Siegel-Kahn Co., Inc

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IN THE 1\IATI'ER OF SIEGEL-KAHN COMPANY, INC., DOING BUSINESS UNDER THAT NAME AND AS l\IANSHIRE MILLS AND SNUG- INTUCKS MILLS COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION 0F SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, l'JH Docket 4204. Complaint, July 80, 1940-Decision, Oct. 9, 1940 Where a corporation engaged in sale and distribution of women's undergarments to purchasers in various other States and in the District of Columbia, and, In course and conduct of its said business, in practice of representing falsely constituent fibers or materials of which its products were made, through legends appearing on labels attached thereto, and by other means- ( a) Represented, as typical of such false representations, that certain of its products designated "Snuglntucks" contained, as case might be, 30 percent wool and 15 percent wool, through statements "8 Ply crotch Snugintucks 30% pure wool," and "8 Ply crotch Snugintucks 15% pure wool," facts being ueither of said products contained percentage of wool specified, but actual fiber content thereof was 88 percent cotton, 9 percent rayon and 3 percent wool;

(b) Represented, as aforesaid, that its products designated "Dr. Ames Treat Yourself Woolywarms Multi-Ply Crotch, 30% Pure Wool" and "Dr. Ames Treat Yourself Woolywarms Multi-Ply Crotch, 15% Pure Wool" contained 30 percent and 15 percent wool, respectively, facts being product represented as containing 30 percent wool was composed of 85 percent cotton and only 15 percent wool, while product represented as containing 15 percent wool contained 90 percent cotton and only 10 percent wool; (c) Represented, through use of word '''Voolywarms" in designating its product "Dr. Ames Treat Yourself Woolywarms Multi-Ply Crotch, Full Combed," unaccompanied by any specific designation of fiber content thereof, that said product contained substantial percentage of wool, facts being it contained no wool whatsoever, but was composed entirely of cotton; (d) Sold and distributed undergarments composed In part of rayon, without disclosing such garments' content of such chemically manufactured fiber or fabric, which, when so made as to simulate wool, has appearance and feel thereof and is by purchasing publi~ practically indistingulshaule from wool, or fleece or hair obtained from sheep, as long definitely understood in minds of purchasing public from word "wool," fabrics of which have established reputation for possessing superior cold resisting and wearing, as well as other superior qualities over those made of rayon, and to which purchasers and prospective purchasers of undergarments, therefore, decidedly prefer same ;

(e) Represented, through use of word "l\lills" In trade names employed by It, and by other means, that It owned and operated a mill or mills where Its products were made, and that it was manufacturer thereof, facts being it purchased all its products from others, did not own or operate any mills, and was not a manufacturer of products, for dealing directly with whom, rather than with wholesalers, jobbers or other dealers, there is preference on Complaint 31 F. T. C. part of substantial portion of purchasing public, by reason, in part, of belief that by so dealing lower prices and other advantages may be obtained; and (f) Represented, through use of term "Dr. Ames" In connection with certain ot: its products, as aforesaid, that such products were designed, recommended or approved by a physician, facts being none of them had been thus designed, recommended or approved;

With effect of misleading and deceiving substantial portion of purchasing public into erroneous and mistaken belief that its said products possessed certain qualities and characteristics which they did not in fact possess, and with result, as consequence of such erroneous and mistaken belief, engendered as above set forth, that such public was induced to, and did, purchase substantial quantities of Its said products: Held, That such acts and practices, under the circumstances set forth, were all to the prejudice and injury of the public, and constituted unfair an•l deceptive acts and practices in commerce.

Mr. Donmxm R. Divet for the Commission.

