United States Raw Skins Corp

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IN THE MA'ITER OF UNITED STATES RA'V SKINS CORPORATION AND LIE- BERSON NOVELTY COMPANY, INC.

COMPLAINT, FI!i!DINGS, AND ORDER I~ REGARD TO THE ALLEGED VIOLATION OF SEC. 5 OF AN ACT OF CONGRESS APPROVED SEPT. 26, 1914 Docket H69. Complaint, Feb. 21, 1941-Decision, Apr. 9, 1942 Where a corporation, engaged in the interstate sale and distribution of domestic and imported leathers- (a) Represented that lambskin, sheepskin, or calfskin sueded and finished so as to simulate antelope skin was such, through use of description "Black French Antelope Suede" in its Invoices to a concern manufacturing women's handbags, belts and other leather goods; and Where said corporate purchaser- (b) Represented that the handbags made from such leather and offered for sale by it were made of antelope skin, through advertising In periodicals and trade journals "Newest French Antelope Suede Bags • • •," "Genu· ine French Antelope Suede Bag • • •," and "Illustrated are four of many of our attractive numbers in French Antelope Suede"; The facts being that while term "Antelope Suede" is understood by importers, tanners, and manufacturers of leather goods as denoting lambskin, sheepskin, or other leathers sueded and finished to resemble the very rare and expensive antelope skin rather than as denoting the genuine skin Itself, a substantial portion of the purchasing public understands unqualified word "antelope," thus applied, to mean that the articles are made of genu· lne antelope skin, and understands "antelope suede" to mean such skin thus finished, and there is a preference on its part for leather goods made of genuine antelope skin over those made of other leathers sueded and processed so as to resemble antelope;

With the result that corporation first referred to, through describing and In· voicing Its products as aeove set forth, Initiated, contributed to, and, In effect, participated in, the subsequent misrepresentations made by latter purchaser-concern, and with tendency and capacity, through aforesaid acts and practices of both corporations, to mislead and deceive a substantial portion of the purchasing public into the mistaken belief that the products in question were made of genuine antelope skin and to cause it, as a result, to purchase substantial quantities of such products: Held, That such acts and practices, under the circumstances set forth, were all to the prejudice of the public, and constituted unfair and deceptive acts and practices in commerce.

Defore Mr. Andrew B. Duvall, trial examiner. Mr. B. G. 1Vilson for the Commission.

Mr. Norman J. Steinberg, of New York City, for United States Raw Skins Corp.

Mr. Marshall Solberg, of Chicago, Ill., for Lieberson Novelty Co., Inc.

UNITED STATES RAW SKINS CORP. ET AL. 1043 1042 Complaint 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 United States Raw . Skins Corporation, a corporation, and Lieberson Novelty Co., Inc., a corporation, hereinafter referred to as respondents, have violated the provisions of the 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, United States Raw Skins Corporation, 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 12 East Thirty-third Street, New York City, N. Y. Respondent, Lieberson Novelty Co., Inc., is a corporation organized, existing, and doing business under and by virtue of the laws ~f the State of Illinois, with its office and principal place of business at 325 South :JI.farket Street, Chicago, Ill. PAR. 2. Respondent, United States Raw Skins Corporation, is now, and has been for more than 1 year last past engaged in the business of selling domestic and imported leathers to be manufactured into ladies' handbags, belts, and other articles. Respondent, Lieberson Novelty Co., Inc., is now, and has been for more than 1 year last past, engaged in the manufacture, sale, and distribution of ladies' handbags, belts, and other articles.

In the course and conduct of their respective businesses, Lieberson Novelty Co., Inc., purchases and has purchased from United States Raw Skins Corporation, and United States Raw Skins Corporation sells and has sold to Lieberson Novelty Co., Inc., domestic and imported leathers to be manufactured into ladies' handbags, belts and other articles .

... Respondents, in the course al)d conduct of their said businesses, cause and have caused their said products when sold to be transported from their respective places of business to the purchasers thereof located in States of the United States other than the State of origin of said shipments Respondents m~intain, and at all times mentioned herein have maintained, a course of trade in said products in commerce between and among the various States of the United States. f PAR. 3. In the course and conduct of their aforesaid business and ot the purpose of inducing the purchase of their said products, the respondents have disseminated false and misleading statements and Complaint 34F.T.O.

representations with respect to the materials of which their said products are made, ·such statements and representations being inserted in magazines having a general circulation and in invoices and other advertising matter distributed among prospective purchasers and by other means. Among and typical of the false and misleading representations disseminated by respondent, United States Raw Skins Cor-. poration is the following:

French Imported Antelope Suede. . Among and typical of the false and misleading representations disseminated as aforesaid by respondent, Lieberson Novelty Co., Inc., are the following:

Newest French Antelope SUEDE BAGS, for Fall 21.35 dozen Genuine French Antelope Suede Bag with grosgrain handles and side gussets. Envelope effect with gild metal ornament. Top zipper.

