Weil & Co., Inc

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

In the Marrer or WEIL & CO., INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE TRUTH IN LENDING ACTS Docket C-2268. Complaint, Aug. 9. 1972—Decision, Aug. 9, 1972. Consent order requiring, among other things, a New York City retailer of furniture, electrical appliances, and other merchandise, to cease violating the Truth in Lending Act by failing to disclose to customers the minimum periodie payment required for open end credit; the time period within which extended credit may be paid without finance charge; stating contradictory terms on initial and periodic disclosure statements; and any other disclosures required by Regulation Z of the said Act. 256 FEDERAL TRADE. COMMISSION. DECISIONS’ Complaint...) 81 FVT-C.

: Complaint - Pursuant to the provisions of the Truth in Lending Act and the implementing regulation promulgated thereunder, and the Federal Trade Commission ‘Act, and by virtue of the authority vested in.it by said Acts, the Federal Trade Commission, having reason. to believe that Weil:& Co., Inc., a corporation, and Robert Weil, individually and.as manager in charge of credit of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts * and’ regulation, 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 i in that, respect as follows: Paracrarn 1. Respondent Weil & Co., Inc., is a corporation -organized, existing and doing business under and by virtue of the laws of the State of ‘New York, with its principal office and place of business located at 37-43 West. 14th Street, New York, ‘New York. . Respondent Robert Weil is manager in charge of credit of the corporate respondent.. He formulates, directs and controls the consumer credit policies, acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His address is the same as that of the corporate respondent. Par. 2. Respondents are now, and for some time last past have been engaged in the sale of furniture, electrical appliances, and other mer- . chandise to the public.

Par. 3. In the ordinary course and conduct of their business, as aforesaid, respondents regularly extend consumer credit, as “consumer credit” is defined in Regulation Z, the implementing regulation of the Truth in Lending Act, duly promulgated by the Board of Governors of the Federal Reserve Systems.

Par. 4. Respondents, subsequent to July 1, 1969, ‘in the: ordinary course and conduct of their business, extend open end credit to their customers in connection with their credit sales, as “open end credit” and “credit sale” are defined in Regulation Z. In connection with their open end credit agreements, and prior to the first transaction made under such agreements, respondents make disclosures to each customer describing the credit terms of these open end accounts as required by Section 226.7(a) of Regulation Z. Furthermore, in connection with their open end credit agreements, respondents have caused to be delivered, and are delivering to their customers, periodic statements, as required by Section 226.7(b) of Regulation Z. Par. 5. In the open end credit disclosure statements and periodic statements used by respondents referred to in Paragraph Four hereof, respondents:

WEIL AND CO., INC,,, BT. AL. | 257:

255 Decision and Order 1. Failed to disclose, before. the -first transaction was. made,.the minimum periodic payment required, as required. by Section 226. a _ (a) (8) of Regulation Z.

2. Failed to disclose, before the. first transaction was made, the time period within which any credit extended may be paid without incur-: ring a finance charge, as required by Section 226.7(a) (1) of Regulation Z.

3. Have stated contradictory terms on their initial and. periodic disclosure statements concerning the time period within which any credit extended may be paid without incurring an additional finance charge, in violation of Section 226.6(c) of Regulation Z. _ 4, Required their customers to execute a new note each time additional credit was extended for the purpose of consolidating the old and new credit balances which constituted a consolidation of credit other than open end, as defined in Section 226.8(j) of Regulation Z, and thereafter characterized their credit plan as, and made disclosures. consistent with, an open end credit plan as “open end credit” is defined in Regulation Z.

Par. 6. Pursuant to Section 103(q) of the Truth in Lending Act, respondents’ aforesaid failures to comply with the provisions of Regu- . . lation Z constitute violations of that Act and pursuant to Section 108 thereof, respondents have thereby violated the Federal Trade Commission Act.

Decision anpD 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 New York Regional Office 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 Respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by 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 Act, and that complaint should issue stating its Decision and Order 81 F.T.C.

