H. Berman, Inc.

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IN THE MATTER OF H. BERMAN, 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-999. Complaint, Sept. 1965-Decision, Sept. 28, 1965 Consent order requiring Chicago, Ill, custom manufacturer-retailer of fur products to cease misbranding and falsely invoicing its fur products in violation of the Fur Products Labeling Act. COMPLAINT 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 H. Berman, Inc., a corporation, and Sara Berman, and Marvin Berman individually and as officers of said corporation, hereinafter referred to as respondents have vio- Jated 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:

PARAGRAPH 1. Respondent H. Berman, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Ilinois.

Individual respondents Sara Berman and Marvin Berman are officers of the corporate respondent and participate in the formulation, direction and control of the acts, policies and practices of the corporate respondent, including the acts and practices hereinafter referred to.

Respondents are custom manufacturer-retailers of fur products. Respondents' main office and place of business is at 7 West Madison Street, Chicago, Ilinois.

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 introduction into commerce, and in the manufacture for introduction into commerce, and in the sale, advertising, and offering for saJe in commerce, and in the transportation and distribution in commerce, of fur products; and have manufactured for saJe, 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 commerce, as the H. BERMAN INC. , ET AL. 557 556 Complaint 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 JabeJed 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 Regulations promulgated thereunder. Among such misbranded fur products, but not limited thereto were fur products with Jabels which failed: (1) To show the true animal name of the fur used in the fur product.

(2) To disclose that the fur used in the fur product was bleached, dyed, or otherwise artificially colored, when such was the fact- 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:

(1) The term "Broadtail Lamb" was not set forth on labels in the manner required by law, in violation of Rule 8 of said Rules and Regulations.

(2) Information required under Section 4(2) of the Fur Products Labeling Act was set forth in handwriting, in violation of Rulc 29(b) of said Rules and Regulations.

(3) Information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promultated thereunder was not set forth in the required sequence, in violation of Rule 30 of said Rules and Regulations. (4) Required item numbers were not set forth on Jabels, in violation of Rule 40 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 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 covered by invoiees which failed to show the true animal name of the fur 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 the following respects: (a) The term "Broadtail Lamb" was not set forth on invoices Decision and Order 68 F.

in the manner required by law in violation of Rule 8 or said Rules and Regulations.

(b) The term "Natural" was not used on invoices to describe the fur products which were not pointed, bleached, dyed, tip-dyed or otherwise artificially colored, in violation of Rule 19 (g) of said Rules and Regulations.

(c) Required item nUlnbers were not set forth on invoices, in violation of Rule 40 of said Rules and Regulations. PAR. 7. The aforesaid acts and practices of respondents, as herein alleged, are in violation of the fur Products Labeling Act and the Rules and Regulations promulgated 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 Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished therealter with a copy of a draft of complaint which the Bureau of Textiles and Furs proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act and the Fur Products Labeling Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an mission by the respondents of aJl the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by the respondents that the law has been violated as alleged in such complaint, and waivers and provisions as required by the Commission s rules; and The Commission, having reason to believe that the respondents have violated the Federal Trade Commission Act and the Fur Products Labeling Act, and having determined that complaint should issue stating its charges in that respect, hereby issues its complaint, accepts said agreement, makes the following jurisdictional findings and enters the following order: 1, Respondent H. Berman, Inc. , is a corporation organized existing and doing business under and by virtue of the Jaws of the State of Ilinois with its office and principal place of business located at 7 West Madison Street, Chicago, Ilinois. Respondents Sara Berman and Marvin Berman are officers H. BERMAN, INC. , ET AL. 559 556 Decision and Order said corporation and their 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.

ORDER It is ordered That respondents H. Berman, Inc., a corporation and its officers, and Sara Berman, and Marvin Berman, 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 com merce of any fur product; or in connection with the manufacture for sale, sale, advertising, offering for sale, transportation or disw tribution 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: A- Misbranding of such products by:

1. Failing to affix Jabels to fur products showing in words and in figures plainly legible all of the information required to be disclosed by each of the subsections of Section 4 (2) of the Fur Products Labeling Act. 2. Failng to set forth the term "Broadtail Lamb" on labels in the manner required where an election is made to use that term instead of the word "Lamb. 3- Setting forth information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder in handwriting on labels affixed to fur products.

4. Failing to set forth information required under Section 4 (2) of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder on labels in the sequence required by Rule 30 of the aforesaid Rules and Regulations.

5. Failing to set forth on labels the item number or mark assigned to a fur product.

B. Falsely or deceptivel invoieing 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 re- Complaint 68 F.

quired to be disclosed in each of the subsections of Section 5 (b) (1) of the Fur Products Labeling Act. 2. Failing to set forth the term "Broadtail Lamb" in the manner required where an election is made to use that term instead of the word "Lamb. 3. 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.

4. Failing to set forth on invoices the item number or mark assigned to fur products.

It is further ordered That the respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.