Friedman, Adolph

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IN THE MATTER OF ADOLPH FRIEDMAN, TRADING AS SUPERYARN COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOL.\TIO:"< OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 8753. Complaint, Apr. 1, 1939-Decision, llfay 20, 1939 Where an individual engaged in sale and distribution of various grades and types of textile fabrics and knitting yarn; in describing his product:> in catalogs, price lists, and in advertisements in periodicals, newspapers, and other publications distributed among prospective purchasers of said products in various States and in the District of Columbia- (a) Represented that certain product was composed entirely of unwelghted Bilk, through use of words "Silk Boucle" In descriptive matter referring thereto, and other similar statements in various advertising material, price lists, catalogs, and on lapels, notwithstanding fact product thus referred to was composed entirely of rayon and was not composed entirely of un· weighted silk, product of cocoon of silkworm, as long definitely and specifi· cally understood by purchasing and consuming public generally from said word, and as meaning unweighted product not subjected to process of metallic bath, and products of which have been long held in great public esteem and confidence for their preeminent qualities ; (b) Made use of such non disclosing designations as "Special Boucle" ou labels and in catalogs, to designate or describe rayon products and yarn whicll had appearance and feel of silk and were, by purchasing and consuming public, indistinguishable therefrom;

(c) :Represented that certain of his products were of a finer grade and higher quality, or of a different fiber, than was actually the fact, through use t)! words or phrases indicative to purchasing public of certain fiber, grade, or quality, such as "Cashmere," on labels and in advertising and catalogs, to designate and describe products which did not contain hair of cashmere goat, as long understood from word as applied to such products made there· from, and well and favorably known to purchasing publlc and associated by members thereof with word, as thus applied, but were composed of other wool and not hair aforesaid;

(d) Made use of words, associated in mind of purchasing and consuming public as descriptive of wool exclusively, to designate and describe certain yarii products composed in part thereof only, and in part of other material, through use of such terms as "Zephyr Tweed" and ''Tweed Velnette" on labels, advertising material, and in catalogs, to designate yarn product composed in part of wool and in part of rayon, and described latter as composed of "wool mixture and silk nub," notwithstanding fact compos!· tion thereof was of wool and rayon entirely, as aforesaid, and said products were not that certain kind of fabric made entirely of wool, as long well and favorably known to substantial portion of purchasing and consuming public from word "tweed" ; and SUPERYARN CO. 1661 1660 Complaint (e) Represented, through use of words "Manufacturer of Superyarn" and "Importer" on his billheads, busine!'ls cards and advertising material, that he· was manufacturer and importer of yarn or yarn fiber and material, notwithstanding fact he was not such manufacturer or importer, for dealing: directly with which there bas long been preference on part of substantial portion of purchasing and consuming public as affording, in its belief. lower prices, superior products and other advantages ; With tendency and capacity to mislead and deceive substantial ·portion of purchasing public into erroneous belief that all said representations were true, and that said individual had truthfully represented constituent fiber or material of his various products, and that they were actually made or imported by him, and with result, as consequence of such belief, that nmnber of consuming public purchased substantial volume of his said products and trade was diverted unfairly to him from competitors likewise engaged in sale and distribution in commerce and in District of Columbia of various, grades and types of knitting yarn:

lleld, That such acts and practices were all to the prejudice and injury of the public and competitors nnd constituted unfair methods of competition anil unfair and deceptive acts and practices in commerce. iVr. James L. Fort for the Commission.

