Helen L. Siegel

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I N THE :\1 A TTER OF HELEN L. SIEGEL ET AL. TRADING AS SIEGEL' CONSENT ORDER, ETC., IN RF.GARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PHQDUCTS LAnELING ACTS Docket 7071. Complaint, Feb. 1.58-Dectsion, Aug. 1958 Comment order n qui7'jJlg furriers in Sun Antonio, Tex. , to cease violating the Fur Prodllcts L3beling Act by falsely identifying on lahels the fur contained in certain products, by affxing Jabels containing fictitious prices and falsely representing excessive amounts as the regular retail prices of fur products; by failing in other respects to conform with the Jabclin g and invoicing requirements of the Act; hy advertising in newspapers which failed to disclose tJle nam('s of animals producing certain furs, or that certain products were artificially colored or were composed of cheap or waste fur, and which represented prices as reduced from regular prices which ,were in fact fictitious; and by failing to maintain adequate records as a basis for such pricing daims.

Mr. John T. Wulke1" for the Commission.

Respondents, for themselves.

INITIAL DECISION BY ABKER K LIPSCOMB HEARING EXAMINER The complaint herein was issued on February 21 , 1958, charging Respondents with violation of the Federal Trade Commission Act and the Fur Products Labeling Act by misbranding, and falsely and deceptively invoicing and advertising, certain of their fur products.

Thereafter, on June 4 , 1958, Respondents and counsel supporting the complaint herein entered into an Agreement Containing Consent Order to Cease and Desist, which was approved by the director and an assistant director of the Commission s Bureau of Litigation, an(1 thereafter submitted to the hearing examiner for consideration.

The agreement identifies Respondents Helen L. Siegel and :JTorris L. Siegel, erroneoLlsly named in the complaint as :vorris E. Siegel, as individuals and copartners trading as Siegel's, with their offce and principal place of business located at 307 Alamo Plaza, San Antonio, Tex.

Respondents admit all the jurisdictional facts alleged in the complaint, and agree that the record may be taken as jf findings of jurisdictional facts had been duly made in accordance with such allegations.

HELEN L. SIEGEL ET AL. TRADING AS SIEGEL'S 171 170 Order Respondents waive any further procedure before the hearing examiner and the Commission; the making of findings of fact and 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. All parties agree that the record on which the initial decision and the decision of the Commission shall he based shall consist solely of the complaint and the agreement; that the order to cease and desist, as con tained in the agreement, when it shall have become a part of the decision of the Commission, shall have the same force and effect as if entered after a full hearing, and may be altered, modified or set asidc in the manner provided for other orders; that the complaint herein may be used in construing the terms of said order; and that the agreement is for settement purposes only and does not constitute an admission by the Respondents that they have violated the law as alleged in the complaint. After consideration of the allegations of the complaint and the provisions of the agreement and the proposed order, the hearing examiner is of the opinion that such order constitutes a satisfactory disposition of this proceeding. Accordingly, in consonance with the terms of the aforesaid agreement, the hearing examiner accepts the Agreement Containing Consent Order to Cease and Desist; finds that the Commission has jurisdiction over the Respondents and over their acts and practices as alleged in thc complaint; and finds that this proceeding is in the public interest. Therefore It is order-el That respondents, Helcn L. Siegel and Morris L. Siegel, individually and as copartners, trading as Siegel's, or under any other name, and respondents' 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, 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 defined in the Fur Products Label ing Act, do forthwith cease and desist from: A. Misbranding fur products by:

1. Hepresentini( 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 Order 55 F.

sold by respondents in the recent regular course of their business. 2. Falsely or deceptively labeling or otherwise identifying any such product as to the name or names of the animal or animals that produced the fur from which such product was manufactured. 3. Failng 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 1\ ame 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 bleachcd 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, 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.

1. Setting forth on labels attached to fur products: (a) Information required under Section 1 (2) of the Fur Products Lahcling Act and the Rules and Regulations promulgated thereunder mingled \with nonrequired information; (b) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and regulations promulgated thereunder in handwriting.

