Howard Nussbaum, Inc.

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

IN THE MATTER OF HOWARD NUSSBAUM , INC.

TRADING AS BENTON FURS ET AL.

CONSENT ORDER, ETC. , IN REGAn TO THE ALL :GED VIOLATION OF THE FEDERAL TRADf; COMMISSION AND THE FUR PRODUCTS LABELI:-G ACTS Docket 7382. Complaint, Peb. 195D-Decision, May 20 , lD5.9 Consent order requiring furriers in Los Angeles to cease violating the Fur Products Labeling- Act by such practices as labeling certain fur products with the names of animals other than those which produced the fur, affxing tags bearing- excessive fictitious prices represented thereby as usual retail prices, advertising which represented pdccs of fur products falsely as reduced, and failing- in other respects to comply with the labeling, invoicing, and other requirements of the Act. M,.. Eugene Kaplan for the Commission. IIaTrY Cohen, Esg. for Jerome Weber of Los Angeles, Calif. for respondents.

INITIAL DECISION BY LOREN H. LAUGHLIN, HEARING EXAMINER The Federal Trade Commission (sometimes also hereinafter referred to as the Commission) on February 2 , 1959, issued its complaint herein, charging- the above-named respondents with having violated the provisions of both the Federal Trade Commission Act and the Fur Products Labeling- Act, tog-either with the Rules and Reg-ulations promulgated thereunder, and the respondents were duly served with process. On March 27, 1959, 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 and the attorneys for both parties, under date of March 25, 1959, subject to the approval of the Bureau of Litig-ation 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 93. 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: I. Respondent Howard Nussbaum, Inc., is a corporation existing and doing business under and by "virtue of the laws of the Decision 55 F.

State of California, with its offce and principal place of business located at 714 South Hill Street, Los Angeles 14, Calif. Respondent Howard Nussbaum is president of said corporate respondent and formulates, directs, and controls the acts, policies and practices of said co!'porate respondent. His address and principal place of business is the same as that of said corporate respondent.

2. 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.

3. This agreement disposes of all of this proceeding as to all parties.

4. Respondents waive:

a. Any further procedural steps before the hearing exammer and the Commission;

b. The making of findings of fact at. conclusions of law; and c. All of the rights they may have to challenge or contest the validity of the order to cease and desist entered in accordance with this agreement.

5. The record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint' and this agreement.

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

7. This agreement is for settement purposes only and does not constitute an admission by respondents that they have violated the la,,, as alleged in the complaint. 8. The following order to cease and desist may be entered in this proceeding by the Commission without further notice respondents. When so entered it shall have the same force and effect as if entered after a full hearing. II may be altered, modified, or set asirle 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 the latter is hereby approved, accepted and ordered fied, the same not to become a part of the record herein, however, unless and until it becomes part of the decision of the Commission. The hearing examiner finds from the complaint and the said "Agreement Containing Consent Order to Cease and Desist" that the BENTO!, FURS ET AL. 1837 1835 Order Commission has jurisdiction of the subject matter of this proceeding and of each of the respondents herein; that the complaint states a legal cause for complaint under the Federal Trade Commission Act and the Fur Products Labeling Act and the Rules and Rcg-ulations promulgated by the Commission under the latter Act, against each of the respondents, both g-enerally and in each of the particulars alleged therein; that this proceeding is in the interest of the public; that the follo\ving order as proposed in said agreement is appropriate for the just disposition of all of the issues in this proceeding as to all of the parties hereto; and that said order therefore should be, and hereby is, entered as follows:

ORDER It is ordered That Howard Kussbaum, Inc. , a corporation trading as Benton Furs, or under any other name, and its offcers and Howard Nussbaum, individually and as an oH-1cl' of said corporation, and respondents ' representatives, agents, and employees, directly or through any corporate or other device, in 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 are 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: 1. Misbranding fur products by:

A. Failing to affx labels to fur products showing: (1) The name or names of the animal or animals producing the fur or furs contained in the fur producl as set forth in the Fur Products ame Guide and as prescribed under the Rules and Regulations;

(2) That the fur prodl1ct contains or is composed of used fl1 when such is the fact;

(3) That the fur product contains or is composed of bleached, dyed, or otherwise artificially colored fur, when such is the fact; (4) That the fur product is composed in whole or in substantial part of paws, tails, bellies, or waste fur, when such is the fact ;

(5) The name, or other identification issued and registered by the Commission, of one or more persons who manufactured such 1838 FEDERAL TRADE COMMISSION DECISIOXS Order 55 F.

fur product for introduction into commerce, introduced it into commerce, sold it in commerce, advertised or offered it fol' sale in commerce, or transported or distributed it in commerce; (6) The name ?f the country of origin of any imported furs contained in a fur product.

B. Falsely or deceptively labeling or otherwise identifying any such product as to the name or names of the animal or animals that produced the fur from which such product was manufactured. C. Falsely or deceptively labeling or otherwise identifying such products as to the regular prices thereof by any representation that the regular or usual prices of such products are any amount in excess of the prices at which respondents have usually and customarily sold such products in the recent regular course of business.

D. Setting forth on labels affxed to fur products: (1) Information required under 94 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form;

(2) Information required under 94 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder, mingled with non-required information; (3) Information required under 94 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in handwriting.

E. Failing to set forth the information required under 94 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder on one side of labels. F. Failing to set forth the information required under 94 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in the required sequence. 2. Falsely or deceptively invoicing fur products by: A. Failing to furnish invoices to purchasers of fur products showing:

(1) The name or names of the animal or animals producing the fur or furs contained in the fur products 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 used fur when such is the fact;

(3) That the fur product contains or is composed of bleached, dyed, or otherwise artificially colored fur, when such is the fact; (4) That the fur product is composed in whole or in substan- BENTON FURS ET AL. 1839 1835 Decision tial part of paws, tails, bellies, or waste fur, when such is the fact;

(5) The name and address of the person issuing such invoice; (6) The name of the country of origin of any imported furs contained in a fur product;

(7) The item number or mark assigned to a fur product. B. Setting forth information required under 95 (b) (1) of the Fur Products Labeling Act and tbe Rules and Regulations promulgated thereunder in abbreviated form. 3. Making price claims and representations respecting price reductions unless there are maintained by respondents full 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 shall, on the 20th day of May 1959, become the decision of the Commission; and, accordingly;

It is Qj'de?' That the above-named respondents 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.

) 1840 FEDERAL TRADE CO:vMISSION DECISIONS Decision 55 F.