Woods cfj Wertlieb, of New York City, for respondent. Complaint Pursuant to the provisions of the Federal Trade Commission Act, and by virtue of the authority vested in it by said act, the Federal Trade Commission, having reason to believe that Adolph Friedman, an individual, trading as Superyarn Co., has violated the provisions of said Act, and it appearing to the 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. Respondent, Adolph Friedman, is an individual trading as Superyarn Co., with his principal place of business located at 353 Grand Street, in the city of New York, State of New York. PAn. 2. Respondent is now and for a year or more last past has been engaged in the business of selling and distributing various grades and types of textile fabrics and knitting yarn. Respondent sells his products to members of the purchasing public situated in the various States of the United States and in the District of Columbia, and.causes said products when sold by him to be transported from his place of business in the State of New York to the purchasers thereof at their respective points of location in various States of the United States other than the State of New York and in the District of Columbia. Respondent maintains and at all times mentioned herein has maintained a course of trade in said products in commerce among 1662'" FEDERAL TRADE Colin\:IISSION DECISIONS Complaint 28 F. T. C. I,, and between the ,;_a~ious States of the United States and the District (, Columbia.•-1 '' r, ;. ' '' -1 't· '' ' . '' 'J bf . PAR. 3._ Resp~ndent is engaged in substantial competition in comir merce among aj1cl between the various States Q.f, the .l}_united States .micLthe: District of Columbia, with other individuals and with corr1 por~tions, firms. and partnerships engaged iri. the business of selling and d!stributiiig various grades 'and types of 1.."'litting yarn in com-I' i -in~ercethe amol1g,District (~_of Columbia.between11 the. variou_s States of the United States and- I : PAR. 4 .. lri the course and conduct of his· said business the respond- ·ent has im·gaged in the· practice of falsely representing the constituent •.fiber(' . . or . .~ateiiiil'. r .. ~ of which., . the 'v~rious prod~lcts sold. imd:. distributed. II by liim are made, by means of false representatiops on labels attached to. his product? and:in various advertising matter and ·by a failure to: disclos~ the rayon content of certain of his products. In furtherance of this practice and for the purpose of inducing the purchase o:f his said products, respondent has caused false· statements and repre- :sentations p~1rportil2-g to be descriptive of sw;h products and their Tespective constituent fiber or material to be inserted in catalogs, price lists, and in advertisements appearing in magazines, newspapers and in other publications distributed among prospective purchasers_ 6£. -said products situated in v_ariou:s States of the United States and iri. the District of Columbia .

. PAR .. 5. 'Among· and typical of the acts and practices above described, the respondent represents certain of his products as b~ing c6mposed~eritirely of silk, the' product of tllEi~'cocoon of the silkworm, ,d1en in -fad:- said products are composed entirely of rayon. As an example of this practice the respondent causes certain advertisements to: 'be inserted in various publications, of which· the following is an example_e: · '·- :·silk Boucle 88¢ SUPERYARNS _Lowest prices. New textures and shadings. 1001 rich, bright, lasting colors. Satisfaction guaranteed. SUPERYARN CO., 'DEPT. D 353 Gr~nd Street, New York, New York. Free Samples. By means o:f. the above statement, together with other and similar statenients appearingin various advertising material, price lists, catalogs, and on labels, distributed' as aforesaid, the respondent represents !: that said product is composed entirely of' unweighted siik, the product' of the cocoon· of the silkworm; when in truth and in fa~t said ·product is composed ~ntirely:~f rayon. ' <·PAR. -6.· Another_ and typical act. and practice engaged in by the respmiclei1tin falsely representing his products, is·· the use-'on labels and in catalogs, distributed as aforesaid, of designations or descrip- I i''• :III SUPERYARN CO~ · 1663 1660 Complaint tions applied to rayon products which :Q.ave. the -~ppet!>:ran_c~ and feel of silk, and are by the purchasing and constm~ng public ~l).distin7 guishable from silk, and which designations do not disclose that said products are composed of rayon. As a typical example of this prac-. tice_ the respondent uses the term "Special· Bo.uc)e" in the ~anner: and form above_ described to designate and describe a, product .composed entirely of rayon, and fails to disclose the fact that said yarn if:! com;-· posed of rayon.

P.AR. 7. Typical also of said acts and practices, the respontlent represents .certain of his products as being of a finer grade; higher quality or of a different fiber than is actually the fact by_ the use of words .. or phrases indicative to the purchasing public of a certain fiber, grade or qui"Llity; Ai1 examr>le of this practice is the respondent's use of the ~ord "cashmere" on labels; in advertising material, and in catalogs-:distribuhid' as· aforesaid, to: designate. and describe products which do not contain: ~he-hair of the cashmere goat but instead- are composed of other wool.

