Quilted Textiles Corporation, Inc.

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IN THE MATTER OF QUILTED TEXTILES CORPORATION, INC., ET AL. CONSENT OHDEH, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION , THE WOOL PRODUCTS LABELING , AND THE TEXTILE FIBER PRODGCTS IDENTIFICATION ACTS Docket C-1218. Complaint, June 8, 196't'- Decision, June, 1967 Consent order requiring a Rossville, Ga., manufacturer of wool and textile produds, including quilted fabrics and batting, to cease misbranding and falsely guaranteeing its wool and textile fiber products, and failing to keep required records.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, the Wool Pmducts 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 Quilted Textiles Corporation, Inc., a corporation, and Glenn H. Plumlee, individually and as an offcer 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 Complaint 71 F.

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 Quilted Textiles Corporation, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia. Respondent Glenn H. Plumlee is an offcer of said corporate respondent. He controls the acts and practices of said corporate respondent.

Respondents are engaged in the manufacture and sale of wool and textile fiber products, including quilted fabrics and batting, with their offce and principal place of business located at McFarland Avenue, Rossville, Georgia.

PAR. 2. Respondents, now and for 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 "commerce" is defined in the Wool Products Labeling Act of 1939, wool products as "\vool product" is defined therein.

PAR. 8. 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, labcled, 01' otherwise identified with respect to the character and amount of the constituent fibers contained therein.

Among such misbranded wool products, but not Jimited thereto were quilted fabrics stamped, tagged, labeled, or otherwise identified by respondents as 70';+ Reprocessed Wool, 30% Man-Made Fibcrs, whereas in truth and in fact, said products contained substantially different fibers and amounts of fi\rrs other than represented.

PAR. 4. Certain of said wool products were further misbranded by respondents in that they were not stamped, labeled, tagged, 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 Jimited 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 wool product, exclusive of ornamentation not exceeding r' of the total QUILTED TEXTILES CORP. , INC. , ET AL. 805 803 Complaint fiber weight, of (1) wool; (2) reprocessed wool; (3) reused wool; (4) each fiber other than wool, when said percentage by weight of such fiber was 5% or more; and (5) the aggregate of all other fibers.

PAR. 5. Respondents have furnished false guaranties that their wool products were not misbranded in violation of Section 9 (b) of the Wool Products Labeling Act of 1939. PAR. 6. 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 methods of competition and unfair and deceptive acts and practices, in commerce within the meaning of the Federal Trade Commission Act. PAR. 7. Respondents are now, and for some time last past have been, engaged in the introduction, delivery for introduction, manufacture for introduction, sale, advertising, and offering for sale iii commerce, and in the transportation OJ' causing to be transported in commerce, and the importation 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, either in their original state or contained in other textile fiber products; as the terms "commerce" and 'I textile fiber product" are defined in the Textile Fiber Products Identification Act.

PAR. 8. Certain of said textie fiber products were rUlshranded by respondents within the intent and meaning of Section 4 (a) of the Textile Fiber Pl"ducts Identification Act and the Rules and Regulations promulgated thereunder in that they were falsely and deceptively stamped, tagged, labeled, invoiced, advertised ln" otherwise identified as to the name OJ' amount of the constituent fibers contained therein.

Among such misbranded textile fiber products, but not limited thereto, were quilted fabrics that were labeled as 50 % Acetate 50 ck' Other Fiber, whereas, in truth and in fact, such products contained substantially different fibers and amounts of fibers other than as represented.

PAR. 9. Certain of the textile fiber products were misbranded by respondents in that they were not stamped, tagged, labeled, or otherwise identified to show each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Dccision and Order 71 F.

Identification Act, and in thc manner and form prescribed by the Rules and Regulations promulgated under said Act. Among such misbranded textile fiber products, but not Jimited thereto, were quilted fabrics with labels which failed: (1) To disclose the true percentage of the fibers present by weight; and (2) To disclose the true generic names of the fibers present. PAR. 10. Respondents have failed to maintain proper records showing the fiber content of the textile fiber products manufactured by them, in violation of Section 6 of the Textile Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder.

PAR. 11. Respondents have furnished false guaranties that their textile fiber products were not misbranded in violation of Section 10 of the Textile Fiber Products Identification Act. PAR. 12. The acts and practices of respondents, as set forth Paragraphs Eight, i\ine, 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 and practices in commerce under the Federal Trade Commission Act.

DECISION A D 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 193 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 QUILTED TEXTILES CORP. , INC. , ET AL. 807 803 Order 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 Quilted Textiles Corporation, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia, with its offce and principal place of business located at McFarland Avenue, Rossvi1e, Georgia. Respondent Glenn H. Plumlee is an oflcer of said corporation and his 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 Quilted Textiles Corporation Inc. , a corporation, and its offcers, and Glenn I-I. Plumlee, 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, 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 otherwise identifying such products as to the character or amount of the constituent fibers contained therein. 2. Failing to securely affx to, OJ' place on, each such 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, It is furthe?' o?'dend That Quilted Textiles Corporation, Inc. and its offcers, and Glenn H. Plumlee, individually and as an officer of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device do forthwith cease and desist from furnishing a false guaranty that any wool product is not misbranded, under the Wool Products Labeling Act of 1939, and the Rules and Regulations promulgated thereunder, when there is reason to believe that any wool product so guaranteed may be introduced, sold, transported or distributed in commerce.

Order 71 F, I t is furthe,' ordered That respondents Quilted Textiles Corporation, Inc., a corporation, and its offcers, and Glenn H. Plumlee 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, 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 textie 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 fiber product" are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from:

A. Misbranding textile 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. Failing to affx a stamp, tag, label, or other means of identification 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. B. Failing to maintain and preserve proper records showing the fiber content of the textile fiber products manufactured by said respondents, as required by Section 6 of the Textile Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder.

It is further ordered That respondents Quilted Textiles Corporation, Inc. , a corporation, and its offcers, and Glenn H. Plumlee individually and as an offcer of said corporation, and respondents representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from furnishing a false guaranty that any textile fiber product is not misbranded or falsely invoiced under the provisions of the Textile Fiber Products Identification Act.

CORNET & MORGENSTERN , INC. , ET AL. 809 803 Complaint 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.