Colorama Textile Corporation

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IN THE MATTER OF COLORAMA TEXTILE CORPORATION ET AL.

CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDRAL TRADE COMMISSION AND THE TEXTILE FIBER PRODUCTS IDENTIF,JA TION ACTS Docket C-l102. Complaint, Aug. 25, 1966' Decision, Aug. , 1966 Consent order requiring a New York City converter of piece goods to cease misbranding various fabrics which it markets in violation of the Textile Fiber Products Identification Act.

COLORAMA TEXTILE CORP. ET AL. 547 546 Complaint COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Textile Fiber Products Identification Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Colorama Textile Corporation, and Alan N. London and Frank Dickstein, individually and as offcers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and Rules and Regulations promulgated under the Textie Fiber Products Identification 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 Colorama Textie Corporation, is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Individual respondents Alan N. London and Frank Dickstein are offcers of the corporate respondent, and they 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 converters of piece goods. Eighty-five percent of the fabrics handled are cottons. The balance consists of rayon and other fabrics.

The respondents have their offce and principal place of business at 461 Park Avenue South, New York City, New York. PAR. 2. Subsequent to the effective date of the Textie Fiber Products Identification Act on March 3, 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 or causing to be transported in commerce and in the importation into the United States, of textie fiber products, and have sold, offered for sale, advertised, delivered transported and caused to be transported, textie fiber products which have been advertised or 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 Textie Fiber Products Identification Act.

PAR. 3. Certain of said textie fiber products were misbranded Decision and Order 70 F. T. by respondents in that they were not stamped, tagged, or labeled 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 Act.

Among such misbranded textie fiber products; but not limited thereto, were fabrics with labels which failed, (a) To disclose the true generic names of the fibers present; and (b) To disclose the true percentage of the fibers present by weight; and (c) To disclose the name of the country from which such tex- We fiber products were imported.

PAR. 4. The acts and practices of respondents, as set forth above were, and are, in violation of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, and constituted, and now constitute unfair and deceptive acts or practices, in commerce, 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 thereafter 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 Textile Fiber Products Identification Act; 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 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 said Acts, and having determined that complaint should issue stating its charges in that respect, hereby is- COLORAMA TEXTILE CORP. ET AL. 549 546 Decision and Order sues its complaint, accepts said agreement, makes the following jurisdictional findings, and enters the following order: 1. Respondent Colorama Textile Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business Jocated at 461 Park Avenue South, New York City, New York.

Respondents Alan N. London and Frank Dickstein are offcers of said corporate respondent and their address is the same as that of said corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subj ect matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents CoJorama Textile Corporation a corporation, and its offcers, and Alan N. London and Frank Dickstein, individually and as offcers of 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, advertising, or offering for sale, in commerce, or the transportation or causing to be transported in commerce, or the importation into the United States, of any textile fiber product; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, of any textile fiber product which has 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 any textile fiber product, whether in its original state or contained in other textile fiber products, as the terms "commerce" and "textile flber product" are defined in the Textie Fiber Products Identification Act do forthwith cease and desist from misbranding textie fiber products by failing to affx a stamp, tag, label or other means of identification to each such product showing each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act.

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. Complaint 70 F.