Osage Handkerchief Co., Inc

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

In Tar Matter OF OSAGE HANDKERCHIEF CO., INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket O-1983. Complaint, May 18, 1971—Decision, May 18, 1971 Consent order requiring a New York City importer and distributor of textile fiber products, including ladies’ scarves, to cease violating the Flammable Fabrics Act by importing and selling any fabric which fails to conform with the standards of said 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 Osage Handkerchief Co., Inc., a corporation, and Edward Debowsky, 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:

ParacrapH 1. Respondent Osage Handkerchief Co., Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Its office and principal place of business is located at 40 West 37th Street, New York, New York.

Respondent Edward Debowsky is an officer of the corporate re- spondent. He formulates, directs and controls the acts, practices and policies of the said corporate respondent including those hereinafter set forth.

‘Respondents are engaged in the importation, sale and distribution of textile fiber products, including, but not limited to, ladies’ scarves. Par. 2. Respondents are now and for some time last past have been engaged in the sale and offering for sale, in commerce, and the importation ‘into the United States, 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, as the terms “commerce,” and “product” are defined’ in the Flammable Fabrics Act, as amended, which fail to conform: ee aVUY 1092 ; Decision and Order.

to an applicable standard.or regulation continued in effect, issued or amended under the provisions of the Flammable Fabrics Act, as amended. to Among such products mentioned hereinabove were ladies’ scarves. 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 constituted, and now 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 anp Orprer 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 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, 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 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 executed 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 Edward Debowsky is an officer of the corporate respondent. He formulates, directs and controls the acts,. practices and policies of the said corporate respondent including those hereinafter set forth.

Respondent Osage Handkerchief Co., Inc., is a corporation. or- 1094 FEDERAL TRADE COMMISSION: DECISIONS Decision and Order 78 F.T-C.

ganized, existing and doing business under and by virtue of the laws of the State of New York. Its office and principal place of business is located at 40 West 37th Street, New York, New York. Respondents are engaged in the importation, sale and distribution of textile fiber products, including, but not limited to ladies’ scarves. 9. The Federal Trade Commission has jurisdiction of the subject matter of the proceeding and of the respondents and the proceeding is in the public interest.