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

(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 ?\ame Guide and as prescribed under the Rules and Regulations;

(b) That the fur product contains or is composed of used fur \-vhen such is the fact;

(c) That the fur product contains or is composed of bleached, dyed or otherwise artificially colored fur, when such is thc fact; (d) That the fur product is composed in whole or in suhstantial part of paws, tails, bellies or \\Taste fur, when such is the fact; HELEN L. SIEGEL ET AL. TRADI:-G AS SIEGEL'S 173 170 Dedsion (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;

(g) The item number or mark assigned to a fur product. 2. Setting forth on invoices pertaining to fur products information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Hules and Regulations promulgated thereunder in ahbreviated form.

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 Name Guide and as prescribed under the Rules and Regulations;

(b) That the fur products contain or arc composed of bleached dyed or otherwise artificially colored fur, when such is the fact; (c) 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. Represents directly or hy implication that respondents' regular price of any fur product is any amount which is in excess of the price at which respondents have regularly or customarily sold such products in the recent regular course of their business. D. 1\1aking claims and representations in advertisements respecting comparative prices, percentage savings claims, or claims that prices are reduced from regular or usual prices, unless there is maintained by respondents full and adequate records disclosing the facts upon which such claims and 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 Gth day of August 1958 , become the decision of the Commission; and, accordingly:

It is onlered That the above-named respondents shall, within sixty (GO) 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.

Dccision 55 F.

THE MATTER OF WHITE FRONT STORES, INC., ET AL.

CONSENT ORDER, 1itc., I REGARD TO 'THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSIO AKD THE FUR PRODUCTS LABELlI\G ACTS Docket 7(J(j3. Comp/uint, Peb. 1.158- Dcc' isioll, AU r;. , 1958 Consent order requiring a furrier in Los Angeles, Calif., to cease violating the Fur Products Labeling Act by failing to invoice as "secondhand used fur" where required, and to comply with other requirements of the Act with respect to invoitir g j Ly advertising in newspapers which represented prices of fur products falsely as "way below\v cost " which failed to specify the nature and extent of a lmrported "three-year guarantee" and the manner in which respondent would perform thereunder, and which falsely advertised " free Sloragc 40% to 60 l, off" regular price, and " pcctaculal' buyout values fJ' om Fellman Furs of L. A. ; and by failing to maintain adequate records on which the savings claims were lJasccl. Ml' .John.J. McNull?l supporting the complaint. Loeb und Lad) of Los Angeles, Calif. , for respondents. I?-ITIAL DECISION BY ,IOSEPH CALLAWAY , HEARING EXAMI?-ER The Federal Tra(1e Comm ssion issued its complaint against the above-named respondents on February 12, 1958, charging them with having violated the Fur Produds Laheling Act, the rules and regulations issued thereunder, and the Federal Trade Commission Act by falsely and deceptively advertising the prices of their fur products, faiiing to keep records to substantiate pricing claims and with irregularities in invoicing their fur products. After being served with the complaint respondents entered into an agreement, related May 29 , 1958, containing- a conseni order to cease and desist, disposing of all the issues in this proceeding without hearing, which agreement has been duly approved by the assistant director and the director of the Bureau of Litigation. Said agreement has been submitted to the undersilrned, heretofore duly designated to act as hearing examiner herein, for his consideration in accordance with Section 3. 25 of the Rules of Practice of the Commission.

