Schwerzler & Sons, Inc

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In rae Matter or SCHWERZLER & SONS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-1935. Complaint, June 2, 1971—Decision, June 2, 1971 Consent order requiring a Union City, N.J., importer and seller of fabrics, including a lightweight white cotton organdy fabric, to cease violating the Flammable Fabrics Act by importing and selling any fabric which fails to conform to the standards of said Act.

ComMPrLAInT 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 Schwerzler & Sons, Inc., a corporation, and Allie Feldman and George L. Violick, individually and as officers 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: Panacnarn 1. Respondent Schwerzler & Sons, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New Jersey. Its office and principal place of business is located at 809 22nd Street, Union City, New Jersey. SCHWERZLER & SUNS, LNU., Ht Aue. saa 1144. Decision and Order Respondents Allie Feldman and George L. Violick are officers of the corporate respondent. They formulate, direct and control the acts, practices and policies of the said corporate respondent including those hereinafter set forth.

Respondents are engaged in the manufacture for sale, and the importation and sale, of fabrics and products made therefrom, including, but not limited to, a lightweight white cotton organdy fabric, designated as “Style Sanosa.”

Par. 2. Respondents are now and for some time last past have been engaged in the manufacture for sale, 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, fabric, as the terms “commerce” and “fabric” 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 fabric mentioned hereinabove was a lightweight white cotton organdy fabric, designated as “Style Sanosa,” imported by corporate respondent from Switzerland.

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 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 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 agree- Decision and Order 78 *F.T.C.

ment 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 agreement and Plazes such agreement on the public record for a period of thirty (30) d ays, now in further conformity with the pro-. cedure prescribed in § 2.34(b) of its Rules, the Commission hereby issues its complaint, makes the following jur isdictional findings, and enters the following order:

1. Respondents Allie Feldman & George L. Violick are officers of the corporate respondent. They formulate, direct and control the: acts, practices and policies of said corporate respondent. Respondents are engaged in the manufacture for sale, and the importation and sale, of fabrics and products made therefrom, including, but not limited to, a certain lightweight white cotton organdy fabric, designated as “Style Sanosa,” with their office and principal. place of business located at 809 22nd Street, Union City, New Jersey. ' 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 Schwerzler & Sons, Inc., a corporation, and its officers, and Allie Feldman and George L. Violick, individually and as officers 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 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.

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1144 Decision and Order It is further ordered,.That respondents notify all of their customers who have purchased or to whom has been delivered the fabric which gave rise to this complaint, of the flammable nature of said fabric, and effect the recall of said fabric from such customers. It is further ordered, That the respondents herein either process the fabric which gave rise to the complaint so as to bring it into conformance with the applicable flammability standards of the Flammable Fabrics Act, as amended, or destroy said fabric. Ji 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 interim report shall also advise the Commission fully and specifically concerning (1) the identity of the fabric which gave rise to the complaint, (2) the amount of such fabric in inventory, (3) any action taken and any further actions proposed to be taken to notify customers of the flammability of such fabric and effect the recall of such fabric from customers, and of the results of such actions, (4) any disposition of such fabric since July 31, 1970, and (5) any action taken or proposed to be taken to flameproof or destroy such fabric 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, prod- “uct or related material shall be of no less than one square yard of material.

It 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. - 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. Complaint 78 E.T.C.