Modern Juniors, Inc.

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IN THE :vA TTER OF MODERN JUNIORS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO Tile ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSI01' , THE WOOL PRODUCTS LABELING, AND THE TEXTILE FIBER PRODUCTS JDENTIFICA TION ACTS Docket C-127.". Complaint Nov. 1,967-Decision, Nov. 28, 1967 Consent order requiring a New York City women s wear manufacturer to cease misbranding its wool and textile fiber products and furnishing its customers false guaranties. COMPLAI1'T Pursuant to the provisions of the Federal Trade Commission Act, the Wool Products Labeling Act of 1939 and the Textie 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 Modern Juniors, Inc., a corporation, and Wiliam Paul, 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 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 Modern Juniors, 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 1407 Broadway, New York, New York. Individual respondent William Paul is an offcer of said corporation. He formulates, directs and controls the acts, practices and policies of the said corporation. His offce and principal place of business is the same as that of said corporation. The respondents manufacture and sell, among other items. ladies' wear composed in whole or in part of woolen materials. PAR. 2. Respondents now, and for some time last past, have manufactured for introduction into commerce, introduced into Complaint 72 F.

commerce, sold, transported, distributed, delivered for shipment shipped and offered for sale in commerce, as "commerce" is defined in said 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 the 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 bench warmers stamped, tagged, labeled, or otherwise identified by respondents as 85Y, Wool 15ft, Other " whereas in truth and in fact, such products contained substantially different fibers and amounts of fibers than as 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, viz. a bench warmer, with no label, and another, also a bench warmer, 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 5% of 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 5j, or more; and (5) the aggregate of an other fibers.

PAR. 5. Respondents furnished false guaranties by falsely representing that they had a continuing guaranty on file with the Federal Trade Commission, in violation of Rule 33 (d) of the aforesaid Rules and Regulations and 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 or practices, in commerce. within the intent and meaning of the Federal Trade Commission Act.

MODERN JUNIORS, INC., ET AL. 891 889 Decision and Order PAR. 7. Respondents 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 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, textile fiber products, which have been advertised or offered for sale in commerce; and have sold, offered for sale, advertised, deUvered, 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. 8. Certain of said textile fiber products were misbranded by respondents in that they were not stamped, tagged, labeled, or otherwise identified as required under the provisions of Section 4 (b) of the Textie Fiber Products Identification Act and Regulations promulgated under said Act.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products with labels which failed to disclose the true generic names of the fibers present. PAR. 9. Certain of said textile fiber products were misbranded in violation of the Textile Fiber Products Identification Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in that an parts of the required information were not conspicuously and separately set out on the same side of the label in such a manner as to be clearly legible and readily accessible to the prospective purchaser, in violation of Rule 16(b) of the aforesaid Rules and Regulations. PAR. 10. 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 or 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 Texties and Furs proposed to present to the Commission for its con- Decision and Order 72 F.

sideration 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 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 aJ1 the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settement purposes only and does not constitute an admission by respondents that the law has been violated as aJ1eged 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 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 S 2. 34 (b) of its Rules the Commission hereby issues its complaint, makes the foJ1owing jurisdictional findings, and enters the following order; 1. Respondent Modern Juniors, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of N ew York, with its offce and principal place of business located at 1407 Broadway, New York, New York. Respondent William Paul 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 subj ect matter of this proceeding and of the respondents, ano the proceeding is in the public interest.

ORDER It is ordel'ed That respondents Modern Juniors, Inc. . a corporation, and its offcers, and WiJ1iam Paul. individually and as an offcer of said corporation, and respondents' representatives agent and employees, directly or through any corporate or other device in connection with the manufacture for introduction into commerce, the 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 oesist from misbranding such products by: MODERN JUNIORS, INC., ET AL. 893 889 Decision and Order 1. Falsely or deceptively stamping, tagging, labeling, or otherwise identifying such products as to the character or amount of constituent fibers included therein. 2. Failng 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.

It is further ordered That respondents Modern Juniors, Inc., a corporation, and its offcers, and William Paul, 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 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 such wool product so guaranteed may be introduced, sold, transported or distributed in commerce.

It is further ordered That respondents Modern Juniors, Inc., a corporation, and its offcers, and wiliam Paul, 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 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 textie 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 misbranding textie fiber products by: 1. Failing to affx labels to such products showing each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act. 2. Failing to set forth all parts of the required information conspicuously and separately on the same side of the label in such a manner as to be clearly legible and readily accessible to the prospective purchaser.

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894 FEDERAL TRADE COM MISSION DECISIONS Complaint 72 F.

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 compiled with this order.