ORDER It is ordered, That the respondents Osage Handerkerchief Co., Inc., a corporation, and its officers, and Edward Debowsky, individually and as an offcer.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, trans-— porting 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 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 issued, amended or continued in effect, 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 ladies’ scarves which gave rise to the complaint, of the flammable nature of said scarves and effect the recall of said scarves from such customers. It is further ordered, That the respondents herein either process the scarves which gave rise to the complaint so as to bring them into conformance with the applicable standard of flammability under the Flammable Fabrics Act, as amended, or destroy said scarves. It is further ordered, That the respondents herein shall, within ten (10) days after service upon them 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 special report shall also advise the Commission fully and. specifically concerning (1) the identity of the scarves which gave rise to the complaint, (2) the number of said scarves in inventory, (8) any action taken and any further actions proposed to be taken to notify customers of the flammability of said scarves and effect the recall] 5 1 1 1 1 2 920 242 294 45 37.113243 WARREN-REED,5 1 1 1 1 3 1242 254 84 32 88.271561 INC.,5 1 1 1 1 4 1352 253 46 24 96.441139 ET5 1 1 1 1 5 1424 253 54 28 92.513336 AL.5 1 1 1 1 6 1765 241 94 39 96.976822 10952 1 2 0 0 0 547 338 739 30 -1 3 1 2 1 0 0 547 338 739 30 -1 4 1 2 1 1 0 547 338 739 30 -1 5 1 2 1 1 1 547 340 90 25 28.677696 10925 1 2 1 1 2 1097 356 2 2 61.976143 -5 1 2 1 1 3 1120 338 166 30 96.435928 Complaint2 1 3 0 0 0 530 407 1327 1296 -1 3 1 3 1 0 0 539 407 1318 694 -1 4 1 3 1 1 0 543 407 1314 44 -1 5 1 3 1 1 1 543 413 42 32 96.855247 of5 1 3 1 1 2 603 413 76 32 96.912422 said5 1 3 1 1 3 699 424 131 21 96.889442 scarves5 1 3 1 1 4 849 413 91 31 95.801102 from5 1 3 1 1 5 960 415 193 36 95.801102 customers,5 1 3 1 1 6 1174 410 68 31 96.601036 ands 1 3 1 1 7 1263 410 38 31 96.934479 of5 1 3 1 1 8 1321 410 56 30 96.405411 thes 1 3 1 1 9 1399 408 121 32 96.646744 results5 1 3 1 1 10 1540 407 143 40 95.931213 thereof,5 1 3 1 1 11 1710 407 53 42 96.916817 (4)5 1 3 1 1 12 1789 416 68 34 96.417793 any4 1 3 1 2 0 543 457 1313 48 -1 5 1 3 1 2 1 543 464 206 41 96.524841 dispositions 1 3 1 2 2 768 464 38 30 96.887939 of5 1 3 1 2 3 824 463 74 31 95.863289 said5 1 3 1 2 4 917 473 132 21 96.398247 scarves5 1 3 1 2 5 1068 461 89 32 96.853508 since5 1 3 1 2 6 1177 460 196 41 96.695496 September5 1 3 1 2 7 1393 461 30 38 96.643921 2,5 1 3 1 2 8 1444 458 79 32 95.877876 19705 1 3 1 2 9 1544 457 68 31 95.877876 ands 1 3 1 2 10 1637 457 53 41 96.325027 (5)5 1 3 1 2 11 1715 467 68 30 93.196304 any5 1 3 1 2 12 1804 467 52 21 92.941719 ac-4 1 3 1 3 0 544 506 1312 48 -1 5 1 3 1 3 1 544 514 75 31 96.091270 tions 1 3 1 3 2 641 515 102 30 96.091270 taken5 1 3 1 3 3 764 524 38 21 96.256119 or5 1 3 1 3 4 822 512 170 42 96.901001 proposed5 1 3 1 3 5 1012 515 35 28 65.970657 to:5 1 3 1 3 6 1070 512 40 31 73.811462 be5 1 3 1 3 7 1131 512 102 30 96.646210 taken5 1 3 1 3 8 1256 514 35 28 96.322044 to5 1 3 1 3 9 1312 509 102 41 96.952835 brings 1 3 1 3 10 1435 509 75 31 96.816223 said5 1 3 1 3 11 1532 518 132 22 96.774406 scarves5 1 3 1 3 12 1685 506 72 32 93.258530 into5 1 3 1 3 13 1780 517 76 21 92.509712 con-4 1 3 1 4 0 546 557 1311 47 -1 5 1 3 1 4 1 546 565 174 31 96.692032 formance5 1 3 1 4 2 746 564 82 32 96.288803 with5 1 3 1 4 3 850 563 60 31 96.372162 thes 1 3 1 4 4 934 562 191 42 96.372162 applicable5 1 3 1 4 5 1150 560 164 32 95.662140 standards 1 3 1 4 6 1339 560 38 31 95.662140 of5 1 3 1 4 7 1403 557 236 42 95.577179 