ElysÉE Fabrics, Inc., et al.

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

In THe Martrer or ELYSEE FABRICS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION, THE TEXTILE FIBER PRODUCTS IDENTIFI- CATION, AND THE WOOL PRODUCTS LABELING ACTS Docket C-236. Complaint, Sept. 18, 1962—Decision, Sept. 18, 1962 Consent order requiring importers in Jamaica, N.Y., to cease violating the Textile Fiber Products Identification Act by labeling, invoicing, and advertising textile fiber products falsely as to the name or amount of.constituent fibers, and by use of such misleading terms as “linen weave” and “silky”; failing to disclose on labels on textiles the true generic name of the fibers present, the percentage thereof, and the order of predominance by weight; failing to set forth in catalogs the true generic names of fibers in advertised fabrics, and using therein the name “Jeopard” or other fur bearing animal for textiles which were not fur products; and to cease violating the Wool Products Labeling Act by failing to disclose the true generic name of fibers present in wool fabrics, Complaint Pursuant to the provisions of the Federal Trade Commission Act, the Textile Fiber Products Identification Act and the Wool Products Labeling Act and by virtue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that Elysée Fabrics, Inc., a corporation, and Gunther F. Ziegler, individually and as an officer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Textile Fiber Products Identification Act and the Wool Products Labeling Act of 1939, and it appearing ELYS&E FABRICS, INC., ET AL. 617 616 Complaint 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:

Paracrapy 1. Respondent Elysée Fabrics, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Individual respondent Gunther F. Ziegler is vice-president of the corporate respondent and assists in formulating, directing and controlling the acts, practices and policies of the corporate respondent. Respondents are engaged in the importation of fabrics into the United States and in the retail sale of fabrics by mail and through its retail stores. The office and principal place of business of all respondents is located at 152-20 Rockaway Boulevard, Jamaica, N.Y. Par 2. Subsequent to the effective date of the Textile Fiber Products Identification Act on March 8, 1960, respondents have been and are now engaged in the introduction, delivery for introduction, sale, advertising, and offering for sale, in commerce, and in the transportation and causing to be transported in commerce, and in the importation into the United States, of textile fiber products; and have sold, offered for sale, advertised, delivered, transported, and have caused to be transported, textile fiber products, which have been advertised and offered for sale in commerce; and have sold, offered for sale, advertised, delivered, transported, and caused to be transported, after shipment in commerce, textile fiber products, either in their original state or contained in other textile fiber products, as the terms “commerce”, and “textile fiber product” are defined in the Textile Fiber Products Identification Act.

Par 3. Certain of said textile fiber products were misbranded by respondents within the intent and meaning of Section 4(a) of the Textile Fiber Products Identification Act and the Rules and the Regwlations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, invoiced, advertised, or otherwise identified as to the name or amount of constituent fibers contained therein.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products which were falsely and deceptively labeled, in that they were labled as “50% cotton, 18% artificial fiber, 2% nylon, 30% rayon” whereas, in truth and in fact, such textile fiber products contained substantially different amounts of fibers from those represented on the label.

Also among such misbranded textile fiber products, but not limited Complaint 61 F.T.C.

thereto, were textile fiber products which were falsely and deceptively advertised by means of “catalogs”, sold and distributed by respondents throughout the United States, in that certain of said advertisements contained terms which represented, either directly or by implication, . certain fibers as present in said products when such was not the case. Among such terms, but not limited thereto, were the terms “linen weave” and “silky”.

Par. 4. Certain of said textile fiber products were further misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified as required under the provisions of Section 4(b) of the Textile Fiber Products Identification Act, and in the manner and form as prescribed by the Rules and Regulations promulgated under said Acts.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products with labels which failed : 1. To disclose the true generic name of the fibers present. 2. To disclose the percentage of such fibers. 3. To designate each fiber in the products in order of predominance by weight.

