Purofied Down Products Corp.

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THE !vIA'ITR OF PUROFIED DOWN PRODUCTS CORP., ET AL.

COMPLAINT, FINDINGS, AND ORDERS IN REGARD TO 'l' HE .ALLEGED VIQLA'l' IQ)l OF SEC. 5 OF .d"N ACT OF CONGRBSS APPROVED SEPt'. 26, 1914 Docket 5820. Complaint, Oct. 1950-Decision, Aug. 14, 1951 There is n preference on the part of the purchasing public for pilows containing ne,"v feathers as cJistin ni::hed from those containing used feathers or a combination of new and used, and it is its nnc1C1standing and belief, in buy. lng feather piJU\YS, that the feathers are nen' and unused unless the labeling sl a tes 011jerwise- Where a curporatioll, find its fi\-e ofIeers, engaged in the interstate sale and distribution of pilo\vs- (a) Inaccurately and misleadin!-'ly labeled their pilows in that the true proportions of a product labeled ';50% Grey Duck Down, 50% Grey Duck Feathers " were 27 and 73 percent; and in that pilows labeled respectively Grey Dm'k Down " and "'Vhite Goose Dmn1 " contajned only G4 and 65 percent duck down ;Juri were not, as represented, composed entirely of said! sllbstnnces;

(b) Sold pilows containing substantial amounts of used or second-hand feathers without disclosing the fact that they were used rather than new; 'With tendency and capacity to misleacl and deceive a substantial portion of the purchasing public with J'esped to their products and thereby induce its pul' chase thereof:

Held TImt such acts and practices, under the circumstances set forth, were all to the l1ejurlice of t11e public, ami constituted unfair and deceptive acts and practices in commerce, Before 1(/;" lVilliam L. Pack trial examiner. lift. Russell T. PO?'ter for the Commission. NT. Ii aTTY Ii eller of Brooklyn, N. Y., for respondents. 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 Purofied Down Products Corp., a corporation, and Louis Puro, Sam PUI'O, Jack Puro, Joe Puro, and Arthur Puro, individually and as offcers of said corporation, hereinafter referred to as respondents, have 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: P ARAGRAPII 1. Respondent Purofied Down Products Corp. is a corporation organized and doing business under the laws of the State of 11 ew York, with its offce and principal place of business at 1027 Met- Complaint 48 F. T. C.

ropolitan A venue, Brooklyn, N. Y. Respondents Louis Puro, Sam Puro, Jack Puro, Joe Puro, and Arthur Puro are the president, secretary-treasurer, vice prcsident, vice president, and sales manager respectively, of said corporate respondent. Said individual respondents in their respective individual and offcial capacities have dominated, directed, and controlled and now dominate, direct and control the policies, affairs, and activities of corporate respondent. The addresses of the individual respondents are the same as that of the corporate respondent.

PAR. 2. Respondents are now, and for several years last past, have engaged in the sale of pillows to dealers for resale to the public. Hespondents eanse and have can sed their said pillows when sold be shipped from their place of business in the State of New York to dealers in various other States of the United States and maintain, and at all times mentioned herein have maintained, a substantial course of trade in their said pillows, in commerce, among and between the several States of the United States.

PAn. 3. In the course and conduct of the,ir business respondents cause labels to be attached to their pillows purporting to state and set out the percentages of down and feathers therein. Typical, hut not all inclusive of these labels are the following: 50% Grey Duck Down, 50% Grey Duck )feathers Grey Duck Down White Goose Down PAR. 4. By means of the labels aforesaid, respondents represented that the pillow labeled "50% Grey Duck Down, 50% Grey Duck Feathers" was filled with grey duck down and grey duck feathers in the percentages set out on the label and that the filings of the pillows labeled "Grey Duck Down" and "White Goose Down" were composed entirely of grey duck down and white goose down, respectively. PAR. 5. Said labels were false, misleading, and deceptive. In truth and in fact, the filling of the pilow labeled "50% Grey Duck Down, 50% Grey Duck Feathers" was composed of 27 percent grey duck down and 73 percent grey duck feathers. The fillngs of the pillows labelled "Grey Duck Down)' and "\Vhite Goose Down" were not composed entirely of grey duck down and white goose down respectively, but on the contrary, contained 36 percent duck feathers and 35 percent g.oose feathers, respectively. In addition, the pilows labeled "50% Grey Duck Down, 50% Grey Duck Feathers Grey Duck Down" and a pillow laheled 1070 Grey Duck Down, 90% Grey Duck Feathf'TS" and other.rs, contained. substantially in excess of G percent feather fiber.

PUROFIED DOWN PRODUCTS CORP. ET AL. 157 155 Decisions Some of respondents' pilows, particularly those labeled "Grey Duck Down 10% Grey Duck Down and 90% Grey Duck Feathers 10% Wl1ite Goose Down, 90% White Goose Feathers" and "Grey Duck Down" and others, contained substantial amounts of secondhand or used feathers. This fact was not disclosed on the labels or otherwise.

P AU. 6. In buying pilows represented to be fiJJed with feathers the purchasing public understands and believes that the feathers atc new and unused, unless the labeling states otherwise. There is a preference on the part of the purchasing public for pillows containing new feathers as distinguished from those containing used feathers or a combination of used and new feathers. PAR. 7. By attaching false, misleading, and deceptive labels to their pillows, respondents placed in the hands of dealers, means and instrumentalities by and through which they may mislead the purchasing public as to the content of said pilows. PAR. 8. The use by the respondents of the false, misleading, and deceptive labels had the tendency and capacity to mislead and deceive a substantial portion of the purchasing public as to the content of their said pilows, and to induce a substantial portion of the purchasing public to purchase respondents' said pillows because of such erroneous belief.

