Gaiety Sportswear, Inc

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IN TIm MATTER OF GAIETY SPORTSWEAR INC. ET AI, CONSENT ORDgR, ETC. , IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAI TRADE COMMISSION AND Tile TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS DQcket C-1513. Complaint, Apr. , 1.969-lJecision, Apr. , 1969 Consent order requiring a New York City manufacturer of ladies' apparel to cease misbranding its textile fiber products and failing to maintain requin records.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission 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 Gaiety Sportswear, Inc., a corporaUon, and Eugene Zachary, individually and as an offcer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the fills Lomplamt Rules and Regulations promulgated under the Textile Fiber Products Identification Act, and it now 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 Gaiety Sportswear, 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 130-29 180th Street, Queens, New York.

Individual respondent Eugene Zachary is an offcer of said corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporate respondent, including the acts and practices hereinafter referred to. The offce and principal place of business of said individual respondent is 130- 180th Street, Queens, New York.

Respondents are engaged in the manufacture and sale of ladies' apparel.

PAR. 2. Respondents are now, and for some Ume last past have been, engaged in the 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 textile fiber products; as the terms "commerce" and "textile fiber product" are defined in the Textile Fiber Products Identification Act.

PAR. 3. Certain of said textile fiber products were 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 thereunder, in that they were falsely and deceptively stamped, tagged, labeled, invoiced advertised, or otherwise identified as to the name or amount of the constituent fibers contained therein. Among such misbranded textile fiber products, but not limited thereto, were textile fiber products (fabric) with labels which set forth the fiber content as 6470 Acetate 2970 Cotton 770 Rub- Decision and Order 75 F.T.C.

ber whereas, in truth and in fact, the said fabric contained substantially different fibers and amounts of fibers than represented.

Par. 4. Certain of such textile fiber products were further 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 Textile Fiber Products Identification Act, and in the manner and form prescribed by the Rules and Regulations promulgated under said Act.

Among such misbranded textile fiber products, but not limited thereto, were textile fiber products with labels which failed: 1. To disclose the true generic names of the fibers present; and 2. To disclose the true percentage of such fibers. Par. 5. 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. 6. The acts and practices of the 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 and deceptive acts and practices, and unfair methods of competition 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 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 ;10 Decision and Urder loes not constitute an admission by respondents that the law has been violated as aHeged 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 fonowing jurisdictional findings, and enters the fonowing order:

1. Respondent Gaiety Sportswear, 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 130-29 180th Street, Queens, New York.

Respondent Eugene Zachary is an offcer of Raid corporation and his 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 respondent Gaiety Sportswear, Inc., a corporation, and its offcers, and Eugene Zachary, individuany and as an offcer of :mid 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 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: Complaint 75 F.

A. Misbranding textile fiber products by: 1. Falsely or deceptively stamping, tagging, labeling, invoicing, advertising or otherwise identifying such products as to the name of amount of the constituent fibers contained therein.

2. Failing to affx a stamp, tag, lahel or other means of identification to each such product 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. B. Failing to maintain and preserve for at least three years proper records showing the fiber content of textie fiber products manufactured by them, as required by Section 6(a) of the Textile Fiber Products Identification Act and Rule 39 of the Regulations promulgated thereunder. It is further ordered That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions.

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 complied with this order.