Missouri Quilting Company, Inc

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IN THE MATTER OF MISSOURI QUILTING COMPANY, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO THE ALLEGED VIOLATIONS OF THE FEDERAL TRADE COMMISSION, WOOL PRODUCTS LABELING, AND TEXTILE FIBER PRODUCTS IDENTIFICATION ACTS Docket C-2485. Complaint, Jan. 10, 1974—Decision, Jan. 10, 1974 Consent order requiring a St. Louis, Mo., manufacturer and seller of wool and textile fiber products, including quilted fabrics, among other things to cease misrepresenting the fiber content of its wool products and failing to maintain records showing the fiber content of its textile fiber products.

Appearances For the Commission: John T. Hankins.

For the respondents: Pro se.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act, the Wool Products Labeling Act of 1939, and the Textile Fiber Products Identification Act, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Missouri Quilting Company, Inc., a corporation, and Thomas C. Brown and Frank J. Badami, individually and as officers of said corporation, hereinafter referred to as respondents, have violated the provisions of said Acts and the rules and regulations promulgated under the Wool Products Labeling Act of 1989 and the Textile Fiber Products Identification 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 in that respect as follows: PARAGRAPH 1. Respondent Missouri Quilting Company, Inc., is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Missouri, with its office and principal place of business located at 4198 Beck Ave. St. Louis. Mo. Complaint 83 F.T.C.

Respondents Thomas C. Brown and Frank J. Badami are officers of ‘the corporate respondent. They formulate, direct, and control the acts, practices, and policies of said corporate respondent, including the acts _ and practices hereinafter set forth. Their address is the same as that of the corporate respondent. oe PAR. 2. Respondents, now and for some time last past, have been engaged in the manufacture and sale of wool and textile fiber products, including quilted fabrics and have manufactured for introduction into commerce, introduced into commerce, sold, transported, distributed, delivered for shipment, shipped, and offered for sale, in commerce, as — “commerce” is defined in the Wool Products Labeling Act of 1939, wool products as “wool product” is defined therein. PAR. 8. Certain of said wool products were misbranded by the re- | spondents within the intent and meaning of Section 4(a) (1) of the Wool Products Labeling Act of 1939 and rules and regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, or otherwise identified with respect to the character and amount of the constituent fibers contained therein. Among such misbranded wool products, but not limited thereto, were quilted fabrics stamped, tagged, labeled, or otherwise identified by respondents as “90/10 acrylic,” whereas in truth and in fact, said products contained woolen fibers together with substantially different fibers and amounts of fibers than as represented. PAR. 4. Certain of said wool products were further misbranded by respondents in that they were not stamped, labeled, tagged, or otherwise identified as required under the provisions of Section 4(a)(2) of the Wool Products Labeling Act of 1939 and in the manner and form as prescribed by the rules and regulations promulgated under said Act. Among such misbranded wool products, but not limited thereto, was a wool product with a label on or affixed thereto which failed to disclose the percentage of the total fiber weight of the said wool product, exclusive of ornamentation not exceeding five per centum (5%) of the total fiber weight, of (1) wool; (2) reprocessed wool; (3) reused wool; (4) each fiber other than wool, when said percentage by weight of such fiber was five per centum (5%) or more; and (5) the aggregate of all other fibers.

Par. 5. The acts and practices of the respondents as set forth above were, an are, in violation of the Wool Products Labeling Act of 1939 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 meaning of the Federal Commission Act.

PAR. 6. Respondents are now, and for some time last past have been, MISSOURI QUILTING CO.,.INC., ET AL. 1209 wT Decision and: Order © engaged inthe introduction, delivery for introduction, manufacture for introduction, ‘sale, advertising, and offering for sale, in commerce, and inthe transportation or causing to be transported in commerce, , and the importation into the United States of textile fiber products; and have sold, offered for sale, advertised, delivered, transported, and caused to _be transported; textile fiber products, which had been advertised or offered for sale in commerce; and have sold, offered for sale, advertised, zs delivered, transported, and caused to be transported, after shipment in ~~ commerce, textile fiber products, either in their original state or contained in other textile fiber ‘products;.as the terms “commerce” and “textile fiber product” are defined in the Textile Fiber Products Iden- oe tification Act.

