E. L. Brownhill, Inc.

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In THE Marrer or E. L. BROWNHILL, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket 7055. Complaint, Jan. 81, 1958—Decision, June 27, 1958 Consent order requiring a furrier in Greensboro, N.C., to cease violating the Fur Products Labeling Act by affixing to fur products labels carrying fictitious prices and misrepresenting regular prices; by misuse of the term “‘blended”’ in labeling, invoicing, and advertising; by advertising which failed to disclose the names of animals producing the fur in certain products or that certain furs were artificially colored, used the name of one animal to describe the fur of another, and represented prices as reduced from regular prices which were in fact fictitious, or as “below wholesale cost,’”’ or misrepresented percentage savings; and by failing to maintain adequate records disclosing the facts on which such pricing claims were based. Mr. Alin D. Edelson for the Commission.

Galef & Jacobs, of New York, N.Y., for respondents. Initrat Decision By WiuiiamM L. Pacx, Hearing Examiner The complaint in this matter, issued on January 31, 1958, charged the respondents named therein, E. L. Brownhill, Inc., a corporation, and Lewis Rosenberg, an individual, with violating the Fur Products Labeling Act and the rules and regulations promulgated thereunder, and the Federal Trade Commission Act. Since the issuance of the complaint, the individual respondent, Lewis Rosenberg, has died, and an agreement has now been entered into between the corporate respondent E. L. Brownhill, Inc., and counsel supporting the complaint which provides, among other things, that respondent admits all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and agreement; that the inclusion of findings of fact and conclusions of law in the decision disposing of this matter is waived, together with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in disposition of the proceeding, such order to have the same force and effect as if entered after a full hearing, respondent specifically waiving any and all rights to challenge or contest the validity of such order; that the order may be altered, modified, or set aside in the manner provided for other orders of the Commission; that the complaint may be used in con- E. L. BROWNHILL, INC., ET AL. 18538 1852 Order struing the terms of the order; and that the agreement is for settlement purposes only and does not constitute an admission by respondent that it has violated the law as alleged in the complaint. The hearing examiner having considered the agreement and proposed order and being of the opinion that they provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and the following order issued:

1. Respondent E. L. Brownhill, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of North Carolina with its office and principal place of business located at 108 North Elm Street, Greensboro, N.C. 2. The Federal Trade Commission has jurisdiction of the subject. matter of this proceeding and of the respondent, and the proceeding is in the public interest. , ORDER It ts ordered, That respondent E. L. Brownhill, Inc., © corporation, and its officers, and respondent’s agents, representatives, and employees, directly or through any corporate or other device, in connection with the introduction into commerce, or the sale, advertising, offering for sale, transportation, or distribution of fur products, in commerce, or in connection with the sale, advertising, offermg 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 in 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. Representing on labels attached to fur products, or in any other manner, that certain amounts are the regular and usual prices of fur products when such amounts are in excess of the prices at which such products are usually and customarily sold by respondent in the recent regular course of its business.

2. Failing to affix 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 by the rules and regulations. (b) That the fur product contains or is composed of used fur, when such is the fact.

(c) That the fur product contains or is composed of bleached, dyed, or otherwise artificially colored fur, when such is the fact. (d) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, when such is the fact. Order Bt FV.C.

(e) The name, or other identification issued and registered by 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 it in commerce.

(f) The name of the country of origin of any imported furs used in the fur product.

3. Setting forth on labels affixed to fur products the term “‘blended”’ as part of the information required under section 4(2) of the Fur Products Labeling Act and the rules and regulations thereunder to describe the pointing, bleaching, dyeing, or tip-dyeing of furs. B. 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 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 the fact.

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

2. Setting forth on invoices pertaining to fur products the term “blended” as part. of the information required under section 5(b) of the Fur Products Labeling Act and the rules and regulations thereunder to describe the pointing, bleaching, dyeing, or tip-dyeing of furs. 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 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 Name 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 the fact. 2. Contains the name of an animal or animals other than the name or names of the animal or animals that produced the fur. 3. Contains the term “blended” as part of the information required under section 5(a) of the Fur Products Labeling Act and the rules E. L. BROWNHILL, INC., ET AL. 1855 1852 Decision and regulations thereunder to describe the pointing, bleaching, dyeing, or tip-dyeing of furs.

4. Represents directly or by implication that respondent’s regular price of any fur product is any amount which is in excess of the price at which respondent has regularly or customarily sold such products in the recent regular course of its business. 5. Represents directly or by implication that the prices of fur products are “below wholesale cost,’”’ or words of similar import, when such is not the fact.

6. Represents directly or by implication through percentage savings claims that the regular or usual retail prices charged by respondent for fur products in the recent regular course of its business were reduced in direct proportion to the amount of savings stated, when contrary to the fact.

D. Makes claims and representations in advertisements respecting comparative prices, percentage savings claims or claims that. prices are below wholesale cost or claims that prices are reduced from regular or usual prices, unless there are maintained by respondent full and adequate records disclosing the facts upon which such claims and representations are based.

It ws further ordered, That the complaint be, and it hereby is, dismissed as to respondent Lewis Rosenberg, deceased. 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 June 1958, become the decision of the Commission; and, accordingly: It is ordered, That the respondent E. L. Brownhill, Inc., a corporation, shall within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist.

Decision 54 F.T.C.