Gottlieb Brothers, Manufacturers of Silk Underwear, Inc.

Text (OCR of the scan at left; may contain errors)

IN THE MA'ITER OF GOTTLIEB BROTHERS, MANUFACTURERS OF SILK UNDERWEAR, INC.

COMPLAINT AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. II OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 2522. Complaint, .Aug. 17, 1935-order, Oct. 11, 1935 Consent order requiring respondent corporation, its officers, etc., in connection with the sale in interstate commerce of women's underwear and undergarments, to cease and desist from- ( a) Representing women's underwear by labels or otherwise as "100 percent pure silk" until such undergarments are composed entirely of silk, the product of the cocoon of the silkworm; and (b) Representing women's underwear as "pure silk" until they are composed entirely of silk and contain not more than 10 percent of any substance (weighting) except black, which shall not exceed 15 percent. rjr. George Foulkes for the Commission.

Mr. Maw Levy, of New York City, for respondent. Complaint Pursuant to the provisions of an Act of Congress approved September 2G, 1914, entitled "An Act to create a Federal Trade Commission, to define its powers and duties, and for other purposes", the Federal Trade Commission, having reason to believe that Gottlieb Brothers, Manufacturers of Silk Underwear, Inc., a corporation, hereafter referred to as the respondent, has been and is using unfair methods of competition in commerce as "commerce" is defined in said act, and it appearing to said Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint, stating its charges in that respect as follows : PARAGRAPH 1. The respondent is and has been since the year 1930, or thereabouts a corporation organized, existing, and doing business under and by virtue of the laws of the State of New York, with its principal place of business and office in the city of New York, in said State. It is now and has been since the year 1930, or thereabouts, engaged in the mamifacture and sale of women's silk underwear and undergarments. In the course and conduct of its business the respondent sells through salesmen or representatives appointed by it as agents in its behalf to retail dealers, some located in the State of New York and others in ~ther States of the United States, and pursuant to such sales, shipments are made from respondent's place of business in New York to such retailers. In the course and con- Complaint 21F.T.C· duct of its business respondent is in substantial competition with other corporations, partnerships, firms and persons engaged in the sale of women's silk underwear and undergarments between and among the various States of the United States. PAR. 2. The term "100% pure silk" and "pure silk" are well established and standard terms when used in connection with the labeling, marking, advertising, sale, and distribution of silk garments. The term "100% pure silk" is understood by members of the silk industry, retailers, and the purchasl.ng public to signify and designate silk goods, which in the finished state are manufactured entirely from silk and not mixed with any other adulterant fiber and/or substance. Silk is a fibrous substance produced by the larvae of silk worms. The term "pure silk" is also a standardized and established term among members of the silk industry, retailers and the purchasing public. It signifies and designates a silk cloth not containing more than 10 percent of weighting material or more than 15 percent of weighting material for black silk fabrics. PAR. 3. The respondent in the course and conduct of its business, as aforesaid, in the manufacturing, soliciting the sale of, and selling of women's silk underwear and undergarments, as described in paragraph 1 hereof, has represented since the year 1930, or thereabouts, and still represents to retail dealers and to prospective retail dealers, by the use of certain labels and other marks which it attaches and has attached, that such women's silk underwear and undergarments do not contain any weighting substance; and the respondent has represented and still represents to retail dealers and to prospective retail dealers by the use of certain other labels and marks which it attaches and has attached, that such women's silk underwear and undergarments do not contain more than 10 percent of weighting substance. The labels used by respondent are, among others, as follows:

Radcliffe 100 PERCENT PURE SILK Made of Alternating Bias Gores Will Not Sag in Washing Nor Rip in Seams and/or the words:

Radcliffe lure SILK Made o:f Four Bias Gores Will Not Sag in Washing Nor Rip in Seams GOTTLIEB BROTHERS, MFRS. OF SILK UNDERWEAR, INC. 365 363 Complaint and/or the words:

Regency PUTIE SILK TRUE BIAS Will Not Sag in Laundering Nor Rip in Seams and/or the words:

Youth 1\:lode PURE SILK Two Panels Two Seams True Bias Will Not Sag Nor Rip in Seams PAR. 4. In truth and in fact the women's silk underwear and undergarmt:lnts so labeled and marked as "100% pure silk" and sold as described in paragraphs 1 and 3 hereof, are not, and have not been manufactured from pure silk cloth but such underwear and undergarments contain and have contained up to 52 percent of weighting substances, nor have they been nor are they 100 percent pure silk; and in truth and in fact such women's underwear and undergarments labeled and marked as "pure silk" and sold, as described in paragraphs 1 and 3 hereof, are not and have not been "pure silk" but such underwear and undergarments have contained and do contain from n percent to 52 percent of weighting substances. PAR. 5. There .are among the competitors of the respondent described in paragraph 1 hereof, corporations, p~rtnerships, firms, and persons who are engaged in the manufacture and/or sale of garments manufactured from silk cloth containing no weighting substances, Who truthfully represent and denominate their products as being manufactured entirely from silk cloth; and there are also among the competitors of the respondent, corporations, partnerships, firms, and Persons who are engaged in the manufacture andjor sale of garments manufactured from cloth containing weighting substances who truthfully represent and denominate their products as containing weighting substances.

PAR. 6. The use by the respondent of the said labels and marks has had and still has the tendency and capacity to deceive, has deceived and still deceives retail dealers and prospective dealers into the belief that said product of respondent is made entirely of silk and/or contains 10 percent or less of weighting substances, and to purchase said Product from said respondent in such erroneous belief. The use by 1·respondent of such labels and marks has placed, and still places, in the hands of its retail dealers the means of deceiving the purchasing Order 21 F. T. C. public. By the use of such labels and marks, trade is diverted by respondent from its competitors, and thereby substantial injury hac;; been done, and is being done, by respondent to substantial competition in interstate commerce.

PAR, 7. The acts and practices set forth in paragraphs 3, 4, 5, and 6 hereof are all to the prejudice of the public and the respondent's competitors, and constitute unfair methods of competition in interstate commerce within the intent and meaning of Section 5 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".

ORDER TO CEASE .AND DESIST This proceeding having come on for hearing by the Federal Trade Commission upon the complaint and the respondent's answer waiv'· ing all further proceeding and consenting that the Commission may make, enter, and serve upon it an order to cease and desist from the method or methods of competition charged in the complaint, and the Commission being fully ad vised in the premises- It' is now ordered, That the respondent, Gottlieb Brothers, Manufacturers of Silk Underwear, Inc., a corporation, its agents, representatives, servants, and employees, in connection with the sale or offering for sale in interstate commerce of women's underwear and undergarments, cease and desist directly or indirectly from: (1) Representing women's underwear and undergarments by labels or otherwise as "100 percent pure silk" unless and until such underwear and undergarments are composed entirely of silk the product of the cocoon of the silkworm.

(2) Rt>presenting women's underwear and undergarments by labels or otherwise as "pure silk" unless and until content of such underwear and undergarments is composed entirely of silk the product of the cocoon of the silkworm, and unless and until such underwear and undergarments contain not more than 10 percent of any substance (weighting) except black, which shall not exceed 15 percent.

It is further ordered, That the respondent shall, within 60 days after the service upon it of a copy 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 the order to cease and desist hereinabove set forth.

RAYSON SERVICE BUREAU, ETC. 367 Syllabus