Gilchrist Company

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

IN THE iATTR GILCHRIST CO:YIPANY ET AL.

CONSENT ORDER, ETC. IN REGARD TO THE ALLEGED VIOLATION 01 THE FEDERAL TRDE C01\DfISSIOX AND THil FUR PRODUCTS LABELING ACTS Docket 0-63. Complaint, Jan. 17, 1962-Decision Jan. 1962 Consent order requiring Boston furriers to cease violating the Fur Products Labeling Act by failng, in labeling, invoicing, and advertising, to show the true animal Dame of fur used in fur products and when the fur was artificially colored; failng, in invoicing, to show the country of origin of imported furs; using the term "blended" improperly in labeling and advertising; advertising falsely that prices were reduced from usual prices which were "l1:J to 112" and that fur products in fact fictitious, that they were reduced on sale were "surplus stock" of another firm; failng to maintain adequate records as a basis for price and value claims; and failng in other respects to comply with requirements of the Act.

COMPLAIX' Pursua.nt to the provisions of the Federal Tra.de Commission Act and the Fur Products Labeling Act, and by virtue of the authority , 164 FEDERAL TRADE COMMISSIOK DECISIONS Complaint 60 11'. T, vested in it by said Acts, the Federal Trade Commission, having reason to believe that Gilchrist Company, a corporation, and Cummins Furs, Inc., a corporation, a.nd Lewis H. Cummins, individually and as an offcer of Cummins Furs, Inc., hereinafter referred "to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Fnr 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. Gilchrist Company is a corporation organized, existing and doing business under and by virtue of the Jaws of the Commonwealth of Massachusetts with its offce and principal place of business located at 417 IVashington Street, Boston, Mass. Cummins Furs, Inc., is a corporation orga,nized, existing and doing business under and by virtue of the laws of the Commonwealth of fassachusetts. Lewis H. Cummins is an offcer of Cummins Furs, Inc. He controls, directs and formulates the acts, practices and policies of Cummins Furs, Inc.

The offce and principal place of business of Cummins Furs, Inc. and Lewis 1-1. Cummins is the same as that of the Gilchrist Company. PAR. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 0, 1952, respondents acting in cooperation and conjunction with one another have been and are now engaged in the introduction into commerce, and in the sale, advertising, and offering for sale, in commerce, and in the transportation and distribution, in commerce, of fur products; and have sold, advertised, offered for sale transported and distributed fnr products which have been made in whole or in part of fur which had been shipped and received 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 misbranded in that they were not labeled as required under the provisions of Section 4(2) of the Fnr Products Labeling Act and in the manner and form prescribed by the Rules and Regulations promulgated thereunder. Among such misbranded fnr products, but not limited thereto, were fur products with labels which failed:

1. To show the true animal name of the fur used in the fur product. 2. To disclose that the fnr contained in the fnr products was bleached, dyed, or otherwise artificially colored when such was the fact. PAR. 4. Certain of said fur products were misbranded in violation the Fur Products Labeling Act in that they were not Jabeled in ac- GILCHRIST CO. ET AL. 165 163 Complaint cordance with the Rnles and Regulations promulgated thereunder in the following respects :

(a) The term "blended" was used as part of the information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe the pointing, bleaching, dyeing or tip-dyeing of furs, in violation of Rule 19 (f) of said Rnles and Regulations.

(b) Infonm1tion required under Section 4(2) of the Fnr Products Labeling Act and the Rules and Regulations promulgated thereunder was mingled with non-required information, in violation of Rule 20 (a) of said Rnles 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 the Fnr Products Labeling Act, and the Rnles and Regulations promulgated therennder.

Among such falsely and deceptively invoiced fur products, but not limited thereto, were invoices pertaining to such fur products which failed:

1. To show the true animal name of the fur used in the fur product. 2. To disclose tllit the fur contained in the fur products was bleached, dyed or otherwise artificially colored when such was thc fact.

3. To show the country of origin of the imported furs used in the fur product.

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 Regulations promulgated thereunder in that the term "blended" was used as part of the information required under Section 5(b) (1) of thc Fnr Products Labeling Act and the Rules and Regulations promulgated thereunder to describe the pointing, bleaching, dyeing, tip-dyeing or otherwise artificial coloring of furs, in violation of Rule 19 (f) of the said Rnles and Regulations.

PAR. 7. Certain of said fur products were falsely and deceptively advertised in violation of the Fur Products Labeling Act in that respondents caused the dissemination in commerce, as "comulerce, is defined in said Act, of certain newspaper advertisements, conceI11ing said products, which were not in accordance with the provisions of Section 5(a) of the said Act and the Rules and Regulations 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.

719-603--64-- Complaint 60 F.

PAR. 8. Among ,and included in the advertisements as aforesaid, but not limited thereto, were advertisements of respondents which appeared in issues of the Boston Globe, a newspaper published in the city of Boston, State of Massachusetts, and having a wide circulation in said State and various other States of the United States. By means of said ,advertisements and others of similar import and meaning, not specifically referred to here, respondents falsely and deceptively advertised fur products in tllat said advertisements: (a) Failed to disclose the name or names of the animal or animals that produced the fur contajned in the fu product as set forth in the Fur Products Name Guide, in violation of Section 5(a) (1) of the Fur Products Labeling Act.

(b) Failed to disclose that fur products contained or were composed of bleached, dyed or otherwise artificially colored fur, when such was the fact, in violation of Section 5 (a) (3) of the Fur Products Labeling Act.

