Florida State Constructors Service, Inc

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FLORIDA STATE CONSTRUCTORS SERVICE, ING, ET AL. CONSENT ORDER, ETC. 9 “IN REGARD TO ‘THE ALLEGED VIOLATION OF THE TRUTH IN LENDING AND THE FEDERAL ‘TRADE COMMISSION ACTS Docket 0-278. Comptaint, August 22, 1972—Dedision, Auquat 22, 1972. Consent order requiring a Miami, Florida, seller and distributor of home improvement products to cease’ violating the’ Truth in’ Lending Act by failing to disclose to customers the annual percentage: yates: the total number of ' payments; the method of computing penalty charges and..other disclosures required by Regulation Zof the. said Act... ae, ; Company oe Pursuant to the provisions of the Truth in Tending Act and the implementing regulation promulgated thereunder, and the Federal Trade Commission Act, and by virtué of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Florida State Constructors Service, Inc., a corporation, and Joseph Weinstock, individually and as an officer of said. corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and implementing 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 in that respect as follows:

Paracrarn 1. Respondent Florida State Constructors Service, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Florida, with its principal office and place of business located at 7541 Biscayne Boulevard, Miami, Florida. Respondent Joseph Weinstock is an officer of the corporate respondent. He formulates, directs and controls the policy, acts and practices of the corporation, 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 advertising, offering for sale, sale and distribution of home improvement products to the public and in the installation thereof.

‘FLORIDA STATE CONSTRUCTORS SERVICE, INC., ET AL. 289 288 Complaint | Par. 3. In the ordinary course of their business as aforesaid, responddents regularly éxtend cotsumer 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 System. - Oo - _ Par. 4. Subsequent to July 1, 1969, in the ordinary course of their | business as aforesaid, and ‘in connection with their credit sales, as “credit sale” is defined in Regulation Z, respondents have caused and are causing their. customers to enter into two separate contracts for the sale of respondents’ goods and services. On both of these contracts, hereinafter referred to as “the contracts,” respondents’ provide certain consumer credit cost information. Respondents do not provide these customers with any other consumer credit cost disclosures prior to the consummation of the “credit sale,” as required by Section 226.8 (a) of Regulation Z. a .

By and through the use of the contracts, respondents: oo, _ 1, Fail in some instances to disclose the “annual percentage rate” accurately to the nearest. quarter of one percent, in accordance ‘with Section 226.5 of Regulation Z, as required by Section 226.8(b) (2) of Regulation Z. . oe 7 oe 2. Fail in some instances to disclose accurately the number, amount and due dates or periods of payments scheduled to repay the indebtedness and the sum of such payments, as required by Section 226.8 (b) (3) of Regulation Z.’ 3. Fail to disclose the amount, or method of computing the amount, of any default, delinquency, or similar charges payable in the event of late payments, as required by Section 226.8 (b) (4) of Regulation Z. 4. Fail in some instances to disclose accurately the deferred payment price, as required by Section 226.8(c) (8) (ii) of Regulation Z. 5. Fail in some instances to identify the type of security interest held, retained, or acquired in connection with the extension of credit as required by Section 226.8(b) (5) of Regulation Z. Par. 5. By and through the use of the contract, as set forth in Paragraph Four, respondents retain or acquire a security interest in real ' property which is or is expected to be used as the principal residence of the customer. The customer thereby has the right to rescind the 290 _ FEDERAL TRADE COMMISSION DECISIONS Decision and Order 81 FTC.

transaction, as provided in Section 226.9(a) of. Regulation Z. Having consummated a rescindable credit. transaction, respondents : 1. Fail in. some instances to provide each customer who has the right to rescind with two copies of the notice prescribed by Section 226.9 (b) of Regulation Z, as required by that section. — 2. Make physical changes 1 in the property of the customer and perform work and services for the customer before the rescission period provided in Section 226. 9(a) of Regulation Z has expired, in violation of Section 226.9(c) thereof.

