Jason Headwear, Inc

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IN THE MATTER OF JASON HEADWEAR, INC., ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-1G58. Complaint, Dec. 1969-Decision, Dec. 19, 1969 Consent order requiring New York City wholesalers of men s and boys head"\vear to cease misbranding the fiber content of their wool products and furnishing false guaranties that such wool products were not misbranded.

COMPLAINT 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 Com- Inc. , a mission, having reason to believe that Jason Headwear, corporation, and Bernard Zimmerman, individually and as an officer 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 Jason Headwear, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 7 West 18th Street, New York, New York.

Respondents are engaged primarily in the wholesaling of men and boys' headwear. They are also engaged in the purchase of fabric and the manufacture of boys ' caps through contractors who "cut, sew and trim." The respondents supply the labels to their contractors for these caps. The contractors ship the caps to Jason Headwear for shipment to the respondents ' customers. These caps are made from woolen fabrics. Individual respondent Bernard Zimmerman is an offcer of the aforesaid 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.

JASON HEADWEAR, INC. , ET AL. 941 940 Complaint PAR. 2. Respondents, now and for some time last past, have introduced into commerce, manufactured for introduction into commerce, sold, transported, distributed, delivered for shipment shipped, and offered for sale, in commerce as "commerce" is defined in the Wool Products Labeling Act of 1939, wool products as "wool product" is defined therein.

PAR. 3. Certain of said wool products were misbranded by the respondents within the intent and meaning of Section 4 (a) (1) of the Wool Products Labeling Act of 1939 and the Rules and Regulations 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 boys' hats, stamped, tagged, labeled, or otherwise identified as containing 100 percent reprocessed wool, whereas in truth and in fact, such hats contained substantially different fibers and amounts of fibers than 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 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 five 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 five per centum or more; and (5) the aggregate of all other fibers. PAR. 5. The respondents furnished false guaranties that certain of their said wool products were not misbranded when respondents in furnishing such guaranties had reason to believe that the wool products so falsely guarantied might be introduced, sold transported or distributed in commerce, in violation of Section 9 (b) of the Wool Products Labeling Act of 1939. PAR. 6. The acts and practices of the respondents as set forth above 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 methods of com- Complaint 76 F. T.

petition and unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

DECISIO!\ 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 Products Labeling Act of 1939; 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 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 !\ 2.34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent .Jason Headwear, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 7 West 18th Street, New York, New York. Respondent Bernard Zimmerman 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.

JASON HEADWEAR, INC. , ET AL. 943 940 Decision and Order ORDER It is o1'de1' That respondents Jason Headwear, Inc., a corporation, and its offcers, and Bernard Zimmerman, 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 introduction or the manufacture for introduction into commerce, or the offering for sale, sale transportation, distribution, delivery for shipment or shipment in commerce, of wool products, as "commerce" and "\vool product" are defined in the Wool Products Labeling Act of J 939 , do forthwith cease and desist from misbranding wool products by: J. Falsely and deceptively stamping, tagging, labeling, or otherwise identifying such products as to the character or amount of the constituent fibers contained therein. 2. Failing to securely affx to or place on, each 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 J939.

It is further ordered That respondents Jason Headwear, Inc. , a corporation, and its offcers, and Bernard Zimmerman, individually and as an offcer 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 guarantee that certain of their wool products are not misbranded when respondents in furnishing such guaranty have reason to believe that the wool products so falsely guarantied 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 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 emergence of a successor corporation, the creation or dissolution of subidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. It is further ordel' That respondents herein shall, within sixty (60) days after service upon them of this order, fie with Decision and Order 76 F.

the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.