Top Form Mills, Inc.

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

IN THE MATTER OF TOP FORM MILLS, INC., ET AL.

C01\' SENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COM:vISSlON ACT Docket 71 BG. C01n7Jlaint, May 1.58 Decit-i()n Dec. , 1958 Consent order requiring manufacturers of \voTIH'n s slips and other wearing apparel in New York City to cease setting out excessive and fictitious amounts as "Value " and " Special purchase " in advertising mats and other promotional material supplied to retailers and dealers, on tickets attached to the garments prior to sale, and in advertisements in Vogue, Harpers Bazaar, and Mademoiselle magazines. M,' . MOTton Nesmith and Mr. John J. Mathias for the Commission.

M,.. David SIc/ai,' of OstTOW , Goldman SklaiTe of New York , for respondents, INITIAL DECISION BY LOREX H. LAUGHLIN, HEARING EXAMINER The Federal Trade Commission (sometimes also hereinafter referred to as the Commission) issued its coti1p1aint herein charging the above-named respondents with having violated the provisions of the Federal Trade Commission Act in certain particulars. In accordance with the stipulation of the parties the title of this proceeding has been amended by deleting therefrom the following language: "also known as SEY"IOUR TOPOLOFF.

On October 7, 1958 , there was submitted to the undersigned 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 respondents signatory thereto, their counsel, and counsel supporting the complaint, under cbte of September 30 , 1958 , subject to the approval of the Bureau of Litigation of the Commission, \which had subsequently duly approved the same. On due consideration of such agreement, the hearing examiner finds that said agreement, both in form and in content, is in accord with 1;3.25 of the Commission s Rules of Practice for Adjudicative Proceedings, and that by said agreement the parties have specifically agreed to the following matters: 1. Respondent Top Form Mills, Inc., is a corporation organized Decision 55 F.

existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 38 East 30th Street, New York, N. Y. I(respondents Emanuel Kitrosser, also known as Manny Kay, and Seymour L. Topping, are offcers of said corporation. These individual respondents formulate, direct and control the policies acts and practices of the corporate respondent. Their address is the same as that of the corporate respondent. 2. Pursuant to the provisions of the Federal Trade Commission Act the Federal Trade Commission, on 1\1ay 29 , 1958 , issued its complaint in this proceeding against respondents, and a true copy \vas thereafter duly served on respondents. 3. Respondents admit all the jurisdictional facts alleged in the complaint and agree that the record may be taken as if findings of jurisdictional facts had been duly made in accordance with such allegations.

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

Seymour L. Topping has been referred to in the complaint as "also knmvn as Seymour Topoloff. " Said statement has been omiUed from this agreement and the order contained herein for reasons stated in a letter from David Sklaire, attorney for respondents, dated September 3, 1958, Said letter is attached hereto and incorporated by reference into this agreement. 5. Respondents waive:

(a) Any furthcl' procedural steps before the hearing e;- aml1cr and the Commission;

(b) The making of fmdings of fact or conclusions of la,,,; and (c) All of the rights the)' may have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement.

G. The record on which the initial decision and the decision of the Commission shall be based shall consist solei)' of the complaint and this agreement.

7. This agreement shall not become a part of the ufrciaJ record unless and until it becomes a part of the decision of the Commission.

8. This agreement is for settlement purposes only and does not constiute an admission by respondents that they have violated the la\v as alleged in the complaint.

9, The following order to cease and desist ma)' be entered in this proceeding by the Commission without further notice to TOP FORM MILLS, INC., ET AI,. 809 807 Order respondents. 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 for other orders. The complaint may be used in construing the terms of the order. Upon due consideration of the complaint filed herein and the said "Agreement Containing Consent Order to Cease and Desist said agreement is hereby approved and accepted and is ordererl filer! if and when said agreement shall have become a part of the Commission s decision. The hearing examiner finds from the complaint and the said agreement that the Commission has ju risdiction of the subject matter of this proceeding and of the persons of each of the respondents herein; that the complaint states kgal causes for complaint under the Federal Trade Commis sion Act against each of the respondents, both generally and in each of the particulars alleged therein; that this proceeding is in the public interest; that the following ordcr as proposed in said agreement is appropriate for the just eJjsposition of all of the issues in this proceeding as to all of the paries hereto; and that said order therefore should be, and hereby entered as follows :, ORDER It is ordered That respondents, Top Form Mills, Iuc. , a cor poration, and its offcers, and Emanuel Kjirosser, also known as lVlanny Kay, and Seymour L. Topping, inclivic1ually and as offcers of saiel corporate respondent, and said respondents' agents, representatives and employees, directly or t.through an? corporate or other devke, in connection with the offering for sale, sale 01' distribution of women s \vearing apparel and other merchandise in commerce, as "commerce " is defined in the Federal Trade Commission Act, do forthwith cease and desist from: J. Hepresenting in any manner, directly or b \' implication: a. That a certain amount is the regular and usual retaij price of merchandise \\7hen such amount is in excess of the price at which such merchandise is usually and regularly sold at retail; b. That the value of merchandise is any amount \which is in fact, in excess of the actual market value of saiel merchandise. 2. Placing- in the hands of retailers and c!eaJe1' , a means and instrumentality by and through which they may deceive and misJeac1 the purchasing public, concerning merchandise in the respects set out in paragraph 1 above.

Decisjon G5 F.

DECISION OF THE COML\lission A1\D 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 2d day of December 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.

:;.

AMICALE YARNS, INC., ET AI,. 811 Decision