Rosen Wool Stock Company

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In Toe Matrer or ROSEN WOOL STOCK COMPANY, ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-1717. Complaint, Mar. 26, 1970—Decision, Mar. 26, 1970 Consent order requiring a Philadelphia, Pa., manufacturer of wool products including garnetted fiber stock to cease misbranding and falsely guaranteeing its woolen merchandise.

ComMPLAINT 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 Rosen Wool Stock Company, a corporation, and Martin Rosen, individually and as an officer 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 in that respect as follows:

_Paracrarn 1. Respondent Rosen Wool Stock Company is a corporation organized, existing and doing business under and by virtue of the laws of the Commonwealth of Pennsylvania. Individual respondent Martin Rosen is an officer of said corporation. He formulates, directs and controls the acts, practices and policies of said corporation, including the acts and practices hereinafter referred to.

Respondents are engaged in the manufacture and sale of wool products including, but not limited to, garnetted fiber stock. Their ROSEN WOOL STOCK CO., ET AL. 331 330 Complaint office and principal place of business is located at 610 North Ameri- -can Street, Philadelphia, Pennsylvania.

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 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 therein. Among such misbranded wool products, but not limited thereto, ‘were wool products, namely garnetted fiber stock, stamped, tagged, labeled, or otherwise identified as containing 70 percent Polyester, 30 percent Wool, whereas in truth and in fact, such garnetted fiber stock contained substantially different amounts and types 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 garnetted fiber stock, with labels on or affixed thereto which failed to disclose the percentage of the total fiber weight of the wool product, 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. Respondents have furnished false guaranties that their wool products were not misbranded in violation of Section 9(b) of the Wool Products Labeling Act.

Par. 6. The acts and practices of the respondents as set. forth above 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 and deceptive acts and practices and unfair methods of competition in commerce, within the intent and meaning of the Federal Trade Commission Act. Order TT E.T.C.

DeEcIsION 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 Commision, 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 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 exe- ‘cuted 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 § 2.34(b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Rosen Wool Stock Company is a corporation organized, existing and doing business under and by virtue of the laws of the Commonwealth of Pennsylvania. , Respondent Martin Rosen is an officer of said corporation. He formulates, directs, and controls the acts, practices and policies of said corporation.

Respondents are engaged in the manufacture and sale of wool products including, but not limited to, garnetted fiber stock. Their office and principal place of business is located at 610 North American Street, Philadelphia, Pennsylvania.

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 Rosen Wool Stock Company, a corporation, and its officers, and Martin Rosen, individually and as ROSEN WOOL STOCK CU., Hl AL. O00:

330 Order an officer of said corporation, and respondents’ representatives,. agents and employees, directly or through any corporate or other device, in connection with the introduction, or manufacture for intro-. duction, 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 the constituent fibers contained therein. 9, Failing to securely affix 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 Rosen Wool Stock Company,, a corporation, and its officers, and Martin Rosen, individually and as. an officer of said corporation, and respondents’ representatives, agents. and employees, directly or through any corporate or other device, do forthwith cease and desist from furnishing a false guaranty that any wool product is not misbranded, under the Wool Products Labeling Act of 1939, and the Rules and Regulations promulgated thereunder when there is reason to believe that any such wool product so guaranteed may be introduced, sold, transported or distributed in commerce.

It is further ordered, That respondents 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 subsidaries or any other change in the corporation which may affect compliance obligation arising out of the order.

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. 467-207—73.

we oo Complaint 77 E.T.C.