Sidney Gilbert & Co., Inc

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In the Marrer or SIDNEY GILBERT & CO., INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS Docket C-1929. Complaint, June 2, 1971—Decision, June 2, 1971 Consent order requiring Charlotte, N.C., dealers in wholesale yarn and fabrics to cease misbranding their textile fiber products. CompLaIntT Pursuant to the provisions of the Federal Trade Commission Act and the Textile Fiber Products Identification Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Sidney Gilbert & Co., Inc. a corporation, and Sidney FI. Goldberg and David D. Berson, individually and as officers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Textile Fiber Products Identification 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:

Paracrapy 1. Respondent Sidney Gilbert & Co., 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 busmess located at 4804 Rozzells Ferry Road, Charlotte, North Carolina.

Individual respondents Sidney H. Goldberg and David D. Berson are officers of said corporation. They formulate, direct and control the policies, acts and practices of said corporation and their address is the same as that of the corporate respondent. Respondents are wholesale yarn and fabric dealers. Par. 2. Respondents are now and for some time last past have been engaged in the introduction, delivery for introduction, sale, advertising, and offering for sale, in commerce, and in the transportation or causing to be transported in commerce, and in the importation into the United States, of textile fiber products; and have sold, offered for sale, advertised, delivered, transported, and caused to be transported, textile fiber products, which have been advertised or SIDNEY GILBERT & CO., INC., ET AL. 1123 1122 Decision and Order offered for sale, in commerce; and have sold, offered for sale, advertised, delivered, transported, and caused to be transported, after shipment in commerce, textile fiber products, either in their original state or contained in other textile fiber products, as the terms “commerce” and “textile fiber product” are defined in the Textile Fiber Products Identification Act.

Par. 3. Certain of said textile fiber products were misbranded by the respondents within the intent and meaning of Section 4(a) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, invoiced, advertised, or otherwise identified as to the name or amount of the constituent fibers contained therein.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products (cones of yarn) invoiced as 100 percent Acrylic Fiber, whereas, in truth and in fact, the said textile fiber products contained substantially different fibers and amounts of fibers than represented.

Par. 4. Certain of such textile fiber products were further misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified to show. each element of information required to be disclosed by Section 4(b) of the Textile Fiber Products Identification Act, and in the manner and form prescribed by the Rules and Regulations promulgated under said Act. Among such misbranded textile fiber products, but not limited thereto, were textile fiber products without labels and with labels which failed:

1. To disclose the true generic names of the fibers present; and 2. To disclose the true percentage of such fibers. Par. 5. The acts and practices of respondents, as set forth above, were and are, in violation of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, and constituted, and now constitute unfair methods. of competition and unfair and deceptive acts or 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 Division of Decision and Order [8 F.T.C.

Textiles and Furs, Bureau of Consumer Protection 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 Textile Fiber Products Identification Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admis-: sion 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 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 therewpon 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 Iuviedier . tional findings, and enters the following order; 1. Respondent Sidney Gilbert & Co., Inc., is a cor poration 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 4804 Rozzells Ferry Road, Charlotte, North Carolina.

Individual respondents Sidney HI. Goldberg and David D. Berson are officers of said corporation. They formulate, direct and control the policies, acts and practices of said corporation and their address is the same as that of the corporate respondent. Respondents are wholesale yarn and fabric dealers. 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 Sidney Gilbert & Co., Inc., a corporation, and its officers, and Sidney H. Goldberg and David D. Berson, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction, deliv ery for introduction, sale, advertising, or offering for sale in commer ce, or the transportation or causing to be transported in commerce, or DAN BRECHNER & CO., INC., ET AL. 1125 1122 ; Complaint the importation into the United States, of any textile fiber product ; or in connection with the sale, offering for sale, advertising, delivery, transportation or causing to be transported, of any textile fiber product, which has been advertised or offered for sale in commerce; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, after shipment in commerce, of any textile fiber product, whether in its original state or contained in other textile fiber products, as the terms “commerce” and “textile fiber product” are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from misbranding textile fiber products by:

1, Falsely or deceptively stamping, tagging, labeling, invoicing, advertising or otherwise identifying such products as to the name or amount of the constituent fibers contained therein. 2. Failing to affix a stamp, tag, label or other means of identification to each such product showing in a clear, legible and conspicuous manner each element of information required to be disclosed by Section 4(b) of the Textile Fiber Products Identification Act.

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.

Tt is further ordered, That. the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions. [t 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.