Philip Morris Originals, LTD.

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IN THE MATTER OF PHILIP MORRIS ORIGINALS, LTD., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION , THE WOOL PRODUCTS LABELING AND THE TEXTILE FIBER PRODUCTS IDE:-TIFICA TION ACTS Docket C-1112. Compla,int, Sept. 966-Decision, Sept. , 1916 Consent order requiring a New York City manufacturer of men s slacks to cease misbranding and falsely guaranteeing its wool and textile fiber products.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, tbe Wool Products Labeling Act of 1939 , and the Textile Complaint 70 F. T.

Fiber Products Identification Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, baving reason to believe that Philip Morris Originals, Ltd. , a corporation, Saul Devorkin, individually and as an offcer of said corporation, and Philip Morris Devorkin, individually and as manager 9nd principal stockholder of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under the Wool Products Labeling Act of 1939 and the Textile 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 Philip Morris Originals, Ltd. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Its offce and principal place of business is located at 19 West 36th Street, New York N ew York. Said corporate respondent manufactures and sells men s slacks composed of woolen and synthetic fibers, and blends thereof.

Individual respondent Saul Devorkin is an offcer, and Philip Morris Devorkin is manager and principal stockholder of the said corporation and they formulate, direct and control the acts, practices and policies of the said corporation. Their offce and principal place of business is the same as that of said corporation. 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, shipped, 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 deceptively stamped, tagged, labeled or otherwise identified with respect to the cbaracter and amount of the constituent fibers contained therein.

Among such misbranded wool products, but not limited thereto were men s slacks stamped, tagged, labeled, or otherwise identified by respondents as 551" Dacron 45'10 Wool " whereas in truth and in fact, said products contained substantially different fibers and amounts of fibers than represented. PHILIP MORRIS ORIGINALS, LTD., ET AL. 695 693 Complaint PAR, 4. Certain of said wool products were further 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 deceptively stamped, tagged, labeled or otherwise identified as to their country of origin. Among such misbranded wool products, but not limited thereto were men s slacks stamped, tagged, labeled, or otherwise identified, with such terms as "Creazione ItaJiane" and "DEL' ORSO di Rota " thereby representing that such slacks were of Italian origin, whereas in truth and in fact such products were not of Italian origin.

PAR. 5. 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 deceptively stamped, tagged, labeled or otherwise identified, as to their method of manufacture.

Among such misbranded wool products, but not limited thereto were men s slacks stamped, tagged, labeled, or otherwise identified, with such terms as "Hand Needled " thereby representing or implying that such slacks were substantially hand-sewn whereas in truth and in fact such products were not substantially hand-sewn.

PAR, 6. Certain of said wool products were further 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 deceptively stamped, tagged, labeled or otherwise identified, as to their construction Or composition. Among such misbranded wool products, but not limited thereto were men s slacks stamped, tagged, labeled, or otherwise identified, with such terms as " genuine Raeford 2180' 2 Ply-80' quality, " thereby representing or implying that such slacks were of two-ply construction or composition, whereas in truth and in fact, such slacks were not of two-ply construction or composition. PAR. 7. Certain of said wool pl' oducts were further misbranded by respondents in that they were not stamped, tagged, labeled, or otherwise identified as required under the provisions of Section 4(a) (2) of the Wool Products Labeling Act of 1939 and in the manner and form as prescribed by the Rules and Regulations promulgated under said Act.

Complaint 70 F.

Among such misbranded wool products, but not limited thereto were wool products with labels on or affxed thereto which failed to disclose tbe percentage of the total fiber weight of tbe said wool product, exclusive of ornamentation not exceeding 5% of the total fiber weight, of (1) wool; (2) reprocessed wool; (3) reused wool; (4) each fiber other than wool present in the wool product when said percentage by weight of such fiber was 5 % or more; and (5) the aggregate of all other fibers. PAR. 8. Certain of said wool products were misbranded in violation of the Wool Products Labeling Act of 1939 in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in that the respective common generic names of fibers present in such wool products were not used in naming such fibers in the required information, in violation of Rule 8 of said Rules and Regulations.