- PAn: ;8:. A furthe'rtypical act and practiceomthe part of the respondent is the use·of words n;which are associated in the minds of the purchas~ ing and consumi1ig 'l)tiblic as being descriptive of wool :exclusively, to designate and describe certain yarn products, as aforesaid, which are composeCI -in -part' of. wool and in ·pai·t- :6£ other materials .. As an example ·of this: ·ptactice the -respondent· usef:!·dhe·.·timns "Zephyr Tweed" and "Tweed Velnette" on labels, in advertising material,: and in crrtalogs, disthbuted as aforesaid; to-designate a yarn product composed in l)art '6£ -~';ool' and in part of rayon. In connection with the use of "Tweecf Velnette;" -I;esponclE)ilt describes, said product as being composed' of a·"wool mixture ·:md silk 'nl.tb" whim in' fact 'said prod-· uct is composed· entirely of wool and rayon. · · PAR. 9.- The word~"silk" .for many years last past has· had-and still has, in the minds of the purchasing and consuming' public generally, a definite and specific meaning, to wit; the product of the 'cocoon of the silkworm. 'Silk -products for many years have held, and still hold, great ptiblic esteem and confidence for their preeminent ·qualities. The unqualifiecl' ,+ciM ''silk" has, in the minds of the purchasing and consuming. public,: the --definite and specific meaning of unweighted siik or silk which has not been subjected to the process 'of a metallic bath. · · · -- · · · · · The word "cashmere" has long -been applied'to a particular type of wool fiber that'is inade:from· tlie fiair-other:citslimere.goat,·and which product has for a long time been known well and favorably to the plirchasing· public. The woi·d "cashmere" when used .in connection with the designation and description of yarns or other products hav.;. •0 1664 FEDERAL TRADE COMl\IISSION DECISIONS Complaint 28 F. '.r. C. ing the general appearance of wool fibers, is considered by members of the purchasing public as being a descriptive designation of a cashmere wool product composed entirely of the hair of the cashmere goat.

The word "tweed" is a word long and favorably known to a substantial portion of the purchasing and consuming public as a certain kind of fabric composed entirely of wool.

The word "rayon" is the name of a chemical fiber or fabric which simulates silk in that it has the appearance and feel of silk and is by the purchasing public practically indistinguishable from silk. PAR. 10. In addition to the acts and practices above described, the respondent by use of the words "Manufacturer of Superyarn" and "Importer" on billheads, business cards, and advertising material, represents that he is a manufacturer and importer of yarns or yarn fiber and material. In truth and in fact respondent is not a manufacturer of yarn and is not an importer of yarns or yarn fiber or material.

There has long been a preference on the part of a substantial portion of the purchasing and consuming public for dealing directly with the manufacturer or importer in the belief that lower prices, superior products and other advantages can thereby be obtained, and the claims of respondent that he is a manufacturer and importer would have a tendency to cause such persons to purchase respondents' products.

PAR. 11. The use by the respondent of the aforesaid acts and practices has had and now has a tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that all of said representations are true and that the respondent has truthfully represented the constituent fiber or material of his various products and that said products are manufactured or imported by the respondent. On account of this erroneous and mistaken belief a number of the consuming public have purchased a substantial volume of respondent's products with the result that trade has been diverted unfairly to the respondent from his competitors who are also engaged in the sale and distribution in commerce between and among the various States of the United States and in the District of Columbia, of various grades and types of knitting yarn. As a consequence thereof injury has been done and is now being done by respondent to competition in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 12. The aforesaid acts and practices of respondent as herein alleged are all to the prejudice and injury of the public and of re- I I' SUPERYARN CO. 1665 1660 Findings I; spondent's competitors, and constitute unfair methods of competition I. in commerce and unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on April 1, 1939, issued, and on April 3, 1939 served, its complaint in this proceeding upon respondent, Adolph Friedman, trading as Superyarn Co., charging him with unfair methods of competition in commerce and unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On April 27, 1939, respondent filed his answer, in which answer he admitted all the material allegations of fact set forth in said complaint and waived all intervening procedure and further hearing as to said facts. Thereafter the proceeding regularly came Qn for final hearing before the Commission on the said complaint and the answer thereto, and the Commission, having duly considered the matter and being now fully advised in the premises, finds that this proceeding is in the interest of the public, and makes this its findings as to the facts and its conclusion drawn therefrom. FINDINGS .AS TO THE FACTS II PARAGRAPH 1. Respondent, Adolph Friedman, is an individual I trading as Superyarn Co., with his principal place of business located I at 353 Grand Street in the city of New York, State of New York. , I PAR. 2. Respondent is now, and for a year or more last past has II been, engaged in the business of selling and distributing various I grades and types of textile fabrics and knitting yarn. Respondent sells his products to members 'of the purchasing public situated in various States of the United States and in the District of Columbia, and causes said products when sold by him to be transported from his place of business in the State of New York to the purchasers thereof at their respective points of location in various States of the United States other than the State of New York and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in said products in commerce among- and between the various States of the United States and in the District of Columbia.

