Chatsworth Carpet and Rug Company, Inc

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In the Matrer or CHATSWORTH CARPET AND RUG COMPANY, INC., CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS Docket C-1958. Complaint, June 29, 1971—Decision, June 29, 1971 Consent order requiring a Chatsworth, Ga., manufacturer of carpets to cease ' violating the Textile Fiber Products Identification Act by misbranding its carpets.

Complaint 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 Chatsworth Carpet and Rug Company, Inc., a corporation, and Ruben F. Calfee, 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 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 Chatsworth Carpet and Rug Company, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia. The respondent corporation maintains its office and principal place of business on Route 3, Chatsworth, Georgia. The respondent’s mailing address is Post Office Box 638, Chatsworth, Georgia. Respondent Ruben F. Calfee is an officer of said corporation. He formulates, directs and controls the policies, acts: and practices of the corporate respondent including those hereinafter referred to. His address is the same as that of the corporate respondent. Respondents are engaged in the manufacture of textile fiber products, namely carpeting.

Par. 2. Respondents are now and for some time last past have _ been engaged in the introduction, delivery for introduction, manufacture for introduction, sale, advertising and offering for sale, in commerce, and in the transportation or causing to be transported in CHATSWORTH CARPET AND RUG CO., ET AL. L52ZY 1328 Decision and Order 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 after shipment in commerce, textile fiber products, either in their original state or contained in other textile fiber products, as: the terms “Commerce” and Identification Act.

Par 3. Certain of said textile fiber products were misbranded by respondents in that they were not stamped, tagged, labeled, or otherwise identified as required under the provisions of Section 4(b) of the Textile Fiber Products Identification Act, and in the manner and form as prescribed by the Rules and Regulations promulgated under said Act.

Among such misbranded textile fiber products, but not limited. thereto, were carpets which were not labeled to show: (1) The true generic name of the fibers present; and (2) The true percentage of the fibers present by weight. Par. 4. 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 and practices, in commerce, under the Federal Trade Commission Act.

DEcISsION 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 Textiles and Furs proposed to present to the Commission for its consideration and which, if issued by the Cominission, 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 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 1330 - FEDERAL TRADE COMMISSION DECISIONS Decision, and Order %8 F.T.C.

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 § 2.84(b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Chatsworth Carpet and Rug Company, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia. Its office and principal place of business is located on Route 3, Chatsworth, Georgia. Respondent’s mailing address is Post Office Box 638, Chatsworth, Georgia.

Respondent Ruben F. Calfee is an officer of said corporation. He formulates, directs and controls the policies, acts and practices of the corporate respondent including those hereinafter referred to. The address of Ruben F. Calfec is the same as that of the corporate respondent.

Respondents are engaged in the manufacture of textile fiber products, namely carpeting.

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 Tt is ordered, That respondents Chatsworth Carpet and Rug Company, Inc., a corporation, and its officers, and Ruben F. Calfee, individually and as an officer of said corporation, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction, delivery for introduction, manufacture for introduction, sale, advertising or offering for sale, i in commerce, or the transportation or causing to be transported in commerce, or 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 prod- ORANGE COAT CO., ET AL. 1531 1328 Complaint ucts, as the terms “commerce” and “textile fiber product” are defined in the Textile Fiber Products Identification Act, do forthwith cease. and desist from misbranding such products by: 1. Failing to affix a stamp, tag, label, or other means of identification to each such textile fiber 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 80 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.