Waste Fibres Corp.

Text (OCR of the scan at left; may contain errors)

In THE Marrer oF WASTE FIBRES CORP. ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LARELING ACTS Docket 6908. Complaint, Oct. 3, 1957—Decision, Feb. 27, 1958 Consent order requiring a manufacturer in Brooklyn, N.Y., to cease violating the Wool Products Labeling Act by failing to label the woolen fibrous stock it made and sold to yarn manufacturers and woolen mills, and by describing it as ‘100% wool,” etc., on sales invoices and shipping memoranda when it contained substantial quantities of reused or reprocessed wool and other nonwoolen fibers.

Michael J. Vitale and Thomas A. Ziebarth, Esqs., for the Commission. Initial Decision ny James A. Purcett, Hearing Examiner The complaint in this proceeding, issued October 3, 1957, charges the respondents Waste Fibres Corp., a corporation, and George M. Goldman and Ernest Zahler, individually and as officers of the corporate respondent, with violation of the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, and of the rules and regulations promulgated under authority of the said Wool Products Labeling Act, in connection with the introduction or manufacture for the introduction into commerce, or offering for sale, sale, transportation or distribution of woolen fibrous stock or other wool products, in commerce, as “commerce” is defined in said acts. After the issuance of said complaint respondents, on December 8, 1957, entered into an agreement for a consent order with counsel in support of the complaint, disposing of all of the issues in this proceeding, which agreement was duly approved by the director and assistant director of the Bureau of Litigation of the Federal Trade Commission. It was expressly provided in said agreement that the signing thereof is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint. By the terms of said agreement, the respondents admitted all of the jurisdictional allegations of the complaint and agreed that the record herein may be taken as though 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 conclusions of law by the hearing examiner or the Commission, the Order 54 F.T.C.

filing of exceptions and oral argument before the Commission, and all further and other procedure before the hearing examiner and the Commission to which the respondents may otherwise be entitled under the Federal Trade Commission Act or the rules of practice of the Commission.

By said agreement, respondents further agreed that the order to cease and desist issued in accordance with said agreement shall have the same force and effect as though made after a full hearing, presentation of evidence and findings and conclusions thereon, and specifically waived any and all right, power or privilege to challenge or contest the validity of such order.

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 statute for other orders of the Commission.

Said agreement recites that respondent Waste Fibres Corp., is a corporation existing under and by vurtue of the laws of the State of New York, with its office and principal place of business located at No. 300 Butler Street, Brooklyn, N.Y.; that respondents George M. Goldman and Ernest Zahler are individuals and president and vice president of the corporate respondent; that as such they formulate, direct and control the policies, acts and practices of the corporate respondent.

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 and of all respondents named herein, and that this proceeding is in the interest of the public, wherefore he issues the following order: ORDER Tt ts ordered, That respondents Waste Fibres Corp., a corporation and its officers, and George M. Goldman and Ernest Zaller, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction or mauufacture WASTE FIBRES CORP. ET AL. 1109 1107 Decision for the introduction into commerce, or 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 fibrous stock or other “wool products,” as such products are defined in and subject to the Wool 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:

A. Misbranding such products by failing to securely affix to or place on each such product a stamp, tag, label or other means of identification showing in a clear and conspicuous manner: (a) The percentage of the total fiber weight of such wool product exclusive of ornamentation not exceeding 5 per centum of said total fiber weight, of (1) wool, (2) reprocessed wool, (3) reused wool, (4) each fiber other than wool where the percentage by weight of such fiber is 5 per centum or more, and (5) the aggregate of all other fibers. (b) The maximum percentage of the total weight of such wool product of any nonfibrous loading, filling, or adulterating matter. (c) The name or 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 delivery for shipment thereof in commerce, as “‘commerce”’ is defined in the Wool Products Labeling Act of 1939.

It is further ordered, That Waste Fibres Corp., a corporation, and its officers and George M. Goldman and Ernest Zahler, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or through any corporate of other device, in connection with the offering for sale, sale or distribution of woolen fibrous stock or any other products or materials in commerce, as “commerce” is defined in the Federal Trade Commission Act do forthwith cease and desist from directly or indirectly: Misrepresenting the constituent fibers of which their products are composed or the percentages or amounts thereof in sales invoices, shipping memoranda, or in any other manner. DECISION OF THE COMMISSION 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 27th day of Decision 54 F.T.C.

February 1958, become the decision of the Commission; and, accordingly :

It is ordered, That the respondents herein 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 order to cease and desist. LYTTON’S, HENRY C. LYTTON & CO. 1111 Decision