Southland Chemical & Carpet Finishing, Inc

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

manner and form in which they have complied with this order. 1:- THE MATTER OF SOUTHLAND CHEMICAL & CARPET FINISHING, I:\C. ET AL.

CONSENT ORDER , ETC., IN REGARD TO THE ALLEGED VIOLATION OF THE FEDERAL TRADE CO"nIISSIOX AND THE FLAMMABLE FABRICS ACTS Docket C-2387. Compluint, Ap)') 24, 1.978-Decision, April2.4, 197.1. Consent order requiring a Dalton, Georgia manufacturer and seller of carpets and rugs, among other things to cease manufacturing-for sale, selling, impor­ ting, 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. CO:VIPLAINT 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 SOUTIILA:-D CHI-MICAL & CARPET FINISHING IKC., ET AL.1255 1254 Complaint Commission, having reason to believe that Southland Chemical & Carpet Finishing, Inc. , a corporation, trading under its own name and as Evergreen Carpets, and Franklin D. Rosenbaum individually and as an officer of the said corporation, hereinafter referred to as respondents, have violated the provisions of the said Acts and the rules and regulations promulgated under the Flammable Fabrics Act, as amended, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows: PARAGRAPII 1. Respondent Southland Chemical & Carpet Fin­ ishing, Inc., trading under its own name and as Evergreen Car­ pets, is a corporation organized, existing and doing business under and by virtue of the laws of the State of Georgia. Respon­ dent Franklin D. Rosenbaum is an officer of the said corporate respondent. He formulates, directs, and controls the acts, prac­ tices, and policies of the said corporation. Respondents are engaged in the l11manufacture and sale of car­ pets and rugs, with their principal place of business located at Richard Street, P. O. Box 1263, Dalton, Georgia. PAR. 2. Respondents are now and for some time last past have been engaged in thc manufacturing for sale, sale and offering for sale, in commerce, and have introduced, delivered for introduction, transported and caused to be transported in com­ merce, and have sold or delivered after sale or shipment in com­ merce, products, as the terms "commerce " and !!product " are defined in the Flammable Fabrics Act, as amended, which pro­ ducts fail to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the Flammable Fabrics Act, as amended.

Among such products mentioned hereinabove were carpets and rugs in style H Drury Lane " (foam back only), subject to Department of Commerce Standard For the Surface Flammabil­ ity of Carpets and Rugs (DOC FF 1- 70). 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 competi­ tion 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 investiga­ Decision and Ordel' 82 P. tion 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 havjng'there after executed an agreerncnt 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 Comm ission having thereafter considered the matter and having determined that it had reason to believe that the respon­ dents 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 agree­ ment on the public record for a period of thirty (30) days, now in further conformity \with the procedure prescribed in Section 34(b) of its rules, the Comm ission hereby issues its complaint make the followingjurisdictional findings, and enters the follow­ ing order:

1. Respondent Southland Chemical & Carpet Finishing, Inc. doing business under its own name and as Evergreen Carpets is a corporation organ ized, existing and doing business under and by virtue of the laws of the State of Georgia. Respondent Franklin D. Rosenbaum is an offcer of the said corporation. He formulates, directs and controls the acts, prac­ tices and policies of the said corporation. respondents are engaged in the manufacture and sale of car­ pets and rugs, with the office and principal place of business of respondents located at Richard Street, P. O. Box 1263, Dalton Georgia.

2. The Federal Trade Commission has jurisdiction of the sub­ ject matter of this proceeding and of' the respondents, and the proceeding is in the public interest.

oral It if: ordered That respondent Southland Chemical & Carpet SOLTHLAND CHE:VIICAL & CARPET FINISHIKG I:-C. , ET AL.1257 1254 Decision and Oruer Finishing, Inc. , a corporation, trading under its own name and as Evergreen Carpets, or under any other name or names, its successors and assigns, and its officers, and respondent Franklin D. Rosenbaum, individually and as an officer of said corporation and respondents ' agents, representatives and employees directly or through any corporation, subsidiary, division, or other device, do forthwith cease and desist from1 manufacturing for sale, selling, offering for sale, in commerce, or importing into the United States, or introducing, delivering for introduc­ tion, transporting or causing to be transported in commerce or selling OJ' delivering after sale or shipment in commerce, any carpet or rug; or manufacturing for sale, selling, or offering for sale, any carpet or rug made of fabric or related material which has been shipped or received in commerce, as " carpet rug, commerce fabric " and " related material" are defined in the Flammable Fabrics Act, as amended, or any applicable standard or regulation continued in effect issued or amended under the provisions of the aforesaid Act, which carpet or rug fails to conform to an applicable standard or regulation con­ tinued in effect, issued or amended under the provisions of the afoi'esaid Act.

It isfurther ordered That respondents notify all of their cus­ tomers who have purchased or to Wholly1 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 frolll such customers.

It is further onlered 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 flamma­ bility under the Flammable Fabrics Act, as amended, or destroy said products.

It is fU1'ther 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 specifi­ cally concerning (1) the identity of the products which gave rise to the complaint, (2) the identity of the purchasers of said pro­ ducts, (3) the amount of said products on hand and in the chan­ nels 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 cus­ tomers, and the results thereof, (5) any disposition of said pro­ ducts since :YIarch 14, 1972, and (6) any action taken or proposed 1258 FEDERAL TRADE co rMISSIO:- DECISI01-S Decision and Order 82 F. to be taken to bring said products into conformance with the applicable standard of J1ammability under the Flammable Fab­ rics 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 for­ ward to the Commission for testing a sample of any such carpet or rug.

It It;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 d issol utian of su bsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order. It is future)' ordel' That the individual respondent named herein promptly notUy the Commission of the discontinuance of his present business or employment and of his affliation with a new business or employment. Such notice shall include respon­ dent' s current business or employment in which he is engaged as well as a description of his duties and responsibilities. It is fl1rthel' ordered That thc respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions.

It ;sfl1,.thel' OJ'clerecl 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.