Kaplan-Simon Co.

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IN THE MATTER OF KAPLAN-SIMON CO. TRADING AS TAFFETA CO. OF AMERICA ET AL. CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION, THE WOOL PRODUCTS LABELING AND THE TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS Docket C-1458. Complaint, l\/ov. 1968-Decision, Nov. , 1968 Consent order requiring a Boston, Mass. , jobber of interlining fabrics to cease misbranding its wool and textile fiber products. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, the Wool Products Labeling Act of 1939 and the Textie Complaint 74 F.

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 Kaplan- Simon Co. a corporation, trading as Taffeta Co. of America, and George Kaplan, 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 Kaplan- Simon Co. is a corporation organized, existing and doing business under and by virtue of the laws of the Commonwealth of Massachusetts. Respondent Kaplan- Simon Co. trades, among others, under the name of Taffeta Co. of America with its offce and principal place of business located at 65-75 Kneeland Street, Boston, Massachusetts. Respondent George Kaplan is an offcer of said corporation. He formulates, directs and controls the policies, acts and practices of said corporation and his address is the same as that of the corporate respondent.

Respondents are engaged in the jobbing to the garment industry of trimmings, threads and related sundries and are also converters and jobbers of interfacings, linings and quilted interlining fabrics.

PAR. 2. Respondents now, and for some time last past, 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 quiled interlining fabrics, stamped, tagged, labeled, or otherwise identified by respondents as "70 % Acrylic Orion " and 30% Other Fibers " whereas in truth and in fact, said products contained woolen fibers together with substantially different fibers TAFFETA CO. OF AMERICA ET AL. 1251 1249 Complaint and amounts of fiber 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, namely fabric, 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 all other fibers. PAR. 5. The acts and practices of the respondents as set forth above in Paragraphs Three and Four 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 meaning of the Federal Trade Commission Act.

PAR. 6. Respondents are now and for some time last past have been engaged in thc 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 delivered, transported and caused to be transported, after shipment in commerce, textile fiber products, either in their original state or contained in other fiber products; as the terms "commerce" and "textile fiber product" are defined in the Textile Fiber Products Identification Act.

PAR. 7. Certain of the textie fiber products were misbranded by respondents in that they were not stamped, tagged, labeled or otherwise identified to show each element of information required to be disclosed by Section 4 (b) of the Textie Fiber Products Identification Act, and in the manner and form prescribed by the Rules and Regulations promulgated under said Act.

Decision and Order 74 F.

Among such misbranded textile fiber products, but not limited thereto, were lining fabrics without labels. PAR. 8. Tbe acts and practices of respondents, as set forth in Paragraph Seven 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 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, 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 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 Kaplan- Simon Co. is a corporation organized existing and doing business under and by virtue of the laws of the Commonwealth of Massachusetts, with its offce and principal place of business located at 65-75 Kneeland Street, Boston Massachusetts. Said firm trades as Taffeta Co. of America. Respondent George Kaplan is an offcer of said corporation and his address is the same as that of said corporation. TAFFETA CO. OF AMERICA ET AL. 1253 1249 Decision and Order 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 Kaplan- Simon Co. a corporation, trading as Taffeta Co. of America or under any other name and its offcers, and George Kaplan, 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, manufacture for 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 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. It is further ordered That respondents Kaplan- Simon Co. a corporation, trading as Taffeta Co. of America or under any other name, and its offcers, and George Kaplan, 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, manufacture for introduction, sale, advertising, or offering for sale 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 misbrand- Complaint 74 F.

ing textile fiber products by failing to affx labels to such textile fiber products showing in a clear, legible and conspicuous manner each element of information required to be disclosed by Section 4 (b) of the Textile Fiber Products Identification Act. It is further orde," That the respondent corporation shall forthwith distribute a copy of this Order to each of its operating divisions.

It is further o,'dend 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.