Martin Disposables, Inc

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

Iw tee Matrrer or MARTIN DISPOSABLES, INC., rravrve as MARTIN HOSPITAL DISPOSABLES, ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket O0-2043. Complaint, Sept. 20, 1971—Decision, Sept. 20, 1971 Consent order requiring a Brooklyn, N.¥., manufacturer and distributor of wearing apparel, including disposable paper face masks and disposable paper caps, to cease violating the Flammable Fabrics Act by importing and selling any fabric which fails to conform to the standards of said Act. ComPLaIntT 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 Martin Disposables, Inc., a corporation, trading as Martin Hospita! Disposables, and Stephen Chapnick and Alfred Chapnick, 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 Complaint 7 F.T.C.

Flammable Fabrics Act, as amended, and it appear ing 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: 2 Paracrary 1. Respondent Martin Disposables, Inc., trading as Martin Hospital Disposables, is a corporation, organized, existing and doing business under and by virtue of the laws of the State of New York. Respondents Stephen Chapnick and Alfred Chapnick are officers of said corporate respondent. They formulate, direct and control the acts, practices and policies of said corporation. The respondents trade under the name of Martin Hospital Disposables and are engaged in the manufacture, sale and distribution of wearing apparel, including but not limited to disposable paper face masks and disposable paper caps, with their principal place of business located at 101 Richardson Street, Brooklyn, New York. Par. 2. Respondents are now and for some time last past have been engaged in the manufacture for sale, the sale or 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 products 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 disposable paper face masks and disposable paper caps.

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 caption 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 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 MARTIN HOSPITAL DISPOSABLES, ET AL. 449 447 Decision and Order 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 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 Martin Disposables, Inc., trading as Martin Hospital Disposables, is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Respondents Stephen Chapnick and Alfred Chapnick are officers of the corporate respondent. They formulate, direct, and control the acts, practices, and policies of said partnership. : Respondents are engaged in the manufacture and sale of wearing apparel, including but not limited to disposable paper face masks and disposable paper caps, with their office and place of business located at 101 Richardson (Street, Brooklyn, New York. 9. The Federal Trade Commission has jurisdiction of the subject matter of this preceeding and of the respondents, and the proceeding is in the public interest. _ ORDER It is ordered, That respondents Martin Disposables, Inc., a corporation, trading as Martin Hospital Disposables or under any other name or names, and its officers, and Stephen Chapnick and Alfred Chapnick, 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 450 FEDERAL TRADE COMMISSION DECISIONS:

Decision and Order 79 F.T.C.

material; or manufacturing for sale, selling, or offering for sale any product. made of fabric or related material which has been shipped and 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 any 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 this 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 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. 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, (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 from customers, and of the results thereof, (4) any disposition of said products since April 1970, and (5) any action taken or proposed to be taken to bring said procucts 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 inforin 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 of two ounces or less per square yard, or any product, fabric or related material having a raised fiber surface. Respondents shall submit samples of not less than one square yard in size of any such product, fabric, or related material with this report. Tt is 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 affect compliance obligations arising out of the order.

UEDLA SW VW. wt Ale zuL 447 Complaint 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.