Mars Mfg. Co., Inc., of Asheville North Carolina

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In tre Marrer oF MARS MFG. CO., INC. OF ASHEVILLE, NORTH CAROLINA, ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF TIE FEDERAL TRADE COMMISSION AND TIIE FLAMMARLE FABRICS ACTS Docket C-1830. Complaint, Dec. 1, 1970—Decision, Dec. 1, 1970 Consent order requiring an Asheville. N.C., corporation which manufactures and distributes disposable hospital products to cease manufacturing and selling certain items of wearing apparel, including nurses’ caps and infants’ shirts, which do not conform to the flammability standards under the Flammable Fabrics Act.

ComPLaINntT 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 Mars Mfg. Co., Inc. of Asheville, North Carolina, a corporation, and Robert T. Bayer, individually MARS MFG. CO., INC., OF ASHEVILLE, NORTH CAROLINA ET AL. 1533 1532 Decision and Order 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 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: Paracraru 1. Respondent Mars Mfg. Co., Inc. of Asheville, North Carolina is a corporation organized, existing and doing business under and by virtue of the laws of the State of North Carolina, Respondent Robert. T. Bayer is an officer of said corporate. respondent. He formulates, directs and controls the acts, practices and policies of said corporate respondent.

Respondents are engaged in the manufacture, sale and distribution of disposable hospital products, including but not limited to, wear-ing apparel. Among the items of wearing apparel manufactured, sold and distributed are “nurses’ caps” and “infants’ shirts.” Respondents principal place of business is located at Asheville, North Carolina. Respondents mailing address is Post Office Box 6316. Par. 2. Respondents are now and for some time last past have been engaged in the manufacture, sale and offering for sale, in commerce, and in the importation into the United States, and have intreduced, delivered for introduction, transported and caused to be transported in commerce, and have sold or delivered after sale, or shipment in commerce, products and fabrics; and have 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, fabrics 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. Pan. 3. The aforesaid acts and practices of respondents were and are in violation of the Flammable Fabrics Act, as amended, and the tules and Regulations promulgated thereunder, and as such constitute unfair methods of competition and unfair and deceptive acts and practices in commerce, within the intent and meaning of the Federal Trade Commission Act.

DECISION AND OxpER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption 467-207—7183-—_98 Decision and Order: 77 FTC.

hereof, and the respondents having been furnished thereafter with a copy of a draft of comiplaint which the Bureau of Consumer Protection 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 Flammable Fabrics 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 has 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 § 2.34(b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Mars Mfg. Co., Inc. of Asheville, North Carolina, is a corporation organized, existing and doing business under and by virtue of the laws of the State of North Carolina. Respondent Robert T. Bayer is an officer of said corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporate respondent.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the procceding is in the public interest.

ORDER It is ordered, That the respondents Mars Mfg. Co., Ine. of Asheville, North Carolina, a corporation, and its officers, Robert T. Bayer, 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 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, MARS MFG. CO., INC., OF ASHEVILLE, NORTH CAROLINA, ET AL. 15385 1532 Decision and Order or selling or delivering after sale or shipment in commerce, 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 respondents notify all of their 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 respondents herein 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 destroy said products. It is further ordered, That the respondents 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 respondents’ 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 amount 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 recall of such products from said customers, and of the results of such actions, (3) any disposition of such products since April 1970, and (4) any action taken or proposed to be taken to flameproof or destroy such products and the results of such action. Such report shall further inform the Commission whether respondents have in inventory any fabric, product or related material having a plain surface and made of paper, silk, rayon and acetate, nylon and acetate, rayon, cotton or combinations thereof in a weight of two ounces or less per square yard, or having a raised fiber surface made of cotton or rayon or combinations thereof. Respondents 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 Jess than one square yard of material.

lt is further ordered, That the 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 Decision and Order TT E.T.C.

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. lt 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.