Design Fabrics, Inc

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IN THE MATTER OF DESIGN FABRICS, INC. , TRADIJ'G AS DESIGC\ HOUSE, ET AL. COI\SENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATIOJ' OF THE FEDERAL TRADE COMMISSION AND THE FLAYIMABLE F AERICS ACTS Docket C-1630. C01nplaint Vov. 17, 1969-Decision, No1,' 17, 1969 Consent order requiring a Los Angeles, Calif., manufacturer of women s and misses' wearing apparel to cease marketing dangerously flammable products.

COMPLAIN1' Pursuant to the provisions of the Federal Trade Commission Act and the Flammahle Fabrics Act, as amended, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Design Fabrics, Inc., a corporation, trading as Design House and George I-Ierooka and Complaint 76 F.

Stephen Shinto, 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 Flammable Fabrics Act, as amended, 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 Design Fabrics, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of California.

Respondents George Herooka and Stephen Shinto are offcers 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 engaged in the manufacture, importation and sale of women s and misses' wearing apparel, including, but not limited to, ladies' scarves. The business address of the respondents is 3IOO South Broadway, Los Angeles, California. PAR. 2. Respondents are now and for some time last past have been engaged in the manufacturing for sale, 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 as amended, 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. DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in thc caption hereof, and the respondents having been furnished there- DESIGN HOUSE, ET AL. 633 631 Decision and Order after 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, is issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act and the Flammable Fabrics Act, as amended; 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 aneged 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. Respondent Design Fabrics, Inc., is a corporation organized existing and doing business under and by virtue of the laws of the State of California with its offce and principal place of business located at 3100 South Broadway, Los Angeles, California. Respondents George Herooka and Stephen Shinto are offcers of said corporate respondent. They formulate, direct and control the acts, practices and policies of said corporate respondent. Respondents are engaged in the manufacture, importation and sale of women s and misses' wearing apparel, including, but not limited to, ladies' scarves.

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 the respondents Design Fabrics, Inc., a corporation, trading as Design House or under any other name or names, and its offcers, and George Herooka and Stephen Shinto individually and as offcers of said corporation, and respondents Decision and Order 76 F.

representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from manufacturing for sale, sellng, 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 orde?' That respondents herein shall, 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' intention as to compliance with this order. This interim special report shall 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 flammability of such product and the results thereof and (3) any disposition of such product since March 1969. Such report shall further inform the Commission whether respondents have in inventory any other 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 made of cotton or rayon or combinations thereof with a raised fiber surface. Respondents win submit samples of any such fabric, product or related material with this report.

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

It is fu?'that 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, GRECO FURS 635 635 Complaint