Hudson Fur Dyeing, Inc.

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IN THE 1\fAmn OF HUDSON FUR DYEING, INC.

COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF' .AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2125. Complaint, Nov. 9, 1933-order, June 25, 1935 1 Complaint charged respondent corporation, engaged in dressing, dyeing, trade· marking, or otherwise marking and designating, among others, rabbit skins, at the instance and request of and In accordance with special agreements with the owner furriers or dealers who sell the same, thus dressed, dyed, marke<.l, and designated, by It, to garment manufacturers, with misbrand· ing or mislabeling, In stamping upon the backs of rabbit skins, so dressed and dyed by it as to cause the fur thereof to resemble the appearance of the much superior seal, the words "Hudson Seal", with full knowledge and in aid of sale in Interstate commerce, by said owners and mflnufacturers, respectively, of such skins and garments made thereof as and for seal on account of their resemblance to the dyed fur of genuine seal, due to its agency or service in thus marking, describing, and designating the same; With capacity and tendency to mislead and deceive the public into the purchase of said skins and of garments made therefrom, from said owner and manufacturer vendors thereof, as and for seal and the substantially more costly sealskin garments, respectively, and with the etrect of furnish- Ing manufacturers and wholesale and retail dealers with the means ena• bling them to perpetrate a fraud upon the purchasing public by representing to their respective customers In the various localities of the several States in which their business Is conducted that such garments are sealskin, and otrerlng and selling the same to the publlc as and for genuine seal, and exhlbltlng the aforesaid trade mark in support of such misrepresentation, and of aiding, assisting, and abetting sale in interstate commerce of rabbit skins tbu! dressed, etc., by it, and of garments thereof, as and for seal, by the owners and manufacturers, respectively, and with capacity and tendency to divert trade to the owners otrerlng and selllng In interstate commerce rabbit skins, thus dressed, dyed and marked or stamped by it for them, and to manufacturers of garments made thereof slmllarl;t otrerlng the same, from dealer!! or furrier!! selling skins of rabbit, seal, or other fur· bearing animals In such commerce, truthfully described and marked, and from manufacturers thus selling garments made of such skins, truthfully branded and described; to the prejudice of the public and of competitors of the aforesaid owners and of said owners' vendees, the manufacturers of garments thereof, and to the prejudice of the competitors of itself and of its principals and tliose thus aided, assisted and abetted by It in such practices.

Ordered, respondent consenting, that respondent, its officers, etc., in connection with the dyeing or dressing, sale, otrer, or advertisement of dyed muskrat fur or dyed cony (rabbit) fur, in Interstate commerce, cease and desist from describing fur other than by the use of the correct name of the fur ns fhe·Iast word in the designation thereof, and from the use of the words 1 The order Js published as modified as of that date. Original order, not printed, was mode as ot M4.y 16, 103:1.

• 40 FEDERAL TRADE COI\Il\IISSION DECISIONS Complaint 21 F.T. C. "seal" or "Hudson Seal" as designations thereof, subject to permitted use thereof In an adjective sense, together with such words as "dyed" or "blended", as in said order in detail set forth. Mr. James M. Brinson for the Commission.

Complaint Acting in the public interest pursuant to the provisions of an 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", the Federal Trade Commission charges that Hudson Fur Dyeing, Inc., hereinafter designated respondent, has been and is using unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of said Act, and states its charges in that respect as follows: PARAGRAPII 1. Respondent, Hudson Fur Dyeing, Inc., is now, and for more than a year last past has been a corporation organized, existing, and doing business under the laws of the State of New Jersey with its principal office and place of business in the city of Newark in said State, and engaged in the business of dressing, dyeing, and trade-marking or otherwise marking and designating rabbit skins and the skins of other fur-bearing animals for the owners thereof.

Respondent has rendered and renders such service for owners of rabbit skins, at their instance and request and in pursuance of and in accordance with special agreements therefor. Such owners have been and are furriers or dealers engaged in the business of selling' rabbit skins or the skins of other fur-bearing animals in commerce: among and between the various States of the United States. It ha~ been and is the practice of said owners of rabbit skins dressed dyed, and trade-marked, or otherwi~e marked or designated, fo; them by respondent, to sell them With the full knowledge of respondent to manufacturers of fur garments, having their places of business in the city of Newark or elsewhere in the State of New Jersey, and in the various other States of the United States, and such manufacturers have offered for sale and sold garments made from rabbit skins so dressed, dyed, and trade-marked, or otherwise marked or designated, in commerce among and between the various States of the United States, causing them when sold to 00 transported from their several places of business to purchasers located in various other States of the United States than the State or States wherein are situated such places of business. It has been and is the practice of respondent to render such services in dressing, dyeing, and trade-marking, or otherwise marking or designating, rabbit skins for their owners with the full knowledge expectation, purpose, and intent that such skins or garments mad~ . . HUDSON FUR DYEING, INC. 41 39 • Complaint therefrom will be offered for sale and sold in interstate commerce, and the acts and practices of respondent hereinafter described in paragraph 2 hereof have been and are directly related to and in furtherance of such business by the owners of such skins and the manufacturers of garments therefrom.

