Bagatelle International LTD

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IN THE MATTER OF BAGATELLE INTERNATIONAL LTD., ET AI,.

CON ENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND WOOL PRODUCTS LABELING ACTS Docket C-26.'.9. Con/plaint, Feb. , 1975 - Decision, Feb. , 1975 Com,ent order requiring a New York City importer of wool blend fabrics and clolhing manufacturer, among other things to cease misbranding its wool products and importing wool products into the United States without fiing bond with the Secretary of the Treasur in a sum double the value of said wool products and any duty on them.

Appearances For the Commission: J eit R. M cDonalrl. For the respondents: Jack G. Wassermn New York, N. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, and by virue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that Bagatelle International Ltd., a corporation, and Irving Weinstein and Sidney Weinstein, individually and as officers of said corporation, hereinafter sometimes 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 respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH L Respondent Bagatelle International Ltd. is corporation organized, existing and doing business under and by virue of the laws of the State of New York, with its offce and principal place of business located at 1407 Broadway, N. , N. Individual respondents Irving Weinstein and Sidney Weinstein are offcers of Bagatelle International Ltd. They formulate, direct, and control the acts and practices of the corporate respondent, including the ads and practices hereinafter set forth. Their business address is the same as that of the corporate respondent.

Respondents are engaged in the importation of wool products namely wool blend fabrics, the manufacturing of said products into clothing, and the sale and distribution of said items of clothing. PAR. 2. Respondents, now and for some time last past, have imported BAGATELLE INTERNATIONAL LTD., ET AL. 271 270 Complaint for introduction into commerce, manufactured for introduction into commerce, introduced into commerce, transported, distributed, delivered for shipment, shipped, offered for sale, and sold 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 the respondents within the intent and meaning of Section 4(a)(1) of the Wool Products Labeling Act of 1939 and the rules and regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, or otherwse identified with respect to the character and amount of the constituent fibers contained therein. Among such misbranded wool products, but not limited thereto, were certain items of clothing stamped, tagged, labeled, or otherwse identified by respondents as "55 percent polyester, 45 percent wool and "70 percent wool, 30 percent nylon" whereas, in truth and in fact said products contained substantially different fibers and amounts of fibers than represented.

PAR. 4. Certain of said wool products were further mishr-nded by respondents in that they were not stamped, 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 wool products, namely items of clothing with labels on or affxed thereto, which failed to disclose the percentage of the total fiber weight of the said 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 5 per centum or more, and (5) the aggregate of all other fibers.

PAR. 5. Respondents' wool products, namely wool fabrics from which respondents manufacture the garents described in "Paragraph Four above, were imported by the respondents into the United States and, as particularized in said paragraph, were not stamped, tagged, labeled, or otherwse identifed in accordance with the provisions of the Wool Products Labeling Act of 1939. The invoices of said imported wool products required by the Tariff Act of 1930, failed to set forth the information with respect to said wool products required under the provisions of the Wool Products Labeling Act of 1939, to wit, the percentage of the total fiber weight of the said wool products, exclusive of ornamentation not exceeding 5 per centum of said total fiber weight of (I) wool, (2) reprocessed wool, (3) reused wool, (4) each fiber other than wool, when said percentage by weight of such fiber was 5 per Decision and Order R5 F.T.Ccentum or more, and (5) the aggregate of all other fibers. The respondents did falsify the consignee s declaration provided for in said Tariff Act of 1930 insofar as it related to the above items of information enumerated in this paragrph, in violation of Section 8 of the Wool Products Labeling Act of 1939 and Section 5 of the Federal Trade Commission Act.

PAR. 6. The acts and practices of 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 and practices, in commerce, under the Federal Trade Commission Act.

DECISION 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 New York Regional Offce 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; 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 signng 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 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 sixty (60) days, now in furher conformity with the procedure prescribed in Section 2.34(b) of its niles, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

Respondent Bagatelle International Ltd. is a corporation organ ized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of busi:less located at 1407 Broadway, N. , N.

BAGATELLE INTERNATIONAL LTD., ET AL. 27a 270 Decision and Order Respondents Sidney Weinstein and Irving Weinstein are officers of said corporation. They formulate, direct and control the acts, practices and policies of said corporation and their addresses are the same as that of said corporation.

Respondents are engaged in the business of manufacturing and distributing clothing in commerce.

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 respondent Bagatelle International Ltd., a corporation, its successors and assigns, and its officers, and Sidney Weinstein, individually and as an officer of said corporation, and Irving Weinstein, individually and as an officer of said corporation, and respondents' representatives, agents, and employees, directly or through any corporation, subsidiary, division or any other device, in connection with the introduction, delivery for introduction, manufacture for introduction, sale, advertising or offering for sale in commerce or the transportation or causing to be transported in commerce, or the importation into the United States of any wool product; or in connection with the sale, offering for sale, advertising, delivery, transportation or causing to be transported, of any wool product, which has been advertised or offered for sale in commerce; and in connection with the sale, offering for sale, advertising, delivery, transportation or causing to be transported, after shipment in commerce of wool products, as the terms "commerce" and "wool products" are defined in the Wool Products Labeling Act of 1939, do forthwith cease and desist from misbranding such products by:

I. Falsely and deceptively stamping, tagging, labeling or otherwse identifying such products as to the character or amount of the constituent fibers contained therein.

2. Failng 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. It is further ordered That respondents Bagatelle International Ltd. a corporation, its successors and assigns, and its officers, and Sidney Weinstein, individually and as an offcer of Bagatelle International Ltd., and Irving Weinstein, individually and as an offcer of Bagatelle International Ltd., and respondents' representatives, agents, and employees, directly or through any corporation, subsidiary, di"ision, or other device, do forthw:th cea. e and desist from: 271 EDERAL TRADE COMMISSION DECISIONS Dccision and Order 85 F. 1. Importing or participating in the importation of wool products into the United States except upon filing bond with the Secretary of the Treasury in a sum double the value of said wool products and any duty thereon, conditioned upon compliance with the provisions of the Wool Products Labeling Act of 1939.

It is further ordered That respondents notify, by registered mail each of their customers that purchased the wool products which gave rise to this complaint of the fact that such products were misbranded. It is further ordered That each individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment and his affiliation with a new business or employment. Such notice shall include each individual respondent' current business address and a statement as to the nature of the business or employment in which he is engaged, as well as a description of his duties and responsibilities.

It is fi.rther ordered That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions. It is further ordered That respondents notify the Commission at least thirty (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 dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. It is further ordered That respondents 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 manner and form in which they have complied with the order to cease and desist contained herein.