Mekelburg Co., Inc

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Iw THE: “Marre OF .

THE MEKELBURG co., INC., “ET. AL.

CONSENT ORDER, ETC. zo) in “REGARD TO THE ALLEGED VIOLATION oF THE _ FEDERAL TRADE COMALISSION ‘AND THE FLAMMABLE FABRICS ACTS . - Docket 02240. Complaint, July 8; 1972-—Decision, July 8 3; 1972. Consent order requiring a New. York City importer and Jobber of. various close- - products which ‘fail to: conform: :to- aii. applicable standard“ of’ flamthability or regulation issued under, the provisions of, the:!Flammable Fabrics 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 the Mekelburg Co., Inc., a corporation, and Joseph Mekelburg, 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 respect as follows:

Paracrary 1. Respondent the Mekelburg Co., Inc., is a cor poration, organized, existing and doing business under and by virtue of the laws of the State of New York, with its office and principal place of business located at 118 West 27th Street, New York, New York. Respondent Joseph Mekelburg is an 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 are importers and jobbers of various close-out products including scarves.

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 THE’. MEKELBURG' CO.,INC., ET AL. 13 AQ: ‘Decision ‘and Order importation into the United States; and have imtroduced, delivered for introduction, transported and caused to be'transported in ‘commerce ‘and have sold or delivered after sale or shipment iri commerce, products as the terms “commerce” and “product” are‘defined in the Flammable ‘Fabrics Act, as amended, which-products failed to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the Flammable Fabriés. Act, ‘as amended. Among such products mentioned hereinabove were scarves. » Par. 3. The-aforesaid acts and practices of respondents were and are in violation of the Flammable Fabrics Act, as amended, and: the tules 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. - ‘Dacrsion AND Orver '.. 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, 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 entors the following order:

14 FEDERAL TRADE .COMMISSION :- DECISIONS Decision; and: Order 81 B.T-C.

. d,.Respondent,.the Mekelburg: Co., Inc., is .a corporation. organized, existing.and doing: business underand.by virtue.of. the laws of; the State.of New. York, with, its.office and’: principal. -place'.of business located. at-118: West, 27th Street; ‘New; York, New -York:: oa Respondent. Joseph. Mekelburg is. an.officer of |the- Mekelburg. Goi, Inc., _a. corporation. He formulates; directs and controls the acts, practices and. policies of said. ‘corporation. His. address i is the.same as that of said corporation... o.:i5...: va viet .., Respondents are importers and jobbers of vari ious: s closeout products including, scarves...

9. The: Federal. Trade. Commission, has, jurisdiction. of the subject matter of ‘this, proceodiig. a and.of the 1 respondents, and the Proceeding is in the public interest... poitive relate. hora, ; ORDER. :

It is ordered, That respondents the Mekelburg Co., Inc., a corporation, its successors and assigns, and its officers, and Joseph Mekelburg, 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: 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 material; or 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 an 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 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’ inten- . THE: MEKELBURG: CO., INC., ET..Al.. - AS $2205 be Decision;and Order tiohs as:to:compliance-with this.order, This, special. report, shall also advise ‘the ‘Gonmission: fully: and: specifically;concerning :(1): the.identity of the products which’ gave'riseto:'the eémplaint, (2) the number of said products in inventory, (3), 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 December '81;.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 aniended, ‘or destroy said products, and the results:of such action. Such report ‘shall: further:inform the Cormmission:.as:to whether or. not, re- Spondents have in inventory any product; fabric, or related material Hiavirig 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’shallisubmit samples of not less thanione square yard in size of any such product; fabric or‘related: material with this report. : i “Tt is further ordered; That the: respondénts notify the Commission at least 30 days prior to any: proposed changé‘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. [tis 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 inw which they have complied with this or der.