J & L Kessler, Inc

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

In ras Matrer oF J & L KESSLER, INC.

CONSENT ORDER ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket C-1698. Complaint, Feb. 24, 1970—Decision, Feb. 24, 1970 Consent order requiring a New York City manufacturing furrier to cease misbranding, falsely invoicing, and deceptively guaranteeing its fur products. ComPpLaIntT 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 J & L Kessler, Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said Acts: and the Rules and Regulations promulgated under the Fur Products Labeling 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: Paracrary 1. Respondent J & L Kessler, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondent is a manufacturer of fur products with his office and principal place of business located at 242 West 30th Street, New York, New York.

Par. 2. Respondent is now and for some time last past has been engaged in the introduction into commerce, and in the manufacture Complaint V7 F.T.C.

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 has 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 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 without labels required by the said Act. Par. 4. Certain of said fur products were misbranded in violation of Rules 8, 19(g), 29(b) and 40 of the Rules and Regulations promulgated under the Fur Products Labeling Act. . Par. 5. Certain of said fur products were falsely and deceptively invoiced by the respondent 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. Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products covered by invoices which failed: 1. To show the true animal name of the animal or animals which produced the fur used in such fur products. 2. 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 with respect to the name or designation of the animal or animals that produced the fur from which the said fur products had been manufactured, in violation of Section 5(b) (2) of the Fur Products Labeling Act.

Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products which were invoiced as “chinchilate” when, in fact, the fur contained in such products was “rabbit.” Par. 7. Certain of said fur products were falsely and deceptively invoiced in violation of Rules 4, 8, 19(g) and 40 of the Rules and Regulations promulgated under the Fur Products Labeling Act. Pan. 8. Respondent furnished false guaranties under Section 10(b) of the Fur Products Labeling Act with respect to certain of its fur products by falsely representing in writing that respondent had a On Scere re 187 Decision and Order continuing guaranty on file with the Federal Trade Commission when respondent in furnishing such guaranties had reason to believe that the fur products so falsely guarantied would be introduced, sold, transported and distributed in commerce, in violation of Rule 48(c) of said Rules and Regulations under the Fur Products Labeling Act and Section 10(b) of said Act.

Par. 9. The aforesaid acts and practices of respondent, as herein alleged, are in violation of the 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 respondent named in the caption hereof, and the respondent 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 respondent with violation of the Federal Trade Commission Act and the Fur Products Labeling Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of al] 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 respondent that the Jaw 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 has reason to believe that the respondent has 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 records for a period of thirty (80) 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 J & L Kessler, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the “190 FEDERAL TRADE COMMISSION DECISIONS Order, 17 F.T.C.

‘State of New York with its office and principal place of business lo- -cated at 242 West 30th Street, New York, New York. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered, That respondent J & L Kessler, Inc., a corporation, -and its officers, and respondent’s representatives, agents and employ- ‘ees, directly or through any corporate or other device, in connection with the introduction, or manufacture for introduction, into commerce, or the sale, advertising or offering for sale in commerce, or ‘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,” “fur” and “fur product” are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

1. Misbranding any fur product by failing to affix a label to such fur product showing in words and in figures plainly legible all of the information required to be disclosed by each of the subsections of Section 4(2) of the Fur Products Labeling Act and in accordance with the requirements of Rules 8, 19(g), 29(b) and 40 of the Rules and Regulations promulgated under the said Act.

2. Falsely or deceptively invoicing any fur product by failing to furnish an invoice, as the term “invoice” 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 and in accordance with the requirements of Rules 4, 8, 19(g) and 40 of the Rules and Regulations promulgated under the said Act.

It is further ordered, That respondent J & L Kessler, Inc., a corporation, and its officers, and respondent’s 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 respondent has reason to believe that such fur product may be introduced, sold, transported, or distributed in commerce. It is further ordered, That respondent notify the Commission at SUBURBAN’ PROPANE GAS CORP. 191 187 , Complaint 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 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 divi- ‘sions, lt ts further ordered, That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the _ ‘Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.