George L. Westenberger

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IN THE MATTER OF GEORGE L. WESTENBERGER ET AL.

TRADnlG AS WESTENBERGER' CONSENT ORDER: ETC" I REGARD TO THE ALLEGED VIOLATION OF THE FEDEHM, Tnade co::nIISSIOX AX!) THE Fun PRODUCTS LABELING ACTS Docket 8189. Complaint, Nov. 1960-Deaision, AIJT. , 1961 Consent order requiring Springfield, 111., furriers to cease violating the Fur Products Labeling Act by advertising in newspapers which failed to disclose the names of animals producing certain furs or the country origin of imported furs, represented prices as reduced from so-called regular prices which were, in fact, fictitious, and, by use of such phrases as "Save to 20% or more on any fur in stock" , that regular prices were reduced in t.hat percentage when such was not true, and which failed in other respects to comply with requirements of the Act; and by failng to keep adequate records as a basis for pricing claims, COl'IPLAIN' Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority vested in it by sa.id Acts, the Federal Trade COlnmissioll, having reason to believe that George L. 'Westenberger and YIary E. 'Westenberger II, indivic1llal1y and fl.S copartners trading as vVestenberger hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Fur Products Labeling Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. George L .\Vestenberger and 1iary E. vVestenberger II are individuals and copartners trading as vVestenberger with their offce and principal place of business located at 206 South Sixth Street, Springfield, IJinois.

PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9, 1952, respondents in conjunction with lessees of their fur department, have been and are nO"7 engaged in the introduction into commerce and in the sale, advertising and 556 FEDERAL TRADE COc.nnsSIO:\ DECISIO:\S Decision 58 r.

offering for sale, in commerce, and in the transportation, and distribution, in commerce, of fur products; and have so1c1 , advertised offered for sale, trrmsportec1 a.nd distributed fur products which have been milde in whole or in part of fur which had been shipped and reccivecl in commerce, as the terms "commerce fur" and "fur product" are defined in the Fur Products Labeling Act. PAR. 3. Certain of said fur products were falsely and deceptively advertised in violation of the Fur Products Labeling Act in that respondents caused the dissemina60n in commerce, as "commerce is defined in said Act, of certain ne"\vspaper a.cvertise,ments, concerning said products, which were not in accordance 'with the provisions of Section 5(a) of the said Act and the Uules and Regn1ations promulgated thereunder; and which advertisements were intended to aid, promote and assist, directly or indirectly, in the sale and offering for sale of said fur products.

PAR. 4. Among and included in the advertisements as aforcsal(L but not limited thereto, "ere advert.isements of respondent.s which appe tred in issncs of the Illinois State R.egister, a newspaper published in the City of Springfield, State of Ilinois, and having a wide circulation in said State and various other States of the 1;nitecl States.

By merllS of said acln rtisements and others of similar import and meaning, not specifically referred t.o herein, re.sponclents falsely and c1decep1-very advertised fur products in t.hat said nc1vertisements: (a) Failed to disclose the name or names of the animal or animals that produced the fur contained in the fur product as set forth in the Fur Products Kame Guide, in violation of Section 5(a) (1) of the Fur Products Labeling Act.

(b) Failed to disclose the name of the country of origin of the imported furs contained in the fur products, in violation of Section 5(a) (6) of the Fur Products Labeling Act. (c) Contained infonmttion required under Section 5 (a) of the Fur Products Labeling Act and the Rules and HegubJions promulgated thereunder which was not set forth in type of equal sjze and conspicuousness and in close proximity -with each other' in violation of Rule 38 (a) of said Rules and Regulations. (d) Represented prices of fur prQ(lucts fls having been reduced from regular or usual prices where the so-called regular or usual prices ,,,ere in fad fictit.ious in that they ,-.81'e not the pricrs at Which said merchandise "'-:lS usually sold by respondents in the. recent. re Jar course. of business, in violat.ion of Sec.tion 5(a) (5) of the, Fur Products Labeling Act and Rule H(a) of said Rules and Regulations. (e) Represented through the nse of pereentA-ge savings claims such as "Save to 20% or more on any fur in stock' that the regular WESTENBERGER' 557 555 Decision or usual prices charged by respondents for fur products in the recent regular course of business were reduced in direct proportion to the percentage of savings stated when such 'vas not the fact in violation of Section 5 (a) (5) of the Fur Products Labeling Act. PAR. 5. Hespondents in advertising fur products for sale a,s aforesaid ma.ce claims and representations respecting the prices and values of fur products. Respondents in making such claims and representations failed to maintain full and adequate.e records disclosing the facts upon 'Vhich such claims and representations were based in violation of Rule 44(e) of the said Rules and Rcgulations. PAR. 6. The aforesaid acts and practices of respondent, as herein allegcd, are in violation of the Fur Products Labeling Act and the Rules and R.eguJatiolls promulgated thereunder and constitute unfair and deceptive acts and practices in commerce under the Federal Trflc1e Commission Act.

