Falchick Dress Co., Inc

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IN THE MATTER OF FALCHICK DRESS CO. , INC., ET AL.

CO:-SENT ORDER , ETC., IN REGARD TO Tile ALLEGED VIOLATIO:\ OF THE FEDERAL TRADE CO:lMISSIOK A:-D THE FLAM:VIABLE FABRICS ACTS Docket C-2JY2. Co-,npla;/:nt, April, 1 97S-Decision, Apl'U , 1973. Consent order requiring a ?\ew York City manufacturer and seller of women uridal and formal wearing apparel, among other things to cease manufactur­ ing 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.

COMPLAI:\T 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 Falchick Dress Co. Inc. , a corporation, and Irving Falchick, individually and as officer of said corporation hereinafter referred to as respon­ dents, 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 proceed­ ingby it in respect thereof would be in the public interest, hereby FALCHICK DRESS CO. , I:-C., ET AL. 1279 1278 Decision and Order issues its complaint, stating its charges in that respect as fol­ lows:

PARAGRAPH 1. Respondent Falchick Dress Co., Inc. , is a cor­ poration organized, existing and doing business under and by virtue ofthe laws of the State of )Jew York. Respondent Irving Falchick is an officer of said corporate respondent. lie formu­ lates, directs and controls the acts, practices and policies of said corporation.

The respondents are engaged in the business of the manufac­ ture, sale and distribution of wearing apparel, including but not limited to bridal and formal gowns, with their office and principal place of business located at 1385 Broadway, :-ewYork New York.

PAR. 2. Respondents are now and for some time last past have been engaged in the rnanufacture for sale, the sale and offering for sale, in commerce, and have introduced, delivered for introduction, transported and caused to be transported in com­ merce, products as the terms "commerce " and "product " are defined in the Flammable Fabrics Act, as amended, which fail to conform to an applicable standard or regulation continued in effect, issued or amended under the provisions of the Flamm­ able Fabrics Act, as amended.

Among such products mentioned hereinabove were women formal gowns designated as model number 11608. 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 Comll1ission 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 New York Regional Offce proposed to present to the Commission for its consideration and which, if issued by the Commission would charge respondents with violation of the Flammable Fab­ rics Act and the Federal Trade Commission Act; and Respondents and counsel for the Commission having thereaf­ ter executed an agreement containing a consent order, an admis­ sion by respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing ,j 1280 FEDERAL TRADE COMMISSION DECISIOKS Decision and Order 82 F. 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 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 Commission hereby issues its complaint makes the following jurisdictional findings, and enters the fol­ lowing order.

1. Respondent Falchick Dress Co. , 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 1385 Broadway, New York, New Y or k.

Respondent Irving Falchick 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 sub­ ject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is orde,.ed That the respondents Falchick Dress Co., Inc. a corporation, its successors and assigns, and its officers, and Irving Falchick, individually and as an offcer of said cor­ poration, and respondents ' representatives, agents and employees, directly or through any corporation, subsidiary, divi­ sion or other device, do forthwith cease and desist from 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 prod uct, fabric, or related material; or man ufacturing for sale, selling or offering for sale, any product made of fabric or related material which has been shipped or received in comnlerce as jj commerce product fabric " and j' 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 FALCIICK DRESS CO. , INC., ET AL. 1281 1278 Decision and Order regulation issued, amended or continued in effect, under the provisions of the aforesaid Act.

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 rjse to this complaint of the flammable nature of said products, and effect recall of said products from such customers.

It is flirt her 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 prod ucts.

It 'isfitrther ordered That the respondents herein shall, within ten (10) days after service upon them of this order, fie 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 product which gave rise to the complaint, (2) the number of said products in inventory, (3) any action taken and any further action proposed to be taken to notify customers of the flammability of said products and effect the recall of said products and of the results thereof, (4) any disposition of said products since March 23, 1971 , and (5) 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 destroy said products. and the 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 two ounces or less per square yard, or any product, fabric or related material having a raised fiber surface. Respondents shall submit samples of not less than one square yard in size of any such product fabric or related material with this report. 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 in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other change in the corpora­ tion which may effect compliance obligations arising out of the order.

It is fm-ther ordered That the individual respondent named 1282 Fr-DERAL TRADE COMMISSIO:- DECISIONS Decision and Ordcr 82 F. herein promptly notify the Commission of the discontinuance of his present business or employment and of his affiliation with a new business or employn1ent. 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 isfuTtheToTdeTed That the corporate respondent shall forth­ with distribute a copy of this order to each of its operating divi- SIOns.

It is fUTtheT onieTed That respondents shall, within sixty (60) days after service upon them of this order, file with the Commis­ sion a report in writing, setting forth in detail the manner and form in which they have complied with the order to cease and desist contained herein.