Carpet Yarn Mills, Inc., et al.

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

IN THE ~IA TTER OF CARPET YARN ~fills, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COl\.fli,HSSION, THE WOOL PRODUCTS LABELING AND THE TEXTILE Filler PRODUCTS IDENTIFICATION ACTS Docket C-1305. Complaint, Mar. 4, 1965-Decision, Mar. 4, 1968 Consent order requiring a Dallas, Ga" spinning mill to cease misbranding its wool and textile fiber products and failing to maintain proper fiber content records.

COMPLAINT Pursuant to the provisions of the Federal Trade Comnlission Act the Wool Products Labeling Aet of 1939 and the Textile Fiber Produets Identification Act, and by virtue of the authority vested in it by . said Acts, the Federal Trade Commission, having reason to be.lieve that Carpet Yarn l\iills, Inc., a corporation, and Lee B.,"\Vome.lsclorf, Ivan A. l\1illender and Sam Millender, individually and as officers of said corporation, hereinafter referred to as respondents, have violated the provisions 'of said Acts and the Rules and Regulations promulgated under the 1V 001 Products Labeling Act of 1939 and the Textile Fiber Products Identification Aet, 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 Carpet Yarn l\iills, Inc., is a corporation organized, existing alld doing business under and by virtue of the laws of the State of Georgia.

Individual respondents Lee B. "\Vomelsdorf, I van A. l\1illender and Sam l\1illender are president, vice president and secretary treasurer said firm. They formulate, cured and control the acts, practices and policies of said corporation, including the acts and practices hereinafter referred to.

Respondents are engaged in the spinning of wool and textile produets into carpet yarns. Said respondents ate located at Dallas, Georgia. Proposed respondents' mailing address is Post Office Box 247, Dallas Georgia.

PAR. 2. Respondents, now and for some time last past, have manufactured for introduction into commerce, introduced into eommeree sold, transported, distributed, delivered for shipment, shipped and offered for sale" in commerce, as "conllnerce" is defined in the 1V 001 , Complaint 73 F.

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 "'\V 001 Products Labeling Aet 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, eonstituent fibers contained therein. Among such misbranded wool products, but not limited thereto, was earpet yarn stamped, tagged, labeled, or otherwise identified as eontaining 113 "'\Vool, 1/3 Nylon 113 Aerylic, whereas in truth and in fact such yarn contained substantially different fibers and amounts of fibers than represented.

'l.R. 4. Certain of said "Wool products were further misbranded by respondents in that they were not stamped, tagged, labeled, or othetwise identified as required under the provisions of Seetion 4(a) (2) of the "'\V 001 Products Labeling Aet of 1939 and in the manner and form as pre,scribed by the Rules and Regulations promulgated under said Aet.

Among such misbranded wool products, but not limited thereto, were certain "' 001 products namely earpet yarn without labels and with labels on or affixed thereto which failed to disclose the percentage of the total fiber "eight of the wool products, exclusive of ornamentation not exceeding 5 per centum of said total fiber weight, of (1) wool; (2) reprocessed "001; (3) reused wool; (4) each fiber other than wool, when such percentage by weight of such fiber was 5 percentage or more; and (5) the aggregflte of all other fibers.

\n. 5. The acts and practices of the respondents as set forth above were, and are, in violation of the "'\V 001 Products Labeling Aet 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. PAR. 6. Respondents are now, and for some time last past have been engaged in the introduction, delivery for introduction, manufacture for introduction, sale, adyertisinp:, and offering for sale, in commerce and in the transportation or crtUsing 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, transporteel 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 transporteel, after CARPET YARN MILLS , Iij"c., ET AL. 465 463 Decision and Order 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-r product" are defined in the Textile Fiber Products Identification Act.