!lit. Michael r. Ihtghe8 for the Commission. !lit. A. Louis Oresman by Mr. David 111, I:evitan of Xew York N. Y. , for respondents.

I::"CTTL\L DECISroX BY ABNER E. LIPSCO::IB, IIEARIXG EX -\I\IIXER The complaint herein was issued on X ovember 28 , 1960: charging the Respondents 'with violation of the Federal Trade Commission Act and of the Fur Products Labeling Act and the Rules and Hegulations promulgated thereunder, by falsely and deceptively advertising certain of their fur products, and by failing to maintain full and adequate records disclosing the facts upon which were based certain elninls and representations respect.ing the prices and values or fur products.

Thereafter, on January 28 1061 respondents, their counsel, and counsel supporting the complaint herein entered into an Agreement Containing Consent Order To Cease And Desist, which was approved by the Director, Associate Director and Assistant Director of the Commission s Bureau of Litigation, and thereafter, on February 17 1D61 submitted to the hearing Examiner for consideration. The agreement identifies Hespondents George L. VVestenbcrger and l\Iary E. 'Vestenberger II as individuals and copartners trading as \Vestenberger, with their principal place of business located at 20f5 South -Sixth Street, Springfield, Illinois. Respondents admit all the jurisdictional facts alleged in the complaint, and agree that the record may be taken if findings of jurisdictionol facts had been duly made in accordance with such allegations.

Decision 58 F.

Respondents waive any further procedure before the IIearing Examiner and the Commission; the making of findings oT fa,ct and conclusions of law; and all of the rights they lllay have to challenge or contest the validity of the order to cease and desist entered in flccorc1ance with the agreement. All parties agree that the record on which the initial decision and the decision of the Commission shall be based shall consist solely of the compbint and the agreement; t.hat the order to ceflSC and desist., as contained in the agreement when it shah hand become a part of the decision of the Commission shan 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; that the comphtint herein may be usedil1 const.ruling the terms of said order; and 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. J\.after consideration of the allegations of the complaint, and the provisions of the agreement and the proposed order, t.he Hearing- Examiner is of the opinion that sllch order const.itutcs a satisfa.e:ory disposition of t.his proceeding. Accordingly, in consonance with the terms or the afores tic1 agreement, the I-Iearing Exa,miner accepts the A.gremnent Containing Consent Order To Cease And Desist; finds t.hat the Commission has jurisdiction oyer the Respondents and. oyer their acts and practices as alleged in the complaint; and finds that this proceeding is in the public interest. Therefore it is or(lered That George L. ,Vestenberger and :Mary E. ,VestenbergcT' II, individually and as copartners trading as ",Vestcllberger or under any other trade name, and respondents' representatives gents and employees, directly or through any corpor11te or other device, in connection with the introduction into commerce, or the sale, advertising, or offering for sale in commerce, or the transportaor in connectiontion or dist.ribution in commerce of fur products, wit.h 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, 11S "commerce de.finec1 in the Fur Products Labeling fur" a.nd "fur product" arc Act, do iorth\with cease and desist from: 1. Falsely or deceptively advertising fur products through t.he use of a.ny advertisement., representation, public a.nnounce1nent or notice which is intended to aid, promote or assist, directly or indirectly, in tho sale, or the offering for sale of fur products a.nd which: A. l"ails to disclose:

(1) The nmne or names of the animal,) or animals producing the fur or furs contained in the fur products as set fort.h in the Fur Products Name Guide and as prescribed under the Rules and Regulations; , ERA RECORDS 559 555 Syllabus (2) The name of the country of origin of any imported furs contained in a fur product;

B. Fails to set forth the information Tequired under 5 (a) of the Fur Products Labeling Act and the Rules a,nc1 R.egulations promulgated thereunder in type of equal size and conspicuousness and in close proximity.y \"ith each other;

C. R,represents directly or by imp1icatiol1 that the re.gular or usual price of ant fur product is any amount which is in exee,ss of the price at which )i,esponcIents have usually and customarily sold such products in the recent regular course of business; D. Hepresents directly or by implication through percentage savings claims that the regular or llsua.l price charged by Hesponclents for fur products in the recent regular course of business were reduced in direct proportion to the amount of savings stated ' when contrary to the fact;

2. ::Iaking pricing claims or representations respecting prices or values oJ fur products unless R.respondents maintain fun and adequate records disclosing the facts upon which such claims and representations are based.

DECISION OF THE COl\DIISSION AND GIlDER TO FILE REPORT OF CO fPLIANCE Pursuant to Section 3.21 of the Commission s Rules of Practice the initial decision of the hearing exa.miner shan on the 6th day of April 1861, become the decision of the Commission; and acocrdingly:

It is G).dei' That respondents George L. "Westenberger and 1Iary E. '\YestenbcTger IIJ individually and as copartners trading as '\Vestel1bergcl"s, 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.