Ben Selviz, Inc.

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IN THE MATTER OF BEN SELVIZ, INC. ET AL.

COMPLAI , SETT..EMENT, FINDINGS A D ORDER IN REGAH.D TO THJ ALLEGED VIOLATION OF SI' C. 5 OF AN ACT OF CONGRESS APPHOVED SEPT. 2G , 1914 AND OF AN ACT OF CONGRESS APPROVED OCT. 14 , 1040 Docket 5905. Complaint, July 1951-Decision, Oct. 9, 1951 Where a corporation and its two offcers, engaged in ihe manufacture, introduction into commerce, and distribution of wool products as defined in the Wool Produrts Labeling Act- Misbranded ladies' coats within the intent and meaning of said act and the rules and regnlations promulgated thereunder in that, (1) labeled 100% wool they contained no "wool" but were composed, exclusive of ornamentation of "reprocessed wool " together with small amounts of rayon and cotton; and (2) their constituent fibers and the percentages thereof were not shown on the tags or labels thereon as required by said act and rules, etc. Belrl That such acts and practices, under the circumstances set forth, were in violation of said act and said rules and regulations, and constituted unfair and deceptive acts and practices in commerce. Before 1/fr. Jones A. Purcell trial examiner. Mr. J. M. Doukas and iJIr. O. J. Aimone for the Commission. Cohn, Riemer Pollack OT Boston, Mass., for respondents. C01\PLAINT Pursuant to the provisions of the Federal Trade Commission Act and the V 001 Products Labeling Act of 1030, and by virtue of the authority vested in it by said acts, the Federal Trade Commission, having reason to believe that Den Selviz, Inc., a corporation and Robert J. Seder and Leonard Freeman, individually and as offcers of said corporation have violated the provisions of said acts and the rules and regulations promulgated under the .W 001 Products Labeling Act of 1939, and it appearing to the Commission that a proceeding by it in respect thereto ,,-oulcl be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondent Ben Selviz, Inc. is a corporation organized and existing under the laws of the Commonwealth of :Massachusetts; Robert J. Seder is its president and Leonard Freeman is its treasurer. The individual respondents formulate, direct, and control the policies, acts and practices of the corporate respondent. The uffce and principal1 place of business of both corporate respondent and the individual respondents is located at 763 1Vashington Street, Newtonvil1e, l\iass.

374 FEDERAL TRADE CO:\IMISSIOX DECISIONS Consent settlement 48 F. T. C. PAH. 2. Subsequent to July 15 , 1941 , respondents manufactured for introduction into commerce: introduced into commerce, sold, transported, distributed, deEvered for shipment, and offered for sale in commerce, as "commerce" is defined in the 'V 001 Products Labeling Act, wool products as "wool products " are defined therein. PAR. 3. Certain of said wool products were misbranded in that they were not stamped, tagged or labeled as required under the provisions of section 4(a) (2) of the Wool Products Labeling Act of 1939 in the manner and form as prescribed by the Rules and Regulations promulgated under such act.

PAR. 4. Certain of said wool products, to wit, ladies' coats, were misbranded within the intent and meaning of said act anci the 1'n1e8 and regulations promulgated thereunder in that they were falsely and deceptively labeled with respect to the character and amount of their constituent fibers. Typical of the foregoing was the labeling of ladies' coats as 100 percent wool, whereas, in truth and in fact, said products contained no wool, as " \",'01" is defined in said act, but were composed, exclusive of ornamentation not exceeding 5 per centum of their total fiber weight, of reprocessed wool as "reprocessed wool" is defined in the .Wool Products Labeling Act, together with small amounts of rayon and cotton. The said wool products so labeled were further misbranded in that their constituent fibers and the percentage thereof were not shovl n on the tags or labels thereon as required by saiel act and in the manner and form required by the saiel rules and regulations.

\R. 5. The aforesaid acts and practices of respondents as herein alleged are in violation of the .Wool Products Labeling Act of 1939 and the rules and regulations promulgated thereunder and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. CONSENT SETTLEMENT 1 Pursuant to the provisions of the Federal Trade Commission Act and the V 001 Products Labeling Act of 1939, the Federal Trade Commission, on July 9, 1951 , issued and subsequently served its complaint on the respondents named in the caption hereof, charging them with the violations of the Wool Products Labeling Act of 1939, and 1 The Commission s "Notice" annOUIlcing Ilnd promulgating the consent settlement us Pl1lJlishcr1 lwre\\Hh, follows:

The consent settlement tendered by the lJllrties 1n this proceeding, n copy of which is served herewith, waf; accepted by the Commission on October 9, 1951 , and ordered entered of record Ils the Commission s findings as to the facts, conclusion, and order in di poslt1on of this proceeding.

BEN SELVIZ, INC. ET AL. 375 373 Findings the rules and regulations promulgated thereunder which constituted unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act. The respondents, desiring that this proceeding be disposed of by the consent settlement procedure provided in rule V of the Commission rules of practice, solely for the purpose of this proceeding, any review thereof, and the enforcement of the order consented to, and conditioned upon the Commission s acceptance of the consent settlement hereinafter set forth, and in lieu of the answer to said complaint heretofore filed and which, upon acceptance by the Commission of this settlement, is to be withdrawn from the record, hereby: 1. Admit a1l the jurisdictional allegations set forth in the complaint. 2. Consent that the Commission may enter the matters hereinafter set forth as its findings as to the facts, conclusion, and order to cease and desist. It is understood that the respondents, in consenting to the Commission s entry of said findings as to the facts, conclusion and order to cease and desist, specifically refrain from admitting or denying that they have engaged in any of the acts or practices stated therein to be in violation of law.

