Goldfarb Novelty Division of Amtel, Inc

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In the Matrer or AMTEL, INC., rrapine as GOLDFARB NOVELTY DIVISION OF AMTEL, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-1762. Complaint, July 13, 1970—Decision, July 13, 1970 Consent order requiring a Providence, R.I., importer and wholesaler of souvenirs, novelties and gift wares, including scarves and T-shirts, to mease importing, selling or transporting flammable wear. Complaint Pursuant to the provisions of the Federal Trade Commission Act and the Flammable 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 Amtel, Inc., a corporation, trading as Goldfarb Novelty Division of Amtel, Inc., and Joshua A. Rothstein, Joseph Young and Solomon J. Halpern, individually and as officers of a division of the said corporation, and Eman O. Carles, individually and as chief buyer of the division, 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: ' Paracrary 1. Respondent Amtel, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Rhode Island with its office and principal place of business located at 424 Howard Building, Providence, Rhode Island. Respondents Joshua A. Rothstein, Joseph Young and Solomon J. Halpern are officers of a division of the said corporation. Respondent Eman O. Carles is chief buyer of the division. They formulate, ee ee a AN UR tba ey ALT ey SUL Lddte Saw 922 Decision and Order direct and control the acts, practices and policies of said corporation. Their address is 3835 Ninth Avenue, New York, New York. Respondents are importers and wholesalers of souvenirs, novelties and aut wares, including scarves and T-shirts. 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, 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 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 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 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 all 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 haying determined that it had reason to believe that the respondents 994. FEDERAL TRADE .COMMISSION DECISIONS Decision and Order 77 FLC.

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 § 2.84(b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional ‘findings, and enters the following order: 1. Respondent Amtel, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Rhode Island, with its office and principal place of business located at 424 Howard Building, Providence, Rhode Island. . Respondents Joshua A. Rothstein, Joseph Young, and Solomon J. Halpern are officers of a division of the said corporation. Proposed respondent Eman O. Carles is the chief buyer of the division. They formulate, direct and control the policies, acts and practices of said division. Their address is 3835 Ninth Avenue, New York, New York. Respondents are importers and wholesalers of souvenirs, novelties and gift wares, including scarves and T-shirts. 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 respondents Amtel, Inc., a corporation, trading as Goldfarb Novelty Division of Amtel, Inc., and Joshua A. Rothstein, Joseph Young and Solomon J. Halpern, individually and as officers of a division of the said corporation, and Eman O. Carles, individually and as chief buyer of the division, 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 fabric, product or related material as “commerce,” “fabric,” “product” 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 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 922 Complaint special report shall also advise the Commission fully and specifically concerning the identity of the fabric, product or related material which gave rise to the complaint, (1) the amount of such fabric, product or related material in inventory, (2) any action taken to notify customers of the flammability of such fabric, product or related material and the results thereof and (3) any disposition of such fabric, product or related material since June 3, 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 will submit samples of any such fabric, product or related material with this report.

It is further ordered, That the respondents herein either process the products which gave rise to this complaint so as to bring them within the applicable standards of the Flammable Fabrics Act, as amended or destroy said products.

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 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 further 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.