Hudson'S Department Store, Inc

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IN THE MATTER OF HUDSON' S DEPARTMENT STORE, INC.

CONSENT OlWER, ETC. , I"i REGARD TO THE ALLEGED VIOLATIO OF THE FEDERAL TRADE COMMISSION AKD THE FUR PRODUCTS LABELING ACTS , Nov. , 1969 Docket C-IC28. CO?flJlaint, No,,' 17, 1969-Decision Consent order reCJuiring an Anniston, Ala., department store to cease falsely advertising its fur products and failing to keep required records. COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act and the Fur Products Labeling Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission having reason to believe that Hudson s Department Store, 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 Labeling 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 Hudson s Department Store, Inc. , is a corporation organized, existing and doing business under and by virtue of the Jaws of the State of Alabama with its offce and principal place of business located at 1017 C\oble Street, Anniston, Alabama.

Respondent operates a department store and retails various commodities including fur products.

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 Ircommerce fur" and "fur product" are defined in the Fur Products Labeling Act.

PAR. 3. Certain of said fur products were falsely and deceptively advertised in violation of the Fur Products Labeling Act in HUDSON S DEPARTMENT STORE, INC. 623 622 Complaint 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 Anniston Star, a newspaper published in the city of Anniston, State of Alabama and having a wide circulation in Alabama and in other States of the United States. Among such false and deceptive advertisements, but not limited thereto, were advertisements which failed: 1. To show the true animal name of the animal or animals which produced the fur used in such fur products. 2. To show that the fur contained in the fur products was bleached, dyed, or otherwise artificially colored, when such was the fact.

3. To show the country of origin of imported furs contained in any such fur prodllct.

PAR. 4. By means of the aforesaid advertisements and others of similar import and meaning not specifi ally referred to herein respondent falsely and deceptively advertised fur products in that certain of said fur products were falsely or deceptively identified with respect to the name or designation of the animal or animals that produced the fur from which the said fur products had been manufactured, in violation of Section 5 (a) (5) of the Fur Products Labeling Act.

Also among such falsely and deceptively advertised fur products, but not limited thereto, were fur products advertised as Broadtail" thereby implying that the furs contained therein were entitled to the designation "Broadtail Lamb" when in truth and in fact the furs contained therein were not entitled to such designation.

PAR. 5. 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 artificially colored, in violation of Rule 19 (g) of the said Rules and Regulations. Complaint 76 F.

PAR. 6. 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 reductions 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' said fur products, as represented.

PAR. 7. In advertising fur products for sale, as aforesaid, 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 faUed to maintain full and adequate records disclosing the facts upon which such claims and representations were based, in violation of Rule 44(e) of said Rules and Regulations.

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 respondents with violation of the Federal Trade Commission Act and the Fur Products Labeling Act; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of an 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 vio- HUDSON S DEPARTMENT STORE, INC. 625 622 Decision and Order lated 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 Act, 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 fonowing order: 1. Respondent Hudson s Department Store, Inc. , is a corporation organized, existing and doing business under and by virtue of the laws of the State of Alabama with its offce and principal place of business located at 1017 Noble Street, Anniston, Alabama.

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 Hudson s Department Store 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 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 "fur product" are defined in the Fur Products Labeling Act, do forthwith cease and desist from:

A. 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. Fails to set forth in words and figures plainly legible al1 the information required to be disclosed by each Decision and Order 76 F.

of the subsections of Section 5(a) of the Fur Products Labeling Act.

2. 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, tipdyed, or otherwise artificially colored. 3. Falsely or deceptively identifies any fur product as to the name or designation of the animal or animals that produced the fur contained in the fur product. 4. 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 on a regular basis for a res on ably substantial period of time in the recent regular course of business, or otherwise misrepresents the price at which such fur product has been sold or offered for sale by respondent.

5. Falsely or deceptively represents that savings are afforded to the purchaser of any such fur product or misrepresents in any manner the an10unt of savings afforded to the purchaser of such fur product. 6. Falsely or deceptively represents that the price of any such fur product is reduced.

B. 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) Rule 44 of the Rules and Regulations promulgated under the Fur Products Labeling Act, are based.

It is further ordered That respondent notify the Commission at least 30 days prior to any proposed change in the corporate respondent such as dissolution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. It is further ordered That the respondent corporation shan forthwith distribute a copy of this order to each of its operating divisions.

HUDSON S DEPARTMENT STORE, INC. 627 622 Decision and Order It is fU1'the,. ordered That the respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report in writing setting forth in detail the manner and form in which it has complied with this order.