PAR. 4. Through the use of the foregoing statements and representations and other of similar import not specifically set out herein, the respondent, United States Raw Skins Corporation has represented, di~ectly or by implication, that its said leather which was sold to the respondent, Lieberson Novelty Co., Inc., and to others, was leather produced by tanning antelope hide; and the respondent Lieberson Novelty Co., Inc., has represented that ladies' handbags and other articles made by it from leather purchased from respondent, United States Raw Skins Corporation were made from leather produced by tanning antelope hide.

Said statements and representations are false, misleading, and deceptive. In truth and in fact, the leather sold by respondent, United States Raw Skins Corporation and purchased by respondent, Lieberson Novelty Co., Inc., among others, was leather produced by tanning hides other than antelope hide. In truth and in fact, such ladies' handbags, belts, and other articles are not made from the hide of an antelope but are made from a leather material other than the hide of an intelope, which has been tanned in such a manner that it simulates antelope leather.

PAR. 5. There is a marked preference on the part of a substantial portion of the purchasing public for ladies' handbags, belts, and other articles made from the hide of an antelope over ladies' handbags, belts, and other articles made from other leather materials. PAR. 6. The use by the respondents of the acts and practices hereinbefore set forth has had, and now has, the capacity and tendency to, and does, mislead and deceive a substantial portion of the purchasing public into the erroneous and mistaken belief that respondents' prod- UNITED STATES RAW SKINS CORP. ET AL. 1045 1042 Findings ucts are made of antelope leather when such is not the fact. As a result of such erroneous and mistaken belief, the purchasing public has been induced to, and has, purchased' a substantial quantity of respondents' said products.

PAR. 7. The aforesaid acts and pr~ctices of the respondents, 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 ORDF.R Pursuant to the provisions of the Federal Trade Commission Act, the Federal Trade Commission on February 27,1941, issued and subsequently served its complaint in this proceeding upon the respondents, United States Raw Skins Corporation, a corporation, and Lieberson Novelty Co., Inc., a corporation, charging them with the Use of unfair and deceptive acts and practices in commerce in violation of the provisions of said act. After the issuance of the complaint and the filing of respondents' answers thereto, testimony and other evidence in support of the allegations of the complaint were introduced -~Y the attorney for the Commission, and in opposition to the allegations o~ the complaint by attorneys for the respondents, before Andrew B. Duvall, a trial examiner of the Commission theretofore duly designated by it, and said testimony and other evidence were duly recorded and filed in the office of tlte Commission. Thereafter, the proceeding regularly came on :for final hearing before the Commission on the complaint, the answers thereto, testimony and other evidence, an<l briefs in support of and in opposition to the complaint (oral argument n_ot having been requested); and the Commission, having duly con- Sidered the matter, and being now :fully advised in the premises, finds ~hat this proceeding is in the interest of the public and makes this Jts findings as to the facts and its conclusion drawn therefrom: FINDINGS AS TO THE FAOI'S . PARAGRAPn: 1. Respondent, United States Raw Skins Corporation, ls a corporation organized and doing business under the laws of the ~tate of New York, with its office and principal place of business ocated at 12 East Thirty-third Street, New York City, N. Y. Re- ~P?ndent, .Lieberson Novelty Co., Inc., is a corporation organized nnd Doing business under the laws of the State of Illinois, with its office Canh~tcago,principalIll. place of business located at 325 South Market Street, Respondent, United States Raw Skins Corporation, is now, and for a ~number of years last past has been, engaged in the business of 1046 FEDERAL TRADE CO:MMISSION DECISIONS Findings 34F.T.C.

selling both domestic and imported leathers, which are used by th.e purchasers thereof in the manufacture of women's handbags, belts, and other leather articles. Respondent, Lieberson Novelty Co., Inc., is now, and for a number of years last past has been, engaged in the manufacture and in the sale and distribution of women's hand· bags, belts, and other leather goods.

PAR. 2. In the course and conduct of their respective businesses, the respondents cause their products, when sold, to be transported from their places of business to purchasers thereof located in various States of the United States other than the State of origin of such ship· ments. At all times mentioned herein the respondents have main· tained a course of trade in their respective products in commerce ' among and between the various States of the United States. PAR. 3. In the course and conduct of its business and for the pur· pose of promoting the sale of its products, respondent, Lieberson Novelty Co., Inc., advertises its products in various periodicals and trade journals. In certain of the advertisements disseminated by the company with respect to certain of its handbags, the following state· ments appeared:

Newest French Antelope SUEDE BAGS, for Fall Genuine French Antelope Suede Bags with grosgrain handles and side gussets. Envelope effect with gild medal ornament. Top zipper.

Illustrated are four of our many attractive numbers In Imported French Antelope Suede and Dull Finish Crushed Calf.

