India Nepal, Inc

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In THE Matrer OF INDIA. NEPAL, INC., ET AU.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-1962. Complaint, June 30, 1971—Decision, June 30, 1971 Consent order requiring ‘a New York City importer and distributor of Indianmade goods, including ladies’ scarves, to. cease violating the Flammable Fabrics Act by importing or selling any fabric which fails to conform to the standards of said Act.' 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 India Nepal, Inc., a corporation, and Murli P. Hathiramani, also known as P. H. Murli, 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 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: ee Paracrarn 1. Respondent India Nepal, Inc., is a corporation orgaaus 1540 Decision and Order nized, existing and doing business under and by virtue of the laws of the State of New York. Its address is 8 East 28th Street, New York, New York.

Respondent Murli P. Hathiramani, also known as P. H. Murli is an officer of the corporate respondent. He formulates, directs and controls the acts, practices and policies of the said corporate respondent including those hereinafter set forth. Respondents are engaged in the importation and sale of Indian. made goods, including, but not limited to, ladies’ scarves. Par. 2. Respondents are now and for some time last past have been engaged in the sale and offering for sale, in commerce, and 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 ladies’ 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.

_ Decistow 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 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 Flammable Fabrics Acts, 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 jur isdictional 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 ad- 1542 FEDERAL ‘TRADE COMMISSION DECISIONS Decision and Order G8 FTC.

mission 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 has 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 agreement and placed such agreement on the public record. for a period of thirty (80) days, now in further confornity 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 India Nepal, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. , Individual respondent Murli P. Hathiramani also known as P. H. Murli, is an officer of corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporate respondent.

Respondents are engaged in the importing, wholesaling and retailing of various Indian made products including, but not limited to, scarves, with their office and principal place of business located at 3 East 28th Street, New York, New York.

9. The Federal Trade Commission has jurisdiction of the subject. matter of the proceeding and of the respondents and the proceeding is in the public interest.

ORDER Té is ordered, That the respondents India Nepal, Inc., a corporation, and its officers and Murli P. Hathiramani, also known as P. H. Murli, individually and as an officer of said corporation, and respondents’ representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from 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 product, fabric, or related matevial; or selling or offering for sale, any product made of fabric or related material which has been shipped or received in. commerce as “ecommerce,” “product,” “fabric” and “related material” are defined in the Flammable Fabrics Act, as amended, which product, fabric or velated material fails to conform to an applicable standard or reguwee ey ce ey ee ---- ave 1540 Decision. and: Order lation issued, amended or continued in effect under the provisions of the aforesaid Act.

Lt is further ordered, That respondents notify all of their customers who have purchased or to whom have been delivered the products which gave rise to the complaint. of the flammable nature of said products and effect the recall of said products from such customers.

It is further ordered, That the respondents herein either process the products which gave rise to the complaint so as to bring them into conformance with the applicable standard of flammability under the Flammable Fabrics Act, as amended, or destroy said products.

It is further ordered, That the respondents herein shall, within ten (10) days after service upon them of this order, file with the ‘Commission a special report in writing setting forth the respondents’ intentions as to compliance with this order. This special report shall also advise the Commission fully and specifically concerning (1) the identity of the products which gave rise to the complaint, _ (2) the number of said products in inventory, (3) any action taken ‘and any further actions proposed to be taken to notify customers of the flammability of said products and effect the recall of said products from customers, and of the results thereof, (4) any disposition of said products since April 1970, and (5) any action taken or proposed to be taken to bring said products into conformance with the applicable standard of flammability under the Flammable Fabrics Act, as amended, or destroy said products, and the results of such action. Such report shall further inform the Commission as to whether or not respondents have in inventory any product, fabric or related material having a plain surface and made of paper, silk, rayon and acetate, nylon and acetate, rayon, cotton or any other material or combinations thereof in a weight of two ounces or less per square yard, or any product, fabric or related material having a raised fiber surface. Respondents shall submit samples of not less than one square yard in size of any such product, fabric, or related material with this report.

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 forth- 470-536—73——98 Complaint 78 F.T.C.

with distribute a copy of this order to each of its operating divisions.

It is further ordered, That the 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.