Klein & Stern Furs, Inc.

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In the MATTER oF KLEIN & STERN FURS, INC., ET Al.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FUR PRODUCTS LABELING ACTS Docket C-862. Complaint, Dee. 8, 1964—Decision, Dee. &, L964 Consent order requiring a manufacturing furrier in New York City to cease violating the Fur Products Labeling Act by falsely invoicing certain of its fur products as “natural” when they were bleached, dyed or artificially colored; misrepresenting in writing that they had a continuing guaranty on file with the Federal Trade Commission; and failing to comply in other respects with invoicing requirements.

ComPLaINnt Pursuant to the provisions of the Federal Trade Commision 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. Klein & Stern Furs, Inc., 2 corporation, and Sol Mem and Nicholas Stern, individually and as officers of said corporation, 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:

Paracrapy 1. Respondent Klein & Stern Furs, Inc.,is a coxpovation, Complaint 66 F.T.C.

organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondents Sol Klein and Nicholas Stern are officers of the corporate respondent and formulate, direct and control the acts, practices and policies of the said corporate respondent including those hereinatter set forth. ;

Respondents are manufacturers of fur products with their office and principal place of business located at 214 West 29th Street, New York, New York.

Par. 2. Subsequent to the effective date of the Fur Products Labeling Act on August 9, 1952, respondents have been and are now engaged in the intreduction into commerce, and in the manufacture for 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 manufactured for sale. sold, advertised, offered for sale, transported and distributed fur products which have been made in whole or in part of furs which have been shipped and received in cominerce 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 invoiced in that said fur products were invoiced to show that the fur contamed therein was natural, when in fact such fur was pointed, bleached, dyed, tip-dyed or otherwise artificially colored, in violation of Section 5(b) (2) of the Fur Products Labeling Act. Par. 4. Certain of said fur products were falsely and deceptively invoiced by the respondents in that they were not invoiced as required by Section 5(b) (1) of the Fur Products Labeling Act. and the Rules and Regulations promulgated under such Act. Among such falsely and deceptively invoiced fur products, but not limited thereto, were fur products which failed to disclose that the fur contained in the fur products was bleached, dyed or otherwise artificially colored when such was the fact. Par. 5, 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 the following respects: (a) Information required under Section 5(b) (1) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder was set forth on invoices in abbreviated form, in violation of Rule 4 of said Rules and Regulations.

(b) The term “Natural” was not used on invoices to describe fur KLEIN & STERN FURS, INC., ET AL. 1265 1263 Decision and Order products which were not. pointed, bleached, dyed, tip-dyed or otherwise artificially colored, in violation of Rule 19(g) of said Rules and Regulations.

(¢) Required item numbers were not set forth on invoices, in violation of Rule 40 of said Rules and Regulations. Par. 6. Respondents furnished false guaranties uncer Section 10(b) of the Fur Products Labeling Act with respect to certain of their fur products by falsely representing in writing that respondents had a continuing guaranty on file with the Federal Trade Commission when respondents in furnishing such guaranties nad reason to believe that the fur products so falsely. guarantied would be introduced, sold, transported and distributed in commerce, in violation of Rule $$(c) of said Rules and Regulations under the Fur Products Labeling Act and Section 10(b) of said Act. Decision AND Orper 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 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 respondents of ail 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 Jaw 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 game, issues its complaint in the form contemplated by said agreement, makes the following jurisdictional findings, and enters the following order:

1. Respondent Klein & Stern Furs, 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 214 West 29th. Street. New York. New York. Respondents Sol Klein and Nicholas Stern ave officers of the corporate respondent and their address is the same as that of the corporate respondent.

Decision and Order 66 F.T.C.

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.

ORDER It is ordered, That respondents Nein & Stern Furs, Inc.. a corporation and its officers and Sol Klein and Nicholas Stern, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or through any corporate or other device, in connection with the introduction, or manufacture for introduction, into commerce, or the sale, advertising or offering for sale in commerce, or the transportation or distribution in commerce, of any fur product; or in connection with the manufacture for sale, 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 the terms “commerce,” “fur” and “fur product” are defined in the Fur Products Labeling Act, do forthwith cease and desist from falsely or deceptively invoicing fur products by:

1. Failing to furnish invoices as the term “invoice” is defined in the Fur Products Labeling Act showing in words and figures plainly legible all the information required to be disclosed in each of the subsections of Section 5(b) (1) of the Fur Products Tabeling Act.

2, Representing directly or by implication on invoices that the fur contained in fur products is natural when such fur is pointed, bleached, dyed, tip-dyed, or otherwise artificially colored. 3. 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. 4. Failing to set forth the term “Natural” as part of the information required to be disclosed on invoices under the Fur Products Labeling Act and Rules and Regulations promulgated thereunder to describe fur products which are not pointed, bleached, dyed, tip-dyed or otherwise artificially colored. 5. Failing to set forth on invoices the item number or mark assigned to fur products.

It is further ordered, That Kein & Stern Furs, Inc., a corporation and its officers and Sol Klein and Nicholas Stern, individually and as officers of said corporation and respondents’ representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from furnishing a false guaranty that any ADF WAREHOUSE, INC., ET AL. 1267 1263 Complaint fur product is not misbranded, falsely invoiced or falsely advertised when the respondents have reason to believe that such fur product may be introduced, sold, transported, or distributed in commerce. Lt 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.