Boverman Fabrics, Inc

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I" THE MAlTER OF BOVERMAN FABRICS, IKC., ET AL.

CONSENT ORDER , ETC., I'S REGAR TO ALLEGED VIOLATIO?' OF THE FEDERAL TRADE COMMISSION AND WOOL PRODUCTS LABELI!'G ACTS Docket 9036. Complaint, June 24, 1975-Decis, May, 1976 Consent order requiring a Xew Yark City importr and distributor of fabrics, among other things to cea..,e misrepresenting the wool content of wool blend fabrics; and to notify its customers that the fabrics they have purchased were misbranded.

Appearances For the Commission: Jerr R. McDon/21d and Herbert S. Forsmith. For the respondents: Pro se.

COMPLAINT 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 Boverman Fabrics, Inc., a corporation, and Milton Boverman, 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 Act of 1939, and it appearing to the Commission that a proceeding by it in respect thereof would be in the puhlic intercst, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Boverman Fabrics, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Kew York, with its principal office and place business located at 252 West 38th St., Kew York New York. Respondent Milton Boverman 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 now, and for some time last past, have been engaged in the importation and sale of fabrics including but not limited to wool products.

PAR. 2. Respondents, now and for some time last past, have imported for introduction into commerce, introduced into commerce, transport- , distributed, delivered for shipment, shipped, offered for sale, and Complaint 87 F.

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, 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 otherwise identified hy respondents as "55% polyester, 45% 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 further mishranded 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 Laheling 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 , (2)exceeding 5 per centum of said total fiber weight, of (1) wool reproeessed 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 a11 other fibers.

PAR. 5. 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 constitut- , and now constitute, unfair methods of competition and unfair and deceptive acts and practices, in or affecting commerce, under the Federal Trade Commission Act, as amended.

PAR. 6. Respondents are now and for some time last past have been engaged in the importation, offering for sale, sale, and distribution of certain products, namely fabrics. In the course and conduct of their business as aforesaid, respondents now cause and for some time last past, have caused their said products, when sold, to be shipped from their place of business in the State of New York to purchasers located in various other States of the United States, and maintain and at a11 times mentioned herein have maintained, a substantial course of trade in said products in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, as amended. BOVERMAN FABRICS, INC., ET AL. 127 1255 Decision and Order PAR. 7. Respondents in the course and conduct of their business have made statements on invoices to their customers, misrepresenting the fiber content of certain of their products. Among such misrepresentations, but not limited thereto, were statements setting forth the fiber content thereof as "55% polyester 45% wool" whereas, in truth and in fact, said products contained substantially different fibers and amounts of fibers than represented. PAR. 8. The acts and practices set out in Paragraph Seven have the tendency and capacity to mislead and deceive the purchasers of said products as to the true content thereof.

PAR. 9. The aforesaid acts and practices of the respondents as herein alleged in Para6'Taph Seven were, and are, all to the prejudice and injury of the public, and constituted, and now constitute, unfair and deceptive acts or practices in or affecting commerce, within the intent and meaning of the Federal Trade Commission Act, as amended. DECISION AND ORDER The Commission having heretofore issued its complaint charging the respondents named in the caption hereof with violation of Section 5 of the Federal Trade Commission Act, as amended, and the Wool Products Labeling Act of 1939, and the respondents having been served with a copy of that complaint; and The Commission having withdrawn the matter from adjudication for the purpose of considering settlement by the entry of a consent 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, a statement that the sihrning of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as set forth in such complaint, and waivers and other provisions as required hy the Commission s 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 procedures prescribed in Section 3.25(d) of its Rules, the Commission hereby makes the following jurisdictional findings, and enters the following order. 1. Respondent Boverman Fabrics, 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 221 West 36th St., New York, )Jew York. 216-969 O- LT - 77 - EO Dccision and Order 87 F. Respondent Milton Boverman 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 sct forth. His address is the same as that of the corporate respondent.

2. The Federal Trade Commission has jurisdiction of thc subject matter of this proceeding and of the respondents, and the proceeding is in the public intercst.

ORDER It is ordered That respondents Boverman Fabrics, Inc., a corporation, its successors and assigns, and its officers, and Milton Boverman individually and as an officer of said corporation, and respondents' representatives, agents, and employces, directly or through any 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, dclivery 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:

1. 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 Boverman Fabrics, Inc., a corporation, its successors and assigns, and its officers and Milton Boverman, individually and as an officer of said corporation, and respondents ' representatives, agents, and employees, directly or through any corporate or other device, in connection with the importing, advertising, offering for sale, sale or distribution of fahrics in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, as amended, do forthwith cease and desist from misrepresenting such products on invoices or shipping memoranda applicable thereto, or in any other manner. It is further ordered That respondents mail a copy of this order by registered mail to each of their customers that purchased the wool products which gave rise to this complaint. It is further ordered That the individual respondent named herein promptly notify the Commission of each change in business or employment status, which includes discontinuance of his present BOVERMAN FABRICS, INC., ET AL. 129 1255 Decision and Order business or employment and each affiliation with a new business or employment, for ten (10) years following the effective date of this order. Such notice shall include respondent's current business address and a description of the business or employment in which he is engaged as well as a description of his duties and responsibilities. The expiration of the notice provision of this paragraph shall not affect any other obligations arising under 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 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 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.