Victor Hat Co

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

IN' THE Matter OF VICTOR HAT COMPANY COMPLAINT, FINDINGS, AND ORDER IN REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket 1,629. Complaint, Nov. 12, 191,1-Decision, Jan. 26, 191,2 Where an individual engaged in the manufacture of wonwn's hats from materials obtained from old and worn felt hats purchased by him, and which, atter being cleaned, shaped and fitted with new trimmings had the appearance of new; and in the interstate sale and distribution of said products- Sold his said bats with no label, marking or designation stamped thereon or attached thereto to indicate.that they were in reality made from old and used hat bodies, to wholesale aud retail dealers by whom they were resold to the purchasing public without disclosure of aforesaid fact; With result that a substantial portion of such public was misled Into believing that the products In question were monufnctured entirely from new materials, and into purchase of substantial quantities thereof; and there was thereby placed in the hands of dealers means whereby they might similarly deceive the purchasing public:

Held, That such acts and practices, under the circumstances set forth, wet·e aU to the prejudice and injury of the public. and cons;tltuted unfair and d ..ceptive acts and practices in commerce.

Mr. L. E. Oreel, Jr., for the Commission.

Mr. Irving Block, of Chicago, Ill., for respondent. Col\IPLAI:I-."T 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 bdieve that Frank Gorr, individually and trading as Victor Hat Co., hereinafter referred to as respondent, 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, Frank Gorr, is an individual, trading as Victor Hat Co., and has his principal office and place of business at 153 North Wabash A venue, Chicago, Ill PAR. 2. Respondent is now, and for several years last past, has been, engaged in the business of mau,ufacturing women's hats from felt and other materials obtained from old, used, und second-hand hats, and of selling the same to retailers, jobbers, or wholesale dealers in the various States of the Unit~d States. Respondent causes said hats, when sold, to be transported from his place of business in the State of Illinois to VICTOR HAT CO. 573 5i2 Complaint the aforesaid purchasers located in the various States of the United States other than the State of Illinois. Respondent maintains and at all times mentioned herein has maintained a course of trade in said hats 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 his business, respondent buys second-hand, old, worn, and previously used felt hats. The old, worn, and previously used felt hat bodies are cleaned and shaped and fitted with new trimmings and sold by respondent to dealers, who, in turn, sell said hats to the purchasing public.

PAR. 4. The aforesaid old, worn, and previously used hat bodies, after being manufactured into hats, us hereinabove described, have the appearance of new hats manufactured from felt and other materials which have never been worn or used. 'Vhen articles which are manufactured from second-hand or used materials which have the appearance of being manufactured from new materials, are offered to the purchasing public, and such articles are not clearly and conspicuously labeled as being manufactured from. used or second-hand materials, they are easily and readily accepted by members of the purchasing public as being manufactured entirely from new materials. Said hats are sold to retailers and other dealers without any label, marking or designation stamped thereon or attached thereto, to indicate to the purchasing public or to the dealers that said hats are, in fact, manufactured from old, worn, and previously used hat bodies. Said hats are resold to the purchasing public without the fact being disclosed that they ure manufactured from hat bodies and other materials which have been previously worn or used, and a substantial portion of the purchasing public is thereby misled to believe that they are, in fact, new hats manufactured entirely from new materials. As a result of this erroneous and mistaken understanding and belief, s1,1bstantial portions of respondent's hats are purchased by members of the public.

PAR 5. Through the use of the aforesaid acts and practices, the respondent places in the hands of dealers the means and instrumentalities whereby said dealers may deceive or mislead members of the purchasing public into the erroneous and mistaken belief that they are purchasing hats manufactured from new materials, when, in fact ~aid hats are composed £>ntirely or in part of old, second-hand, and })reviou!>ly used hat bodies.

PAR. 6. The n foresn id acts nncl practices of the respondent, as herein alleged. are all to the prejudice and iiijlH'y of the public and constitute unfair and decepti,·e nets nnd'practices in commerce within the intent and meaning of the Federal Trade Commission Act. Findings :HF.T.C.

REPORT, FINDINGS AS TO THE FACTS, AND ORDER Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission, on November 12, 1941, issued, and subsequently £served its complaint in this proceeding upon respondent, Frank Gorr, individually, and tr,ruling as Victor Hat Co., charging him with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. After the issuance of said complaint and the filing of re>"pondent's answer, the Commission, by order entered herein, granted rf.lspondent's motion for permission to withdraw said answer and to substitute therefor an answer admitting all the material allegations of fact set forth in said complaint and waiving all intervening procedure and further hearings a» to said facts, which substitute answer was duly filed in the office of the Commission. Thereafter this proceeding regularly came on for final hearing before the Commission on the said complaint and substitute answer, and the Commission, having duly considered the matter and being now fully ad vised in the premises, finds that this proceeding is in the interest of the public and makes this its findings as .o the facts and its conclusion drawn therefrom : FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent, Frank Gorr, is an individual, trading as Victor Hat Co., and has his principal office and place of business as 153 North Wabash A venue, Chicago, Ill.

