Lu Wane Products Co., Inc

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In THE Martrer oF LU WANE PRODUCTS Coo., INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-2142. Complaint. Feb. 16, 1972—Decision. Feb. 10. 1972 Consent order requiring a Wayne. N.J.. manufacturer and distributor of wearing apparel, including ladies’ turbans under the name “Magic Turban,” to LU WANE PRODUCTS CO., INC. 137 136 Complaint cease violating the Flammable Fabrics Act by importing and 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 Lu Wane Products Co., Inc., a corporation, hereinafter referred to as respondent, prior to January 17, 1970, has 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: ParacrapH 1. Respondent Lu Wane Products Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware.

Respondent is engaged in the manufacture, sale and distribution of products including, but not limited to, ladies’ turbans made of 100 per cent cotton material, reinforced with nylon thread, and marketed under the name “Magic Turban,” with their principal place of business located in Wayne, New Jersey. Par. 2. Respondent, prior to January 17, 1970, has been engaged in the manufacture for sale, the sale or offering for sale, in commerce, and has introduced, delivered for introduction, transported and caused to be transported in commerce, and has sold or delivered after sale or shipment in commerce, products; and has manufactured, sold and offered for sale, products made of fabrics or related materials which have been shipped or received in commerce, as “commerce,” “product,” “fabric,” and “related material” are defined in the Flammable Fabrics Act, as amended, which products and fabrics 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’ turbans made of 100 per cent cotton material, reinforced with nylon thread, and marketed under the name “Magic Turban.” Par. 3. The aforesaid acts and practices of respondent were in violation of the Flammable Fabrics Act, as amended, and the rules and regulations promulgated thereunder, and as such constituted unfair and deceptive acts and practices in commerce, within the intent and meaning of the Federal Trade Commission Act. 1388 FEDERAL TRADE COMMISSION DECISIONS.

Decision and Order 80 F.T.C.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the 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 the Flammable Fabrics Act, as amended; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent 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 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 thereafter considered the matter and having determined that it had reason to believe that the respondent has 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 (80) days, now in further conformity with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings. and enters the following order. 1. Respondent Lu Wane Products Co., Inc., 1s a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware.

Respondent is engaged in the business of the manufacture, sale and distribution of products including, but not limited to, ladies’ turbans made of 100 percent cotton material, reinforced with nylon thread, and designated as the “Magic Turban,” with its office and principal place of business located at Wayne, New Jersey. 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 ts ordered, That respondent Lu Wane Products Co., Inc., a cor- ‘poration, and its officers, and respondent’s representatives, agents and employees, directly or through any corporate or other device, LU WANE PRODUCTS CO., INC. 139 136 Decision and Order 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; or manufacturing for sale, selling or offering for sale, any product made of fabric or related material which has been shipped or received in commerce 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 any applicable standard or regulation continued in effect, issued or amended under the provisions of the aforesaid Act.

It is further ordered, That respondent, if it has not already done so, notify all of its customers who have purchased, or to whom have been delivered by said respondent, products which gave rise to this complaint of the flammable nature of such products, and effect recall] of such products from said customers.

It is further ordered, That the respondent 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 respondent, herein shall, within ten (10) days after service upon it of this order, file with the Commission an interim special report in writing setting forth the respondent’s intentions as to compliance with this order. This interim special report shall also advise the Commission fully and specifically concerning the identity of the products which gave rise to the complaint, (1) the number of such products in inventory, (2) any action taken and any further actions proposed to be taken to notify customers of the flammability of such products and effect recall of such products irom said customers, and of the results of such actions, (3) any disposition of such products since January 16, 1970, (4) 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 whether respondent has in inventory any fabric, product or related material, as “fabric,” “product” and “related material” are defined in the Flammable Fabrics Act, having a plain surface and made of paper, silk, rayon and acetate, nylon and acetate, rayon, cotton or combinations thereof, in a weight of two ounces or less per square yard, or having a raised fiber surface made of cotton or 140 FEDERAL’ TRADE COMMISSION: DECISIONS . Complaint 80 F.T.C.

rayon or combinations thereof. Respondent 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 no Jess than one square yard of. material. - It is further ordered, That respondent 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 forthwith distribute a copy of this order to each of its operating divisions. It is further ordered, That the 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 in which it has complied with this order.