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 Weil & Co., Inc., is a corporation 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 37-43 West 14th Street, New York, New York. Respondent Robert Weil is manager in charge of credit of said corporation. He formulates, directs and controls the consumer credit policies, acts and practices of said corporation and his principal office and place of business is located at the above stated address. 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 respondent Weil & Co., Inc., a corporation, its successors and assigns and respondent Robert Weil, individually and as an employee of said corporation, and respondents’ officers, agents, ' representatives, and employees, directly or through any corporation, subsidiary, division or other device, in connection with any extension of consumer credit or any advertisement to aid, promote or assist directly or indirectly any extension of consumer credit as “consumer credit” and “advertisement” are defined in Regulation Z (12 C.F.R. § 226) of the Truth in Lending Act (Pub. L. 90-821, 15 U.S.C. 1601 et seg.), do forth with cease and desist from: 1. Failing to disclose the minimum periodic payment required for their open end credit plan before the first transaction is made, as required by Section 226.7(a) (8) of Regulation Z. 2. Failing to disclose, before the first transaction is made, the time period within which any credit extended may be paid without incurring a finance charge, as required by Section 226.7(a) (1) of Regulation Z.

8. Stating contradictory terms on their initial and periodic disclosure statements concerning the time period within which any credit extended may be paid without incurring an additional finance charge, in violation of Section 226.6(c) of Regulation Z. 4, Requiring their customers to execute a new note each time additional credit is extended for the purpose of consolidating the old and new credit balances which constitutes a consolidation WEIL AND CO., INC., ET AL. 259 © 255 Decision and Order of credit other than open end, as defined in Section 226.8(j) of Regulation Z, and thereafter characterizing their credit. plan as, _ ane making disclosures consistent with, an open end credit plan, “open end credit” is defined in Regulation Z. , S. Failing in any consumer credit transaction or advertisement, ; to make all disclosures determined in accordance with Sections 226.4 and 226.5 of Regulation Z, in the manner, form and amount required by Sections 226.6, 226. ,5 1 2 1 8 7 1387 1006 103 39 95.125587 226.8,5 1 2 1 8 8 1510 1006 103 41 96.804024 226.9,5 1 2 1 8 9 1630 998 115 50 96.868515 226.105 1 2 1 8 10 1765 1004 70 51 95.093903 ands 1 2 1 8 11 1853 1007 113 50 96.695930 226.114 1 2 1 9 0 726 1051 327 42 -1 5 1 2 1 9 1 726 1051 40 32 95.990486 of5 1 2 1 9 2 786 1052 212 41 93.215714 Regulations 1 2 1 9 3 1017 1053 36 33 90.814987 Z.3 1 2 2 0 0 640 1077 1329 324 -1 4 1 2 2 1 0 683 1077 1286 71 -1 5 1 2 2 1 1 683 1103 38 31 71.166756 It5 1 2 2 1 2 734 1103 32 31 91.102516 is5 1 2 2 1 3 779 1103 141 41 96.697441 furthers 1 2 2 1 4 935 1104 156 42 96.421005 ordered,5 1 2 2 1 5 1104 1104 95 33 96.569939 That5 1 2 2 1 6 1213 1105 224 41 96.268639 respondents5 1 2 2 1 7 1450 1082 140 65 94.864639 delivers 1 2 2 1 8 1595 1117 21 21 85.966476 a5 1 2 2 1 9 1623 1092 93 56 93.761299 copy5 1 2 2 1 10 1730 1106 40 32 96.918259 of5 1 2 2 1 11 1782 1077 72 61 95.042702 this5 1 2 2 1 12 1860 1078 109 66 96.227707 order4 1 2 2 2 0 642 1154 1326 44 -1 5 1 2 2 2 1 642 1156 35 29 96.564087 to5 1 2 2 2 2 694 1163 94 22 96.395050 ceases 1 2 2 2 3 803 1154 69 32 