The leather used by respondent, Lieberson Novelty Co., Inc., in the manufacture of the handbags so advertised was purchased by it from respondent, United States Raw Skins Corporation. Certain shipments of such leather were described by United States Raw Skins Corporation in its invoices to the Lieberson Novelty Co., Inc., as "Black French Antelope Suede," while other shipments were invoiced as "Black French Antelope Finish Suede."

PAR. 4. Through the use of the description "Black French Antelope Suede" in its invoices, respondent, United States Raw Skins Corporation, represented that the leather in question was antelope skin, and respondent, Lieberson Novelty Co., Inc., through the use of the foregoing advertisements, represented that the handbngs offered for sale by it were made of antelope skin. The leather from which such handbags were made was not in fact antelope skin, but was lambskin, sheepskin, or calfskin which had been sueded and finished in such manner that it simulated antelope skin.

UNITED STATES RAW SKINS CORP. ET AL. 1047 1042 Order PAR. 5. The record discloses that genuine antelope skin is very rare and very expensive, and that little of it is available in the market. The record further indicates that the term "Antelope Suede" is understood by importers, tanners and manufacturers of leather goods as denoting lambskin, sheepskin, or other leathers which have been sueded and finished to resemble antelope skin, rather than as denoting genuine•antelope skin. It is further evident from the record, howe~~r, that a substantial portion of the purchasing public is not familiar With the technical meaning of the term as used in the trade, and that such portion of the public understands that the unqualified word "antelope,'' when applied to leather goods means that the articles to which the term is applied are in fact made of genuine antelope skin. Such portion of the public further understands that the unqualified words "Antelope Suede" mean antelope skin which has been finished as a suede. There is also a preference on the part of a substantial portion of the public for leather goods made of genuine antelope skin over ¥oods made'~ of other leathers which have been sueded and processed In such manner that they resemble antelope skin. ~ AR. 6. While the representations made by the United States Raw Skms Corporation were made primarily to the Lieberson Novelty ~o., Inc., rather than to retail dealers and the purchasing public, ~ e Commission finds that by describing and invoicing its products In the manner set forth above, the corporation initiated, contributed to, and in effect. participated in, the subsequent misrepresentations Inade by respondent, Lieberson Novelty Co., Inc. th PAR. 7. The Commission finds further that the acts and practices of t e r.respondents as herein described have the tendency and capacity 0 • mislead and deceive a substantial portion o£ the purchasing public Into the erroneous and mistaken belief that the products sold by r~~pondent, Lieberson Novelty Co., Inc., are made of genuine antelope ~ In, and the tendency and capacity to cause such portion o£ the public 0 hurchase substantial quantities of such products as the result o£ sue erroneous and mistaken belief.

CONCLUSION t ~e act~ and practices of the respondents as herein :found are all ao d e prej.udice o£ the public and constitute unfair and deceptive acts Fn d Practices in commerce within the intent and meaning of the e era! Trade Commission Act.

ORDER TO CEASE AND DESIST si This pr~ceeding having been heard by the Federal Trade Commison upon the complaint o£ the Commission, the answers o£ respond- 1048 FEDERAL TRADE COMM:ISSION DECISIONS Order 34F.T.C.

ents, testimony and other evidence taken before a trial examiner of the Conunission theretofore duly designated by it, in support of the allegations of said complaint and in opposition thereto, report of the trial examiner upon the evidence, and briefs in support of and in opposition to the complaint (oral argument not having been requested), and the Conunission having rna.de its findings as to the facts and its conclusion that the respondents have violated the p:~;pvisions of the Federal Trade Corru,nission Act;

It is ordered, That respondent, United States Raw Skins Corporation, a corporation, and its officers, agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of said respondent's leathers in commerce, as "commerce" is defined in the Ii'ederal Trade Commission Act, do forthwith cease and desist from: Using the word "antelope," or any other word of similar import, to designate or describe leather which is not in fact made from the skin of an antelope, or otherwise representing that said respondent's prod~ ucts are made from the skin of an antelope when such products are in fact made from the skins of other animals. It is further ordered, That respondent, Lieberson Novelty Co., Inc., a corporation, and its officers, agents, representatives, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of said respondent's handbags, belts or other leather products in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from :

Using the word "antelope," or any other word of similar import, to designate or describe products which are not in fact made from the skin of an antelope, or otherwise representing that said respondent's products are made from the skin of an antelope when such products are in fact made from the skins of other animals. Provided, however, That in the case of products not made of antelope skin but made of skin other than antelope skin which has been processed or finished to resemble antelope skin, this order shall not be construed to prohibit the use of the words "Antelope Finish" in describing such products, when such words are immediately accompanied by other words clearly designating the kind of skin used, and when such accoro~ panying words and the word "Finish" are at least equal in size and conspicuousness with the word "Antelope."

It is further ordered, That the respondents shall, within 60 days after service upon them of this order, file with the Commissiof! a report in writing setting forth in detail the manner and form in which they have complied with this order.

PENN-LUB OIL PRODUCTS CO. 1049 Syllabus