By-Products Inc.

Text (OCR of the scan at left; may contain errors)

IN THE "'fatter OF BY-PRODUCTS I , ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO'admission AND THE TEXTILE FIBER PRODUCTS IDENTIFICA TION ACTS Docket C-1131. Complaint, Oct. 1rJ, 1.66-Decision Oct. 19, 1966 Consent order requiring a Connerly Springs buyer and seller of floor coverings made from textile waste to cease misbranding and falsely guaranteeing the fiber content of its products. 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 By-Products Inc. , a corporation, and D. E. Tate, individual1Jy and as an offeer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the Rules and Regulations promulgated under 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 By-Products Inc. , is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of orth Carolina. BY-PRODUCTS INC.. ET AL. 1109 1108 Complajnt Respondent D. B. Tate is an offcer of the corporate respondent. He formulates, directs and controls the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. The respondents are engaged in the buying and selling of floor coverings made from textile waste. The respondents have their offce and principal( place of business at Connerly Springs Korth Carolina.

PAR. 2. Subsequent to the effective date of the Textile Fiber Products Identification Act on :'Iarch 3 , 1960, respondents have been and are now engaged in the introduction, delivery for introduction, sale, advertising, and offering fol' 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, textile 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 Textile Fiber Products Identification Act. PAR. 3. Certain of said textile fiber products were misbranded within the intent and meaning of Section 4 (a) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged labeled, invoiced, advertised, or otherwise identified as to the name or amount of constituent fibers contained therein.

Among such misbranded textile fiber products, but not limited thereto, were floor coverings with labels which: set forth the fiber content as 25/,0 Acrilan Acrylic, 25 Ii, ylon, 2570 Cotton 2570 Undetermined Fiber, Content Textie By Products whereas, in truth and in fact, said product contained substantially different fibers and amount of fibers. PAR. 4. Certain of said textile fiber products, were further misbranded in that they were not stamped, tagged, labeled or otherwise identified 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 textile fiber products, but not limited thereto, were textile fiber products with labels which failed: 1110 FEDERAL TRADE COMMISSIO!\ DECISIONS Dccision and Order 70 F. T. 1. To disclose the true generic names of the fibers present; and 2. To disclose the correct percentage of such fibers. PAR. 5. The respondents have furnished false guaranties that their textile fiber products were not misbranded or falsely invoiced in violation of Section 10 of the Textile Fiber Products Identification Act.

PAR. 6. The acts and practices of the 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 constitutes 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 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 said Acts, and having determined that complaint should issue stating its charges in that respect, hereby issues its complaint, accepts said agreement, makes the following jUlisdictional findings, and enters the following order: 1. Respondent By-Products Inc. , is a corporation organized existing and doing business under and by virtue of the laws of the State of North Carolina, with its offce and principal place of business located at Connelly Springs, North Carolina. Respondent D. B. Tate is an offcer of said corporation and his address is the same as that of said corporation. BY-PRODUCTS INC. , ET AL. 1111 1108 Decision and Order 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 By-Products Inc. , a corporation, and its offcers, and D. B. Tate, individually and as an offcer 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 textile fiber products; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, of any textile fiber products, which have 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 products, whether they are in their original state or contained in other textile fiber products, as the terms "commerce" and Htextile fiber product" are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from:

A. Misbranding fiber products by:

1. Falsely or deceptively stamping, tagging, labeling, invoicing, advertising or otherwise identifying such products as to the name or amount of constituent fibers contained therein.

2. Failng to affx labels to such textile fiber products showing in a clear, legible and conspicuous manner each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act.

B. Furnishing false guaranties that textile fiber products are not misbranded or falsely invoiced under the provisions 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. 1112 FEDERAL TRADE CO:\MISSION DECISIONS Complaint 70 F. T.