Chabetaye Chraime doing business as; Ch. Chraime

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IN THE ~1:ATTER OF CIIABET AYE CHRAlME DOING BUSINESS AS Ch. CHRAIME CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COlVIl\IISSION AND THE Flat\IMABLE FABRICS ACTS Docket 641"1. Complaint, Sept. 1955-Decision, Jan. 6, 1956 Consent order requiring an importer in New York City to cease violating the Flammable Fabrics Act by importing into the United States from Japan and selling silk scarves so highly inflammable as to be dangerous when worn.

Before Mr. Jmnes A.. PurJ'cell hearing examiner. Mr. Brock1nan Horne for the Commission. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Flammable Fabrics Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Chabetaye Chraime, an individual trading and doing business as Ch. Chraime, hereinafter referred to as respondent has violated the provisions of said Acts, and the rules and regulations promulgated under the Flammable Fabrics Act, and it appearing 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. Chabetaye Chraime is an individual trading and doing business as Ch. Chraime, with his office and principal place of business located at 93 worth Street, New York 13, New York. PAR. 2. Respondent, subsequent to July 1 , 1954, the effective date of the Flammable Fabrics Act, has imported into the United States articles of wearing apparel, as the term "articles of wearing apparel" is defined in the Flammable Fabrics Act, which, under the provisions of Section 4 of said Act, as amended ""ere so highly flammable as to be dangerous when worn by individuals. Respondent has sold, offered for sale, introduced, delivered for introduction transported, and caused to be transported in commerce, as "commerce" is defined in the Flammable Fabrics Act, the said articles of wearing apparel, imported as aforesaid. Respondent has also transported and caused to be transported the said articles. of wearing, ap- Decision 32 F. T. C.parel, imported as aforesaid, for the purpose of sale and delivery after sale in con1merce.

Among the articles of wearing apparel mentioned hereinabove' were silk scarves manufactured in Japan.

PAR. 3. Respondent, in the course and conduct of his business, is, engaged in direct and substantial competition in commerce with otherindividuals, firms and corporations in the sale and offering for sale' of scarves which are not flammable "articles of wearing apparel'" under the definition in the Flammable Fabrics Act. PAR. 4. The aforesaid acts and practices of respondent were and: are in violation of the Flammable Fabries Act and the rules and regulations promulgated thereunder, and as such constitute unfairmethods of competition and unfair and deceptive acts and practices. in commerce within the intent and meaning of the Federal Trade- Commission Act.

INITIAL DECISION BY JAMES A. PURCELL, HEARING EXAMINER The complaint in this proceeding, issued September 21 , 1955 charges the respondent, Chabetaye Chraime, an individual trading and doing business as Ch. Chraime, whose office and principal place of business is located at No. 93 Worth Street, New York, (13), New York, with violation of the Federal Trade Commission Act and of the Flammable Fabrics Act and the Rules and Regulations promulgated thereunder, in connection with the importation, sale, offering' for sale and transporting in interstate commerce of articles of Vlearing apparel which articles were so highly flammable as to be dangerous when worn by individuals.

After the issuance of said complaint the respondent entered into. an agreement for consent order with counsel in support of complaint disposing of all the issues in this proceeding, which agreement was duly approved by the Director of the Bureau of Litigation. It was expressly provided in said agreement that the signing thereof is for settlement purposes only and does not constitute an admission by respondent that he has violated the law as alleged in the complaint. By the terms of said agreement, the respondent admitted all the. jurisdictional allegations of the complaint and agreed that the . record herein may be taken as if the Commission had made findings of jurisdictional facts in accordance with such allegations. By said agreement the parties expressly waived a hearing before the hearing' examiner or the Commission, the making of findings of fact or conelusions of law by the hearing examiner or the Commission, the filing of exceptions and oral argument before the Commission, and. CR. CHRAIME 641 639 Order :all further and other procedure before the hearing examiner and the Commission to which the respondent may be entitled under the Federal Trade Commission Act or the Rules of Practice of the 'Co1Il)Ilission.

By said agreement, respondent further agreed that the order to cease and desist issued in accordance with said agreement shall have the same force and effect as if made after a full hearing, presentation or evidence and findings and conclusions thereon, and specifically challenge or contestthewaived validityany and all right,ofpowersuchor privilegeorder.to It was further provided that said agreement, together with the complaint, shall constitute the entire record herein; that the complaint herein may be used in construing the terms of the order issued pursuant to said agreement; and that the said order may be altered modified or set aside in the manner provided by the statute for the orders of the Commission.

The hearing examiner has considered such agreement and the order therein contained, and, it appearing that said agreement and order provides for an appropriate disposition of this proceeding, the same is hereby accepted and is ordered filed upon becoming part of the Commission s decision in accordance with Sections 3.21 and 3.25 of the Rules of Practice, and in consonance with the terms of said agreement, the hearing examiner finds that the Federal Trade Commission has jurisdiction of the subject matter of this proceeding ang of the respondent named herein, and that this proceeding is in the interest of the public, and issues the following order: ORDER It is opdeTed That the respondent Chabetaye Chraime, an individual~ his representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from:

1. (a) Importing into the United States; or (b) Selling, offering for sale, introducing, delivering for introduction, transporting or causing to be transported, in commerce, as commerce" is defined in the Flammable Fabrics Act; or (c) Transporting or causing to be transported, for the purpose of sale or deli very after sale in commerce; any article of :wearing apparel, which, under the provisions of Section 4 of the said Flammable Fabrics Act, as amended, is so highly flammable as to be dangerous when worn by individuals. Decision 52 F. T. C.

DECISION OF THE COMl\HSSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing examiner shall, on the 6th day of January, 1956 become the decision of the Commission; and, accordingly :

It is ordered That the respondent herein shall, within sixty (60) days after service upon him of this order, file with the Commission a report in writing setting forth in detail the manner and form in which he has complied,d with the order to cease and desist. ARKWRIGHT ACCESSORIES, INC. , ET AL. 643 Complaint