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

Dxciston. AND Oromr 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 Atlanta 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 Truth in Lending Act and the implementing regulation promulgated thereunder, and the Federal Trade Commission Act; 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 Florida State Constructors Service, Inc., is a corporation organized existing and doing business under and by virtue of the FLORIDA STATE CONSTRUCTORS SERVICE, INC., ET AL. 29] 288 Decision and Order laws of the State of Florida. Its office and principal. place of business is located at 7541 Biscayne Boulevard, Miami, Florida... Respondent Joseph. Weinstock is an officer of said corporation. He formulates, directs and controls the policies, acts and practices of the corporate respondent including those hereinafter referred to. The address of Joseph Weinstock. is the same .as. that. of the. corporate _ respondent. See hp og deten dee 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. Lees re a ORDER. | Ble peg It is ordered, That respondents Florida State Constructors Service, Inc., a corporation, its successors and assigns, and Joseph Weinstock, individually and as an, officer of said corporation, aiid 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 and 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. 90-321, 15 U.S.C. 1601, e¢ seg.), do forthwith cease and desist from: 1, Failing to disclose the annual percentage rate accurately to the nearest quarter of one percent, in accordance with Section 226.5 of Regulation Z, as required by Section 226.8 (b) (2) of Regulation Z. .

2. Failing to disclose accurately the number, amount and due dates or periods of payments scheduled to repay the indebtedness and the sum of such payments, as required by Section 226.8 (b) (8) of Regulation Z. ;

3. Failing to disclose the amount, or method of computing the amount, of any default, delinquency, or similar charges payable in the event of late payments, as required by Section 226.8 (b) (4) of Regulation Z.

4. Failing to disclose accurately the deferred payment price, as required by Section 226.8 (c) (8) (ii) of Regulation Z. 5. Failing to identify the type of security interest held, retained or acquired in connection with the extension of credit as required by Section 226.8 (b) (5) of Regulation Z.

6. Failing, in any transaction in which respondents retain or acquire a security interest in real property which is used or is expected to be used as the principal residence of the customer, to provide each customer with notice of the right to rescind, in the 992 ~ °°“ FEDERAL ‘TRADE COMMISSION’ DECISIONS Decision and ‘Order 81 FTC.

~ form and: mariner Specified by Section 226. 9 a(b) and Section 226. 9. (f) of Regulation Z.