Par. 7. Respondents have failed.to maintain proper records showing _ the fiber content of the textile fiber products manufactured by them, in violation of Section 6 of the Textile Fiber Products identification A Act -and Rule 39 of the regulations promulgated thereunder. -PAR..8. The acts and practices of respondents, as set forth in Paragraph Seven above were, and are, in violation of the Textile Fiber Products Identification Act 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 under the Federal. Trade Commission Act.

DECISIONS 1 10 1 1 2 1344 1503 86 25 96.898438 ANDS 1 10 1 1 3 1446 1485 154 44 53.354305 ORDER2 1 11 0 0 0 662 1546 1361 320 -1 3 1 11 1 0 0 662 1546 1361 320 -1 4 1 11 1 1 0 733 1546 1290 77 -1 5 1 11 1 1 1 733 1546 73 62 96.794746 Thes 1 11 1 1 2 821 1551 148 72 96.748405 Federal5 1 11 1 1 3 985 1548 112 66 96.558060 Trades 1 11 1 1 4 1116 1554 223 56 96.812340 Commissions 1 11 1 1 5 1355 1578 126 41 96.990280 having5 1 11 1 1 6 1497 1578 154 33 96.469292 initiated5 1 11 1 1 7 1670 1588 41 22 96.591599 an5 1 11 1 1 8 1729 1569 239 49 96.136627 investigations 1 11 1 1 9 1986 1578 37 32 96.999100 of4 1 11 1 2 0 676 1627 1343 44 -1 5 1 11 1 2 1 676 1627 147 32 0.000000 certain5 1 11 1 2 2 846 1630 72 31 94.590698 acts5 1 11 1 2 3 938 1627 69 44 95.765015 ands 1 11 1 2 4 1031 1627 163 40 95.765015 practices5 1 11 1 2 5 1220 1628 36 31 95.801170 of5 1 11 1 2 6 1275 1628 60 31 96.775833 thes 1 11 1 2 7 1357 1629 224 39 96.265198 respondents5 1 11 1 2 8 1605 1627 131 33 96.379677 named5 1 11 1 2 9 1748 1628 35 31 96.012306 in5 1 11 1 2 10 1805 1628 60 31 96.090637 thes 1 11 1 2 11 1888 1627 131 41 96.090637 caption4 1 11 1 3 0 694 1677 1327 40 -1 5 1 11 1 3 1 694 1677 127 38 95.795670 hereof,5 1 11 1 3 2 844 1677 64 31 94.993088 ands 1 11 1 3 3 928 1677 59 31 94.993088 thes 1 11 1 3 4 1006 1677 226 39 96.380043 respondents5 1 11 1 3 5 1251 1677 125 40 96.769104 having5 1 11 1 3 6 1393 1678 87 32 96.007812 been5 1 11 1 3 7 1498 1678 175 32 96.007812 furnished5 1 11 1 3 8 1692 1677 190 33 83.356369 thereafter5 1 11 1 3 9 1901 1677 79 32 93.456116 with5 1 11 1 3 10 2000 1688 21 21 96.791328 a4 1 11 1 4 0 694 1720 1324 46 -1 5 1 11 1 4 1 694 1720 84 44 96.425331 copy5 1 11 1 4 2 800 1724 36 31 93.618134 of5 1 11 1 4 3 854 1734 20 21 93.618134 a5 1 11 1 4 4 895 1724 91 32 94.166336 drafts 1 11 1 4 5 1008 1724 37 31 94.166336 of5 1 11 1 4 6 1064 1725 179 39 96.722321 complaints 1 11 1 4 7 1264 1725 106 32 96.591522 which5 1 11 1 4 8 1392 1725 59 32 96.841736 thes 1 11 1 4 9 1473 1726 131 32 96.425697 Kansas5 1 