Pakistan Arts and Crafts, Inc

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In roe Marrer or PAKISTAN ARTS AND CRAFTS, ING, ET AL, CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE ; FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-2328. Complaint, Dec. 6, 1972—Decision, Dec. 6, 1972 - Consent order requiring a New. York City importer and manufacturer of wearing apparel, among other things to cease manufacturing for sale, selling, importing, or distributing any product, fabric, or related material which fails to conform’ to-an applicable standard of flammability: or regulation issued under the provisions of the Flammable Fabrics Act, as amended, Comrnarnr 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 Pakistan Arts and Crafts, Inc., a corporation, and Jamil Akhter, 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:

ParacrapH 1. Respondent Pakistan Arts and Crafts, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York. Its address is 35 West 30th Street, New York, New York.

Respondent Jamil Akhter is an officer of the corporate respondent. He formulates, directs and controls the acts, practices and policies of the said corporate respondent including those hereinafter set forth. Respondents are engaged in the importation, manufacture and sale of wearing apparel and accessories, including, but not limited to, ponchos.

Par. 2. Respondents are now and for some time last past have been engaged in the manufacture for sale, the sale and offering for sale, in commerce, and the importation into the United States, 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 the terms “commerce,” and “product” are defined in the Flammable Fabrics Act, as amended, which PAKISTAN’ ARTS AND CRAFTS, INC., BT -AL. 919 918 - ; Decision and Order fail to conform to an applicable standard or regulation in effect, issued or amended under the provisions of the Flammable Fabrics Act, as amended.

Among such products mentioned hereinabove were ponchos. Par. 8. 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 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.

Ductsion 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 Flammable.Fabrics Act and 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 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 Pakistan Arts and Crafts, 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 35 West 30th Street, New York, New York. 920 FEDERAL TRADE COMMISSION DECISIONS.

Decision and Order 81 ¥F.T.C.

Respondent Jamil Akhter is president of said corporation. He formulates, directs and controls the acts, practices and policies 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. 7 : ORDER It is ordered, That the respondents Pakistan Arts and Crafts, Inc., a corporation, its successors and assigns, and its officers, and Jamil Akhter, individually and as an officer 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 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 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 issued, amended or continued in effect, 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 ponchos which gave rise to the complaint, of the flammable nature of said ponchos and effect the recall of said ponchos from such customers.