96.661118 ands 1 2 2 2 4 888 1154 107 33 96.934486 desist5 1 2 2 2 5 1009 1157 36 30 96.934486 to5 1 2 2 2 6 1062 1155 48 32 96.311241 all5 1 2 2 2 7 1125 1150 138 48 96.381111 presents 1 2 2 2 8 1279 1156 67 32 96.686874 ands 1 2 2 2 9 1361 1156 121 32 96.442673 futures 1 2 2 2 10 1495 1157 179 40 96.220238 personnel5 1 2 2 2 11 1690 1157 40 31 96.931618 of5 1 2 2 2 12 1743 1157 225 41 96.339188 respondents4 1 2 2 3 0 643 1204 1326 47 -1 5 1 2 2 3 1 643 1204 154 41 96.534882 engaged5 1 2 2 3 2 814 1204 37 33 96.422882 in5 1 2 2 3 3 866 1205 60 32 96.355644 thes 1 2 2 3 4 943 1205 269 33 96.355644 consummation5 1 2 2 3 5 1228 1206 40 32 96.686157 of5 1 2 2 3 6 1284 1217 67 31 96.885521 any5 1 2 2 3 7 1367 1207 177 44 96.838974 extensions 1 2 2 3 8 1558 1207 39 32 96.631645 of5 1 2 2 3 9 1612 1217 178 31 93.277084 consumers 1 2 2 3 10 1804 1207 165 41 83.990036 credit.or4 1 2 2 4 0 640 1253 1326 48 -1 5 1 2 2 4 1 640 1254 38 32 96.667168 in5 1 2 2 4 2 695 1265 68 31 96.329330 any5 1 2 2 4 3 779 1259 116 37 96.825264 aspects 1 2 2 4 4 909 1256 42 32 96.741089 of5 1 2 2 4 5 964 1256 236 42 96.699516 preparation,5 1 2 2 4 6 1217 1257 161 42 96.434044 creation,5 1 2 2 4 7 1394 1253 40 37 96.996140 or5 1 2 2 4 8 1447 1258 142 42 96.622505 placing5 1 2 2 4 9 1603 1258 40 32 97.015808 of5 1 2 2 4 10 1655 1257 227 44 96.423286 advertising,5 1 2 2 4 11 1897 1258 69 32 96.594826 anda 1 2 2 5 0 640 1306 1327 45 -1 5 1 2 2 5 1 640 1306 77 32 94.571945 that5 1 2 2 5 2 734 1307 225 40 96.741356 respondents5 1 2 2 5 3 974 1318 117 21 96.773743 secures 1 2 2 5 4 1107 1319 20 21 96.841629 a5 1 2 2 5 5 1144 1307 122 43 96.521767 signed5 1 2 2 5 6 1283 1311 181 30 96.306870 statements 1 2 2 5 7 1481 1309 287 52 95.839546 acknowledging5 1 2 2 5 8 1782 1309 128 41 95.839546 receipts 1 2 2 5 9 1927 1309 40 32 96.828896 of4 1 2 2 6 0 643 1356 637 45 -1 5 1 2 2 6 1 643 1356 76 33 96.355667 said5 1 2 2 6 2 733 1357 103 32 95.696075 orders 1 2 2 6 3 848 1358 93 31 95.696075 from5 1 2 2 6 4 955 1358 82 32 96.452713 each5 1 2 2 6 5 1051 1358 89 39 44.128792 such5 1 2 2 6 6 1147 1370 133 31 0.988533 person.3 1 2 3 0 0 640 1382 1330 323 -1 4 1 2 3 1 0 682 1382 1288 70 -1 5 1 2 3 1 1 682 1408 38 31 84.064072 It5 1 2 3 1 2 739 1407 29 33 93.792305 is5 1 2 3 1 3 788 1408 141 41 96.409950 furthers 1 2 3 1 4 948 1409 154 41 96.629684 ordered,5 1 2 3 1 5 1122 1410 91 32 95.481514 That5 1 2 3 1 6 1233 1410 224 42 96.536751 respondents5 1 2 3 1 7 1474 1410 117 42 96.829834 notify5 1 2 3 1 8 1608 1385 60 58 96.965363 thes 1 2 3 1 9 1684 1382 235 64 93.060173 Commissions 1 2 3 1 10 1933 1413 37 30 94.871307 at4 1 2 3 2 0 643 1458 1327 46 -1 5 1 2 3 2 1 643 1458 85 32 96.923973 least5 1 2 3 2 2 744 1458 112 42 96.058083 thirty5 1 2 3 2 3 880 1459 75 44 85.408287 (380)5 1 2 3 2 4 979 1460 86 41 96.377213 days5 1 2 3 2 5 1081 1461 98 40 96.931648 prior5 1 2 3 2 6 1194 1464 37 28 95.984406 to5 1 2 3 2 7 1248 1472 68 31 96.239410 any5 1 2 3 2 8 1332 1462 170 41 96.239410 proposed5 1 2 3 2 9 1517 1461 155 42 96.395210 changes 1 2 3 2 10 1663 1473 38 20 96.818909 in5 1 2 3 2 11 1714 1461 61 33 96.962234 thes 1 2 3 2 12 1790 1458 180 46 96.488205 corporate4 1 2 3 3 0 643 1502 1327 61 -1 5 1 2 3 3 1 643 1509 217 42 96.196083 respondent,5 1 2 3 3 2 879 1511 84 31 96.701820 such5 1 2 3 3 3 984 1521 38 21 96.919189 as5 1 2 3 3 4 1041 1502 214 61 96.912010 dissolution,5 1 2 3 3 5 1275 1512 218 42 96.468498 assignment,5 1 2 3 3 6 1505 1523 48 22 95.971970 or5 1 2 3 3 7 1564 1512 86 40 96.851509 sale,5 1 2 3 3 8 1669 1509 195 48 96.472282 resulting5 1 2 3 3 9 1854 1523 40 21 96.901726 in5 1 2 3 3 10 1907 1512 63 