Russeks Fifth Avenue, Inc.

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

IN THE l\A TTER OF RUSSEKS FIFTH AVENUE , INC.

CONSE T ORDER, ETC.. IN REGARD TO THE ALLEGED VIOLATlOI\ OF THE FEDERAL TRADE COMMISSION AND Tile FUR PRODUCTS LABELING ACTS Dockd 7':' 62. Complaint, Sept. 1958--Dccil'! , Ap1 , 195.9 Consent order requiring; a New York City department store to cease violating the Fil' Products Labeling Act by advertising in newspapers which failed to disclose the names of animals producing certain furs or the country of origin or the fact that some fur products contained artifcially colored fur, and which represented prices as reduced from " originall'etail" prices that were in fact fictitious; and by failing to designate the time at which said "original retail" prices were in effect, and to keep adequate records as a basis for said pricing claims.

ivh'. John T. Walke,. supportin!' the complaint. Mr. Herbe1. S. Keller of Weisman, Allan, Spett & Sheinberg, of New York, N. , for respondent.

INITIAL DECISION BY JOSEPH CALLAWAY, HEARING EXAM mer The Federal Trade Commission issued its complaint against the above-named respondent on September 19, 1958, charging it with having violated the Fur Products Labeling Act, the rules and regulations issued thereunder, and the Federal Trade Commission Ad by falsely and deceptively advertising certain of their fur products and failing to maintain full and adequate records disclosing the fads upon which they base their pricing claims and representations referred to in paragraph 4 of the complaint. After being served with the complaint respondent entered into an agreement, dated February 5, 1959, containing a consent 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 t.he Bureau of Litigatiarl. Said agreement has been submitted to the undersigned heretofore duly designated to act as hearing examiner herein for his consideration in accordance vvith Section 3. 25 of the Rules of Practice of the Commission.

Respondent, pursuant to the aforesaid agreement, has admitted all of the jnrisc1iclionaJ allegations of the complaint and agreed that the record may be taken as if findings of .i urisdictional facts had been duly made in accordance with such allegations. Said RUSSEKS FIFTH A VE1'UE , INC. 1681 IG80 Order agreement further provides that respondent waives all further procedural steps before the hearing examiner or the Commission including the making of findings of fact or conclusions of law and the right to challenge or contest 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 oftcial record unless and until it becomes a part or the decision of the Commission, that said agreement is for settlement purposes only and does not constitute an admission by respondent that it has 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 a 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 order.

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 flied upon this decision and said agreement becoming part of the Commission s decision pursuant to Sections 3.21 and 3.2ii of the Rules of Practice, and the hearing , for j urisdic-examiner accordingly makes the following findings tional purposes, and order:

1. Respondent Russeks Fifth Avenue, Inc. , is a corporation organized, 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 at Fifth Avenue and 3Gth Street, New York 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent hereinabove named. The complaint states a cause of action against said respondent under the Fur Products Labeling Act and the Federal Trade Commission Act, and this procecding is in the interest of the public.

ORDER It is ordered That Russeks Fifth A venue, Inc., a corporation and its offcers, and respondent' s representatives, agents and employees, directly or through any corporate or other device, in 1682 FEDERAL TRADE COMMISSlOr, DECISIONS Decision 55 F.

connection with the introduction into commerce, 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 Fnr Products Labeling Act, do forthwith cease and desist from:

1. Falsely or deceptively advertising fur products through the use of any advertisement, representation, public announcement 01' notice which is intended to aid, promote, or assist, directly or indirectly, in the sale, or offering for sale of fur products and which:

A. Fails to disclose:

(1) The name or names of the animal or animals producing the fur or furs contained in the fnr product, as set forth in the Fur Products Name Guide, and as prescribed under the Rules and Regulations;

(2) That the fur product contains or is composed of bleached, dyed or otherwise artificially colored fur, when such is the fact; (3) Thc name of the country of origin of any imported furs contained in a fur product.

B. Represents, directly or by implication, that the regular or usual price of any fur product is any amount which is in excess of the price at which respondent has usually and customarily sold such product in the recent regular course of business. C. Bases comparative prices on former or original prices that are not the prevailing prices at t.he time of the advertisement without stating the dates or times of the compared prices. 2. Making price claims and representations of the types referred to in paragraphs B ann C above unless respondent maintains fun and adequate records disclosing the facts upon which such claims or representations are based. 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 shan, on the 16th day of April 1959, become the decision of the Commission; and, accordingly;

RUSSEKS FIFTH A VENUE, INC. 1683 1680 Decision It is ordered That the respondent herein shall within sixty (60) days after service upon it of this order file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with the order to cease and desist.

Decision 55 F.