11 1 4 10 1628 1725 85 41 96.425697 City5 1 11 1 4 11 1729 1725 162 40 88.828522 Regional5 1 11 1 4 12 1914 1725 104 33 88.828522 Office4 1 11 1 5 0 694 1773 1323 43 -1 5 1 11 1 5 1 694 1773 174 42 96.595268 proposed5 1 11 1 5 2 875 1776 36 30 96.336639 to5 1 11 1 5 3 924 1765 141 52 96.336639 presents 1 11 1 5 4 1079 1776 35 30 96.964691 to5 1 11 1 5 5 1126 1774 66 32 96.642326 thes 1 11 1 5 6 1201 1774 222 33 95.295944 Commissions 1 11 1 5 7 1436 1776 53 31 96.876358 for5 1 11 1 5 8 1501 1776 43 31 96.977898 its5 1 11 1 5 9 1561 1776 244 32 96.702858 considerations 1 11 1 5 10 1819 1776 66 30 96.899155 ands 1 11 1 5 11 1900 1775 117 38 96.863976 which,4 1 11 1 6 0 662 1824 1361 42 -1 5 1 11 1 6 1 662 1824 182 42 13.339600 ~ifissued5 1 11 1 6 2 856 1824 44 39 97.013145 by5 1 11 1 6 3 912 1824 59 32 96.983253 thes 1 11 1 6 4 983 1824 234 39 96.437943 Commission,5 1 11 1 6 5 1231 1825 108 32 96.801071 would5 1 11 1 6 6 1352 1826 123 40 96.858559 charges 1 11 1 6 7 1486 1826 225 40 96.715256 respondents5 1 11 1 6 8 1723 1824 82 33 96.906006 with5 1 11 1 6 9 1817 1816 158 47 97.000313 violations 1 11 1 6 10 1987 1825 36 32 96.825996 of2 1 12 0 0 0 626 1860 823 60 -1 3 1 12 1 0 0 626 1860 823 60 -1 4 1 12 1 1 0 626 1860 823 60 -1 5 1 12 1 1 1 626 1866 41 15 0.000000 a5 1 12 1 1 2 694 1875 58 45 96.478081 thes 1 12 1 1 3 768 1860 145 55 96.449043 Federal5 1 12 1 1 4 928 1874 114 37 61.886456 Trade:5 1 12 1 1 5 1046 1874 231 37 61.886456 Commissions 1 12 1 1 6 1292 1876 75 39 96.807709 Act;5 1 12 1 1 7 1384 1876 65 32 96.700951 and2 1 13 0 0 0 644 1923 1377 588 -1 3 1 13 1 0 0 652 1923 1369 91 -1 4 1 13 1 1 0 713 1923 1308 40 -1 5 1 13 1 1 1 713 1936 10 16 46.423126 .5 1 13 1 1 2 735 1923 70 32 96.655838 Thes 1 13 1 1 3 817 1923 234 48 94.068871 respondents.5 1 13 1 1 4 1068 1923 63 32 94.068871 ands 1 13 1 1 5 1151 1924 135 38 96.327225 counsels 1 13 1 1 6 1303 1924 53 32 96.694733 for5 1 13 1 1 7 1372 1925 59 31 96.534355 thes 1 13 1 1 8 1450 1924 223 33 96.534355 Commissions 1 13 1 1 9 1689 1924 126 39 96.701073 having5 1 13 1 1 10 1831 1906 190 50 96.940010 thereafter4 1 13 1 2 0 652 1973 1367 41 -1 5 1 13 1 2 1 652 1974 205 38 0.000000 executed5 1 13 1 2 2 872 1983 42 22 96.758736 an5 1 13 1 2 3 926 1969 198 44 96.525902 agreements 1 13 1 2 4 1138 1974 193 40 96.754204 containing5 1 13 1 2 5 1342 1984 20 21 96.754547 a5 1 13 1 2 6 1374 1977 139 30 96.431633 consents 1 13 1 2 7 1527 1974 110 39 96.706070 order,5 1 13 1 2 8 1653 1984 44 22 96.706070 an5 1 13 1 2 9 1710 1973 181 33 96.673477 admissions 1 13 1 2 10 1904 1974 