It is further ordered, That the respondents herein either process the ponchos 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 ponchos. It is further ordered, That the respondents herein shall, within ten (10) days after service upon them of this order, file with the Commission an interim 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 ponchos which gave rise to the complaint, (2) the number of said ponchos in inventory, (3) any action taken and any further actions proposed to be taken to notify customers of the flam- WILLIAM: FREIHOFFER BAKING GCo., INC: 921 gig 2° Complaint mability of said’ ponchos and effect the recall of said" ‘ponchos from customers, and of the: results thereof, (4) any disposition of said ponchos since November 6, 1970, and (5) any action taken or proposed to be taken to bring said: ponchos into conformance with the applicable standard of flammability under the Flammable Fabrics’ Act, as amended, or destroy said ponchos, andthe results of such action: Such report shall further inform the Commission as to whether or not 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: 2 ounces or less per square yard, or any’ prod uct; fabric or related material having a raised fiber stirface.. Respondents shall submit: ‘samples of not: less ‘than 1 square yard i in size of any:5 1 2 1 14 2 699 1235 93 61 90.251587 ‘such5 1 2 1 14 3 802 1238 157 55 84.672066 produtt,5 1 2 1 14 4 974 1243 122 50 96.588020 fabric,5 1 2 1 14 5 1108 1257 40 21 96.735802 or5 1 2 1 14 6 1161 1239 139 40 49.313046 related5 1 2 1 14 7 1303 1244 159 35 95.478226 materials 1 2 1 14 8 1477 1247 90 32 96.323547 with5 1 2 1 14 9 1573 1244 71 36 96.694130 this5 1 2 1 14 10 1657 1241 138 54 0.819763 réport.:4 1 2 1 15 0 604 1289 1347 64 -1 5 1 2 1 15 1 604 1287 153 42 10.996063 [tts5 1 2 1 15 2 771 1289 140 53 96.436447 furthers 1 2 1 15 3 928 1289 157 55 95.948418 ordered,5 1 2 1 15 4 1102 1298 105 45 30.803238 That’5 1 2 1 15 5 1213 1289 224 58 96.851837 respondents5 1 2 1 15 6 1453 1290 130 63 59.953331 notify”5 1 2 1 15 7 1590 1296 59 35 87.917603 thes 1 2 1 15 8 1667 1292 228 41 84.623970 Commission.5 1 2 1 15 9 1913 1303 38 29 96.977837 at4 1 2 1 16 0 626 1340 1324 68 -1 5 1 2 1 16 1 626 1340 85 38 45.829994 least:5 1 2 1 16 2 727 1343 142 44 4.807137 80'days5 1 2 1 16 3 884 1341 100 48 96.310112 prior5 1 2 1 16 4 994 1342 40 36 96.768501 to5 1 2 1 16 5 1048 1346 70 43 74.836548 any.5 1 2 1 16 6 1120 1340 159 55 0.000000 “ptoposéd5 1 2 1 16 7 1305 1345 9 35 61.966938 '5 1 2 1 16 8 1318 1344 156 50 96.219376 changes 1 2 1 16 9 1465 1359 39 21 96.974495 in5 1 2 1 16 10 1518 1349 59 31 96.968857 thes 1 2 1 16 11 1592 1346 185 62 75.496490 corporate’5 1 2 1 16 12 1788 1342 162 54 90.941803 respond-4 1 2 1 17 0 607 1392 1342 55 -1 5 1 2 1 17 1 607 1393 87 43 78.572273 -ent,5 1 2 1 17 2 708 1395 86 48 91.196877 such5 1 2 1 17 3 804 1407 42 40 95.441017 as5 1 2 1 17 4 852 1392 222 52 88.275002 dissolution,5 1 2 1 17 5 1085 1397 211 42 94.896950 assignments 1 2 1 17 6 1309 1405 41 25 96.188255 or5 1 2 1 17 7 1363 1392 76 39 73.418907 sale’5 1 2 1 17 8 1447 1398 191 47 96.909676 resulting5 1 2 1 17 9 1642 1398 25 33 96.986946 in5 1 2 1 17 10 1680 1400 61 31 91.083344 thé5 1 2 1 17 11 1752 1398 197 49 96.143791 emergence4 1 2 1 18 0 627 1442 1322 54 -1 