Paul C. Vaughan

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IN THE :\LATTER OF PAUL C. VAt:GHAN 101' AL.

TRADING AS VAUGHAN-Well CONSENT ORDER, ETC-. IT\T REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMlSSJON A::O Tile FUR J' RODUCTS LABELING ACTS Docket. ('Orl3. Complaint, Mal' , 21i, 1958-J)cclsioH, July, 1958 Consent. order requiring a furrier in Birmingham, Ala., to cease violating the Fur Prcdncts LalH'Jing' Act by labeling certain fur products ,..ith fictitious prices represented thus as the usual retail prices; by failing to set out on labels the term "secondhand used fur" where required; by failing in other" respects to conform to the labeling' and invoicing- requirements of the Act; by aclvcrtisir.g in newspapers which failed to disclose thp names of animals producing the fur in fur products or that certain furs were composed of cheap or waste fur, and represented prices falsely .as "\vnoJeaJe and rcdmer1; and by failing to maintain adequate records as a basis for sllch pricing clain!s.

Mr. Juhn T. Walke)' for the Commission. Respondents, for themselves.

I:-ITIAL DECISION BY J. EARL COX , HEARI~G EXAMI:-ER The complaint charges respondents "vit.h misbranding and falsely and deceptively invoieing and advertising certain of their fur products, and with failing to maintain full and adequate rccords with resped thereto, in violation of the Fur Products Labeling Act and the Rules and Hegulalions promulgated therelimIer, and of the Federal Trade Commission Act. After the issuance of the complaint, respondents and counsel supporting the complaint entered into an agreement containing consent order to cease and desist, which was approved by the clirectorand an assistant director of the Commission s Bureau of Litigation, and thereafter transmitted to the hearing examiner for consideration.

The agreement identifies Respondents Paul C. Vaughan and Ferd F. vVeil as individuals and copartners trading as Vaughan- Weil, with their offce and principal place of business located at 1816 Third Avenue North. Birmingham, Ala. The agreement provides, among other thing's, that the respondents admit all the jurisdictional facts aJ1eged in the complaint and agree that thc record may be taken as if findings of jurisdictional facts had been duly made in accordance with such VAUGHA WEIL 129 128 Decision allegations; that the record on which the initial decision and the decision of the Commission shall he based shall consist solely of the complaint and this agreement; that the agreement shall not become a part oI the offcial record unless and until it becomes a part oI the decision oI 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 alleged in the complaint; and that the OJ-del' set forth in the agreement and hereinafter included in this decision shall have thc same Iorce and effect as if entered after a full hearing.

Respondents waive any Jurther 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 vvith the agreement. The order agreed upon Jully disposes oI all the issues raised in the complaint, and adequately prohihits the acts and practices charged therein as being in violation of the Fur Products Labeling Act and the Hules and Regulations promulgated thereunder, and oI the Federal Trade Commission Act. Accordingly, the hearing examiner finds this proceeding to be in the public interest, and accepts the lgreement containing consent order to cease and desist as part 01' the record upon which this decision is based. Therefore It iH 01'de1. That respondents Paul C. Vaughan and Ferd F. Weil, individually and as copartners, trading as -Vaughan-Weil or any other name, and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction into commerce, or t.he sale advertising, or offering for sale, in commerce, or the transportation or distribution in commerce, of fur pr()duct 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 comme:rce 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. Falsely or deceptively labeling or otherwise identifying any Decision 55 F.

such products as to the regular prices thereof by any representa- Lion that the regular or usual price of such product is any amount which is in excess of the price at which respondents have usually and customarily sold such products in the recent regular course of their business.

2. 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 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 composcd in whole or in substantial part of paws, tails, bellies, or waste fur, when such is the fact;

(e) The name, or other identification issued and registered by the Commission, of one or more persons ,.vho manufactured such fur product for introduction into commerce, introduced it into commerce, sold it in commerce, advertised or offered it for sale or transported or distributed it in commerce; (f) The name of the country of origin of any imported furs used in the fur product;

(g) That the fur product contains or is composed of secondhand used fur, when such is the fact;

(h) The item number or mark assigned to a fur product. 3. Setting forth on lahels attached to fur products: (a) Information required under 9,1 (2) of the Fur Products Labeling Act and the Rules and Hegulations promulgated thereunder mingled with nonrequired information; (b) Information required under 94 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in handvrriting.

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;

VAUGHAK-WEIL 131 128 Decision (h) That the fur product contains or is composed of used fur when such is the fact;

(c) That thc 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 suhstantial part of paws, tails, bel1ics 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 fur contained in a fur product;

(g) The item number or mark assigned to a fur product. 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 c: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 is composed in whole or in substantial part of paws, tails, bellies or waste fur, when such is the fact.

2. Hepresents, directly or by implication: (a) That thc prices of fur products are at wholesale, when such is not the fact;

(b) That the regular or usual price of any fur product any amount which is in excess of the prices at \\'hieh respondents have usually and customarily sold such products in the recent regular course of business.

D. JVIaking price claims or representations in advertisements respecting wholesale prices, comparative prices or reduced prices unless there are maintained by respondents adequate records disclosing the facts upon which such claims or representations are based.

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 132 FEDERAL TRADE COMMISSIOK DECISIONS Decision 55 F.

15th day of July 1958, hecomc the decision of the Commission; and, accordingly:

It is oTdm' That respondents Paul C. Vaughan and Ferd F. Weil, individually and as copartners trading as Vaughan-Weil shall, within sixty (60) days after service upon them of this order, fiJe 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.

ATLANTIC PRODUCTS 133 Decision