Perleyoudene Co., Inc

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

In THe Marrer or PERLE-YOUDENE Coo., INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL. TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-1996. Complaint, Aug. 8, 1971—Decision, Aug. 3, 1971 Consent order requiring a Los Angeles, Calif., seller and distributor of various fabrics and materials, including sheer fabrics of approximately 80 percent acetate and 20 percent nylon, to cease violating the Flammable Fabrics Act by importing and 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 Perle-Youdene Co., Inc., a corporation, and Arthur Cohen, 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 respéct as follows: , Paracraru 1. Respondent Perle-Youdene Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of “the State of Delaware, with its office and principal place of business located at 2414 South Broadway, Los Angeles, California. Respondent Arthur Cohen is the principal officer of the aforesaid corporation. He formulates, directs and controls the acts, practices and policies of said corporation. His address is the same as that of the corporate respondent.

Respondents sell and distribute various fabrics and materials. 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 conimerce, and have sold or delivered after sale or shipment in commerce, fabrics as the terms “commerce” and “fabric” are defined in the Flammable Fabrics Act, ‘as amended, which fabrics failed to conform to an applicable standard or regulation continued in effect, issued or 470-883—73: 12 168 FEDERAL TRADE .COMMISSION.. DECISIONS Complaint 7 FE.C.

amended under the provisions of the Flammable Fabrics Act, as amended.

Among such fabrics mentioned hereinabove were certain sheer fabrics with a fiber content of approximately 80 percent Acetate and 20 percent Nylon.

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 OrpDER 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, an 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 Perle-Youdene Co., Inc., is a corporation organized, existing and doing’ business under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at 2414 South Broadway, Los Angeles, California. FMT A Ua ssaas ww, yout ee voce 167. . Decision and Order - Respondent Arthur Cohen is the principal officer of said corpora-~ tion. He formulates, directs and controls the policies, acts and practices of said corporation.

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 Perle-Youdene Co., Inc., a corporation,.and its officers, and Arthur Cohen, 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 fabric, product or related material as the terms “commerce,” “fabric,” “product” and “related material” are defined in the Flammable Fabrics Act as amended, which fabric, product or related material fails to conform to an applicable standard or regulations continued in effect, issued or amended under.the provisions of the aforesaid Act. _ 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’ intention as to compliance with this order. This interim special report shall also advise the Commission fully and specifically concerning the identity of the fabric which gave rise to the complaint, (1) the amount of such fabric in inventory, (2) any action taken to notify customers of the flammability of such fabric and the results thereof and (3) any disposition of such fabric since September 9, 1969. Such report shal] further inform the Commission whether respondents have in inventory any fabric, product or related material having a plain surface and made of silk, rayon or cotton or combinations thereof in a weight of two ounces or less per square yard or with a raised fiber surface and made of cotton, rayon, acetate and nylon 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 less than one square yard of material. It is further ordered, That the respondents herein either process the fabrics which gave rise to this complaint so as to bring them within the applicable flammability standards of the Flammable Fabrics Act, as amended, or destroy said fabric.

170 FEDERAL TRADE -COMMISSION DECISIONS Decision and ‘Order 19 ETC.

Lt 1s further ordered, That 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 emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporation which may effect 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.