Par. 5. Certain of said textile fiber products were further misbranded by respondents in that fibers present in such textile fiber products in the amount of five per centum or less of the total fiber weight were designated by their generic names, in violation of Section 4(b) of the Textile Fiber Products Identification Act and Rule 3 of the Rules and Regulations promulgated thereunder.

Par. 6. Certain of said textile fiber products were misbranded in violation of the Textile Fiber Products Identification Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects: A. Fiber trademarks were placed on labels without the generic name of the fibers appearing on such labels, in violation of Rule 17 (a) of the aforesaid Rules and Regulations.

B. Fiber trademarks were used on labels without a full and complete fiber content disclosure appearing on such labels, in violation of Rule 17(b) of the aforesaid Rules and Regulations. C. Samples, swatches and specimens of textile fiber products subject to the aforesaid Act which were used to promote or effect sales of such textile fiber products, were not labeled to show their respective fiber content and other information required by Section 4(b) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, in violation of Rule 21(a) of the aforesaid Rules and Regulations.

ELYSEE FABRICS, INC., ET AL. 619 616 Complaint Par. 7. Certain of said textile fiber products were falsely and deceptively advertised in that respondents in making disclosures or implications as to the fiber content of such textile fiber products in written advertisements used to aid, promote, and assist directly or indirectly in the sale or offering for sale of said products, failed to set forth the required information as to fiber content as specified by Section 4(c) of the Textile Fiber Products Identification Act and in the manner and form prescribed by the Rules and Regulations promulgated under said Act.

Among such textile fiber products, but not limited thereto, were fabrics which were falsely and deceptively advertised by means of “catalogs” sold and distributed by respondents throughout the United States in that the true generic names of the fibers in such fabrics were not set forth.

Par. 8. In advertisements of textile fiber products by the means alleged in paragraph 7, certain of said textile fiber products were falsely and deceptively advertised in that fibers present in such textile fiber products in the amount of five per centum or less of the total fiber weight were designated by their generic name, in violation of Section 4(c) of the Textile Fiber Products Identification Act and Rule 3 of the Rules and Regulations promulgated thereunder. Par. 9. In advertisements of textile fiber products by the means alleged in paragraph 7, certain of said textile fiber products were falsely and deceptively advertised in that the name of a fur-bearing animal, including among others leopard, but not limited thereto, was used in the advertisement of such products when said products or parts thereof in connection with which the name of the fur-bearing animal was used, were not furs or fur products within the meaning of the Fur Products Labeling Act and did not contain the hair or fiber of such fur-bearing animal, in violation of Section 4(g) of the Textile Fiber Products Identification Act and Rule 9 of the Rules and Regulations promulgated thereunder.

Par. 10. In advertisements of textile fiber products by the means alleged in paragraph 7, certain of said textile fiber products were falsely and deceptively advertised in violation of the Textile Fiber Products Identification Act in that they were not advertised in accordance with the Rules and Regulations promulgated thereunder, in the following respects:

A. The generic name of a fiber was used in advertising textile fiber products, in such a manner as to be false, deceptive, and misleading as to fiber content and to indicate, directly or indirectly, that such textile fiber products were composed wholly or in part of such fiber when Complaint 61 F.T.C.

such was not the case, in violation of Rule 41(d) of the aforesaid Rules and Regulations.