Col\IPLAINT 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 Siegel-Kahn Co., Inc., a corporation doing business under that name and as Manshire Mills and as Snugintucks l\Iills, hereinafter referred to as respondentr 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. The respondent, Siegel-Kahn Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business at 93 'Vorth Street in the city of New York, State of New York. Respondent trades under its corporate name and also under the names Manshire Mills and Snugintucks :Mills. PAR. 2. Respondent is now and for more than one year ]art past has been engaged in the business of selling and distributing women's undergarments. Respondent causes its said products, when sold to be transported from its place of business in the State of New York, or from the places of business of the conceri1s from which it purchases said products, to purchasers thereof located in various other States of the United States and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in its said products in commerce among and betwt>en the various States of the United States and in the District of Columbia. PAR. 3. In the course and conduct of its business the respondent has. engaged in the practice of falsely represe.nting the constituent fibers. SIEGEL-KAHN CO.~ INC., ETC. 1095 1U!J3 Complaint or materials of which its products are made, such representations being made by means of le.gends appearing on labels attached to its products, and by other means. Among and typical of such false representations are the following:

8 Ply crotch Snugintucks 30% pure wool.

8 Ply crotch Snugintucks 15% pure wool.

Dr. Ames Treat Yourself Woolywarms 1\Inlti-Ply Crotch 30'lc Pure Wool. Dr. Ames Treat Yourself Woolywarms 1\Iulti-Ply Crotch, 15% Pm·e Wool. Dr. Ames Treat Yourself Woolywarms Multi-Play Crotch, Full Combed. PAR. 4. Through the use of the foregoing representations and others of similar import not specifically set out herein the respondent represents that certain of its products designated "Snugintucks" contain 30 percent and 15 percent wool, respectively. In truth and in fact, neither of said products contains the specified percentage of wool, the actual fiber content of each of said products being 88 percent cotton, 9 percent rayon, and 3 percent wool. Respondent further represents, in the maimer aforesaid, that its products designated "Dr. Ames Treat Yourself \Voolywarms Multi- Ply Crotch, 30% Pure \V ool" and "Dr. Ames Treat Yourself Woolywarms Multi-Ply Crotch, 15% Pure \Vool" contain 30 percent wool and 15 percent wool, respectively. In truth and in fact the product represented as containing 30 percent wool is composed of 85 percent cotton and only 15 percent wool, while the product represented as containing 15 percent wool contains 90 percent cotton and only 10 percent wool.

Through the use of the word "\Voolywarms" in designating its said product "Dr. Ames Treat Yourself \V oolywarms l\Iulti-Ply Crotch, Full Combed," unaccompanied by any specific designation of the fiber content of said product, the respondent n'presents that said product contains a sub:,;tantial percentage of wool. In truth and in fact, such product contains no wool whatsoHer, but is composed entirely of cotton. · PAR. 5. A further practice on the part of the respondent is the sale and distribution of nndergarml'nts composed in part of rayon, without disclosing the rayon content of such garments. Rayon is a chemically manufactured fiber or fabric v•which may be so manufactured as to simulate wool, and when so manufactured it has the appearance and feel of wool and is by the purchasing public practically indistinguishable therefrom.

The word "\Vool" for many years last past has had and now has in the minds of the purchasing public a definite and specific meaning, to wit: fleece or hair obtained from sheep. Fabries made of wool have established a reputation for possessing superior cold-resisting and wearing qualities, as well as other superior qualities, onr fabrics 2!>H!'itOm-41-vol. 31 -72 1096 FEDER;\L TRADE COMMISSION DECISIONS Findings 31 F.T.C. made of rayon. Because of such reputation, purchasers and prospective purchasers of undergarments have a decided preference for wool fabrics over fabrics composed of rayon.

PAR. 6. The respondent has also represented, through the use of the word "Mills" in its trade names Manshire Mills and Snugintucks Mills, and by other means, that it owns or operates a mill or mills where its products are manufactured and that it is-the manufacturer of such products. In truth and in fact, the respondent does not own, or operate, any mill, nor does it manufacture any of its products. The respondent purchases all of its products from other parties. PAR. 7. The use by the respondent of the word ".Mills" in its trade names as aforesaid constitutes within itself a false and misleading representation that the respondent owns or operates a mill or mills in connection with its said business, and that it manufactures its said products.