flammability5 1 3 1 4 8 1666 557 107 32 96.476479 under5 1 3 1 4 9 1798 557 59 31 96.476479 thea 1 3 1 5 0 545 605 1311 48 -1 5 1 3 1 5 1 545 614 212 32 70.471291 Flammable5 1 3 1 5 2 781 614 140 31 94.966591 Fabrics5 1 3 1 5 3 945 613 79 40 96.733307 Act,5 1 3 1 5 4 1048 622 37 21 96.643311 as5 1 3 1 5 5 1110 610 174 40 96.280380 amended,5 1 3 1 5 6 1309 620 38 21 96.678902 or5 1 3 1 5 7 1371 609 135 41 96.715324 destroys 1 3 1 5 8 1531 607 74 32 96.156441 said5 1 3 1 5 9 1630 617 132 22 96.125931 scarves5 1 3 1 5 10 1788 605 68 33 96.125931 anda 1 3 1 6 0 542 656 1314 45 -1 5 1 3 1 6 1 542 665 60 30 96.557587 thes 1 3 1 6 2 629 665 122 31 96.511734 results5 1 3 1 6 3 778 664 37 31 96.511734 of5 1 3 1 6 4 841 663 82 32 96.370171 such5 1 3 1 6 5 950 662 122 33 90.739090 action.5 1 3 1 6 6 1099 661 92 34 96.412239 Such5 1 3 1 6 7 1219 663 115 38 96.682190 reports 1 3 1 6 8 1360 659 88 32 96.557938 shall5 1 3 1 6 9 1477 658 136 32 96.487236 furthers 1 3 1 6 10 1640 657 130 32 96.506599 informs 1 3 1 6 11 1798 656 58 32 96.768532 thea 1 3 1 7 0 545 707 1310 44 -1 5 1 3 1 7 1 545 714 226 32 96.032959 Commissions 1 3 1 7 2 787 725 37 21 96.023331 as5 1 3 1 7 3 840 717 35 28 96.023331 to5 1 3 1 7 4 893 713 151 32 96.888832 whether5 1 3 1 7 5 1062 722 38 21 95.571053 or5 1 3 1 7 6 1116 715 60 27 95.571053 not5 1 3 1 7 7 1195 709 220 42 96.385788 respondents5 1 3 1 7 8 1432 710 86 30 96.728043 have5 1 3 1 7 9 1536 707 37 32 96.794258 in5 1 3 1 7 10 1589 707 180 41 96.245262 inventory5 1 3 1 7 11 1788 718 67 29 96.537079 any4 1 3 1 8 0 544 757 1312 49 -1 5 1 3 1 8 1 544 764 156 42 96.637535 product,5 1 3 1 8 2 717 764 119 40 96.637535 fabric,5 1 3 1 8 3 853 774 39 21 96.988380 or5 1 3 1 8 4 909 762 128 32 96.962036 related5 1 3 1 8 5 1054 761 155 31 96.604774 materials 1 3 1 8 6 1226 759 129 41 96.616295 having5 1 3 1 8 7 1372 770 20 21 96.800735 a5 1 3 1 8 8 1409 758 96 42 96.937500 plains 1 3 1 8 9 1522 758 134 31 96.624252 surfaces 1 3 1 8 10 1672 757 67 32 96.343201 ands 1 3 1 8 11 1757 757 99 31 96.810150 made4 1 3 1 9 0 540 809 1315 47 -1 5 1 3 1 9 1 540 815 42 31 96.956322 of5 1 3 1 9 2 604 826 117 30 96.132721 paper,5 1 3 1 9 3 745 814 75 41 96.959053 silk,5 1 3 1 9 4 843 824 107 31 96.856316 rayon5 1 3 1 9 5 975 812 67 31 95.881882 ands 1 3 1 9 6 1066 814 137 37 95.881882 acetate,5 1 3 1 9 7 1226 810 105 41 96.133308 nylon5 1 3 1 9 8 1354 809 69 32 96.432144 ands 1 3 1 9 9 1447 812 128 28 96.445679 acetate5 1 3 1 9 10 1599 818 116 31 96.124779 rayon,5 1 3 1 9 11 1741 810 114 29 96.124779 cotton4 1 3 1 10 0 539 857 1316 49 -1 5 1 3 1 10 1 539 876 43 21 95.807274 or5 1 3 1 10 2 604 876 67 30 95.879204 any5 1 3 1 10 3 694 865 97 32 96.445694 others 1 3 1 10 4 811 863 157 32 96.751175 materials 1 3 1 10 5 991 873 38 21 96.737053 or5 1 3 1 10 6 1051 860 244 34 96.579872 combinations5 1 3 1 10 7 1318 860 133 31 95.411514 thereof5 1 3 1 10 8 1473 860 36 30 95.998314 in5 1 3 1 10 9 1534 869 19 21 95.728691 a5 1 3 1 10 10 1576 857 126 42 95.728691 weights 1 3 1 10 11 1725 857 38 32 96.926270 of5 1 3 1 10 12 1786 860 69 29 96.974541 two4 1 3 1 11 0 543 907 1312 48 -1 5 1 3 1 11 1 543 926 121 21 96.375648 ounces5 1 3 1 11 2 688 926 39 20 96.918915 or5 1 3 1 11 3 748 915 65 30 96.726196 less5 1 3 1 11 4 835 924 62 31 96.813416 pers 1 3 1 11 5 921 923 119 31 96.706291 squares 1 3 1 11 6 1063 911 97 42 96.397911 yard,5 1 3 1 11 7 1185 922 38 20 96.284790 or5 1 3 1 11 