42 96.901726 thea 1 2 3 4 0 640 1560 1327 44 -1 5 1 2 3 4 1 640 1570 195 31 96.494202 emergence5 1 2 3 4 2 855 1560 39 33 96.461754 of5 1 2 3 4 3 913 1572 23 21 96.931046 a5 1 2 3 4 4 955 1572 172 21 96.932304 successors 1 2 3 4 5 1145 1562 230 46 96.677902 corporation,5 1 2 3 4 6 1394 1560 65 35 96.714371 thes 1 2 3 4 7 1473 1563 152 32 96.430275 creations 1 2 3 4 8 1642 1574 42 22 97.016815 or5 1 2 3 4 9 1703 1552 206 45 95.097260 dissolution5 1 2 3 4 10 1923 1562 44 37 95.097260 of4 1 2 3 5 0 643 1611 1327 45 -1 5 1 2 3 5 1 643 1611 231 42 96.260048 subsidiaries,5 1 2 3 5 2 889 1623 41 21 96.260048 or5 1 2 3 5 3 946 1623 68 31 96.787247 any5 1 2 3 5 4 1030 1613 98 31 96.787247 others 1 2 3 5 5 1143 1613 155 42 96.935417 changes 1 2 3 5 6 1289 1625 37 20 95.985252 in5 1 2 3 5 7 1339 1614 60 31 96.979141 thes 1 2 3 5 8 1413 1614 218 41 96.212410 corporations 1 2 3 5 9 1645 1614 112 42 96.844070 which5 1 2 3 5 10 1773 1625 80 31 96.577065 may5 1 2 3 5 11 1868 1614 102 41 91.494362 affect4 1 2 3 6 0 645 1637 911 68 -1 5 1 2 3 6 1 645 1662 211 41 95.865211 compliance5 1 2 3 6 2 866 1637 213 67 96.799431 obligations5 1 2 3 6 3 1092 1663 132 42 96.681747 arising5 1 2 3 6 4 1238 1668 60 28 96.543297 outs 1 2 3 6 5 1311 1665 40 31 95.898285 of5 1 2 3 6 6 1361 1665 73 31 95.898285 this5 1 2 3 6 7 1446 1665 110 32 96.784943 order.3 1 2 4 0 0 643 1713 1327 200 -1 4 1 2 4 1 0 685 1713 1285 45 -1 5 1 2 4 1 1 685 1713 37 31 70.209717 It5 1 2 4 1 2 734 1713 30 31 70.209717 is5 1 2 4 1 3 776 1713 141 41 96.663071 furthers 1 2 4 1 4 930 1714 154 41 96.537598 ordered,5 1 2 4 1 5 1096 1715 94 31 96.537598 That5 1 2 4 1 6 1202 1715 224 41 96.069122 respondents5 1 2 4 1 7 1437 1716 99 42 96.831474 shall,5 1 2 4 1 8 1549 1715 121 32 96.831474 within5 1 2 4 1 9 1681 1715 91 41 96.715645 sixty5 1 2 4 1 10 1792 1715 73 42 96.763191 (60)5 1 2 4 1 11 1884 1715 86 41 96.497353 days4 1 2 4 2 0 646 1763 1324 44 -1 5 1 2 4 2 1 646 1763 91 32 95.736221 after5 1 2 4 2 2 749 1764 128 32 96.519592 services 1 2 4 2 3 887 1775 93 31 95.721176 upon5 1 2 4 2 4 993 1765 95 32 95.721176 them5 1 2 4 2 5 1097 1765 42 32 96.682953 of5 1 2 4 2 6 1148 1765 69 32 96.694260 this5 1 2 4 2 7 1229 1766 111 41 96.998886 order,5 1 2 4 2 8 1351 1766 58 32 96.998886 files 1 2 4 2 9 1419 1766 84 31 96.921440 with5 1 2 4 2 10 1514 1767 59 31 96.515068 thes 1 2 4 2 11 1584 1765 226 35 96.202042 Commissions 1 2 4 2 12 1822 1777 22 20 96.267975 a5 1 2 4 2 13 1854 1769 116 37 96.474968 report4 1 2 4 3 0 646 1813 1324 44 -1 5 1 2 4 3 1 646 1813 36 32 96.107742 in5 1 2 4 3 2 697 1814 151 42 96.670753 writing,5 1 2 4 3 3 864 1815 128 42 96.907104 settings 1 2 4 3 4 1005 1815 100 33 96.327057 forth5 1 2 4 3 5 1120 1815 37 33 96.997131 in5 1 2 4 3 6 1173 1816 105 32 96.911278 details 1 2 4 3 7 1293 1817 58 31 96.451332 thes 1 2 4 3 8 1365 1827 143 21 96.122650 manners 1 2 4 3 9 1522 1817 68 32 96.248611 ands 1 2 4 3 10 1602 1817 95 31 95.315819 forms 1 2 4 3 11 1711 1816 37 32 96.111229 in5 1 2 4 3 12 1761 1816 113 33 96.271545 which5 1 2 4 3 13 1887 1816 83 41 96.811775 they4 1 2 4 4 0 643 1865 1285 48 -1 5 1 2 4 4 1 643 1865 88 31 96.721733 have5 1 2 4 4 2 748 1866 171 41 96.130112 complied5 1 2 4 4 3 937 1866 85 32 96.811394 with5 1 2 4 4 4 1039 1867 61 32 96.700104 thes 1 2 4 4 5 1115 1867 102 32 96.726044 orders 1 2 4 4 6 1233 1871 38 28 96.953522 to5 1 2 4 4 7 1287 1878 93 21 96.688126 ceases 1 2 4 4 8 1396 1868 69 31 96.364059 ands 1 2 4 4 9 1483 1867 106 32 96.090004 desist5 1 2 4 4 10 1603 1867 181 32 96.090004 contained5 1 2 4 4 11 1800 1866 128 47 94.325272 herein.2 1 3 0 0 0 1246 1964 124 5 -1 3 1 3 1 0 0 