[Federal Register Volume 59, Number 209 (Monday, October 31, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-26938]
[[Page Unknown]]
[Federal Register: October 31, 1994]
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FEDERAL TRADE COMMISSION
[File No. 932 3163]
Notations, Inc., et al.; Proposed Consent Agreement With Analysis
To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed Consent Agreement.
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SUMMARY: In settlement of alleged violations of federal law prohibiting
unfair acts and practices and unfair methods of competition, this
consent agreement, accepted subject to final Commission approval, would
prohibit, among other things, a Pennsylvania company and its president
from misbranding any textile product by mentioning or implying that the
product contains a fiber without using the generic fiber name required
by the Textile Fiber Products Identification Act and the Federal Trade
Commission rules, or by mentioning or implying that it contains a fiber
when it, in fact, does not. The respondents also would be required to
file with the Commission a continuing guaranty applicable to all
textile products they handle in the future.
DATES: Comments must be received on or before December 30, 1994.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pa. Ave., N.W., Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT:
Katharine Alphin, Atlanta Regional Office, 1718 Peachtree St., N.W.,
Room 1000, Atlanta, GA. 30367. (404) 347-4837.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby
given that the following consent agreement containing a consent order
to cease and desist, having been filed with and accepted, subject to
final approval, by the Commission, has been placed on the public record
for a period of sixty (60) days. Public comment is invited. Such
comments or views will be considered by the Commission and will be
available for inspection and copying at its principal office in
accordance with Section 4.9(b)(6)(ii) of the Commission's Rules of
Practice (16 CFR 4.9(b)(6)(ii)).
In the Matter of: Notations, Inc., a corporation, and Kurt
Erman, individually and as an officer of said corporation; File No.
932 3163. Agreement containing consent order to cease and desist.
The Federal Trade Commission having initiated an investigation of
certain acts and practices of Notations, Inc., a corporation and Kurt
Erman, individually and as an officer of said corporation, and it now
appearing that Notations, Inc., a corporation, and Kurt Erman,
individually and as an officer of said corporation, hereinafter
sometimes referred to as proposed respondents, are willing to enter
into an agreement containing an order to cease and desist from the use
of the acts and practices being investigated.
It is hereby agreed by and between Notations, Inc., by its duly
authorized officer, and Kurt Erman, individually and as an officer of
said corporation, and their attorney, and counsel for the Federal Trade
Commission that:
1. Proposed respondent Notations, Inc., is a corporation organized,
existing and doing business under and by virtue of the laws of the
Commonwealth of Pennsylvania, with its office and principal place of
business located at 109 Pike Circle, Huntingdon Valley, Pennsylvania
19062.
2. Proposed respondent Kurt Erman is the sole shareholder and
president of Notations, Inc. He formulates, directs and controls the
policies, acts and practices of said corporation and his office and
principal place of business are the same as Notations, Inc.
3. Proposed respondents admit all the jurisdictional facts set
forth in the draft of complaint here attached.
4. Proposed respondents waive:
(a) Any further procedural steps;
(b) The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law;
(c) All rights to seek judicial review or otherwise to challenge or
contest the validity of the order entered pursuant to this agreement;
and
(d) Any claim under the Equal Access to Justice Act.
5. This agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission it, together with the draft of
complaint contemplated thereby, will be placed on the public record for
a period of sixty (60) days and information in respect thereto publicly
released. The Commission thereafter may either withdraw its acceptance
of this agreement and so notify the proposed respondents, in which
event it will take such action as it may consider appropriate, or issue
and serve its complaint (in such form as the circumstances may require)
and decision, in disposition of the proceeding.
6. This agreement is for settlement purposes only and does not
constitute an admission by proposed respondents of facts, other than
jurisdictional facts, or of violations of law an alleged in the draft
of complaint here attached.