8 1248 921 66 30 96.964699 any5 1 3 1 11 9 1338 910 154 41 96.836395 product,5 1 3 1 11 10 1517 908 120 40 96.995743 fabric,5 1 3 1 11 11 1662 919 38 20 96.964447 or5 1 3 1 11 12 1726 907 129 32 96.986725 related4 1 3 1 12 0 542 958 1311 47 -1 5 1 3 1 12 1 542 965 157 31 96.745743 materials 1 3 1 12 2 712 964 130 41 96.286705 having5 1 3 1 12 3 856 975 20 20 96.860390 a5 1 3 1 12 4 890 962 111 33 96.363686 raised5 1 3 1 12 5 1016 962 83 31 96.974678 fibers 1 3 1 12 6 1114 961 143 32 96.546600 surface.5 1 3 1 12 7 1275 959 233 42 96.546600 Respondents5 1 3 1 12 8 1524 959 87 31 96.395592 shall5 1 3 1 12 9 1626 958 126 32 93.221657 submits 1 3 1 12 10 1768 968 85 21 92.996307 sam-4 1 3 1 13 0 540 1007 1314 49 -1 5 1 3 1 13 1 540 1016 74 40 96.809921 ples5 1 3 1 13 2 635 1016 39 31 96.911316 of5 1 3 1 13 3 695 1018 60 28 96.617592 not5 1 3 1 13 4 775 1015 64 31 94.345222 less5 1 3 1 13 5 859 1014 85 31 96.766159 than5 1 3 1 13 6 966 1023 62 21 96.629562 ones 1 3 1 13 7 1049 1022 119 31 96.939590 squares 1 3 1 13 8 1189 1010 88 42 96.650749 yards 1 3 1 13 9 1299 1010 36 31 95.576836 in5 1 3 1 13 10 1356 1010 68 31 95.576836 sizes 1 3 1 13 11 1444 1009 39 32 96.671669 of5 1 3 1 13 12 1506 1019 67 31 96.383713 any5 1 3 1 13 13 1595 1008 81 32 96.919205 such5 1 3 1 13 14 1698 1007 156 43 95.252876 product,4 1 3 1 14 0 540 1061 842 44 -1 5 1 3 1 14 1 540 1065 125 40 96.729752 fabric,5 1 3 1 14 2 684 1076 39 21 96.304626 or5 1 3 1 14 3 742 1064 128 32 96.264297 related5 1 3 1 14 4 889 1062 156 33 93.197876 materials 1 3 1 14 5 1066 1061 84 32 96.281326 with5 1 3 1 14 6 1168 1061 69 31 96.943924 this5 1 3 1 14 7 1258 1063 124 38 96.807335 report.3 1 3 2 0 0 530 1081 1324 326 -1 4 1 3 2 1 0 582 1081 1272 76 -1 5 1 3 2 1 1 582 1116 38 30 77.006027 It5 1 3 2 1 2 637 1116 29 31 95.705719 is5 1 3 2 1 3 684 1115 137 42 96.523735 furthers 1 3 2 1 4 840 1113 152 40 96.350998 ordered,5 1 3 2 1 5 1012 1112 91 32 96.766777 That5 1 3 2 1 6 1123 1110 220 42 96.570107 respondents5 1 3 2 1 7 1362 1109 114 42 96.554337 notify5 1 3 2 1 8 1496 1109 58 31 97.010872 thes 1 3 2 1 9 1573 1081 224 73 95.133186 Commissions 1 3 2 1 10 1818 1110 36 29 96.510887 at4 1 3 2 2 0 541 1157 1311 49 -1 5 1 3 2 2 1 541 1166 85 31 96.594177 least5 1 3 2 2 2 642 1168 40 29 92.098373 305 1 3 2 2 3 697 1165 85 41 96.713226 days5 1 3 2 2 4 797 1164 96 42 96.689377 prior5 1 3 2 2 5 908 1167 35 28 96.416000 to5 1 3 2 2 6 960 1173 67 30 96.706367 any5 1 3 2 2 7 1043 1160 168 43 96.789421 proposed5 1 3 2 2 8 1227 1160 152 40 96.108932 changes 1 3 2 2 9 1372 1171 36 20 96.610191 in5 1 3 2 2 10 1424 1160 58 31 96.795151 thes 1 3 2 2 11 1498 1161 176 39 93.296188 corporate5 1 3 2 2 12 1691 1157 161 42 91.629486 respond-4 1 3 2 3 0 538 1208 1315 48 -1 5 1 3 2 3 1 538 1219 70 37 96.938416 ent,5 1 3 2 3 2 622 1216 82 31 96.904724 such5 1 3 2 3 3 718 1226 37 21 96.928528 as5 1 3 2 3 4 769 1213 212 40 96.582626 dissolution,5 1 3 2 3 5 996 1212 207 41 96.318275 assignments 1 3 2 3 6 1218 1221 39 21 96.909058 or5 1 3 2 3 7 1271 1210 69 32 96.957245 sales 1 3 2 3 8 1354 1209 167 41 96.991600 resulting5 1 3 2 3 9 1536 1208 35 31 96.983170 in5 1 3 2 3 10 1586 1208 58 32 96.904602 thes 1 3 2 3 11 1660 1218 193 31 96.562302 emergence4 1 3 2 4 0 530 1257 1323 48 -1 5 1 3 2 4 1 530 1266 48 31 76.105713 ‘of5 1 3 2 4 2 590 1268 26 29 65.728004 ‘a5 1 3 2 4 3 633 1275 167 22 95.649101 successors 1 3 2 4 4 816 1262 227 43 96.496086 