C. Itoh & Co., Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF C. ITOH & CO. (AMERICA), INC.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND WOOL PRODUCTS LABELING ACTS Doket C-2586. Decision, Oct. 22, 974-Modifying Order, July 7. 1980 This order modifies a previous order to cease and desist issued October 22, 1974 against a New Yark City importer and distributor of fabrics (84 F.'I. C. 1187 FR 6482). The Commission has modified the order by limiting the bond provision to recycled wool products only. The order previously required posting of a bond Dn all wool products imported. ORDER MODIFYING CEASE AND DESIST ORDER In its request fied on April 30, 1980, the respondent petitioned the Commission, pursuant to Section 2.5I of its Rules of Practice, to reopen the proceedings and modify the order of October 22, 1974, entered in Docket C-2586. Respondent asks that the second It is further ordered" paragraph be deleted from the order. The paragraph in question reads as follows:

It is further ordered. That respondent, C. Itah & Co. (America), Inc., a corporation its successors and assigns, and its officers, and respondent's 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 importtion of wool products into the United States except upon fiing bond with the Secretary of the Treasury in a sum double the value of said wool products and any duty thereon, conditioned upon compliance with the provisions of the Wool Products Labeling Act of 1939.

In support of its request, the respondent has advanced a number of considerations intended to show changed conditions of fact since the order was issued and to show that the public interest wil best be served by granting its request. It states that it has ensured that its imported wool products are correctly labeled by investigating the reputations of its overseas suppliers and purchasing only from those with an established record of exercising proper care and diligence in determining the fiber content of their merchandise and labeling it properly. As the result of its self-policing, it states that there have been no complaints with regard to the labeling of any of its importations of wool products in the five and one-half years that the order hils been in effect. The respondent advised Commission staff, by letter dated May 5, 1980, that it is no longer importing the Modifying Order reprocessed or reused wool products which gave rise to the complaint and is now importing wool and wool blend products.' It states further, that due to the high costs of the premiums charged by sureties on the bond, it can no longer hope to profitably continue to sell wool products. It cites as a competitive disadvantage the fact that many of its competitors are not subject to the bonding requirement and that bonds have not appeared in recent Commission orders under the Wool Products Labeling Act of 1939. By letter dated May 28, 1980, the respondent advised staff that it wil agree to a modification of the order to limit the bonding requirement to the wool products that gave rise to the complaint, recycled wool products. If the respondent resumes importing such products, the bond wil be applicable. It wil not, however, be required to continue to bear the financial burden of paying premiums to sureties on the wool and wool blend products that it is now importing.

Having considered the request, the Commission has concluded that the order should be modified to limit the bond provision recycled wool products and that the modification will safeguard the public interest. Therefore It is ordered, That the second It is further ordered paragraph of the order, set forth above, be replaced by the following new paragraph: It is further ordered, That respondent, C. Itoh & Co. (America), Inc., a corporation, its successors and assigns, and its officers, and respondent' s 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 recycled wool products into the United States except upon fiing bond with the Secretary of the Treasury in a sum double the value of said recycled wool products and any duty thereon conditioned upon compliance with the provisions of the Wool Products Labeling Act of I939.

It is further ordered, That the foregoing modification shall become effective upon service of this order.

I The Wool Prooucts Labeling Act of 1939 has ben amended to substitute the word " recycled" for the words reproceBed" and "reused" (Pub. Law 96 242 94 Stat. 344, May 5 1980, eff. .July 4 1980) 33fi- 34c. C - B", - l\ Complaint 96 F.