5 1 2 1 18 1 627 1441 38 36 89.456589 of5 1 2 1 18 2 677 1450 20 28 75.924530 &5 1 2 1 18 3 709 1440 169 39 93.606728 successors 1 2 1 18 4 889 1447 234 49 96.577271 corporation,5 1 2 1 18 5 1122 1448 65 32 96.281921 thes 1 2 1 18 6 1198 1448 161 33 88.817520 creations 1 2 1 18 7 1359 1453 48 28 84.064888 or.5 1 2 1 18 8 1413 1442 203 54 96.984711 dissolution5 1 2 1 18 9 1627 1449 40 33 93.218109 of5 1 2 1 18 10 1678 1443 271 40 34.367058 subsidiaries-or4 1 2 1 19 0 626 1491 1323 83 -1 5 1 2 1 19 1 626 1506 76 32 96.825211 any5 1 2 1 19 2 706 1492 98 37 96.748619 others 1 2 1 19 3 815 1491 125 62 88.821579 charige5 1 2 1 19 4 960 1498 6 5 89.431381 i5 1 2 1 19 5 957 1505 37 25 96.981628 in5 1 2 1 19 6 1005 1491 59 39 96.981628 thes 1 2 1 19 7 1076 1492 221 48 96.200844 corporations 1 2 1 19 8 1304 1495 116 64 94.865410 which5 1 2 1 19 9 1421 1503 92 61 57.010887 thay5 1 2 1 19 10 1525 1494 108 71 94.060181 affects 1 2 1 19 11 1636 1494 214 80 94.072144 compliance5 1 2 1 19 12 1863 1494 86 71 13.509819 obli:4 1 2 1 20 0 627 1547 746 57 -1 5 1 2 1 20 1 627 1547 137 57 96.730171 gations5 1 2 1 20 2 774 1545 131 45 96.933739 arising5 1 2 1 20 3 914 1552 60 29 96.967339 outs 1 2 1 20 4 983 1548 39 32 96.352753 of5 1 2 1 20 5 1030 1548 73 33 96.768959 this5 1 2 1 20 6 1111 1549 111 32 96.008575 order.5 1 2 1 20 7 1370 1572 3 1 56.337929 :3 1 2 2 0 0 627 1568 1322 127 -1 4 1 2 2 1 0 658 1568 1291 83 -1 5 1 2 2 1 1 658 1592 35 37 73.717308 Tt5 1 2 2 1 2 718 1598 40 31 60.487953 485 1 2 2 1 3 757 1571 152 73 56.874374 furthers 1 2 2 1 4 914 1589 159 62 96.569176 ordered,5 1 2 2 1 5 1084 1593 107 39 74.876877 ‘That5 1 2 2 1 6 1193 1594 66 38 88.233109 thes 1 2 2 1 7 1267 1593 214 54 95.432388 respondents 1 2 2 1 8 1496 1568 219 79 9.707420 soxporation5 1 2 2 1 9 1730 1594 102 57 92.463707 shall.5 1 2 2 1 10 1830 1570 119 77 90.525223 forth-4 1 2 2 2 0 627 1644 1321 51 -1 5 1 2 2 2 1 627 1643 83 36 96.923882 with5 1 2 2 2 2 725 1643 182 37 96.845543 distributes 1 2 2 2 3 921 1654 20 27 94.151794 a5 1 2 2 2 4 955 1644 87 47 96.842293 copy5 1 2 2 2 5 1056 1644 40 37 96.962769 of5 1 2 2 2 6 1110 1643 70 39 96.932068 this5 1 2 2 2 7 1195 1644 101 38 96.766121 orders 1 2 2 2 8 1311 1655 37 28 96.544792 to5 1 2 2 2 9 1364 1652 82 31 96.663818 each5 1 2 2 2 10 1461 1652 39 31 96.663818 of5 1 2 2 2 11 1516 1652 45 32 96.989388 its5 1 2 2 2 12 1576 1645 181 50 96.394936 operating5 1 2 2 2 13 1773 1645 175 41 96.889671 divisions.3 1 2 3 0 0 626 1698 1324 234 -1 4 1 2 3 1 0 666 1698 1284 48 -1 5 1 2 3 1 1 662 1695 41 35 77.183723 It5 1 2 3 1 2 714 1698 29 32 77.183723 is5 1 2 3 1 3 756 1698 140 41 96.829979 furthers 1 2 3 1 4 907 1699 153 42 96.651535 ordered,5 1 2 3 1 5 1074 1695 92 37 96.766136 That5 1 2 3 1 6 1177 1702 226 40 96.779045 respondents5 1 2 3 1 7 1414 1696 99 47 96.638924 shall,5 1 2 3 1 8 1526 1702 123 32 96.937561 within5 1 2 3 1 9 1661 1703 91 43 96.937561 sixty5 1 2 3 1 10 1771 1704 73 42 96.736809 (60)5 1 2 3 1 11 1864 1704 86 42 96.473686 days4 1 2 3 2 0 627 1726 1322 85 -1 5 1 2 3 2 1 627 1748 91 31 96.117882 after5 1 2 3 2 2 740 1749 128 32 96.378220 services 1 2 3 2 3 889 1747 94 44 96.416092 upon5 1 2 3 2 4 1004 1726 93 56 93.363045 them5 1 2 3 2 5 1119 1751 40 31 96.653442 of5 1 2 3 2 6 1180 1751 72 33 96.337097 this5 1 2 3 2 7 1273 1749 