Culll'M'S, Inc.

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

IN THE :VIA TTER OF CULLL'M'S , INC.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION, THE FUR PRODUCTS LABELING AND THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS Docket C-14S8. COilploint, Oct. 196R-Vecision, Oct. , 1968 Consent or-der requiring an Augusta, Ga. , retail clothing firm to cease misbranding and falsely advertising its fur products, and textile fiber products and failing to keep required record.s. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, the Fur Products Labeling Act 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 Cullum, Inc. , a corporation, hereinafter referred to as respondent, has violated the provisions of said Acts and the Rules and Regulations promulgated under the Fur Products Label Act and the Textile Fiber Products Identification Act, and it appearing to the Commission that a proceeding by it respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows; PARAGRAPH 1. Respondent Cullum s, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia.

Respondent is a retailer of fm products and textile fiber products with its offce and principal place of business located at 710 Broad Street, Augusta, Georgia, PAR. 2, Respondent is now and for some time last past has been engaged in the introduction into commerce, and in the sale advertising, and offering for sale in commerce, and in the transportation and distribution in commerce, of fur products; and has sold, advertised, offered for sale, transported and distributed fur products which have been made in whole or in part of furs which have been shipped and received in commerce, as the terms commerce fur" and "fur product" are defined in the Fur Products Labeling Act.

PAR. 3. Certain of said fur products were misbranded in that they were not labeled as reqiured under the provisions of Section 4 (2) of the Fur Products Labeling Act and in the manner and form prescribed by the Rules and Regulations promulgated Complaint 74 F.

thereunder.

Among such misbranded fur products, but not limited thereto were fur products with labels which failed to show the true animal name of the fur used in any such fur product. PAR. 4. Certain of said fur products were misbranded in violation of the Fur Products Labeling Act in that they were not labeled in accordance with the Rules and Regulations promulgated thereunder in the following respects. (a) The term "natural" was not used on labels to describe fur products which were not pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Rule 19 (g) of said Rules and Regulations.

(b) Required item numbers were not set forth on labels, in violation of Rule 40 of said Rules and Regulations. PAR. 5. Certain of said fur products were falsely and deceptively advertised in violation of the Fur Products Labeling Act in that certain advertisements intended to aid, promote and assist, directly or indirectly, in the sale and offering for sale of such fur products were not in accordance with the provisions of Section 5 (a) of the said Act.

Among and included in the aforesaid advertisements but not limited thereto, were advertisements of respondent which appeared in issues of The Augusta Chroniele Herald, a newspaper published in the city of Augusta, State of Georgia and having a wide circulation in Georgia and in other States of the United States.

By means of the aforesaid advertisements and other advertisements of similar import and meaning not specifically referred to herein, respondent falsely and deceptively advertised fur products, in violation of Section 5 (a) (5) of the Fur Products Labeling Act and Rule 44 (a) of the Rules and Regulations promulgated thereunder by representing, directly or by implication that the prices of such fur products were reduced from respondent' s former prices and the amount of such purported reduction constituted savings to purchasers of respondent' s fur products. In truth and in fact, the alleged former prices were fictitious in that they were not actual, bona fide prices at which respondent offered the products to the public on a regular basis for a reasonably substantial period of time in the recent regular course of business and the said fur products were not reduced in price as represented and savings were not afforded purchasers of respondent' s said fur products, as represented. PAR. 6. In advertising fur products for sale, as aforesaid, CULLUM S INC. 1085 1083 Complaint respondent made pricing claims and representations of the types covered by subsections (a), (b), (c) and (d) of Rule 44 of the Regulations under the Fur Products Labeling Act. Respondent in making such claims and representations failed to maintain full and adequate recoi"ds disclosing the facts upon which such claims and representations were based, in violation of Rule 44 (e) of said Rules and Regulations.

PAR. 7. By means of the aforesaid advertisements and others of similar import and meaning not specifically referred to herein respondent falsely and deceptively advertised fur products in violation of the Fur Products Labeling Act in that the said fur products were not advertised in accordance with the Rules and Regulations promulgated thereunder inasmuch as the term natural" was not used to describe fur products which were not pointed, bleached, dyed, tip-dyed, or otherwise artifically colored in violation of Rule 19 (g) of said Rules and Regulations. PAR. 8. The aforesaid acts and practices of respondent, as set forth above, are in violation of the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder and constitute unfair methods of competition and unfair and deceptive acts and practices in commerce under the Federal Trade Commission Act.

PAR. 9. Respondent is now and for some time last past has been engaged in the introduction, delivery for introduction, sale advertising, and offering ror 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 has 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 has 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 Textie Fiber Products Identification Act.

PAR. 10. Certain of said textile fiber products were falsely and deceptively advertised in that respondent, in making disclosures or implications as to the fiber content of such textile fiber products in written advertisements used to aid, promote, and assist, directly or indirectly, in the sale or offering for sale of said products, failed to set forth the required information as to fiber content as specified in Section 4 (c) of the Textile Fiber 1086 FEDERAL TRADE COM),!SSION DECISIONS Complaint 74 F.

Products Identification Act and in the manner and form prescribed by the R,ules and Regulations promulgated under said Act.

Among such textie fiber products, but not limited thereto were textile fiber products which were falsely and deceptively advertised in The Augusta Chronicle Herald, a newspaper published in the city of Augusta, State of Georgia, and having a wide circulation in Georgia and various other States of the United States, in that the true generic names of the fibers present in such products were not set forth.

