Fleisher' S, Inc.

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

IN THE l\IATTER OF FLEISHER' S, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket 71:20. Complaint, Ap1' 1.9;jS- Decisioli. , Aug. , 1958 Consent order requiring a furrier in Hagerstown, Md., to cease violating the Fur Products Labeling Act by advertising in newspapers which failed to reveal the proper names of fur-producing animals or when fur prodlI"C~ were made of cheap or waste fur; by failing to keep proper records supporting price and savings claims; and by failing in other respects to comply with the invoicing and advertising requirements of the Act. Thomas A. ZiebcL1'th Esq., for the Commission. INITIAL DECISION BY JAMES A. PURCELL, HEARING EXAMINER The complaint in this proceeding, issued April 15, 1958, charges the respondents above-named with violation of the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act and the Rules and Regulations promulgated under the lastnamed Act, in connection with the introduction into commerce or the sale, advertising, or offering for sale in commerce, or the transportation or distribution, shipping and receiving in comn1erce of fur and fur products, as the designations "commerce fur " and "fur product" are defined in the Fur Products Labeling Act.

After the issuance of said complaint respondents, on June 20 1958, 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 \-vas 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 mak- , .

Decision 55 F.

ing of findings of fact or conclusions of law by the hearing examiner or the Commission, the 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 for other orders of the Commission.

Said agreement recites that Respondent Fleisher, Inc. , is a corporation organized, existing, and doing business under and by virtue, of the laws of the State of Maryland, with its office and principal place of business located at 20 Public Square, Hagerstown, :Md.

Individual Respondents lVlax Fleisher, l\lartin Fleisher, and Ralph Goldn1an are president, vice president, and secretary, respectively, of the corporate respondent. Their address is the same as 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, without further notice to respondents, 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 the respondents named herein, and that this proceeding is in the interest of the public wherefore he issues the following order:

FLEISHER' , INC., ET AL. 231 229 Order ORDER It is o1'dered That respondents Fleisher, Inc., a corporation and its officers, and l\-1ax Fleisher, Ivlartin Fleisher, and Ralph Goldman, 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 into eomrnerce, or the sale, advertising, or offering for sale in commerce, or the transportation or distribution in commerce, of fur products, 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 Labeling Act do forthwith cease and desist from:

A. 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 con1posed 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, "vhen 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 nan1e 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. B. 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 cont~ined in the fur product as set forth in the Decision 55 F.

Fur Products Name Guide and as prescribed under the Rules and Regulations;

(b) That the fur product contains or is 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. Fails to set out the information required under Section 5 (a) of the Fur Products Labeling Act and the Rules and Regulations thereunder in type of equal size and conspicuousness and in close proximity with each other.

C. Making pricing claims or representations in advertisements respecting reduced prices, conlparative prices or percentage savings claims unless respondents maintain full and 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 22d day of August 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.

A & L SEAMON 233 Decision