112 62 95.924431 order,5 1 2 3 2 8 1409 1748 56 51 96.689850 files 1 2 3 2 9 1489 1728 83 57 96.972321 with5 1 2 3 2 10 1595 1754 60 46 95.839233 thes 1 2 3 2 11 1678 1753 227 34 96.341370 Commissions 1 2 3 2 12 1930 1766 19 21 96.341370 a4 1 2 3 3 0 627 1799 1322 44 -1 5 1 2 3 3 1 627 1801 116 38 96.338356 reports 1 2 3 3 2 766 1796 37 34 96.933372 in5 1 2 3 3 3 825 1799 152 43 96.573692 writing,5 1 2 3 3 4 999 1800 128 51 96.719429 settings 1 2 3 3 5 1150 1801 103 32 96.688126 forth5 1 2 3 3 6 1270 1802 37 32 96.688126 in5 1 2 3 3 7 1330 1803 106 32 96.340363 details 1 2 3 3 8 1459 1803 58 32 96.340363 thes 1 2 3 3 9 1540 1815 142 21 96.721535 manners 1 2 3 3 10 1703 1804 69 32 96.815376 ands 1 2 3 3 11 1796 1800 92 36 96.901169 forms 1 2 3 3 12 1910 1804 39 32 96.246208 in4 1 2 3 4 0 626 1848 1323 63 -1 5 1 2 3 4 1 626 1848 111 33 96.855652 which5 1 2 3 4 2 750 1850 81 50 96.433296 they5 1 2 3 4 3 845 1850 86 32 96.433296 have5 1 2 3 4 4 943 1848 175 62 96.811302 complied5 1 2 3 4 5 1126 1851 84 33 96.731476 with5 1 2 3 4 6 1224 1848 58 36 97.014694 thes 1 2 3 4 7 1295 1854 102 57 96.956062 orders 1 2 3 4 8 1410 1857 35 28 95.917892 to5 1 2 3 4 9 1459 1866 94 21 95.917892 ceases 1 2 3 4 10 1567 1855 67 32 96.110641 ands 1 2 3 4 11 1650 1855 104 50 96.854355 desist5 1 2 3 4 12 1768 1856 181 32 96.456894 contained4 1 2 3 5 0 626 1895 126 62 -1 5 1 2 3 5 1 626 1895 126 62 95.632912 herein.2 1 3 0 0 0 1224 1966 125 5 -1 3 1 3 1 0 0 1224 1966 125 5 -1 4 1 3 1 1 0 1224 1966 125 5 -1 5 1 3 1 1 1 1224 1966 125 5 95.000000 2 1 4 0 0 0 1100 2021 382 34 -1 3 1 4 1 0 0 1100 2021 382 34 -1 4 1 4 1 1 0 1100 2021 382 34 -1 5 1 4 1 1 1 1100 2021 48 32 93.963745 In5 1 4 1 1 2 1170 2032 71 21 82.738518 roe5 1 4 1 1 3 1264 2022 148 32 60.156673 Marrer5 1 4 1 1 4 1432 2033 50 22 89.032387 oF.2 1 5 0 0 0 792 2094 979 73 -1 3 1 5 1 0 0 792 2094 979 73 -1 4 1 5 1 1 0 792 2094 979 73 -1 5 1 5 1 1 1 792 2094 230 61 94.155571 WILLIAMS 1 5 1 1 2 1044 2101 290 66 90.084389 FREIHOFER5 1 5 1 1 3 1357 2114 192 34 93.111855 BAKING5 1 5 1 1 4 1572 2115 83 42 69.494156 CO.,5 1 5 1 1 5 1678 2115 93 35 96.141525 INC.2 1 6 0 0 0 652 2174 1254 109 -1 3 1 6 1 0 0 652 2174 1254 109 -1 4 1 6 1 1 0 652 2174 1254 68 -1 5 1 6 1 1 1 652 2188 170 39 69.182022 ‘CONSENTS 1 6 1 1 2 838 2174 114 68 96.957314 ORDER,5 1 6 1 1 3 968 2207 83 31 92.162674 ETC.,5 1 6 1 1 4 1067 2208 42 22 96.144028 IN5 1 6 1 1 5 1126 2208 127 22 80.393974 REGARDS 1 6 1 1 6 1266 2203 46 29 80.393974 TO5 1 6 1 1 7 1327 2210 72 21 88.487358 THES 1 6 1 1 8 1415 2210 148 22 96.324615 ALLEGED5 1 6 1 1 9 1579 2209 183 24 96.176979 VIOLATIONS 1 6 1 1 10 1779 2205 41 28 96.757629 OF5 1 6 1 1 11 1835 2212 71 21 95.557404 THEA 1 6 1 2 0 999 2259 575 24 -1 5 1 6 1 2 1 999 2255 149 26 96.068008 FEDERAL5 1 6 1 2 2 1158 2259 107 22 96.459267 TRADES 1 6 1 2 3 1277 2259 220 24 95.504944 COMMISSIONS 1 6 1 2 4 1508 2261 66 22 96.478218 ACT2 1 7 0 0 0 774 2327 1037 54 -1 3 1 7 1 0 0 774 2327 1037 54 -1 4 1 7 1 1 0 774 2327 1037 54 -1 5 1 7 1 1 1 774 2334 110 25 90.664536 Dockets 1 7 1 1 2 899 2335 117 25 52.005733 C-2329.5 1 7 1 1 3 1031 2333 172 45 94.434769 Complaint,5 1 7 1 1 4 1217 2337 66 25 76.871094 Dee.5 1 7 1 1 5 1298 2339 22 28 91.961945 7,5 1 7 1 1 6 1334 2338 252 31 89.761932 1972—Decision,5 1 7 1 1 7 1596 2327 70 46 