_ | ‘T. Making any physical changes in ‘a customer’s property or “” ‘performing any work or services on such property before expira- _ tion of the three day rescission ‘period provided for in Section -226:9 (a) of Regulation Z; in any transaction in which respond- _ ents retain or acquire a security interest in real property which _is‘used or is expected:to be used as the principal ‘residence of the 5 1 2 3 1 2 839 1028 178 49 29.528008 customer,5 1 2 3 1 3 1028 1044 41 24 37.406139 as5 1 2 3 1 4 1073 1028 189 49 37.406139 provided5 1 2 3 1 5 1252 1032 44 35 94.171234 in5 1 2 3 1 6 1300 1033 139 35 94.171234 Sections 1 2 3 1 7 1446 1022 95 43 49.398037 226.95 1 2 3 1 8 1548 1031 53 44 49.398037 (¢)5 1 2 3 1 9 1614 1031 46 33 96.645271 of5 1 2 3 1 10 1662 1020 210 54 91.838692 Regulations 1 2 3 1 11 1880 1031 56 32 86.528145 Z.3 1 2 4 0 0 756 1080 1351 859 -1 4 1 2 4 1 0 882 1080 1199 48 -1 5 1 2 4 1 1 882 1086 29 33 96.212601 8.5 1 2 4 1 2 925 1084 174 44 96.592880 Failing,5 1 2 4 1 3 1089 1095 38 23 96.677734 in5 1 2 4 1 4 1138 1096 70 31 96.343277 any5 1 2 4 1 5 1219 1094 179 24 96.385773 consumers 1 2 4 1 6 1408 1082 111 34 96.501350 credits 1 2 4 1 7 1529 1081 213 40 96.586082 transactions 1 2 4 1 8 1754 1084 41 30 96.890900 or5 1 2 4 1 9 1805 1073 276 48 95.572510 advertisement,4 1 2 4 2 0 840 1131 1245 45 -1 5 1 2 4 2 1 840 1139 37 30 96.996971 to5 1 2 4 2 2 897 1136 101 33 96.367935 makes 1 2 4 2 3 1019 1136 49 32 96.030403 all5 1 2 4 2 4 1090 1135 212 41 96.030403 disclosures,5 1 2 4 2 5 1322 1133 211 34 96.255203 determined5 1 2 4 2 6 1554 1133 38 33 96.499588 in5 1 2 4 2 7 1612 1132 207 34 96.482224 accordance5 1 2 4 2 8 1839 1132 86 34 96.649071 with5 1 2 4 2 9 1942 1131 143 36 96.671188 Section4 1 2 4 3 0 787 1182 1294 51 -1 5 1 2 4 3 1 787 1188 148 45 39.149685 226.45 1 2 4 3 2 952 1186 70 40 93.181381 ands 1 2 4 3 3 1039 1186 152 46 66.937210 226.5.of5 1 2 4 3 4 1204 1184 225 50 70.850891 Regulations 1 2 4 3 5 1426 1185 47 42 70.850891 -Z,5 1 2 4 3 6 1483 1187 40 40 74.257278 at.5 1 2 4 3 7 1538 1184 61 41 74.257278 thes 1 2 4 3 8 1607 1182 91 45 96.345848 times 1 2 4 3 9 1714 1182 94 42 96.436974 ands 1 2 4 3 10 1798 1194 40 22 96.578148 in5 1 2 4 3 11 1852 1184 60 42 96.436676 thes 1 2 4 3 12 1927 1193 154 30 96.880348 manner,4 1 2 4 4 0 823 1217 1261 73 -1 5 1 2 4 4 1 823 1236 117 47 86.168655 _form.5 1 2 4 4 2 949 1230 85 54 91.251366 and.5 1 2 4 4 3 1041 1226 150 56 87.170578 amounts 1 2 4 4 4 1211 1229 166 58 95.648781 required.5 1 2 4 4 5 1387 1231 36 53 91.692383 by5 1 2 4 4 6 1440 1247 20 32 89.582642 |5 1 2 4 4 7 1461 1223 155 64 95.055092 Sections5 1 2 4 4 8 1633 1217 76 73 80.851562 226.5 1 2 4 4 9 1711 1235 30 40 93.887924 6,5 1 2 4 4 10 1760 1232 106 44 93.887924 226.8,5 1 2 4 4 11 1886 1224 75 59 78.561249 226,5 1 2 4 4 12 1963 1235 34 52 96.821815 9,5 1 2 4 4 13 2014 1232 70 54 94.914787 anda 1 2 4 5 0 838 1275 546 60 -1 5 1 2 4 5 1 