42 40 96.843979 by5 1 13 1 2 11 1960 1974 59 31 96.827957 thee 1 13 2 0 0 644 2022 1377 279 -1 4 1 13 2 1 0 687 2022 1333 45 -1 5 1 13 2 1 1 687 2022 230 45 96.327553 respondents5 1 13 2 1 2 932 2022 36 32 93.765251 of5 1 13 2 1 3 977 2022 42 32 93.765251 all5 1 13 2 1 4 1033 2022 59 33 96.972488 thes 1 13 2 1 5 1102 2023 244 39 96.866539 jurisdictional5 1 13 2 1 6 1358 2025 87 31 96.891983 facts5 1 13 2 1 7 1459 2027 54 29 96.965355 sets 1 13 2 1 8 1525 2024 90 32 96.970116 forth5 1 13 2 1 9 1630 2025 33 31 96.971519 in5 1 13 2 1 10 1676 2024 59 32 96.914230 thes 1 13 2 1 11 1748 2024 167 32 96.394623 aforesaid5 1 13 2 1 12 1927 2022 93 34 96.394623 draft4 1 13 2 2 0 693 2068 1328 47 -1 5 1 13 2 2 1 693 2073 36 31 96.464447 of5 1 13 2 2 2 748 2068 190 45 96.241127 complaint,5 1 13 2 2 3 964 2074 19 30 95.051163 a5 1 13 2 2 4 1006 2075 186 30 94.525543 statements 1 13 2 2 5 1213 2074 76 32 94.525543 that5 1 13 2 2 6 1311 2074 59 32 96.402596 thes 1 13 2 2 7 1393 2074 134 41 96.659912 signing5 1 13 2 2 8 1547 2075 36 31 96.994530 of5 1 13 2 2 9 1603 2074 72 33 96.368980 said5 1 13 2 2 10 1696 2076 199 38 96.394547 agreements 1 13 2 2 11 1915 2074 29 32 96.967567 is5 1 13 2 2 12 1967 2074 54 32 96.677277 fora 1 13 2 3 0 644 2122 1375 42 -1 5 1 13 2 3 1 644 2150 21 11 35.360992 -.5 1 13 2 3 2 691 2122 206 38 92.800148 settlements 1 13 2 3 3 901 2131 171 33 94.796211 purposes5 1 13 2 3 4 1091 2122 76 39 96.904182 only5 1 13 2 3 5 1186 2123 66 32 95.868423 ands 1 13 2 3 6 1270 2123 79 32 96.343330 does5 1 13 2 3 7 1368 2126 59 29 96.869324 not5 1 13 2 3 8 1445 2123 183 32 96.420181 constitutes 1 13 2 3 9 1647 2133 40 22 96.407516 an5 1 13 2 3 10 1706 2122 181 33 96.338600 admissions 1 13 2 3 11 1906 2122 43 40 93.295540 by5 1 13 2 3 12 1966 2133 53 22 91.556526 re-4 1 13 2 4 0 692 2172 1324 55 -1 5 1 13 2 4 1 692 2172 186 55 92.905807 spondents5 1 13 2 4 2 894 2172 82 31 95.147949 that5 1 13 2 4 3 985 2172 58 31 95.147949 thes 1 13 2 4 4 1059 2172 64 36 96.967873 laws 1 13 2 4 5 1138 2172 60 32 96.935699 has5 1 13 2 4 6 1216 2173 85 32 96.949753 been5 1 13 2 4 7 1318 2174 145 32 96.873833 violated5 1 13 2 4 8 1481 2184 36 22 96.946251 as5 1 13 2 4 9 1534 2173 154 41 96.696724 alleged5 1 13 2 4 10 1678 2183 35 22 87.832611 in5 1 13 2 4 11 1729 2164 81 41 87.832611 such5 1 13 2 4 12 1827 2172 189 41 96.376656 complaint,4 1 13 2 5 0 691 2221 1326 62 -1 5 1 13 2 5 1 691 2221 64 33 96.822556 ands 1 13 2 5 2 769 2221 143 33 96.574883 waivers5 1 13 2 5 3 924 2222 65 32 96.906761 ands 1 13 2 5 4 1001 2221 99 54 96.914505 others 1 13 