Fox & Lenkofsky, Inc

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IN THE MATTER OF FOX & LENKOFSKY, INC., ET AI,.

CO:-SEI'T ORDER , ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSIO" AND FUR PRODUCTS LABELING ACTS Docket 2798. Complaint, Feb. 2.4, 197C-Decision, Feb. 24, 1976 Consent order requiring a New York City manufacturer and distributor of fur garments, among other things to cease mislabeling and falsely invoicing its dyed fur garments as "color added; " and failing to correctly set forth on labels and invoices the information required by the Fur Products Labeling Act. Appearances For the Commission: Jerry R. McDonald. For the respondents: Pm se.

CO:lplaint Pursuant to the provisions of the Federal Trade Commission Act, as amended, and the Fur Products Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that Fox & Lenkofsky, Inc., a corporation, and :vurray Lenkofsky and Morrs Fox, individually and as officers uf 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 in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH L Respondent Fox & Lenkofsky, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its principal office and place of business located at 352 Seventh A ve., New York, New York. Respondents Murray Lenkofsky and Morrs Fox are officers of the corporate respondent. They formulate, direct and control the policies including thoseacts and practices of the corporate respondent hereinafter set forth. Their address is the same as that of the corporate respondent.

Respondents are now, and for some time last past have been engaged in manufacturing and distributing fur garments. PAR. 2. Respondents are now, and for some time last past have been engaged in the introduction into commerce, and in the manufacture for introduction into commerce, and in the sale, and offering for sale in 300 FEDERAL TRADE COM ISSION DECISIO:\S Decision and Order 87 F. commerce, and in the transportation and distribution in commerce, of fur products; and have manufactured for sale, sold, 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 commerce, as the terms "commerce fur" and "fur product" are defined in the Fur Products Labeling Act.

PAR. 3. 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 to disclose that the fur contained in the fur products was dyed when such was the fact.

PAR. 4. Certain of said fur products were misbranded in that they were falsely and deceptively labeled to show that fur contained therein was color added, when in fact such fur was dyed, in violation of Section 4(1) of the Fur Products Labeling Act.

PAR. 5. Certain of said fur products were falsely and deceptively invoiced by the 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 under such Act.

Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products covered by invoices which failed to disclose that the fur contained in the fur products was dyed when such was the fact.

PAR. 6. The aforesaid acts and practices of respondents, as herein alleged, 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, as amended. DECISION A:-D 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 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, as amended, and the Fur 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 FOX & LE:-KOFSKY, INC.. ET AL. 301 299 Decision and Order 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 following jurisdictional findings and enters the following order:

I. Respondent Fox & Lenkofsky, 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 352 Seventh Ave., Now York, New York.

Respondents Murray Lenkofsky and Morrs Fox are offcers of said corporation. They formulate, direct and control the acts, practices and policies of said corporation and their 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 the respondents Fox & Lenkofsky, Inc. , a corporation, its successors and assigns, and its officers, and Murray Lenkofsky and Morris Fox, individually and as offcers of said corporation, and respondents' representatives, agents and employees directly or through any corporation, subsidiary 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; or in connection with the introduction into commerce, or the transportation or distribution in commerce, of any fur, as the terms commerce fur" and !'fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from: A. Misbranding any fur product by:

:J02 FEDSRAL TRADE COMMISSION DFCISIOI'S Decision and Order H7 FTC.

1. Failing to affix a label to such fur product showing in words and in figures plainly legible all of the information required to be disclosed by each of the subsections of Section 4(2) of the Fur Products Labeling Act.

2. Representing directly or hy implication on a label that the fur containedB. Falselyin such fur orproductdeceptivelyis color addedinvoicingwhen fur products by:such fur is dyed. 1. Failing to furnish an invoice, as the term "invoice" is defined in the Fur Products Laheling Act, showing in words and figures plainly legible all the information required to be disclosed by each of the subsections of Section 5(b)(l) of the Fur Products Labeling Act. 2. Representing, directly or by implication, on an invoice that the fur contained in such fur product is color added when such is dyed. It is further ordered That each 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 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 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 emerg-ence of a successor corporation, the creation Of dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. It is fwther 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 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. "CARPET, " R" CS. IKC.. ET AL. :IO:J :30:-; Complaint