Among such products, but not limited thereto, were textile fiber products advertised as “linen weave” thus implying that such products were composed wholly or in part of linen when in fact the products contained no linen. 3 1 4 3 0 0 667 921 1315 297 -1 4 1 4 3 1 0 713 921 1268 51 -1 5 1 4 3 1 1 713 921 40 32 91.359924 B.5 1 4 3 1 2 776 921 235 44 96.877945 Nonrequired5 1 4 3 1 3 1022 923 225 34 96.973137 information5 1 4 3 1 4 1259 924 67 33 96.660042 ands 1 4 3 1 5 1337 926 283 41 96.807747 representations5 1 4 3 1 6 1631 927 81 33 96.558426 used5 1 4 3 1 7 1724 927 36 33 96.270035 in5 1 4 3 1 8 1771 928 210 44 96.270035 advertising4 1 4 3 2 0 671 971 1311 49 -1 5 1 4 3 2 1 671 971 116 34 96.984703 textiles 1 4 3 2 2 807 972 84 33 96.867439 fibers 1 4 3 2 3 910 974 161 42 96.367775 products5 1 4 3 2 4 1091 985 86 23 96.988701 were5 1 4 3 2 5 1197 975 97 42 96.787834 false,5 1 4 3 2 6 1308 976 179 42 96.993927 deceptive5 1 4 3 2 7 1506 977 67 32 96.660172 ands 1 4 3 2 8 1591 977 205 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32 96.807983 such5 1 4 4 1 3 971 1227 172 42 96.306580 products,5 1 4 4 1 4 1165 1228 62 32 96.746117 but5 1 4 4 1 5 1248 1232 61 29 96.975166 not5 1 4 4 1 6 1330 1228 133 33 96.722656 limited5 1 4 4 1 7 1484 1230 141 40 96.776459 thereto,5 1 4 4 1 8 1646 1241 88 22 96.309448 were5 1 4 4 1 9 1754 1230 118 33 96.898270 textiles 1 4 4 1 10 1893 1231 83 32 96.861931 fiber4 1 4 4 2 0 665 1276 1310 47 -1 5 1 4 4 2 1 665 1276 162 41 96.817917 products5 1 4 4 2 2 847 1277 191 33 96.041046 advertised5 1 4 4 2 3 1059 1289 35 21 93.057640 as5 1 4 4 2 4 1114 1277 220 34 91.773300 linen-weave5 1 4 4 2 5 1354 1280 68 31 93.182190 ands 1 4 4 2 6 1441 1279 176 32 91.883095 linen-likes 1 4 4 2 7 1636 1291 112 22 96.874390 weave5 1 4 4 2 8 1766 1280 79 34 93.261055 thus5 1 4 4 2 9 1864 1292 111 31 92.088829 repre-4 1 4 4 3 0 667 1326 1307 46 -1 5 1 4 4 3 1 667 1326 142 43 96.449020 senting,5 1 4 4 3 2 832 1327 141 43 96.842377 directly5 1 4 4 3 3 994 1339 39 22 96.710655 or5 1 4 4 3 4 1053 1328 44 42 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1533 238 42 96.291962 promulgated5 1 4 5 3 8 1588 1534 213 41 96.161583 thereunder,5 1 4 5 3 9 1815 1535 67 32 92.244423 ands 1 4 5 3 10 1898 1545 75 22 92.244423 con-4 1 4 5 4 0 663 1581 1312 45 -1 5 1 4 5 4 1 663 1581 152 42 96.571991 stituted,5 1 4 5 4 2 830 1583 67 32 96.831963 ands 1 4 5 4 3 910 1593 76 21 96.864510 now5 1 4 5 4 4 999 1582 181 33 96.834778 constitutes 1 4 5 4 5 1193 1583 120 32 96.651367 unfair5 1 4 5 4 6 1323 1584 155 32 96.418282 methods5 1 4 5 4 7 1490 1584 39 32 96.267990 of5 1 4 5 4 8 1543 1584 217 42 96.267990 competitions 1 4 5 4 9 1775 1585 66 32 96.418991 ands 1 4 5 4 10 1855 1584 120 33 96.114548 unfair4 1 4 5 5 0 662 1633 1311 43 -1 5 1 4 5 5 1 662 1633 68 32 96.406189 ands 1 4 5 5 2 755 1633 173 43 96.235855 deceptive5 1 4 5 5 3 953 1638 71 28 95.885506 acts5 1 4 5 5 4 1048 1635 67 32 95.885506 ands 1 4 5 5 5 1141 1635 174 41 95.554710 practices,5 1 4 5 5 6 1340 1634 36 32 96.101044 in5 1 4 5 5 7 1400 1645 192 31 95.965996 commerce,5 1 4 5 5 8 1616 1636 108 32 96.757401 under5 1 4 5 5 9 1747 1636 58 32 96.451080 thes 1 4 5 5 10 1828 1635 145 33 95.488358 Federal4 1 4 5 6 0 661 1683 439 34 -1 5 1 4 5 6 1 661 1683 113 33 96.467575 Trades 1 4 5 6 2 788 1684 223 33 96.369049 Commissions 1 4 5 6 3 1024 1685 76 32 96.626450 Act.3 1 4 6 0 0 660 1734 1312 244 -1 4 1 4 6 1 0 703 1734 1269 42 -1 5 1 4 6 1 1 703 1734 82 