Custom Modes, Inc

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In THE Marrer or _ CUSTOM MODES, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL. TRADE COMMISSION, THE TEXTILE FIBER PRODUCTS IDENTIFICATION AND THE ELAMMABLE FABRICS ACTS Docket C-2209. Complaint, May 1, 1972—Decision, May 1, 1972 Consent order requiring a New York City manufacturer of ladies’ custommade gowns and dresses to cease importing or selling fabrics so highly flammable as to be dangerous when worn and failing to maintain proper records of fiber content of its textile fiber products. Complaint Pursuant to the provisions of the Federal Trade Commission Act, the Flammable Fabrics Act, as amended, and the Textile Fiber Products Identification Act and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Custom Modes, Inc., a corporation, and Edward Rudnick, 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 the Textile Fiber Products Identification Act, 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 Custom Modes, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Respondent Edward Rudnick is an officer of said corporate respondent. He formulates, directs, and controls the acts, practices and policies of said corporation. . The respondents are engaged in the business of the manufacture and sale of ladies’ custom-made gowns and dresses with their office and principal place of business located at 491 Seventh Avenue, New York, 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 the terms “commerce” and “product,” are defined in the Flammable Fabrics Act, as amended, which fail to conform to an applicable CUSTOM MODES, INC., ET AL. «.... 731 730 Decision and Order standard or regulation continued in effect, issued or amended under the provisions of the Flammable Fabrics Act, as amended. Among such products mentioned hereinabove are gowns and dresses.

Par. 8. 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. Par. 4. Respondents are now, and for some time last past have been, engaged in the introduction, delivery for introduction, manufacture for sale, sale, advertising, and offering for sale, in commerce, and in the transportation or causing to be transported in commerce, of textile fiber products; and have sold, offered for sale, advertised, delivered, transported and caused to be transported, textile fiber products, which have been advertised or offered for sale in commerce; and have sold, offered for sale, advertised, delivered, transported and caused to be transported after shipment in commerce, textile fiber products, either in their original state or contained in other textile fiber products, as the terms “commerce” and “textile fiber product” are defined in the Textile Fiber Products Identification Act. , Par. 5. Respondents have failed to maintain and preserve proper records showing the fiber content of textile fiber products manufactured by them in violation of Section 6(a) of the Textile Fiber Products Identification Act and Rule 39 of the rules and regulations promulgated thereunder.

Par. 6. The acts and practices of respondents as set forth in Paragraph Five were, and are, in violation of the Textile Fiber Products Identification Act and the rules and regulations promulgated thereunder, and constituted, and now constitute unfair and deceptive acts and practices and unfair methods of competition 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 preposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with Decision and Order 80 F.T.C.

violation of the Federal Trade Commission Act, the Textile Fiber Products Identification 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 (30) days, now in further conformity with the procedure prescribed in Section 2.84(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Custom Modes, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondent Edward Rudnick is an officer of the corporate respondent. He formulates, directs and controls the acts and practices and policies of said corporate respondent. Respondents are engaged in the business of the manufacture and sale of ladies’ custom-made gowns and dresses with their office and principal place of business located at 491 Seventh Avenue, New York, New York.

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 Custom Modes, Inc., a corporation, its successors and assigns and its officers, and Edward Rudnick individually and as an officer of said corporation, and respondents’ agents, representatives and employees, directly or through any corporation. subsidiary, division or other device, do forthwith cease and desist from manufacturing for sale, selling or offering for sale. in CUSTOM MODES, INC., ET AL. 733° 730 Decision and Order 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 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 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 the products 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 action 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 July 16, 1971, 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 material or combinations thereof in a weight of two ounces or less Decision and Order 80 F.T.C.

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.

It is further ordered, That respondents Custom Modes, Inc., its successors and assigns and its officers, and Edward Rudnick individually and as an officer of said corporation, and respondents’ agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the introduction, delivery for introduction, manufacture for introduction, sale, advertising or offering for sale, in commerce, or the transportation or causing to be transported in commerce, or the importation into the United States, of any textile fiber product; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, of any textile fiber product, which has been advertised or offered for sale in commerce; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, after shipment in commerce, of any textile fiber product, whether in its original state or contained in other textile fiber products, as the terms “commerce” and “textile fiber product” are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from failing to maintain and preserve proper records of fiber content of textile fiber products manuafctured by them as required by Section 6(a) of the Textile Fiber Products Identification Act and Rule 39 of the rules and regulations thereunder, It 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.

Zt is further ordered, That the corporate respondent shall forthwith distribute a copy of this order to each of its operating divisions. ft 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. BP OIL CORPORATION 735 Complaint