1246 1964 124 5 -1 4 1 3 1 1 0 1246 1964 124 5 -1 5 1 3 1 1 1 1246 1964 124 5 95.000000 2 1 4 0 0 0 952 2019 708 135 -1 3 1 4 1 0 0 952 2019 708 135 -1 4 1 4 1 1 0 1122 2019 368 34 -1 5 1 4 1 1 1 1122 2019 48 32 94.829491 In5 1 4 1 1 2 1189 2031 73 20 70.694336 toes 1 4 1 1 3 1283 2020 147 32 79.887436 Marrer5 1 4 1 1 4 1450 2031 40 22 90.644051 or4 1 4 1 2 0 952 2111 708 43 -1 5 1 4 1 2 1 952 2111 162 35 89.187965 GETTO5 1 4 1 2 2 1135 2113 28 31 90.892113 &5 1 4 1 2 3 1183 2112 172 42 90.892113 GETTO,5 1 4 1 2 4 1377 2112 104 41 91.463142 INC.,5 1 4 1 2 5 1503 2113 64 32 96.486603 ET5 1 4 1 2 6 1586 2112 74 33 94.938210 AL.2 1 5 0 0 0 688 2205 1240 82 -1 3 1 5 1 0 0 688 2205 1240 82 -1 4 1 5 1 1 0 688 2205 1240 34 -1 5 1 5 1 1 1 688 2205 157 23 96.602478 CONSENTS 1 5 1 1 2 860 2207 115 30 93.296280 ORDER,5 1 5 1 1 3 989 2207 84 32 91.648735 ETC.,5 1 5 1 1 4 1087 2208 42 21 95.612419 IN5 1 5 1 1 5 1144 2208 127 22 96.253929 REGARDS 1 5 1 1 6 1284 2208 41 22 95.605385 TO5 1 5 1 1 7 1339 2208 71 22 96.247490 THES 1 5 1 1 8 1424 2208 148 22 96.046616 ALLEGED5 1 5 1 1 9 1586 2208 203 22 95.776749 VIOLATIONS5 1 5 1 1 10 1802 2208 42 22 96.764061 OF5 1 5 1 1 11 1857 2208 71 22 96.827087 THEA 1 5 1 2 0 714 2256 1184 31 -1 5 1 5 1 2 1 714 2256 149 22 94.583885 FEDERAL5 1 5 1 2 2 871 2257 108 21 94.583885 TRADES 1 5 1 2 3 989 2258 220 22 96.266045 COMMISSIONS 1 5 1 2 4 1219 2259 72 21 96.931946 ANDS 1 5 1 2 5 1301 2259 70 22 96.299637 THES 1 5 1 2 6 1381 2259 69 22 96.055618 FURS 1 5 1 2 7 1458 2259 169 28 95.964424 PRODUCTS5 1 5 1 2 8 1637 2259 171 22 96.152390 LABELING5 1 5 1 2 9 1818 2258 80 22 96.750504 ACTS2 1 6 0 0 0 781 2334 1051 31 -1 3 1 6 1 0 0 781 2334 1051 31 -1 4 1 6 1 1 0 781 2334 1051 31 -1 5 1 6 1 1 1 781 2334 112 25 93.209839 Dockets 1 6 1 1 2 906 2334 117 25 77.176399 C-2269.5 1 6 1 1 3 1036 2335 172 30 96.275909 Complaint,5 1 6 1 1 4 1220 2336 72 29 95.010529 Aug.5 1 6 1 1 5 1303 2336 41 29 92.939705 10,5 1 6 1 1 6 1357 2336 249 29 81.514740 1972—Decision,5 1 6 1 1 7 1618 2336 72 29 95.880356 Aug.5 1 6 1 1 8 1701 2335 41 30 95.651276 10,5 1 6 1 1 9 1753 2335 79 25 95.106674 1972.2 1 7 0 0 0 646 2408 1324 112 -1 3 1 7 1 0 0 646 2408 1324 112 -1 4 1 7 1 1 0 646 2408 1324 34 -1 5 1 7 1 1 1 646 2408 127 26 94.674873 Consents 1 7 1 1 2 793 2410 86 24 96.957626 orders 1 7 1 1 3 899 2411 157 29 96.131783 requiring,5 1 7 1 1 4 1077 2418 105 23 96.286705 among5 1 7 1 1 5 1201 2412 85 25 96.751305 others 1 7 1 1 6 1306 2412 106 30 96.318024 things,5 1 7 1 1 7 1447 2418 4 19 95.654106 a5 1 7 1 1 8 1471 2412 71 25 96.645706 News 1 7 1 1 9 1561 2412 78 25 96.856956 Yorks 1 7 1 1 10 1660 2411 66 29 96.551353 City5 1 7 1 1 11 1746 2412 224 27 96.445915 manufacturer4 1 7 1 2 0 717 2451 1253 33 -1 5 1 7 1 2 1 717 2451 32 25 96.217918 of5 1 7 1 2 2 779 2451 51 25 96.270332 furs 1 7 1 2 3 860 2454 140 28 96.270332 products5 1 7 1 2 4 1032 2454 30 24 96.367355 to5 1 7 1 2 5 1093 2460 91 23 93.249252 cease,5 1 7 1 2 6 1217 2454 203 30 92.367790 misbranding5 1 7 1 2 7 1449 2455 59 24 96.102020 ands 1 7 1 2 8 1540 2454 179 30 96.102020 deceptively5 1 7 1 2 9 1750 2454 148 29 96.788818 invoicing5 1 7 1 2 10 1930 2454 40 25 96.724442 its4 1 7 1 3 0 717 2495 211 25 -1 5 1 7 1 3 1 717 2495 211 25 96.769760 merchandise.2 1 8 0 0 0 1204 2535 212 34 -1 3 1 8 1 0 0 1204 2535 212 34 -1 4 1 8 1 1 0 1204 2535 212 34 -1 5 1 8 1 1 1 1204 2535 212 34 81.660751 Complaint2 1 9 0 0 0 646 2618 1327 198 -1 3 1 9 1 0 0 646 2618 1327 198 -1 4 1 9 1 1 0 689 2618 1284 42 -1 5 1 9 1 1 1 689 2618 174 32 96.642235 Pursuant5 1 9 1 1 2 881 2622 37 28 95.929070 to5 1 9 1 1 3 936 2619 59 31 95.929070 