Buckspan'S et al.

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IN THE ThfA'l'TER OF BUCKSP AN'S ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COJ.fMISSIOX AND THE Fm PRODUCTS LABELING ACTS Docket 6514. Complaint, Feb. 1956-Decision, May 30, 1956 Consent order requiring furriers in Dallas, Tex. , to cease violating the Fur Products Labeling Act by labeling and invoicing which failed to disclose that certain fur products were composed of flanks, and failed to set forth information as required; and by advertising in newspapers which failed to disclose the names of animals producing the fur, the country of origin, the fact that fur contained ill the products was artificially colored, consisted of paws, tails, belles or waste fur, or of flanks; whkh abbreviated required information; and which misrepresented prices and values. Before 1111'. J. Earl COX hearing examiner. illr. lYillia1n R. !(earney for the Commission. Passman Jones of Dallas, Tex., for respondents. CO::IPLAINT Pursuant to the provisions of the Fecleral Trade Commission Act and the Fur Products Labeling Act, and by virtue of the ,mthority vested in it by said Acts, the Fec1era.l Trade Commission, having reason to believe that Buckspan, a corporation, and H. lvi. Buckspan individually and as an offcer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts, and the Rule,s and Regulations promulgated under the Fur Products Label-ng Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interpst, hereby issues its complaint, stating its charges in that respect as follows: PARAGRAPH 1. Respondent, Buckspan, is a corporation organized existing and doing business under and by virtue of the In 'YS of the State of Texas. R.respondent H. 1\1. Buckspan, an individual, js president of respondent, Buckspan, and formulates and controls the policies and practices of said corporate respondent. The said corpol' ate respondent and said individual respondent have their offce and principal place of business located "t 1619 Main Strect, Dallas Texas.

PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9, 1952, respondents have sold, advertised, offered for sale, transported and distributed fur products which have been made in whole or in part of fur which had been shipped and received BUCKSPAN' S ET AL. 1439 1438 Complaint in commerce, as col1nnerce " "fur " and "fur products" are defined in the Fur Products Labeling Act.

PAR. 3. Certain of ;said fur products were misbranded in that they were not labeled as required under the provisions of Section 4 (2) of the Fur Products Labeling Act and in the manner and form prescribed by the Rules and Regulations promulgated thereunder. PAR. 4. Certain of said fur products were misbranded, in violation of the Fur Products Labeling Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects:

(a) Failure to disclose that certain fur products were composed in whole or in substantial part of flanks in violation of Rule 20 of the aforesaid Rules and Regulations.

(b) Required information was mingled with nonrequired information on labels, in violation of Hule 29 (a) of the aforesaid Rules and Hegulations.

(c) Required information 'vas set forth in handwriting on labels in violation of Rule 29 (b) of the aforesaid Rules and Regulations. PAR. 5. Certain of said fur products were falsely and deceptively invoiced in that they ,were not invoiced as required under the provisions of Section 5 (b) (1) of the Fur Products Labeling Act and in the manner and form prescribed by the Rules and Regulations promulgated thereunder.

PAR. 6. Certain of said fur products were falsely and deceptively invoiced, in violation of the Fur Products Labeling Act, in that they were not invoiced in accordance with the Rules and Regulations promulgated thereunder in that:

(a) Required information was set fort.h on invoices in abbreviated form in violation of Rule 4 of the aforesaid Rules and Regulations. (b) Respondents failed to disclose that certain fur products were composed in whole or in substantial part of flanks in violation of Rule 20 of the aforesaid Rules and Regulations. PAR. 7. Certain of said fur products were falsely and deceptively advertised, in 'Tlolntion of the Fur Products Labeling Act, in that respondents caused the dissemination in comme.rce, as "commerce " is defined in said Act, of certain advertisements, concerning said fur products, by IneallS of newspaper.rs and by various other means, which advertisement.s -were not in accordance with the provisions of Section 5 (a) of the Fur Products Labeling Act, and of the Rules fld Hegulations promulgated under said ttc., and which advertisements were intended to aid and did aid, promote and assist, directly or indirectly, in the sale and offering for sale of said fur products. (g) (g) 1440 FEDERAL TRADE COMMISSIOX DECISIONS Complaint 52 F. T. C.

