Snappy Fashions, Inc.

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IN THE :MA'after OF SNAPPY FASHIONS, INC. ET AL.

C031TLAIX'l, FINDINGS AXD ORDERS IN REGARD TO Tile ALLEm D VIOLATION o.p SEC. G OF AX D.F CONGRESS APPROVED SEPT. 26 , lU14 , AXD OF AN ACT OF CONGRESS APPROVED OCT. 11 , 1!.J0ACT Docket 5918. Compla.int, Aug. 20, 1951-Decision, Nov. 24. 1951 \Vhere a corporation and Hs president, engaged in the manufacture, sale and distribution in commerce of wool products as defined in the Wool Products Labeling Act- Misbranded certain ladies' coats with interlinings within the intent and meaning of said Act and rules and regulations relating thereto in that (1) they were falsely and deceptively labeled with respect to the character and amount of the constituent fibers; (2) they did not have affxed to the interlinings a separate stamp, tag or label setting forth similar information as required; and (3) falsely labeled as "100% wool", they contained no separate disclosure as to interlining content:

Held. That such acts and practices, under the circumstances set forth, 'Were in violation of the provisions of said Act and rules and regulations promul gated thereunder, and were to the prejudice and injury of the public and constituted unfair and deceptive acts and practices in commerce. Before 11r. Earl J. l( olb trial examiner. Mr. Jesse D. Kash and Mr. C. J. Aimone for the Commission. llfr. ManuelE. Got/denker of New York City, for respondents. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the vI' 001 Products Laheling Act of 1939 and by virtue of the authority vested in it by said acts, the Federal Trade Commission having reason to believe that Sn:lplc Fashions, Inc., a corporation Hnd .Jules Levy, individually and as an offcer of said corporation have violated the provisions of said Acts and the rules and regulations promulgated under the vI' 001 Products Labeling Act of 1939 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, Snappy Fashions, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New Yark with its principal place of business located at 222 West 37th Street, New York, N. Y. Respondent J nles Levy is located at the same address. lie is president of corporate 1'e- 470 FEDERAL 'trade COMMISSION DECISIONS Decision 48 F. T. C.

spondent and in such capacity formulates and executes its policies and practices.

PAR. 2. Subsequent to the effective date of the Act and more especially since January 1950, respondents manufactured for intro dl1ction into commerce and offered for sale, sold and distributed into commerce as "commerce" is defined in the 'V 001 Products Labeling Act of 1939, wool products, as ",voal 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 1D3D and in the manller and form prescribed by the Rules and Regulations relating thereto.

PAn. 4. Certain of said wool products were misbranded within the intent and mea.ning of the said Act and Rules and Regulations in that they were falsely and deceptively labeled with respect to the character and amount of the constituent fibers appearing therein. Such products were further misbranded in that the character and amollnt of the constituent fibers appearing in the interlinings thereof were not separately set forth on the stamp, tag or label as required by the said Act and Rule 24 (a) and (c) of the Regulations. c\.among the misbranded products aforementionecl were ladies' coats containing interlinings. Such coats were labeled by the respondents as 100% wool." In truth and in fact, the coats were not 100 wool as labeled but contained substantial quantities of fibers other than wool. The label contained no separate disclosure as to interlining content.

PAll. 5. The acts and practices of respondents, as herein alleged wero 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. DECISION OF THE COMMISSIO Pursuant to Rule XXII of the Commission s Rules of Practice and as set forth in the Commission s "Decision of the Commission and Order to File Report of Compliance " dated November 24 1951 the initial decision in the instant matter of Trial Examiner Earl J. Kolb, as set out as follows, became on that date the decision of the Commission.

SNAPPY FASHIONS, INC'J ET AL. 471 469 Findings INITIAL DECISION BY EAHI, J. KOLE, TRIAL EXAI\IINfJR Pursuant to the provisions of the Federal Trade Commission Act and the ,V 001 Products Labeling Act of 1939 and by virtue of the fluthority vested in it by said Acts, the Federal Trade Commission on August 20, 1951, issued and subsequently served its complaint in this proceeding upon the respondents, Snappy Fashions, Inc., a corporation, and Jules Levy, individually aed as offcer or said corporation charging them with the use or unfair and deceptive acts and practices in commerce in violation or the provisions or those Acts. On October 8, 1951, respondents filed their answer, in which answer they admitted all the material allegations of facts set forth in said complaint and waived all intervening procedure and further hearings as to the said racts. Thereafter, the proceeding regularly came on for final consideration by the above-named trial examiner theretofore duly designated by the Commission upon said complaint and answer thereto, an intervening procedure havh1g been waived, and said trial examiner, having duly considered 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 there.rom, and order: FINDINGS AS 'TO THE FACTS PARAGRAPH 1. Respondent Snappy Fashions, Inc.., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of K ew York with its principal place of business located at 222 ,Vest 37th Street, New York, Kew York. Respondent Jules Levy is located at the same address. He is president of corporate respondent and in such capacity rormulates and executes its policies and practices.