2 5 5 1109 2223 189 47 96.700745 provisions5 1 13 2 5 6 1310 2224 36 31 96.936821 as5 1 13 2 5 7 1358 2223 159 41 97.006592 required5 1 13 2 5 8 1529 2223 45 40 96.472794 by5 1 13 2 5 9 1584 2224 59 31 96.734360 thes 1 13 2 5 10 1654 2215 250 41 92.252464 Commission’s5 1 13 2 5 11 1915 2223 102 60 96.096115 rules;4 1 13 2 6 0 691 2270 192 31 -1 5 1 13 2 6 1 691 2270 65 31 96.791199 and3 1 13 3 0 0 689 2287 1332 224 -1 4 1 13 3 1 0 709 2287 1312 80 -1 5 1 13 3 1 1 709 2345 2 2 69.316475 _5 1 13 3 1 2 733 2319 70 32 96.731224 Thes 1 13 3 1 3 817 2310 223 42 96.822014 Commissions 1 13 3 1 4 1052 2319 126 41 96.864799 having5 1 13 3 1 5 1191 2297 189 70 95.703300 thereafter5 1 13 3 1 6 1393 2321 198 32 95.905945 considered5 1 13 3 1 7 1605 2321 58 32 95.905945 thes 1 13 3 1 8 1676 2323 128 30 96.682999 matters 1 13 3 1 9 1817 2296 65 57 94.113380 ands 1 13 3 1 10 1895 2287 126 73 96.679085 having4 1 13 3 2 0 691 2368 1327 43 -1 5 1 13 3 2 1 691 2369 211 32 96.805069 determined5 1 13 3 2 2 924 2368 75 33 96.609406 that5 1 13 3 2 3 1021 2369 26 32 96.678398 it5 1 13 3 2 4 1068 2369 65 32 96.843880 had5 1 13 3 2 5 1155 2379 122 23 96.319298 reasons 1 13 3 2 6 1287 2365 51 46 96.319298 to5 1 13 3 2 7 1355 2370 131 33 96.424683 believes 1 13 3 2 8 1508 2370 74 33 96.872238 that5 1 13 3 2 9 1605 2370 59 32 96.872238 thes 1 13 3 2 10 1684 2370 226 40 96.798965 respondents5 1 13 3 2 11 1931 2370 87 31 86.130867 have4 1 13 3 3 0 690 2416 1324 45 -1 5 1 13 3 3 1 690 2418 146 33 96.393890 violated5 1 13 3 3 2 850 2418 58 32 96.957550 thes 1 13 3 3 3 919 2418 72 33 96.945946 said5 1 13 3 3 4 1001 2416 79 42 96.240341 Act,5 1 13 3 3 5 1093 2419 66 32 96.240341 ands 1 13 3 3 6 1171 2420 75 32 96.483086 that5 1 13 3 3 7 1259 2421 177 40 96.484299 complaints 1 13 3 3 8 1448 2421 118 32 96.357101 should5 1 13 3 3 9 1579 2421 89 32 96.281570 issues 1 13 3 3 10 1681 2421 130 40 96.779762 stating5 1 13 3 3 11 1820 2420 45 32 96.699356 its5 1 13 3 3 12 1876 2420 138 40 96.436562 charges4 1 13 3 4 0 689 2464 1321 47 -1 5 1 13 3 4 1 689 2464 33 36 96.678696 in5 1 13 3 4 2 742 2468 74 32 94.680931 that5 1 13 3 4 3 835 2471 147 38 94.680931 respect,5 1 13 3 4 4 1004 2469 64 32 96.575668 ands 1 13 3 4 5 1087 2469 127 41 96.261833 having5 1 13 3 4 6 1231 2467 187 44 96.348175 thereupon5 1 13 3 4 7 1438 2471 161 40 96.489578 accepted5 1 13 3 4 8 1617 2471 59 32 96.464302 thes 1 13 3 4 9 1696 2467 164 44 93.297577 executed5 1 13 3 4 10 1879 2476 131 26 45.134262 consen' 1210... FEDERAL TRADE ‘COMMISSION DECISIONS “Decision and Order” Coe Len 83 F.T.C.