838 1277 116 52 89.458969 296.105 1 2 4 5 2 966 1282 42 48 96.385651 of5 1 2 4 5 3 1015 1275 214 60 91.650146 Regulations 1 2 4 5 4 1237 1274 147 52 18.189461 Zee4 1 2 4 6 0 759 1307 1324 79 -1 5 1 2 4 6 1 759 1369 3 2 1.982231 _5 1 2 4 6 2 790 1330 91 53 46.045910 Its5 1 2 4 6 3 890 1327 155 59 76.093155 further.5 1 2 4 6 4 1049 1332 154 49 96.496368 ordered,5 1 2 4 6 5 1217 1319 101 62 93.155396 That5 1 2 4 6 6 1314 1321 242 64 58.576450 respondents5 1 2 4 6 7 1564 1309 130 66 95.353607 delivers 1 2 4 6 8 1707 1347 22 22 92.346909 a5 1 2 4 6 9 1741 1323 99 55 92.346909 copy5 1 2 4 6 10 1844 1335 39 43 93.665840 of5 1 2 4 6 11 1890 1328 78 40 96.967560 this5 1 2 4 6 12 1980 1307 103 72 42.372543 order4 1 2 4 7 0 756 1370 1328 69 -1 5 1 2 4 7 1 756 1380 48 52 54.996521 to5 1 2 4 7 2 808 1384 106 49 42.157574 cease:5 1 2 4 7 3 910 1384 78 53 52.650208 ands 1 2 4 7 4 1003 1378 108 49 83.873581 desist,5 1 2 4 7 5 1123 1392 46 35 86.325981 to5 1 2 4 7 6 1174 1380 49 49 86.325981 all5 1 2 4 7 7 1237 1386 139 51 96.314217 presents 1 2 4 7 8 1387 1382 80 53 96.933449 ands 1 2 4 7 9 1474 1382 119 48 96.894035 futures 1 2 4 7 10 1606 1378 181 61 95.451889 personnel5 1 2 4 7 11 1803 1381 41 47 96.362923 of5 1 2 4 7 12 1858 1370 226 67 96.858292 respondents4 1 2 4 8 0 757 1428 1327 69 -1 5 1 2 4 8 1 757 1428 144 69 85.493095 engaged5 1 2 4 8 2 917 1439 21 39 79.183311 i5 1 2 4 8 3 924 1437 42 50 96.473328 in5 1 2 4 8 4 981 1431 62 55 94.439163 thes 1 2 4 8 5 1053 1433 274 47 96.370262 consummation5 1 2 4 8 6 1343 1435 44 42 96.567558 of5 1 2 4 8 7 1398 1449 82 38 96.414581 any5 1 2 4 8 8 1481 1437 178 47 96.565567 extensions 1 2 4 8 9 1672 1436 41 34 96.833809 of5 1 2 4 8 10 1725 1437 184 41 82.636856 consumer.5 1 2 4 8 11 1918 1431 111 47 96.662079 credits 1 2 4 8 12 2042 1446 42 32 96.662079 or4 1 2 4 9 0 756 1474 1328 67 -1 5 1 2 4 9 1 756 1490 39 45 95.826553 in5 1 2 4 9 2 810 1501 77 38 88.646820 any5 1 2 4 9 3 895 1486 123 50 88.646820 aspect.5 1 2 4 9 4 1018 1476 49 57 95.388542 of5 1 2 4 9 5 1072 1484 244 57 71.945091 preparation,5 1 2 4 9 6 1330 1485 168 53 96.362961 creation,5 1 2 4 9 7 1507 1488 42 40 96.314514 or5 1 2 4 9 8 1558 1487 156 49 96.314514 placing5 1 2 4 9 9 1717 1487 40 45 96.970108 of5 1 2 4 9 10 1772 1480 233 50 94.498024 advertising,5 1 2 4 9 11 2013 1474 71 53 96.264481 anda 1 2 4 10 0 756 1523 1330 72 -1 5 1 2 4 10 1 756 1529 91 62 81.876907 that.5 1 2 4 10 2 845 1526 233 66 76.393913 respondents5 1 2 4 10 3 1095 1551 124 33 81.917801 secures 1 2 4 10 4 1220 1546 33 33 78.498428 a.5 1 2 4 10 5 1259 1536 126 53 89.140060 signed5 1 2 4 10 6 1399 1530 187 64 89.331291 statement,5 1 2 4 10 7 1595 1523 288 72 96.341820 acknowledging5 1 2 4 10 8 1895 1535 152 55 40.985474 receipts 1 2 4 10 9 2044 1536 42 46 95.589478 of4 1 2 4 11 0 757 1578 747 64 -1 5 1 2 4 11 1 757 1584 78 55 96.806862 said5 1 2 4 11 2 843 1584 101 41 96.622589 orders 1 2 4 11 3 950 