Chambers-Sherwin, Inc., et al.

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IN Tile MATTER CHA:\IBERS-SHERWIX, INC., ET AL.

CONSENT ORDER ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRDE CO)flIISSIOK AXD Tile FUR PRODUCTS LABELING ACTS Docket 8269. Complaint, Dec. 30, 1960-Decision, Apr. , 1961 Consent order requiring New York City furriers to cease violating the Fur Products Labeling Act by failng to comply with invoicing and labeling requirements.

C01lIPL.UXT 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 said Acts, the Federal Trade Commission, having reason to believe that Chambers-Sherwin, Inc. , a corporation, and Albert:YL Chambers and :\ionroe Sherwin, individually and as offcers of said corporation, hereinafter referred to as respondents, have violated the p1'ovisions of said Acts and the Rules and Regulations promulgateclunder the Fur Products Labeling Aet, and it appearing to the Commission that t 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. Chambers-Sherwin, Inc. is a corporation organized, existing and doing business under and by virtue of the laws the State of New York with its notice and principal place of business located at 3;30 Seventh Avenue, Ne",v York: New York. Albert :11: Chambers and :Monroe Sherwin are offcers of the corporate respondent. They control, formula.te and direct the acts and practices of the corporate respondent. Their address is the srune as that of the corporate respondent.

PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9 , HL'52, respondents have been and are now engaged in the int.production int.o commerce, and in the manufacture for introduction into commerce and in the sale, advertising, offering for sflle, transportation find distribution, in commerce, of fur products; and have manufactured for sale, sold, advertised CHA-VfBERS-SI-ERWIN) I:-C. , ET AL. 621 620 Decision offered for sale, transported and distributed fur products which have been made in whole or in part of fur which had been shipped and "furand received in commerce as the terms "commerce, "fur" product" are defined in the Fur Products Labeling Act. PAR. 3. Certain of said fur products were misbranded in that they were not labcled as required under the provisions of Section 4 (2) of the Fur Products Labeling Act and in the manner and form prescribed by the Rules and Rcgulations promulgated thereunder. PAR. 4. Certain of said fur products were misbranded in violation of the Fur Products Labeling Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects:

(a) Information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was mingled with non-required information, in violation of Rule 29(a) of said Rules and Regulations. (b) Information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder l,S not completely set out on Olle side of labels, in violation of Rule 29 (a) of said Rules and Regulations.

PAR. 5. Certain of said fur products were falsely and deceptively invoiced by respondents in that they were not invoiced as required by Section 5(b) (1) of thc Fur Products Labeling .Act, and in the manner and form prescribed by the Rules and Regulations promulgated thereunder.

PAR. 6. Certain of said fur products were falsely and deceptively invoiced in violation of the Fur Products Labeling Act in that they were not invoiced in accordance with the Rules and Hegulations promulgated thereunder in that information required under Section 5 (b) (1) of the Fur Product.s Labeling Act and the Rules and Regulations promulgated thereunder was set forth in abbreviated form in violat.ion of Rule 4 of said Rules and Regulations. PAR. 7. The aforesaid acts and practices of respondents, as herein allcgcd, are in violation of the Fur Products Labeling .Act and the Rules and Regulations promulgated thereunder and constitute unfair and deceptive acts and practices in commerce under t.he Federal Trade Commission .Act..

Mr. Arthur Wolter, Jr. supporting t.he complaint. Respondents pro se.

INITIAL DECISION BY .J onK B. Poindexter, :HEARING EXA:MINER On December 30, 1960, t.he Federal Trade Commission issued a complaint charging t.he above-named respondents with misbranding 622 FEDERAL TRADE CQyI:HSSION DECISIOKS Findings GS F.

and falsely and deceptively invoicing certain of their fur products in violation of the Federal Trade Commission Act and the Fur Products Labeling Act.

After issuance and service of the complaint, the respondents an,1 counsel supporting the complaint entered into an agre.ement for consent order. The agreement has been approved by the Director Acting Associate Director and the Assistant Director of the Bureau of Litigation. The agreement disposes of the matters complained about.

The pertinent provisions of said agreement arc as folloTIs: Respondents admit all jurisdictional facts; the complaint may bc used in construing the terms of the order; the order shah have the same force and effect as if entered after a full hearing and the said agreement shall not become a part of the offcial record of the proceeding unless and until it becomes a part of the decision of the Commission: the record herein shall consist solely of the complaint and ihe agree- Ineut; respondents ,vaive the requirement that the decision must contain a statement of findings of fact and conclusions of law; respondents waive further procedural steps before t.he hearing examiner and the Commission, and the order may be altered, modified set aside in the manner provided by st.atute for other orders; respondents waive any right to challenge or contest the validity of the order entered in accordance with the agreement and the signing of does not con-said agreement is for settlement purposes only and stitute an admission by respondents that they have violated the law as alleged in the complaint.

The undersigned hearing examiner having considered ihe agreement and proposed order, hereby accepts such agreement, makes tlw, following jurisdictional findings, and issues the following order: JURSDICTIONAL Fe-WINGS 1. R.respondent Chambers-Sherwin, Inc. is a corporation organized existing and doing business under and by virtue of the laws of the State of New York. Individual respondents Albert :\1. Chamber, and Monroe Sherwin are offcers of said corporate respondent. Said individual repondents formulate, direct and control the acts, policies and practices of the corporatc respondent. All respondents have their offce and principal place of business at 350 Seventh A venue, Xe\l York, N ew York.

2. The Federal Trade Commision has jurisdiction of the subjo,.1 matter of this proceeding and of the respondents hereinfLbovc named and the proceeding is in the public interest. , CHA::IBERS- SHERWI IXC. ET AL. 623 620 Decisioll ORDER It i8 dered That respondents Chambcrs-Sherwin, Inc., a corporation, and its officers, and Albert M. Chambers and Monroe Sherwin individually and as offcers of said corporation, and respondents representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction, manufacture for introduction, or the sale, advertising, offering for sale trans portatioll or distribution in commerce of fur products; or in con nection with the sale, manufacture for sale, advertising, offering for sale, transportation or distribution of fur products which have been made in whole or in part of fur which has been shipped and received in commerce, as "commerce fur" and "fur products " are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. Misbranding fur products by:

1. Failing to affx labels to fur products showing!! in words and figures plainly legible all the information required to be disclosed by each of the subsections of Section 4(2) of the Fur Products Labeling Act.

2. Setting forth on labels affxed to fur products information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder mingled with non-required information.

o. Faijing to set forth on labels affxed to fur products an the information required to be disclosed by Section 4(2) of thc Fur Products Labeling Act and the R.ulcs a.nd Regulations promulgated thereunder on one side of such .labels.

B. Falsely or deceptively invoicing fur products by: 1. Failing to furnish invoices to purchaseres of fur products showing all the information required to be disclosed by each of the subsections of Section 5(b) (1) of the Fur Products Labeling Act. 2. Setting forth information required under Section 5(b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated form. DECISION OF THE COl\DrrSSION 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 13th day of April 1961, become the decision of the Commission; and accordingly:

It i8 ordered That the respondents herein shall within sixty (60) days after service upon them of this order, file with the Commission 624 FEDERAL TRADE CO:.L\HSSIOK DECISIONS Complaint 58 F.

a. report in writing setting forth in detail the manner and form in which they have complied with the order to cease and desist.