Morris Steinberg

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IN THE MATTER OF MORRIS STEINBERG, AN INDIVIDUAL DOING BUSINESS UNDER THE NAME AND STYLE OF MARVEL DRESS COMPANY COMPLADIT (SYNOPSIS), FINDINGS, AND ·ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1014 Docket 1466. Complaint, June 13, 1921-Deciaion, Mar. 11, 1928 Where an individual engaged in the sale of women's dresses direct to the consumer; in advertising the same In newspapers and periodicals of national circulation, applied the words " wool embroidered serge dress rayon sllk trimmed" to a dress composed entirely of cotton, with cotton and rayon trimming, and the words "wool embroidered serge dress", "silk handembroidered wool finish serge dress", "sllk embroidered pongee", "pongee dress, sllk hemstitched" nnd "sllk lustre pongee dress", to all-cotton garments containing neither wool nor silk; with the capacity and tendency to mislead and deceive a substantial part of the purchasing publlc into believing said dresses to be composed of wool or of silk and to induce the purchase thereof in such bellef, and with the effect of diverting business from and otherwise Injuring and prejudicing competitors dealing 1n dresses of pongee fabric embroidered with silk material, and in those composed of wool fabric, and truthfully describing and representing the same: Held, That such false and misleading advertising, under the circumstances set forth, constituted an unfair method of competition. Mr. 1Villiatm A. Sweet for the Commission. SYNOPSIS OF Complaint Reciting its action in the public interest, pursuant to the provisions of the Federal Trade Commission Act, the Commission charged respondent individual, engaged at Philadelphia in the sale direct to consumer purchasers in States other than Pennsylvania, of women's dresses upon orders solicited through advertisements and received through the mails, with advertising falsely or misleadingly, in violation of the provisions of section 5 of such act, prohibiting the use of unfair methods of competition in interstate commerce. Respondent, as charged, in his aforesaid advertisements in newspapers and periodicals of general circulation throughout the United States or in certain sections thereof, described and represented dresses composed of cotton cloth and containing no silk whatsoever as "Genuine silk lustre pongee dress trimmed with silk embroidery" and "Silk embroidered pongee"; dresses composed almost entirely MARVEL DRESS CO. 101 100 Findings of cotton fabric and containing no wool whatsoever as "Beautiful new wool finish checked serge dress, $1.98, latest smartest, fall stylea splendid wool finish fabric "; and dresses composed of an inferior grade of cotton cloth, and with no silk material whatsoever, as "Amazing offer-beautiful heavy cloth dress suitable for winter wear, trimmed with silk embroidery, $1.49; value, $3.50 "· The aforesaid descriptions and representations, as alleged, " are false and misleading and are calculated to and do deceive the purchasing public into the belief that such dresses are composed either wholly or in part of silk, or of wool, in the case of the first two, and, in the case of the last, are composed "of a heavy fabric suitable for winter wear and trimmed with embroidery composed of silk 1 ", and said acts and practices tend to and do divert busines~ from and otherwise injure and prejudice respondent's competitors among whom there are those who sell and transport in commerce women's dresses composed of pongee fabric embroidered with silk material, or of wool fabric, or of heavy cloth suitable for winter wear, who truthfully describe and represent the same; all to the prejudice of the public and. such competitors.

Upon the foregoing complaint, the Commission made the following REPORT, FINDINGS AS TO TIIE FACTs, AND OnoER Pursuant to the provisions of an act of Congress approved September 26, 1914 (38 Stat. 717), the Federal Trade Commission issued and served its complaint upon the respondent, Morris Steinberg1 charging him with the use of unfair methods of competition in interstate commerce, in violation of the provisions of section 5 of said act. Hearings were had in the course of which testimony and evidence were received in support of the charges in the complaint and in opposition thereto. The trial examiner filed his report upon the facts to which respondent filed exceptions. Counsel for the Commission filed his brief. No brief was filed by the respondent and the time for filing respondent's brief expired November 26, 1927. Thereupon this proceeding came on for decision and the Commission having duly considered the record, and being fully advised in the premises, makes this its findings as to the facts and its conclusion drawn therefrom:

1 As regards the use of the word "pongee", the complaint alleges that said word "used In suld advertisements s!gnltle11 to and Is understood l1y a substuntlal part of the purchas- Ing public as a fabric composed entirely of silk, and the use by respondent of 11uch word • as aforesaid has the capacity and tQndeucy to and does mislead and deceive the purchaslni public Into the belief that the said cotton dressea are compoaed ot a silk Iabrie and to Induce them to purchase the same In that belief" • . Findings 12F. T.C.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent is an individual doing business under the name and style of Marvel Dress Co., with his principal office and place of business in the city of Philadelphia in the State of Pennsylvania. For a period of two years, prior to June 13, 1927, he was engaged in the business of selling direct to the consumer, women's dresses upon orders solicited through advertisements inserted by him in newspapers and periodicals of national circulation, and received from such consumers through the United States mails in response to such advertisements. ThQ dresses thus sold by respondent were shipped by him from his place of business in the city of Philadelphia in the State of Pennsylvania into and through other States of the United States to the purchasers thereof located in States other than the State of Pennsylvania. In the course and conduct of this business respondent was in competition with other individuals, partnerships, and corporations also engaged in the sale and transportation, in interstate commerce, of women's dresses. PAR. 2. In the advertising matter used by respondent in connection with the sale of certain of his said women's dresses, respondent rern-escntcd and described said dresses, respectively, in the following language:

E:JJtraordinAry sale wool embroidered serge dress with. Charleston tf,are aklrl, rayon silk trimmed. Onlu $1.1,9 VVool embroidered serge dress----------------------------------------- $1.49 Wool embroidered serge dress----------------------------------------- . 98 Silk embroidered pongee dress--------------------------------------- 1. 30 Silk band embroidered wool finish serge dress------------------------- 1. 49 Silk embroidered pongee dress----------------------------------------- .88 Pongee dress, silk bemstlt('hed_______________________________________ 1. 10 Silk lustre pongee drrss---------------------------------------------- .00 The dress described above as "wool embroidered serge dress rayon silk trimmed," contained<l no wooi, either in the embroidery or in the dress, and contained no silk in the trimming, the dress itself being all cotton, the embroidery being all cotton, the trimming being cotton nn<l rayon.

The drrss describrd as "wool embroidered serge dress" contained no wool what~ver, either in the embroidery or in the <lress, but was composed entirely of cotton.

The dress described as "silk hand-embroidered wool finish serge dress" contained no silk and no wool, but was composed entirely of cotton.

MARVEL DRESS 00. 103 100 Order The dresses described as " silk embroidered pongee," " pongee dress, silk hemstitched," "sil,k lustre pongee dress" contained no silk, but were composed entirely of cotton, The word "serge" signifies and means and is generally understood by the public to signify and mean a fabric or material composed of wool unless it is essentially and clearly modified, as by the use of the term " cotton serge." The word " pongee " signifies and means and is generally understood by the public to signify and mean a fabric derived from the product of the cocoon of the silkworm. PAR. 3. There are among the competitors of respondent referred to in paragraph 1 hereof those who sell and transport in commerce women's dresses composed of pongee fabric embroidered with silk material, and also of wool fabric, who truthfully describe and represent the same. The above acts and practices of respondent tend to and do divert business from and otherwise injure and prejudice said competitors.

PAR, 4. The use of the words" serge" and "pongee," respectively, in the advertising matter used by respondent to represent and describe the dresses referred to in paragraph 2 hereof is false and misleading and has the capacity and tendency to mislead and deceive a substantial part of the purchasing public into the belief that said dresses are composed of wool or of silk, respectively, and to induce purchasers to purchase the same in that belief.

CONCLUSION Practices of the respondent under the conditions and circumstances described in the foregoing findings are to the injury and prejudice of the public and respondent's competitors, and are unfair methods of competition in commerce, and constitute a violation of the act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Commission, to define its powers and duties, and for other purposes."

ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission, the answer of the respondent, the testimony and evidence, and the brief of counsel for the Commission, the respondent having filed no brief, and the Commi::;sion having made its report stating its finuings as to the facts and its conclusion based thereon that the respondent, Morris Steinberg, has violated the provisions of. an act of Congress approved September 26, 1914, entitled "An act to create a Federal Trade Commission, to ,Pefine its power& and duties, and for other purposes", 104 . FEDERAL TRADE COMMISSION DECISIONS Order 12F. T.O.

It is now ordered, That the respondent, Morris Steinberg, his agents, employees, and successors, cease and desist, in connection with the sale or offering for sale of women's dresses, in interstate commerce, from- (a) Using the word "serge" to represent and describe dresses which are composed of a material or material$ other than wool. (b) Using the word "wool", alo~e or in combination with any other word or words, to represent and describe dresses which are composed of a material or materials other than wool, unless, when such dresses are composed in part of a wool material, the word " wool " is accompanied by a word or words, equally conspicuous with it in characters or type, clearly indicating that said dresses are composed in part of a material or materials other than wool. (c) Using the word "pongee" to represent and describe dresses which are composed of a material or materials other than silk, the. product of the cocoon of the silkworm.

(d) Using the word" silk", alone or in combination with any other word or words, to represent and describe dresses which are composed of a material or materials other than silk, the product of the cocoon of the silkworm, unless, when said dresses are composed in part of silk the word "silk" is accompanied by a word or words, equally conspicnous with it in characters or type, clearly indicating that said dresses are composed in part of a material or materials other than silk.

Ie is fwrther ordered, That respondent shall file with the Federal Trade Commission, within 60 days after the service of this order upon him, a report in writing setting forth in detail the manner and form in which he has complied with the order to cease and desist herein set forth.

:N. SHURE CO, 105 Syllabus