J. H. Goldberg Furniture Co., Inc

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

In THE Marver oF J.5 1 5 1 2 2 885 2218 47 68 74.732788 H.5 1 5 1 2 3 952 2214 263 64 96.284698 GOLDBERG5 1 5 1 2 4 1233 2231 287 44 93.272743 FURNITURE5 1 5 1 2 5 1539 2229 83 39 84.553108 CO.,5 1 5 1 2 6 1642 2228 105 40 51.551632 INC,5 1 5 1 2 7 1777 2224 42 35 91.019676 BT5 1 5 1 2 8 1840 2206 77 84 91.019676 AL.2 1 6 0 0 0 718 2316 1320 169 -1 3 1 6 1 0 0 718 2316 1320 169 -1 4 1 6 1 1 0 718 2316 1320 50 -1 5 1 6 1 1 1 718 2335 157 27 96.042358 CONSENTS 1 6 1 1 2 898 2327 115 39 96.684662 ORDER,5 1 6 1 1 3 1035 2325 83 38 58.205318 ETC.,5 1 6 1 1 4 1141 2328 43 34 96.573151 IN5 1 6 1 1 5 1207 2326 128 23 96.192612 REGARDS 1 6 1 1 6 1358 2325 42 22 95.609680 TO5 1 6 1 1 7 1423 2324 72 22 95.789635 THES 1 6 1 1 8 1519 2316 146 28 96.383568 ALLEGED5 1 6 1 1 9 1690 2320 185 22 96.354095 VIOLATIONS 1 6 1 1 10 1901 2319 42 21 96.795975 OF5 1 6 1 1 11 1966 2319 72 21 96.580612 THEA 1 6 1 2 0 812 2363 1132 44 -1 5 1 6 1 2 1 812 2384 119 23 94.163597 TRUTH5 1 6 1 2 2 946 2383 42 22 95.840263 IN5 1 6 1 2 3 1004 2367 154 37 95.627815 LENDING5 1 6 1 2 4 1172 2379 72 20 95.627815 ANDS 1 6 1 2 5 1258 2377 72 21 96.266960 THES 1 6 1 2 6 1344 2374 149 31 96.274658 FEDERAL5 1 6 1 2 7 1507 2363 105 32 96.395859 TRADES 1 6 1 2 8 1627 2365 219 29 95.886337 COMMISSIONS 1 6 1 2 9 1863 2370 81 21 96.383904 ACTS4 1 6 1 3 0 790 2436 1127 49 -1 5 1 6 1 3 1 790 2458 159 27 1.751945 Dockets 1 6 1 3 2 966 2457 116 26 47.605621 C-1885.5 1 6 1 3 3 1099 2446 260 38 35.538528 Complaint,5 1 6 1 3 4 1299 2432 67 57 95.267609 Mar.5 1 6 1 3 5 1377 2451 41 30 85.641403 2%,5 1 6 1 3 6 1438 2442 245 35 83.059494 1971—Decision,5 1 6 1 3 7 1700 2436 74 37 95.847137 Mar.5 1 6 1 3 8 1792 2446 42 30 95.062096 23,5 1 6 1 3 9 1850 2445 67 25 95.978363 19712 1 7 0 0 0 720 2497 1322 92 -1 3 1 7 1 0 0 720 2497 1322 92 -1 4 1 7 1 1 0 720 2497 1321 51 -1 5 1 7 1 1 1 720 2508 139 44 37.652199 Gonsent’5 1 7 1 1 2 873 2518 86 25 92.200348 orders 1 7 1 1 3 985 2515 149 30 95.082024 requiring5 1 7 1 1 4 1161 2522 17 18 96.273132 a5 1 7 1 1 5 1197 2499 174 42 80.573204 ‘Rochester,5 1 7 1 1 6 1399 2505 77 34 60.293060 N¥.,5 1 7 1 1 7 1504 2503 85 31 96.366844 retails 1 7 1 1 8 1618 2500 149 33 96.366844 furniture5 1 7 1 1 9 1782 2497 94 33 76.067497 “stores 1 7 1 1 10 1900 2507 30 23 95.149216 to5 1 7 1 1 11 1958 2511 83 18 95.267845 cease4 1 7 1 2 0 790 2547 1252 42 -1 5 1 7 1 2 1 790 2560 145 29 96.053642 violating5 1 7 1 2 2 959 2559 50 24 96.335892 thes 1 7 1 2 3 1033 2557 94 24 95.757034 Truth5 1 7 1 2 4 1153 2557 30 23 95.720642 in5 1 7 1 2 5 1210 2554 130 28 93.257408 Lending5 1 7 1 2 6 1364 2552 63 29 95.977005 Act,5 1 7 1 2 7 1454 2553 36 28 96.592133 by5 1 7 1 2 8 1517 2551 107 28 96.288231 failing5 1 7 1 2 9 1649 2551 30 23 96.288231 to5 1 7 1 2 10 1706 2548 124 25 96.651978 discloses 1 7 1 2 11 1857 2548 48 25 96.274445 thes 1 7 1 2 12 1932 2547 110 25 96.441589 annual ve Ake uaa 2 UNE UT UU., LNG, Bil AL, feters) 532 . Complaint percentage rate. of the finance charge, the due dates of scheduled repayments prior to consummation of the transaction, the unpaid balance of the cash price, the amount financed, the deferred payment price, and all consumer credit disclosures required by Regulation Z of said Act. Complaint Pursuant to the provisions of the Truth in Lending Act and the implementing regulation promulgated thereunder, and the Federal Trade Commission Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that J. H. Goldberg Furniture Co., Inc.,.a corporation and Nathan Goldberg, individually and as an officer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and regulation, 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: ; Oo, ; ;

Paracrarn 1. Respondent J. H. Goldberg Furniture Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal office and place of business located at 96 North Street, Rochester, New York. . De The J. H. Goldberg Furniture Co., Inc., owns and operates a retail furniture store known as The Furniture Market located at the same address.