32 92.299057 Par.5 1 4 6 1 2 809 1737 48 30 95.805916 12.5 1 4 6 1 3 881 1735 211 41 96.464943 Subsequent5 1 4 6 1 4 1117 1740 35 28 95.935020 to5 1 4 6 1 5 1177 1737 58 31 96.377625 thes 1 4 6 1 6 1258 1736 154 32 96.377625 effective5 1 4 6 1 7 1435 1736 79 32 96.122116 dates 1 4 6 1 8 1537 1736 39 32 96.676239 of5 1 4 6 1 9 1599 1737 59 32 96.576851 thes 1 4 6 1 10 1681 1737 99 33 96.628860 Wool5 1 4 6 1 11 1805 1737 167 33 95.825562 Products4 1 4 6 2 0 660 1784 1308 44 -1 5 1 4 6 2 1 660 1784 167 43 96.774017 Labeling5 1 4 6 2 2 847 1785 70 32 96.810242 Acts 1 4 6 2 3 938 1785 39 32 96.810242 of5 1 4 6 2 4 999 1787 91 40 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1898 36 22 96.913971 as5 1 4 6 4 9 1557 1888 59 32 96.949821 thes 1 4 6 4 10 1629 1893 104 27 96.604126 terms5 1 4 6 4 11 1747 1888 223 33 96.384056 “commerce”4 1 4 6 5 0 660 1936 790 42 -1 5 1 4 6 5 1 660 1936 67 33 96.321526 ands 1 4 6 5 2 739 1936 106 32 21.195885 “wool5 1 4 6 5 3 855 1937 155 41 93.110870 product”5 1 4 6 5 4 1033 1948 57 21 96.393295 ares 1 4 6 5 5 1101 1937 132 32 96.654839 defined5 1 4 6 5 6 1243 1938 37 31 95.420647 in5 1 4 6 5 7 1290 1938 74 32 95.420647 said5 1 4 6 5 8 1373 1938 77 32 96.545685 Act.3 1 4 7 0 0 655 1984 1315 286 -1 4 1 4 7 1 0 700 1984 1265 47 -1 5 1 4 7 1 1 700 1984 82 33 95.690414 Par.5 1 4 7 1 2 807 1987 48 31 84.022835 18.5 1 4 7 1 3 879 1986 140 33 96.722885 Certain5 1 4 7 1 4 1043 1986 39 33 96.685806 of5 1 4 7 1 5 1105 1987 73 33 96.498222 said5 1 4 7 1 6 1202 1989 87 31 96.844681 wool5 1 4 7 1 7 1311 1987 164 42 96.244171 products5 1 4 7 1 8 1498 1999 86 22 93.302299 were5 1 4 7 1 9 1606 1988 218 33 91.713837 misbranded5 1 4 7 1 10 1846 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32 96.579445 thereunder5 1 4 9 4 2 871 2592 36 31 96.583191 in5 1 4 9 4 3 921 2593 77 32 96.760323 that5 1 4 9 4 4 1012 2592 184 43 96.350304 specimens5 1 4 9 4 5 1211 2605 39 21 96.792130 or5 1 4 9 4 6 1264 2596 144 40 96.449539 samples5 1 4 9 4 7 1422 2596 38 30 96.449539 of5 1 4 9 4 8 1476 2597 86 31 96.186760 wool5 1 4 9 4 9 1576 2596 163 42 96.673691 products5 1 4 9 4 10 1752 2597 112 32 96.849625 which5 1 4 9 4 11 1876 2608 88 22 96.531204 were4 1 4 9 5 0 652 2642 1312 47 -1 5 1 4 9 5 1 652 2642 81 32 96.824593 used5 1 4 9 5 2 754 2646 36 28 96.824593 to5 1 4 9 5 3 811 2646 153 37 96.400917 promotes 1 4 9 5 4 985 2653 37 22 96.753029 or5 1 4 9 5 5 1045 2644 98 32 96.477875 effects 1 4 9 5 6 1162 2644 85 33 96.477875 sales5 1 4 9 5 7 1268 2644 38 33 96.573776 of5 1 4 9 5 8 1327 2645 81 32 96.825592 such5 1 4 9 5 9 1428 2646 85 31 96.694633 wool5 1 4 9 5 10 1533 2647 162 40 96.248344 products5 1 4 9 5 11 1714 2647 37 32 96.833450 in5 1 4 9 5 12 1771 2659 193 30 96.492783 commerce,4 1 4 9 6 0 653 2692 1311 48 -1 5 1 4 9 6 1 653 2704 85 21 96.928017 were5 1 4 9 6 2 755 2697 62 28 96.768303 not5 1 4 9 6 3 833 2692 131 33 96.464851 labeled5 1 4 9 6 4 984 2704 38 21 96.563965 or5 1 4 9 6 5 1040 2695 141 32 96.563965 marked5 1 4 9 6 6 1200 2698 35 29 96.540398 to5 1 4 9 6 7 1254 2695 91 32 96.043610 shows 1 4 9 6 8 1363 2696 59 32 96.043610 thes 1 4 9 6 9 1438 2695 225 35 96.042465 information5 1 4 9 6 10 1681 2698 155 42 96.604744 required5 1 4 9 6 11 1855 2698 109 33 96.485802 under ELYSEE FABRICS, INC., ET AL. 621 616 Decision and Order Section 4(a) (2) of the Wool Products Labeling Act of 1939 and the Rules and Regulations thereunder, in violation of Rule 22 of the aforesaid Rules and Regulations.

