Abe Golomb, Inc

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IN THE MATTER OF ABE GOLOMB , 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-16l;8. Complaint, JJee. 1969-Decision, Dec. , 1969 Consent order requiring manufacturers of fur products of ew York City, to cease misbranding artificially colored fur as natural, falsely invoicing, and furnishing false guaranties that their furs were not misbranded, falsely invoiced or falsely advertised. 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 Abe Golomb, Inc. , a corporation, Abe Golomb Furs, Inc., a corporation, and Abraham Golomb, individually and as a former offcer of said corporations, 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 ABE GOLO:VIB, INC. , ET AL. 893 Complaint892that 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. Respondents Abe Golomb, Inc., and Abe Golomb Furs, Inc. , are corporations organized, existing and doing business under and by virtue of the Jaws of the State of New York. Respondent Abraham Golomb is a former offcer of the corporate respondents. He formulated, directed and controlled the acts practices and policies of the said corporate respondents including those hereinafter set forth.

Respondents are manufacturers of fur products with their offce and principal place of business located at 330 Seventh Avenue, New York, New York.

PAR. 2. Respondents are now and for some time last past have 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 fur" and "fur product" are defined in the Fur Products Labeling Act. PAR. 3. Certain of said fur products were misbranded in that they were falsely and deceptively labeled to show that fur contained therein was natural, when in fact such fur was pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Section 4 (1) of the Fur Products Labeling Act. PAR. 4. 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 to disclose that the fur contained in the fur products was bleached, dyed, or otherwise artificially colored, when such was the fact. 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. Complaint 76 F.

Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products covered by invoices which failed to disclose that the fur contained in the fur products 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 that said fur products were invoiced to show that the fur contained therein was natural, when in fact such fur was pointed, bleached, dyed, tip-dyed or otherwise artificially colored, in violation of Section 5 (b) (2) of the Fur Products Labeling Act.

PAR. 7. Respondents furnished false guaranties that certain of their fur products were not misbranded, falsely invoiced or falsely advertised when respondents in furnishing such guaranties had reason to believe that fur products so falsely guarantied would be introduced, sold, transported or distributed in commerce, in violation of Section 10 (b) of the Fur Products Labding Act.

PAR. 8. The aforesaid acts and practices of respondents, as herein alleged, are in violation of tlle 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 an 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 vio- ;

ABE GOLOMB, INC. , ET AL. 895 892 Deeision and Order lated as alleged in such complaint, and waivers and other provisions as required by '.he 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 stich agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in 2.34 (b) of its Rules the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondents Abe Golomb, Inc., and Abe Golomb Furs, Inc. are corporations organized, existing and doing business under and by virtue of the laws of the State of New York with their offces and principal place of business located at 330 Seventh Avenue, New York, Kew York.

Respondent Abraham Golomb is a former offcer of said corporations. He formulated, directed and controlled the policies, acts and practices of said corporations and his address is the same as that of said corporations.

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 i8 ordered That respondents Abe Golomb, Inc. , a corporation, and its offcers, Abe Golomb Furs, Inc. , a corporation, and its offcers, and Abraham Golomb, individually and as a former offcer of said corporations, and respondents ' representatives, agents and employees, directly or through any corporate or other device, in connection \vHh the introduction, or manufacture for introduction, into commerce, or the sale, advertising or offering for sale in commerce, OJ' 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 ful' '' and " fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

Decision and Order 76 F.

A. Misbranding any fur product by:

1. Falsely or deceptively labeling or otherwise falsely or deceptively identifying such fur product by representing directly or by implication that the fur contained in such fur product is natural when such fur is pointed bleached, dyed, tip-dyed, or otherwise artificially colored. 2. Failing to affx a label to such fur product showing in words and in figures plainly legible a11 of the information required to be disclosed by each of the subsections of Section 4 (2) of the Fur Products Labeling Act. B. Falsely or deceptively invoicing fur products by: 1. Failing to furnish an invoice, as the term "invoke is defined in the Fur Products Labeling Act, showing in words and figures plainly legible all the information required to be disclosed by each of the subsections of Section 5 (b) (1) of the Fur Products Labeling Act. 2. Representing, directly or by implication, on invoices that the fur contained in such fur product is natural when such fur is pointed, bleached, dyed, tipdyed, or otherwise artificially colored. It is fn/'her ordel'd That respondents Abe Golomb, Inc. , a , Inc. , a corpora-corporation, and its offcers, Abe Golomb Furs tion, and its offcers, and Abraham Golomb, individually and as a former offcer 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 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 fn,.ther o1'de?'ed That respondents notify the Commission at ieast 30 days prior to any proposed change in the corporate respondents such as dissolution, assignment or sale resulting in the emergence of a successor corporation. the creation or dissolution of subsidiaries or any other change in the corporations which may ailect compliance obligations arising out of the order. It is furthe?' Oi'dated That the respondent corporations shall forthwith distribute a copy of this order to each of its operating di visions.

It is fUTthe?' ordered That respondents herein shall, within sixty (60) days after service upon them of this order, file with ABE GOLOMB, INC. , ET AL. 897 892 Dccision and Order the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.