78.530792 Dee.5 1 7 1 1 8 1681 2340 22 29 55.303490 7,5 1 7 1 1 9 1715 2336 80 45 93.078163 1972.2 1 8 0 0 0 622 2407 1327 112 -1 3 1 8 1 0 0 622 2407 1327 112 -1 4 1 8 1 1 0 622 2407 1325 39 -1 5 1 8 1 1 1 622 2408 127 26 96.882988 Consents 1 8 1 1 2 766 2410 85 24 96.246437 orders 1 8 1 1 3 868 2412 150 29 96.378181 requiring5 1 8 1 1 4 1033 2418 40 19 96.770142 an5 1 8 1 1 5 1089 2412 172 31 96.405960 Allentown,5 1 8 1 1 6 1279 2407 224 37 96.374771 Pennsylvania,5 1 8 1 1 7 1521 2408 142 35 96.508064 producers 1 8 1 1 8 1679 2416 32 24 96.508064 of5 1 8 1 1 9 1726 2408 109 38 95.923798 bakery5 1 8 1 1 10 1851 2415 96 31 95.923798 goods,4 1 8 1 2 0 692 2454 1257 33 -1 5 1 8 1 2 1 692 2457 104 25 96.595276 among5 1 8 1 2 2 818 2454 84 23 96.371887 others 1 8 1 2 3 924 2454 98 29 96.240860 things5 1 8 1 2 4 1045 2455 30 24 96.567673 to5 1 8 1 2 5 1097 2461 84 18 96.529396 ceases 1 8 1 2 6 1202 2455 260 32 96.385956 misrepresenting5 1 8 1 2 7 1483 2457 50 25 96.385956 thes 1 8 1 2 8 1554 2457 176 25 95.983406 nutritional5 1 8 1 2 9 1750 2459 87 25 95.923721 values 1 8 1 2 10 1857 2460 32 24 96.883850 of5 1 8 1 2 11 1909 2459 40 23 95.506920 its4 1 8 1 3 0 693 2494 552 25 -1 5 1 8 1 3 1 693 2494 96 25 96.171867 bread.5 1 8 1 3 2 1151 2509 27 4 9.366272 oo5 1 8 1 3 3 1243 2512 2 2 37.165054 :2 1 9 0 0 0 1180 2538 213 33 -1 3 1 9 1 0 0 1180 2538 213 33 -1 4 1 9 1 1 0 1180 2538 213 33 -1 5 1 9 1 1 1 1180 2538 213 33 87.350464 Complaint2 1 10 0 0 0 619 2619 1329 193 -1 3 1 10 1 0 0 619 2619 1329 147 -1 4 1 10 1 1 0 662 2619 1286 47 -1 5 1 10 1 1 1 662 2619 175 33 96.853920 Pursuant5 1 10 1 1 2 854 2624 36 29 96.317024 to5 1 10 1 1 3 909 2621 58 32 96.833076 thes 1 10 1 1 4 985 2622 193 40 96.562073 provisions5 1 10 1 1 5 1195 2623 40 32 96.646271 of5 1 10 1 1 6 1253 2623 58 32 96.831802 thes 1 10 1 1 7 1329 2624 146 32 95.513611 Federal5 1 10 1 1 8 1492 2625 114 31 95.513611 Trades 1 10 1 1 9 1624 2624 228 34 96.402069 Commissions 1 10 1 1 10 1868 2626 80 40 96.387375 Act,4 1 10 1 2 0 621 2670 1327 47 -1 5 1 10 1 2 1 621 2670 68 31 96.911797 ands 1 10 1 2 2 708 2670 46 42 96.425903 by5 1 10 1 2 3 773 2671 113 33 96.636124 virtues 1 10 1 2 4 904 2672 39 32 96.776588 of5 1 10 1 2 5 962 2672 58 32 96.387024 thes 1 10 1 2 6 1039 2674 178 41 96.319618 authority5 1 10 1 2 7 1236 2675 116 32 96.864265 vested5 1 10 1 2 8 1370 2674 37 32 96.365532 in5 1 10 1 2 9 1425 2674 29 32 96.652405 it5 1 10 1 2 10 1471 2674 45 42 96.706711 by5 1 10 1 2 11 1535 2676 75 31 96.180016 said5 1 10 1 2 12 1627 2676 79 41 96.180016 Act,5 1 10 1 2 13 1724 2677 58 31 96.883110 thes 1 10 1 2 14 1802 2677 146 33 96.301323 Federal4 1 10 1 3 0 619 2697 1329 94 -1 5 1 10 1 3 1 619 2721 113 32 96.383575 Trades 1 10 1 3 2 751 2722 238 42 96.383575 Commission,5 1 10 1 3 3 1008 2724 131 42 96.823959 having5 1 10 1 3 4 1156 2735 121 21 96.271690 reasons 1 10 1 3 5 1294 2728 37 29 96.165703 to5 1 10 1 3 6 1349 2725 129 33 96.165703 believes 1 10 1 3 7 1495 2726 78 32 96.729790 that5 1 10 1 3 8 1584 2697 161 76 96.373291 Williams 1 10 1 3 9 1763 2728 185 63 89.200264 Frethofer3 1 10 2 0 0 721 2789 282 23 -1 4 1 10 2 1 0 721 2789 282 23 -1 5 1 10 2 1 1 721 2779 282 33 83.961899 494-841—735 1 10 2 1 2 950 2774 58 52 58.497463 59 922 FEDERAL TRADE COMMISSION: DECISIONS Complaint 81. F.T.C.