PAR. 8. There is a preference on the part of a substantial portion of the purchasing public for dealing directly with the manufacturer of products rather than with wholesalers, jobbers, or other dealers, such preference being due in part to a belief on the part of the public that by dealing directly with the manufacturer lower prices and other advantages may be obtained.

PAR. 9. Through the use of the term "Dr. Ames" in connection with certain of its products as aforesaid the respondent also represents that such products are designed, recommended or approved by a physician. In truth and in fact, none of respondent's products have been designed, recommended or approved by any physician. PAR. 10. The acts and practices of the respondent as herein set forth have the tendency and capacity to, and do, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that respondent's products possess certain qualities and characteristics which they do not in fact possess, and as a result of such erroneous and mistaken belief, engendered as herein set forth, the purchasing public has been induced to, and has, purchased substantial quantities of respondent's products. PAR. 11. The aforesaid acts and practices of the respondent as herein alleged are all to the prejudice and injury of the public and constitute 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 Onder Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on July 30, 1940, issued and subsequently served its complaint in this proceeding upon responde.nt SIEGEL-KAHN CO., INC., ETC. 1097 1093 Findings Seigel-Kahn Co., Inc., a corporation, doing business under that name and as Manshire Mills and as Snugintucks Mills, charging it with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. On September 9, 1940, the respondent filed its ans,ver, in which answer it 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 on 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 PARAGRAPH 1. The respondent, Siegel-Kahn Co., Inc., a corporation, organized, existing, and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business at 93 'Vorth Street in the city of New York, State of New York. Respondent trades under its corporate name and also under the names Manshire Mills and Snu!!intucks Mills. PAR. 2. Respondent is now and for more than 1 year last past has been engaged in the business of selling and distributing women's undergarments. Respondent causes its said products, when sold, to be transported from its place of business in the State of New York, or from the place of business of the concerns from which it purchases said products, to purchasers thereof located in various other States of the United States and in the District of Columbia. Respondent maintains, and at all times mentioned herein has maintained, a course of trade in its said products in commerce among and between the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of its business the respondent has engaged in the practice of falsely representing the constituent fibers or materials of which its products are made, such representations being made by means of legends appearing on labels attached to its products, and by other means. Among and typical of such false representations are the following:

8 Ply crotch Snuglntucks 30% pure wool.

8 Ply crotch Snugiutncks 15% pure wool.

Dr. Ames Treat Yourself \Vool3·warms 1\Iulti-Ply Crotch 30% Pure Wool. Dr. Ames Treat Yourself \Voolywarms Multi-Ply Crotch, 15% Pure Wool. Dr. Ames Treat Yourself \Voolywnrms ~Iulti-Ply Crotch, Full Combed. 1098 FEDERAL TRADE COM!\HSSION DECISIOKS Findings 31 F. T. C. PAR. 4. Through the use of the foregoing representations and others of similar import not specifically set out herein, the respondent represents that certain of its products designated "Snugintucks'' contain 30 percent and 15 percent wool, respectively. In truth and in fact, neither of said products contains the specified percentage ·of wool, the actual fiber content of each of said products being 88 percent cotton, 9 percent rayon, and 3 percent wool. Respondent further represents, in the manner aforesaid, that its products designated "Dr. Ames Treat Yourself ·woolywarms Multi- Ply Crotch, 30% Pure 'Vool" and "Dr. Ames Treat Yourself Woolywarm l\Iulti-Ply Crotch, 15% Pure ·wool" contain 30 percent and 15 percent wool, respectively. In truth and in fact, the product represented as containing 30 percent wool is composed of 85 percent cotton and only 15 percent wool, while the product represented as containing 15 percent wool contains ~0 percent cotton and only 10 percent wool.

Through the use of the word "'Voolywarms" in designating its said product "Dr. Ames Treat Yourself "\Voolywarms l\Inlti-Ply Crotch, Full Combed," unaccompanied by any specific designation of the fiber content of said product, the respondent represents that said product contains a substantial percentage of wool. In truth and in fact, such product contains no wool whatsoever but is composed entirely of cotton.