1588 104 54 82.853241 from,5 1 2 4 11 4 1055 1578 85 63 97.006653 each5 1 2 4 11 5 1148 1579 92 50 76.859497 such:5 1 2 4 11 6 1237 1601 155 38 62.754829 person.5 1 2 4 11 7 1451 1623 22 6 48.689686 =.5 1 2 4 11 8 1497 1614 7 3 63.358356 -4 1 2 4 12 0 758 1607 1349 80 -1 5 1 2 4 12 1 758 1638 4 3 0.000000 ”5 1 2 4 12 2 799 1644 40 31 69.608627 ‘It5 1 2 4 12 3 856 1644 31 32 66.838486 is5 1 2 4 12 4 904 1635 148 50 96.932274 furthers 1 2 4 12 5 1058 1633 159 50 95.798439 ordered,5 1 2 4 12 6 1236 1635 95 39 95.798439 That5 1 2 4 12 7 1349 1607 225 80 96.613251 respondents5 1 2 4 12 8 1589 1615 117 68 94.741135 notify5 1 2 4 12 9 1723 1638 59 33 95.903954 thes 1 2 4 12 10 1796 1611 234 69 96.023048 Commissions 1 2 4 12 11 2047 1624 60 47 66.975014 at4 1 2 4 13 0 757 1689 1328 47 -1 5 1 2 4 13 1 757 1693 88 33 96.917488 least5 1 2 4 13 2 860 1692 114 44 96.917488 thirty5 1 2 4 13 3 995 1692 75 44 96.650391 (30)5 1 2 4 13 4 1093 1692 86 43 96.650391 days5 1 2 4 13 5 1195 1685 98 49 96.692459 prior5 1 2 4 13 6 1309 1695 36 30 96.503235 to5 1 2 4 13 7 1361 1702 70 32 96.503235 any5 1 2 4 13 8 1446 1691 170 43 96.679321 proposed5 1 2 4 13 9 1630 1689 157 44 96.279915 changes 1 2 4 13 10 1776 1700 38 22 96.142242 in5 1 2 4 13 11 1830 1689 59 33 96.815315 thes 1 2 4 13 12 1903 1692 182 40 96.534286 corporate4 1 2 4 14 0 758 1739 1329 47 -1 5 1 2 4 14 1 758 1743 210 43 95.303589 respondents 1 2 4 14 2 989 1744 84 32 96.828629 such5 1 2 4 14 3 1096 1754 37 22 96.797363 as5 1 2 4 14 4 1156 1742 215 43 96.269989 dissolution,5 1 2 4 14 5 1394 1740 209 45 96.567329 assignments 1 2 4 14 6 1624 1752 41 22 96.906906 or5 1 2 4 14 7 1685 1740 70 33 96.525536 sales 1 2 4 14 8 1775 1739 172 43 96.533386 resulting5 1 2 4 14 9 1968 1739 38 33 95.411133 in5 1 2 4 14 10 2026 1740 61 32 96.907524 thea 1 2 4 15 0 759 1788 1328 49 -1 5 1 2 4 15 1 759 1797 195 40 96.702255 emergence5 1 2 4 15 2 975 1794 39 33 96.272926 of5 1 2 4 15 3 1033 1805 22 22 95.987358 a5 1 2 4 15 4 1075 1803 170 24 95.987358 successors 1 2 4 15 5 1264 1792 231 44 96.438103 corporation,5 1 2 4 15 6 1513 1792 65 33 96.708740 thes 1 2 4 15 7 1592 1791 152 34 96.011017 creations 1 2 4 15 8 1761 1801 41 23 96.822083 or5 1 2 4 15 9 1820 1788 207 36 96.274696 dissolution5 1 2 4 15 10 2046 1789 41 33 96.998230 of4 1 2 4 16 0 758 1841 1328 61 -1 5 1 2 4 16 1 758 1845 232 42 96.658279 subsidiaries,5 1 2 4 16 2 1006 1856 40 21 96.364220 or5 1 2 4 16 3 1060 1856 70 31 96.459564 any5 1 2 4 16 4 1141 1842 102 36 96.490372 others 1 2 4 16 5 1258 1844 131 58 97.012032 changes 1 2 4 16 6 1402 1843 38 33 95.948631 in5 1 2 4 16 7 1452 1843 59 32 96.695625 thes 1 2 4 16 8 1526 1842 219 43 96.866478 corporations 1 2 4 16 9 1760 1841 114 34 95.975746 which5 1 2 4 16 10 1887 1852 83 32 95.975746 may5 1 2 4 16 11 1984 1841 102 32 95.453201 affect4 1 2 4 17 0 758 1892 873 68 -1 5 1 2 4 17 1 758 1892 212 68 95.716591 compliance5 1 2 4 17 2 979 