Woolart Mills, Inc.

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

In THe Matrer oF WOOLART MILLS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 7441. Complaint, Mfar. 12, 1959—Decision, Sept. 15, 1959 Consent order requiring New York City distributors to cease misrepresenting the fiber content of certain wool products on invoices, and to cease violating the Wool Products Labeling Act by failing to label wool products as required.

Mr. Alvin D. Edelson for the Commission.

Respondents, for themselves.

InrriaL Decision By J. Earn Cox, Heartnc Examiner The complaint charges respondents with misbranding certain of their wool products, and with misrepresenting the fiber content of certain of said products on invoices to their customers, in violation of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, and of the Federal Trade Commission Act.

After the issuance of the complaint, respondents and counsel supporting the complaint entered into an agreement containing consent order to cease and desist, which was approved by the Director and and Assistant Director of the Commission’s Bureau of Litigation, and thereafter transmitted to the Hearing Examiner for consideration.

The agreement states that respondent Woolart Mills, Inc., is a corporation existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 419 Fourth Avenue, New York City, New 306 FEDERAL TRADE COMMISSION DECISIUNS Order 56 F.T.C.

York, and that individual respondents Fred Kloeckener and Sam A. Spina are officers of the corporate respondent and have the same address as that of the corporate respondent. The agreement provides, among other things, that 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; that the record on which the initial decision and the decision of the Commission shal] be based shall consist solely of the complaint and this agreement; that the agreement shall not become a part of the official record unless and until it. becomes a part of the decision of the Commission; that the complaint may be used in construing the terms of the order agreed upon, which may be altered, modlified or set aside in the manner provided for other orders; that the agreement is for settlement purposes only anc does not constitute an admission by respondents that they have violated the law as alleged in the complaint; and that the order set. forth in the agreement and hereinafter included in this decision shall have the same force and effect as if entered after a full hearing. , Respondents waive any further procedural steps before the hear- Ing examiner and the Commission, the making of findings of fact or 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.

The order agreed upon fully disposes of all the issues raised in the complaint, and adequately prohibits the acts and practices charged therein as being in violation of the Weol Products Labeling Act. of 1989 and the Rules and Regulations promulgated thereunder, and of the Federal Trade Commission Act. Accordingly, the hearing examiner finds this proceeding to be in the public interest, and accepts the agreement containing the consent order to cease and desist as part of the record upon which this decision is based. Therefore, It is ordered, That respondents Woolart Mills. Inc., a corporation, and its officers. and Fred Kloeckener and Sam A. Spina, individually and as officers of the corporation, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction or manufacture for introduction into commerce, or the offering for sale, sale. transportation or distribution in commerce. as “commerce” is defined in the Federal Trade Commission Act and the Wool Products Labeling Act of 1989, of “wool products” as such products are defined in and subject to the Wool Products Labeling Act of 1989. do forthwith cease and desist. from misbranding such products by: WOOLART MILLS, INC., ET AL. 307 305 Decision 1. Failing to securely affix to or place on each such product a stamp, tag, label or other means of identification showing in a clear and conspicuous manner :

(a) The percentage of the total fiber weight of such wool product, exclusive of ornamentation not exceeding five percentum of said total fiber weight, of (1) wool, (2) reprocessed wool, (3) reused wood, (4) each fiber other than wool where said percentage by weight of such fiber is five percentum or more, and (5) the aggregate of all other fibers;

(b) The maximum percentage of the total weight of such wool products, or any non-fibrous loading, filling or adulterating matter; (c) The name or the registered identification number of the manufacturer of such wool product or of one or more persons engaged in introducing such wool product into commerce, or in the offering for sale, sale, transportation, distribution or delivery for shipment thereof in commerce, as “commerce” is defined in the Wool Products Labeling Act of 1939.

It 7s further ordered, That respondents, Woolart Mills, Inc., a corporation, and its oflicers, and Fred Kloeckener and Sam A. Spina, individually and as officers of the 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 textile fabrics in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, on invoices, in advertising, or through any other media, in any manner, directly or by implication, that said fabrics are composed of certain percentages of a particular fiber, or fibers, are substantially composed of a particular fiber, or fibers, unless such is the 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 initia] decision of the hearing examiner shall, on the 15th day of September, 1959, become the decision of ihe Commission; and, accordingly :

It ts ordered, That respondents Woolart Mills, Inc., a corporation, and Fred loeckener and Sam A. Spina, individually and as officers of said corporation, 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. Decision 56 F.T.C.