corporation,5 1 3 2 4 5 1060 1262 58 31 96.957260 thes 1 3 2 4 6 1135 1260 150 33 96.957260 creations 1 3 2 4 7 1303 1271 39 20 97.008179 or5 1 3 2 4 8 1360 1259 201 32 96.981407 dissolution5 1 3 2 4 9 1579 1259 38 31 96.787262 of5 1 3 2 4 10 1635 1257 218 33 96.800629 subsidiaries4 1 3 2 5 0 535 1308 1317 49 -1 5 1 3 2 5 1 535 1327 43 20 95.556313 or5 1 3 2 5 2 595 1327 67 30 96.078018 any5 1 3 2 5 3 680 1315 97 32 96.829819 others 1 3 2 5 4 793 1315 130 40 96.910988 changes 1 3 2 5 5 940 1313 37 31 95.833801 in5 1 3 2 5 6 994 1313 58 31 96.118065 thes 1 3 2 5 7 1068 1310 217 42 96.608315 corporations 1 3 2 5 8 1301 1309 111 32 96.509438 which5 1 3 2 5 9 1430 1320 79 30 96.597305 may5 1 3 2 5 10 1527 1309 100 32 96.597305 affects 1 3 2 5 11 1645 1308 207 42 96.669846 compliance4 1 3 2 6 0 537 1361 673 46 -1 5 1 3 2 6 1 537 1366 208 41 96.836823 obligations5 1 3 2 6 2 757 1365 130 40 95.815292 arising5 1 3 2 6 3 898 1367 60 28 95.815292 outs 1 3 2 6 4 970 1363 38 31 97.003403 of5 1 3 2 6 5 1020 1361 69 32 96.985397 this5 1 3 2 6 6 1101 1361 109 31 96.846222 order.3 1 3 3 0 0 538 1408 1312 97 -1 4 1 3 3 1 0 580 1408 1270 49 -1 5 1 3 3 1 1 580 1417 36 30 83.671890 It5 1 3 3 1 2 631 1417 30 31 88.452728 is5 1 3 3 1 3 677 1415 138 42 96.863075 furthers 1 3 3 1 4 830 1413 153 40 96.392197 ordered,5 1 3 3 1 5 1000 1413 91 30 95.920341 That5 1 3 3 1 6 1105 1411 59 31 95.920341 thes 1 3 3 1 7 1181 1410 204 41 96.787697 respondents 1 3 3 1 8 1401 1408 215 42 96.506142 corporations 1 3 3 1 9 1633 1409 88 31 87.638596 shall5 1 3 3 1 10 1740 1408 110 32 93.229828 forth-4 1 3 3 2 0 538 1458 1312 47 -1 5 1 3 3 2 1 538 1466 84 31 96.773483 with5 1 3 3 2 2 639 1465 180 32 96.715950 distributes 1 3 3 2 3 834 1476 20 20 96.954803 a5 1 3 3 2 4 869 1474 86 31 96.937714 copy5 1 3 3 2 5 970 1462 38 32 97.015190 of5 1 3 3 2 6 1023 1461 68 32 96.200882 this5 1 3 3 2 7 1107 1461 100 31 96.200882 orders 1 3 3 2 8 1222 1464 35 27 97.006104 to5 1 3 3 2 9 1273 1459 80 32 96.946724 each5 1 3 3 2 10 1369 1459 38 32 96.999535 of5 1 3 3 2 11 1422 1459 44 32 96.860748 its5 1 3 3 2 12 1480 1458 181 42 96.895035 operating5 1 3 3 2 13 1676 1458 174 33 92.494179 divisions.3 1 3 4 0 0 535 1507 1315 196 -1 4 1 3 4 1 0 579 1507 1271 50 -1 5 1 3 4 1 1 579 1517 37 31 70.735016 It5 1 3 4 1 2 638 1516 30 32 94.946968 is5 1 3 4 1 3 691 1515 137 42 96.634102 furthers 1 3 4 1 4 850 1512 154 40 96.707657 ordered,5 1 3 4 1 5 1027 1512 91 31 96.518791 That5 1 3 4 1 6 1140 1511 58 31 96.835289 thes 1 3 4 1 7 1222 1509 220 42 96.672089 respondents5 1 3 4 1 8 1465 1508 115 32 96.719910 herein5 1 3 4 1 9 1605 1508 98 40 96.533997 shall,5 1 3 4 1 10 1728 1507 122 33 96.444183 within4 1 3 4 2 0 535 1557 1315 50 -1 5 1 3 4 2 1 535 1566 94 41 96.154793 sixty5 1 3 4 2 2 655 1566 73 40 96.703140 (60)5 1 3 4 2 3 755 1565 83 40 96.798302 days5 1 3 4 2 4 858 1563 91 32 96.976410 after5 1 3 4 2 5 970 1561 124 32 96.665695 services 1 3 4 2 6 1114 1571 91 31 96.868469 upon5 1 3 4 2 7 1225 1560 91 30 96.520355 them5 1 3 4 2 8 1335 1559 38 31 96.331223 of5 1 3 4 2 9 1393 1559 69 31 96.331223 this5 1 3 4 2 10 1481 1559 111 40 96.839325 order,5 1 3 4 2 11 1612 1558 56 32 96.678497 files 1 3 4 2 12 1688 1557 84 33 96.953484 with5 1 3 4 2 13 1792 1558 58 32 97.013489 thea 1 3 4 3 0 538 1608 1312 46 -1 5 1 3 4 3 1 538 1615 224 34 83.548599 Commissions 1 3 4 3 2 784 1626 19 19 96.908226 a5 1 3 4 3 3 824 1616 117 38 96.811005 reports 