Abercrombie & Fitch, Inc

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IN THE MATTER OF ABERCROMBIE & FITCH, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF TEXTILE FIBER PRODUCTS "IDENTIFICATION ACT, WOOL PRODUCTS LABELING ACT AND SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3874. Complaint, June 2, 1999--Decision, June 2, T999 This consent order, among other things, prohibits Abercrombie ~ Fitch, Inc., an Ohio-based clothing retailer, from violating any provision of the Textile Fiber Products Identification Act or the Wool Products Labeling Act in the advertising, promotion and sale of clothing for men and women. Participants For the Commission: Carol Jennings and Elaine Kalish. For the respondent: James Wilson, Vorys, Sater, Seymour and Pease, Columbus, OH.

COMPLAINT The Federal Trade Commission, having reason to believe that Abercrombie & Fitch, Inc. ("respondent") has violated the provisions of the Federal Trade Commission Act, 15 U.S.C. 41 et seq. (FTC Act), the Textile Fiber Products Identification Act, 15 U.S.C. 70 et seq. (Textile Act), and the Wool Products Labeling Act, 15 U.S.C. 68 et seq. (Wool Act), and it appearing. fo the Commission that this proceeding is in the public interest, alleges: 1. Respondent is a Delaware corporation with its principal office or place of business at 4 Limited Parkway East, Reynoldsburg, Ohio. 2. Respondent is a retail seller of clothing for men and women. Respondent has advertised, offered for sale, sold, and.distributed to the public textile products subject to the requirements of the Textile Act and wool products subject to the requirements of the Wool Act. 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act. 4. Respondent has offered for sale and sold, by means of a print catalog, textile products subject to the requirements of the Textile Act and wool products subject to the requirements of the Wool Act. 5. Respondent has offered for sale and sold, by means of a print catalog, textile products subject to the requirements of the Textile Act Decision and Order 127 F.T.C. and wool products subject to the requirements of the Wool Act, without disclosing in its product descriptions whether such products were made in the U.S.A., imported, or both, thus violating 15 U.S.C. 70b(i), and implementing regulations in 16 CFR 303.34 (as amended 63 Fed. Reg. 7508, 7518 (Feb. 13, 1998)), and 15 U.S.C. 68b(e), and implementing regulations in 16 CFR 300.25a (as amended 63 Fed. Reg. 7508,7516, 7517 (Feb. 13, 1998)). ~ 6. The acts and practices 6f respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. 45(a).

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 complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violations of the Federal Trade Commission Act, the Textile Fiber Products Identification Act, and the Wool Products Labeling Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, and admission by the respondent of all the jurisdictional facts set forth in· the draft 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, or that the facts as alleged in such complaint, other than jurisdictional facts, are true, 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 · violated the said Acts, and that a 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:

ABERCROMBIE & FITCH, INC. 799 I. r797 Decision and Order I i 1. Respondent Abercrombie & Fitch, Inc. is a Delaware I corporation with its principal office or place of business at 4 Limited Parkway East, Reynoldsburg, Ohio.

2. 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 I.

It is ordered, That respondent Abercrombie & Fitch, Inc., its successors and assigns, and its officers, agents, representatives, and I I Iemployees, directly or through any corporation, subsidiary, division, or other device, shall not violate any ·provision of the Textile Fiber Products Identification Act, 15 U.S.C. 70 et seq. , and any of the Rules promulgated pursuant to the Act, 16 CFR Part 303, or as they may hereafter ·be amended, or the Wool. Products Labeling Act, 15 U.S.C. 68 et seq., and any of the Rules promulgated pursuant to the Act, 16 CFR Part 300, or as they may hereafter be amended. II.

_ It is further ordered, That respondent Abercrombie & Fitch, Inc., and its successors and assigns, for five (5) years after the date of .. issuance of this order, shall maintain, ~d upon request make ' available to the Federal Trade Commission, business records ~emonstrating compliance with the terms and provisions of this order, including but not limited to:

A. Copies of all mail order catalogs and mail order promotional materials, as defined in 16 CFR 303.l(u) and 16 CFR 300.l(h), that offer textile and/or wool products for direct sale to consumers. If such mail order catalogs and mail order promotional materials are disseminated to consumers in electronic form, copies may also· be maintained in an electronic format, provided that it is accessible or printable.

B. All complaints and other communications with consumers, or Iwith governmental or consumer protection organizations, that pertain ! .Ito country of origin disclosures for textile and/or wool products. I - ___.... ___________ Decision and Order 127 F.T.C. III.

It is further ordered, That respondent Abercrombie & Fitch, Inc., and its successors and assigns, shall deliver a copy of this order to all current and future principals, officers, and directors, and to all current and future employees, agents, and representatives having responsibilities for preparation of the content of any mail order catalog or mail order promotional material, as defined in 16 CFR 303.1(u) and 16 CFR 300.1(h), and shall secure from each such person a signed and dated statement acknowledging receipt of the order. Re.spondent shall deliver this order to current personnel within thirty (30) days after the date of service of this order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities. IV.

It is further ordered, That respondent Abercrombie & Fitch, Inc., and its successors and assigns, shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this; order; the filing of a plan of reorganization or dissolution pursuant to a bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division. of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. V.

It is further ordered, That respondent Abercrombie & Fitch, Inc., and its successors and assigns, shall, within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.

II ' I'• ABERCROMBIE & FITCH, INC. 801 ... I \ 797 Decision and Order ~ 'I '' VI. II ,. This order will terminate on June 2, 2019, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later~ provided, however, that the filing of such a complaint will not affect the duration of: A. Any Part in this order that terminates in less than twenty (20) years ~ B. This order's application to any respondent that is not named as a defendant in such complaint; and t. C. This order if such complaint is filed after the order has terminated pursuant to this Part.

Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such. dismissal,or ruling and the date such dismissal or ruling is upheld on appeal.

Complaint 127 F.T.C.