Trans-Ocean Import Co., Inc.

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In toe Matrer or TRANS-OCEAN IMPORT CO., INC., ET AL.

CONBENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket 7586. Complaint, Sept. 16, 1959—Decision, Mar. 24, 1960 Consent order requiring New York City distributors of rugs and floor coverings, some imported, to cease representing falsely, on labels, in advertising, price lists, invoices, etc, that the pile or wearing surface of their “Rochelle” and “New Rochelle” rugs was composed entirely of wool, and that that of their “New Chateau” rugs was 50% wool and 50% rayon; and to cease such confusing practices as describing said rugs as “9 x 12 (104” x 140”)” when they were approximately 104 inches by 140 inches in size. Mr. Garland S. Ferguson for the Commission. Respondents not represented by counsel.

TnirraL Decision py Harry R. Hixxes. Hearing Examiner The complaint in this matter charges the respondents with violation of the Federal Trade Commission Act in connection with the sale and distribution of rugs and floor coverings. An agreement has now been entered into by respondents and counsel supporting the complaint which provides, among other things, that respondents admit all the jurisdictional facts alleged in the complaint; that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the complaint and the agreement; that the making of findings of fact and conclusions of Jaw in the decision disposing of this matter is waived, together with any further procedural steps before the hearing examiner and the Commission; that the order hereinafter set forth may be entered in this proceeding without further notice to the respondents and when entered shall have the same force and effect. as if entered after a full hearing, respondents specifically waiving all the rights they may have to challenge or contest the validity of the order; that the order may be altered, modified, or set aside in the manner provided for other orders; that Order 56 TC, the complaint may be used in construing the terms of the order; that the agreement is for settlement purposes only and does not constitute an admission by respondents that they have violated the law as alleged in the complaint; and 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.

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. Corporate respondent Trans-Ocean Import Co., 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 292 Fifth Avenue, New York, N.Y. Individual respondents Philip Brenner, Charles Rostov and Ralph Shulman are officers of said corporation. They formulate, direct and control the practices of the corporate respondent. The address of the individual respondents is the same as that of the corporate respondent.

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 ordered, That respondents Trans-Ocean Import Co., Inc., a corporation, and its officers, and Philip Brenner, Charles Rostov, and Ralph Shulman, individually and as officers of said corporation, and respondents’ representatives, agents, and employees, directly or through any corporate or other device, in the connection with the offering for sale, sale, and distribution of rugs and floor coverings, or any other products, in commerce, as “commerce” is defined in the Federa] Trade Commission Act, do forthwith cease and desist from :

1. Using the terms “wool” or any other word or term indicative of wool to designate or describe any product. or portion thereof which is not composed wholly of wool, the fiber from the fleece of the sheep or lamb, or hair of the Angora or Cashmere goat, or hair of the camel, alpaca, Nama or vicuna, which has never been reclaimed from any woven or felted product; provided, that in the case of products or portions thereof which are composed in substantial part of wool and in part of other fibers or materials, the term “wool” may be used as descriptive of the wool content of ADAMS QUILTING CORP. ET AL. 1111 1109 Syllabus the product or portion thereof if they are used in immediate connection or conjunction therewith, in letters of at least equal size and conspicuousness, words truthfully designating each constituent fiber or material thereof in the order of its predominance by weight, provided further that if any fiber or material so designated is not present in a substantial quantity, the percentage thereof shall be stated. Nothing herein shall prohibit the use of the terms “reprocessed wool” or “reused woo]” when the products or those portions thereof referred to are composed of such fibers. 2. Misrepresenting the constituent fibers of which their products are composed, or the percentage or amounts thereof, on labels, in price lists, or in any other manner.

3. Using two or more sets of figures to represent the size of their products which are at variance, or in conflict, or misrepresenting in any way the actual size of said products. 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 24th day of March, 1960, become the decision of the Commission; and, accordingly :

It is ordered, That. the respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in detai] the manner and form in which they have complied with the order to cease and desist.