Preston Woolen Company, Inc.

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IN THE MATTER OF PRESTON WOOLEN COMPANY, INC., ET AL.

CONSENT ORDER , ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO:::1MlSSIOX AND THE WOOL PRODUCTS LABELING ACTS Docket 0-585. Complaint, Sept. 1963-Decisi on, Sept. 1965 Consent order requiring associated corporate manufacturers of wool products in Norwich, Conn., to cease violating the ool Products Labeling Act by labeling and invoicing certain fabrics falsely as to the amounts of woolen Rnd other fibers contained therein; failng to disclose the correct amount or woolen and other fibers present in fabrics; and failng to comply in other respects with requirements ot the Act. COMPLAINT Pursuant t.o the provisions of the Federal Trade Commission Act and t.he Wool Products Labeling Act of 1939, and by virtue of the aut.horit.y vest.ed in it by said Acts, t.he Federal Trade Commission having reason to believe that Preston 'Woolen Company., Inc., Norwhich Textile Co., Inc., corporations, and Aaron Furman, and Gershon Furman, individually and as offcers of said corporations, hereinafter referred to as respondents, have violated the provisions of the said Acts and t.he Rules and Regulations promulgated under t.he Wool Products Labeling Act of 1939, and it appearing t.o the Commission t.hat. a proceeding by it in respect thereof would be in t.he public interest., hereby issues its complaint stating it.s charges in t.hat. respect as follows:

PARAGRAPH 1. Respondents Preston Woolen Company, Inc., and K orwich Textie Co., Inc., are corporations organized, existing and doing business under and by virtue of t.he laws of t.he St.ate of Connecticut.

Individual respondents Aaron Furman and Gershon Furman are offcers of corporate respondents. Said individual respondents co- PRE:STO:\ WOOLEN COMPAl"Y, L1'C. , ET AL. 679 Bi8 Complaint policiesoperate in formulating, directing and controlling the acts, and practices of the corporate respondents including the acts and practices hereinafter referred to.

Respondents are manufacturers and distributors of wool products with their principal place of business located at K orwich, Connecticut. PAR. 2. Subsequent to the effective date of the ' Wool Products Labeling Act of 1939, respondents have manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment and offered for sale in commerce, as commerce" is defined in said Act, wool products as "wool product" is defined therein.

PAR. 3. Certain of said wool products were misbranded by the respondents within the intent and meaning of Section 4 (a) (1) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, in that they were falsely and deceptivcly stamped, tagged, labeled or otherwise identified with respect to the character and amount of the constituent fibers contained therein. Among such misbranded wool products, but not limited thereto, were certain fabrics stamped, tagged or labeled as containing designated amounts of woolen and other fibers, whereas, in truth and in fact, said fabrics contained different amounts of woolen and other fibers than represented.

PAR. 4. Certain of said wool products were further misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified as reuired under the provisions of Section 4(a) (2) of the VV 001 Products Labeling Act of 1939 and in the manner and form as prescribed by the Rules and Regulations promulgated under said Act.

Among such misbranded wool products, but not limited thereto were certain fabrics with labels on or affxed thereto which failed: (1) To disclose the correct amount of woolen fibers present in the wool product.

(2) To disclose the correct amount of fibers other than woolen fibers contained in the product.

PAR. 5. Certain of said wool products were misbranded in violation of the Wool Products Labeling Act of 1939 in that they woro not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects:

(a) Information required under Sec(jon 4(a) (2) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder was set forth in handwri(jng on labels, in violation of Rule 10 of said Rules aud Regulations. 680 FEDERAL TRADE CQJ\IMISSIOK DECISIONS Decision and Order 63 F.TC. (b) Information required under Section 4(a) (2) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder was set forth in abbreviated form on labels in violation of Rule 10 of said Rules and Regulations. 'R. 6. The nrts and practices of the respondents as set forth above were, and are in violation of the 'V 001 Products Labeling Act of 1939 and the Rules and Regulations promulgated 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. PAR. 7. Respondents in the course and conduct. of the.ir business as aforesaid, have made statements on invoices and shipping memoranda to their customers misrepresenting the fiber content of certain of their said products.

PAR. 8. The acts and practices set out in Paragraph 7 have had and now have the tendency and capacity to mislead and deceive the purchasers of said products as to the true content thereof and to cause them to misbrand products manufactured by them in which said materials were used.

PAR. 9. The acts and practices of the respondents sct out in Paragraph 7 were, and are, all to the prejudice and injury of the public and of respondents' competitors 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 and the 'W 001 Products Labeling Act of 1939 , and the respondents having been selTed 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 a.nd 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 !rot 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 rules; and PRE':TO)I WOOLEN CO:YPANY , INC. , ET AL. 681 678 Decision and Order The Commission, having considered the agreement, hereby accepts same, issues its complaint in the rorm contemplated by said agreement, makes the rollowing jurisdictional findings, and enrers the rollowing order:

1. Respondents Preston IV oolen Company, Inc., and N ormch Textile Co., Inc., are corporations organized, existing and doing busi ness under and by virtue or the laws or the State or Connecticut, with their offce and principal place or business located in the city or orwich, State or Connecticut.

Respondents Aaron Furman and Gershon Furman are offcers said corporations, and their address is the same as that of said cor porations.

2. The Federal Trade Commission has jurisdiction or the subject matter or this proceeding and or the respondents, and the proceeding is in the public interest.

ORDER I t is ordered That Preston ' W oolen Company, Inc., ~ orwich textile Co. , Inc., corporations, and their offcers and Aaron Furman and Gershon Furman, individually and as offcers or said corporations and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction or manufacture for int.production into commerce, or the offer ing ror sale, sale, transpOIf.ation, distribution or delivery ror shipment in c.commerce, of 'W0'01 fabrics or other wool products, as "commerce and " wool product" are defined in the W 001 Products Labeling Act or 1939, do rorthwith cease and desist rrom: Misbranding or such products by:

1. Falsely or deceptively stamping, tagging, labeling or otherwise identirying such products as to the character or amount or the constituent fibers contained therein. 2. Failing to securely affx to, or place on, each such product a stamp, tag, label or other means or identification showing in a dear and conspicuous manner each element or inrormation required to be disclosed by Section 4(a) (2) or the Wool Products Labeling Act of 1939. 3. Setting rorth inrormation required under Section 4(a) (2) 01 the Wool Products Labeling Act and the Rules and Regulations promulgated thereunder in abbreviated 10rm on labels affxed to wool products.

4. Setting forth information required under Section 4(a) (2) of the Wool Products Labeling Act or 1939 and 68:3 FEDERAL TRADE COMMISSION DECISIONS Complaint 63 P.

the Rules and Regulations promulgated thereunder in handwriting on labels affxed to wool products. It is further ordered That respondents Preston Woolen Company, Inc., Norwich Textile Co., Inc., corporations, and their offcers, and Aaron Furman, and Gershon Furman, individually and as offcers of said corporations, and respondents' representatives, agents, and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of fabrics or any other textile products in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting the character or amount of constituent fibers contained in fabrics or any other textile products on invoices or shipping memoranda applicable thereto or in any other manner. It is furthe/ oTCle1'ed That each of the respondents herein shall within sixty (60) days after service upon them of this order, file ",ith the Commission a report in ",writing setting forth in detail the manner and form in ",which they have complied with this order.