Sweetwater Carpet Corporation

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I:- THE MATTER OF SWEETWATER CARPET CORPORATION CONSENT ORDER, ETC. IN REGARD TO THF: ALLEGED VIOLATIO:- OF THE FEDERAL TRADE J:IISSION AND THE FLA:vnIABLE FABRICS ACTS !Jocket C-2385. CU'lplaint, Api' il2:? , 1973-Dedsion, Apdl23 , 1.973. Consent order requiring a New York City manufacturer and seller of carpets and rugs, among' other thing-s to cease manufacturing for sale, selling', im­ porting, or distributing any product, fabric, 01' related material which fails to conform to an applicable standard of flammability OJ' regulation issued under the provisions of the Flammable Fabrics Act, as amended. COMPLAI:\T 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 Sweetwater Carpet Corporation, a corporation, hereinafter referred to as respon­ dent, 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 Commjssion that a proceed­ ing by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondent Sweetwater Carpet Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of New Yark. Respondent is engaged in the manufacture and sale of carpets and rugs, with its principal place of business located at 919 Third Avenue, New York, New York.

PAR. 2. Respondent for some time last past has been engaged jn the manufacturing for sale, sale and offering for sale, in com merce, and has introduced, delivered for introduction, trans­ ported and caused to be transported in commerce, and has sold or delivered after sale or shipment in commerce, products, as the terms "commerce " and " product " are defined in the Flamm able 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 Fab­ rics Act, as amended.

Among such products mentioned hereinabove were carpets and rugs Style :'0. 106 (foam back only) manufactured between 1248 FEDERAL TRADE COMlVIISSJO:- DECISIO:-S Complaint H2 F.

April 16, 1971 and August 29 , 1971 , 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 decep­ tive acts and practices in commerce, within the intent and 111ean­ ing of the Federal Trade Commission Act. DECISIO:\ A:-D ORDER The Federal Trade Commission having initiated an investiga­ tion 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 there­ after 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 for settlement purposes only and does not constitute an ac1111ission 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 respon­ dent 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 agree­ ment on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in Section 34(b) of its rules, the Commission hereby issues its complaint makes the following jurisdictional findings, and enters the fol­ lowing order:

1. Respondent S"veetwatcr Carpet Corporation is a corpora­ tion organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondent is engaged in the manufacture and sale of carpets and rugs, with the office and principal place of business of SWEETWATER CARPET CORP. 1249 Decision and Order1247respondent located at 919 Third Avenue, New York, Kew York. 2. The Federal Trade Commission has jurisdiction of the sub­ ject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered That respondent Sweetwater Carpet Cor­ poration, 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 ano 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 in commerce, or selling or delivering after sale or shipment in com­ merce, any carpet or rug; or manufacturing for sale, selling, or offering for sale, any carpet or rug made of fabric or related material which has been shipped or received in commerce, as " il COmTI1erce fabric " and "related material" carpet rug, are defined in the Flammable Fabrics Act, as amended, or any applicable standard or rcgulation continued in effect, issued or amended under the provisions of the aforesaid Act, which carpet or rug fails to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the aforesaid Act.

It isfi,rtheronlerecl That respondent notify all of its customers who have purchased or to whom have been delivered the pro­ ducts which gave rise to this complaint, of the flammable nature of said products and effect the recall of said products from such customers.

It isfil. ther ordered That the respondent herein either process the products which gave rise to the complaint so as to bring them into conformance with the applicable standard offlamma­ bility under the Flammable Fabrics Act, as amended, or destroy said products.

It is fu.rther ordered That the respondent herein shall, within ten (10) days after service u pan it of this order, file with the Commission a special report In writing setting forth the respon­ dent's intentions as to compliance with this order. This special report shall also advise the Commission fully and spccifical1y concerning (1) the identity of the products which gavc rise to the complaint, (2) the idcntity 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 1250 FEDERAL TRADE CO,DlISSIOK DECISIONS Decision and Order 82 F. to be taken to notify customers of the flammability of said pro­ ducts and effect the recall of said products from customers, and of thc results thereof, (5) any disposition of said products since March 21 , 1972 , and (6) any action taken or proposed to be taken to bring said products into conformance with the applicable stan­ dard 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 Com­ mission for testing a sample of any such carpet or rug. It i" .rnrther 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 d issol uti an of su bsidiaries or any other change in the" corporation which may affect compliance obligations arising out of the order. It is jilrther ordered That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions.

It is ji/rther O1'de,.ed That the respondent herein shall, within sixty (60) days after service upon it of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order.