Town Talk Coat Co., Inc

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

In the Marrer OF.

TOWN TALK COAT CO., INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FED- ERAL TRADE COMMISSION AND THRE FLAMMABLE FABRICS ACTS Docket C-1910. Complaint, May 5, 1971—Decision, May 5, 1971. Consent order requiring a New York ‘City manufacturer and distributor of “wearing apparel, including: ladies’ coats, to cease violating the Flammable Fabrics’ Act by importing and selling any fabric. which fails to conform to the standards of said Act.

CompPlLAInT ‘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 Commis- ‘sion having reason to believe that Town Talk Coat Co., Inc., a corporation, and Gerald Becker, 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 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: Paracrapu 1. Respondent Town Talk Coat Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Respondent Gerald Becker Complaint 78 FTC.

js an officer of said corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporation. The respondents are engaged in the manufacture, sale and distribution of wearing apparel, including but not limited to ladies’ coats, with their office and principal place of business located aA 247 West 37th Street, New York, New York. Par. 2. Respondents are now and for some time last past have been engaged in the manufacture for sale, the sale or offering for sale, in commerce, and have introduced, delivered for introduction, transported and caused to be transported in commerce, and have sold or’delivered after sale or shipment in. commerce, products; and _ have been engaged in the manufacture for sale, sale and offering for sale of products made of fabrics or related materials which have been shipped and received in commerce, as “commerce,” “product” and “fabric” are defined in the Flammable Fabrics Act, as amended, which products and fabrics failed 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 mentioned hereinabove were ladies’ coats. Par. 3. The aforesaid acts and practices. of respondents were and are in violation of the Flammable Fabrics Act, as amended, and the Rules and Regulations promulgated thereunder, and as such constituted: and now constitute unfair methods of competition and unfair and deceptive acts and practices in commerce, within the intent and’imeaning of the Federal Trade Commission Act. - Deciston 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 Flammable Fabrics Act, as amended, 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 im 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 AU WYAY BLAAUR VUE UWUey AiNUry aud ie JUL 949 Decision and Order 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 executed consent agreement and placed such agreement on the public record for a period of thirty (380). days, now in further conformity with the procedure prescribed in §2.84(b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Town Talk Coat Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondent Gerald Becker is an officer of said corporation. He formulates, directs and controls the acts, practices and policies of said corporation.

Respondents are manufacturers of women’s and misses’ coats with their office and principal place of business located at 247 West 37th Street, New York, New York.

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 Town Talk Coat Co., Inc., a corporation, and its officers, and Gerald Becker, 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 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 and 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 any applicable standard or regulation continued in effect, issued or amended under the provisions of the aforesaid Act. Lt is further ordered, That respondents notify all of their customers who have purchased or to whom have been delivered the 470-536—73——_61 Decision and Order 78 F.T.C.

products which gave rise to this complaint of the flammable nature of such products, and affect 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 them of this order, file with the Commission a special report in writingssetting forth the respondents’ intentions as to compliance with this order. This special report shall also advise the Commission fully and specifically concerning (1) the identity of the products which gave rise to the complaint, (2) the number of said products in inventory, (3) any action taken and any further actions proposed to be taken to notify customers of the flammability of said products.and effect the recall of said products from customers, and of the results thereof, (4) any disposition of said products since January 16, 1970, and (5) any action taken or proposed to be taken to bring said products into conformance with the applicable standard of flammability under the Flammable Fabrics Act, as amended, or destroy said products, and the results of such action. Such report shall further inform the Commission as to whether or not respondents have in inventory any product, fabric, or related material having a plain surface and made of paper, silk, rayon and acetate, nylon and acetate, rayon, cotton or any other material or combinations thereof in a weight of two ounces or less per square. yard, or any product, fabric or related material having a raised fiber surface. Respondents shall submit samples of not less than one square yard in size of any such product, fabric, or related material with this report. , .

It is further ordered, That respondents notify the Commission. at Jeast 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. me 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 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. DANIEL WLENEK yuo Complaint