Arkon Fashions, Inc

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IN THE MATTER OF ARKON FASHIONS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND WOOL PRODUCTS LABELING ACTS Docket C-2659. Complaint, Apr. 2.r 1!J75-Deci. ion Apr. , 1975 Consent order requiring a New York City clothing importer and distributor, among other things to cease misbranding its wool products. Apearances For the Commission: Jerr R. McDorw.l.d For the respondents: Pro se.

COMPLAINT Pursuant to the provisions of the Fedeml Trade Commssion Act and the Wool Products Labeling Act of 1939, and by virtue of the authority vested in it by said Acts, the Federal Trade Commission, having reason to believe that Arkon Fashions, Ine., a corpration, and Ahraham Kunen, individually and as an offeer of said eorpomtion, hereinafter referred to as respondents, have violated the provisions of said Acts and the:rules and regulations promulg-.ited under the Wool Products Labeling Act of 1939, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest ARKON FASHIONS, INC., ET AL. 817 8IG Complaint hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Arkon Fashions, Ine., is a corporation organized, existing and doing business under and by virtue of the laws of the State of New York, with its offce and principal place of business located at 8 W. 33rd St., N. Y., NY Individual respondent Abraham Kunen is ".n offeer of Arkon Fashions, Ine. He formulates, directs, and controls the acts and practices of the corporate respondent, including the acts and practices hereinafter set forth. His business address is the same as that of the corporate respondent.

Respondents are engaged in the importation of clothing, including but not limited to men s jaekets, manufactured from wool blend fibers and the sale and distribution of such products. PAR. 2. Respondents, now and for some time last past, have imported for introduction into commerce, introduced into commerce, transported distributed, delivered for shipment, shipped, offered for sale, and sold in commerce as "commerce" is defined in the Wool Products Labeling Act of 1939, wool products aB "wool product" is defined therein. PAR. 8. Certain of said wool products were misbranded by the respondents within the intent and meaning of Section 4(a)(I) of the Wool Products Labeling Act of 1939 and the rules and regulations promulgated thereunder, in that they were falsely and deceptively stamped, tagged, labeled, or otherwse identified with respect to the character and amount of the eonstituent fibers eontaned therein. Among such misbranded wool products, but not limited thereto, were certain wool blend jaekets stamped, tagged, labeled, or otherwise identifed by respondents as Shell: 50 percent reproeessed wool, 23 percent linen, 27 percent aerylie-pile: 63 percent aerylie, 37 percent cotton, whereas, in \ruth and in fact, said products contained substantially different fibers and amounts of fibers than represented. PAR. 4. Certn of said wool products were furher misbrdIded by respondents in that they were not stamped, tagged, labeled or otherwse identified as required under the provisions of Section 4(a)(2) of the Wool Products Labeling Aet of 1939 and in the maer and form as prescrihed by the rules and reguations promulg-dated under said Act. Among such misbraded wool products, but not limited thereto, were wool products, namely wool blend jaekets, with labels on or affixed thereto, which faied to disclose the percentage of the tota fiber weight of the said wool products, exclusive of ornamentation not exeeedig 5 per centum of said total fiher weight, of (1) wool, (2) reprocessed wool (3) reused wool, (4) each fiber other than wool, when said percentage by 818 FEDERAL TRADE COMMISSION Oi'CISIONS Decision and Order 85 weight of such fiber was 5 per centum or more, and (5) the aggregate of all other fibers.

PAR. 5. The aforesaid acts and praetiees of the respondents as herein alleged above, were, and are, in violation ofthe Wool Products Labeling Act of 1939 and the rules and regulations promulgated thereunder, all to the prejudice and injury of the public, and constituted, and now constitute, unfair and deceptive acts or practices in commerce, within the intent and meaning of the Federal Trade Commssion Aet. DECISION AND ORDER The Federal Trade Commssion having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furshed thereafter with a copy of a draft of complaint which the New York Regional Offee proposed to present to the Commssion for its consideration and which if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Aet and the Wool Products Labeling Act; and The respondents and counsel for the Commssion 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 signng 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 Commssion rules; and The Commission having thereafter considered the matter and having determined that it has 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 aeeepted the executed eonsent agreement and placed such agreement on the public record for a period of sixty (60) days, now in furher conformty with the procedure prescribed in Section 2.34(b) of its rules, the Commssion hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Arkon Fashions, Ine., is a corporation organed 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 8 W. 33rd St., N. , N.

Respondent Abraham Kunen is an offeer of said corpration. He formulates, directs and controls the acts, praetiees and policies of said corporation and his address is the same as that of said corp,."tion. 1\!U\.Vl l' A;:!1llh, U I.. AJ.. 816 Decision and Order Respondents are engaged in the importation and sale of wearng apparel including wool products.

2. The ederal Trade Commssion has jursdiction 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 Arkon Fashions, Ine., a corporation, its successors and assigns, and its officers, and Abraham Kunen individually and as an offieer of said corporation, and respondents representatives, agents, and employees, directly or through any corporation, subsidiary, division, or any other device, in connection with the introduction, or importing for introduction, into commerce, or 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 otherwse identifying such products as to the character or amount of the eonstituent fibers contained therein.

2. Failing to securely affix to or place on, each such product a stamp, tag, label, or other means of identifeation 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 is further orred That respondents notify, by delivery of a copy of this order by registered mail, each of their customers that purchased the wool products which gave rise to this complaint of the fact that such products were misbranded.

It is further orred That the individual respondent named herein promptly notify the Commssion of the diseontinuanee of his present business or employment and his affiiation with a new business or employment. Such notice shall include respondent's eurent business address and a statement as to the nature of the business or employment in which he is engaged, as well as a description of his duties and responsibilities.

It is further orred That the respondent eorpration shall forthwith distribute a copy of this order to each of its operating divisions. It is further orred That respondents notify the Commission at least thiry (30) days prior to any proposed change in the eorprate respondent such as dissolution, assigrent, or sale resulting in the emergence of a successor corpration, the creation or dissolution of suhsidiares or any other change in the corpration which may affect compliance obligations arising out of the order. r r.1Jr-,l"lft.Lli\ftLJD IJVUUUJ00IVl'1 1Jr vl.:lVl'10 Complaint 85 F.

It is further ordered That respondents shall, within sixty (60) days after serviee upon them of this order, file with the Commssion a report in wrting setting forth in detail the manner and form in which they have complied with the order to cease and desist contained herein.