PAR. 5. A further practice on the part of the respondent is the sale and distribution of undergarments composed in part of rayon, without disclosing the rayon content of such garments. Rayon is a ehemically manufactured fiber or fabric which may be so manufactured as to simulate wool, and when so manufactured it has the appearance and feel of wool and is by the purchasing public practically indistinguishable therefrom.

The word "wool" for many years last past has had and now has in the minds of the purchasing public a definite and specific meaning, to wit: fleece or hair obtained from sheep. Fabrics made of wool have established a reputation for possessing superior coldresisting and wearing qualities, as well as other superior qualities, over fabrics made of rayon. Because of such reputation, purchasers and prospective purchasers of undergarments have a decided preference for wool fabrics over fabrics composed of rayon. PAR. 6. The respondent has also represented, through the use of the word "Mills" in its trade names Manshire ~!ills and Snugintucks l\Iills and by other means, that it owns or operates a mill or mills where its products are manufactured and that it is the manufacturer of such products. In truth and in fact, the respondent does SIEGEL-KAHN CO., INC., ETC. 1099 1003 Order llot own, or operate, any mill, nor does it manufacture any of its products. The respondent purchases all of its products from other parties.

PAR. 7. The use by the respondent of the word "Mills" in its trade names as aforesaid constitutes within itself a false and misleading representation that the respondent owns or operates a mill or mills in connection with its said business, and that it manufactures its said products.

PAR. 8. There is a preference on the part of a substantial portion of the purchasing public for dealing directly with the manufacturer of products rather than with wholesalers, jobbers, or other dealers, luch preference being due in part to a belief on the part of the public that by dealing directly with the manufllcturer lower prices and other advantages may be obtained.

PAR. 9. Through the use of the term "Dr. Ames" in connection with certain of its products as aforesaid the respondent also represents that such products are designed, recommended or approved by a phy- Hcran. In truth and in fact, none of respondent's products have been designed, recommended or approyed by any physician. PAR. 10. The acts and practices of the respondent as herein set forth have the tendency and capacity to, and do, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that respondent's products possess certain qualities and characteristics which they do not in fact possess, and as a result of such erroneous and mistaken belief engendered as herein set forth, the purchasing public has been induced to, and has, purtchased substantial quantities of respondent's products. C"OXCLUSION The aforesaid acts and practices of the respondent as herein found are all to the prejudice and injury of the public and constitute 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 allegations of fact set forth in said complaint, and states that it waives all intervening procedure and further hearing as to said facts, and the Commission having made its findings as to the facts and conclu- Order 31F. T. C.

sion that said respondent has violated the provisions of the Federal Trade Commission Act.

It is ordered, That the respondent, Siegel-Kahn Co., Inc., a corporation, trading under that name and under the names Manshire :Mills and Sungintucks Mills, or trading under any other name or names, its officers, representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of undergarments in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from :

1. Representing that respondent's products are composed of fibers or materials other than those of which such products are actually composed.

2. Representing that any garment or fabric contains a stated percentage of wool unless such garment or fabric does in fact contain wool in the proportion stated.

3. Advertising, offering for sale or selling garments or fabrics composed in whole or in part of rayon, without clearly disclosing the fact that such garments or fabrics are composed of rayon, and when such garments or fabrics 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 of their predominance by weight, beginning with the largest single constituent. 4. Using the term "'Voolywarms" or any other term containing the word "wool" to designate, describe or refer to any garment or fabric which is not composed entirely of wool, provided, however, that such terms may be used to designate or describe any garment or fabric composed of wool and other materials when the true percentage of wool contained therein is clearly and adequately disclosed. 5. Using the word "Doctor" or "Dr." to designate or describe any garment or fabric which has not in fact been designed, recommended or approved by physicians.

6. Using the word "Mills" or "Mill" as a part of respondent's trade name or names, or otherwise representing that respondent owns or operates a mill or that respondent manufactures the products sold by it.

It i~ further ordered, That the rpspondent shall, within 60 days after service upon it 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 this order.

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