thes 1 9 1 1 4 1013 2620 194 40 96.012375 provisions5 1 9 1 1 5 1226 2620 39 32 95.412971 of5 1 9 1 1 6 1283 2620 59 32 96.154587 thes 1 9 1 1 7 1360 2621 146 32 96.554848 Federal5 1 9 1 1 8 1525 2620 113 33 96.402878 Trades 1 9 1 1 9 1657 2619 227 34 96.659027 Commissions 1 9 1 1 10 1902 2619 71 32 96.663078 Acta 1 9 1 2 0 647 2669 1324 44 -1 5 1 9 1 2 1 647 2669 69 32 95.662567 ands 1 9 1 2 2 734 2669 59 32 96.179276 thes 1 9 1 2 3 811 2669 74 32 96.430489 Furs 1 9 1 2 4 903 2670 170 33 96.392334 Products5 1 9 1 2 5 1091 2671 171 42 96.523239 Labeling5 1 9 1 2 6 1279 2671 78 40 96.528275 Act,5 1 9 1 2 7 1377 2671 68 33 96.016785 ands 1 9 1 2 8 1463 2671 46 42 96.760193 by5 1 9 1 2 9 1527 2671 113 32 96.491310 virtues 1 9 1 2 10 1658 2671 39 31 96.491310 of5 1 9 1 2 11 1714 2671 59 31 96.780220 thes 1 9 1 2 12 1792 2670 179 42 95.921326 authority4 1 9 1 3 0 646 2720 1325 42 -1 5 1 9 1 3 1 646 2720 115 32 96.324745 vested5 1 9 1 3 2 778 2720 36 32 96.549347 in5 1 9 1 3 3 829 2720 28 32 96.342552 it5 1 9 1 3 4 872 2721 45 41 96.342552 by5 1 9 1 3 5 933 2721 76 32 96.089401 said5 1 9 1 3 6 1023 2722 96 40 96.693428 Acts,5 1 9 1 3 7 1134 2722 58 32 96.935600 thes 1 9 1 3 8 1205 2722 149 32 96.422531 Federal5 1 9 1 3 9 1369 2722 114 32 96.382889 Trades 1 9 1 3 10 1499 2721 236 41 96.432877 Commission,5 1 9 1 3 11 1750 2722 133 40 92.720367 having5 1 9 1 3 12 1899 2732 72 21 92.720367 rea-4 1 9 1 4 0 647 2771 1325 45 -1 5 1 9 1 4 1 647 2781 61 21 96.983345 sons 1 9 1 4 2 718 2773 36 30 96.983345 to5 1 9 1 4 3 765 2771 128 33 96.959602 believes 1 9 1 4 4 903 2772 79 31 96.679008 that5 1 9 1 4 5 993 2772 103 34 93.139313 Getto5 1 9 1 4 6 1107 2774 28 31 93.139313 &5 1 9 1 4 7 1146 2773 114 41 93.268135 Getto,5 1 9 1 4 8 1272 2773 83 43 93.216415 Inc.,5 1 9 1 4 9 1376 2785 10 20 96.971420 a5 1 9 1 4 10 1398 2773 227 41 96.481316 corporation,5 1 9 1 4 11 1637 2773 69 31 96.577301 ands 1 9 1 4 12 1717 2773 138 31 96.227615 Harold5 1 9 1 4 13 1867 2772 105 33 96.227615 Getto _ Complaint 81 F.T.C, and Irving Getto, 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 Fur Products Labeling Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the the public interest, hereby issues its complaint stating its charges in that respect as follows: a _ Paracraps 1. Respondent. Getto & Getto, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondents Harold Getto and Irving Getto are officers of the corporate respondent. They formulate, direct and control the policies, acts and practices of the corporate respondent including those hereinafter set forth. — Oo Respondents are manufacturers of fur products with their office and _ principal place of business located at 352 Seventh Avenue, New York, New York. — oo Par. 2. Respondents are now and for some time last past have been engaged in the introduction into commerce, and. in the manufacture for introduction into commerce, and in the sale, advertising, and offering for sale in commerce, and in the transportation and distribution in commerce, of fur products; and have manufactured for sale, sold, advertised, offered for sale, transported and distributed fur products which have been made in whole or in part of furs which have been shipped and received in commerce, as the terms “commerce,” “fur” and “fur product” are defined in the Fur Products Labeling Act. Par. 3. Certain of said fur products were misbranded in that they where falsely and deceptively labeled to show that fur contained therein was natural, when in fact such fur was pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Section 4(1) of the Fur Products Labeling Act.