Respondents, pursuant to the aforesaid agreement, have admitted all of the jurisdictional allegations of the complaint and agreed that the record may he taken as if findings of jurisdictional facts had been made duly in accordance with such allegations. Said agreement further provides that respondents waive WHITE FRONT STORES, INC., ET AL. 175 174 Order all further procedural steps before the hearing examiner or the Cummission, including the making of findings of fact or conclusions of law and the right to challenge or contcst the validity of the order to cease and desist entered in accordance with such agreement. It has also been agreed that the record herein shall consist solely of the complaint and said 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 said agreement is for settement purposes only and does not constitute an admission hy respondents that they have violated the law as alleged in the complaint, that said order to cease and desist shall have the same force and effect as if entered after full hearing and may be altered, modified, or set aside in the manner provided for other orders, and that the complaint may be used in construing the terms of the oreler. This proceeding having now come on for final consideration on the complaint and the aforesaid agreement containing the consent order, and it appearing- that the order and agreement cover all of the allegations of the complaint and provide for appropriate disposition of this proceeding, the agreement is hereby accepted and ordered fied upon this decision and said agreement becoming part of the Commission s decision pursuant to Sections 3. 21 and 25 of the Rules of Practice, and the hearing examiner accordingly makes thc following findings, for jurisdictional purposes, and order:

1. Respondent White Front Stures, Inc., is a corporation, organized, existing and doing business under and hy virtue of the laws of the State of California, with its principal offce and place of business located at 4611 Pacific Boulevard, Los Angeles, Calif. 2. Respondent Harry Blackman is an individual and is president of said respondent corporation. His offce and principal place of business is located at the same address as that of said corporate respondent.

3. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents hereinahove named. The complaint states a cause of action against said respondents under the Fur Products Labeling Act and the Federal Trade Commission Act, and this proceeding is in the interest of the public.

ORDEI( It is ordered That respondent White Front Stores, Inc., a cor- 176 FEDERAL TRADE COMMISSIOK DECISIONS Order 55 F.

poration, and its offcers, and respondent Harry Blackman, as an individual and as an offcer of said corporation; and respondents representatives, agents and employees, directly or through any corporate or other device, lease, assignment, or agreement, in connection "with the iniroduction into commerce, or the sale, advertisement, offer for sale, transportation, or distribution in commerce of any fur product, or in connection with the sale advertisement, offer for sale, transportation, Qr distribution of any fur product which is 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:

1. Falsely or deceptively invoicing fur products by: A. Failing to :Furnish invoices to purchasers of fur products showing- :

(1) 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 prescrihed under the Rules and Regulations;

(2) That the fur product contains or is composed of used fur when such is a fact;

(3) That the fur product contains or is composed of bleached, dyed or otherwise artificially colored fur, when such is a fact; (4) That the fur product is composed in whole or in substanial part of paws, tails, bellies, or waste fur, when such is a fact;

(5) The name and address of the person issuing such invoice; (6) The name of the country of origin of any imported fur contained in a fur product.

13. Setting forth on invoices pertaining to fur products the name of an animal other than the name or names of the animal or animals producing the fur or furs contained in such fur products.

C. Setting forth information required under Section 5 (b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form. D. Failing to set forth, on invoices pertaining to fur products the term "secondhand used fur" when required by the Rules and Regulations.

2. 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, di- WHITE FRONT STORES, INC., ET AI,. 177 174 Decision redly or indirectly, in the sale or offering for sale of fur products, and which:

A. Reprosents, directly or by implication, whero contrary to the facts, that such fur products:

(1) Are being offered for sale at or below respondents' wholesale costs.

(2) Are guaranteed, unless the nature and extent of such guarantee, and the manner in ,which the guarantor will perform thereunder, are clearly and conspicuously set forth. (3) May be stored for the purchaser at his option and without charge, by respondents;

(4) Were secured by respondents from a source that is in financial or other distress.

B. Hepresenis, through percentage savings claims or otherwise that thc rogular or usual retail prices charged by respondents for fur products of similar grade or quality in the recent regular course of business have been reduced in direct proportion to sllch savings claims.

3. Setting forth savings claims, or representations as to selling or offering to sell at or below cost, unless there are maintained by respondents full and adequate records disclosing the facts upon which such claims and representations are based, as required hy Rule 44 (e) of the Rules and Regulations. DECISION OF THE COM:VIISSION AND ORDER TO FILE REPORT OF COMPLIA:-CE Pursuant to Section 3.21 of the Commission s Rules of Practice, the init.iaJ decision of the hearing examiner shall, on the 7th day of August 1958 , become t.he decision of the Commission; and according-Iy:

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.

, , Decision 55 F.