Capital City Quilting, Inc.

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

IN THE MATTER OF CAPITAL CITY QUILTING , INC., ET AL.

CONSENT ORDER, ETC. , I REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COM MISSION , THE WOOL PRODUCTS LABELING A:-D THE TEXTILE FIBER PRODCCTS IDENTIFICATION ACTS Docket C-1l99, Cumplrtint, April 2U, 1967-Decision, April 20, 1967 Consent order requiring two affliated manufacturers of quilted fabrics, batting, and other \\rool and textile articles .with headquarters in Magnolia Ark. , and Des ::aines, Iowa, to cease misbranding the fiber content of their wool and textile fiber products.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, the Wool Products Labeling Act of 1939 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 Capital City Quilting, Inc. , a corporation and Capital City Woolen Mills, Inc. , a corporation, and Jacob Ladin, individually and as an offcer of said corporations, sometimes 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 Capital City Quilting, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Arkansas. Its offce and principal place of business is located at Waldo Highway, Magnolia, Arkansas.

Complaint 71 F.

Respondent Capital City Woolen Mills, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Iowa. Its offce and principal place of business is located at 101 SW. Eighth Street, Des Moines, Iowa. Individuai respondent Jacob Ladin is an offcer of the said corporations. lie formulates, directs and controls the acts, practices and policies of the said corporations. His address is 101 SW. Eighth Street, Des Moines, Iowa.

Said respondents are eng&ged in the manufacture and sale wool and textile fiber products, including quilted fabrics and batting.

PAR. 2. Respondents, now and fa!' some time last past, have manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment shipped, and offered for sale, in commerce, as " COmn1€lce" is defined in the \\1001 Products Labeling Act of 1939 , \Vool 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 Rules and Regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, laueled, 01' otherwise identified with respect to the character and amount of the constituent fiber contained therein.

Among such misbranded wool products, but not limited thereto were quilted fabrics that were stamped, tagged, labeled, or otherwise identified by respondents as 90% Orion Acrylic, 10% Other Fibers, whereas i truth and in fact, said products contained woolen fibel' s together with substantially different fibers and amounts of fibers than represented.

PAR. 4. Certain of said wool products 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.

Among such misbranded wool products, but not limited thereto was a wool product with a label on or affxed thereto which failed to disclose the percentage of the total fiber weight of the said \vool product, exclusive of ornamentation not exceeding 5jl of the total fiber weight, of (1) wool; (2) reprocessed wool; (3) reused wool; (4) each TIber other than wool when said percentage CAPITAL CITY Q!:ILTING, INC. , E'l AL. 691 689 Complaint by weight of such fiber v,ras 5 it or 11101'e; and (5) the aggregate of all other fibers.

PAR. 5. The acts and practices of the respondents as set forth above were, and are, in violation of the \Vaal Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, and constituted, and no\v constitute, unfair methods of competibon and unfair and deceptive acts and practices, in commerce within the meaning of the Federal Trade Commission Act. PAR. 6. Respondents, for some time last past have been, and are now, engaged in the introdudion, 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 in the importation into the United States, of textile fiber products; and have sold, offered for sale advertised, delivered, transported and caused to be transported textie fiber products, which had been advertised or ofiered 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 textie fiber products; as the terms "commerce" and "textile fiber product" are defined in the; Textile Fiber Products Identification Act.

PAR. 7. Certain of said tcxtile fiber products were misbranded by respondents 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 of the constituent fibers contained therein.

Among such misbranded textile fiber products, but not limited thereto, were quilted fabrics that were labeled as 70 Orion Acrylic, 30% Other Fibers, and batting labeled as 100% Acetate whercas in truth and in fact such products contained substantially difierent fibers and amounts of fibers than represented. PAR. 8. Certain of the textile fiber products were misbranded by respondents in that they were noi stamped, tagged, labeled, or otherwise identified to shmv each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act, and in the manner and form prescribed by the Rules and Regulations promulgated under said Act. Among such misbranded textile fiber products, but not limited thereto, were quilting and batting with labels which failed; Decision and Order 71 F. (1) To disclose the true percentag-e of the fibers present by weight; and (2) To disclose the true generic name of the fibers present. PAR. 9. 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 methods of competition and unfair and deceptive acts and 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, the Wool Products Labeling Act of 1939 and the Textile Fiber Products Identiflcation 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 jurisdictional findings, and enters the following order: 1. Respondent Capital City Quilting, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Arkansas, with its offce and principal place of business located at \Valdo Highway, :Vlagnolia, Arkansas. Respondent Capital City Woolen :\iills, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Iowa, with its offce and principal place of business located at 101 SW. Eightb Street, Des Moines, Iowa. Respondent J aeob Ladin is an offcer of said corporations and his address is 101 SW. Eighth Street, Des :lJoines, Iowa. CAPITAL CITY QCILTING, I , ET AL. 693 689 Order 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding a.nd of the respondents, and the proceeding is in the public interest.

ORDER It is orde,' That respondents Capital City Quilting, Inc. a corporation, and its offcers, and Capital City Woolen Mills Inc., a corporation, and its offcers, and J aeab Ladin, individually and as an offcer of said corporations, 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, delivery for shipment or shipment, in commerce, of wool products, as "commerce " and wool product" are defined in the Wool Products Labeling Act of 1939, do forthwith cease and desist from misbranding such products by:

1. Falsely and deceptively stamping, tagging, labeling, or othenvise identifying such products as to the character or amount of the constituent fibers contained therein. 2. Failing to securely affx to, or place on, each such product a stamp, tag, label, or other means of identification showing in a clear and conspicuous manner each element information required to be disclosed by Section 4 (a) (2) of the Wool Products Labeling Act of 1939.

It is tUTthe;' ordered That respondents Capital City Quilting, Inc. , a corporation, and its offcers, and Capital City Woolen Mills, Inc. , a corporation, and its offcers, and .Jacob Ladin, individually and as an offcer of said corporations, 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, either in its original state or contained in other textile fiber products, as the terms "com- 694 FEDERAL TRADE COMMISSIO:- DECISIONS Complaint 71 F.

merce" and "textile fiber product" are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from misbranding textie fiber products by;

1. Falsely or deceptively stamping, tagging, labeling, invoicing, advertising, or otherwise identifying such products as to the name or an10unt of constituent fibers contained therein.

2. Failing to affx a stamp, tag, label, or other means of identiflcation to each such product 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.

It is tUTther ordered That the responde 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.