Par. 4. Certain of said fur products were misbranded in that they were not labeled as required under the provisions of Section 4(2) of the Fur Products Labeling Act and in the manner and form prescribed by the rules and regulations promulgated thereunder. Among such misbranded fur products, but not limited thereto, were fur products with labels which failed to disclose that the fur contained in the fur products was bleached, dyed, or otherwise artificially colored, when such was the fact.

Par. 5. Certain of said fur products were falsely and deceptively invoiced by the respondents in that they were not invoiced as required by Section 5(b) (1) of the Fur Products Labeling Act and the rulesand regulations promulgated under such Act. GETTO AND GETTO, INC., ET AL. 261 259 Decision and Order Among such falsely and deceptively.invoiced fur products, but not limited thereto, were fur products covered by invoices which failed to disclose that the fur contained in the fur products was bleached, dyed, or otherwise artificially colored, when such was the fact. _ Par. 6. Certain of said fur products were falsely and deceptively _ invoiced in that certain of said fur products were invoiced to show that the fur contained therein was natural when in fact such fur was pointed, bleached, dyed, tip-dyed, or otherwise artificially colored, in violation of Section 5(b) (2) of the Fur Products Labeling Act. Par. 7. Respondents furnished false guaranties under Section 10(b). of the Fur Products Labeling Act with respect to certain of their fur products by falsely representing in writing that respondents had a continuing guaranty on file with the Federal Trade Commission when respondents in furnishing such guaranties had reason to believe that the fur products so falsely guaranteed would be introduced, sold, transported and distributed in commerce, in violation of Rule 48(c) of said rules and regulations under the Fur Products Labeling Act. and Section 10(b) of said Act.