1 3 4 3 4 961 1612 37 31 96.581833 in5 1 3 4 3 5 1019 1611 140 39 96.461372 writings 1 3 4 3 6 1180 1609 126 41 96.569405 settings 1 3 4 3 7 1328 1609 96 31 96.374710 forth5 1 3 4 3 8 1446 1608 36 31 97.009659 in5 1 3 4 3 9 1504 1608 104 31 96.451698 details 1 3 4 3 10 1630 1608 57 31 96.606728 thes 1 3 4 3 11 1708 1618 142 21 96.574646 manner4 1 3 4 4 0 535 1659 1016 44 -1 5 1 3 4 4 1 535 1667 69 31 95.927361 ands 1 3 4 4 2 619 1666 91 31 95.927361 forms 1 3 4 4 3 723 1665 35 30 96.882973 in5 1 3 4 4 4 771 1664 110 31 96.589272 which5 1 3 4 4 5 893 1663 81 40 96.641434 they5 1 3 4 4 6 986 1662 87 30 96.602028 have5 1 3 4 4 7 1085 1659 168 42 96.537415 complied5 1 3 4 4 8 1265 1659 84 31 96.900291 with5 1 3 4 4 9 1361 1659 69 31 96.198364 this5 1 3 4 4 10 1441 1659 110 32 95.941681 order.2 1 4 0 0 0 853 1785 678 123 -1 3 1 4 1 0 0 853 1785 678 123 -1 4 1 4 1 1 0 1015 1785 355 33 -1 5 1 4 1 1 1 1015 1786 48 32 96.301025 In5 1 4 1 1 2 1079 1796 72 21 60.108917 trees 1 4 1 1 3 1166 1785 146 32 38.142593 Matrer5 1 4 1 1 4 1328 1794 42 22 89.958893 or4 1 4 1 2 0 853 1866 678 42 -1 5 1 4 1 2 1 853 1868 371 40 92.007568 WARREN-REED,5 1 4 1 2 2 1247 1866 104 41 89.129036 INC.,5 1 4 1 2 3 1372 1867 64 32 94.620605 ET5 1 4 1 2 4 1456 1866 75 32 95.939072 AL.2 1 5 0 0 0 595 1959 1195 79 -1 3 1 5 1 0 0 595 1959 1195 79 -1 4 1 5 1 1 0 595 1959 1195 36 -1 5 1 5 1 1 1 595 1966 157 22 96.166039 CONSENTS 1 5 1 1 2 761 1965 116 30 93.234093 ORDER,5 1 5 1 1 3 889 1962 82 30 91.347717 ETC.,5 1 5 1 1 4 982 1963 41 21 95.400589 IN5 1 5 1 1 5 1036 1962 126 21 96.574829 REGARDS 1 5 1 1 6 1174 1961 41 21 96.143074 TO5 1 5 1 1 7 1227 1962 71 20 96.416634 THES 1 5 1 1 8 1310 1960 146 22 96.431755 ALLEGED5 1 5 1 1 9 1468 1959 183 22 95.933746 VIOLATIONS 1 5 1 1 10 1665 1959 41 22 96.268074 OF5 1 5 1 1 11 1718 1959 72 22 96.209114 THEA 1 5 1 2 0 628 2009 1130 29 -1 5 1 5 1 2 1 628 2016 148 22 96.310097 FEDERAL5 1 5 1 2 2 787 2015 106 22 95.489639 TRADES 1 5 1 2 3 904 2012 218 26 95.489639 COMMISSIONS 1 5 1 2 4 1134 2012 71 20 96.201378 ANDS 1 5 1 2 5 1216 2011 71 21 95.149925 THES 1 5 1 2 6 1299 2010 214 22 95.149925 FLAMMABLE5 1 5 1 2 7 1525 2010 137 22 95.897209 FABRICS5 1 5 1 2 8 1675 2009 83 23 96.087517 ACTS2 1 6 0 0 0 652 2069 1075 57 -1 3 1 6 1 0 0 652 2069 1075 57 -1 4 1 6 1 1 0 652 2069 1075 57 -1 5 1 6 1 1 1 652 2069 112 57 96.762383 Dockets 1 6 1 1 2 781 2085 118 39 70.963745 0-1924.5 1 6 1 1 3 923 2080 173 36 95.362778 Complaint,5 1 6 1 1 4 1112 2087 69 29 96.218697 May5 1 6 1 1 5 1198 2085 43 31 93.141609 18,5 1 6 1 1 6 1257 2084 248 31 68.028214 1971-——Decision,5 1 6 1 1 7 1519 2085 70 28 96.691246 May5 1 6 1 1 8 1602 2084 43 29 96.812469 18,5 1 6 1 1 9 1659 2083 68 26 95.830009 19712 1 7 0 0 0 527 2142 1320 160 -1 3 1 7 1 0 0 527 2142 1320 160 -1 4 1 7 1 1 0 527 2142 1320 35 -1 5 1 7 1 1 1 527 2151 131 25 54.659100 Consents 1 7 1 1 2 678 2149 86 24 96.871017 orders 1 7 1 1 3 784 2147 149 30 96.475410 requiring5 1 7 1 1 4 954 2153 18 17 96.677292 a5 1 7 1 1 5 992 2145 210 29 92.680069 Birmingham,5 1 7 1 1 6 1225 2144 71 30 92.680069 Ala.,5 1 7 1 1 7 1318 2143 147 30 96.712433 millinery5 1 7 1 1 8 1487 2143 71 29 96.892853 shops 1 7 1 1 9 1579 2142 96 25 96.163864 which5 1 7 1 1 10 1697 2142 70 25 96.010384 sells5 1 7 1 1 11 1789 2142 58 25 96.222267 anda 1 7 1 2 0 600 2185 1247 33 -1 5 1 7 1 2 1 600 2191 172 27 96.546722 distributes5 1 7 1 2 2 788 2190 154 28 96.643890 