3. Agree that this consent settlement may be set aside in whole or in part under the conditions and in the manner provided in paragraph (f) of rule V of the Commission s rules of practice. The admitted jurisdictional facts, the statement of the acts and practices which the Commission had reason to believe were unlawful the conclusion based thereon, and the order to cease and desist, all of which the respondents consent may be entered herein in final disposi. tion of this proceeding, are as follo\vs:

FINDINGS AS TO 'THE FACTS PARAGRAPH 1. Respondent Ben Selviz, Inc., is a corporation organized and existing under the laws of the Commonwealth of :Massachusetts; Robert J. Seder is its president and Leonard Freeman is its treasurer. The individual respondents formulate, direct, and control the policies, acts and practices of the corporate respondent. The offce and principal place of business of both corporate respondent and the individual respondents is located at 763 IVashington Street ewtonville, Mass.

PAR. 2. Subsequent to July 15, 1941, respondents manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment, and offered for sale in commerce, as "commerce" is defined in the "\V 001 Products Labeling Act, wool products as "wool products" are defined therein. 376 FEDERAL TRADE CO:\L\lission DECISIONS Order 48 F. 'l. C.

PAR. 3. Certain of said wool products were misbranded in that they ,were not stamped, tagged or labeled as required Imcler the provisions of section 4 (a) (2) of the Wool Products Labeling Act of 1939 in the manner a.nd form as prescribed by the rules and regulations promulgated under such act.

PAR. 4. Certain of said wool products, to wit, ladies' counts, were misbranded ,within the intent and meaning of aid act and the Tules and regulations promulgated thereunder in that they were ialsely and deceptively labeled with respect to the character and amount of their constituent fibers. Typical of the foregoing ,vas the labeling of ladies' coats as 100 percent wool, whereas, in truth and in fact, said products contained no wool, as "wool" is defined in said act, but were composed, exclusive of ornamentation not exceeding 5 per centum of their total fiber weight, or reprocessed wool as "reprocessed wool" is defined in the 'Wool Products Labeling Act, together with small amounts or rayon and cotton. The said wool products so labeled were further misbranclec1in that their constituent fibers and the percentages thereof '"\ere not shown on the tags or labels thereon as required by said act and in the manner and form required by the said rules and regulations.

CONCLUSION The aforesaid acts and practices or respondents as herein aneged are in violation of the -Wool Products Labeling Act of 1939, and the rules and regulations promulgated thereunder and constitute unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

ORDER TO CEASE ARD DESIST It is ordered That the respondent Ben Selviz, Inc., a corporation and its offcers, and the respondents Robert J. Seder and Leonard Freeman, individually and as offcers or said respondent corporation and said respondents' respective representatives, agents and employees, directly or through any corporate or other device, in connec tion with the introduction or manufacture ror introduction into commerce, or the sale, transportation or distribution in commerce, as commerce" is defined in the aforesnicl acts, or helies' coats or other wool products, as such products are defined in and subject to the Wool Products Labeling Act of 1039, which products contain, purport to contain or in any way are represented as containing "wool reprocessed wool" or "reused wool " as those terms are defined in said act, do forthwith cease and desist from misbranding such products: BEN SELVIZ, INC. ET At- 377 373 Order 1. By representing on any stamp, tag, label or other means of identification the character or amount of the constituent fibers of any of said products.

2. By failing to securely affx or to place on such products a stamp, tag, label or other means of identification shmving in a clear and consplcuons manner:

(a) The percentage of the total fiber weight of such wool product exclusive of ornamentation not exceeding I) percent of said total fiber (4) eachweight, of (1) wool, (2) reprocessed wool, (3) reused wool, fiber other than wool -where saiel percentage by "weight of such fiber is 5 percent or more, and (5) the aggregate of other fibers. (b) The maximum percentage of the total weight of such wool product of any nonfibrous loading, filling, or adulterating matter. (c) The name or the registered identification number of the manufacturer of sllch wool IH'odnct or of one or more persons engaged in introducing such v;ool product into commerce, or in the offering for sale, sale, transportation, or distribution the,reof in C011110rce, as commerce" is define.d in the Federal Trade Commission Act and in the VV 001 Products Laheling Act of 1030.

PTO'IYlded That the foregoing provisions concerning misbranding shall not be construed to prohibit acts permitted by paragraphs (a) and (b) of section 3 of the Wool Products Labeling Act of 10:19; and jJPovlded !llTthe1' That nothing contained in this order shall be construed as limiting any applicable provisions of said Act or the Rules and Regulations promulgated the-reunc1er.

BEN SELVrz., INc.

By (sgd) Robert J. Seder ROBERT J. SEDER President Ben Sclviz, Inc.

(sgd) Robert J. Seder ROBERT J. SEDER.

(sgd) Leonard Freeman LEON ARD FREE IAX.

The foregoing consent settlement is hereby accepted by the Federal Trade Commission and ordered entered of record on this the 9th day of October 1051.

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Complaint. 48 F. T. O.