Cezar, LTD

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IN THE MATTER Of CEZAR, LTD, ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSIO:\' AND TEXTILE HBER PRODUCTS IDENTIHCA TIO?\ ACTS Docket C-287J. Complaint, Mar. f4 1977 - Decl ,;ion, Mar. 1.. 1977 Consent order requiring a :\ew Yori( City importer and manufacturer of roen s and boys' shirts, among other things to cease violating the Textile Fiber Products Identification Act by misbranding textile fiber products and faili!'_ !TJ2\intain reql,ired recurds Appearances For the Commission: Nlartin Connan.

For the respondents: Prose.

CO:,1PLAl:'';T Pursuant to ihe provl::iol1S of the Federal Trade Commission !-\ct, aB amended, and the Textile Fiber Products Identification Act and by virtue of the authoyity vested in it by said Acts, the :Federal Trade Commission, having reason to behove that Cezar, Ltd., a corporation, and \i1lilliarn Arnold, individually and as an officer of said corporation, hereinafter ,ometimcs n;)-8:croo to as respondents, have violated the provisions of sa.id Acts and the rules and regulations promulgated under the Textile F''iber Products Identification Act, and it no\V appearing to the Commiss.:ioll that a proceeding by it in re ipect thereof would be in the public iJl erest hereby i sues it; complaint stating its charges in that respect as followf): PARAGRA H 1. "Respondent Cezar, Ltd. is a corporation organized existing and doing business under and by virtue of the lavvs of the place of businessState of New York, with its office and principal located at 232 IvTaclison A'l8. , New York, 1\ ew York, Respondent V\/iJhanl Arnold 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. R.cspondents are now, and for some time last past have been, productsengaged in the importation and sale of textile fiber including but not limited to men s shirts. PAR. 2. Respondents are now and for some time past have been engaged in the introduction, sale, advertising, and offering for sale, in commerce, and in the transportation OT causing to be transported in :J3- 13" 0 - 77 - 1' Complaint 89 F.

commerce, of textie fiber products; and have sold, offered for sale advertised, delivered, transported and caused to be transported, textile fiber products which have been advertised or offered for sale in commerce, and have sold, offered for sale, advertised, delivered transported, and caused to be transported after shipment in commerce, textile fiber products as the terms "commerce" and "textile fiber product" are defined in the Textile Fiber Products Identification Act.

PAR. 3. Certain of said textile fiber products were misbranded by respondents within the intent and meaning of Section 4(a) of the Textile Fiber Products Identification Act and the rules and regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, invoiced, advertised, or otherwise identified as to the name or amount of the constituent fibers contained therein.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products, namely men s shirts, stamped tagged, labeled or otherwise identified by respondents as "polyester and cotton" whereas in truth and in fact, said products contained polyester and rayon.

PAR. 4. Certain of said textile fiber products were misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified as required under the provisions of Section 4(b) of the Textile Fiber Products Identification Act, and in the manner and form as prescribed by the rules and regulations promulgated under said Act.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products, namely men s shirts, with labels which failed:

1. To disclose the true generic names of the fibers present; and 2. To disclose the percentage of such fibers by weight. PAR. 5. Certain of said textie fiber products were misbranded by respondents in that fiber trademarks were placed on labels without the generic names of fibers appearing on such labels in immediate conjunction therewith, in violation of Rule 17(a) of the rules and regulations promulgated under the Textile Fiber Products Identification Act.

PAR. 6. Respondents have failed to maintain and preserve proper records showing the fiber content of textile fiber products manufactured by them, in violation of Section 6(a) of the Textie Fiber Products Identification Act and R" 39 of the rules and regulations promulgated thereunder.

PAR. 7. The acts and practices of respondents as set forth above 169 Decision and Order were, and are, in violation ofthe Textile Fiber Products Identification Act and the rules and regulations promulgated thereunder, and constituted, and now constitute, unfair and deceptive acts and practices and unfair methods of competition in or affecting commerce within the intent and meaning of 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 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 Textile Fiber Products Identification Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of a1l 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 s 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 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: 1. Respondent Cezar, Ltd. is a 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 232 Madison Ave., New York, New York.

Respondent William Arnold is an offcer of the corporate respondent. He formulates, directs, and controls the acts and practices of the corporate respondent and his address is the same as that of the corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subject Decision and Order 89 F.TC. matter of this proceeding and of the respondents and the proceeding is in the public interest.

ORDER It is ordered That respondents Cezar, Ltd., a corporation, its successors and assigns and its offcers, and William Arnold, 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, !3ale, advertising or offering for sale in commerce, or the transportation or causing to be transported in commerce, or the importation into the United States of any textile fiber product; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, of any textile fiber product which has been advertised or offered for sale in commerce; or in connection with the sale, offering for sale, advertising, delivery, transportation or causing to be transported, after shipment in commerce of any textile fiber product, as the terms "commerce" and textile fiber product" are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from: 1. Misbranding textile fiber products by: a. falsely or deceptively stamping, tagging, labeling, invoicing or otherwise identifying such products as to the name or amount of the constituent fibers contained therein;

b. failing to affix a stamp, tag, label or other means of identification to each such product showing in a clear, legible and conspicuous manner each element of information required to be disclosed by Section 4(b) of the Textile Fiber Products Identification Act; c. using a fiber trademark on labels affixed to textile fiber products without the generic name of the fiber appearing in immediate conjunction therewith in type or lettering of equal size and conspicuousness.

2. Failing to maintain and preserve proper records of fiber content of textile fiber products manufactured by respondents, as required by Section 6(a) of the Textile Fiber Products Identification Act and Rule 39 of the Rules and Regulations promulgated thereunder.

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 ofthe order. 169 Decision and Order It 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 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 tbe notice provisions of this paragraph shall not affect any other obligations arising under this It is further ordered. That the respondents herein shall within sixtyorder.(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. Order 89 FTC.