PAR. 2. Subsequent to the effective date of the Act and more especially since.J auuary 1D50 respondents manufactured for introduction int.o commerce and offered for sale, sold and distributed in commerce as "commerce" is defined in the ool Products Labeling Act or 1939 ''1001 products, as "wool products" are defined therein. PAR. 3. Certain of sllid '"'001 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 and in the manner and form prescribed by the Rules and Hegulations relating thereto.

PAR. 4. Certain of said '"001 products were misbranded within the intent and meaning of the said Act and Rules and Regulations in that they were falsely and decepti vcly labeled with respect to the character Order 48 F.

und amount of the constituent fibers appearing therein. Such products were further misbranded in that the character and amount of the constituent fibers appearing in the interlinings thereof were not separately set forth on the stamp, tag or label as required by the said Act and Rule 24 (a) and (c) of the Regulations. Among the misbranded products aforementioned were ladies: coats containing interlinings. Such coats were labeled by the respondents as "100% wool" In truth and in fact, the coats were not 100% wool as labeled but contained substantial quantities of fibers other than wool. The label contain eel no separate disclosure as to interlining content. CONCLUSION The acts and practices of the respondents in the manufacture for introduction into commerce and in the sale, transportation and distribution in commerce of wool products \which were misbranded, as herein found, were in violation of the provisions of the ,y 001 Products Labeling Act of 1939 and the Rules anci Regulations promulgated lhereunder and were to the prejudice and injury of the public and constituted unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commissioll Art. ORDER It is ordered That the respondent, Snappy Fashions, Inc., a corporation, and its offcers, and the respondent, Jules Levy, individually and as an offcer of said respondent corporation, and said re.spondents respective representatives, agents and employees, directly or through corporate or other devices, in connection with the introduction or manufacture for introduction into commerce or the sale, transportation or distribution in commerce, as "commerce" is defined in the aforesaid Acts, of ladies' coats or other wool products, as such products are defined in and subject to the W 001 Products Labeling Act of 1939, 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 by:

(1) Falsely or deceptively representing on any stamp, tag, label or other means of identification affed to any such product the character or amount of the constituent fibers thereof. (2) Failing to securely affx or place on such product a stamp, tag, Jabel or other means of said identification showing in a clear and conspicuous manner:

SKAPPY FASHIONS, INC. , ET AL. 473 469 Order (a) The percentage of the total fiber weight of such wool product exclusive of ornamentation not exceeding 5% of said total fiber weight, of:

1. wool 2. reprocessed wool 3. reused wool 4. each fiber other than wool where said percentage by weight of such fiber is 5 percentum or more and 5. the aggregate of ajj other fibers.

(b) The maximum percentage of the total weight of such wool product of any nou-fibrous loading, fiJJing or adulterating matter. (0) The name or the registered identification number of the manufacturer of such wool product or of one or more persons engaged in introducing such wool product into commerce or in the offering for sale, sale, transportation, distribution or delivering for shipment thereof in C011merce, as "co11merce" is defined in the Federal Trade Commission Act and the IVool Products Laheling Act of 1939. (3) Failing to separately sct forth on the required stamp, tag or label or other means of identificl'tion the character and amount of the constituent fibers of the interlinings of any such wool product. Provided, that the foregoing provisions concerning misbranding shall not be construed to prohibit acts permittcd by Paragraphs (a) and (b) of section 3 of the IVool Products Labeling Act of 1939, and provided further, that nothing contained in this order shall be construed as limiting any applicable provisions of said Act or the Rules and Regulations promulgated thereunder.

ORDER TO FILB HEPOHT OF COMPLIANCE It is ordered That tbe respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist (as required by said declaratory decision and order of ovcmber 24, 1951J. Complaint 48 F. T. C.