agreement and placed such agireément on the public record for a period = . of thirty (30) days, now in further conformity with the procedure pre-. ~ seribed in Section 2.34(b) of its rules, the Commission hereby issues its CRE complaint, makes the following jurisdictional findings and enters the has _ following order: - :

1. Respondent Missouri Quilting Company, ‘Inc. , isa corporation: organized, existing, and doing business under and by virtue of the laws. of the State of Missouri, with its office and principal place of business - located at 4193 Beck Ave. city of St. Louis, State of Mo. oo ~ Respondents Thomas C. Brown and Frank J. Badami are officers of — said corporation. They formulate, direct, and control the policies, acts, and practices of said corporation, and their 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 Tespondents, and the proceeding i is. in the public; interest. .

ORDER It is ordered,. That. respondent ‘Missouri Quilting Company, Inc., corporation, and its officers, and Thomas C.. Brown and Frank J. Badami, individually and.as officers of said corporation, trading under _ said corporate name or under any trade name or names, their successors and assigns, and respondents’ agents, representatives, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the introduction, or manufacture for introduction, into commerce, or the offering for sale, sale, transportation, distribution, delivery for shipment, or shipment in commerce of wool products, as “commerce” and “wool product” are defined in the Wool Products Labeling Act of 1939, do forthwith cease and desist from misbranding such: products by:

1. Falsely and deceptively stamping, tagging, labeling, or otherwise identifying such products as to the character or amount of the constituent fibers contained therein. 2. Failing to securely affix to, or place on, each such product a stamp, tag, label, or other means of identification showing in a clear and conspicuous manner each element of information required to be ‘disclosed by Section 4(a)(2) of the Wool Products Labeling Act of 1939, It ts further ordered, That respondents Missouri Quilting Company, 1c., a corporation, and its officers, and Thomas C. Brown and Frank J: idami, individually and as officers of said corporation, trading under id corporate name or any other trade name or names, their successors _ d assigns, and respondents’ representatives, agents, and employees, HOLIDAY MAGIC, INC., Et au.

1211 ; Order directly or through any corporate or other device, in connection with the introduction, delivery for introduction, manufacture for introduction, sale, advertising, or offering for sale, in commerce, or the transportation or causing to be transported in commerce, or the importation into the United States, of any textile fiber product, or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, or any textile fiber product which has been advertised or offered for sale in commerce; or in connection with the sale, offering for sale, advertising, delivery, transportation, or causing to be transported, after shipment in commerce, of any textile fiber product,. whether in its original state or contained in other textile fiber products, as the terms “commerce” and “textile fiber product” are defined in the Textile Fiber Products Identification Act, do forthwith cease and desist from failing to maintain and preserve proper records showing the fiber content of the textile fiber products manufactured by said respondents, as required by Section 6 of the Textile Fiber Products Identification Act and Rule 39 of the regulations promulgated thereunder. It is further ordered, That the individual respondents named herein promptly notify the Commission of the discontinuance of their present business or employment and their affiliation with a new business or employment. Such notice shall include respondents’ current business address and statement as to the nature of the business or employment in which they are engaged as well as a description of their duties and responsibilities.

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

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