Wendy Coat Co., Inc.

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IN THE MATTER m' WENDY COAT CO., INC., ET AL.

CONSEKT ORDER, ETC. , I:- REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PROD\;CTS LABELING ACTS Docket C-1265. Complaint. , Nov. 1967'- Decision, Nov. 3, 1.967 Consent order requiring a Xew York City manufacturer of ladies ' coats to cease misbranding jts wool products.

WENDY COAT CO. , INC., ET AL. 825 824 Complaint COMPLAINT Pursuant to the provisions of the Federal Trade Commissioi: Act and the Wool Products Labeling Act of 1939, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Wendy Coat Co. , Inc., a corporation, and Myles Rose, 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 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 Wendy Coat Co. , Inc. , 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 266 West 37th Street, Kew York, New York.

Individual respondent :lyles Rose is an offcer of said corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporate respondent, including those complained of herein. His offce and principal place of business is the same as that of the corporate respondent. Said respondents manufacture and distribute wool products among which are ladies' coats.

PAR. 2. Kow and for some time last past, 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 the Wool Products Labeling Act of 1939, 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 Rules and Regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, or otherwise identified with respect to the character and amount of the constituent fibers contained therein.

Among such misbranded wool products, but not limited thereto were women s coats stamped, tagged, labeled, or otherwise identified by respondents to show that the shells or outer portions thereof were composed of "70 % reprocessed wool, 15 '70 fur fibers 15 '70 nylon " whereas in truth and in fact, said shells or outer Decision and Order 72 F. T. portjons contained 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 were wool products with labels on or affxed thereto, which failed to disclose the percentages of the total fiber weight of the said wool products, exclusive of ornamentation not exceeding 5ro the total 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. Certain of said wool products were misbranded by respondents 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 the following respects: A. Samples, swatches or specimens of wool products used to promote or effect sales of such wool products in commerce, were not labeled or marked to show the information required under Section 4 (a) (2) of the Wool Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, in violation of Rule 22 of the aforesaid Rules and Regulations. B. The fiber content of linings, composed of pile fabrics or of fabrics incorporated into woolen garments or articles of wearing apparel for warmth, was not set forth separately and distinctly in the stamp, tag, label, or other mark of identification of such wool products, in violation of Rule 24 of the aforesaid Rules and Regulations.

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 intent and meaning of 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 WENDY COAT CO., INC., ET AL. 827 824 Decision and Order 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 whi, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939; 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 respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission s Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said Acts, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in 34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Wendy Coat Co. , Inc. , 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 located at 266 West 37th Street, Xew York New York. Respondent Myles Rose is an offcer 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 Wendy Coat Co. , Inc. , a corporation, and its offcers, and Myles Rose, 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 ladies' woolen coats, or other wool products, as , , 828 FEDERAL TRADE COMMISSIO!\ DECISIONS Syllabus 72 F.

commerce" and "wool product" are defined in the Wool Products Labeling Act of 1939, do forthwith cease and desist from: A. 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, or 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.

3. Failing to affx labels or other markings to samples swatches and specimens of wool products used to promote or effect sales of such wool products in commerce showing in words and figures plainly legible all of thc information required to be disclosed by each of the subsections of Section 4 (a) (2) of the Wool Products Labeling Act of 1939.

4. Failing to set forth the fiber content of linings composed of pile fabrics or of fabrics incorporated into woolen garments or articles of wearing apparel for warmth, separately and distinctly, in the stamp, tag, label, or other mark of identification of such wool products.

It is fUTthe1' 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.