1895 208 43 96.267097 obligations5 1 2 4 17 3 1196 1894 133 44 96.136063 arising5 1 2 4 17 4 1337 1898 61 30 96.990509 outs 1 2 4 17 5 1406 1895 41 33 96.782661 of5 1 2 4 17 6 1453 1895 58 32 96.858833 thes 1 2 4 17 7 1520 1893 111 34 96.858833 order.3 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thes 1 2 5 2 11 1812 1992 231 37 96.716148 Commissions 1 2 5 2 12 2063 2004 24 22 96.716148 a4 1 2 5 3 0 759 2043 1365 56 -1 5 1 2 5 3 1 759 2053 119 39 96.877724 reports 1 2 5 3 2 890 2048 37 33 96.526245 in5 1 2 5 3 3 940 2048 152 43 96.526245 writing,5 1 2 5 3 4 1103 2047 128 43 96.597206 settings 1 2 5 3 5 1241 2047 118 33 96.974121 forth5 1 2 5 3 6 1349 2058 39 22 97.004295 in5 1 2 5 3 7 1399 2046 106 34 96.529366 details 1 2 5 3 8 1515 2046 60 35 96.187225 thes 1 2 5 3 9 1585 2056 143 23 96.773491 manners 1 2 5 3 10 1738 2044 70 34 96.592117 ands 1 2 5 3 11 1819 2043 113 34 96.871536 forms 1 2 5 3 12 1923 2055 38 22 96.876976 in5 1 2 5 3 13 1973 2043 113 56 96.948936 which5 1 2 5 3 14 2122 2073 2 2 0.000000 ,4 1 2 5 4 0 758 2098 659 45 -1 5 1 2 5 4 1 758 2100 83 43 96.592873 they5 1 2 5 4 2 850 2100 88 33 95.626938 have5 1 2 5 4 3 949 2099 172 42 96.936409 complied5 1 2 5 4 4 1130 2098 86 34 96.130653 with5 1 2 5 4 5 1225 2098 70 33 96.833961 this5 1 2 5 4 6 1306 2098 111 33 96.518509 order.2 1 3 0 0 0 1361 2194 124 8 -1 3 1 3 1 0 0 1361 2194 124 8 -1 4 1 3 1 1 0 1361 2194 124 8 -1 5 1 3 1 1 1 1361 2194 124 8 95.000000 2 1 4 0 0 0 1237 2250 372 33 -1 3 1 4 1 0 0 1237 2250 372 33 -1 4 1 4 1 1 0 1237 2250 372 33 -1 5 1 4 1 1 1 1237 2250 49 33 95.285278 In5 1 4 1 1 2 1308 2261 71 22 65.998779 tees 1 4 1 1 3 1401 2250 146 33 64.655411 Matters 1 4 1 1 4 1567 2259 42 23 95.703224 or2 1 5 0 0 0 1048 2340 750 43 -1 3 1 5 1 0 0 1048 2340 750 43 -1 4 1 5 1 1 0 1048 2340 750 43 -1 5 1 5 1 1 1 1048 2343 197 35 96.208282 CAMPUS5 1 5 1 1 2 1268 2342 221 41 84.300957 JUNIORS,5 1 5 1 1 3 1512 2341 105 42 92.084297 INC.,5 1 5 1 1 4 1639 2342 65 32 94.452866 ET5 1 5 1 1 5 1724 2340 74 34 95.305000 AL.2 1 6 0 0 0 805 2427 1241 86 -1 3 1 6 1 0 0 805 2427 1241 86 -1 4 1 6 1 1 0 805 2427 1241 43 -1 5 1 6 1 1 1 805 2439 159 24 96.031075 CONSENTS 1 6 1 1 2 979 2439 115 31 93.096535 ORDER,5 1 6 1 1 3 1109 2438 84 31 90.762817 ETC.,5 1 6 1 1 4 1209 2439 42 22 96.411507 IN5 1 6 1 1 5 1267 2438 127 23 96.757050 REGARDS 1 6 1 1 6 1410 2438 42 23 96.867546 TO5 1 6 1 1 7 1468 2438 71 21 96.734962 THES 1 6 1 1 8 1554 2427 149 32 96.571289 ALLEGED5 1 6 1 1 9 1718 2434 184 24 96.510651 VIOLATIONS 1 6 1 1 10 1918 2434 43 22 96.510651 OF5 1 6 1 1 11 1975 2434 71 22 96.234291 THEA 1 6 1 2 0 858 2484 1137 29 -1 5 1 6 1 2 1 858 2491 215 22 96.411705 FLAMMABLE5 1 6 1 2 2 1086 2490 138 22 96.069603 FABRICS5 1 6 1 2 3 1236 2490 72 22 96.050957 ANDS 1 6 1 2 4 1319 2489 72 22 96.032623 THES 1 6 1 2 5 1402 2488 149 22 95.735947 FEDERAL5 1 6 1 2 6 1562 2488 107 21 96.599876 TRADES 1 6 1 2 7 1680 2485 220 