Allora, LTD

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

IN Tile MATTER OF ALLORA, LTD., ET AI"

CONSENT ORDER ETC. IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND WOOL PRODUCTS LABELING ACTS Docket C-270.5. Con/plaint, July 1.975-Decision, July, 197, Consent order requiring anew York City importer of wool fabrics, among other things to discontinue false and deceptive labeling; to notify those who purchased the misbranded wool products of the fact that they were misbranded; and prohibiting 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 the wool products and any duty thereon conditioned upon compliance with the Wool Products Labeling Act. Appearances For the Commission: Judith K. Braun. For the respondents: Ellsworth F. Qualey, New York City. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 19a9, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Allora Ltd., a corporation, trading under its own name or as A1lora- Tex, and Oscar Bobis, individual1ly and as an offcer of said corporation, hereinafter 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 in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Allora Ltd. is a corporation organized existing and doing business under and by virtue of the Jaws of the State 2H4 FEDERAL TRADE COMMISSION DECISIONS Complaint 86 !".C.

of New York, with its office and principal place of business located at 450 Seventh Ave., New York, N.

Individual respondent Oscar Bobis is an officer of Anora Ltd. He formulates, directs, and controls the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His business address is the same as that of the corporate respondent. Respondents are engaged in the importation and sale of fabrics including but not limited to wool products. PAIL 2. Respondents, now and for some time past, have imported 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, laheled, or otherwise 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 wool fabrics stamped, tagged, labeled, or otherwse identified by respondents as "30% acrylic, 25% wool, 2:J% cotton, 22% man made fibers " 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 misbranded 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 prescrihed hy the rules and regulations promulgated under said Act. Among such misbranded wool products, but not limited thereto, were wool products, namely wool fabrics, 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 described in "Paragraph Four above were imported by the respondents into the United States and, as particularized in said paragraph, were not stamped, tagged, laheled or otherwise identified 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 28:3 Decision anu Order 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 fibcr weight of the said wool products, exclusive of ornamentation not excecding 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 aggregatc of all other fibers. The respondents did falsify the consignee s declaration provided for in said Tariff Act of 19:10 insofar as it related to the above items of information enumerated in this paragraph in violation of Section 8 of the Wool Products Labeling Act of 1939 and Section 5 of thc 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 Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereto with violation of the Federal Trade Commission Act and the Wool Products Labeling 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 docs 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 prescrihed 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 Allora Ltd., trading under its own name or as Allora- Tex, is a corporation organized, existing and doing business under and 2Ho FEm;RAL TRADE COMMISSION DECISIONS Decision and Order Sli F. by virtue of the laws of the State of New York, with its office and principal place of business located at 450 Seventh Ave., New York, N. Respondent Oscar Dobis is an officer of said corporation. He formulates, directs and controls the acts, practices and policies of said corporation and his address is the same as that of said corporation. Respondents are engaged in the importation and sale of wool products including but not limited to wool fabrics. 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 Allora Ltd., a corporation, trading under its own name or as AHora-Tex, its successors and assigns, and its officers, and Oscar Bobis, individually and as an offcer 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, or importing for introduc tion, into commerce, or the offering for sale, sale, transportation distribution, delivery for shipment or shipment, in commerce, of wool products, as "commerce" and "wool product" are defined in the Wool Products Labeling Act of 1939, do forthwith cease and desist from mishranding such products by:

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

2. Failing 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 Allora Ltd., a corporation, trading under its own name or as Allora Tex its successors and assigns, and its officers, and Oscar Dobis, individually and as an officer of Allora Ltd., and respondents' representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, do forthwith cease and desist from importing or participating in the importation of wool products into the United States except upon filng 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 delivery of a copy of this order by registered mail, each of their customers that 287 Decision and Order purchased the products which gave rise to this complaint of the fact that such products were misbranded.

IT IS FURTHER ORDF,RED, That the 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 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 responsibilities.

IT IS FURTHF,R 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 suhsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. IT IS FIJRTIIF,R 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.