Mawson Demany Forbes, Inc., et al.

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

IN THE MATTER OF MAWSON DeMANY FORBES , INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSJON AND Tile FUR PRODUCTS LABELIJ\' G ACTS Duch' t 726. Complaint, Oct. 1958- Decisioj, Peb. , 1959 Consent order requiring furriers in Philadelphia, Pa., to cease violating the Fur Products Laueling Act by deceptive pricing and savings claims fot ful' products, including false representations in advertising in newspapers that prices were "Below original cost" and "Below wholesale; that purchasers could " Save one third and more," could save money because of tremendous buying power" and "a half-million dollars ' worth of '" * inventory '" * ;, being liquidated" ; Dnd that fur products offered were from thc stock of a liquidating business. Mr. John T. Walke,. for the Commission. MT. Isado1' S. Wachs of Philadelphia Fa. , for respondents. INITIAL DECISION BY WILLIAM L. PACK, HEARING EXAMINER The complaint in this matter charges the respondents with the violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder and the Federal Trade Commission Act. An agreement has now been' entered into by respondents and counsel supporting the complaint which provides among other things, that respondents admit all of the jurisdictional allegations in the complaint; that the record on which the initial decision and the decision of the Commission shah be based shah consist solely of the complaint and agreement; that the inclusion of findings of fact and conclusions of law in the decision disposing of this matter is waived, together with any further procedural steps before the hearing examiner and the Commissian; that the order hereinafter set forth may be entered in disposition of the proceeding, such Older to have the same force and effect as if entered after a full hearing, respondents spec ifjcaHy waiving any and all rights to chaHenge or contest the validity of such order; that the order may be altered, modified or set aside in the manner provided for other orders of the Commission; that the complaint may be used in construing the terms of the order; and that the agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as a1Jeged in the complaint.

1106 FEDERAL TRADE COMMISSIO DECISIONS Order 55 F.

The hearing examiner having considered the agreement and proposed order and being of the opinion that they provide an adequate basis for appropriate disposition of the proceeding, the agreement is hereby accepted, the following jurisdictional findings made, and the following order issued: 1. Respondent Mawson DeMany Forbes, Inc., is a Lorporation organized, existing and doing business under the laws of the Commonwealth of Pennsylvania. Individual respondents 1V101'1'i8 B. Marks, Barrie A. iWarks, and David Marks are president and treasurer, vice president and secretary, and assistant treasurer respectively, of said corporation. The offee and principal place of business of all of said respondents is located at 1133 Chestnut Street, Philadelphia, Fa.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is o1'dered That Mawson DeMany Forbes, Inc., a corporation, and its officers, and Morris B. Marks, Barrie A. Marks, and David Marks, individually and as offcers of said corporation, and respondents' representatives, agents and employees, directly or t.through any corporate or other device, in connection \with the introduction into commerce, or the sale, advertising, offering for sale, transportation or c1islribution in commerce, of fur products or in connection with the sale, advertising, offering for sale transportation, or distribution of fur products ,which are made in whole or in part of fur which has been shipped and received in commerce, as "colli1erce fur" and "fur product" are defined in the Fur Products Labeling Act, do forthwith cease ami desist from:

1. Falsely or deceptively advertising fur products through the Lise of any advertisement, representation, public: announcement or notice vvhich is intended to aid, promote or assist, directly or indirectly, in the sale, or offering for saJe of fur products, and which:

A. Represents, directly or by implication, that fur products are offered for sale at prices which arc below the cost to respondents, when such is not the fact.

B, Represents, directly or by implication, that fur products are oflercd for sale at prices which are below vvholcsale prices when such is not the fact.

MAWSON DeMANY FORBES , INC., ET AL. 1107 1105 Decision C. Represents, directly or by implication, that price concessions of fur products have been obtained due to buying power or for any other reason, when such is not the fact. D. Represents, directly or by implication, that respondents inventory of fur products advertised and offered for sale is in excess of the actual inventory.

E. Represents, directly or by implication, through percentage savings claims, that the regular or usual retail prices charged by respondents for fur products in the recent regular course of business ,were reduced in direct proportion to the amount of savings stated, when contrary to fact.

F. Represents, directly or by implication, that any such products are the stock of a business in a state of liquidation, when contrary to fact.

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 shah, on the 3d day of February 1959 , become the decision of the Commission; and, accordingly:

It is ordered That respondents herein shah, within sixty (60) days after service upon them of this order, file with the Commission a report in v..writing s$ing forth in detail the manner and form in which they have complied "with the order to ceas and desist.

Decision 55 F.