Allied-Kantor Textile & Notions, Inc.

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IN THE lVA TTER OF ALLIED-KANTOR TEXTILE & NOTIONS, INC., ET AL. CONSENT ORDER, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-1373. Comp/.aint, July 1968-Decision, July 12, 1968 Consent order requiring a New York City converter of wool products to cease misrepresenting the fiber content of its merchandise. COMPLAINT Pursuant to the provisions of the Federal Trade Commission 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 Alled-Kantor Textile & Notions, Inc. , a corporation, and Harry Rosenshein and Morris Kantor, individually and as offcers 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 as follows:

PARAGRAPH 1. Respondent Allied-Kantor Textile & Notions Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Kew York. Its offce and principal place of business is located at 535 Eighth A venue, New York, New York.

Individual respondents Harry Rosenshein, and Morris Kantor are offcers of said corporation. They formulate, direct and control the acts, practices and policies of said corporation. Their offce and principal place of business is the same as that of said corporation.

The respondents are converters of wool products which include, among other items, woolen interlinings. PAR. 2. Respondents, now and for some time last past, have introduced into commerce, sold, transported, distributed, delivered for shipment, shipped and offered for sale in commerce, as "commerce" is defined in said Wool Productc Labeling Act of 1939 wool products as "wool product" is defined therein. ALLIED-KANTOR TEXTILE & NOTIONS, INC., ET AL. 163 162 Complaint 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 herein.

Among such misbranded wool products, but not limited thereto were interlinings stamped, tagged, labeled, or otherwise identified hy respondents as 807'0 Reprocessed 20/,0 Other Fibers " 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 were certain wool products, namely, interlinings with labels on or affxed thereto, which failed to disclose the percentage of the total fiber weight of the said wool products, exclusive of ornamentation not exceeding 5 per centum of said 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 per centum or more; and (5) the aggregate of a1l other fibers.

PAR. 5. The acts and practices of the respondents as set forth above were, and are, in violation of the W ooj Products Labeling Act of 1939 and the Rules and Regulations promulgated thereunder, and constituted, and now constitute, unfair and deceptive acts and practices and unfair methods of competition 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 offering for sale, sale, and distribution of certain products, namely interlinings, to customers engaged in the manufacture and distribution of wearing apparel. In the course of their business, respondents now cause, and for some time last past have caused, their said products, when sold, to be shipped from their place of business in the State of N ew York to purchasers located in various States of the United States and maintain, and at all times mentioned herein, have main- Df:cision and Order 74 F. tained, a substantial course of trade in said products, in commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 7. Respondents in the course and conduct of their business as aforesaid, have made statements on invoices and shipping memoranda to their customers misrepresenting the character and fiber content of certain of their said products. Among such misrepresentations, but not limited thereto, were statements representing certain products to be composed of quilted 80/20 Wool " thereby representing the product to be composed of 80% Wool, 20% other fibers, whereas said products contained substantially different fibers and quantities of fibers than represented.

PAR. 8. The acts and practices set out in Paragraph Seven had and now have the tendency and capacity to mislead and deceive the purchasers of said products as to the true content thereof and to cause said purchasers to misbrand products, manufactured by them, in which said materials were used. PAR. 9. The acts and practices of the respondent set out in Paragraphs Seven and Eight were, and are, all to the prejudice and injury of the public and of respondents' competitors, and constituted, and now constitute, 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 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 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 ' n 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 ALLIED-KANTOR TEXTILE & NOTIONS, INC. , ET AL. 165 162 Order 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 confermity with the procedure prescribed in 9 2.34 (b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following . order:

1. Respondent Alled-Kantor Textile & Notions, 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 535 Eighth Avenue, New York, New York.

Respondents Harry Rosenshein and Morris Kantor are offcers of said corporation and their 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 Allied-Kantor Textile & Notions, Inc. , a corporation, and its offcers, and Harry Rosenshein and Morris Kantor, individually and as offcers of said corporation and respondents' representatives, agents and employees, directly or through any corporate or other device, in connection with 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 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 included 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.

), Complaint 74 F.

It is fu,.the,' ordered That respondents Allied-Kantor Textile & Notions, Inc., a corporation, and its offcers, and Harry Rosenshein and Morris Kantor, individually and as offcers of said corporation, and respondents' representatives, agents and employees directly or through any corporate or other device, in connection with the offering for sale, sale, or distribution of interlinings, or other products in commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting the character or amounts of constituent fibers contained in such products on invoices or shipping memoranda applicable thereto, or in any other manner. It is fUTtheT o?'dered That the respondent corporation forthwith distribute a copy of this Order to each of its operating divisions. It is furthe?' o?'de1'd 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 witi1 this order.