In the course and conduct of its business respondent has been and is engaged in competition with other individuals, partnerships, and corporations, dressing and dyeing rabbit skins, or the skins of other fur-bearing animals, for their owners in pursuance of agreements· therefor, for sale in interstate commerce, or for manufacture into garments to be sold in such commerce. The owners of rabbit skins, dressed, dyed, and trade-marked, or otherwise marked or designated, by respondent, and the manufacturers of garments therefrom, have been and are in competition with individuals, partnerships, and corporations engaged in the sale of similar or competitive products in like commerce.

PAR. 2. The respondent uses and has used, a process for dressing and dyeing rabbit skins which causes the fur of such skins to resemble in appearance dyed sealskins, and causes such skins to be stamped, marked or designated on the backs thereof with the words "Hudson Seal." Dyed rabbit skins resemble dyed sealskins in appearance only and such skins are greatly inferior to the skins of seals, and garments maJe from sealskins command prices substantially greater than the prices commanded by garments made from rabbit skins.

PAn. 3. Large quantities of rabbit skins have been and are dressed and dyed by respondent so as to resemble and imitate sealskins, and stamped as aforesaid, for their owners, for manufacture into coats or other fur garments for women. Such garments have been and are sold by such manufacturers, among and between the various States of the United States, as and for garments maJe from sealskins on account of or by means of their resemblance to the dyed furs of genuine seals, resulting from the agency or service of respondent in marking,· describing, ~nd designating such ·skins as Hudson Seal. PAn. 4. There are now and have been for many years last past competitors of respondent dressing and dyeing rabbit skins or skins of other fur-bearing animals for their owners for sale in interstate commerce or to manufacturers of fur garments selling in such commerce, and either stamping or marking them so as clearly to indicate the kind or character of such skins, or omitting any mark or desig· nation, and such skins and garments made from them have been and are sold in interstate commerce in competition with rabbit skins or garments made therefrom, dyed and stamped by respondent as described in paragraph 2.

Complaint 21 F. T. C. There are now and for many years last past have been competitors of the owners of rabbit skins so dyed and stamped by respondent, and of manufacturers selling garments made therefrom, offering for sale and selling in interstate commerce dyed rabbit f:lkins clearly described and advertised as such, and garments manufactured from dyed rabbit skins without any trade mark, brand, stamp, or other description containing the word ".seal" or thereby or otherwise suggesting or implying that such garments have been or are made from or out of sealskins, or any other skins than rabbit skins, and there have been and are other competitors of the owners of rabbit skins dyed and stamped by respondent and of manufacturers selling in interstate commerce garments made therefrom, offering for sale and selling in interstate commerce genuine dyed sealskins, or garments made therefrom, truthfully trade-marked, branded, or described. PAR. 5. The acts and practices of the owners of the rabbit skins so dressed, dyed and stamped or branded for them by respondent at their instance and request, in offering for sale and selling such skins in interstate commerce, and the acts and practices of manufacturers of fur garments in offering for sale and selling in interstate commerce garments made from rabbit skins dyed to resemble sealskins bearing the brand, mark, or designation "Hudson Seal", have had and have the capacity and tend.ency to mislead and deceive the public into the purchase of such skins as and for sealskins and into the purchase of garments made from such skins as and for' garments made from sealskins. Such acts and practices have furnished manufacturers and dealers, wholesale and retail, with the means by which they have been and are ena~led to perpetrate a .fraud upon the purchasing public by representmg to their respective customers in the various localities of the various States in which their business is conducted, that garments made from skins. so dressed, dyed, and marked or stamped by respondent are sealskms, and by ofl'erinrr for sale and selling the same to the public as and for genuine seal~kins and by exhibiting said. trade mark to support such representation. Such acts and practices by the owners of rabbit skins dressed, dyed and marked or stamped by respondent, and by the vendees of such owners, including manufacturers of fur garments, have had and have the capacity and tendency to divert trade to the owners of rabbit skins dyed dressed, and so marked or stamped by respondent who have offer:d for sale and sold them in interstate commerce a~d to manufacturers of garments made from such skins, ofl'erinrr for sale . f band selling the same in mterstate commerce, rom dealers or furriers sellintr the skins of rabbits and of other fur-bearing animals in inter· state ~commerce, truthfully described and marked, and from manu. facture.rs selling in interstate commerce garments made from seal- HUDSON FUR DYEING, INC, 43 39 Order • skins, rabbit skins, and. the skins of other fur-bearing animals, truthfully branded and d.escribed.