Respondent Nathan Goldberg .is the .secretary-treasurer of the corporate respondent. He formulates, directs and controls the policies, acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His address is the same as that of the corporate respondent. :

‘Par. 2. Respondents are now, and for some time last past have been, engaged in the sale of furniture and electrical appliances to the public.

Par.. 3. In the ordinary course and conduct of their business, as aforesaid, respondents regularly extend and arrange for the extension of consumer credit, as “consumer credit” is defined in Regulation Z, the implementing regulation of the Truth in Lending Act, duly promulgated by the Board of Governors of the Federal Reserve System. — oo _ BC a Par. 4. Subsequent to July 1, 1969, respondents, in the ordinary course of their business, as aforesaid, and in-connection with. their credit sales, as “credit sale” is defined in Regulation Z, have caused Decision and Order 7 F.T.C.

and are causing customers to execute retail installment contracts, hereinafter referred to as “the contract.” By and through the use of the contract, respondents: 1. Failed in some instances to disclose the “annual percentage rate” accurately to the nearest quarter of one percent, in accordance with Section 226.5(b) (1) of Regulation Z. 2. Failed in some instances to disclose the “annual percentage rate” as required by Section 226.8(b) (2) of Regulation Z. 3. Failed in some instances to disclose the due date of the first payment, or otherwise failing to disclose the number, amount and due dates or periods of payments scheduled to repay the indebtedness, prior to the consummation of the transaction and the “total of payments” as required by Section 226.8(b) (3) of Regulation Z. 4. Failed in some instances to disclose the “unpaid balance of cash price” as required by Section 226.8(c) (3) of Regulation Z. 5. Failed in some instances to disclose the “amount financed” as required by Section 226.8(c) (7) of Regulation Z. 6. Failed to disclose the correct “deferred payment price” as required by Section 226.8(c) (8) (ii) of Regulation Z. Par. 5. Pursuant to Section 103(k) of the Truth in Lending Act, respondents’ aforesaid failures to comply with the provisions of Regulation Z constitute violations of that Act and, pursuant to Section 108 thereof, respondents have thereby violated the Federal Trade Commission Act.

Decision anp Orper The Commission having heretofore determined to issue its complaint charging respondents named in the caption hereof with violation of the Federal Trade Commission Act, the Truth in Lending Act and the implementing Regulation promulgated thereunder, and respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order; and Respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondents of all the jurisdictional facts set forth in the complaint to issue herein, 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 considered the agreement and having ac- J. H. GOLDBERG FURNITURE CO., INC., ET AL. Odd 532 Decision and Order cepted same, and the agreement containing consent order having thereupon been placed on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in Section 2.34(b) of its Rules, the Commission hereby issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order: 1. Respondent J. H. Goldberg Furniture Co., Inc., is a corpora- . tion organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal office and place of business located at 96 North Street, Rochester, New York. Respondent Nathan Goldberg is the secretary-treasurer 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.

ORDER It is ordered, That respondents J. H. Goldberg Furniture Co., Inc., a corporation, and Nathan Goldberg individually and as an officer of said corporation, and respondents’ agents, representatives, and employees, directly or through any corporate or other device, in connection with any extension or arrangement for the extension of consumer credit, or any advertisement to aid, promote or assist directly or indirectly any extension of consumer credit as “consumer credit” and “advertisement” are defined in Regulation Z (12 CFR Part 226) of the Truth in Lending Act (Public Law 90-821, 15 U.S.C:,1601 e¢ seg.), do forthwith cease and desist from: 1. Failing to disclose the annual percentage rate accurately to the nearest quarter of one percent, in accordance with Section 226.5(b) (1) of Regulation Z.

2. Failing to disclose the annual percentage rate as required by Section 226.8(b) (2) of Regulation Z. 3. Failing to disclose the due date of the first payment, or otherwise failing to disclose the number, amount and due dates or periods of payments scheduled to repay the indebtedness, prior to the consummation of the transaction and the “total of payments” as required by Section 226.8(b) (3) of Regulation Z. 4, Failing to disclose the “unpaid balance of cash price” as required by Section 226.8(c) (3) of Regulation Z. , 5. Failing to disclose the “amount financed” as required by Section 226.8(c) (7) of Regulation Z.

470-536—73——35 Order 78 F.T.C.

6. Failing to disclose the correct “deferred payment price”. as required by Section 226.8(c) (8) (ii) of Regulation Z. 7. Failing, in any consumer credit transaction or advertisement, to make all disclosures required by Sections 226.4, 226.5, 996.6, 226.7, 226.8, and 226.10 of Regulation Z, in the manner, form and amount prescribed therein.

It is further ordered, That respondent deliver a copy of this order to cease and desist to all present and future personnel of respondents engaged in the consummation of any extension of consumer credit or in any aspect of preparation, creation, or placing of advertising, and that respondent secure a signed statement acknowledging receipt of said order from each such person. It is further ordered, That respondents notify the Commission at least thirty (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 each respondent 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 the order to cease and desist contained herein.