Feller, Inc.

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IN THE ~fatter OF FELLER' , IKC., ET AL.

cox SENT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE DERAL TRADE CO nIISSION A.:D THE FUR PROIJ'GCTS LABELING ACTS Docket 6429. Complaint, Oct. 19.55-Deci. ion, Apr, 4, 1.9,";6 Consent order requiring a furrier in Harrisburg, Pa., to cease violating the Fur Products Labeling Act through failng to comply with the labeling, advertising, and invoicing requirements. Before j1fr. Robert L. Piper herring examiner. ilr. Philip R. ilelangton, Jr. for the Commission. Mr. David E. Feller of Washington. D. C. , for respondents. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Feller, Inc. , a, corporation, and Charles FeHer and Oscar Feller. individually and as offcers of said corporation, hereinafter referred to as frspondents, have violated the provisions of said Acts, find the Rules and Reguhtions promulgated under the Fur Products Labeling Act, ancl 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:

PAHAGHAPH 1. Responcle,nt Fe,ller, Inc. , is a corporation orga.nized and existing under and by virtue of the hnvs of the Commonwealth of Pennsylvania with its office, and principal place of business at Third & :Market Streets, Harrisburg. Prl1nsylvania. Respondents Charles Feller and Oscar Fel1er are president and secretary-trea,surer, respectively, of said corporate respondent. These individuals, acting in cooperation with each other, JormuJate, direct and control the acts, policies, and practices of said corporate, respondent. Their addresses are the same as that of said corporate respondent.

PAR. 2. Subsequent to the effectiw elate of ti,e Fnr Products Labeling Act; August. 8 , 1 9;'):2, re ponclents 11a ve been and now are , acl-engaged in the introduction into commprce, Hnel in the. sale n:"rtising, and offering for sale in commerce, and in the, transportation and distribution in commerce, of fur products; and have sold FELLER' S L , ET AL. 1053 Complaint1052advertised, offered for sale, transported, and distributed fur prodnets which have been made in whole or in part of fur which had been shipped and rec.eived" in com1nerce,-as the terms "commerce '" "fur and "fur products" are defined in the said Fur Products Labeling Act.

PAR. 3. Certain of said fur products were misbranded in t.hat they were blsely and deceptively labeled .01' otherwise falsely and deceptively identified with respect t.o the name or names of the animal or animals that produced t.he fur from which said fur products had been manufactured, in violation of Section 4 (1) of t.he Fur Products Labeling Act.

PAR. 4. Certain of said fur products '\There misbrande,d in that they were not labeled as required under the provisions of Section 4 (2) of t.he Fur Products Labeling Act and in the manne.r and form prescribed by the Rules and Heguletions promnlgated the,reunder.

PAR. 5. Certain of said fur products were misbra.nded in that on labels attached thereto.o, respondents set forth the name of. animal other than the name of the animal that produced the fur product, in violation of Section 4 (3) of the Fur Products Labeling Act and the Rnles and Regulations promulgated thereunder. PAR. 6. Certain of said fur products were misbranded, in violation of the Fur Products Labeling Act, in that the:v were not labeled in accordance with the Rules and Regnlatiolls promulgated thereunder in the following respects:

(A) Required information was set forth in abbreviated form in violation of Rule 4 of the aforesaid Hules and H.eglllations. (B) Required information was mingled with non-required informat.ion on lebels, in violation of Rule 29 (aJ of the aforesaid Hules a.nd Regulations.

PAR. 7. C;certain of said fn!' proclucts were fnJsely and deceptively advertised in violation of said Fur Products Labeling- Act in that the respondents caused tlle dissemination in commerce commerce" is defined jn said Act of certain advertisements with respect to said fur products through the mecl1nm of ne\vspapers nd by various other means, ,vhieh advertisements were not lti accordanee with the provisions of Section 5 (a) of said Act and which a,clvertisements were intended to aid and did aid promote and assist, directly and ind1redly in the sale and offering for sale of said fur products.

PAH. 8. Among said advertise,ments but not limited thereto were advertiseme,nts disseminated by the rcsponc1€mts in various issues of the "Evening K ews The Patriot " and "Sunday Patriot- 4f)1324- 50-- 1054 FEDERAL TRADE COl\I:USSIOX DECISIONS Complaint 52 F. l'. C. News " newspapers published in I-Iarrisburg, Pennsylvania, and each having a wide circulation in said State and in various other States of the United States.