PAR. 3. Respondent is engaged in substantial competition in commerce among and between the various States of the United States and the District of Columbia, with other individuals and with corpora- 1666 FEDERAL TRADE COMMISSION DECISIONS . Findings 28F.T.C.

tions, firms, and partnerships engaged in the business of selling and distributing various grades and types of knitting yarn in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 4. In the course and conduct of his said business, the respondent has engaged in the practice of falsely representing the constituent fiber or material of which the various products sold and distributed by him are made, by means of false representations on labels attached to his products and in various advertising matter, and by failure to disclose the rayon content of certain of his products. In furtherance of this practice and for the purpose of inducing the purchase of his said products, respondent has caused false statements and representations purporting to be descriptive of such products and their respective constituent fiber or material to be inserted in catalogs, price lists, and in advertisements appearing in magazines, newspapers and in other publications distributed among prospective purchasers of said products situated in various States of the United States and in the District of Columbia.

PAR. 5. Among and typical of the acts and practices above described, the respondent represents certain of his products as being composed entirely of silk, the product of the cocoon of the silk worm, when, in fact, said products are composed entirely of rayon. As an example of this practice, the respondent causes certain advertisements to be inserted in various publications such as the following: Silk Boucle 88¢ SUPERYARNS Lowest prices. New textures and shadings. 1001 rich, bright, lasting colors. Satisfaction guaranteed.

SUPERYARN CO. DEPT. D.

353 Grand Street, New York, New York. Free Samples. By means of the above statement, t?gether with other and similar statements appearing in various advertising material, price lists, catalogs, and on labels, distributed as aforesaid, the respondent represents that said product is composed entirely of unweighted silk, the product of the cocoon of the silk worm, when, in truth and in fact, said product is composed entirely of rayon. PAR. 6. Another and typical act and practice engaged in by the respondent in falsely representing his products is the use on labels and in catalogs, distributed as aforesaid, of designations or descriptions applied to rayon products which· have the appearance and feel of silk, and are by the purchasing and consuming public indistinguishable from silk, and which designations did not disclose that said products are composed of rayon. As a typical example of this practice the respondent uses the term "Special Boucle," in the manner SUPERYARN CO. 1667 1660 Findings and form above described, to designate and describe a product composed entirely of rayon, and fails to disclose the fact that said yarn is composed of rayon.

PAR: 7. Typical also of said acts and practices, the respondent represents certain of his products as being of a finer grade and a higher quality or of a different fiber than is actually the fact, by the use of words or phrases indicative to the purchasing public of a certain fiber, grade or quality. An example of this practice is the respondent's use of the word "cashmere" on labels, in advertising material, and in catalogs, distributed as aforesaid, to designate and describe products which do not contain the hair of the Cashmere goat but instead are composed of other wool.

PAR. 8. A further and typical act and practice on the part of the respondent is the use of words which are associated in the minds of the purchasing and consuming public as being descriptive of wool r exclusively, to designate and describe certain yarn products, as afore-said, which are composed in part of wool and in part of other ma- I terial. As an example of this practice, the respondent uses the terms" Zephyr Tweed" and "Tweed Velnette" on labels, advertising ! material, and in catalogs, distributed as aforesaid, to designate a yarn product composed in part of wool and in part of rayon. In connec- l! tion with the use of "Tweed V elnette," respondent describes said Iproduct as being composed of a "wool mixture and silk nub," when in fact said product is composed entirely of wool and rayon. I PAR. 9. The word "silk" for many years last past has had, and still has, in the minds of the purchasing and consuming public generally, a definite and specific meaning, to wit: The product of the cocoon of the silk worm. Silk products for many years have held, and still hold, great public esteem and confidence for their preeminent qualities. The unqualified word "silk" has, in the minds of the purchasing and consuming public, the definite and specific meaning of unweighted silk or silk which has not been subjected to the process of a metallic !I• I bath.

The word "cashmere" has long been applied to a particular type of wool fiber that is made from the hair of the Cashmere goat, and which product has for a long time been known well and favorably to the purchasing public. The word "cashmere," when used in connection with the designation and description of yarns or other products II having the general appearance of wool fibers, is considered by members of the purchasing public as being a descriptive designation of a j' cashmere wool product composed entirely of the hair of the Cashmere goat.

