Ziozis Imports, Inc

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“Iw vee Matrer or AL04IS IMPORTS, INC., ET. AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE _ FEDERAL TRADE COMMISSION. AND THE FLAMMABLE FABRICS ACTS Docket C-2254. Complaint, July 19, 1972—Decision, July 19, 1972. Consent order requiring a New York City importer and seller of rugs and carpets to cease manufacturing for sale, importing, selling, or transporting any product, fabric, or related material which fails to conform to an applicable standard or regulation issued or amended under” provisions of the Flammable Fabrics Act. :

ComMPLAINT 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 Ziozis Imports, Inc., a corporation, and John D. Ziozis, individually and as an officer of the said corporation, hereinafter referred to as respondents, have violated the provisions of the 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:

Paracrapy 1. Respondent Ziozis Imports, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

150 FEDERAL TRADE COMMISSION .DECISIONS Decision and Order 81 B.T.C.

Respondent John D. Ziozis,.is.an officer of the said corporate re-. spondent. He formulates, directs, and controls the acts, practices and policies of the said corporation. , Respondents are engaged in the import and sale of carpets and rugs, ' with their principal place of business located at. 316 Fifth Avenue, New York; New York.

Par. 2. Respondents are now and for some time last past have been engaged in the sale, and the offering for sale, in commerce,..and the importation into. the United States, and the introduction, delivery for introduction, transportation. and causing to be transported, in commerce, and the sale or delivery after-a sale or shipment in commerce, of 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 Flokati wool rugs subject to Department of Commerce Standard For The Surface Flammability of Carpets and Rugs (DOC FF 1-70), 35 FR 6211. 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.

Decision AND Orper The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, arid 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 '“giOZIS IMPORTS, INC.;°ET AL. © 151 149 - Decision and Order 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 thereuponaccepted the executed, consent agreement and placed such agreement onthe public record for a period of thirty (30) days, now in further ‘conformity with the procedure prescribed’ in Séction 2.84(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: :

1. Respondent Ziozis Imports, Inc.; is a corporation organized, oxisting and doing business under and by virtue of the: laws. of the State of New York. ° Respondent John D. Ziozis is an officer of the said corporation. He formulates, directs, and controls the acts, practices and: policies of. said. corporation.

Respondents are engaped i in the import and sale of carpets and. rugs, . with the office and principal place of: business: of respondents: ‘located at 316 Fifth Avenue, New York, New York. : : 2. The Federal Trade‘ Commission ‘has: jurisdiction: ‘of the subject matter of this' proceeding and of the respondents a and the proceeding i is in the public interest.

ORDER It is ordered, That respondent Ziozis Imports, Inc., a corporation, its successors and assigns, and its officers, and respondent John D. Ziozis, individually and as an officer of said corporation, and respondents? agents, representatives and employees directly or through any cor poration, subsidiary, division, or other device, do forthwith cease and desist from the manufacturing for sale, the sale or offering for sale in commerce, or the importation into the United States, or the introduction, delivery for intr oduction, transportation - or causing to be transported, in commerce, or the sale or delivery after a sale or shipment in commerce, of any product, fabric, or related material; or the manufacture for sale, the sale, or the offering for sale, of any product made of fabric or related material:which has been shipped or received in commerce, as “commerce,” “product,” “fabric” and “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 respondents notify all of their customers who have purchased or to whom have been delivered the products 152 FEDERAL TRADE. .COMMISSION -DECISIONS Decision and Order ° 81 F.T.C.

whichi gave rise to this complaint, ofthe 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 Flaminable Fabrics Act, as amended, or. destroy said products... . It 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 thechannels 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 ofthe results thereof:(5) any disposition of said products since August 26, 1971 and (6) any action. taken or proposed to be:taken to bring said products into conformance/with the applicable, standard of flammability undér 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.

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 forthwith 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. ,