Par. 15. The acts and practices of the respondents as set forth in paragraphs 12, 18 and 14 above, were, and are, in violation of the Wool Products Labeling Act of 1939 and the Rules and Regulations thereunder, and constituted, and now constitute unfair and deceptive acts and practices and unfair methods of competition in commerce, within the intent and meaning of the Federal Trade Commission Act. Decision AND ORDER The Commission having heretofore determined to issue its complaint charging the respondents named in the caption hereof with violation of the Federal Trade Commission Act, the Textile Fiber Products Identification Act and the Wool Products Labeling Act of 1939, 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 respondents of all the jurisdictional facts set forth in the complaint to issue herein, 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 such complaint, and waivers and provisions as required by the Commission’s rules; and The Commission, having considered the agreement, hereby accepts same, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent, Elysée Fabrics, Inc., is a corporation organized, 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, 152-20 Rockaway Boulevard, in the city of Jamaica, State of New York.

Respondent, Gunther F. Ziegler, is an officer of said corporation and his address is the same as that of said corporation. 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.

Decision and Order 61 F.T.C.

ORDER It is ordered, That respondents Elysée Fabrics, Inc., a corporation, and its officers, and Gunther F. Ziegler, individually and as an officer of the said corporation, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction, delivery for introduction, sale, adver. tising, or offering for sale, in commerce, or the transportation or causing to be transported in commerce, or the importation into the United States, of textile fiber products; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, of textile fiber products which have been advertised or offered for sale in commerce; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, after shipment in commerce, of textile fiber products, either in their original state or contained in other textile fiber products, as the terms “commerce” and “textile fiber product” are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from:

A. Misbranding textile fiber products by: 1. Falsely or deceptively stamping, tagging, labeling, invoicing, advertising or otherwise identifying such products as to the name or amount of constitutent fibers contained therein.

