Tarra Hall Clothes, Inc

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IN THE MATTER OF TARRA HALL CLOTHES, I:-C., ET AL.

COKSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATIO:- OF THE FEDERAL TRADE COMMISSIOJ- AI'D WOOL PRODUCTS LABELI ACTS Docket C-2797. Complaint, Feb. 24, 1975-Decision, Feb. 24, 1976 Consent order requiring a New York City importer of wool products and manufacturer and seller of wool clothing, among other things to cease misrepresenting the wool content of their clothing products and to notify their customers that the clothing they have purchased was misbranded. Further, the order prohibits them from importing wool products except upon filing a bond with the Secretary of the Treasury in a sum double the value of the products and any duty thereon. Appearances For the Commission: Jerr R. McDonald. For the respondents: Hahn, Margolies Ryan New York City. COMPLAI:-T Pursuant to the provisions of the Federal Trade Commission Act, as amended, 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 Tarra Hall Clothes, Inc., a corporation and Abraham Cohen, individually and as an officer 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 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 Tarra Have Clothes, 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 162 Fifth Ave., New York, New York. Respondent Abraham Cohen is an officer of the corporate respondent. He formulates, directs, and controls the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His 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 TARRA HALL CLOTHE:S. INC., ET AL. 295 291 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 Laheling 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 items of clothing stamped, tagged, labeled, or otherwise identified by respondents as "75% wool, 25% polyester " and "80% wool 20% polyester" 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 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 affixed thereto, which failed to disclose the percentage of the total fiber weight of the said wool products, exclusive of ornamentation not exceeding 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 centum or more, and (5) the aggregate of all other fibers.

PAR. 5. Respondents' wool products, namely wool fabrics from which respondents manufacture the garments described in Paragraphs Three and Four above, were imported by the respondents into the United States and, as particularized in said paragraphs, were not stamped tagged, labeled, 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 information \\ th respect to said wool products required under the provisions of the Wool Products Labeling Act of 1939, to \\ 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 cenium or more, and (5) the aggregate of all other fihers. The 296 FEDBRAL TRADE COMMISSION DECISIONS Decision and Order 87 F.T.C. 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 paragraph, 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, as amended.

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 K ew York Regional Office 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 signing of said agreement is for settement 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 further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the follo\ving jurisdictional findings and enters the following order:

1. Respondent Tarra Hall Clothes, Inc. is a corporation organized existing and doing business under and by virtue of the Jaws of the State of New York, with its office and principal place of business located at 162 Fifth Ave., New York, New York.

Respondent Abraham Cohen is an officer of said corporation. He YARRA HALL CLOTHES, INC., F,T AL. 297 294 Decision and Order formulates, directs and controls the acts, practices and policies of said corporation and his address is the same as that of said corporation. 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 Tarra Hall Clothes, Inc., a corporation, its successors and assigns, and its officers, and Abraham Cohen 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 manufacture 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, do forthwith cease and desist from misbranding such products by: I. Falsely and deceptively stamping, tagging, labeling or otherwise identifying such products.

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 Tarra Hall Clothes, Inc. , a corporation, its successors and assigns, and its officers, and Abraham Cohen, individually and as an offcer of Tarra Hall Clothes, Inc., 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 filing bond with the Secretary of the Treasury in a sum douhle the value of said wool products and any dut.y thereon, conditioned upon compliance with the provisions of the Wool Products Labeling Act of 19:9.

It ,:s 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 ;s jinther ordered 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 216-%9 O- LT - 77 - Decision and Order 87 F.TC. 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 f1cdher 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 jiLrther 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. (;

FOX & LENKOFSKY . II'C., ET AL. 299 299 Complaint