Cavalier Carpets, Inc

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In rue Marrer or CAVALIER CARPETS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket O-2258. Complaint, July 21, 1972—Decision, July 21, 1972. Consent order requiring a Dalton, Georgia, manufacturer of carpets and rugs, among other things, to cease manufacturing for sale, selling, transporting, importing, or distributing any product, fabric, or related material which fails to conform to an applicable standard of flammability or regulation issued or amended under the provisions of the Flammable Fabrics Act. 166 FEDERAL: TRADE ‘COMMISSION ‘ DECISIONS: ‘Complaint 81. FVT.C.

. ~ 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 i in it by said Acts, the Federal, Trade. Commission, having reason to believe. that. Cavalier Carpets, Inc,,.a, corporation, and M. W.. Moores: Jr, individually and, as.an officer of 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. Commis- -sion that a proceeding by .it i in respect; thereof would. be in, the public interest, hereby..i issues ats, complaint stating its charges i in that respect . as follows: . i, 3.5, bee . PARAGRAPH 1, “Respondent. Cavalier Carpets, Ine., j is a “corporation organized, existing and, doing business under and, by.’ virtue of; the. laws of the State of Georgia. Respondent M. W. Moore, Jr.,.is an officer of the said corporate respondent. He formulates, directs, and, controls the the acts, practices, and: ‘policies: of the.said corporation. . i _ Respondents,are engaged in the. manufacture and sale of carpets, and rugs, with their principal piace, of business located « at; Whitfield Industrial Park, Dalton; Georgia... ae Par. 2. Respondents are now ‘and for some time last past have been: engaged in the manufacturing for sale, sale and offering for sale, in commerce, 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 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 Ket, as amended. Among such products mentioned hereinabove were carpet styles Sahara J in red, blue and green tones and Sahara Vinylbac in red and green tones, each 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.

_ CAVALIER CARPETS, INC., ET AL. 167 165. -. Decision and Order Decision AND ORDER - The Federal Trade: Cominission’ having initiated an investigation ‘of certain acts and practices of thé responderits named in the ¢aption hereof, and the respondents having been furnished thereafter with a copy ‘of ‘a draft of complaint which the’ Division of Textiles and Furs, Bureau of ‘Consumer Protection, proposed to present to the Comimis- ‘sion for its consideration and which, if issued’ by the Commission, would chargé 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. ofall the jurisdictional facts set’ forth in the afore- ‘said 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 alléged’ in stich complaint, and waivers and other provisions a as required by,! the ~-Commission’s rules}and © 7!"

The Commission having’ thereafter considéred. the’ matter and having detérmiried 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 Cavalier Carpets, Inc. is a corporation organized, existing and doing business under and by ¥ virtue of the laws of the State of Georgia.

Respondent M: W. Moore, Jr., is an officer of the said corporate respondent. He formulates, directs, and controls the acts, practices and policies of the said corporation, Respondents are engaged in the manufacture and sale of carpets and rugs, with their principal place of business located at Whitfield Industrial Park, Dalton, Georgia.

2, The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the pr oceeding is in the public interest. oo, , : ORDER rf ti 48 ordered, That respondent Cavalier Carpets, Inc., a corporation, its successors and assigns, and its officers, and respondent, M. -W. Decision and Order 81 F.T.C.

Moore, Jr., individually and as an officer of said corporation and respondents’ 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 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 ma- . terial 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.

lt is further ordered, That respondents notify all of their customers who have purchased or to whom have been delivered the products which gave rise to this complaint, of the flammable nature of said products and effect the recall of said products from such customers. _ Itis 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 Flammable 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 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 July 20, 1971, 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.

E. I, pUuPONT. pp NEMOURS AND COMPANY 169 Complaint 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.

Lt 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.