O'Neill, Incorporated

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IN THE MATTER OF NEILL, INCORPORATED CONSENT ORDER , ETC. , IN REGARD TO ALLEGED VIOLATION OF THE TEXTILE FIBER PRODUCTS IDENTIFICATIO:\ ACT AND SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket 3352. Complaint, Dec. 9, 1991-Decision, Dec. , 1991 This consent order requires, among other things, the California based company, d/b/a Onax, Inc. , to label or otherwise identify the constituent fiber content percentages of fiber content, manufacturer s name, and country of origin for their textile fiber products, as required by the Textile Fiber Products Identification Act. In addition, the order requires the respondent to distribute a copy of the order to each of its operating divisions.

Appearances For the Commission: Sylvia J. Kundig and Jeffrey A. Klurfeld. For the respondent: Paul B. Meltzer, O'Neill, Incorporated Santa Cruz, CA.

COMPLAINT The Federal Trade Commission, having reason to believe that Neill, Incorporated, a corporation, also trading and doing business as Onax, Inc. ("respondent"), has violated the provisions of the Federal Trade Commission Act and the Textile Fiber Products Identification Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest alleges:

PARAGRAPH 1. O' Neil, Incorporated is a corporation organized existing and doing business under the laws of the State of California. Its office and principal place of business is 1071 41st Avenue, Santa Cruz, California.

PAR. 2. Respondent is an importer, manufacturer, and wholesaler of textile fiber products, including, but not limited to, wearing apparel constructed of neoprene ("neoprene-type garments ), such as wetsuits, that consist of a rubber substance enclosed between two layers of a knit fabric.

NEILL, I:\CORPORATED 751 750 Decision and Order PAR. 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce " is defined in the Federal Trade Commission Act. PAR. 4. The neoprene-type garments constitute Textile Fiber Products, as that term is defined by the Textile Fiber Products Identification Act, 15 U. C. 70 et seq, and the Rules and Regulations promulgated thereunder, 16 CFR 303.

PAR. 5. The neoprene-type garments were misbranded by respondent in that they were not stamped, tagged, labeled, or otherwise identified as required by Section 4(b) of the Textile Fiber Products Identification Act, 15 U. C. 70b, and in the manner and form prescribed by the Rules and Regulations promulgated under that Act 16 CFR 303.

PAR. 6. Under Section 3(f) of the Textile Fiber Products Identification Act, 15 U. C. 70(a), a violation of that Act and the Rules and Regulations promulgated thereunder, is an unfair method of competition and an unfair and deceptive act or practice under the Federal Trade Commission Act, 15 U. C. 45.

PAR. 7. The acts or practices of respondent, as alleged in this complaint, were and are in violation of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder. These acts and practices constituted, and now constitute unfair and deceptive acts and practices and unfair methods of competition in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act, 15 C'. C. 45. Commissioner Yao not participating.

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 San Francisco 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, their attorney, 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 Decision and Order II4 F. said agreement is for settement 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, and no comments having been filed thereafter by interested parties pursuant to Section 2. 34 of its Rules now in further conformity with the procedure prescribed in Section 34 of its Rules; the Commission hereby makes the following jurisdictional findings and enters the following order: 1. O'Neil, Incorporated is a corporation organized, existing and doing business under the laws of the State of California. Its office and principal place of business is 1071 41st Avenue, Santa Cruz California.

2. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act.

3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered That respondent O'Neil, Incorporated, a corporation trading and doing business under that name or as Onax, Inc. or by any other name, its successors and assigns, and its officers, agents representatives and employees, directly or through any corporate or other device, in connection with the offering for sale or sale of any textile fiber product, as that term is defined by the Textile Fiber Products Identification Act, 15 U. C. 70 et seq. do forthwith cease and desist from:

Offering for sale or selling any such textile fiber product without the product being stamped, tagged, labeled, or otherwise identified as XEILL. I:-CORPORA TED 753 750 Decision and Order required by Section 4(b) of the Textile Fiber Products Identification Act and in the manner and form prescribed by the Rules and Regulations promulgated under that Act.

It is further ordered That respondent shall notify the Commission at least thirty (30) days prior to any proposed change in the 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 the compliance obligations that arise out of this order. It is further ordered That respondent shall forthwith distribute a copy of this order to each of its operating divisions. It is further ordered That respondent shall, within sixty (60) days after service on it of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.

Commissioner Yao not participating.

, ( Complaint II4 F.