Peach Rug Company, Inc

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In. .THE Marrer oF PEACH RUG COMPANY, INC, ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE * FEDERAL TRADE COMiEIBSYON: AND THE FLAMMABLE: FABRICS ACTS _ Docket C-226 4. Complaint, Aug. 2, 1972—Decision, Aug. 2, 1972, Consent order requiring, among other things, an Athens, Ga., manufacturer of. carpets and rugs to cease manufacturing, importing or selling any product, fabric, or related material which fails to conform to an applicable standard of flammability or regulation issued or amended 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 Peach Rug Company, Inc., a corporation, trading as Associated Rug Mills of Georgia, and Armcor Carpet Mills, and Herman B. Upchurch, individually and as an officer of the said corporation, hereinafter referred to as respondents, have violated the provisions of the 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 Peach Rug Company, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia. Respondent Herman B. Upchurch, is an officer of the said corporate respondent. He formulates, directs, and controls the acts, practices, and policies of the said corporation. 198 FEDERAL TRADE “COMMISSION: ‘DECISIONS Decision:and Order 81 EVT.G, Respondents are engaged in the manufacture and sale ‘of carpets and: rugs, with their principal place of: business. located at 8 Hull Road, Box. — 1112, Industrial Park, Athens, Georgia. :

Par. 2. Respondents are now and for's some time last past have been engaged in the manufacture: for: sale, sale and offering for sale, in: commerce, and: have: introduced, delivered for introduction, transported and caused to be transported i 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 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 carpets and rugs Styles Derby and Hialeah subject to Department of Commerce Standard For The Surface Flammability of Carpets and Rugs (Poe FF 1-70). , Par. 8. The aforesaid. acts and practices, of respondents ¥ were and a 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 ORrpER 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 therafter 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 respondenta and counsel for the Commission having thereafter executed an agreement containing | a consent order, an admission by. the respondents of all.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 inatter and having determined that it had reason to believe that the respondents ‘| ~PEACH. RUG: CO., INC:,.BT AL. ..-. 199 197i Decision, and.:Order have violated the said Acts, and that. complaint should- issue. stating its charges in that respect, and-having thereupon accepted the exectted 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. i issues its: complaint, makes the. following anviadiotiphal find: ings, and. enters the ‘following order: a 1. Respondent Peach :Rug- ‘Company, Inc., is ‘a: . corporation organized, existing and -doing business ‘under; and: by. wigbus; of: the: laws of the State. of Georgia. : §. sb coe ;

- Respondent; Herman.B., “Upehureh is is-an’ n oficer: af the said ‘corpori: tion. He formulates, directs, and controls the acti, practices: and. ‘poli eies: of the said.corporation.... ... : :

- Respondents are engaged in. the. manufacture: ‘and. sale of; ‘catpets and rugs; with the office and. principal place.of business of:respondents located: at 8 Hull Road; Box 1112, Industrial: Park, Athens, Georgia. ‘2, The Federal: Trade Commission: chas jurisdiction ‘of the :subject; matter of this proceeding and of the respondents and. the; °: proceeding is in . the public interest. : Dot oT Lgsed et yest : : : weitere Ps onder Be tbes Peet It is ordered, That respondent Peach Rug Company, Inc., a corporation, trading as Associated Rug Mills of Georgia, and Armcor Carpet Mills, or under any other name or names, its successors and assigns, and its officers, and respondent Herman B. Upchurch, 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, offering for sale, in com-, merce, 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 an applicable. standard .or regulation continued in effect, issued or amended under the provisions of the aforesaid Act. : : ‘ ;

Itis further ordered; That respondents notify all of their customers who have purchased or to whom have been -delivered the products Decision and Order 81 EVE.C.

which give rise to this. complaint, of the flammable nature of said products and effect the recall of said products from such customers. Itis 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. Itis further ordered, That 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 identity of the purchasers of said products, (3) the amount of said products’on hand and in the channels of:commerce, (4) 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, (5) any disposition of said products since March 6, 1972, and (6) 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 to destroy said products, and the results of such action. Respondents will submit with their report, 2 complete description of each style of carpet or rug currently in inventory or production. Upon request, respondents will forward to the Commission for testing a sample of any such carpet or rug.

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 1 in the corporation which may affect compliance obligations arising out of the order. Tt is further ordered, That the individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment and of his affiliation with a new business or employment. Such notice shall include respondent’s current business or employment in which he is engaged as well as a description of his duties and responsibilities.

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. BORMAN FOOD STORES, INC., ET AL, 201 Complaint