Davis Tile Co., Inc

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IN THE MATTER OF DAVIS TILE Coo., INC., ET AL.

~~CONSENT ORDER, ETC., IN REGARD. TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND THE FLAMMABLE FABRICS ACTS Docket C-2347. Complaint, Jan. 30, 1978—Decision, Jan. 80, 1978. Consent order requiring an Ellijay, Georgia, seller and manufacturer of carpets and rugs, 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.

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 Davis Tile Co., Inc., a corporation, Davis Carpet Mills, Inc., a corporation, and Ralph T. Davis, individually and as an officer of the said corporations, hereinafter referred to as respondents, have violated the provisions of the said Acts and the rules and regulations promulgated under the Flammable Fabrics Act, as amended, and it appearing to. the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPH 1. Respondent Davis Tile Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia. The office.and. principal. . place of business of said corporate respondent is located at Progress Road, Ellijay, Georgia.

Respondent Davis Carpet Mills, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia.

The office and principal place of business of said corporate respondent is located at Industrial Boulevard, Ellijay, Georgia. Respondent Ralph T. Davis is an officer of the above named corporations with his office and principal place of business located at Progress Road, Ellijay, Georgia. He formulates, directs and controls the acts, practices and policies of said corporations.

Complaint 82 F.T.C.

Respondents are engaged in the manufacture and sale of carpets and carpet tiles. ~ , - Par. 2. Respondents are now and for some time last past have been engaged in the manufacturing for sale, sale and 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 the terms “commerce” and “product,” are defined in the Flammable Fabrics Act, as amended, which products fail to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the Flammable Fabrics Act, as amended.

Among such products mentioned hereinabove were style “Princess” carpet tiles in colors “Lilac Pink” and “Orange Flame,” subject to Department of Commerce Standard for the Surface Flammability of Carpets and Rugs (DOC FF 1-70). 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 as such constituted, and now constitute unfair methods of competition and unfair and deceptive acts and practices in commerce, within the intent and meaning of the Federal Trade Commission Act.

DECISION AND 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 Division of Textiles and Furs proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act and the Flammable Fabrics Act, as amended; and .

The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law MIR VEN LASUED UU ey LAV ey dud Dd, oe 269 Decision and Order has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission’s rules; and The Commission having thereafter considered the matter and ' ~having determined that it had reason to believe that the respondents have violated the said Acts, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondent Davis Tile Co., Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia. The office and principal place of business of said corporate respondent is located at Progress Road, Ellijay, Georgia.

Respondent Davis Carpet Mills, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of-Georgia. The office and principal place -of business of said corporate respondent is located at Industrial Boulevard, Ellijay, Georgia.

Respondent Ralph T. Davis is an officer of the above named corporations with his office and principal place of business located at Progress Road, Ellijay, Georgia. He formulates, directs and controls the acts, practices and policies of said corporations. Respondents are engaged in the manufacture and sale of carpets and carpet tiles.

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 respondents Davis Tile Co., Inc., a corporation, its successors and assigns, and its officers, Davis Carpet Mills, Inc., a corporation, its successors and assigns, and its officers, and respondent Ralph T. Davis, individually and as an officer of said corporations and respondents’ agents, representatives and employees directly or through any corporation, subsidiary, division, or other device, do forthwith cease and desist from manufacturing for sale, selling, offering for sale, in commerce, or importing into the United States, or introducing, delivering for Decision and Order 82 F.T.C.

introduction, transporting or, causing to be transported in commerce, or selling or delivering after sale or shipment in commerce, any product, fabric or related material; or manufacturing for sale, selling or offering for sale, any product made of fabric or related material which has been shipped or received in commerce, as “commerce,” “product,” “fabric,” and “related material” are defined in the Flammable Fabrics Act, as amended, which product, fabric or related material fails to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the aforesaid Act. It is further ordered, That respondents notify all of their customers who have purchased or to whom have been delivered the products which gave rise to this complaint, of the flammable nature of said products and effect 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. De It is further ordered, That the provisions of this order with respect to customer notification, recall and processing or destruction shall be applicable to your products made in style “Princess” carpet tiles in colors “Lilac Pink” and “Orange Flame” as designated in subparagraph one of Paragraph Two of the complaint giving rise to this order and any subsequent. products made in . any style or any color and determined to be in violation of the Flammable Fabrics Act, as amended, prior to the date of acceptance by the Commission, of the final compliance report. 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 ae Oy Sey ey mee 269 Decision and Order since March 7, 1972 and (6) any action taken or proposed to be taken to bring said products into conformance with the applicable standard of flammability under the Flammable Fabrics Act, '~-as-amended, or to destroy said products, and the results of such action. Respondents will submit with their report, a complete description of each style of carpet or rug currently in inventory or production. Upon request, respondents will forward to the Commission for testing, a sample of any such carpet or rug. It is further ordered, That respondents notify the Commission at least 30 days prior to any proposed change in the corporate respondents such as dissolution, assignment or sale resulting in the emergence of a successor corporation or successor corporations, the creation or dissolution of subsidiaries or any .other change in the corporations which may affect compliance obliga- _ tions arising out of the order.

It is further ordered, That the respondent corporations shall forthwith distribute a copy of this order to each of their operating divisions.

It is further ordered, That the individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment and of his affiliation with a new business or employment. Such notice shall include respondent’s current business or employment in which he is engaged as well as a description of his duties and responsibilities. It is further ordered, That the respondents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.