Bayleysuit, Inc

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IN THE MATTER OF BAYLEYSUIT, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-.'JJ1Z Complaint, Sept. 30, 1983-Decision, Sept. 30, 1983 This consent order requires the Fortuna, Calif manufacturer of the Bayley exposure suit " among other things, to publish advertisements, send notices, and use its best effort to locate and notify users of the suits that the bladder hose assembly used to inflate the flotation pilow requires a safety modification. The manufacturer must send to each BayleySuit user who requests it, a retrofit kit, together with understandable instructions to permit easy repair of the suit. If, by July 15, 1983 80% of Bayley Suit users have not requested a retrofit kit, the manufacturer must search dealer records, ship registeries and listings, and the rolls of fishermen unions to obtain the names and addresses of retail purchasers, so they can be notified by letter of the safety hazrd and provided with a repair kit request card. Further, the order prohibits false representations concerning the buoyancy or safety of the Bayley exposure suit or any other product. Appearances For the Commission: Dennis D. McFeely. For the respondent: Richard D. Warren, Landels, Ripley Diamond San Francisco, Calif.

COMPLAINT The Federal Trade Commission, having reason to believe that BayleySuit, Inc. has violated Section 5 of the Federal Trade Commission Act and that an action is in the public interest, therefore issues this complaint and alleges:

1. For purposes of this complaint, the following definitions shall apply;

Bayley exposure suit means a suit manufactured before June, 1980 by BayleySuit, Inc., with a flotation pilow attached, made of flexible buoyant material completely enclosing the body (except for the face) and designed for emergency use to increase the chance of survval in cold water.

User means any business or individual who owns or possesses a Bayley exposure suit for any purpose other than resale. Flotation pillow means an inflatable bladder attached to the upper Complaint 102 F.

back of a Bayley exposure suit so that, when inflated, the suit wearer head and shoulders are elevated out of the water. Bladder hose assem bly means a two-piece tube used to orally inflate the flotation pillow.

2. Respondent BayleySuit, Inc. is a California corporation with its principal offce and place of business at 900 S. Fortuna Boulevard, Fortuna, California.

3. Respondent is, and has been, engaged in the sale of substantial quantities of Bayley exposure suits.

4. In the course and conduct of its business, respondent has caused the exposure suits to be transported from its place of business in Fortuna, California to users and retailers located in various other States of the United States. Respondent maintains and at all times relevant herein has maintained a substantial course of trade in those products in or affecting commerce, as cCcommerce" is defined in the Federal Trade Commission Act.

5. For the purpose of inducing the purchase of Bayley exposure suits, respondent has made or has caused to be made, in advertising and promotional materials, certain statements and representations about the Bayley exposure suits of which the following are typical: YOU WANT THE BEST. SAFEST PROTECTION AVAILABLE, RIGHT'! INSURE YOUR SAFETY WITH QUALITY MORE BUOYANCY FLOTATION BLADDER (MORE FREEBOARD) 6. Through the use of these and other similar statements and representations, and by offering Bayley exposure suits for sale as a product fit for the purpose of improving the chance of survival in cold water respondent has represented directly or by implication that Bayley exposure suits wil consistently and safely support the head and shoulders out of the water, thereby substantially diminishing the likelihood of drowning.

7. In truth and in fact the Bayley exposure suits would not consistently and safely support the head and shoulders out of the water. Due to the design of the bladder hose assembly, the flotation pilow which provides the support for the head and shoulders would not consistently remain inflated in actual use, substantially increasing the likelihood of drowning. Therefore, these statements and representations were false, misleading, and deceptive.

8. Respondent' s false statements and representations have had the capacity and tendency to mislead potential users into the mistaken belief that the statements and representations were true and to induce the purchase of such products by virtue of the said mistaken belief. Respondent has therefore engaged in unfair and deceptive acts 1285 Decision and Order or practices in or affecting commerce in violation of Section 5 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 respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the Seattle Regional Offce proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act; and The respondent, its attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent 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 respondent 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 respondent has 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 BayleySuit, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California, with its offce and principal place of business located at 900 S. Fortuna Blvd., in the City of Fortuna, State of California. 2. The Federal Trade Commission has jurisdiction of the subject matter ofthis proceeding and of the respondent, and the proceeding is in the public interest.

ORDER For purposes of this Order, the following definitions shall apply: Bayley exposure suit shall mean a suit manufactured before June 1, 1980 by BayleySuit, Inc., with a flotation pilow attached, made of flexible buoyant material completely enclosing the body (except for Decision and Order 102 F. the face) and designed for emergency use to increase the chance of survival in cold water.

