Lane Carpet Mills, Inc

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Ix THE MATTER OF LA:'E CARPET MILLS INC. ET AL.

COXSEXT ORDER, ETC., IK REGARD TO THE ALL!:GED VIOLATION OF THE FEDERAL TRADE CONIMISSIOK AND THE FLAM:VIABLE FABRICS ACTS Dockel C-23.91. CO'nplafnt, April 19l3-Decision, Apl'U 26, 197/J. Consent order requiring a Fairmount, Georgia manufacturer and seller of car­ pets and rugs, among other things to cease manufacturing for sale, selling, importing, or distributing any product, fabric, or relaled 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 Lane Carpet :\dills Inc. , a corporation, and Clifford M. Booker individually and as an offcer 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:

PARAGRAPH 1. Respondent Lane Carpet Mils, Inc. , is a corpo­ ration organized, existing and doing business under and by vir­ tue of the laws of the State of Georgia. Respondent Clifford M. LAXE CARPET MILLS, INC., ET AL. 1275 1274 Decision and Order Booker, is an officer of the said corporate respondent. He formu­ lates, directs and controls the acts, practices and policies of the said corporation.

Respondents are engaged in the manufacture and sale of car­ pets and rugs, with their principal place of business located at P.O. Box 156, Fairmount, Georgia.

PARA. 2. Respondents arc now and for some time last past have been engaged in the manufacturing for sale, sale and offer­ ing 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 I' 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 carpets and rugs Style "8700 Spiral" subject to Department of Commerce Standard For the Surface Flammability of Carpet 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.

DECISJO:- AND ORDER The Federal Trade Commission having initiated an investiga­ 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 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 forthe Commission havingthere­ after 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 Dccision and Ordej' 82 F. 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 respon­ dents have violated the said Acts, and that complaint should issue stating' its charg' es 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 Commission hereby issues its complaint makes the following jurisdictional findings, and enters the fol­ lowing order:

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

Respondent Clifford M. Booker, is an officer of the said cor­ poration. He formulates, directs, and controls the acts, practices and policies of the said corporation.

Respondents arc engaged in the man ufacturc and sale of car­ pets and rugs, with their office and principal place of business located at P. O. Box 156, Gordon Street, Fairmount, 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.

ORDER It is ordered That respondent Lane Carpet lVills, Inc., a cor­ poration, its successors and assigns, and its officers, and respon­ dent Clifford IV. Booker 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 from manufacturing for sale, selling, offering for sale, in commerce or importing into the L:united States, or introducing, delivering for introduction, transporting or causing to be transported in commerce, or selling or delivering after sale or shipment in com­ merce, any product, fabric, or related material; or manufactur­ ing 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 " u fabric and " related material" are defined in the Flammable Fabrics Act, as amended, which product, fabric or related material fails to con­ form to an applicable standard or regulation continupd in effect issued or amended under the provisions of the aforesaid Act. LANE CARPET :VULLS , INC. , ET AL. 1277 1274 Decision and Order It is further ordered That respondents notify all of their cus­ tomers 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 pro­ cess 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 further ordered That the provisions of this order with respect to customer notification, recall, and processing or destruction shall, in addition to the products set forth in sub­ paragraph one of Paragraph Two of the complaint, be applicable to any other styles of carpeting found not to meet an applicable standard under the Flammable Fabrics Act, as amended, since the issuance of the complaint and until the order becomes final within the meaning of the Federal Trade Commission Act. 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 respon­ dents' 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 pro­ posed to be taken to notify customers ofthc flammability of said products and effect the recall of said products from customers and of the results thereof. (5) any action taken or proposed to be taken to bring said products into conformance with the applic­ able standard of flammability under the Flammable Fabrics Act, as amended, or to destroy said products, and the results of such action and (6) any disposition of said products since April 1972. 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. Res­ pondents will also advise the Commission fully and specifically concerning items (1) through (5) above with regard to any pro­ ducts coming within the purview of Paragraph Four of this order. It isfu1.ther 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 1278 FEDERAL TRADE COMMISSION DI'CISIONS Complaint 82 F.

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 JUTthe? ordered That the individual respondent named herein promptly notify the Commission of the discontinuance of his present business or employment and of his affiiation 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 j,O'thel' O1'dered That the respondent corporation shall forthwith distribute a copy of this order to each of its operating divisions.

It isfurther ordered That the respondents herein shall, within sixty (60) days after service upon them of this order, fie with the Commission a report in writing setting forth in detail the manner and form in which they have complied with this order.