Oruer :::!8F.T.C. The word "tweed" is a word long and favorably known to a substantial portion of the purchasing and consuming public as a certain kind of fabric composed entirely of wool. · The word "rayon" is the name of a chemical fiber or fabric. which simulates silk in that it has the appearance and feel of silk and is, by the purchasing public, practically indistinguishable from silk. PAR. 10. In addition to the acts and practices above described, the respondent, by use of the words "Manufacturer of Superyarn" and "Importer", on bill heads, business cards and advertising material, represents that he is a manufacturer and importer of yarn or yarn · fiber and material. In truth and in fact, respondent is not a manufacturer of yarn and is not an importer of yarn or yarn fiber or material.

There has long been a preference on the part of a substantial portion of the purchasing and consuming public for dealing directly with a manufacturer or importer in the belief that lower prices, superior products and other advantages can thereby be obtained. PAR. 11. The use by the respondent of the aforesaid acts and practices has had, and now has, tt tendency and capacity to mislead and deceive a substantial portion of the purchasing public into the erroneous belief that all of said representations are true and that the respondent has truthfully represented the constituent fiber or material of l.)is various products and that said products are actually manufactured or imported by the respondent. On account of this erroneous and mistaken belief, a number of the consuming public have purchased a substantial volume of respondent's products with , the result that trade has been diverted unfairly to the respondent from his competitors who are also engaged in the sale and distribution in commerce between and among the various States of the United States and in the District of Columbia of various grades and types of knitting yarn.

CONCLUSION The aforesaid acts and practices of respondent, as herein found, are all to the prejudice and injury of the public and of respondent's competitors and constitute unfair methods of competition in commerce, and unfair and deceptive acts and practices in commerce, within the intent and meaning of the Federal Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commission upon the complaint of the Commission and the answer of the respondent, in which answer respondent admits all the material SUPEitYARN CO. 1669 1660 Order allegations of fact set forth in said complaint and states that he waives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts ami conclusion that said respondent has violated the provisions of the Federal Trade Commission Act.

It i~ ordered, That the respondent, Adolph Friedman, his representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of various grades and types of textile fabrics and knitting yarn and other like articles of merchandise in commerce, as "commerce" is defined in the Federal Trade Commission .Act, do forthwith cease and uesist from:

1. Representing that respondent's products are composed of fibers or materials other than those of which they are actually composed. 2. Using the words "Tweed" or "'Vool" or any other words or terms of similar import and meaning, to describe or designate any fabric or product which is not composed entirely of wool. 3. Representing that the quality, grade or character of respondent's products are superior to or different from their true quality, grade or character.

4. Using the word "Cashmere" or any other word or words of similar import or meaning to uescribe or designate any fabric or product which is not composed wholly of the hair of the Cashmere goat.

5. Using the unqualified word "silk" or any other word or words of similar import or meaning, to designate or describe fabrics which are not composed wholly of unweighted silk, the product of the cocoon. of the silkworm, except that in the case of a fabric or product 'I composed in part of unweighted silk and in part of materials other than unweighted silk, such words may be used as descriptive of the silk content if there is u·sed in immediate connection or conjunction therewith, in letters of equal size and conspicuousness, a word or words accurately describing and designating each constituent fiber or material thereof in the order of its predominance by weight, beginning with the largest single constituent. 6. Advertising, offering for sale or selling fabrics or any other products composed in whole or in part of rayon without clearly disclosing the fact that such fabrics or products are composed of rayon, and when such fabrics or products are composed in part of rayon and in part of other fibers or materials, such fibers or materials, including rayon, shall be named in the order o£ their predominance by weight, beginning with the largest single constituent. Order 28F. T. C.

7. Representing that the respondent is a manufacturer, unless and until he actually owns and operates or directly and absolutely con· trois a manufacturing plant wherein said products are actually manufactured.

8. Representing that respondent is an importer, unless he directly imports from a foreign country a substantial por:tion of the products offered for sale and sold by him.

This order shall not be construed as approving the use of the term "wool" to designate, describe or refer to any wool which is not virgin or unused wool.

It is further ordel'ed, That the respondent shall, within 60 days after the service upon him of this order, file with the Commission a report in writing, setting forth in detail the manner and form in which he has complied with this order.

GEORGE HENRY BRINKLER 1671 Syllabus