Carlson Originals, Inc

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In tar Marrer or CARLSON ORIGINALS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE WOOL PRODUCTS LABELING ACTS Docket C-2228. Complaint, June 1, 1972—Decision, June 1, 1972 Consent order requiring a New York City manufacturer of ladies’ apparel to cease misbranding its wool products.

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 Carlson Originals, Inc., a corporation, and Harvey Axelrod and Stanley Axelrod, individually and as officers of said corporation sometimes hereinafter referred to as respondents have violated the provisions of said Acts ard the rules and regula- Complaint 80 F.T.C.

tions promulgated under the Wool Products Labeling Act of 1939, 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 Carlson Originals, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondents Harvey Axelrod and Stanley Axelrod are officers of the corporate respondent. They formulate, direct and control the acts, practices and policies of the said corporate respondent including those hereinafter set forth.

Respondents are manufacturers of ladies’ apparel with their offices and principal place of business located at 512 Seventh Avenue, New York, New York.

Par. 2. Respondents, now and for some time last past have manufactured for introduction into commerce, have introduced 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 product” is defined therein.

Par. 8. Certain of said wool products were misbranded by the respondents 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 woo! products, but not limited thereto, were wool products, namely ladies’ coats and suits, stamped, tagged, labeled or otherwise identified as 100 percent. Wool, whereas in truth and in fact, such fabric contained substantially different fibers and amounts of fibers than represented.

Par. 4. Certain of said wool products were further misbranded by respondents 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.

Among such misbranded wool products. but not limited thereto. were wool products, namely ladies’ coats and suits. with Jabels on or affixed thereto, which failed to disclose the percentage of the total fiber weight of the said wool products, ex:lusive of ornamentation not CARLSON ORIGINALS, INC., ET AL. 883 881... Decision and Order exceeding 5 percentum of said total fiber weight, of (1) wool; (2) reprocessed wool; (3) reused wool; (4) each fiber other than wool, when said percentage by weight of such fiber was 5 percentum or more; and (5) the aggregate of all other fibers. Par. 5. The acts and practices of the respondents 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. 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 Wool Products Labeling 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 Carlson Originals, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Decision and Order; 80 F.T.C.

Respondents Harvey Axelrod and Stanley Axelrod are officers of said corporation. They formulate, direct and control the policies, acts and practices of said corporation.

Respondents are manufacturers of ladies’ apparel with their office and principal place of business located at 512 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 Carlson Originals, Inc., a corporation, its successors and assigns, and its officers, and Harvey Axelrod and Stanley Axelrod, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or through any corporation, subsidiary, division or other device. in connection with the introduction, manufacture for introduction into commerce, or the offering for sale, sale, transpcrtation, distribution, delivery for shipment or 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 such 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 1989.

It is further ordered, That respondents 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 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. LEO PAYNE PONTIAC, INC., ET AL. 885 Complaint