PAR. 8. .ArYlong and including the advertisements as aforesaid, but not limit.cel thereto, were advertisements of respondents which appeared in issues of the "Dallas :Morlling )Tews a nC1Yspaper published ill Dallas, Texas, and having wide circulation in said State and in various other States of the United States. By means oJ the aforesaid advertisements and through others of the same import and meaning, not specifically referred to herein respondents falsely and deceptively:

(a) Failed to disclose the name or names of the animal or animals that produced the fur contained in the fur products, as set forth in the Fur Products Name Guide, in violation of Section 5 (a) (1) the Fur Products Labeling Act.

(b) Failed to disclose that fur contained in fur products was bleachcd dyed or otherwise artificially colored fur, when such was the fact, in violation of Section 5 (a) (3) of the Fur Products Labeling Act.

(c) Failed to disclose that fur products were composed in whole or in substantial part of paws, tails, bellies or ,Yaste fur when such was the fact and in violation of Section 5 (a) (4) other Fur Products Labeling Act.

(d) Failed to disclose the name of the country of origin of any imported furs contained in fur products, in violation of Section 5 (a) (6) of the Fur Products Labeling Act. (e) Set forth required information ill advertisements in abbreviated form in violation of Rule 4 of the aforesaid Rules and Hcgulatiolls. (.) Failed to disclose that fur products were composed in whoJe or in subst.antial part of flanks when such was the fact in violation of Rule 20 of t.he aforesaid Rules and Regulations: :Misrepresentecl prices of fur products as having been reduced from regular or usual prices, where the so-called regular or usual prices were ill fact ficti60us, in that they were not the prices at which said merchandise wa,s usually sold by responde,nts, in the recent regular course of their business, in violation of Rule 44 (a) of the aforesaid Rules and Regulations.

(h) Misrepresented, by means of comparative prices not based 011 current market value, , the amount of savings to be effectuated by plUchasers of said flu products, in violation of Rule 4l (b) of the aforesaid Hules and Re,glllations.

Respondents, in making the pricing claims and representatiolls referred to in subparagraphs and (h) hereof, failed to Inaintain full and adequate records disclosing the facts upon which such claim and representations were purportedly based, in violation of Rule 44 (e) of said Rules and Regulations.

BeCKSPA. S ET AL. 1441 1438 Decision PAR. 9, The aforesaid acts and practices of respondents, as herein alleged, were in violation of the Fur Products Labeling Act, and the Rules and Regulations promulgated thereunder, and constituted unfair and deceptive acts and practices in commerce under the Federal Trade Commission Act.

INITIAL DECISION BY J. EARL cox, HEARING EXX:UINEH The complaint charges that respondents, subsequent to the eiIective date of the Fur Products Labeling Act on August 9 1952, have advertised: offered for sale, sold, transported and distributed "fur products which have been made in whole or in part of fur which had been shipped and received in commerce, as 'commerce fur: and 'fur products' are defined in the Fur Products Labeling Act :' some of which were 111isbranc1ed in violation of the Federal Trade Commission Act, and of the Fur Products Labeling Act aml the Rules and Re.gulations promulgated thereunder. Respondents filed an answer thereto which, in general, denied the allegations of the complaint, but thereafter, on April 2 , 1956, they and their counsel entered into an agreement ,dth counsel snpporting the complaint, in -which they COllsented to the issuance of an order to cease and desist. This agreement was approved by the Director and Assistant Director, Bure 1u of Litigation of the Commission, and thereafter transmitted to the Hearing Examiner for consideration.

The agreement identifies respondent Bnckspan s il. f1 corporation existing and doing business under and by virtue of the laws of the State of Texas, with its offce and principal place of business located at 1619 Main Street, Dallas, Texas, and sets forth that individual respondent H. 1. Buckspan is president of said corporate responde, and has the same address.

The agreement provides, among other things, that respondents admit all the jurisdictional facts alleged in the complaint and agree that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations; that respondents ansv.mr to the complaint shall be considered as having been withdrawn, and that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of thc complaint and this agreement; that the agreement shall not become a part of the offcial record unless and until it becomes a part of the decision of the Commission; that the complaint may be used in construing the terms of the order agreed upon, which may be altered modified, or set aside in the manner provided for other orders; that the agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as 1442 FEDERAL TRADE CO:MIISSiION DECISIOKS Order 52 F, T. C.

alleged in the complaint; and that the order set forth in the agreement and hereinafter included in this decision shall have the same force and effect as if entered after a full hearing. Respondents waive further procedural steps before the Hearing Examiner and the Commission, the making of findings of fact or conclusions of law, and all of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with the agreement.

