American Hospital Supply Corp

Text (OCR of the scan at left; may contain errors)

In tue Marrer or AMERICAN HOSPITAL SUPPLY CORPORATION TRADING AS CONVERTORS DIVISION CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACT Docket C-1829, Conplaint, Dee. 1, 1970—Decision, Dee. 1, 1970 Consent order requiring an Evanston, II., corporation which manufactures and distributes disposable hospital products to cease manufacturing and selling CONVERTORS DIVISION 1529 1528 Complaint certain items of wearing apparel, including nurses’ caps and infants’ shirts, which do not conform to the flammability standards under the Flammabie Fabries Act.

Complaint Pursuant to the provisions of the Federal Trade Commission Act and the Flammable Fabrics Act, as amended, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that American Hospital Supply Corporation, a corporation, trading as Convertors Division, hereinafter referred to as respondent, has violated the provisions of said Acts, and the Rules and Regulations promulgated under the Flammable Fabrics Act, as amended, 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 American Hospital Supply Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois. Respondent corporation trades as Convertors Division.

The respondent is engaged among other activities in the manufacture, sale and distribution of disposable hospital products, including but not limited to, wearing apparel. Among the items of wearing apparel manufactured, sold and distributed are nurses’ caps and infants’ shirts. The respondent’s principal office is located at 1740 Ridge Avenue, Evanston, Dlinois.

Par. 2. Respondent for some time last past has been engaged in the manufacture, sale and offering for sale, in commerce, and in the importation into the United States, and has introduced, delivered for introduction, transported and caused to be transported in commerce, and has sold or delivered after sale or shipment in commerce, products; and has manufactured for sale, sold, or offered for sale, products made of fabrics or related materials which have been shipped and received in commerce, as “commerce,” “product,” “fabric” and “related material” are defined in the Flammable Fabrics Act, as amended, which products, fabric and related materials fail to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the Flammable Fabrics Act, as amended.

Among such products were nurses’ caps and infants’ shirts. Par. 3. The aforesaid acts and practices of respondent were and are in violation of the Flammable Fabrics Act, as amended, and the Rules and Regulations promulgated thereunder, and as such constitute unfair methods of competition and unfair and deceptive acts Decision and Order TT FTC.

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 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 Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act and the Flammable Fabrics Act, as amended, and;

The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent 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 respondent 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 respondent had 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 §2.34(b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent American Hospital Supply Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the State of “Tilinois, The respondent corporation trades as Convertors Division.

Respondent is engaged among other activities in the manufacture, sale and distribution of disposable hospital products, including but not limited to, wearing apparel. Among the items of wearing apparel manufactured, sold and distributed are nurses’ caps and infants’ shirts. The respondent’s principal office is 1740 Ridge Avenue, Evanston, Tlinois.

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.

CONVERTORS DIVISION 1531 1528 : Decision and Order ORDER It is ordered, That’ the respondent American Hospital Supply Corporation, a corporation, trading as Convertors Division, and its officers, and respondent’s representatives, agents and employees, directly or through any corporate or other device, do forthwith cease and desist from manufacturing for sale, selling, offering for sale, in commerce, or importing into the United States, or introducing, delivering for introduction, transporting or causing to be transported in commerce, or selling or delivering after sale or shipment in com- “merce, any product, fabric or related material; or manufacturing for sale, selling, or offering for sale any product made of fabric or related material which has been shipped or received: in commerce, .as “commerce,” “product,” “fabric” and “related material” are defined in the Flammable Fabrics Act,'as amended, which product; fabric or related material fails to conform to an applicable standard or regulation continued in effect, issued or amended under. the provisions of ‘the aforesaid Act. .

It is further ordered, That respondent, if it shall not have done so heretofore, notify all of its customers who have purchased or to whom have been delivered the products which gave rise to this complaint of the flammable nature of such products, and effect recall of such products from said customers.

It is further ordered, That the respondent herein, if it shall not have done-so heretofore, either process the products which gave rise to the complaint so as to bring them within the applicable flammability standards of the Flammable Fabrics Act, as amended, or destr oy said products.

It is further ordered, That the respondent herein shall, within ten (10) days after service upon it of this order, file with the Commission an interim special report in writing setting forth the respondent’s intentions as to compliance with this order. This interim report shall also advise the Commission fully and specifically concerning the identity of the products which gave rise to the complaint, (1) the number of such products in inventory, (2) any action taken and any further actions proposed to be taken to notify customers of the flammability of such products and effect recall of such products from said customers, and of the results of such actions, (3) any. disposition of such products since January 1970, and (4) any action taken or proposed to be taken to flameproof or destroy such preducts and the results of such action. Such report shall further inform the ‘Commission whether respondent has in inventory any fabric, product or related material having a plain surface and made of paper, Order q7 FTA.

silk, rayon and acetate, nylon and acetate, rayon, cotton or combinations thereof in a weight of two ounces or Jess per square yard, of having a raised fiber surface made of cotton or rayon or combinations thereof. Respondent will submit samples of any such fabric, product or related material with this report. Samples of the fabric, product or related material shall be of no less than one square yard of material.

lt 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.

1t is further ordered, That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divi-sions.

lt ts further 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.