PAR. 9. The aforesaid acts and practices of respondents, as herein alleged, arc a1l 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. DECISION OF THE Cm,nnssIOX Pursuant to Rule XXII of the Commission s rules of practice, and as set forth in the Commission Decision of the Commission and Order to File Heport of Compliance " dated August 14, 1951, the initial decision in the instant matter of trial examiner 'Villiam L. Pack, as set out as follows, became on that date the decision of the Commission.

INITIAL DECISION BY \VILLIA::I L. rack, TRIAL EXAMINER Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission on October 23 issued and subseqlient1y served its complaint in this proceeding upon the respondents named in the caption hereof, charging them with the use of unfair and deceptive acts and practices in commerce in violation of the provisions of that act. After the filing by respondents of their answer to , .

158 FEDERAL TRADE CQ::IMISSION DECISIONS Findings 48 F. T. C.

the complaint, a stipulation was entered into whereby it was stipulated and agreed that a statement of facts executed by counsel supporting the complaint and counsel for respondents might be taken as the facts in this proceeding and in lieu of evidence in support of and in opposition to the cha.rges stated in the complaint, and that such statemcnt of facts might seTYC as the basis for findings as to the facts and conclusions based thereon and an order disposing of the proceeding. Vhile counsel for respondents reserved in the stipulation the right to file proposccl findings and conc.usions and to argue the matter orally before the trial examiner, such resernLtions were subsequently waived. The stipulation further provided that upon appeal to or review by the Commission such stipulation might be set aside by the Commission and this matter remanded for further proceedings under.r the complaint. Thereafter the proceeding regularly caine on for final consideration by the trial e,examiner upon the complaint, ans\ver and stipulation, the stipulation having been approved by the trial examiner, who, after duly considering the record herein, finds that this proceeding is in the interest of the public and makes the following findings as to the facts, conclusion drawn therefrom and order.

FINDINGS AS TO THE FACTS PARAGRAPH 1. Respondent Purofied Down Products Corp. is a corporation organized and doing business under the laws of the State of Kew York, with its office and principal place of business located at 1027 11metropolitan A venue, Brooklyn . Y. Respondents Louis Puro, Sam Puro, Jack Puro Toe Puro, and Arthur Puro are president, secretary-treasurer, vice president, vice president, and sales manager, respectively, of respondent corporation. The individual respondents dominate, direct and control the policies, affairs and activities of the corporation.

Paint. 2. Respondents are now and for several years last past have been engaged in the eale of pillows, the pilows being sold to dealers for resale to the public. Respondents cause and have caused their pillows when sold, to be shipped from their place of business in the State of New York to purchasers in various other States of the United States. Respondents maintain and have majntained a course of trade in their products in commerce among and between the various States of the United States.

PAR. 3. In the course and conduct of their business respondents attach to their pillows labels purporting to state or set forth the materials of which such pillmvs are made. In some instances such labels have been inaccurate and misleading. In one instance a pillow labeled PUROFIED DOWN PIWDUCTS CORP. ET AL. 159 155 Order 50% Grey Duck Down, 50% Grey Duck Feathers" actually contained only 27 percent duck down, the undercoating of ducks, and 73 percent duck feathers. In another instance the label on a pillow read "Grey Duck Down " thereby representing that such pillow was composed entirely of down, whereas the pillow was in fact composed of 64 percent down and 36 percent duck feathers. In a third instance n pillow labeled "'Vhite Goose Down " was found to contain only 65 percent down and 35 percent feathers.

PAR. 4. Respondents have also sold pillows containing substantial amounts of used or second- hrmcl feathers: without disclosing that such feathers were used rather than new feathers. In buying pillows containing feathers the purchasing public understands and believes that the feathers are ne,v and unused, unless the labeling states otherwise. There is a pre,fercnce on the part of the purchasing public for pillo\vs containing new feathers as distinguished from those containing used feathers or a combination of new and used feathers.

PAR. 5. The acts and practices of respondents as set forth above have the tendency and capacity to mislead and deceive a substantial portion of the purchasing public with respect to respondents' products and the tendency and capacity.y to cause such portion of the public to purchase respondent... ' products as a result of the erroneous and mistaken belief so engendered.

CL "CSION The acts a.nd practices of the respondents as hereinabove set out are all to the prejudice of the public and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

OlmEH It is ordered That the respondents, Purofied Down Products Corp. a corporation and its offcers, and Louis Puro: Sam Pllro, Jack Puro Toe Puro, and Arthur Puro, individually and as offcers of said corporation, and respondents' representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale and distribution of pillows in eommeree, as commerce" is defined in the Federal Trade Commission Act: do forthwith cease and desist from:

1. Misrepresenting in any manner or by any means, directly or by implication, the materials of which respondents' pillows arc made. 213840-;j4- Order 48 F.

2. Sellng or diotributing pillows composed in wbole or in part of used or secoDClhand feathers, without clearly disclosing on labels attached to such pilows the fact that such feathers arc used or secondhand.

ORDER TO FILE Import OF frLlAXCE It is ordered That the respondents herein shall, within 60 days after service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with t.he order to cease and desist (as , IgGl J.required by said declaratory decision and order of August 14 THE CURTISS Cfu,DY CO. 161 Order