Frank Gross

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

IN THE :vA TTER OF FRANK GHOSS TRADING AS FRANK GHOSS Fulls CONSENT ORDER. ETC., l:: REGARD TO THE ALLEGED VlOLATION OF TBE FEDERAL TRADE COMMISSIOK A D THE Fl:n PRODL:CTS LABELING ACTS Doeket 6921. COIJ?Jluint, Oct. ::4, 19S'7- Decisio'"l, July, 1.958 Consent order requiring a funier in Harrisburg, Pa., to cease violating the Fur Products Labeling Act by affxing to fur products labels containing fictitious prices and then'by misrepresenting- the regular retail selling prices; by failing to conform to the invoicing- rC'Iuircments of the Act; by newspaper advertisements which represented prices as red.uced from regular prices. .which were in fact fictitious, and used comparative prices and percentage savings claims not based on the regular retail prices; and by failing to maintain adequate records as a basis for such pricing claims. Nit. Chu,.Zes IV. O' Connell for the Commission /". Joeleis F. Adler of lIarrishurg, Pa. , for respondent. INITIAL DECISION BY LORE~ H. LAUGHLIN , HEARING EXAMINER The Federal Trade Commission (sometimes also hereinafter referred to as the Commission) issued its complaint herein charging the above-named respondent, Frank Gross, an individual trading as Frank Gross Furs, \'with having violated the provisions of the Federal Trade Commission Act and of the Fur Products Labeling Act and the Rules and j\egulations promulgated thereunder, in certain particulars. Respondents were rluly served wi th process.

On May 13 , 1958, there was submitted to the undenigned hearing examiner of the Commission for his consideration and approval an "Agreement Containing Consent Order to Cease and Desist " which had been entered into by and between the respondent and attorneys for both parties, under date of IVlay 8 1958, subject to the approval of the Bureau of Litigation of the Commission. Such agreement had been thereafter duly approved by that Bureau.

On due consideration of the said "Agreement Containing Consent Order to Cease and Desist " the hearing examiner finds that. said agreement, both in form and in cont.ent, is in accord with 25 of the Commission s Rules of Practice for Adjudicative Proceedings and that by said agreement the parties have specifically agreed that:

FRANK GROSS FURS 109 108 Deci ion 1. Respondent, Frank Gross, is an individual trading as Frank Gross Furs, with his place of business located at 23 South Fourth Street, in the city of Harrishurg, State of Pa. 2. Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, the Federal Trade Commission, on October 24 , 1957, issued its complaint in this proceeding- against respondent, and a true copy was thereafter duly served on respondent.

3. Respondent .admits a1l the jurisdictional facts alleged in the complaint and agrees that the record may be taken as finding-s of jurisdictional facts had been duly made in accordance with sllch allegations.

4. This agreement disposes of a1l of this proceeding as to all parties.

5. Respondent vvaives:

(a) Any further procedural steps before the hearing examiner and the Commission;

(b) The making of findings of fad or conclusions of law; and (c) A1I of the rights he may have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement.

6. The record on \which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and this agreement.

7. This agreement shall not become a part of the offcial record unless and until it l",comes a part of the decision of the Commission. 8. This agreement is for settlement purposes only and docs not constitute an admission by respondent that he has violated the law as alleged in the complaint.

9. The following order to cease and desist may be entered in this proceeding by the Commission without further notice to respondent. When so entered it shall have the same force and effect as if entered after a full hearing. It may be altered, modified or set aside in the manner provided fur uther orders. The cumplaint may be used in construing the terms of the order. It is noted that respondent' s address, as given in the identifyingparagraph of the agreement, appears as 23 South Fourth Street Harrisburg, Pa., whereas respondent, when signing the agreement set forth his address, in his own handwriting, subsequent to the order, as 17 North Second Street, Harrisburg, Pa. The hearingexaminer believes the lalter address to be correct. Accordingly, after due consideration of the complaint filed herein and the 110 FEDERA r. TRADE COMMISSION DECISIO!\S Order 55 F.

said "Agreement Containing Consent Order to Cease and Desist the latter, although as submitted it contains this slight defect, is hereby approved, accepted and ordered filed, if and when it shall have become a part of the Commission s decision. The hearing examiner finds from the complaint and the said "Agreement Containing" Consent Order to Cease and Desist" that the Commission has jurisdiction of the subject matter of this proceeding and of the person of the respondent herein; that the complaint states a legal cause for complaint under the Federal Trade Commission Act and the Fur Products Labeling Act and the Hules and Regulations promulgated thereunder, both generally and in each of the particulars alleged therein; that this proceeding is in the interest of the public; that the following order as proposed in said agrcement is appropriate for the just disposition of all of the issues in this proceeding, and, therefore, it should be, and hereby is, entered as follows:

ORDJ-R It is on/ej" That Frank Gross, an individual trading as Frank Gross Furs, 01' under any other trade name, and respondent' s representatives, agents 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, offering for sale tnmsportat.ion, or distribution of fur products in commerce, 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 in commerce as "commerce, fur " and "fur product" are defmed in the Fur Products Laheling Act, do forthwith cease an,l desist from:

A. Misbranding fur products by:

1. Representing on labcls affxed to fur products that certain ,"vhenamounts are the regular and usual prices of fur products such amounts are in excess of the prices at which respondent usually and customarUy sold such products in the recent regula!" course of his business.

B. Falsely or deceptively invoicing fur products by: 1. Fading to furnish invoices to purchasers of fur products shov. ing:

(a) The name or names of the animal or animals producing FRANK GROSS r' URS 111 J08 Decision 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 other\vise artificially colored fur, \vhen such is the fact; (d) That the fur product is composed in whole or in substantial part of the pa\vs, tails, bellies, or vvaste 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 a fur product.

C. Falsely or deceptively advertising fur products through the use of any advertisement, l'cpl'escntation, 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. Heprcsents, directly or by implication that the regular or usual price of any fur product is any amount \'\'which is in excess of the price at which the respondent has regularly and customarily sold such product in the recent regular course of his business.

2. Makes use of comparative prices and percentage savings claims in ac1verti:"ements, unless such compared prices or percentage savings ciaims are based upon the current market value of the fur product or llllESS a bona fide price at a designated time is stated.

D. Making claims and representations in advertisements respecting comparative prices, percentage savings claims, or claims that prices are reduced from regular or usual prices, unlcs8 respondent maintains full and adequate records disclosing the facts upon \\'hich such daims and representations are based. DECISION OF THE COM MISSlGI'.; AI\D ORDER TO FILE REPORT OF COMPLIA~CE Pursuant to Section 3. 21 of the Commission s Rules of Practice, the initial decision of the bearing examiner shall, on the 12th day of July 1958, become the decision of the Commission; and, accordingly:

It is ordered That respondent Frank Gross, an individual 112 FEDERAL TRADE COM"IISSIOI\ DECISIONS Decision 55 F.

trad;ng as Frank Gross Furs, 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 whkh hc has complied with the order to cease and desist. , .

THE F'HY KING CORPORATION ET AL. 113 Decision