PAR. 7. Certain of said textile fiber products "ere misbranded by the respondents within the intent and meaning of Section 4 (a) of the Textile Fiber Products Identification Act and the Rules and Regulations promulgated therelUlder, in that they were falsely and deceptively stamped, tagged, labeled, invoiced, advertised, or other"ise identified as to the name or amount of the constituent fibers contained therein. Among such misbranded textile fiber products, but not limited thereto, "ere textile fiber products which were labeled to show the content as 100% Nylon whereas in truth and in fact, said products contained substantially different fibers and amounts of fibers than as represented.

PAR. 8. Certain of said textile fiber products were further misbi"anded in that ,they were not stamped, tagged, labeled or otherwise identified as required under the provisions of Seetion 4 (b) of the Textile Fiber Pro duets Identification Aet, 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 theretQ, were textile fiber products with labels which failed: 1. To disclose the true generic names of the fibers present; and 2. To disclosethe percentage of such fibers by weight. PAR. 9. Respondents have failed to maintain proper records showing the fiber content of the textile fiber products manufactured by them, in violation of Section 6 (a) of the Textile Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder. PAR. 10. The acts and practices of the respondents as set forth above in Paragraphs Seven, Eight, and Nine 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 AND ORDER The Federal Trade Commission having initiated an investigation certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with copy of a draft of complaint which the Bureau of Textiles and Furs proposed to present to the Commission for its consideration and ,,-which 466 FEDERAL TRADE CONJ:1\lission DECISIONS Order 73 :B' if issued by the Conllnission, would charge respondents with violation of the Federal Trade Comlnission Act, the ",Vool 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 or 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 eonformity with the proeedure prescribed in ~ 2.34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Carpet Y arn ~nlls, Ine., is a corporation organized existing and doing business under and by virtue or the laws of the State of Georgia, with its office and principal place of business located at Dallas, Georgia. Respondent' s mailing addre,ss is Post Office Box 247, Dallas, Georgia.

Respondents Lee B. "IV omelsdorf, Ivan A. l\fillender and Sam ~1illender are officers of said corporation and their address is the same as that of said corporation.

2. The Federal Trade Commission has jurisdiction of the subject ma tter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER t is 0'lde1' That respondents Carpet Yarn l\Iills, Inc., a corporation, and its officers, and Lee B. 'Vomelsdorf, Ivan A. l\Tillender and Sam :Millender, individually and as officers 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 eommeree, or the offering for sale sale, transportation, distribution, delivery for shipment or shipment in conllneree, of ,,001 products, as "eommeree" and "wool product" CARPET YARN MILLS, INC., ET AL. 467 463 Order are defined in the vVool Products Labeling Act of 1939, do forthwith cease and desist from misbranding such products by 1. Falsely or deceptively stamping, tagging, labeling, or otherwise identifying such products as to the character or amount of constituent fibers contained therein.

2. Failing to securely affix to, or place on each such product a stamp, tag, label, or other means of iclentifieation showing in a eIear and conspicious manner each element of information required to be disclosed by Section 4 (a) (2) of the ",V 001 Products Labeling Act of 1939.

It is f1trthe'J' ordej' That respondents Carpet Yarn l\lil1s, Ine., a corporation, and its officers, and Lee B. ,Vomelsdorf, Ivan A. l\fillender and Sam l\fillender, individually and as officers of said corporation, and respondents' representatives, agents and employees, directly or through any corporate or other device, in c.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 COm111erce, or the importation into the United States of any textile fiber products; 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 CO111merce of any textile fiber product, whether in its original state or conta.ined 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. l\fisbranding 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 the constituent fibers contained therein.

2. Failing to affix a stamp, ta.g, label or other means of identifieation to each such product showing in a eIear, legible and conspicuous manner each e.1ement of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act.

B. Failing to maintain and preserve proper reeords showing the fiber content of textile fiber products manufactured by them as required by Section 6 (a) of the Textile Fiber Products Iden- Complaint 73 F.

tifieation Aet and Rule 39 of the Regulations promulgated thereunder.

t is further ordered That the respondents herein shall, within sixty (60) days after serviee upon thenl 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.