PAR. 2. Respondent is now, and for several years last past, has been, engaged in the business of manufacturing women's hats from felt and other materials obtained from old, used, and second-hand hats, and of selling the same to retailers, jobbers, or wholesale dealer3 in the various States of the United States. Respondent causes said hats, when sold, to be transported from his place of business in the State of Illinois to the aforesaid purchasers located in the various States of the United Statt>s other than the State of Illinois. Re,. spondent maintains and at all times mentioned herein has main· tained a course of trade in said hats in rommerce among and between the various States of the United States and in the District of Columbia.

PAR. 3. In the course and conduct of hi3 business, respondent buys second-hand, old, worn, and previously used felt hat.'l. The old, worn, and previously used felt hat bodies are cl~:.aned and shaped and fitted with new trimmings and sold by respondent to dealers, who in turn, sell said hats to the purchasing public. ' VICTOR HAT CO. 575 Order PAR. 4. The aforesaid old, worn, and previously used hat bodies, after being manufactured into hats, as hl~reinabovc described, have the appearance of new hats manufactured from felt and other materials which have nl;lver been worn or used. 'Vhen articles which are manufactured from Eecond-hand or used materials and which have the appearance of being manufactured from new materials, are offered to I . the purchasing public, and such articles are not clearly and conspicuously labeled as being manufactured from used or second-hand materials, they are easily and readily accepted by members of the purchasing public as being manufactured £>ntirely from new materials. Said hats are sold to retailers and other dealers without any label, marking, or designation stamped thereon or attached thereto, to indicate to the purchasing public or to the dealers that said hats are, in fact, manufactured :from old, worn, and previously used hat bodies. Said hats are resold to the purchasing puolic without the fact being disclosed that they are manufactured from hat bodie-s and other materials which have been previously worn or used, and a substantial po~tion of the purchasing public is thereby misled to believe that they are, in fact, new hat'.> manufadured entirely from new materials. As a result of. this erroneous and mistaken understanding and belief, substantial portions of respondents hats are purchaseU. by members of the public.

PAn. 5. Through the use of the aforesaid acts and practices, the respondent places in the hands of dealers the means and instrumentalities whereby said dealers may deceive or mislead members of the purchasing public into the erroneous and mistaken belief that they are purchasing hats manufactured from new materials, when, in fact, said hats are composed entirely or in part o.f old, second-hand, and previously used hat bodies.

CONCLUSION 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 ~mel practices in commtrce within the intent and :meaning of the Fed~ral Trade Commission Act. ORDER TO CEASE AND DESIST This proceeding having been heard by the Federal Trade Commis- E-ion Uf>on the complaint of the Commission nnd the a11swer of respondent, in which answer respondent admits all the material allegations of fact set forth in said complaint, and states that he waives all intetvening procedure and fu:rther hearing as to said facts, and the Commission Order 3-!F.T.C.

h:;n:ng made its findings as to the facts and conclusion that said respondent has violated the provisions o£ the Federal Trade Commission Act.

It ia ordered, That the respondent, Frank Gorr, individually, anJ trading as Victor Ha\. Co., or trading under any other' name or names, his representatives, tigents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, and distribution of h:...ts in commerce as "commerce'' is defined in the Federal Trade Commission Act, do forthwith cease and desist from: 1. Representing that hats composed in whole or "in part of used or second-hand materials are new or are compos£:d of new materials by failure to stamp in s~me conspicuous place on the exposed surfa2e of the inside of the hat in conspicuous and :Pgible terms which ~cannot be removed or obliterated without mutilating the hat itself, n statement that said products are composed of ~econd-hand or used materials, provided that if substantial bands, placed similarly to sweat bands in men's hats, are attached to said hats, then and in that event F;uch statement may be stamped upon such bands, provided fmtber, that said stampings !)re of such nature that they cannot be removed or obliterated without mutilating the band and the band itself cannot be removed without rendering the hat unserviceable. 2. Representing in any manner that hat;; made in whole or in part from olu, used, or second-hand materials are new or are composed of new materials.

It is further ordered, That the respondent shall, within 60 days after 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.

OLD COLONY KNITTING MILLS, INC., ET ~L. 577 Syllabus