Egetaepper, Inc

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

In tue Marvrer or EGETAEPPER, ING., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDER: AL TRADE COMMISSION AND THE FL AMMABLE FABRICS ACTS Docket:C- 824d. Company, July 3, 1972—Decision; July 3, 1972. Consent order requiring a New York City importer, manufacturer and seller of rugs and carpets, to cease, among other things, manufacturing for sale, sell- Complaint 81 B.T.C.

ing, importing or tratisporting any product, fabric;-or related material which fails to conform to. an applicable standard of flammability or regulation issued under the provisions of the Flammable. Fabrics Act. . 4 Comprarnt Pursuant ‘to ‘the provisions of the Federal, Trade Commission ‘Act and the Flammable Fabrics Act, as amended, and by virtue.of the'author ity vested in it by said Acts; the Federal Trade,Commission, haying reason to believe that-Egetaepper, Inc., a corporation, and ‘Prehen ‘Harton, individually: and asian Officer of the said. corporation, herein: after referred: to ‘as respondents; have violated:the provisions of the said: Acts and the rules:and regulations: promiilgated, under:the Flammable.Fabrics Act, as amended;and it. appearing to the: Commission that a pr oceeding by it in respect thereof would be inthe public interest, hereby ‘issues: its: complaint stating its: charges | in. that respert 2 as follows: By Do is ellos oO PARAGRAPH '1. Respondent Heetaeppar, Inc, Is @ . corporation 0 organized, ‘existing and doing business under and by. virtue.of the laws of the State of New York: Respondent. Preben Harton,.is an officer of the said corporate respondent. He formulates, directs, and controls: the acts, practices; and policies of the said corporation. . bos Respondents are engaged in the manufacture, importation and sale of carpets and rugs, with their principal place of business located at 919 8rd Avenue, New York, New York.

Par. 2. Respondents are now and for some time last t past have been engaged in the manufacturing for sale, 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 i 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 fail 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 carpets and rugs Design Kala 05 subject to Department of Commerce Standard For The Surface Flammability of Carpets and Rugs (DOC FF 1-70). 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 as such 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.

: EGETAEPPER, INC, ET AL. 17 15)° - ; Decision and. Order ' -DEctston. AND Orbe * “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 proposéd 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 t 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. Jaw 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 (30) 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 Egetaepper, Inc., is a corpor: ation organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondent Preben Harton is an officer of the said corporation. He formulates, directs, and controls the acts, practices and policies of the said corporation. ;

Respondents are engaged in the manufacture, importation and sale of carpets and rugs, with the office and principal place of business of respondents located at 919 8rd Avenue, New York, New York. - 9, 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 respondent Egetaepper, Inc., a corporation, its successors and assigns, and its officers, and respondent Preben Harton, individually and as an officer of said corporation and respondents’ 18 FEDERAL. TRADE .COMMISSION DECISIONS Decision. and Order 81 F.T.C, agents, representatives and employees directly or through any corporation, subsidiary, division, 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 i In commerce, or selling or delivering after sale or shipment in commerée, any ] uct, fabric, or related niaterial; ot Jnanlufacturing for sale, séili offering for sale, any product made of fabric or related materia has been shipped or réceived ini commerce, ‘as “conlinerce,” “prodiicts,* “fabric” and “related material” are defined in the’ Flamm Act, as amended, which product; fabric ‘or related | material’ fails to conform to an’ applicable ‘standard or regulation’ continued i issited ‘or’ amended: under thé ‘provisions of the aforesaid’ Met. | It is further ordered, That respondents notify all of their custo who have: purchased orto whom: have been ‘delivered’ the pr which ‘gave rise‘ to’ this coriplaint, of the flammable ‘natire | products, and ‘effect ‘the’ recall’ of said’ products'from such customer } It is further ordered, That the respondents herein either process ‘the | products which ‘gave rise to the complaint so as to bring 3 conformance with the applicable’ standard of flammability, under ‘the Flammable Fabrics Act, as amended, or destroy said products. | [t is further ordered, That 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 identity of the purchasers of said products, (3) the amount of said products on hand and in the channels of commerce, (4) 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, (5) any disposition of said products since January 3, 1972, and (6) 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 to destroy said products, and the results of such action. Respondents will submit with their report, a complete description of each style of carpet or rug currently in inventory or production. Upon request, respondents will forward to the Commission for testing a sample of any such carpet or rug.

lt is further ordered, That respondents notify the Commission at least 30 days prior to any proposed change in the corporate respondent “ PIZIPZ,;: INC.,: ET ALS 2605 19 15°. ‘Complaint 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