24 95.229965 COMMISSIONS 1 6 1 2 8 1911 2484 84 23 95.229965 ACTS2 1 7 0 0 0 829 2561 1190 39 -1 3 1 7 1 0 0 829 2561 1190 39 -1 4 1 7 1 1 0 829 2561 1190 39 -1 5 1 7 1 1 1 829 2568 114 25 90.636978 Dockets 1 7 1 1 2 962 2567 118 29 82.522980 C-2274.5 1 7 1 1 3 1100 2566 171 30 95.150391 Complaint,5 1 7 1 1 4 1290 2566 115 30 96.329041 August5 1 7 1 1 5 1422 2564 42 36 93.042137 25,5 1 7 1 1 6 1481 2563 251 30 89.998520 1972—Decision,5 1 7 1 1 7 1750 2562 115 30 82.036835 August.5 1 7 1 1 8 1879 2562 42 29 70.087814 25,5 1 7 1 1 9 1939 2561 80 26 78.478394 1972.2 1 8 0 0 0 755 2628 1335 130 -1 3 1 8 1 0 0 755 2628 1335 130 -1 4 1 8 1 1 0 755 2628 1335 45 -1 5 1 8 1 1 1 755 2644 137 24 81.833771 ‘Consents 1 8 1 1 2 909 2644 86 24 96.224274 orders 1 8 1 1 3 1012 2643 150 30 96.593895 requiring5 1 8 1 1 4 1186 2649 9 18 96.736183 a5 1 8 1 1 5 1213 2643 70 24 96.579323 News 1 8 1 1 6 1300 2642 79 24 96.614502 Yorks 1 8 1 1 7 1396 2628 68 41 94.748856 City5 1 8 1 1 8 1480 2640 229 28 96.558693 manufacturer,5 1 8 1 1 9 1726 2638 94 29 96.220238 seller,5 1 8 1 1 10 1839 2638 58 24 96.628014 ands 1 8 1 1 11 1914 2637 176 25 96.159309 distributor4 1 8 1 2 0 814 2680 1273 35 -1 5 1 8 1 2 1 814 2705 1 3 66.538170 _5 1 8 1 2 2 835 2686 32 24 96.386299 of5 1 8 1 2 3 887 2686 131 29 96.256424 wearing5 1 8 1 2 4 1037 2686 128 29 87.477859 apparel,5 1 8 1 2 5 1186 2691 107 23 87.477859 among5 1 8 1 2 6 1312 2685 84 24 96.694817 others 1 8 1 2 7 1416 2683 98 30 95.994781 things5 1 8 1 2 8 1534 2684 31 24 96.694016 to5 1 8 1 2 9 1585 2689 84 19 96.488663 ceases 1 8 1 2 10 1688 2680 242 30 96.421738 manufacturing5 1 8 1 2 11 1949 2680 50 24 96.244766 for5 1 8 1 2 12 2017 2680 70 29 96.537575 sale,4 1 8 1 3 0 832 2722 1257 36 -1 5 1 8 1 3 1 832 2729 112 29 91.535934 selling,5 1 8 1 3 2 964 2728 168 30 96.060890 importing,5 1 8 1 3 3 1152 2734 33 19 96.320137 or5 1 8 1 3 4 1203 2728 194 28 96.176613 distributing5 1 8 1 3 5 1416 2733 57 22 96.676758 any5 1 8 1 3 6 1492 2726 130 30 96.753952 product,5 1 8 1 3 7 1642 2725 103 29 96.526833 fabric,5 1 8 1 3 8 1766 2729 33 19 96.865341 or5 1 8 1 3 9 1819 2723 113 25 96.467964 related5 1 8 1 3 10 1951 2722 138 26 96.467964 material CAMPUS JUNIORS, INC.,. ET AL... : 293 292 : » Complaint 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 Campus Juniors, Inc., a corporation, and Frank Peller, 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: — PTE ES ony EG, bon es Paragraru 1. Respondent Campus Junions, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Respondent Frank Peller is an officer of said corporate respondent. He formulates, directs and controls the acts, practices and policies of said corporation. oe The respondents are engaged in the manufacture, sale and distribution of wearing apparel, including but not limited to misses dresses, with their principal place of business located at 498 Seventh Avenue, New York, New York.