PAR. 9. The acts and practices of the respondents as set forth above were and are in violation of the Wool 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. 10. Subsequent to the effective date of the Textile Fiber Products Identification Act on March 3 , 1960, respondents have been and are no\v engaged in the introduction, delivery for introduction, manufacture for introduction, sale, advertising, and offering for sale, in commerce, and in the transportation or causing to be transported in commerce, and the impodation into the United States, of textile fiber products; and have sold, offered for sale, advertised, delivered, transported and caused to be transported, textile fiber products, which had 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 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. 11. The respondents furnished false guaranties that certain of their textile fiber products were not misbranded or falsely invoiced, in violation of Section 10 (b) of the Textile Fiber Products Identification Act.

PAR. 12. The acts and practices of respondents, as set forth in PHILIP MORRIS ORIGINALS, LTD., ET AL. 697 693 Decision and Order Paragraphs Ten and Eleven above were, and are, in violation of the Textie Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, and constituted, and now constitute unfair methods of competition and unfair and deceptive acts or practices, in commerce, under the Federal Trade Commission Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investig' tion 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 whicb the Bureau of Textiles and Furs proposed to present to the Commission for its consideration and "vhieh, if issued by the Commh3sion, would charge respondents with violation of the Federal Trade Commission Act, the Wool Products Labeling Act of 1939 and the Textilc Fiber Products Identification Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, and admission by the respondents of all the jurisdictional fads 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 t.he 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 said Acts, and havjng- determined that complaint should issue stating its charges ih that respect. hereby issues its complaint, accepts said agreement, mal-:€s the following jurisdictional findings, and enters the following order: 1, Respondent Philip Monis Originals, Ltd" is a corporation organized, existing and doing business under and by virtue of the bws of the State of New York, with its offce and principal piace of business located at 19 West 36th Street, New York, :\ew York. Respondent Saul Devorkin is an offcer and Philip Morris Devorkin is managel' and principal stockholder of the said corporation. Their office and principal place of business is the same as that of said corporation.

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

Decision and Order 70 F.

ORDER It is ordered That respondents Philip MOl'is Originals, Ltd., a corporation, and its offcers, and Saul Devorkin, individually and as an offcer of said corporation, and Philip Morris Devorkin, individually and as manager and principal stockholder 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 offering for sale, sale, transportation, distribution or delivery for shipment or shipment in commerce, of men slaeks composed in whole 01' in part of wool, or other wool products, as "commerce" and "wool product" are defined in the \VooJ Products Labeling Act of 1939, do forthwith cease and desist from misbranding wool products by:

A. Falsely or ueceptively stamping, tagging, labeling, or otherwise identifying any such wool product as to the character or amount of constituent fibers included therein. B. Falsely or deceptively stamping, tagging, labeling, or otherwise identifying- any such wool product as to the country of origin of such wool product.

C. Setting forth on labels affxed to any such wool product such terms as "Creazione Italiane" and "DEL' ORSO di ROMA " or any words, terms, depictions, 01' symbols of simi- Jar import, connoting Italian origin when such wool product is not of Italian origin.

D. Falsely or deceptively stamping, tagging, labeling, or otherwise identifying any such wool product as to the method of manufacture of such wool product. E. Setting forth on labels affxed to any such wool product such terms as "Hand Needled " or any words, terms, depictions, or symbols of similar import, connoting the product to be substantially hand-sewn, when such wool product is not substantially hand-sewn or hand stitched. F. Falsely or deceptively stamping, tagging, labeling or otherwise identifying any such wool product as to the construction or composition of such wool product. G. Setting forth on labels affxed to any such product such terms as "genuine Raeford 2/80's 2 Ply-80' s quality, " or any words, terms, depictions, or symbols of similar import PHILIP MORRIS ORIGINALS, LTD., ET AL. 699 693 Decision and Order connoting two-ply construction or composition, when such wool product is not of a two-ply construction or composition. H. Failing to securely affx to, or place on, each such wool 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.

1. Failing to set forth the common generic name of fibers in naming such fibers in the required information on stamps tags, labels, or other means of identification attached to wool products.

It is ordered That respondents Philip Morris Originals, Ltd., a corporation, and its offcers, and Saul Devorkin, individuany and as an offcer of said corporation, and Philip Morris Devorkin, individuany and as manager and principal stockholder 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, manufacture 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 Htextile fiber product" are defined in the Textie Fiber Products Identification Act, do forthwith cease and desist from furnishing a false guaranty that any textile fiber product is not misbranded or falsely invoiced. It is fU1'ther Q1'dered That the respondents herein shan, 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.