Atlas Rose Farms, Inc.

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IN THE MATTER OF ATLAS ROSE FARMS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VJOLATlON OF THE FEDERAL TRADE COMMISSIOK ACT Docket 6896. Compa..tnt, Sept. 1f57-Decisioi, Dec, , 1958 Consent order requiring Brooklyn, N. , sellers of rose bushes which had been used in the commercial greenhouse production of cut flowers under forced growing conditions, to cease representing falsely in newspaper advertising and in statements on pac1mges that their roses were strong first-grade plants, certified as vigorous and tested for proven merit by a Stale agency, and packed by onc of America s leading nurseries; to cease representing falsely, throug1l use of the word "Farms" in their corporate name that they grew the roses they sold; and to cease representing falsely, by labels attached to the individual rose bushes and packages containing them, that each rose was of a particular variety and that the bloom would be of the color specified.

lVh'. Charles W. O' Connell and Mr. John W. B,oolcfield, Jr. for the Commission.

Samuel Bonom (lnd Philip Wolfson of Brooklyn, N. , by MT. Philip Wolfson for respondents.

INITIAL DECISION BY ABNER E . LIPSC02\B, HEABING EXAMINER The complaint herein was issued on September 27, 1957, charging respondents vdth making false representations, in connection with the sale and distribution of rose bushes, that such roses were strong, first-grade plants; that each rose bush had been inspected by a State agency and certified as vigorous and tested for proven merit; and that said rose bushes had been packed by one of America s leading nurseries. Respondents were further charged with failing to reveal that the rose bushes s01d and distributed by them had been used for two to three years in the commercial production of cut flo\vers in greenhouses under forced growing conditions, which material fact was not disclosed in respondents' newspaper advertising, nor in printed statements on the packages in which said rose bushes were packed for sale by respondents, Respondents were also charged with falsely representing, through the use of the word "Farms " as part of the respondent corporation s name, that they maintain a farn1 on which they grow the rose bushes offered for sale and s01d by them; and, further, that they have misrepresented said rose bushes by Decision 55 F.

placing on the packag-es thereof labels bearing flower illustrations and text which were not indicativc of the variety or color of thc bloom which would be produced by such bushcs. The complaint further alleged that the use by respondents of the aforesaid representations, and their failure to disclose material facts in connection with their sale and distribution of rose bushes in commerce, constitute unfair and deceptive acts and practices and unfair methods of competition, in violation of the Federal Trade Commission Act.

Thereafter, on October 9, 1958, respondents Atlas Rose Farms Inc., Lee Atlas and Elias Abolafia, individual1ly and as offcers of said corporation, their counsel, 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, and thereafter submitted to the hearing examiner for consideration.

The agreement identifies Respondent Atlas Rose Farms, Inc., as a New York corporation, with its offcc and principal place of business located at 8930 Avenue D Street, Brooklyn, N. Y., and individual respondents Lee Atlas, Elias Abolafia, and Robert Abolafia as president, vice president and secretary-treasurcr respectively, of said corporate respondent, and having the same address as the corporate respondent. A1l parties signatory to the agreement, however, agreed that, inasmuch as respondent Robert Abolafia was only a nominal offcer of the respondent corporation has never been actually active in the dealings thereof and has no voice in its management, the complaint herein should be dismissed as to him.

Respondents admit a1l 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.

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. A1l parties agree that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and the agreement; that the order to cease and desist, as contained in the agreement, when it shall have become a part of the ATLAS ROSE FARMS, INC., ET AI" 883 881 Order 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 aside in thc manner provided for other orders; that the complaint herein may be used in construing the terms of said rder; 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 the complaint; and finds that this proceeding is in the public interest. Therefore It is ordel"ed That respondent Atlas Rose Farms, Inc. , a corporation, and its offcers, and respondents Lee Atlas and Elias Abolafia, individually and as offcers of said corporation, and respondents' representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution in commerce, as "commerce is defined in the Federal Trade Commission Act, of rose bushes which have been used in the commercial greenhouse production of cut flowers, do forthwith cease and desist from: 1. Representing, directly or by implication, that such rose bushes are:

(a) Strong, vigorous or first-grade plants; (b) Individually inspected or tested; or (c) Packed by a nursery;

2. Misrepresenting the variety or color of the bloom; 3. Failing to tag or label such rose bushes so as to clearly and conspicuously disclosc that such rose bushes had been prcviously used in the commercial greenhouse production of cut flowers, and to clearly and conspicuously set out in advertising and sales promotional matter relating to such rose bushes that they had been so used;

4. Failing to clearly and conspicuously reveal in the same manner and in close conjunction with the disclosure made pursuant to 3. that such rose bushes when planted outdoors will not thrive and blossom or that they will thrive and blossom only if Decision 55 F.

given special treatment and attention, during and after their replanting, if such is the fact.

It is further ordered That respondent Atlas Rose Farms, Inc. a corporation, and its offcers, and respondents Lee Atlas and Elias Abolafia, individually and as ofticers of said corporation and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of rose bushes or other nursery products, in commerce, as "commerce " is defined in the Federal Trade Commission Act, do forthwith cease and desist from using, in its corporate name, or in any other manner, the word "farm " or any word or words of like import and meaning, in connection with such products that have not been grown by them.

It is fw, ther onlerul That the complaint herein be dismissed as to respondent Robert Abo1afia.

DECISION OF Tile 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 18th day of December 1958, become the decision of the Commission; and accordingly:

It is onlered That respondents Atlas Rose Farms, Ine" a corporation, and Lee Atlas and Elias Abolafta, individually and as offcers of said corporation, shall, within sixty (60) days after service upon them of thi.s 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. KEYSTONE MANUFACTURING COMPANY, INC., ET AL. 885 Complaint