Daby'S Furniture Corp

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IK THE MATTER OF DABY' S Ft.RNITURE CORP., ET AL.

CONSENT ORDER, ETC., IN RBGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSIOK ACT Docket C-2801. Complm:nt, Mar 1976-Decision, Mat. R, 1976 Consent order requiring anew Yark City seller and distributor of furniture and home appliances, among other things where sales presentations have been made in whole or in part in Spanish, to cease failing to furnish buyers with Spanish language translations of contracts, agreements or other documents used in connection with retail credit sales. Further, respondents are required to prominently display in-store notices of customers' right to receive all necessary documents in both Spanish and English.

Appearan.es For the Commission: Sandra L. Bird. For the respondents: Pro se.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and by virtue of the authority vested in it by said Act, the Federal Trade Commission having reason to believe that Daby s Furniture Corp., a corporation, and Felix Ortiz, individuaUy and as an offcer of said corporation, have violated Section 5 of said 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 foUows:

PARAGRAPH 1. Respondent Daby s Furniture Corp. 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 560 West 207th St., New York, New York. Respondent Felix Ortiz is an individual and an offcer of said corporate respondent. He fornmlates, directs and controls the policies acts and pracUces of the corporate respondent, including those hereinafter set forth. His business address is the same as that of the corporate respondent.

PAR. 2. Respondents are now, and for some time last past have been engaged in the advertising, offering for sale, sale and distribution to the public of furniture and home appliances. PAR. 3. In the course and conduct of their business as aforesaid respondents have engaged in and are now engaged in commerce or their practices affect commerce, as "commerce" is defined in the Complaint 87 F.

Federal Trade Commission Act, as amended. Respondents purchase for resale furnitUle and home appliances from suppliers located in various States of the United States. Respondents cause these products, when purchased by them, to be transported from the place of manufacture or purchase to their business establishment located in New York. In addition, respondents have disseminated and have caused to be disseminated advertisements concerning said products in newspapers and radio broadcasts of interstate circulation. Said advertisements have been disseminated for the purpose of inducing the purchase of respondents' merchandise.

PAR. 4. In the course and conduct of their business as aforesaid, and for the purpose of inducing consumers who only speak, read, write or understand Spanish or whose predominant language is Spanish to purchase their products, respondents have disseminated and have caused to be disseminated, in commerce, advertisements in the Spanish language and have caused, in a substantial number of instances, their sales personnel to conduct oral sales presentations to such consumers in the Spanish language.

PAR. 5. In the further course and conduct of their business as aforesaid, and for the purpose of faciltating the purchase of their merchandise, respondents regularly extend credit or arrange for credit to be extended to retail purchasers.

PAR. 6. In the further course and conduct of their business as aforesaid, respondents fail to provide customers who only speak, read write or understand Spanish, or whose predominant language Spanish, with a complete and accurate translation in Spanish of the retail installment contract prior to the execution of the same. PAR. 7. Respondents' failure to provide customers who only speak read, write or understand Spanish or whose predominant language is Spanish, with a full and complete translation in Spanish of the retail installment contract, prior to the execution of the same, deprives a substantial number of Spanish-speaking consumers, many of whom have been induced to deal with respondents as a result of respondents advertisements or sales presentations in Spanish, of the opportunity to receive full and adequate disclosure of the terms and conditions of the agreement they are about to enter into and of their rights and obligations thereunder.

Therefore, the acts and practices of respondents, as set forth in Paragraph Six hereof, were and are unfair, misleading and deceptive. PAR. 8. In the course and conduct of their aforesaid business, and at all times mentioned herein, respondents have been and are now in substantial competition, in commerce, with corporations, firms and DARY' S FCRNITURF: CORP., ET AL. 391 389 Decision and Order individuals in the sale of furniture, home appliances and other products of the same general kind and nature as those sold by respondents. PAR. 9. The aforesaid acts and practices of the respondents, as herein alleged, were and are all to the prejudice and injury of the public and of respondents' competitors and constituted, and now constitute unfair methods of competition in or affecting commerce and unfair and deceptive acts and practices in or affecting commerce, in violation of Section 5 of the Federal Trade Commission Act. 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 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; 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 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 thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Act, 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 fot a period of sixty (60) days, and having duly considered the comments fied thereafter pursuant to Section 2.34 of its Rules, 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 Daby s Furniture Corp. 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 560 West 207th St., New York, New York.

Respondent Felix Ortiz is an offcer of said corporation. He formulates, directs and controls the policies, acts and practices of said corporation, and his principal office and place of business is located at the above-stated address.

392 FEDERAL TRAD COMMISSION DECISIONS Decision and Orner 87 F. 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 Daby s Furniture Corp., a corporation, its successors and assigns and its officers, and Felix Ortiz individually and as an offcer of said corporation, and respondents agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale, and distribution of furniture, home a appliances or of any other products and services in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, as amended, do forthwith cease and desist, in connection with credit sales in which the sales presentation has been conducted in whole or in part in Spanish, from:

1. Failing to furnish consumers executing any contracts, agreements or other documents in connection with such sales, a complete and accurate translation in Spanish of each such writing, prior to the execution of the same.

2. Failing to furnish consumers ",oth complete and accurate translations in Spanish of any other documents, notices or disclosures normally provided to consumers in connection with respondents' credit sales at the time of the transaction.

Provided, however That nothing in this order shah be understood to apply to sales receipts or other documents which serve merely as a memorandum of sale and do not, in themselves, contain convenants disclaimers or other provisions defining the rights and responsibilties of the parties.

Further provided That respondents must comply with subparagraphs 1 and 2 of this order by providing consumers either with: a. bilingual documents containing al1 the provisions and disclosures in both English and Spanish, or b. separate documents containing complete and accurate translations in Spanish of each English language document. It is further ordered That respondents prominently display, in at least two different locations on their premises, one of them being the location where customers usually execute consumer credit instruments or other legally binding documents, the following notice, in Spanish: NOTICE TO SPANISH SPEAKING CUSTOMERS IF YOU ARE A SPA ISH-SPEAKI G CCSTOMER A D THE SAL S PRES- ENTATION WAS MADE, IN WHOLE OR I PART I SPANISH, YOC ARE DABY' S FURKITCRE CORP.. ET AL. 393 389 Decision and Order EKTITLED TO RECEIVE A SPANISH TRANSLATION OF THE CREDIT cm,TRACT AND OF THE OTHER DOCUMENTS RELATED TO THE FINANC- ING OF YOUR PCRCHASE BEFORE YOU SIGN ANYTHING. DO NOT SIGN ANY DOCUMENTS UNTIL YOC HAVE RECEIVED AND READ THE SPANISH TRA SLA TIO It is further ordered With respect to each account in which translations in Spanish are provided, as required herein, that respondents shall maintain in their files, for a period of two years, statements signed by respondents' customers acknowledging receipt of such translations.

It is further ordered That respondents deliver a copy of this order to cease and desist to all operating divisions and to all present and future personnel of respondents engaged in malGng sales presentations and in the consummation of any consumer credit transactions. 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 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 upon the discontinuance of his present business and of his affiiation 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 no provision of this order shall be construed in any way to annul, invalidate, repeal, terminate, modify or exempt respondents from complying with agreements, orders or directives of any kind obtained by any other agency, or act as a defense to actions instituted by municipal or State regulatory agencies. provision of this order shall be construed to imply that any past or future conduct of respondents complies with the rules and regulations , or the statutes administered by the Federal Trade Commission. It is further ordered That the respondents herein shail 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. 215- 969 O- LT - 77 - 26 Complaint 87 F.