Joe Fried Woolen Corporation

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IN THE Marrer OF JOE FRIED WOOLEN CORPORATION ET AL.

CONSENT SETTLEJlmNT IN RmBRD TO THE ALLEGED VIOLATION OF TI-IE FED- ERAL TRADE cOJlI::HSSION ACT AND THE WOOL PRODUCTS LABELING ACT Docket 6141,. Cornpl(lint, Nov. 18, 1953-lJecision, Feb. 9 1951, Where a corporation and its president, engaged in jobbinp; and sellng at wholesale wool fabrics purchased from manufacturers in other states- (a) 'With intent to violate the provisions of the Wool Products Labeling Act participated in and caused the removal of stamps, tags, labels, or other means of identification which had been affxed to certain of said woolen fabrics which purported to contain the information required by the said Act and the Rules and Regulations promulgated thereunder to be affxed thereto and (b) Misbranded certain of said wool products in that, following the receipt and removal of the original manufat:turer s tags, etc., as aforesaid, they falsely and deceptively labeled and tagged the same with respect to the character and mnount of the constituent tibers (:ontainetl therein and thus misbranded woolen fabrics or piece goods containing subf;tantial quantities of fibers other!' than wool as " 100% 'Vool"

Herd That sllch acts and practices and 111ethods, lllHhT the circumstances set forth, \were in violation of the 'Voal Products LalH' illg Act and constituted unfair :1l1l1 deceptive acts and practices in commerce. Before illr. John Lmul8 hearing examiner. J/-r (;cor9c E . StcinmctB for the Commission. lib,. 8am1wl J. Krinn of :New York City, for respondents. CO::SE::T SETTLEMENT 1 Pursuant to the pl'wisioJls of the Federal Trade Commission Ad and the IVool Products Labeling Ad of 1939, the Federal Trade Commission, on N ovembcl' 18 193i\ issued and subsequently served its complaint upon the respondents named in the caption hereof, charging them with the use of unfair and deceptive acts and practices in violation of the provisions of said -\ets. 1 TlJe Commission s "Notice" announcing and promulgating the consent settlement as publislJed hercwith, follows:

The COIl:-ent settlement tendel'e(l by the parties in this proccedin, ;l COP,y of ,vbieb is !-erH d lien \with, \vas accppted b: tlJe Comlli :,i()n OIl February D , ID;)4 and ordered entered o:f record a the Commi i()n findings to the facts, conclusions, anel order in !lisposi UOII of this pr()c!:edil! TJ)f time for tiin;..; I'f'1)(11" t of cOllpliancf- pllr,.u,mt to tll( nforN,nid on1rr runs f ' )1 t:ie IIn tf' (11' s€l'yice hPl' pol 40:H4::- 37- 4:J 658 FEDERAL 'I'TRADE COMMISSION DECISIONS Findings 50 F. T. C.

The respondents, desiring that this proceeding be disposed of by consent settlement procedure, provided in Rule V of the Commission llules of Practice, solely for the purpose of this proceeding, and 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 answer to said complaint, hereby: 1. Admit ajj the jurisdictional allegations set forth in the eompbint.

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, speeificaJJy 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, ajj of which the respondents consent may be entered herein in fi.nal disposition of this proceeding, are as follows :

FIXDIKGS AS TO THE FACTS I' ARAGRAPlI 1. Respondent oe Fried ,V oolen Corporation is a corporation organized and existing under and by virtue of the laws of the State of New York and respondent .Joseph Fried is the president thereof. Said individual respondent formulates, directs and controls the acto, policies and practices of said respondent corporation, the business of which consists of the jobbing and selling at wholesale of wool fabrics. The offee and principal place of business of both respondents is located at 226 ,Vest 37th Street, 1'ew York, New York.

PAIL 2. Subsequent to the efl2ctin d'HU of said ,Yool Products Labeling Act of HJ3D and more especially since January of IDi)l, said respondents have purchased from variou:i manufacturers located in States other than New York State, wool products, as "wool products are defined in s"id Act. Said wool products, consisting of woolen fabrics, have been and are, after purchase by respondents, transported in commerce from the sellers located in other States to respondents JOE FRIED WOOLEN CORP. ET AL. 659 657 Conclusion in the State of N ew York. Said woolen fabrics so manufactured for introduction into, and transported in commerce, as aforesaid were thereafter offered for sale and sold by said respondents to the general public at their said place of business located at 226 West 37th Street, N ew York, N ew York.

