Leemor Import Corp

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

In THE. Marrer OF: .

-LEEMOR IMPORT CORP, ET AL.

CONSENT ORDER, ETC.,’ IN ‘REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS acts ” Docket O-8260, Complaint, July ay, 1972Decision, July 27, 1972.: Consent order requiring a New York City importer and distributor of women’ s accessories, including ‘women’s scarves, to cease, among other things, selling, importing, or transporting 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. Contenanr Pursuant to the provisions: of the Federal Trade Commission Act and the Flammable Fabrics Act, as amended, and by virtue of the authority vested. init: by said Acts, the Federal Trade Commission, having reason: to believe that Leemor Import Corp.,:a corporation, and Joseph Salem and Eli Haber, individually and as officers of said corporation, hereinafter: referred to as respondents have 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:

Paracrary 1. Respondent Leemor Import Corp., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Respondents Joseph Salem and Eli Haber are officers of said corporate respondent. They formulate, direct. and control the acts, practices and policies of said corporation. Respondents are engaged in the sale and distribution of merchandise, including, but not limited to, women’s scarves. Their office and principal place of business is located at 8 West 87th Street, New York, New York.

Par. 2. Respondents are now and for some time last past have been engaged in the 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 tr ansported i in commerce, and have sold or delivered after sale or shipment in commerce, products, as “commerce,” and “product,” are defined in the Flammable: 180 FEDERAL TRADE COMMISSION: DECISIONS Decision and Order 81 F.T.C.

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 mentioned hereinabove were scarves. 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 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 ORDER - 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, © Bureau of Consumer Protection 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 (30) days, now in further conformity with the procedure prescribed in Section 2.84(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Leemor Import Corp., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondents Joseph Salem and Eli Haber are officers of the corporate respondent. They formulate, direct and control the acts, practices and policies of said corporate respondent. ... LEEMOR -IMPORT. CORP.,: ET AL. 181 179 Decision and Order Respondents are importers and distributors of women’s accessories, including women’s ‘scarves, with their office and principal place of business. located. at.8 West 37th. Street, New York, New York. .. . .2. The Federal ‘Trade, Commission has jurisdiction of. the subject matter of the proceeding 2 and. of the respondents, and the proceeding i is in- the; public interest.. te oo: ORDER I é as ordered, ‘That respondent Leemor Import Corp! +! a corporation, its successors and assigns, and its officers, and J. Joseph Salem and Eli Haber individually and as officers 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 selling, offering: for ‘sale, j in commerce or importing: into in the Flariniable 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 ts further ordered, That respondents notify all of their customers who have purchased or to whom have been delivered the products which gave rise to the complaint of the flammable nature of said products and effect 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 Flammable Fabrics Act, as amended, or destroy said products. lt is further ordered, That the 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 product which gave rise to the complaint, ® the number of said products in inventory, (3) 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 and of the results thereof, (4) any disposition of said products since January 15, 1971, and (5) any action taken or proposed to be taken 182 FEDERAL TRADE! COMMISSION DECISIONS Decision and Order 81 FTC.

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 as to‘whether or not respondents have in inventory any product, fabric, or related ‘material having a plain surface and made of paper, silk, rayon and acetate, nylon and’ acetate, rayon, cotton or any other material or combinations ‘thereof i in a weight of two ounces or less per square yard, or any product, fabric or related material having a raised fiber. surface. Respondents shall submit samples of not less than one square yard i in size of any such product, fabric, or related material with this report. «dt és further ordered, That responden 3 notify the Commission at least 80 days prior to any proposed change i in the corporate respondent such as dissolution, assignment. or sale resulting i 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 | outoftheorder. . .

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 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.