Wellco Carpet Corp

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In THE Marrer OF WELLCO CARPET CORP.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FED- ERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-2278. Complaint, Sept. 8, 1972—Decision, Sept. 8, 1972. Consent order requiring a Calhoun, Georgia, seller and manufacturer of carpets and rugs, among other things to cease manufacturing for sale, selling, 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 provisi ons of the Flammable Fabrics Act. | CoMPLaINtT 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 Wellco Carpet: Corp., a corporation, hereinafter 494-841-7309 .

330 FEDERAL TRADE COMMISSION’ DECISIONS Decision and Order 81 FTC.

referred to as respondent, has 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: Paragrarn 1. Respondent Wellco Carpet Corp., is: a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia.

Respondent is engaged inthe manufacture and sale of carpets and - rugs, with its principal place of business located at, P. O. Box 281, Calhoun, Georgia.

Par. 2. Respondent for some time last past was engaged in then manufacturing for sale, sale and offering for sale, in commerce, and has introduced, delivered for introduction, transported and caused to be transported 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.

Such products mentioned hereinabove were “Super Value” and “Windy Hill” carpeting 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 respondent were in violation of the Flammable Fabrics Act, as amended, and the rules and regulations promulgated thereunder, and as such constituted 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 respondent named in the caption hereof, and the respondent 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 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 > WELLCO.:CARPET: ‘CORP... << 331 B29 OF: ‘Decision and ‘Order for settlement purposes only and doesnot constittite 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: (30) days, now in further conformity with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby i issues its complaint, makes the following jurisdictional findings, and enters the following order:

‘1. Respondent Wellco Carpet Corp., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia.

Respondent is engaged in the manufacture, and sale of carpets and rugs, with “its office and principal place of business located at P.O. Box 281, Calhoun, Georgia..

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 Lt is ordered, That respondent Wellco Carpet Corp., a corporation, its successors and assigns, and its officers, and respondent’s 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 im 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” 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. - 332 FEDERAL. ‘TRADE: .COMMISSION: ‘DECISIONS Decision and ‘Order 81 F.T.C.

. It ts. further ordered, ‘That respondent, if it has not already done so; notify all of its customers who have purchased or to whom has been delivered the products which gave rise to this complaint, of the possible flammable nature of said products and effect the recall, if it has not already done'so, of said products from such customers. It is further ordered, That the:respondent-herein shall 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 respondent herein shall, within ten (10): days after service upon it of this order, file with the Commission a special report in writing setting forth the respondent’s 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 takenand any further actions: proposed to be taken to notify customers of thé 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 September 10,1971, and (6) any action taken or proposed to bé 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. Respondent will submit with its report, a complete description of each style of carpet or rug currently in inventory or production. Upon request, respondent will forward to the Commission for testing a sample of. any such car pet or rug. oe It és 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.

7 t %s further ordered, That the ‘respondent corporation shall forth- Th t 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 i in which it has complied with this order.

2 SHUTZER -ENDUSTRIES, “INC; ETAL 3 | 333.

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