Louis Greenberg & Son, Inc., et al.

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LOUIS GREENBERG & SON, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS - Docket C-1958. Complaint, June 30,.1971—Decision, June 30, 1971 Consent order requiring a New York City importer and wholesaler of toys and novelty items, including leis, to cease violating the Flammable Fabrics Act by importing or selling any fabric which fails to conform to 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 Louis Greenberg & Son, Inc., a corporation, and Samuel Greenberg and Aaron Greenberg, 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: Paracrapy 1. Respondent Louis Greenberg & Son, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 932 Broadway, New York, New York. Respondents Samuel Greenberg and: Aaron Greenberg are officers of the aforesaid corporation. They formulate, direct and control the acts, practices and policies of said cor poration. Their address is the same as that of the corporate respondent. Respondents are importers and wholesalers of toys and novelty items including leis.

1526 FEDERAL ‘TRADE COMMISSION DECISIONS Complaint 78 F.T.C.

Par. 2. Respondents are now and for some time last past have been engaged in the sale and offering for sale in commerce, and in 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 products 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 leis. 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.

Par. 4. Respondents are now and for some time last past have been engaged in the advertising, offering for sale, sale and distribution of certain products, namely leis. In the course and conduct of their business the aforesaid respondents now cause and for some time last past have caused their said products, when sold, to be shipped from their place of business in New York, New ‘York to purchasers located in other States of the United States, and maintained and at all times mentioned herein have maintained a substantial course of trade in said products in commerce, as “commerce” is defined in the Federal Trade Commission Act. Par. 5. Respondents in the course and conduct of their business have represented on labels that their products, namely leis, are “flameproof” whereas. in truth and in fact such products are not flameproof, but, when ignited, exhibit characteristics of such rapid and intense burning as to render them dangerous for use by individuals. ‘Therefore, the statement and representations made by the respondents are false, misleading and deceptive. Par. 6. The acts and practices set out in Paragraph Five have the tendency and capacity to mislead and deceive the purchaser of said products as to the true condition of the products. Par. 7. The aforesaid acts and practices of respondents as herein alleged were, and are, all to the prejudice and injury of the public, and constituted, and now constitute, unfair and deceptive acts and practices in commerce within the intent and meaning of the Federal Trade Commission Act.

LOUIS GREENBERG & SUN, LNU., HY AL. LIZ 1525 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 Division 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 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 (80) days, now in further conformity with the procedure prescribed in Section 2.34(b) of. its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Louis Greenberg & Son, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 932 Broadway, New York, New York. Respondents Samuel Greenberg and Aaron Greenberg are officers of Louis Greenberg & Son, Inc., a corporation. They formulate, direct and control the policies, acts and practices of said corporation. Their address is the same as that of the corporate respondent. Respondents are importers and wholesalers of toys and novelty items including leis.

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 Louis Greenberg & Son, Inc., a corporation, and its officers, and Samuel Greenberg and Aaron 470-536—73——_97 1528 FEDERAL: TRADE COMMISSION DECISIONS Decision and Order 78 E.T.C.

Greenberg, 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 the terms “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 the complaint, of the flammable nature of said products and effect the recall of said products from such customers.

It is further ordered, That the respondents herein either process the products that 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. 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 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 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 October 29, 1969, 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 maaS 1525 ad terial. or combinations ‘thereof i in. a weig’ square yard, or: any pring fabri :

raised | fiber | race. eve, samples of not Jess than one square ‘such oo fabric, or. related 3 ee material with this poner a Baa ore:

It is further. ordered h Ine., a corporation, and 1 a ‘Aaron: Greenberg; individually; f.said sorporation — ; sand respondents’ representatives agents and employees through. any ge corporate or other: device, . in connection with the advertising, offerang for. sale, ‘sale or distribution. of their products: in ‘commerce, as -. “commerce”’ js defined in Federal ‘Trade Commission. - Act, do forthwith cease and desist from. representing 1 their products. to ‘be “flameoe proof”: unless and. until such products are. flameproofed to. such an: = extent that they will not ignite; burn or glow. : ee [tis further: ordered, That respondents am o Teast 30 days: prior to any: proposed. change: fy 1 the Commission at 2 — nthe. corporate respond- ae ents: such as. dissolution, assignment. or sale. “resulting in the ‘emerg- : -ence of a successor corporation, | the: creation or. ‘dissolution of subsid- eae ~ jaries. or any other change in. the corporatior which may. affect Oe compliance obligations arising | ut of the order. - : - Tb 4s: further: ordered, That the respondent corporation. shall forth- ch : with distribute. a, copy of. this. order: to each. of its /operatine divi- 3° sions:

Its jurther. ordered, That ‘the ‘yespondents herein shal , —axty. (60). days after service upon. them of this order, file. with the ae : Commission a report in writing setting forth in detail. the. manner “3 and form: in which they have enone with this order.