PAR. 11. By means of the aforesaid advertisements and others of similar import and meaning not specifically referred to herein, respondent falsely and deceptively advertised textile fiber products in violation of the Textile Fiber Products Identification Act in that said textile fiber products were not advertised in accordance with the Rules and Regulations in the following respects:

1. In disclosing the required fiber content information in advertising certain textile fiher products, namely floor coverings containing exempted backings, fillings, or pad dings, respondent failed to set forth that such disclosure related only to the face, pile, or outer surface of the floor covering and not to the exempted backing, fimng, or padding, in violation of Rule 11 of the Rules and Regulations promulgated under the Textile Fiber Products Identification Act, 2. Fiber trademarks were used in advertising textile fiber products without a full disclosure of the fiber content information required by the said Act, and the Rules and Regulations thereunder, in at least one instance in said advertisements violation of Rulc 41 (a) of the Rules and Regulations promulgated under the Textile Fiber Products Idcntification Act. 3. Fiber trademarks were used in advertising textie fiber products containing more than one fiber and such fiber trademarks did not appear in the required fiber content information in immediate proximity and conjunction with the generic names of the fibers to which the)' related in plainly legible type or lettering of equal size and conspicuousness, in violation of Rule 41 (b) of the Rules and Regulations promulgated under the Textile Fiber Products Identification Act.

PAR. 12. The acts and practices of the respondent as set forth in Paragraphs Ten and Eleven above were, and are, in violation of the Textie Fiber Products Identification Act and the Rules CULLUM INC. 1087 1083 Decision and Order and Regulations promulgated thereunder, and constituted, and now constitute, unfair methods of competition, and unfair and deceptive acts and practices in commerce under the Textie Fiber Products Identification Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent 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 respondent with violation of the Federal Trade Commission Act, the Fur Products Labeling Act and the Textie Fiber Products Identification Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent 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 respondent 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 respondent has violated the said Acts, and that complaint should issue stating its charges in that respect, and having thcreupon 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 Cullum, 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 710 Broad Street, Augusta, Georgia. .

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER It is ordered That respondent Cullum, Inc. , a corporation Order 74 F.

and its offcers, and respondent's representatives, agents and employees, directly or through any corporate or other device in connection with the introduction, into commerce, or the sale advertising or offering for sale in commerce, or the transportation or distribution in commerce, of any fur product; or in connection with the sale, advertising, offering for sale, transportation or distribution, of any fur product which is made in whole or in part of fur which has been shipped and received in commerce as the terms "commerce fur " and Hiur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. Misbranding any fur product by:

1. Failing to affx a label to such fur product showing in words and in figures plainly legible all of the information required to be disclosed by each of the subsections of Section 4 (2) of the Fur Products Labeling Act. 2. Failing to set forth the term "natural" as part of the information required to be disclosed on a label under the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe such fur product which is not pointed, bleached, dyed, tip-dyed or otherwise artificially colored.

3. Failing to set forth on a label the item number or mark assigned to such fur product.

B. Falsely or deceptively advertising any fur product through the use of any advertisement, representation, public announcement or notice which is intended to aid, promote or assist, directly or indirectly, in the sale, or offering for sale of any such fur product, and which: 1. Represents, directly or by implication, that any price, whether accompanied or not by descriptive terminology, is the respondent's former price of such fur product when such price is in excess of the price at which such fur product has been sold or offered for sale in good faith by the respondent in the recent regular course of business, or otherwise misrepresents the price at which any such fur product has been sold or offered for sale by respondent.

2. Falsely or deceptively represents that savings are afforded to the purchasers of any such fur product or misrepresents in any manner the amount of savings CULLUM' S INC. 1089 1083 Order afforded to the purchaser of such fur product. 3. Falsely or deceptively represents that the price of any such fur product is reduced.

4. Fails to set forth the term "natural" as part of the information required to be disclosed in advertisements under the Fur Products Labeling Act and the Rules and Regulations promulgated thereunder to describe such fur product which is not pointed, bleached, dyed, tip-dyed or otherwise artificially colored. C. Failing to maintain full and adequate records disclosing the facts upon which pricing claims and representations of the types described in subsections (a), (b), (c) and (d) of Rule 44 of the Rules and Regulations promulgated under the Fur Products Labeling Act are based. It is further orde1ed That respondent Cu11um s, Inc. , a corporation and its offcers, and respondent' s 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 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 falsely or deceptively advertising any textile fiber product by;

1. Making any representation, by disclosure or by implication, as to the fiber content of any textie fiber product in any written advertisement which is used to aid, promote, or assist, directly or indirectly, in the sale or offering for sale of such textie fiber product, unless the same information required to be shown on the stamp, tag, label, or other means of identification under Section 4 (b) (1) and (2) of the Textie Fiber Products Identification Act is contained in the said advertisement, except that the percentages of the Complaint 74 F.

fibers present in the textile fiber product need not be stated. 2. Failing to set forth, in disclosing the required fiber content information as to floor coverings containing exempted backings, fillings, or paddings, that such disclosure relates only to the face, pile or outer surface of the floor covering and not to the exempted backings, fillings, or paddings. 3. Using a fiber trademark in advertising such textile fiber product without a full disclosure of the required content information in at least one instance in said advertisement. 4. Using a fiber trademark in advertising such textile fiber product containing more than one fiber without such fiber trademark appearing in the required fiber content information in immediate proximity and conjunction with the generic name of the fiber in plainly legible type or lettering of equal size and conspicuousness, It is !w.ther ordered That the respondent corporation forthwith distribute a copy of this order to each of its operating divisions.

It is fUTtheT o1'dered That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the detail theCommission a report, in writing, setting forth in manner and form in which it has complied with this order,