Solex, Inc

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

In Toe Marrer or SOLEX, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-1978. Complaint, July 20, 1971—Decision, July 20, 1971 Consent order requiring a Detroit, Mich., importer and distributor of textile fiber products, including sweat shirts, to cease violating the Flammable Fabrics Act by importing and selling any fabrie 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, Complaint 79 B.T.C.

having reason to believe that Solex, Inc., a corporation, and United Importers, Inc., a corporation, and Henry Solomon, Cecelia Solomon, Haim M. Solomon and David Mendelson, individually and as. officers of said corporations, hereinafter referred to as respondents, have violated the provisions of said Acts, and the Rules and Regulations promulgated under the Flammable Fabrics 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:

Paracrape 1. Respondent Solex Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Michigan. Respondents Cecelia Solomon, Haim M. Solomon, and Henry Solomon are officers of said Solex, Inc., and they formulate, direct and control the acts, practices and policies of said corporation.

Respondent United Importers, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Michigan. Respondents Henry Solomon, David Mendelson, and Cecelia Solomon are officers of said United Importers, Inc., and they formulate, direct and control the acts, practices and policies of said corporation.

The respondents are engaged in the importation, sale and distribution of textile fiber products, and their office and principal place of business is located at 12936 West Seven Mile Road, Detroit, Michigan.

Par. 2. Respondents are now and for some time last past have been engaged in the manufacture for sale, the sale or offering for sale, in commerce, and have imported 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 “commerce” and. “products” 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 were sweat shirts.

Par. 8. 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 as such 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.

75 Decision and Order Decision AND OrbDER 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 Commission, would charge respondents with violation of the Federal Trade Commission Act and_ the Flammable Fabrics Act, 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 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 thereupon accepted the executed consent agreement and placed ‘such agreement on the public record for a period of thirty (380) 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 jurisdictional findings, and enters the following order : 1. Respondent Solex, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Michigan.

Respondents Cecelia Solomon, Haim M. Solomon, and Henry Solomon are officers of said Solex, Inc., and they formulate, direct and control the acts, practices and policies of said corporation. Respondent United Importers, Inc., is a corporation creganized, existing and doing business under and by virtue of the laws of the State of Michigan.

Respondents Henry Solomon, David Mendelson, and Cecelia Solomon are officers of said United Importers, Inc., and they formulate, direct and control the acts, practices and policies of said corporation.

Respondents are engaged in the importation, sale and distribution of textile fiber products, and their office and principal place of busi- 7&8 FEDERAL TRADE COMMISSION DECISIONS Decision and Order %9 ¥.'T.C.

ness is located at 12936 West Seven Mile Road, Detroit, Michigan. 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 Solex, Inc., a corporation, and United Importers, Inc., a corporation, and their officers, and Henry Solomon, Cecelia Solomon, Haim M. Solomon and David Mendelson, individually and as officers of said corporations, and respondents’ representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from manufacturing for sale, 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 material, as “commerce,” “product,” “fabric” or “related material” are defined in the Flammable Fabrics Act, as amended, which product, fabric or related material, fails to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the aforesaid Act. It is further ordered, That the respondents herein shall, within ten (10) days after service upon them of this order, file with the Commission an interim special report in writing setting forth the respondents’ intentions as to compliance with this order. This interim special report shall also advise the Commission fully and specifically concerning the identity of the product (sweat shirts) which gave rise to the complaint, (1) the amount of such product in inventory, (2) any action taken to notify customers of the flammability of such product and the results thereof and (3) any disposition of such product since January 12, 1970. Such report shall further inform the Commission whether respondents have in inventory any fabric, product or related material having a plain surface and made of silk, rayon, and acetate, nylon and acetate, rayon, cotton, or combinations thereof, in a weight of two ounces or less per square yard, or fabric with a raised fiber surface made of cotton or rayon or combinations thereof. Respondents will submit samples of any such fabric, product or related material with this report. Samples of the fabric, product or related material shall be of not less than one square yard of material.

It is further ordered, That the respondents herein either process the product (sweat shirts) which gave rise to this complaint so as to 75 ~~ Complaint bring it within the applicable flammability standards of the Flammable Fabrics Act, as amended, or destroy said product. It is further ordered, That respondents notify the Commission at least 30 days prior to any proposed change in the corporate respondents such as dissolution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidjaries or any other change in the corporation which may affect compliance obligations arising out of the order. It is further ordered, That the respondent corporations shall forthwith distribute a copy of this order to each of their 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.