The order agreed upon fully covers all the issues raised in the complaint, and adequately prohibits the acts and practices charged therein as being in violation of the Federal Trade Commission Act and of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder. Accordingly, the Hearing Examiner finds this proceeding to be in the public interest and accepts the Agreement Containing Consent Order To Cease And Desist as part of the record upon which this decision is based. Therefore It is ordered That respondents, Buckspan, a corporation, and its offcers, and H. M. Buckspan, individually and as an offcer of said corporation, and respondents' representatives, agents, and employees directly or through any corporate or other device, in connection with the introduction into commerce, or the sale, advertising, or offering for sale in commerce, or the transportation or distribution in commerce, of fur products, or in connection with the sale, advertising, offering for sale, transportation, or distribution of fur products which have been made in whole or in part of fur which has been shipped and received ill commerce, as "commerce fur " and "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. Misbranding fur products by:

1. Failing to affx labels to fur products showing: (a) The name or names of the animal or animals producing the fur or furs contained in the fur product, as set forth in the Fur Products Name Guide and as prescribed under the rules and regulations: (b) That the fur product contains or is composed of used fur when such is a fact;

(0) That the fur product contains or is composed of bleached, dyed or artifcially colored fur when such is a fact; (d) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur when such is a fact: (e) The name, or other identification issued and registered by the Commission, of one or marc persons who manufactured such fur product for introduction into commerce, introduced it into com- BUCKSP AN' S ET AL. 1443 1438 Order meree, sold it in commerce, advertised or offered it for sale in commerce, or transported or distributed it in commerce; (I) The name of the country of origin of any imported furs used in the fur product;

2. Setting forth on labels attached to fur products: (a) Nonrequired information mingled with required information; (b) llequired information in handwriting; 3. Failing to show on labels attached to fur products that the fur products are composed in whole or substantial parts of flanks when such is the fact;

11 Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoices to purchasers of fur products showing:

(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 Name Guide and as prescribed under the Rules and Regulations; (b) That the fur product contains or is composed of used fur when such is a fact;

(0) That thc fur product contains or is composed of bleached dyed, or otherwise artificially colored fur, when such is a fact; (d) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, when such is a fact; (e) The name and address of the person issuing such invoice; (I) The name of the country of origin of any imported fur contained in a fur product;

2. Setting forth required information in abbreviated fonn; 3. Failing to set fortb on invoices pertaining to fur products that the fur products are composed in whole or in substantial part of flanks, when such is the fact;

C. Falsely or deceptively advertising fur products, through the use of any advertisement, representation, public announcement, or notice which is intended to aid, promote, or assist, directly or indirectly, in the sale or offering for sale of fur 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 product as set forth in the Fur Products Kame Guide, and as prescribed under the Rules and Regulations; (b) That the fur products contain or are composed of bleached dyed, or otherwise artificially colored fur when such is a fact; (0) That the fur products are composed in whole or in substantial part of paws, tails, bellies, or waste fur when such is the fact; (d) The country of origin of imported furs as required by the Fur Products Labeling Act or in the manner aud form permitted by 1444 FEDERAL TRADE COMMISSJOX DECISIONS Decision 52 ".T. Rule 38 (b) of the Rules and Regulations promulgftted thereundcr; (e) Setting forth required information in abbrcviated form; (f) That fur products are composed in whole or substantial part of flanks, when such is the fact;

2. Represents, directly or by implication, that the regular or usual price of any fur product is any amount ,,,hieh is in excess of the price at which the re.spondents have usually n,ncl customarily sold such products in the recent regular course of their business; 3. 1Iakes use of comparative prices or percentage savings claims unless such compared prices or claims arc based upon current 111arket value of the fur product or upon a bona fide compared price at a designated time;

4. J\Iakes pricing claims or representations of the type referred to in Paragraphs C 2 and C 3 above, unless there is maintained by respondents an adequate record disclosing the facts upon which such claims or representations arc based.

DECISION OF THE COJBIISSIOX AXD ORDER TO FILE RI PORT OF CO lPUANCE Pursuant to Section 3.21 or t.he Commission s R,nJes or Practice, the illitial decision of the hearing examiner shall, on the 30th day of I\fay 1956, becoIne the decision or the Commission; and, accordingly: 1 t i8 ordered That respondents Buckspa, , a corporation, and H. 11. Buckspan, individually and as an offcer of said corporation shall, within sixty (60) days after service upon them of this order file .with the Commission a report in writing setting forth in detail the manner and form in which they have complied with the arller to cease and desist.

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FVR & WOOL 1JLLS, INC. ET AL. 1445 Complaint