Par. 8. The aforesaid acts and practices of respondents as herein alleged, are in violation of the Fur Products Labeling Act and the rules and regulations promulgated thereunder and constitute unfair methods of competition and unfair and deceptive acts and practices in commerce under 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 New York Regional Office 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 Fur Products Labeling Act; and The respondent .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 Decision and Order 81 F.T.C.

determined that it has 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 records _ 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 Getto & Getto, Inc., is a corporation 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 352 Seventh Avenue, New York,.N ew York.

Respondents Harold Getto and Irving Getto are officers of said corporation. They formulate, direct and control the policies, acts and practices of said corporation and their address is the same as that of said corporation. . , 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 .

Itis ordered, That Getto & Getto, Inc., a corporation, its successors and assigns, and its officers, and Harold Getto and Irving Getto, 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, or manufacture for introduction, into commerce, or the sale, advertising or offering for sale in commerce, or the transportation or distribution in commerce, of any fur product; or in connection with the manufacture for sale, sale, advertising, offering for sale, transportation or distribution, of any fur product which is made in whole or in part of fur which has been shipped and received in commerce, as the terms “commerce,” “fur” and “fur product” are defined in the Fur Products Labeling Act, do forthwith cease and desist from: A. Misbranding any fur product by:

1. Representing directly or by implication on a label that the fur contained in such fur product is natural when such fur is pointed, bleached, dyed, tip-dyed, or otherwise artificially colored.

2. Failing to affix a label to such fur product showing in words and in figures plainly legible all of the information required to be disclosed by each of the subsections of Section 4(2) of the Fur Products Labeling Act.

GETTO AND GETTO, INC., ET AL. 263 © 259 Decision and Order B. Falsely or deceptively invoicing any fur product by: 1. Failing to furnish an. invoice, as the term “invoice” ‘is defined in the Fur Products Labeling Act, showing in words and figures plainly legible all the information required to be disclosed by each of the subsections of Section 5(b) (1) of the Fur Products Labeling Act. , 2. Representing directly or by implication on an invoice that the fur contained in such fur product is natural, when such fur is pointed, bleached, dyed, tip-dyed, or otherwise artificially colored.

It ts further ordered, That Getto & Getto, Inc., a corporation, its successors and assigns, and its officers, and Harold Getto and Irving Getto, individually and as officers of said corporation, and respondents’ representatives, agents and employees, directly or through any corporation, subsidiary, division, or other device, do forthwith cease and desist from furnishing a false guaranty that any fur product is not misbranded, falsely invoiced or falsely advertised when the respondents have reason to believe that such-fur product may be intro- ’ duced, sold, transported, or distributed in commerce. 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.

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 respondents 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 the order to cease and desist contained herein.