Liebowitz, Joe

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IN THE MATTER OF JOE LIEBOWITZ COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATIOZ'I OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 3282. Complaint, Dec. 13, 1931-Decision, Apr. 9, 1938 Where an individual E'ngaged in the manufacture of ladies' undergarments and other allied products, and in sale and distribution of such undergarments to retail dealers and other customers in the various States- Attached and sewed to certain of his aforPl'nid products a labpl bearing Jauguage "100% Pure Silk," notwithstanding fact that said products, tbus represented, designated and referred to, were not composed of pure silk, product of the cocoon of the silk worm, and were not "pure silk," as tong understood by retail trade and consuming public generally, 1. e., products composed entirely of silk with no weighting material whatsoever, and, 11: such, regarded by trade and public generally as superior to and rnuc preferred over silk products containing weighting, but were predominantly• or to a substantial degree, composed of non-silk weighting material; f With capacity and tendency to mislead and deceive a substantial portton. ~ purchasing public into erroneous belief that said products were pure sil ~ and to cause them to purchase same as result of such belief, and witt effect of unfairly diverting trade to him from competitors who do n~ resort to such methods and practices and do not misrepresent material fro which their respective products are made: e Held, That such acts and practices were to the prejudice and injury of tbt public and of said competitors and constituted unfair methods 0 competition.

Jrfr. George W. Williams for the Commission. Col\IPLAINT Pursuant to the provisions o£ an Act of Congress, approved September 26, 1914, entitled "An Act to create a Federal Trade Comn\lS· sion; to define its powers and duties, and for other purposes,'~ t 1 ~ Federal Trade Commission having reason to believe that Joe L1ebO witz, an individual, hereinafter referred to a.s respondent, has been and is using unfair methods o£ competition in commerce, as ''c~Jll· merce" is defined in said act, and it appearing to said Commissl~Jl that a proceeding by it in respect thereof would be in the pnb 1 ~ interest, hereby issues its complaint stat~ng its charges in that respec as follows: ·t1 PARAGRAPH 1. Respondent, Joe Liebowitz, is an individual w~ ; his office and principal place of business located at 1007 Chand et A venue, Linden, N. J., and is engaged, and £or many years last pas. has been engaged in the business of manufacturing ladies' undergar JOE LIEBOWITZ 1053 1052 Complaint rn~nts and other allied products. He sells, and has sold and distnbuted, such undergarments to retail dealers and other customers located in the various States of the United States. He causes said products, when sold to be shipped from his place of business in Linden, N. J., to the ~urchasers thereof located in the various States of the United States other than the State of New Jersey. There is now, and has been at all times mentioned herein, a course of trade and commerce by said respondent in said products so sold by him between and amoncro the various States of the United States. Respondent is now and at all times herein mentioned has been in substantial competition with other persons and with corporations, firms, and partnerships engaged in the sale and distribution of ladies' undergarments and other allied products in commerce between and among the various States of the United States. PAn. 2. In the course and conduct of his business as described in Paragraph 1 hereof, respondent in soliciting the sale of and selling ~ettain of his products, attaches, affixes, and sews to said products a abel bearing the following language, "100% Pure Silk." The representations made on such label by the respondent as in this Paragraph set out serve as representation~ to retail dealers and to 1l1ernbers of the purchasing public that such products so adyertised and offered for sale were pure silk. The representations thus made Were false and misleading in that said products so represented, desig- ~ted and referred to were not composed of pure silk, the product of f e cocoon of the silk worm, but were predominantly or to a substanlal degree composed of weighting material which is not silk. fPAn. 3. The word "silk" for many years last past has had, and 8 Ill has, in the mind of the retail dealers and consuming public generally a, definite and specific meaning, to wit: the product of the ~ocoon of the silkworm. The expression "pure silk" for many years Pas~ past has had in the mind of the retail dealers and consuming p u he generally a definite and specific meaning to wit: a fabric com- S d entirely of pure silk and without any weighting whatsoever. e ~ products for many years have held and still hold a great public ps eem and confidence for their preeminent qualities. Products comtlosed entirely of pure silk and without weighting are regarded by f le trade and the public generally as superior to and much to be preerred ov "lk d 1 . . . er sr ·pro nets t 1at contam wmo·htmcr. P Aa 4 o oti d .. · There are among the competitors of respondent menar~~efi rn Pltragraph 1 hereof individuals, corporations, partnerships, c trms engaged in the manufacture and sale of ladies' under•Tnr- 16045tm--39--vol.26----69 h Findings 26F.T.C· ments and other allied products who do not misrepresent the nature of the material from which such garments are made. PAn. 5. The use by respondent of the representations set forth herein have had, and now have, the capacity and tendency to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that such products are, and were, pure silk, and to cause them to purchase said products as a result of such erroneous beliefs engendered as above set forth. The use by respondent of _the representations aforesaid has unfairly diverted, and does uufatrlY divert, trade to the respondent from its said competitors, and thereby substantial injury is being, and has been done, by respondent to com· petition in commerce among and between the various States of the United States.