spondent, has violated the provisions of said Act, 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:

. Paragrapy 1. The proposed. respondent i isa corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its principal place of business lovated at 1701 Union Boulevard, Allentown, Pa. .... :

Par, i. “Respondent is now, and for. some ‘time last past. has, been, engaged i in.the advertising, sale and distribution .of-a bakery product, specifically..a. bread. which comes. within the classification of.a “food,’ 2 . as. said term.is defined. in the: ‘Federal Trade Commission Act. : Par. 3. ‘Respondent causes the said. product, when sold, to be transported. from. its place of. business.in. Pennsylvania.to purchasers thereof located. in, various other States-of the United States. Respondent maintains,. and. at: all: times mentioned herein -has maintained, a, course: of trade in: said.product. in. confmerce.as: “commerce” is, defined: j inthe Federal. ‘Trade: Commission Act.. The volume.of business i in, ‘such, commerce has been and is substantial. : hs yeoniles Par. 4. In.the.course and conduct. of. its said business, respondent has disseminated, and caused the dissemination of, certain advertisements concerning the said product by the United States mails and by various means in-commerce, as “commerce” is defined in the Federal Trade Commission Act, including, but not limited to, advertisements in. newspapers, point of purchase advertisements, and by means: of radio broadcasts transmitted by radio stations with sufficient, power to carry such broadcasts across state lines, for the purpose of inducing and which were likely to induce, directly or indirectly, the purchase of said product; and has disseminated, and caused the dissemination of, advertisements concerning said product by various means, including, but not limited to the aforesaid media, for the purpose of inducing, and which were likely to induce, directly or indirectly, the purchase of said product in commerce as “commerce” is defined in the Federal Trade Commission Act.

