as to compliance with this order. This interim special report shah 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, (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 February 26 , 1969. Such report shall 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 wil submit samples of any such fabric, product or related material with this report. Samples of the fabric, product or related material shall be of no less than one square yard of material.

It is fu,' ther ordered That respondents AuteuiJ Fabrics, Inc., a corporaUon, and its offcers, and Royale Accessories, Inc., a corpo- , , AUTEUIL FABRIC, INC. , ET AL. 631 627 Decision and Order ration, and its offcers, and David Schneider and Selma Schneider individually and as offcers of said corporations, 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 product is not misbranded or falsely invoiced when the respondents have reason to believe that such textie product may be introduced, sold, transported or distributed in commerce.

It is further ordered That respondents notify the Commission at least 30 days prior to any proposed change in the corporate respondents such as dissolution, assignment or sale resulting in the emergence of successor corporations, the creation or dissolution of subsidiaries or any other change in the corporations which may affect compliance obligations arising out of the order. It is further ordered That the respondent corporations shall forthwith distribute a copy of this order to each of its operating divisions.

It is fUTtheT ordered That 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.