(c) Used term "blended" as part of the information required under Section 5 (a) (3) of the Fur Products Labeling Act and the Hules and Hegulations promulgated therelUlder to dcscribe the pointing, bleachining, dyeing, tip-dyeing, or otherwise artificial coloring of furs, violation of Rule 10 (f) of said Rules and Regulations. (d) Represented prices of fur products as having been reduced from regular or usual prices where the so- called regular or usual prices were in fact fictitious in that they were not the prices at which said merchandise was usually sold by respondents in the recent regular course of business, in violation of Section 5 (a) (5) of the Fur Products Labeling Act, and Rule 44(a) of said Rules and Reguations. (e) Represented through the use of percentage savings claims such as " % to "12 off" that prices of fur products were reduced in direct proportion to the percentage of savings stated when such was not the fact, in violation of Section 5 (a) (5) of the Fur Products Labeling Act.

(f) Represented that fur products offered for sale were "surplus stock" of another firm when such was not the fact, in violation of Section 5(a) (5) of the Fur Products Labeling Act and Rule 44(g) of said Rnles and Regulations.

PAR. 0. In advertising fnr products for sale as aforesaid respondents made claims and represent ttions respecUng prices and values of fur products. Said representations were of the types covered by subsections (a), (b), (c) and (d) of Rule 44 of the Rules and Regulations promulgated illder the Fur Products Labeling Act. Respondents in making such claims and representations failed to maintain GILCHRIST CO. ET AL. 167 163 Decision and Order full and adequate records disclosing the facts upon which such claims and representations were based in violation of Rule 44(e) of said Rules and Regulations.

PAR. 10. The aforesaid acts and practices of respondents, as herein allcgcd, are in violation of the Fur Products Labeling Act and the Rnles and Regulations promnlgated thereunder and constitute unfair and deceptive acts and practices and unfair methods of competition in commerce under the Federal Trade Commission Act. DECISION AND ORDER The Commission having heretofore determined to issue its complaint charging tho respondents named in the caption hereof with violation of the Federal Trade Commssion Act and the Fur Products Labeling Act, and the respondents having been served with notice of said determination and with a copy of the complaint the Commission intended to issue, together with a proposed form of order'; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as set forth in the complaint, and waivers and provisions as required by the Commission s rules; and The Commssion, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agTccment, makes the following jurisdictional findings, and enters the following order:

1. Respondent, Gilchrst Company, is a corporation organized existing and doing business under and by virtue of the laws of the Commonwealth of Massachusetts with its offce and pricipal place of business located at 417 Washington Street, Boston, Mass. Respondent, Cummins Furs, In, is a corporation organized, existing and doing business illder and by virtue of the laws of the Commonwealth of Massachusetts.

Respondent, Lewis H. Cummins, is an offcer of Cummins Furs, Inc. The offce and principal place of business of Cummins Furs, Inc. , and Lewis H. Cnmmins is the same as that of Gilchrist Company. 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.

, , 168 FEDERAL TRADE COMMISSION DECISIOKS Decision and Order 60 F.

ORDER It is ordered That respondents Gilchrist Company, a corporation and its offcers, and Cununins Furs, Inc., a corporation, and its offcers and Lewis H. Cmnmins, individually and as an offcer of Cummins Furs, Inc. and respondents' representatives, agents and employees directly or through any corporate or other device, in connection with the introduction into cOlmnerce, or the sale, advertising, or offering for sale in commerce, Dr the transportation or distribution in COITl1crce of any fur product; or in connection with the sale, advertising, offering for sale, transportation, or distribution of any fur product which is made in whole or in part of fur which has been shipped and received in commerce, as "commerce fur, and "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from: 1. Misbranding fur products by:

A. 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.

B. Setting forth the term "blended" as part of the information required under Section 4(2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe the pointing, bleaching, dyeing, tip-dyeing or otherwise artifcially coloring of fUTs.

C. Setting forth information required under Section 4(2) of the Fur Products Labeling Act and Rules and Regulations promulgated thereunder mingled with non-required informa.tion. 2. Falsely or deceptively invoicing fur products by: A. Failing to furnish invoices to purchasers of fur products showing in words and figures plainly legible all the information required to be disclosed by each of the subsections of section 5 (b) (1) of the Fur Products Labeling Act.

B. Setting forth the term "blended" as part of the information required under Section 5(b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe the pointing, bleaching, dyeing, tip-dyeing or otherwise artificial coloring of furs.

3. Falsely or dcceptively advertising fur products through the use of any advertisement, representation, public announcement or notice which is intended to aid, promote or assist, directly or indirectly" in the sale, or offering for saleaf fur products and which: A. Fails to disclose:

GEORGE C. PALMER CO. , INC. , ET AL. 169 163 Syllabus 1. The name or names of the animal or animals producing the fur or furs contained in the fnr product, as set forth in the Fur Products K ,une Guide, and as prescribed under the Rules and Regulations.

2. That the fur product contains or is composed of bleached, dyed or otherwise artifieial1y colored fur when such is the fact. B. Represents directly or by implication that the regular or usual price of any fur product is any amount which is in excess of the price at which respondents have usually and customarily sold such products in the recent regular course of business. C. Represents directly or by implication through percentage savings daims that prices of fur products are reduced in direct proportion to the amowlt of savings stated when such is not the fact. D. l\iisrepresents in any manner the savings available to purchasers Df respondents' fur products.

E. Represents directly or by implication that fur products are surplus stock of another finn when such is not the fact. F. Sets forth the term "blcnded" as part of the information required under Section 5 (a) of the Fur Products Labeling Act and the Rules and R.egulations promulgated thereWlder to describe the pointing, bleaching, dyeing, tip-dyeing or otherwise artificial coloring of furs. 4. Making claims and representation of the types covered by snbsections (a), (b), (c) and (d) of Rule 44 ofthe Rules and Regulations promulgated lmder the Fur Products Labeling Act unless there are maintained by respondents full and adequate records disclosing the facts upon which such claims and representations are based. It iR further 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 detail the manner and form in which they Jmve complied with this order.