User means any business or individual who owns or possesses a Bayley exposure suit for any purpose other than resale. Flotation pillow means an inflatable bladder attached to the upper back of a Bayley exposure suit so that, when inflated, the suit wearer head and shoulders are elevated out of the water. It is ordered, That respondent BayleySuit, Inc., a corporation, its successors and assigns, and its offcers, agents, representatives, and employees, directly or through any corporation, division, or other device, in connection with the manufacture, advertising, offering for sale, sale or distribution of any Bayley exposure suit or any other product, in or affecting commerce, as Hcommerce" is defined in the Federal Trade Commission Act, as amended, shall forthwith cease and desist from representing, directly or by implication, that the product wil ensure buoyancy or is safe to use unless such is the case. II.

It is further ordered That respondent, its successors and assigns shall:

A. Publish advertisements, send notices, and use its best efforts to locate and notify users that Bayley exposure suits need a safety modification of the bladder hose assembly on the flotation pillow; B. Mail to each Bayley exposure suit user who requests it, a retrofit kit, accompanied by easily understandable modification instructions suffcient to modify the bladder hose assembly in a manner approved by the U.S. Coast Guard;

C. If requests for modification kits have not been received by July , 1983 from the users of at least eighty percent of Bayley exposure suits:

1. Respondent shall use its best efforts to obtain directly from past and present dpalers the names and addresses of all Bayley exposure suit retail purchasers. Respondent may obtain these names from dealers in whatever sequence and manner it chooses, but it wil continue the process until the names and addresses of at least eighty percent of the above-described suit retail purchasers are obtained. This process shall be completed no later than November 30, 1983; and 2. After July 15, 1983, respondent shall, within 15 days ofidentification of any retail purchaser, send Attachments A and B by first class 1285 Decision and Order mail to that retail purchaser at his or her last known address. "IM- PORTANT SAFETY NOTICE" shall be conspicuously placed on the front of the envelope;

D. Within 10 days of the return of each mailing of Attachments A and B marked by the Post Offce as undeliverable, respondent will search for the current address ofthe addressee of each returned mailing. This search shall include contacting relevant ship registries and listings, and fishermen s unions;

E. Within 10 days of locating a new address through the search required by II. , remail Attachments A and B in the manner required by II. 2 of this Order to each retail purchaser for whom a new address is found.

III.

It is further ordered That respondent maintain complete records of the nature of its compliance with this Order including: 1. The names, addresses, and dates of mailing of all notices required by this Order, and 2. The names, addresses, and dates of mailing of all modification kits required to be sent by this Order.

IV.

It is further ordered That respondent notify the Commission at least 30 days prior to any proposed change in the respondent such as dissolution, merger, 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 within 60 days after service upon it of this Order, respondent shall fie with the Commission a written report setting forth in detail the manner and form in which it has complied with this Order.

Decisi9ll and Order 102 F. ATTACHMENT A lCOMPANY LETTERHEAD) .. VERY IMPORTANT ..

SAFETY HAZARD NOTICE Dear BayleySuit Customer:

According to our records, you purchased a Bayley Exposure Suit made between August 1977 and June 1980.

We wish to inform you that a safety hazard may exist in some models of our exposure suits manufactured before June 1980. BayleySuit has received reports that in some suits made before June 1980, the bladder hose assembly, which inflates the suit' flotation pilow, has separated. This separation would prevent inflation ofthe flotation pillow, which when inflated helps keep the head and shoulders above water. We have developed a free modification kit to fix this problem and eliminate the safety hazard. To see if your suit needs this modification, look inside the suit for a white label that looks like this:

Exposure Suit BayleySuit, Inc.

900 S. Fortuna Blvd.

Fortuna, CA 95540 Model: 7-DI-04 Serial: 1-23-5 Date: 1-15-78 If the date shows that your suit was made before June 1980, please fill out and mail in the enclosed card or call us collect at (707) 725-3391. We wil send you a free easy to use kit for modifying the bladder hose. While examining your suit for the manufacturing date, we recommend that you use this opportunity to give your suit an overall examination. 1. Work all zippers and re-wax them with the pariffn provided. Store the suit with the front entry zip open so your suit wil be easier to put on. 2. Check for water damage, mildew, etc. Has the suit been stored in a dry place? Dry thoroughly, inside and out, before storage. 3. Inflate the Ootation pillow to 3/4 capacity. Be sure you know how to use it. 4. Give the suit a general inspection to assure it is in good working order. 5. Try the suit on . . . Do a practice drill. Be sure you are familiar with the suit. These simple checks wil ensure that your suit is safe and useful. We sincerely appreciate your cooperation, and look forward to serving you in the future. If you have any questions or concerns, do not hesitate to contact us. Sincerely, BA YLEYSUIT, INC.

Susan Forbes President Enclosures 1285 Decision and Order ATTACHMENT B Customer Response Card Decem ber, 1982 I have received your information on the modification kit available for my Bayley Exposure Suit. Please send the kit to the address below. Name Address Exposure Suit Serial # Date of Manufacture F/V or Company Sold to:

# of Kits needed BayleySuit, Inc.

O. BOX 487 FORTUNA, CALIFORNIA 95540 Complaint 102 F.