PAn. 6. The above alleged acts and practices of respondent, ns hereinabove alleged, are all to the prejudice of the public and re· spondent's said competitors, and constitute unfair methods of con1f petition in commerce within the intent and meaning of Section 5 ° an Act of Congress entitled "An Act to create a Federnl Trade Com;, mission, to define its powers and duties, and for other purposes. approyed September 26, 1014.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of an Act of Congress approved Sep· tember 26, 1914, entitled "An Act to cretlte a Federal Trade Com;, mission, to define its powers and duties, and for other purposesr the Federal Trade Commission, on the 13th day of December 193 ' issued and subsequently served its complaint in this proceeding upon respondent Joe Liebowitz, an individual, charging him with the use of unfair methods of competition in commerce in violation of ti~e provisions of said act. On March 10, 1938, the respondent fi]ed ht; answer, in which answer he admitted all the material allegations~ the complaint to be true and stated that he waived hearing on t e charges set forth in the said complaint and that, without fu~ther evidence or other intervening procedure, the Commission might tssue and serve upon him findings as to the facts and conclusion and ~ 11 order to cease and desist from the violations of law charged in t 1e complaint. Thereafter this proceeding came on for final hearing before the Commission on said complaint and answer, and the Co~: mission having duly considered the matter and now being fully 11 f vised in the premises, finds that this proceeding is in the interest 0 the public and makes this its findings as to the facts and its conclusion drawn therefrom·:

JOE LIEBOWITZ 1055 l0;j2 Findings FINDINGS AS TO THE FACTS _P AllAGRAPH 1. Respondent, Joe Liebowitz, is an individual, with h:s office and place of business located at 1007 Chandler A venue, ~lnden, N.J. He is, and for many years last past has been, engaged 111 the btisiness of manufacturing ladies' undergarments and other allied products. He sells and distributes such undergarments to retail dealers and other customers located in the various States of the lJnited States. He causes said products, when sold, to be shipped ~rom his place of business in Linden, N.J., to the purchasers thereof ocated in the various States of the United States other than the ~tate of New Jersey. There is now, tmd has been at all times men- ~loned herein, a course of trade and commerce by said respondent 111 Snl(• 1 products so sold by him between and among the varwus. s,states of the United Stat!:'s. Respondent is now, and at all times herein ~lentioned has been, in competition with other persons, corporations, tins, and partnerships likewise engaged in the sale and distribution of latlies' undergarments and other allied products in commerce behYeen and among the Yarions States of the United States. pan. 2. In the course and conduct of his business as described in Paragraph 1 hereof, respondent, in soliciting the sale of and selling Cettain of his aforesaid products, attaches, affixes and sews to said Products a label bearing the following language: "100% Pure Silk." The aforesaid statement made on such labels by the respondent serves as a representation to retail dealers and to members of the P~rchasing public that such products so labeled, advertised, and ~ ted for sale are "pure silk." The representation thus made is a se and misleading, in that, said products so represented, designatedand f · re erred to are not composed of pure silk, the product of the elocoon of the silkworm, but are predominantly or to a substantial ( e~ree composed of weighting material which is not silk. t'l <\R. 3. The word "silk" for many years last past has had, and 1 1~ has, in the minds of the retail dealers and consuming public c l'llerally, a definite and specific meaning, to wit: A product of the ocoon of the silkworm. The expression "pure silk" for many years1 ~'\s~last has had in the minds of the retail dealers and consuming c u Ic generally, a definite and specific meaning, to wit: A fabric eom pose~ entirely of silk without any weighting material whatsogver. Silk products for many years have held, and still hold, a pr:~t public esteem and confidence for their preeminent qualities. 10 r nets composed entirely of pure silk and without weighting are ~ga~ded by the trade and the public generally as superior to and uc preferred over silk products that contain weighting. Order 26 F. T. C. PAR. 4. There are among the competitors of respondent, referred to in paragraph 1, individuals, corporations, partnerships, and firms engaged in the manufacture and sale of ladies' undergarments and other allied products, who do not misrepresent the nature of the material from which such garments are made. PAR. 5. The use by respondent of the statements and representations set forth herein has had, and has, a capacity and tendency ~ 0 mislead and deceive a substantial portion of the purchasing pubhc into the erroneous belief that such products are "pure silk," and causes them to purchase said products as a result of such erroneous belief. The use by respondent of the representations aforesaid has unfairly diverted, and does unfairly divert, trade to respondent fron~ those of his said competitors who do not resort to such methods an. practices and who do not misrepresent the material from which thelr respective products are made.

CONCLUSION The aforesaid acts and practices of the respondent, Joe Liebowitz£ an individual, are to the prejudice and injury of the public and 0 respondent's said competitors, and constitute unfair methods of c0111£ petition in commerce within the intent and meaning of Section 5 ° an Act of Congress entitled "An Act to create a Federal Trade Conl· mission, to define its powers and duties, and for other purposes." ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Comn11.5" sion upon the complaint of the Commission and the answer filed he~·elll on March 10, 1938, by respondent admitting all the material allegatwns to be true and waiving the taking of further evidence and other inter· vening procedure, and the Commission having made its findings as ~ 0 the facts and conclusion that said respondent has violated the provi· sions of an Act of Congress approved ~e~tember 26, 191.4, entitle~ ''J~~ Act to create a Federal Trade Comm1sswn, to define 1ts po"-ers at duties, and for other purposes." . It~ ordered, That the respondent, Joe Liebowitz, an individual, }lls agents, servants.' a1:d e~1ployees, .in connection with the offering ~ 0~ sale, sale and distributwn of ladies' undergarments and other alh~ products in interstate commerce or in the District of Columbia, c 0 forth with cease and desist from :

1. Using the terms "pure silk" and "100% pure silk," or any other terms or words of similar import and meaning, to describe or desi~nate any fabrics or products \which are not composl:.'d wholly of silk, the product of the cocoon of the silkworm:

JOE LIEBOWITZ 1057 1052 Order . 2. Using the word "silk," or any other word or words of similar lnlport or meaning, to describe or designate fabrics or products which are not composed wholly of silk, the product of the cocoon of the silk- ,~·orm, unless, in the case of a fabric or product composed in part of ~llk and in part of rayon or material or materials other than silk, there ;s used in immediate connection and conjunction therewith, and in letters of at least equal size and conspicuousness, a word or words accur~te]y describing the fiber, material or materials from which said fabl'!c or product was actually made; and provided, that the fiber or Ina~erial content of such fabric or product be accurately disclosed by ~les1gnating each constituent fiber or material thereof, in the order of Its predominance by weight, beginning with the largest single constituent.

lt_isfurther ordered, That the respondent shall within 60 days after ser~~ce upon him of this order, file with the Commission a report in Wntmg, setting forth in detail the manner and form in which he has complied with this order.

1058 FEDERAL TRADE 001\IMISSION DECISIOXS Syllabus ~6 F. T.C.