Concord Carpet Corporation

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IN THE MATTER OF CONCORD CARPET CORPORATION, TRADI!\G AS CO!\CORD CARPET :VIILLS, INC. ET AL.

COXSE?\T ORDER , ETC. , I:- REGARD TO THE ALLEGED VIOLATIOC\ OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-23f!fJ. Complaint, April iJ , 1973-Decisioll, April :28 197.1. Consent order requiring a Chicamauga, Georgia manufacturer and seller of carpets and rugs, among other things to cease manufacturing for sale selling, importing, or distributing any product, fabric, 01' related material which fails to conform to an applicable standard of flammability or regula­ tion issued unr:er the provisions oftJlf 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 , , CONCORD CARPET CORP. , ET AL. 1251 12. Complaint Commission, having reason to believe that Concord Carpet Cor­ poration, a corporation, trading as Concord Carpet J\li118, Inc. and William E. Hale Jr. , individually and as an officer of the said corporation, hereinafter referred to as respondents, have violated the provisions of the said Acts and the rules and regula­ tions 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: PARAGRAPH 1. Respondent Concord Carpet Corporation, is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia. Respondent William E. Hale, Jr. , 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 car­ pets and rugs, with their principal place of business located at P. O. Box 38 Lcc A venue, Chican1auga, Georgia. PAR. 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 com­ merce, and have sold or delivered after sale or shipment in com­ merce, products, as the terms "commerce " and "product " are defined in the Flammable F' abrics Act, as amended, which pro­ ducts fail to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the Flam111able Fabrics Act, as amended. Among such products mentioned hereinabove were carpets and rugs Style " Sensation " (pre-October, 1971 production, roll numbers up to 2960) subject to Department of Commerce Stan­ dard For The Surface Flammability of Carpets and Rug's (DOC FF 1- 70).

PAR. 3. The aforcsaid 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 com pet i­ tion 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 investiga­ tion of certain acts and practices of the respondents named in 1252 FEDERAL TRADE CO:lmission DECISIO:\S Decision and Order 82 F. 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 Flammable Fabrics Act, as amended; and The respondents and counsel for the Commission having-there­ after 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 respon­ dents 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 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 Concord Carpet Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia.

Respondent Wiliam E. Hale, Jr. , is an officer of the said cor­ poration. He formulates, directs, and controls the acts, practices and policies of the said corporation.

Respondents are engaged in the man ufacture and sale of car­ pets and rugs, with the office and principal place of business ofrespondents located at P. O. Box 38 , Lee Avenue, Chicamauga Georgia.

2. The Federal Trade Commission has jurisdiction of the sub­ ject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is on/ereel That respondent Concord Carpet Corporation a corporation, trading as Concord Carpet l\'lills, Inc., or under any other name or names, its successors and assigns, and its CONCORD CARPET CORP. , Jot AL. 1253 1250 Decision and Order offcers, and respondent William E. Hale, Jr. , individually and as an officer of said corporation and respondents' agents, rep­ resentatives 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 l)united States, or introducing, delivering for introduction, transporting or causing to be trans­ ported in commerce, or selling or delivering after sale or ship­ ment 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 01' received in commerce, as " commerce product fabric" and related material" are defined in the Flammable Fabrics Act as an1ended, which product, fabric or related material fails to conform to an applicable standard or regulation continued in effect, issued or amended un dci' thc provisions of the aforesaid Act.

It is ji thel' ol'del'ed That respondents notify all of their cus­ tomers who have purchased 01' to whom have been delivered the products which gave rise to this complaint, ofthe Dammable nature of said products and effect the recall of said products from such customers.

It ,is further ordered That thc respondents herein either pro­ cess the products \which gave rise to the complaint so as to bring them into conformance with the applicable standard of flamnla­ bility under the Flammable Fabrics Act, as amended, or destroy said products.

It is furthe1' ol'derI'd 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 compliancc with this order. This special report shall also advise the Commission fully and specifi­ cally concerning (1) the identity of the products which gave rise to the complaint, (2) the identity of the purchasers of said pro­ ducts, (3) the amount of said products on hand and in the chan­ nels of commerce, (4) any action taken and any further actions proposed to be taken to notify customers of the Dammability of said products and effect the recall of said products from cus­ tomers, and of the results thereof, (5) any disposition of said products since April5 , 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 Fab­ rics Act, as amended, or to destory said products, and the results of such action. Respondents will submit with their report, a 1254 FEDERAL TRADE COMMISSIOK DECISIONS Decision and Order 82 F. complete description of each style of carpet or rug currently in inventory or production. Upon request, respondents will for ward to the Commission for testing a sample of any such carpet or rug.

It is further ordered That respondents 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, t le creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. It is fU1.ther ordered That the individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment and of his affiiation with a new business or employment. Such notice shall include respon­ dent' s current business or employment in which he is engaged as well as a description of his duties and responsibilities. It is further ordered That the respondent corporation shall forthwith 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 them of this order, file with the Commission a report in writing setting forth in detail the