Grand Furs LTD

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IN THE MATTER OF GRAND FURS LTD., ET AI..

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND FUR PRODUCTS LABELING ACTS Docket C-2654. Complaint, Apr. ii 975 - Decision, Apt. , 197.1 Consent order requiring a Las Vegas, Nev, furrier, among other things to cease misbranding and fah;ely invoicing its fur produds. Appearances For the Commission: Gerald E. Wright. For the respondents: John Peter Lee, Lee Beasey, Las Vegas, Nev. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Produds Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Grand Furs, Ltd., a corporation, and Harry Brown 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 Fur Products Labeling Act, 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 1. Respondent Grand Furs Ltd., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nevada, with its principal office and place of business located at 3645 Las Vegas Blvd., South, Las Vegas, Nev. Respondent Harry Brown is an officer of the corporate respondent. He formulates, directs and controls the acts and practices of the corporate respondent including those hereinafter set forth. His address is the same as that of the corporate respondent. PAR. 2. Respondents are retailers of fur products operating establishments at :J645 Las Vegas Blvd., S. Las Vegas, Nev., 3650 Las Vegas Blvd., S. Las Vegas, Nev. and 2901 Las Vegas Blvd., S. Las Vegas, N ev. The last two establishments operate under the name Harry Brown Furs.

PAR. 3. Respondents are now and for some time last past have been engaged in the introduction into commerce, and in the sale, advertising, and offering for sale in commerce, and in the transportation and Gl-(ANU l'lJho: L1IJ , 1:'1 H".

G7H Decision and Order distribution in commerce, of fur products; and have sold, advertised offered for sale, transported and distributed fur products which have been made in whole or in part of furs which have been shipped and received in commerce as the terms "commerce fur" and "fur product" are defined in the Fur Products Labeling Act. PAR. 4. Certain of said fur products were misbranded in that they were not labeled as required under the provisions of Section 4(2) of the Fur Products Labeling Act and in the manner and form prescribed by the rules and regulations promulgated thereunder. Among such misbranded fur products, but not limited thereto, were fur products with labels which failed:

1. To show the required name or RN number. 2. To show the true animal name of the animal or animals which produced the fur used in such fur product. 3. To disclose that the fur contained in the fur products was natural bJeachcd, dyed, or otherwise artifjcially colored, when such was the fact.

4. To disclose that the fur product was composed in whole or in substantial part of paws, tails, belles, sides, flanks, gils, ears, throats or heads, when such was the fact.

5. To disclose the country of origin of imported fur products- 6. To disclose the required fur information in a legible manner on one side of the label.

PAR. 5. Certain of said fur products were falsely and deceptively invoiced by respondents in that they were not invoiced as required by Section 5(b)(l) of the Fur Products Labeling Act and the rules and regulations promulgated thereunder.

Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products covered by invoices which failed: 1. To show the true animal name of the animal or. animals which produced the fur used in such fur product. 2. To disclose that the fur contained in the fur product was natural bleached, dyed or otherwise artificially colored, when such was the fact. PAR. 6. The aforesaid acts and practices of respondents as herein allegcd, are in violation of the Fur Products Labeling Act and the rules and regulations promulgated thereunder and constitute unfair methods of competition and unfair and deceptive acts and practices in commerce under the Federal Trade Commission Act.

DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereto with violation of the Fur Products Labeling Act and the rules and regulations Decision and Order 85 F . promulgated thereunder, and the Federal Trade Commission Act, and the respondents having been served with notice ' of said determination and with a copy of the complaint the Commission intended to issue together with a proposed form of order; 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 complaint to issue herein, 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 rules; and The Commission having considered the agreement-and having provisionally accepted same, and the agreement containing consent order having thereupon been placed on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order: 1. Respondent Grand Furs, Ltd., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nevada, with its principal office and place of business located at 3645 Las Vegas Blvd., S. Las Vegas, Nev.

Respondent Harry Brown is an officer of said corporation. He formulates, directs and controls the policies, acts and practices of the corporation and his address is the same as that of corporate respondent.

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 Grand Furs, Ltd., a corporation, its successors and assigns, and its officers, and Harry Brown, individually and as an officer of said corporation, and respondents' agents, representatives and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the introduction, or manufacture for introduction, into commerce, or the sale, advertising or offering for sale in commerce, or the transportation or distribution in commerce, of any fur product; or in connection with the manufacture for sale, sale, advertising, offering for sale, transportation or distribution, of any fur product which is made in whole or in part of fur which has been shipped and received in commerce, as the terms "commerce l\.K.N li- Alntl LU.

681 Decision and Order fur" and "fur product" are defined in the Fur Products Labeling; Act do forthwith cease and desist from:

A. Mishranding any fur product by:

1. Failing to affix a label to such fur product showing in words and in figures plainly legible an of the information required to be disclosed by each subsection of Section 4(2) of the Fur Products Labeling Act. B. Falsely or deceptively invoicing any fur product by: 1. Failing to furnish an invoice, as the term "invoice" is defined in the Fur Products Labeling Act, showing in words or figures plainly legible an the information required to be disclosed by each of the subsections of Section 5(b)(I) of the Fur Products Labeling Act. It is further ordered That the respondent corporation shan forthwith distribute a copy of this order to each of its operating divisions. 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, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of this order.

It is further ordered That the individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment and of his affiliation with a new business or employment. Such notice shall include respondent' s 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 responsibilties.

It is further ordered That the respondents herein shan 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 this order.