millinery,5 1 7 1 2 3 961 2188 151 29 96.936127 handbags5 1 7 1 2 4 1129 2187 58 25 95.914452 ands 1 7 1 2 5 1205 2186 182 30 96.594315 accessories,5 1 7 1 2 6 1405 2185 150 29 96.070961 including5 1 7 1 2 7 1572 2191 124 24 96.493073 scarves,5 1 7 1 2 8 1714 2185 32 24 96.553802 to5 1 7 1 2 9 1763 2191 84 19 96.486862 cease4 1 7 1 3 0 599 2227 1248 35 -1 5 1 7 1 3 1 599 2234 144 28 94.231361 violating5 1 7 1 3 2 760 2233 51 24 95.679901 thes 1 7 1 3 3 829 2231 180 26 95.679901 Flammable5 1 7 1 3 4 1028 2229 120 25 87.666504 Fabrics5 1 7 1 3 5 1166 2229 56 24 95.777405 Acts 1 7 1 3 6 1240 2229 38 28 95.777405 by5 1 7 1 3 7 1295 2227 159 30 96.428070 importing5 1 7 1 3 8 1472 2228 59 24 96.666672 ands 1 7 1 3 9 1550 2227 105 29 96.474930 selling5 1 7 1 3 10 1673 2233 59 24 96.653770 any5 1 7 1 3 11 1751 2227 96 25 95.387482 fabric4 1 7 1 4 0 598 2269 840 33 -1 5 1 7 1 4 1 598 2277 97 25 96.403450 which5 1 7 1 4 2 706 2275 73 25 95.936646 fails5 1 7 1 4 3 790 2275 31 24 96.244431 to5 1 7 1 4 4 833 2273 132 26 96.244431 conforms 1 7 1 4 5 977 2273 30 24 96.707016 to5 1 7 1 4 6 1021 2271 49 25 95.603851 thes 1 7 1 4 7 1083 2271 159 25 96.332726 standards5 1 7 1 4 8 1254 2270 32 25 96.332726 of5 1 7 1 4 9 1297 2269 66 26 96.267860 said5 1 7 1 4 10 1375 2269 63 27 95.767578 Act.2 1 8 0 0 0 1081 2352 211 33 -1 3 1 8 1 0 0 1081 2352 211 33 -1 4 1 8 1 1 0 1081 2352 211 33 -1 5 1 8 1 1 1 1081 2352 211 33 43.693573 ComMPLAINT2 1 9 0 0 0 524 2413 1320 113 -1 3 1 9 1 0 0 524 2413 1320 113 -1 4 1 9 1 1 0 568 2413 1276 67 -1 5 1 9 1 1 1 568 2438 175 31 95.645424 Pursuant5 1 9 1 1 2 760 2440 36 39 96.892731 to5 1 9 1 1 3 814 2437 58 32 96.834900 thes 1 9 1 1 4 890 2436 248 42 96.516548 provisions5 1 9 1 1 5 1098 2430 41 53 96.916672 of5 1 9 1 1 6 1155 2435 59 32 96.923019 thes 1 9 1 1 7 1232 2434 145 36 96.781464 Federal5 1 9 1 1 8 1397 2433 125 38 60.585140 Trade:5 1 9 1 1 9 1538 2413 217 67 60.585140 Commissions 1 9 1 1 10 1772 2433 72 42 66.534515 Acta 1 9 1 2 0 524 2483 1319 43 -1 5 1 9 1 2 1 524 2488 72 32 95.488174 ands 1 9 1 2 2 614 2488 58 32 95.488174 thes 1 9 1 2 3 691 2488 215 32 96.314880 Flammable5 1 9 1 2 4 925 2486 141 32 96.121605 Fabrics5 1 9 1 2 5 1085 2486 79 40 96.577835 Act,5 1 9 1 2 6 1185 2495 36 22 96.779716 as5 1 9 1 2 7 1240 2484 176 41 96.600716 amended,5 1 9 1 2 8 1438 2484 68 31 96.677269 ands 1 9 1 2 9 1525 2484 46 40 96.504944 by5 1 9 1 2 10 1592 2484 112 31 96.326668 virtues 1 9 1 2 11 1725 2483 39 32 96.494011 of5 1 9 1 2 12 1784 2484 59 31 96.756439 the2 1 10 0 0 0 628 2596 282 23 -1 3 1 10 1 0 0 628 2596 282 23 -1 4 1 10 1 1 0 628 2596 282 23 -1 5 1 10 1 1 1 628 2596 282 23 75.714035 470-536—73———70 Decision and Order 98 E.T.C, authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Warren-Reed, Inc., a corporation, and Armistead C. Warren, individually and as an officer of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts, and 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:

Paracrapn 1. Respondent Warren-Reed, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Alabama. Respondent Armistead C. Warren is an officer of said corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporation. Respondents are engaged in the business of the sale and distribution of products, namely millinery, handbags and accessories, including but not limited to scarves. Their office and principal place of business is located at 2215 First Avenue, Birmingham, Alabama. Par. 2. Respondents are now and for some time last past have been engaged in the sale and 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, as “commerce,” and “product,” are defined in the Flammable Fabrics Act, as amended, which 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 mentioned hereinabove were scarves. 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 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 respondents named in the captioned hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the Division of Textiles and Furs, Bureau of Consumer Protection proposed to present to the WAKKIGIIN NBD, LINU., GML Lhe avge 1095 Decision and Order 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 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 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 § 2.84(b) of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Warren-Reed, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Alabama.

Respondent Armistead C. Warren is an officer of the proposed corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporate respondent. Respondents are engaged in the business of the sale and distribution of products, namely millinery, handbags and accessories, including but not. limited to scarves. Their office and principal place of business is located at 2215 First Avenue, Birmingham, Alabama. 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 respondent Warren-Reed, Inc., a corporation, and its officers and Armistead C. Warren, 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 selling, offering for sale, in commerce or importing into the United States, or introducing, delivering for introduction, transporting or causing to be transported in com- Decision and Order 78 F.T.C.

merce, or selling or delivering after sale or shipment in commerce, any product, fabric, or related material, as “commerce,” “product,” “fabric” or “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. [tis further ordered, That respondents notify all of their customers who have purchased or to whom have been delivered the products which gave rise to the complaint, of the flammable nature of said products, and effect recall of said products from such customers. It is further ordered, That. the respondents herein either process the products which gave rise to the complaint so as to bring them into conformance with the applicable standard of flammability under the Flammable Fabrics Act, as amended, or destroy said products. Jt 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 writing setting forth 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 product which gave rise to the complaint, (2) the number of said products in inventory, (8) 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 and of the results thereof, (4) any disposition of said products since August 25, 1970 and (5) any action 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 to two ounces or less per square yard, or any product, fabric or related material having a raised fiber surface. Upon request of the Commission 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 east 80 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.

FABERGE, INC., BT AL. 1099 1095 : - Complaint.

It is further ordered, That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions. lt 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.