PAR. 3. Certain of said woolen fabrics purchased and transported in commerce, as aforesaid, had affxed thereto when delivered to them at their said place of business, stamps, tags, labels, or other means of identifteation required by said \Vool Products Labeling Act of 1939. Thereafter, and before being offered for sale or sold by respondents to the general public, the respondents, with intent to violate the provisions of said 'W 001 Produds Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, removed, and participated in and caused the removal of such stamps, tags, labels or other means of identification which purported to contain the information required by the provisions of said Act and said Rules and Regulations to bc affixed to such products by the manufacturer thereof, or by some person authorized or required by said Act to affx such stamps, tags labels or other means of identification to said wool products. PAR. 4. Subsequent to the eIrective date of said Wool Products La beling Act of 1939, and more especially since January of 1951 respondents introduced into, ofiered for sale, sold and delivered in commerce, as "commerce" is defined in the said \V 001 Products Labeling Act, wool products, as "wool products" are def111ed therein. PAR. 5. Certain of said wool products were misbranded within the meaning and intent of said \V 001 Products Labeling Act and the Rules and Regulations promulgated thereunder in that, following the receipt and removal of the original manufacturers' tags, stamps labels or other means of identification by respondents, as aforesaid said respondents thereupon falsely and deceptively bbeled or tagged the same with respect to the character and amount of the constituent fibers contained therein.

Among such wool products misbranded by respondents, as aforesaid were woolen fabrics or piece goods labclcd or tagged by respondents as consisting of " 100% \V 001 " whereas in truth and in fact, said fabrics did not consist of one hundred percent wool but contained substantial quantities of fibers other than wool.

CONCLUSION The aforesaid acts, practices and methods of the responueni'i, as herein found, were and are in violation of the Wool Products Labeling Act of 1939, and of the Rules and Regulations promulgated there- Order 50 F. T. C. under, and as such constitute unfair and deceptive acts and practices in commerce within the meaning and intent of the Federal Trade Commission Act.

ORDER TO CEASE AND DESIST It is ordered That the respondent .Joe Fried Woolen Corporation a corporation, and its offcers, and respondent Joseph Fried, individually, and respondents' respective agents, representatives and eminployees, directly or through any corporate or other device, connection with the introduction or manufacture for introduction into commerce, or the offering for sale, sale, transportation or distribution in commerce, as "commerce" is defined in the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, of woolen fabrics or other "wool products" as such products arc defined in and subject to the IV 001 Products Labeling Act of 1939; which products contain, purport to contain, or in any way arc 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 stamping, tagging, labeling or otherwise ful ely identifying such products as to the character or amount of the constituent fibers contained therein;

Prol!ided That the foregoing provisions concerning misbranding shall not be construed to prohibit acts permitted by paragraph (a) and (b) of Section 3 of the IV 001 Products Labeling Act of 1939; and provided fu,rther ihat nothing contained in this Order shall be construed as limiting any applicable provisions of said Act or the Hules and Regulations promulgated thereunder.

It is further- O1'dei' That said respondent .Joe Fried 'VVoolen Corporation, a corporation, and its offcers, and respondent Joseph Fried individually, and respondents' respective agents, representatives and employees, directly or through any corporate or other device, in connection w.ith the purchase, offering for sale, sale or distnbution of wool products" as such products are defined in and subject to the Wool Products Labeling Ad of 1939, do forthwith cease and desist from causing or participating in the removal of any stamp, tag, label or other means of identification affxed to any such "wool product" pursuant to the IVool Products Labeling Act of 1939, with intent to violate the provisions of said Act, and which stamp, tag, label or other means of identification pllrports to contain ajj or any part of the information rerluired by said Act.

It is ,fur-ther ordered That the respondents herein shall, within sixiy ((j() days after service llpon them of this Order. file with the Com- JOE FRIED WOOLEN CORP. ET AL. 661 657 Order mission a report in writing setting forth in detail the manner and cease and desist.form in which they have complied with the order to Joe Fried .Woolen Corporation a corporation.

Dy jsj Joseph Fried President. jsj Joseph Fried JOSEPH FRIED, individually and as an offcer of J 06 Fried .W oolen corporation, a corporation.

Date: Dec. 16, 1953.

The foregoing consent settlement is hereby accepted by the Federal Trade Commission and ordered entered of record on this 9th ciay of February, 1954.

662 FEDERAL l' TRADE CO::IMISSION DECISIONS Order 50 F. T. C.