Danube Carpet Mills, Inc

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In roe Marrer or DANUBE CARPET MILLS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND TITE FLAMMABLE FABRICS ACTS Docket C-2303. Complaint, Oct. 13, 1972—Decision, Oct. 13, 1972. Consent order requiring a Fort Oglethorpe, Georgia, manufacturer and seller of earpets and rugs, among other things to cease manufacturing for sale, selling, inporting, 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 Fabries Act. Compt. AINT 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 Commissior having reason to believe that Danube Carpet. Mills, Inc., a corporation and Carl D. Hagaman, individually and as an officer of the said co poration, hereinafter referred to as respondents, have violated the pr visions of the said Acts and the rules and regulations promulgat under the Flammable Fabrics Act, as amended, and it appearing the Commission that a proceeding by it in respect thereof would on FEDERAL TRADE COMMISSION DECISIONS Decision and Order 81 FTC.

in the public interest, hereby issues its complaint stating its charges in that respect as follows:

Paracrarn 1. Respondent Danube Carpet Mills, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Tennessee. Respondent Carl D. Hagaman 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 212 First Street, P.O. Box 2298, Fort Oglethorpe, Georgia. Pan. 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 “products,” 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 carpets and rugs in style “Extravaganza,” subject to Department of Commerce Standard For the Surface Flammability of Carpets and Rugs (DOC FF 1-70).

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 OnpEeR The Federal Trade Commission having initiated an investigation £ certain acts and practices of the respondents named in the caption ereof, and the respondents having been furnished thereafter with a »py of a draft of complaint which the Bureau of Consumer Protection -oposed to present to the Commission for its consideration and which, issued by the Commission, would charge respondents with violation the Federal Trade Commission Act and the Flammable Fabrics t,as amended; and , ‘he respondents and counsel for the Commission having thereafter yvuted an agreement containing a consent order, an admission. by vespondents of all the jurisdictional facts set forth in the aforesaid DANUBE CARPET MILLS, INC., ET AL.

611 Decision and Order 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 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Danube Carpet Mills, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the ' State of Tennessee. Respondent Car] D. Hagaman is an officer of the corporation. He formulates, directs and controls the acts and practices and policies of the said corporation.

Respondent corporation is engaged in the manufacture and sale of carpets and rugs. Its office and principal place of business is located at 212 First Street, Fort Oglethorpe, Georgia. 3. The Federal Trade Commisgion has jurisdiction of the subject matter of this proceeding and of the respondents and the proceeding is in the public interest.

ORDER It is ordered, That respondent Danube Carpet Mills, Inc., a corporation, its successors and assigns, and its officers, and respondent Carl D. Hagaman, 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 mtroducing, delivering for introduction, transporting or causing to b transported in commerce, or selling or delivering after sale or shipmen in commerce, any product, fabric, or related material; or manufactu ing for sale, selling, or offering for sale, any product made of fabric: related material which has been shipped or received in commerce, “commerce,” “product,” “fabric” and “related material” are defir in the Flammable Fabrics Act, as amended, which product, fabric related material fails to conform to an applicable standard or reg Decision and Order 81 F.T.C, tion continued in effect, issued or amended under the provisions of the aforesaid Act. .

Tt 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. 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 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 the results thereof, (5) any disposition of said products since April 27, 1972, 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. Tt is further ordered, That respondents notify the Commission at east 380 days prior to any proposed change in the corporate respondnt such as dissolution, assignment or sale resulting in the emergence f a successor corporation, the creation or dissolution of subsidiaries ‘any other change in the corporation which may affect compliance ligations arising out of the order.

(tis further ordered, That the individual respondent named herein mmptly notify the Commission of the discontinuance of his present ‘ness or employment and of his affiliation with a new business or loyment. Such notice shall include respondent’s current business mployment in which he is engaged as well as a description of his as and responsibilities.

is further ordered, That the respondent corporation shall forth-