H. Groner & Co., Inc

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

In. THE Marre OF.

Sa GRONER & co, ING, Er AL.

CONSENT ORDER, ‘pre.,. IN REGARD ‘TO THE ALLEGED VIOLATION or THE _ FEDERAL + TRADE COMMISSION ACT AND THE FLAMMABLE FABRICS ACT. Docket o-2881. Complaint, Dee. 12, 1972—Decision, Dee. 12, 1972 Conseiit order requiring a Chicago,. Til. importer and jobber of various products, including scarves among other things, to cease selling, importing, or. ‘distributing any product, fabric, or related material which fails to conform to an applicable standard of flammability or regulation issued under the. provisions of the Flammable Fabrics ‘Act, as amended. ComrLarnt - 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 H. Groner & Co., Inc.,a corporation, and Henry Groner, individually and as‘an: officer 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 4 issues its complaint, stating its charges i in that respect, as follows:

Paracrary 1. Respondent FH. Groner & Co., Inc., is a corporation, organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 318 West Adams, Chicago, Illinois. Respondent Henry Groner i is an officer of the corporate respondent. He formulates, directs and controls the acts, practices and policies of. said corporation. His address is the same as that of the corporate respondent.

Respondents are importers and jobbers of various products including scarves.

Par. 2. Respondents are now and for some time jast past have been engaged in the sale and offering for sale, in commerce, and in the importation into the United States, and have introduced, delivered for introduction, transported and caused to be transported i 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 failed to conform 932: FEDERAL TRADE COMMISSION DECISIONS ..

Decision and: Order _ 81 FTC.

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. a Par. 3. The aforesaid acts and practices of respondents * were e and. are in violation of the Flammable Fabrics Act, as amended, and the rules and regulations promulgated thereunder, and 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. Oroer..

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 pro-. posed. 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 Eabries Act, . as; amended; and The: ‘yespondents 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 pre- _ scribed in Section 2.34(b) of its rules, the Commission hereby issues its its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent H. Groner & Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois.

Respondent Henry Groner is an officer of the corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporation.

HH, GRONER & CO., INC., ET AL: 983 931: , Decision and Order - Respondents are importers and jobbers of various products including scarves. Their office and principal place of business is located at 318 West Adams, Chicago, Illinois.

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 is ordered, That respondents H. Groner & Co. Inc., a corporation, its successors and assigns, and its officers, and Henry Groner, 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 selling, offering for sale, in commerce, or importing into the United States, -Or introducing, delivering - ‘for introduction, transporting or causing: to be transported i in commerce, or selling or delivering after sale or shipment in commerce any product, fabric.or related material ; or 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 Mle. mable. 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.

It 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 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. It 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 spécifically concerning (1) the identity of the products which gave rise to the complaint, (2) 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 from customers, and of the results thereof, (4) any disposition of said products since March 19, 1971, and (5) any action taken or proposed to be taken to 934 FEDERALE'TRADE COMMISSION! DECISIONS Decision. and Order . 81 E.T.C.

-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 suchiaction: Such report shall further-inform the Commission asto 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 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 subinit sam- ‘ples of not less than one square yard ij in size of any ‘sitch product, fabric, ‘or related material with this report. © It is further ordered, ‘That: the respondents notify. the Gominission at least: 30 days prior to any proposed change in the corporate respond- ‘ent 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 i in the corporation which may affe eet, compliance obti gations arising out of the order.

ploynbedt. ‘Such notice shall include raspondatit’s current ‘business or ~émployment in ‘which’ ‘he i is engaged a as well as a description of his duties and responsibilities. © It ts further ordered, That the respondent corporation shall forth- “with 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 thenr of this. order, file’ with the Commission a report, in writing, setting forth in detail the manner and “forma in which they have complied with this order.