By and through the means of the aforesaid advertisements as well as others of the same import and meaning. not specifically referred to herein, respondents falsely and deceptively: (A) Failed to disclose the name and names of the animal or animals that produced the fur contained in the fur products set forth in the Fur Products N a.me Guide, in violation of Section 5 (a) (1) of the Fur Products Labeling Act. (B) Failed to disclose that fur contained in fur products was bleached, dyed or otherwise artifically colored fur. when such was the fact, in violation of Section 5 (a) (3) of the Fur Products Labeling Act.

(C) Failed to disclose the name of the country of origin of imported furs contained in fur products, in violat.ion of Section 5 (a) (6) of the Fnr Products Labeling Act.

(D) Failed to disclosc that certain fur products were in truth and in fact second-hand, in violation of Rule 23 of t.he R.ules and Hegulations promulgated pursuant to said Act. (E) Set forth the name or names of auimals other than those producing the fur conta.ined in the fur products, in violetion of Section 5 (a) (5) of the Fur Products Labeling Act. PAR. 9. Certain of said fur products were falsely and deceptively invoiced by the respondents in that they were not invoiced as required under the provisions of Section 5 (b) (1) of the said Fur Products Labeling Act, and in the manner and form prescribed by the R.ules and Regulations promulgated thereunder. PAR. 10. Certain of said fur products were falsely and deceptively invoiced by the respondents in that invoices furnished to purchasers thereof set forth the name of an animal in addition to the name of the animal which produced the fur; further, that the respondents in addition misrepresented therein the country of origin of imported furs cont,ainec1 in said fur prodllcts in violation of Section 5 (b) (2) of said Fur Products Labeling Act, and the Rules and Regulations promulgated thereunder. PAR. 11. R.respondents in the conduct of their business, are in substantial competition with other firms, corporate.ions and individuals in the sale, advertising: distribution. offering" for side, ancl selling in commerce of fur product PAR. 12. The acts and practices of the l'e:-poll(lents as hereinbefore alleged were and are in viohtioll of tllP Fur Products Labeling Act and of the Rules and HegnlntinJls pl'Olllulgated thereunder FELLEH' S INC. ) ET AL. 1055 1052 Decision and constitute unfair methods of competition and unfair and deceptive acts and practices, in commerce, within the intent and meaning of the Federal Trade Commission Act. INITIAIJ DECISION BY ROBERT L. PIPER, HEARING EXAMINER The Federal Trade Commission issued its complaint against the ahove-named respondents on October 19 , 1955, charging them with having violated the Fur Products Labeling Act, the rules and regulations issued thereunder, and the Federal Trade Commission Act. After being served with said complaint, respondents appeared by counsel and entered into an agreement, dated February 3, 1956 containing a consent order to cease and desist disposing of all the issues in this proceeding without hearing. Said agreement has been submitted to the undersigned, heretofore duly designated to act. as hearing e.examiner herein, for his consideration in accordance with Section 3.25 of the Rules of Practice of the Commission. Respondents, pursuant to t.he aforesaid agreement, have admitted all of the jurisdictional allegations of the complaint and agreed that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations. Said agn ement further provides that respondents waive all further procedural steps be.fore the hearing examiner or the Commission including the mn.kingof findings of fact or conclusions of law and the right to challellge or contest the validity of the order to cease and desi t entered in accordanee with such agreement. It has also been agreerl that t.he rpcord herein shall consist solely of the complaint :lncl said fLgl'eemeut, that the agreement shah not become a, pa.rt of the offeja1 record unless and until it becomes a part of the decision of the ComlYist;ion that saiel agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated t.he Jaw as alleged in the complaint, that said order to cease and clesist shall have the same force and effect as if entered after a fnll herring and may be altered, modified, or set aside in the manner provided for other orders, and that the complaint mn y be used in c.onstruing the terms of the order. This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing the eonsent order, and it appearing that the order and agreement (1) cover all of the allegations of the compbint except the allegation t.hat respondents in certain advertising failed to disclose that certain fur products offered for sale were second-hand, which allegation as explained by memorandum of eonnsel supporting the complaint and affdavit. of respondent Charles Fe11er, was abandoned for good 1056 FEDERAL TRADE CO fjfISSIOX DECISIONS Order 52 F.

reasons shown, and (2) provide for appropriate disposition of this proceeding, the same are hereby accepted and ordered filed upon becomingpart' ofthe Comiri-issjon s decision pUl'sualit to Sections:3. and 3.25 of the Rnles of Practice, and the hearing examiner accordingly makes the following findings, for jurisdictional purposes and order:

1. Respondent Feller, Inc. is a corporation existing and doing business under and by virtue of the laws of the Commonwealth of Pennsylvania, with its offce and principal place of business located at Third and Market Streets, in the City of Harrisburg, Commonwealth of Pennsylvania. Respondents Ch"rules Feller and Oscar Feller are individnals and offcers of said corporate respondent and have the same address as that of the said corporate respondent. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents above named. The complaint states a cause of action against said rpspondents under the Fur Products Labeling Act and the Federal Trade Commission Act! and this proceeding is in the interest of the public. ORDER It i-s o1'dered That the respondents Fe1Jer s. Inc.. a corporation and its offcers, and Charles Feller ami Oscar FeJ1er, individually and as offcers of said corporatioll: and respondents' represent.atives agents and employees directly or through any corporate or other cleviee, in connection with the introduction into commerce, or the sale, advertising, or offering for sale in commerce. or the transport,ation or distribution in commerce of fur prodllcts or in connection with the sale: a,(lve.rti ing. offering for sale, tr(ln port(ltion or distribution of fur prac111cts which 11HYC. been made ill whole or in part of fur which has been shippetl ,1ld received in commerce: as "commerce('. fur.:' ami " fur products" are defined in the Fur Products Labeling Acl do fortlnvith ('ease and desist from:

A. l\1isbl'anc1ing fur products by:

(A) Falsely or deceptively l:lbeJing or otherwise identifying any such product as to the name. or names of the animal or animals that produce the fur from which such product v.-as manufactured; (2) Failing t.o aflix labe.ls to fur products showing: (a) The name or names of t.he Hnimal or animals producing t.he fur or furs contained in the fur produc' as set forth in the Fur Products Kame Guide and as prescribed under' the Rules and Regulations;

(b) That the fur product contains or is composed of bleached dyed. or otherwise artificially colored fur. when such is the fact; FELLER' S INC. ET AL. 1057 1052 Order (c) The Ilanle of the country of origin of any imported furs used in the fnr products;

(d) The name, or other identification issued and registered the Commission, of one or more persons who manufactured such fur product for introduction into commerce, introduced it into commerce, sold it in commerce, advertised or offered it for sale in commerce, or transported or distributed it in commerce; (e) That the fnr product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, when such is the fact; (3) Setting forth on labels attached to fur products, the name or names of any animal or animals other than the name or names provided for in paragraph A (2) (a) above; (4) Setting forth on labels attached to fur prodnets: (a) Non-required information mingled with required information; (b) Required information in abbreviated form; B. Falsely or deceptively advertising fur products through the llse of any advertisement, representation, public announcement, notice, or in any other manner, which is intended to aiel, promote or assist, directly or indirectly, in the sale or offering for sale aT fnr products, and which:

(1) Fails to disclose:

(a) The name or names of the animal or animals producing the fur or furs contained in the fur products as set forth in the Fur Products ame Guide and as prescribed under the Hules and Regulations;

(b) That the fur products contain or are composed of bleached dyed, or otherwise artificially colored fur: when such is the fact; (0) The name of the country of origin of any imported furs c.contained in fur products;

(2) Sets forth, directly or by implication: (a) The name or names of any animal or animals other than the name or names provided for in Paragraph Five (0) (5) of the Fur Products Labeling Act;

C. Falsely or deceptivcJy invoicing fur products by: (1) Failing to furnish invoices to purclmsers of fur products showing:

(a.) The name or names of the animal1 or animals producing the fur or furs contained in the fur proc1llc.t: as set fort.h in the Fur Products N aide Guide and as presc.ribed under the Rl:1es and Regulations;

(b) That the fur product contains or is composed of bleached dyed or otherwise artificially colored fur, when such is a fact; (0) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, when sllc.h is a. fact; Deeisioll :)2 F. T. C. (d) The name and address of the persall issuing such invoice j (e) The name of the country of origin of any imported furs contained in a fur product;

(2) Using on invoices the name or names of any a.animal or animals other than the name or names provided for in paragraph C (1) (a) above, or furnishing invoices which misrepresent. the conn try of origin of imported furs contained in fur products or which contain any form or misrepresentation or decept.ion, (11rectly or by implication, with respect to such fur product,. DECISION OF THE COllflIISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 3.21 of t.he Commission s gulcs of Practice. the initial decision of the hearing examiner shall, on the Mh day of April, 1956 , become the decjsion or the Commission; anel accordingly :

It is ordered That respondents Feller, Inc. , (1, corporation, and Charles Feller and Oscar Feller, individually and as oflicers of Feller, Inc., shall, within sixty (60) days after service upon them or this order, file with the Commission a report in writing set.ting forth in detail the manner and form in which they have complied with the order to cease and desist.

DODGE INCORPORATED ET AL. 1059 Complaint