Perfect Fit Industries, Inc

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

In run Marrer oF PRE CORPORATION porne Business AS PERFECT FIT INDUSTRIES, INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C-1972. Complaint, July 12, 1971—Dccision, July 12, 1971 Consent erder requiring a New York City manufacturer and seller of home furnishings, including mattress pads, sheets and pillow cases to cease representing that such products are flame retardant unless all exposed parts of such articles have been treated with a retardant finish. ComrLaInt Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that PRF Corporation, 4? FEDERAL TRADE COMMISSION DECISIONS Complaint 79 E.T.C.

a corporation, doing business as Perfect Fit Industries, Inc., sometimes hereinafter referred to as respondent, has violated the provisions of ‘said 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: ‘ Paracrari 1. Respondent PRF Corporation is a corporation, organized, existing and doing business under and by virtue of the laws of the State of Delaware with its office and principal place of business at 303 Fifth Avenue, New York, New York. Its principal business‘is to manufacture a complete line of home furnishings including bedroom, bathroom, table accessories and tufted rugs and carpeting. Other operations include computer programming services, franchised security alarm systems, amd music-equipment leasing. These businesses constitute a minor portion of respondent’s total volume.

Par. 2. Respondent in the course and conduct of its business has been, and is now, engaged in the sale and offering for sale in commercé of merchandise it ships or causes to be shipped, when sold, from the State of North Carolina to purchasers located in various other states and maintains and has maintained a course of trade in said merchandise in commerce, as “commerce” is defined in the Federal Trade Commission Act. Respondent’s volume of business in the sale of the said merchandise is and has been substantial. Among such merchandise so sold and shipped are mattress pads. Par. 3. Respondent is now, and at all times mentioned herein, has been in substantial competition in commerce with other corporations, firms and individuals engaged in the sale and distribution of mattress pads.

Par. 4. In the course and conduct of its business in commerce, and for the purpose of inducing the purchase of said mattress pads, respondent has made representations in packaging, as well as in other advertising material, with respect to the flame retardant characteristics of its product.

Typical and illustrative of the statements and representations in said packaging, are the following:

This mattress pad could actually SAVE YOUR LIFE FLAME RETARDANT FITTED MATTRESS PAD AND COVER Resists flare , Resists flame Resists. smouldering.

Even lighted matches can burn themselves out 4l Complaint Par. 5. That said packaging included an insert containing: a. photograph of a man reclining in bed on a mattress pad while reading a book and smoking a cigarette. A smoked cigarette is shown in an ashtray at his side on the bed. The headline above said photograph states as follows:

This mattress pad could actually SAVE YOUR LIFE! Par. 6. That said advertising material did not clearly and conspicuously disclose that only the top and skirt portions of said mattress pads had been treated with the flame retardant finish and that the bottom and dacron polyester filling had not been treated so as to provide a flame retardant finish. .

Par. 7. That said product consists of a dacron polyester filling inserted between two identical layers of an all cotton quilted fabric with a skirt attached thereto by means of a binding sewn around the edges. , That said product, by virtue of its construction and appearance, in the course of normal use, may be reversed thus exposing that portion of the mattress pad which had not been treated with the flame retardant finish.

Par. 8. Through the use of the aforesaid representations and depictions, and others of similar import and meaning, but not specifically set out herein, and by virtue of the construction and appearance of said mattress pads, respondent represents “and has represented, directly or by implication, that the said mattress pads are completely flame retardant and thus provide a degree of safety and protection when in fact the only portions which’ have been treated with the flame retardant finish have been the top ‘and’ skirt portions thereof. : oe Par. 9. In truth and in fact, said representations mislead” prospective purchasers into the mistaken belief that the mattress pads are completely flame retardant, and further mislead prospective purchasers as to the degree of safety and protection afforded in preventing injury caused by or resulting from flame, flare or smouldering. Par. 10. The use by respondent of the foregoing false, misleading and deceptive representations and depictions set forth above has had, and now has, the tendency and capacity to mislead and deceive members of the public into the purchase of said product under the erroneous and mistaken belief that such statements and representations are true. oe Par. 11. The aforesaid acts and practices of respondent as herein alleged are all to the prejudice and injury of the public and of respondent’s competitors and constitute unfair methods of competition Decision and Order 79 F.T.C.

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 respondent named in the caption hereof, and the respondent 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 respondent with violation of the Federal Trade Commission Act; and Respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondent of all 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 respondent 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 accepted same, and the agreement containing consent order having thereupon been placed on the public record for a period of thirty (80) 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 PREF Corporation, a corporation, doing business as Perfect Fit Industries, Inc., is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of Delaware with its office and principal place of business at 303 Fifth Avenue, New. York, New York.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

. ORDER It is ordered, That the respondent PRF Corporation, a corporation doing business as Perfect Fit Industries, Inc., directly or through any corporate or other device in connection with the offer- 41 ‘ Decision and Order ing for sale, sale, and distribution of mattress covers, mattress pads, sheets and pillow cases, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing directly or indirectly that said products are flame retardant, or have been treated with a flame retardant finish, and from utilizing any words or depictions of similar import or meaning in connection therewith, unless all uncovered or exposed parts (except sewing threads) will retard and resist flame, flare and smouldering, or have been treated with a finish which will retard and resist flame, flare and smouldering.

It is further ordered, That in all instances where respondent represents said products to be flame retardant or treated with a flame retardant finish, that warnings be provided in or on the packaging in immediate conjunction with said representations and in type or lettering of equal size and conspicuousness, and on a label affixed to the products securely and with sufficient permanency to remain in a conspicuous, clear and plainly legible condition, of any danger from flammability which may result if these products be dry cleaned or washed by other than the recommended means or in excess of a stated number of times.

It is further ordered, That respondent make every reasonable effort to immediately notify in writing all of its customers who have purchased or to whom have been delivered the mattress pads which gaye rise to this complaint to alert them to the fact that only the top and skirt portions have been treated with the flame retardant finish.

It is further ordered, That respondent notify the Commission at least 30 days prior to any proposed changes 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 changes in the corporation which may affect compliance obligations arising out of the order. It is further ordered, That respondent deliver a copy of this order to cease and desist to all personnel of respondent responsible for the preparation, creation, production or publication of advertising, packaging or labeling of all products covered by this order. It is further ordered, That respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form of its compliance with this order.

Complaint 79 F.T.C.