Sutton Lane Corporation

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In toe Marrer or SUTTON LANE CORPORATION CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-2031. Complaint, Sept. 8, 1971—Decision, Sept. 8, 1971 Consent order requiring a North Oxford, Mass., manufacturer and marketer of yarn to cease misbranding and falsely invoicing its wool products. 386 Complaint Complaint Pursuant to the provisions of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Sutton Lane Corporation, a corporation, hereinafter referred to as respondent has violated the provisions of said Acts and the rules and regulations promulgated under the Wool Products Labeling Act of 1989, and it appearing to the Commission. that a proceeding by it in respect thereof would be in the public in- _ terest, hereby issues its complaint stating its charges in that respect as follows:

Paracrarn 1. Respondent Sutton Lane Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the Commonwealth of Massachusetts. Respondent is engaged in the manufacturing and marketing of yarns which it sells throughout northeastern United States. Its office and principal place of business is located at North Oxford, Massachusetts.

Par. 2, Respondent, now and for some time last past, has introduced into commerce, manufactured for introduction into commerce, sold, transported, distributed, delivered for shipment, shipped, and offered for sale, in commerce, as “commerce” is defined in said Wool Products Labeling Act of 1939, wool products as “wool products” is defined therein. — Par. 3. Certain of said wool products were misbranded by the respondent within the intent and meaning of Section 4(a)(1) of the Wool Products Labeling Act of 1939, and the rules and regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, or otherwise identified with respect to the character and amount of the constituent ‘fibers contained therein. Among such misbranded wool products, but not limited thereto, were yarns stamped, tagged, labeled, or otherwise identified as containing “85% Woolen fibers, 15% Mohair” whereas in truth and in fact, such yarns contained substantially different fibers and amounts of fibers than represented.

Par. 4. Certain of said wool products were further misbranded by respondent in that they were not stamped, tagged, labeled, or otherwise identified as required under the provisions of Section 4(a) (2) of the Wool Products Labeling Act of 1939 and in the manner and form as prescribed by the Rules and Regulations promulgated under . said Act.

Complaint 79 ETC.

Among such misbranded wool products, but not limited thereto, were yarns with labels on or affixed thereto, which failed to disclose the percentage of the total fiber weight of the said wool product, ex- . clusive of ornamentation not exceeding 5 per centum of said total fiber weight of: (1) wool fibers; (2) reprocessed wool; (3) reused wool; (4) each fiber other than wool when said percentage by weight of such fiber was five per centum or more; and (5) the aggregate of all other fibers.

~ Par. 5. The acts and practices of the respondent as set forth above were, and are, in violation of the Wool Products Labeling Act of 1939 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. 6. Respondent is now, and for some time last: past, has been engaged in the advertising, offering for sale, sale, and. distribution of certain products, namely yarns. In the course and ‘conduct of its business as aforesaid, respondent now causes and for some time last past, has caused its said products, when sold, to be shipped from its place of business in the Commonwealth of Massachusetts to purchasers located in various other States of the United States, and maintains and at all times mentioned herein has maintained, a substantial course of trade in said products in commerce, as “commerce” is defined in the Federal Trade Commission Act.

Par. 7. Respondent in the course and conduct of its business has made statements on invoices to its customers, misrepresenting the fiber content of certain of its products.

Among such misrepresentations, but not limited thereto, were statements setting forth the fiber content thereof as “85% Wool, 15% Mohair,” whereas, in truth and in fact, the product was not as represented but contained substantially different fibers and amounts of fibers than represented.

Par. 8. The acts and practices set out in Paragraph Seven have the tendency and capacity to mislead and deceive the purchasers of said products as to the true content thereof.

Par. 9. The aforesaid acts and practices of respondent, as herein alleged in Paragraph Seven 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. ' 386 Decision and Order Decision AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent 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 chargé respondent with violation of the Federal Trade Commission Act and the Wool Products Labeling Act of 1939; and The respondent and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by. the respondent 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 respondent 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 respondent has 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 Sutton Lane Corporation is a corporation organized, existing and doing business under and by virtue of the laws of the Commonwealth of Massachusetts. , Respondent is engaged in the manufacturing and marketing of yarns which it sells throughout northeastern United States. Its office and principal place of business is located at North Oxford, Massachusetts.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest. .

ORDER It is ordered, That respondent Sutton Lane Corporation, a corporation, and its officers, and respondent’s representatives, agents and employees, directly or through any corporate or other device, in connec: tion with the manufacture for introduction into commerce or offering for sale, sale, transportation, distribution, delivery for shipment or Decision and Order: 79 F.T.C.

shipment, in commerce, of wool products, as “commerce” and “wool product” are defined in the Wool Products Labeling Act of 1939, do forthwith cease and desist from misbranding wool products by: 1. Falsely and deceptively stamping, tagging, labeling, or otherwise identifying such products as to the character or amount of the constituent fibers contained therein. 2. Failing to securely affix to or place on, each such product a stamp, tag, label, or other means of identification showing in a clear and conspicuous manner, each element of information required to be disclosed by Section 4(a) (2) of the Wool Products Labeling Act of 1939.

It is further ordered, That respondent Sutton Lane Corporation, a corporation, and its officers, and respondent’s representatives, agents and employees, directly or through any corporate or other device, in connection with the offering for sale, sale or distribution of yarns or other products, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting the character or amount of constituent fibers contained in such products on invoices or shipping memoranda applicable thereto, or in any other manner.

It is further ordered, That respondent notify the Commission at least 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.

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 respondent herein shall, within sixty (60) days after service upon it of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.