2. Falsely or deceptively stamping, tagging, labeling, invoicing, advertising or otherwise identifying such products by representing either directly or by implication, through the use of such terms as “linen weave”, and “silky”, or any other terms, that such products contain any fibers which are not present therein.

3. Failing to affix labels to such textile fiber products showing each element of information required to be disclosed by Section 4(b) of the Textile Fiber Products Identification Act.

4, Setting forth the generic name or fiber trademark of a fiber present in any of the aforesaid textile fiber products when the amount of such fiber is five per centum or less of the total fiber weight of such product.

5. Using a fiber trademark as a part of the required information on labels affixed to such textile fiber products without the required generic name of the fiber appearing on the said labels in immediate conjunction therewith and in type or lettering of equal size and conspicuousness. ‘616 ELYSEE FABRICS, INC., ET AL. 623 Decision and Order 6. Using a generic name or fiber trademark on any label, whether required or nonrequired, without making a full and complete fiber content disclosure in accordance with the Act and the Rules and Regulations promulgated thereunder, the first time such generic name or fiber trademark appears on the label.

7. Failing to affix labels showing the respective fiber content and other required information to samples, swatches and specimens of textile fiber products subject to the aforesaid Act which are used to promote or effect sales of such textile fiber products.

B. Falsely or deceptively advertising textile fiber products by: 1. Making any representation, by disclosure or by implication, as to the fiber content of any textile fiber product in any written advertisement which is used to aid, promote or assist, directly or indirectly, in the sale or offering for sale of such textile fiber product unless the same information required to be shown on the stamp, tag, label or other means of identification under Section 4(b) (1) and (2) of the Textile Fiber Products Identification Act is contained in the said advertisement, except that the percentages of the fibers present in the textile fiber product need not be stated. 2. Using any names, words, depictions, descriptive matter, or other symbols which connote or signify a fur-bearing animal, unless such products or parts thereof in connection with which the names, words, depictions, descriptive matter or other symbols are used, are furs or fur products within the meaning of the Fur Products Labeling Act, provided, however, where a textile fiber product contains the hair or fiber of a fur-bearing animal, the name of such animal, in conjunction with the word “fiber”, “hair”, or “blend”, may be used.

8. Setting forth the generic name of a fiber present in any of the aforesaid textile fiber products when the amount of such fiber is five per centum or less of the total fiber weight of such product.

4. Using a generic name of a fiber in advertising textile fiber products in such a manner as to be false, deceptive or misleading as to the fiber content or to indicate, directly or indirectly, that such textile fiber products are composed wholly or in part of such fiber when such is not the case. Syllabus 61 F.T.C.

5. Using nonrequired information and representations in such advertising in such a manner as to be false, deceptive or “misleading as to the fiber content of the textile fiber products or so as to interfere with, minimize or detract from required information.

It is further ordered, That respondents, Elysée Fabrics, Inc., a corporation, and its officers, and Gunther F. Ziegler, individually and as an officer of said corporation, and respondents’ representatives, agents, and employees, directly or through any corporate or other device, in connection with the introduction into commerce, or the offering for sale, sale, transportation, distribution, delivery for shipment or shipment, in commerce, of wool products as the terms “commerce”, and “wool product” are defined in the Wool Products Labeling Act of 1989, do forthwith cease and desist from misbranding such products by:

1. Failing to securely affix to or place on each product a stamp, tag, label or other means of identification showing in a clear and conspicuous manner each element of information required to be disclosed by Section 4(a) (2) of the Wool Products Labeling Act of 1939.

2. Failing to affix labels to samples, swatches or specimens of wool products used to promote or effect sales of wool products, showing each element of information required to be disclosed by Section 4(a) (2) of the Wool Products Labeling Act of 1939. It is 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 have complied with this order.