The acts and practices of respondent described in paragraph 2 have aided, assisted, and abetted the owners of rabbit skins dressed, dyed, and stamped or designated for them by respondent in selling such skins in and among the various States of the United States as and for sealskins, and have aid.ed., assisted, and. abetted the manu·facturers of garments from such skins in selling them in such commerce as and for garments made from sealskins. PAR. 6. The above and. foregoing practices of the owners of rabbit skins dressed, dyed, and. marked or stamped by respondent and. of the vendees of such owners, including the manufacturers of garments from such skins, have been and. are to the prejudice of the public and of their competitors, and the above and foregoing practices of respondent have been and are to the prejudice of the public and respondent's competitors and the competitors of respondent's principals, and those it has aided, assisted, and abetted in such practices in interstate commerce, which practices have been and are unfair methods of competition in interstate commerce in violation of the provisions of Section 5 of an Act entitled "An Act to create n. Federal Trade Commission, to define its powers and. duties, and forother purposes."

ORDER TO CEASE AND DESIST 2 Pursuant to the provisions of an Act of Congress approyed September 26, 1914, entitled ''An Act to create a Federal Trade Commission, to define its powers and. uuties, and for other purposes",. the Federal Traue Commission, on the 9th day of November 1933 issued. its complaint against Hudson Fur Dyeing, Inc., a corporation, respondent herein, anu caused the same to be served upon said responuent as requircu by law, in which complaint it is alleged that responucnt has been and. is using unfair methods of competition in commerce in violation of the provisions of Section 5 of said. Act. On l\Iay 17, 1934, respondent filed an answer to saiu complaint in which it consented. that the Commi.ssion may make, enter, and scn·e upon it an order to cease and desist from the violations of law alleged in the complaint, in accordance with the provisions of Section (L) of Rule V of the Hulcs of Practice of the Commission; and the Commission having accepted1l said answer, issued an order to cl'asc anu desist on :May 16, 1D35, and thereafter, on to wit the 17th day of June 1935 the Commission being now fully advised in thepremises, mod.ifies the said oruer to cease and desist, and r Publlsbed ns mollified.

Order 21F.T.O.

It is. now ordered, That respondent, Hudson Fur Dyeing, Inc., its officers, agents, representatives, and employees, in connection with the dyeing or dressing, sale, offering for ~ale, or advertising of dyed muskrat fur, or dyed cony (rabbit) fur, cease and desist from: 1. Describing furs in any other way than by the use of the correct name of the fur as the last word of the description, and when any dye or blend is used simulating another fur the true name of the fur appearing as the last word of the description must be immediately preceded by the word "dyed", or "blended", compounded with the name of the simulated fur.

2. Using the word "seal" alone or in connection, combination, or conjunction with any other word or words to describe or designate dyed cony, unless and until the word "seal" is compounded with the word "dyed" and such compounded word is immediately followed by the ·word "cony", as "seal-dyed cony".

3. Using the word "seal" or the words "Hudson Seal" standing alone or in connection, combination, or conjunction with any other word or words to describe or de,signate dyed muskrat unless and until the word "seal" or the words "Hudson Seal" are compounded with the word "dyed" and such word or words so compounded are immediately followed by the word or words signifying or designating the true name of the fur, as "seal-dyed muskrat" or ''Hudson Seal-dyed muskrat".

4. "Gsing the word "seal" or the words "Hudson Seal" ,standin(J' alone or in connection, combination, or conjunction with any other~ word or words (regardless of corporate name, trade name or trade mark), except that the word "seal" may be used as an adjective to denote or describe the color or character of the dye of muskrat or cony fur, as "seal-dyed muskrat" or "seal-dyed co11y'', and except that the words ''Hudson Seal" may be used as an adjective to denote or describe the color or character of the dye of muskrat fur as "liudson Seal-dyed muskrat . . " ' 5. Using the word ''Hudson" standing alone or in connection combination, or conjunction with any other word or words to dcscrib~ or designate dyed cony (rabbit) fur.

It i 8 further o1'dered, T~at the r~spondent shall, within 90 days from the date. of the service. upon. . It of. the order herein ' file withthe Commission a report m wntmg, settmg forth in detail the manner and form of their compliance with this order. 1\IENDOZA FUR DYEING WORKS, INC. 45 'Syllabus