Shutzer Industries, Inc

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

In: THE Matter. OF:

| SHUTZER INDUSTRIES, INC, ET AL.

CONSENT ORDER, BIC., IN “REGARD TO THE ALLEGED VIOLATION OF ‘THE FEDERAL. TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS” ; Docket 0-2279, Complaint, Sept. 18; 1972—Deoision, Sept. 18, 1972. Consent order requiring a ‘Lawrence, Massachusetts, manufacturer and distributor of men’s and boys’ garments, among ‘other things to cease misbranding its merchandise ‘by failing to adequately label said merchandise in accord- ~ ance with the applicable provisions of the Wool:Products | Labeling Act. “ Comenaner Pursuant to the provisions of the Federal Trade Conimission Act and the Wool Products Labeling Act of 1989, and by virtue of the authority, vested in it by said Acts, the. Federal Trade. ‘Commission, having reason ‘to ‘believe that Shutzer Industries, Ine., a corporation, and Shutzer Manufacturing. Co., Inc., a corporation, and Lawrence L. ‘Shutzer, individually and as. an officer of said corporations, hereinafter referred to as respondents, have violated. the provisions of said ‘Acts and the rules and regulations promulgated under the Wool Products Labeling Act of 1939, 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:

Paracrapu 1.-Respondent Shutzer Industries, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at 250 Canal Street, Lawrence, Massachusetts. - Respondent Shutzer Manufacturing Co., Inc., is a corporation or+ ganized, existing and doing business under and by virtue of the laws _of the State of Massachusetts, with its office and principal place of business located at 250 Canal Street, Lawrence, Massachusetts. - Respondent Lawrenée L. Shutzer is an officer of the corporate respondents. He formulates, directs and controls the acts, practices and policies of the corporate respondents. He has his office and principal place of business located at 250 Canal Street, Lawrence, Massachusetts. Respondents are engaged in the manufacture and distribution of men’s and boys’ garments.

Par. 2. Respondents, now and for some time last past, have manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment, shipped, and 334 FEDERAL TRADE ..;COMMISSION ‘DECISIONS Decision and: Order 81 FTC.

offered for sale, in commerce, as “commerce” is defined in the Wool Products Labeling Act. of 1939, wool products as .. Wool product” is defined therein.

Par. 3. Certain of said wool products were misbranded by respondents in that they were not stainped, tagged, labeled, or otherwise identified as required under the provisions of Section 4(a) (2) of the Wool Products Labeling. Act of 1939 and in the.manner.and form as prescribed by the rules and regulations promulgated under said Act. _ Among. such misbranded wool products, ‘but not limited thereto, were certain wool. products, with. labels on_.or. affixed thereto, which failed to disclose the percentage of the total fiber weight of the wool products, exclusive of ornamentation not exceeding 5 per centum of said total fiber weight, of (1) wool; (2) reprocessed wool; (3) reused wool; (4). each fiber other than wool, when said percentage by weight of such fiber was five per. centum or more; and (5) the aggregate of all other fibers.

Par. 4. The acts and practices of the respondents as set forth: above. were, and are, in violation of the Wool Products Labeling Act of 1939 and the rules and regulations promulgated thereunder, and constituted, and now constitute, unfair methods of competition and unfair and deceptive. acts or practices, in commerce, within the intent and meaning of the Federal Trade Commission Act.

DeEcIsSION 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 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 Wool Products Labeling Act of 1989; 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 _ us SERUEZOR.ENDUSTRIBS, .ING.,. BT AL... 335 3330 Decision. and Order 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. (80), 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: oe A. Respondent Shutzer Industries, Inc., is a corporation organized, existing and doing business under. and by virtue of the laws of. the State of’ Delaware, with its office and principal place of business located ‘at 250.Canal Street, Lawrence, Massachusetts. Respondent Shutzer..Manufacturing Co,, Inc. is a corporation organized, existing and doing business. under. and by virtue of the laws of the State of Massachusetts with its office and principal place of business located at.250 Canal Street, Lawrence, Massachusetts. . Respondent Lawrence L: Shutzer is an officer of the corporate respondents. He formulates, ‘directs, and controls the acts, practices and policies of the corporate respondents. He has his office and principal place of business located at 250 Canal Street, Lawrence, Massachusetts.

Respondents are engaged in the: manufacture and distribution of men’s and boys’ garments.

2. 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 ts ordered, That respondents Shutzer Industries, Inc., a corporation, its successors and assigns, and its officers, and Shutzer Manufacturing Co., a. corporation, its successors and assigns, and its officers, and Lawrence L. Shutzer, individually and as an officer of said corporations, and respondents’ representatives, agents and employees, directly or through any corporation, subsidiary, division or other device, in connection with the introduction or manufacture for introduction, into commerce or the offering for sale, sale, transportation, distribution, delivery for shipment, or shipment, in commerce, of wool products, as “commerce” and “wool product” are defined in the Wool Products Labeling Act of 1939, do forthwith cease and desist from misbranding such products by failing to securely affix to, or place on, each such product. a stamp, tag, label or other means of identification showing in a clear and conspicuous manner each element of information required to be disclosed by Section 4(a) (2) of the Wool Products Labeling Act of 1939.

336 . FEDERAL TRADE COMMISSION: DEGISIONS Decision’ and’ Order 81 F.T.C.

“It is further ordered; That respondents: notify the Commission. at least 30 days prior to any proposed changes in the corporate respondents ‘such as dissolution, assignment or sale resulting in the emergence of successor corporations, the creation or dissolution of subsidiaries or any other change i in the corporations which may affect compliance. obligations arising out of the order. ms It is further ordered, That the respondent: corporations shall forth: with distribute a copy of this order to each‘of their-operating divisions. It is further ordered, That the individual respondent named herein promptly notify the Commission ofthe discontinuance’ of his present business or employment: and of his affiliation with a new business or employment. Such: notice shall include respondent’s current business or employment in which he is engaged as well asa description ‘of his , duties and responsibilitiés.

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 i in writing setting forth in detail the manner and form