Par. 2. Respondents for some time 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 “commerce” and “product” are defined in the Flammable Fabrics Act, as amended, which prod- _ ucts failed 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 misses dresses. Par. 3. 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.

294. FEDERAL TRADE: COMMISSION DECISIONS Decision and Order 81 F.T.C.

Decrsion 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 Bureau of Consumer Protection 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 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 Campus Juniors, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York.

Respondent Frank Peller is an officer of the said corporation. He formulates, directs, and controls the acts, practices, and policies of the said corporation.

Respondents are engaged in the manufacture and sale of articles of wearing apparel with their office and principal place of business located at 498 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 respondent Campus Juniors, Inc., a corporation, its successors and assigns, and its officers, and respondent Frank Peller, individually and as an officer of said corporation and respondents’ CAMPUS JUNIORS; INC., BT) ALs * 295 292 Decision atid Order 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 commerce, or importing into the United States, or introducing, delivering for introduction, transporting or causing to be transported i 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: afore: said Act.

It ts 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 the 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 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 23, 1970 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. Such report shall further inform the Commission whether 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 per square yard, or having a raised fiber surface. 296 FEDERAL TRADE COMMISSION. DECISIONS Complaint. 81 F.T.C.

Respondents will submit samples of any such product, fabric or related material with this report. Samples of the fabric, product or related material shall be of no less than one square yard of material. — 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 i in the emergence of a successor corporation, the creation or dissolution .of subsidiaries or any other: change i in the corporation which may affect compliance obligations arising outoftheorder. .— .

Lt is further ordered, That: the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions. Lt is. further ordered, That 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