Par. 5. Among and typical of the statements and representations contained in said advertisements disseminated as hereinabove set forth are the following:

1) A flyer attached to packages of said product which bears a picture of two muscular children, above which is written: The Inside story of Freihofer’s. Double Double Enriched Bread WILLIAM: FREIHOFFER: BAKING CO., INC: 923: 921°: : Complaint:

2) A‘statement in said flyer that:

We at Freihofer have been concerned over the alarming reports of poor nutri tion in America today: Because:of improper diet and empty calories, many, many thousands of people in our cities are nutritionally starving. That's why. our research staff has devoted much of their efforts to the development of a High- Nutrition White Bread. _ ;

*- Our Now Double Enriched White Bread contains almost twice the nutrition. including, for the first time, NATURAL WHEAT GERM (for good circulation and youthful vigor). Hach new loaf contains the same natural wheat germ found in 100% Whole Wheat Bread. This also increases the protein content for a slightly firmer, better tasting loaf. :

Our new Double Enriched Bread is truly twice as _ iutritions eee o “ 3) AY statement in a radio. commercial tothe effect that: Ladies .and ‘Gentlemen,. it’s: here at last. A nutritional -bread- through: It’s Freihofer’s new double enriched bread. Friehofer’s new: double-enriched bread is now double nutritious with almost. twice the vitamins, and iron, _Plus, for the first time, natural wheat germ. Wheat germ,, the life-giving part of the wheat kernel, is nature’s great wonder worker for good’ circulation: and youthful vigor. And now doublé-enriched “Freihofer’s: bread contains! the sdme natural wheat germ found in 100% .whole'wheat bread,, plus 80% more ‘vitamins,. imore’iron'and more protein. ‘Starting. today, give your family better nutrition and -better. health with Freihofer’s. Freihofer’s, now fortified with natural wheat germ, plus ‘more vitamins, iron and protein. So, whose got the new ‘double-enriched bread? ¥reihofer’s—that’s* ‘Who. : :

4) A statement in another radio advertisement for said product to the effect that: .

Ladies and Gentlemen, it’s here at last." “A great ‘nutritional bread-through. It’s Freihofer’s new (ECHO) Double-Enriched Bread. Honey, this toast tastes terrificy Yes, I switched to Freihofer’s new, bread, look at the wrapper. It says double-enriched. Right, Freihofer’s new double-enriched with vitamins and iron. Double. enriched, hey, that is great. Yea, and fortified: with natural wheat germ. Wheat germ: gives us good circulation you know. Sure,: keeps us young and healthy, we have been adding extra wheat germ to our food for: years. Well, not any more, because Freihofer’s now contains the same natural wheat germ as 100% whole wheat bread. And all those extra vitamins and iron., Boy, doubleenriched Freihofer’ s is some high power bread. It’s double nutritious, dear. Yea, double delicious ‘too. Freihofer’s now fortified with natural wheat germ, plus more vitamins, iron and protein. So whose got the new double-enriched bread? Freihofer’s, that’s who. :

5) A newspaper advertisement which states almost exactly what the flyer described in (1) above states, but above which, in large type is written NOW FREIHOFER’S DOUBLE ENRICHED BREAD HAS ALMOST TWICE THE NUTRITION * * *.NATURAL WHEAT GERM PLUS 80% MORE VITA- MINS—55% MORE IRON—MORE PROTEIN.

Below that writing, in a circular background is the phrase 924 FEDERAL’ TRADE “COMMISSION “DECISIONS Complaint: 81 F. Te.

NOW FORTIFIED WITH NATURAL WHEAT: ‘GERM. It: containg-the same natural wheat germ found in 100%. whole wheat bread. . tole . 6) Ae shelf- hanger which. deseribes said: ‘bread as: “torice as nutritious.”

Par. 6. Through the use of said | advertisements and others similar thereto not specifically set out herein, respondent has represented directly and by implication: =. :

_ . 4) that Freihofer’s bread represents. a nutritional breakthrough, and is of extraordinary nutritional: value, especially i in ‘maintaining good circulation and youthful vigor;

2) that Freihofer’s 's bréad has the same quantity of wheat germ as” is contained in a loaf of whole wheat bread; ; 3) ‘that ‘Frethofer’s' bread has twice the nutritional value eof a) either any othér bread, or’ b) the previous} model of Freihofer’ s bread. ~ Par. 7. In truth and in fact’ a ~ 1) Freihofer’s bread is. well within, the. range of nutritional quality. of large selling enriched breads in. ‘the United States and in-ne'sense represents a-nutritional breakthrough, particularly i in 1 terms ofr maintaining good: nutrition and ‘youthful vigor; a 2) Freihofer’s bread does not have even approximately as ‘much wheat germ .as is contained in. whole wheat bread and in fact has far less;

3) Freihofer’ s bread has neither twice the nutrition of many widely | sold breads, nor twice the nutrition Freihofer’s ‘bread had before reformulation.

