Bart Schwartz International Textiles, LTD.

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In THe Matrer or BART SCHWARTZ INTERNATIONAL TEXTILES, LTD., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket 7376. Complaint, Jan. 23, 1959—Decision, Nov. 11, 1959 Consent order requiring New York City distributors to cease violating the Wool Products Labeling Act by falsely labeling and invoicing fabrics as Decision 56 E.T.C.

containing variously 100%, 95%, 90%, 80%, and 70% wool fibers, and by failing in other respects to conform to requirements of the Act. Mr. Frederick McManus for the Commission. Reiman and Reiman, by ir. RF. Wf. Reiman, of New York, N.Y., for respondents.

Init1rau Decision By J. Earn Cox, Heartne ExXaMINEr The complaint charges respondents with misbranding certain of their wool products, and with the use of false, misleading and deceptive statements and representations on sales invoices, orders and other shipping memoranda as to the percentages of wool fibers contained in said products, in violation of §4(a)(1) and §4(a)(2) of the Wool Products Labeling Act of 1989 and the Rules and Regulations promulgated thereunder, and of the Federal Trade Commission Act.

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

The agreement states that respondent Bart Schwartz International Textiles, Ltd., 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 1407 Broadway, New York, New York, and that respondents Bart Schwartz and Louis Rudolph are officers of the corporate respondent and formulate, direct, and control the acts and practices of the respondents. their address being the same 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 shall 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, modified or set aside in the manner provided for other orders; that the agreement is for settlement purposes only and does not constitute an admission by the respondents that they have violated the law as alleged in the complaint; and that the order set forth in the agree- BART SCHWARTZ INTERNATIONAL TEXTILES, LTD., ET AL. 489 487 Order ment 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 hearing 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 Wool Products Labeling Act of 1939 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 consent order to cease and desist as part of the record upon which this decision is based. Therefore, It is ordered, That the respondents, Bart Schwartz International Textiles, Ltd., a corporation, and its officers, and Bart Schwartz and Louis Rudolph, individually and as officers of said corporation, and said 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 fabrics or other wool products, as such products are defined in and subject. to the Wool Products Labeling Act of 1939, do forthwith cease and desist from misbranding such products by: 1. Falsely or deceptively stamping, tagging, labeling, or otherwise identifying such products as to the character or amount of the constituent fibers included therein; 2. Failing to securely affix 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 products exclusive of ornamentation not exceeding 5 percentum of said total fiber weight of (1) wool, (2) reprocessed wool, (8) reused wool, (4) each fiber other than wool where said percentage by weight of such fiber is 5 percentum or more, and (5) the aggregate of all other fibers;

(b) The maximum percentage of the total weight of such products of 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 Syllabus 56 F.T.C.

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 Produets Labeling Act of 1939;

3. Failing to stamp, tag or label samples, swatches or specimens of wool products, which are used to promote or effect sales of such wool products in commerce with the information required under Paragraph 2 hereof, as provided by Rule 22 of the Rules and Regulations promulgated under the Wool Products Labeling Act of 1989. It is further ordered, That the respondent Bart Schwartz International Testiles, Ltd., a corporation, and Bart Schwartz and Louis Rudolph, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or through any other corporate device, in connection with the offering for sale, sale or distribution of fabrics or other merchandise in commerce, do forthwith cease and desist from misrepresenting the constituent fibers of which their products are composed or the percentages thereof in invoices, shipping memoranda or in any other manner. DECISION OF THE COMMISSION AND ORDER TO FILE REPORT OF COMPLIANCE Pursuant to Section 8.21 of the Commission’s Rules of Practice, the initial decision of the hearing examiner shall, on the 11th day of November, 1959, become the decision of the Commission; and, accordingly :

It is ordered, That respondents Bart Schwartz International Textiles, Ltd., a corporation, and Bart Schwartz and Louis Rudolph, 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.