Mitsui & Co., Inc

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IN THE MATTER OF MITSUI & CO. (U. ), INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND WOOL PRODUCTS LABELING ACTS Docket C-'27.46. Complaint, Oct. 197. Decision, Oct. , 1975 Consent order requiring a New Yark City importer and seller of fabrics including but not limited to wool products, among other things to cease falsely or deceptively misbranding or mislabeling its wool products and to notify those who purchased the misbranded wool products of the fact that they were misbranded.

Appearances For the Commission: Judith K. Braun. For the respondent: Joseph Barbash, Debevoise, Plimpton, Lyons & Gates New York City.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Mitsui & Co. (U. ), Inc., a corporation, hereinafter referred to as respondent, has violated the provisions of said Acts and MITSUI & CO. (U. ), INC.

970 Complaint 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 PARAGRAPH 1. Respondent Mitsui & Co. (U. A.), Inc. is afollows: corporation organized, existing and doing business under and by virtue of the laws of the State of New York with its offce and principal place of business located at 200 Park Ave., New York, N. Respondent is engaged in the importation and sale of fabrics including but not limited to wool products. PAR. 2. Respondent, now and for some time past, has 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 respondent 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 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 respondent as "70% polyester, 30% reprocessed wool/' 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 furher misbranded by respondent in that they were not stamped, tagged, labeled or otherwse 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 wool fabrics, with labels on or affixed 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. The acts and practices of respondent 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 :.fi;: FEDERAL TRADE COMMISSION DECISIONS Decision. and Order 86 F. 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 respondent named in the caption hereof, and the respondent 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 respondent with violation of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939; and The respondent and counsel for the Commission having thereafter 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 admission by respondent 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 respondent has violated 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 further conformity with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Mitsui & Co. (U. ), Inc. is a corporation organized existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 200 Park Ave., New York, N.Y. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered That respondent Mitsui & Co. (U.S. ), Inc., a corporation, its successors and assigns, and its officers, and respondent's representatives, agents, and employees, directly or through any _.

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973 Decision and Order corporation, subsidiary, division, or any other device in connection with the introduction, or importing for introduction, 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, does forthwith cease and desist from misbranding such products by:

1. Falsely and deceptively stamping, tagging, labeling, or otherwise 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 respondent deliver a copy of this order by registered mail to each of its customers that purchased "THEO" fabrics from it during the period from Jan. 1 , 1973 to the effective date of this order.

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 respondent shall notify the Commission at least 30 days prior to any proposed change in its corporate status which may affect compliance obligations arising out of the order such dissolution, assignment or sale resulting in the emergence of successor corporations and that this order shall be binding on any such successor. 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 manner and form in which they have complied with this order.