Therefore, the statements and representations set forth in Paragraphs Five and Six were and are false, misleading and deceptive and the advertisements referred to in Paragraph Five were and are misleading in material respects and constituted and now constitute “false advertisements” as that term is defined in the Federal Trade Com: mission Act.

_ Par. 8. In the course and conduct of its aforesaid business, and at all times mentioned herein, respondent has been, and now is, in substantial competition in commerce with corporations, firms and individuals in the sale of bread of the same general kind and nature as that sold by respondent.

Par. 9. The use by respondent of the aforesaid false, misleading and deceptive statements, representations and practices has had, and now has, the capacity and tendency to mislead members of the purchasing public into the erroneous and mistaken belief that said statements and representations were and are true and into the purchase of WILLIAM: FREIHOFFER BAKING C0., -INC. 925 921. 5 , Decision: and. Order substantial quantities of; respondent's: Product by reason ‘of said erroneous and mistaken belief. ::

Par. 10. The aforesaid acts and practices of respondent ingluding : the dissemination by respondent:of the “false advertisements,” as herein alleged, were and are all to the prejudice and injury of the public and of respondent’s ‘competitors and constituted, and now constitute, unfair methods of corapetition i in commerce and unfair and deceptive acts and practices in commerce in violation of Sections 5 and 12 of the Federal Trade Commission Act. Decision AND Onosr The Federal. Trade. ‘Commission having initiated an. n investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent 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 respondent with violation of the. Federal.'Trade Commission. Act; and ;, The. respondent and. counsel for the: Commission having thereafter executed an agreement, containing a consent order, an admission by the respondent 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 respondent 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 respondent has violated the. said Act, 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 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

I 1) The proposed respondent is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Delaware, with its office and its principal place of business located at 1701 Union Boulevard, Allentown, Pa.

926 FEDERAL TRADE’ COMMISSION ‘ DECISIONS ‘Decision and Order 81, FTC.

2) The Federal Trade Commission ‘has jurisdiction of the:subject matter of this Proceeding and of the respondent and: the © proceeding 1 is in the public interest. . “aude, oak nha OE, LT t4 is 5 ordered, That respondent: William. Freihofer Baking Company, a a corporation, ‘their successors: and. assigns, and their.agents, officers, representatives.and. employees, directly or through. any. corporate or _ other device, in connection, with: the, advertising, offering for sale, sale or distribution of any bread or baked product, forthwith cease and desist from:

(1). Disseminating 0 or causing “the dissemination of any. ad- 7 “vertisement by: téans of the United States mails or: by any ‘means ee Jin’ commerce, ‘as “commerce” i is defined-in the. Federal Trade Cont , . thission: Act; which écontains thie followin; be Fae EN v (a) ‘any ‘representation, orally, vistially, or’ By any other ‘ om means; that’ Freihofer’s: Bread is “double enriched; has “al- ~ most twice the autrition,” i is “double: nutrition; ” or has ¢ ‘alms twice thé vitam’ ns and iron,” as ordinary ‘entiched bread,” ue “(by any’ représenttation, ‘or implication; orally,’ visially; 0 or oby “any othet means, - ‘that ‘the ‘wheat’ gérm - content” of * Freiliofer’s Bréad is equivalent to'that ‘of whole wheat bread, such as by saying “*'* * Freihofer’s now contains the same - natural wheat germ as 100% whole wheat bread,” (c) any representation, orally, visually, or by any other means that Freihofer’s Bread represents a “nutritional bread through” or break- through, or any other representation. to that effect;

It is provided, however, That should respondent reformulate its ‘bread so as to make any of the above-proscribed representations true, that the above-proscribed representations may. be made. It is further ordered, That respondent shall forthwith distribute a copy of this order to each of their operating divisions. It is further ordered, That respondent notify the Commission at least. thirty (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 this order.