7. This agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Sec. 2.34 of the Commission's
Rules, the Commission may, without further notice to proposed
respondents, (1) issue its complaint corresponding in form and
substance with the draft of complaint here attached and its decision
containing the following order to cease and desist in disposition of
the proceeding and (2) make information public in respect thereto. When
so entered, the order to cease and desist shall have the same force and
effect and may be altered, modified or set aside in the same manner and
within the same time provided by statute for other orders. The order
shall become final upon service. Delivery by the U.S. Postal Service of
the complaint and decision containing the agreed-to order to proposed
respondents' address as stated in this agreement shall constitute
service. Proposed respondents waive any right they may have to any
other manner of service. The complaint may be used in construing the
terms of the order, and no agreement, understanding, representation, or
interpretation not contained in the order or the agreement may be used
to vary or contradict the terms of the order.
8. Proposed respondents have read the proposed complaint and order
contemplated hereby. They understand that once the order has been
issued, they will be required to file one or more compliance reports
showing that they have fully complied with the order. Proposed
respondents further understand that they may be liable for civil
penalties in the amount provided by law for each violation of the order
after it becomes final.
Order
I
It is ordered that respondents Notations, Inc., a corporation, its
successors and assigns, and its officers, and Kurt Erman, individually
and an officer 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,
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, as ``commerce'' and
``textile fiber product'' are defined in the Textile Fiber Products
Identification Act, 15 U.S.C. 70, hereinafter ``Textile Fiber Act,''
and the Rules and Regulations Under the Textile Fiber Products
Identification Act, 16 U.S.C. Sec. 303, hereinafter ``Rule(s),'' do
forthwith cease and desist from misbranding or falsely or deceptively
advertising any such product by:
A. Mentioning or implying fiber content without using the generic
fiber names in a manner consistent with the Textile Fiber Act and the
Rules thereunder; and
B. Mentioning or implying fiber content for a fiber that is not
present in such textile fiber product.
II
It is further ordered that respondents shall forthwith file with
the Commission a continuing guaranty applicable to all textile products
handled by respondents, in the form prescribed by Rule 38, 16 CFR
Sec. 303.38.
III
It is further ordered that respondent Notations, Inc., shall:
A. For a period of five (5) years after the service of this order,
keep copies of each stamp, tag, label or other form of identification
that shows information required by the Textile Fiber Act as well as
such records as will show the textile fiber products in which each
stamp, tag, label or other form of identification was affixed for each
product it introduces, manufactures for introduction, sells,
advertises, offers for sale or imports; and
B. For a period of five (5) years after the service of this order,
maintain and upon request make available to the Federal Trade
Commission for inspection and copying, the documents in Paragraph
III.A. above and such other documents and materials as shall
demonstrate full compliance with this order.
IV
It is further ordered that respondent, Notations, Inc., shall
within thirty (30) days after the date of service of this order,
provide a copy of this order to each of its current directors and
officers, and to each employee, agent and representative having
managerial, purchasing, importing, sales, advertising, or policy
responsibility with respect to the subject matter of this order.
V
It is further ordered that respondent, Notations, Inc., shall, in
writing, notify the Federal Trade Commission at least thirty (30) days
prior to any proposed change in the respondent such as dissolution,
assignment or sale resulting in the emergence of a successor
corporation, the creation or dissolution of subsidiaries or any other
such change in the corporation that may affect compliance obligations
arising out of the order.
VI
It is further ordered that, for a period of five (5) years from the
date of service of this order, respondent Kurt Erman, shall, in
writing, notify the Federal Trade Commission within thirty (30) days of
the discontinuance of his present business or employment and of his
affiliation with a new business or employment, each such notice to
include the respondent's new business address and a statement of the
nature of the business or employment in which the respondent is newly
engaged as well as a description of respondent's duties and
responsibilities in connection with the business or employment.
VII
It is further ordered that respondents shall, within sixty (60)
days after the date of service of this order, submit a verified report
in writing, to the Federal Trade Commission setting forth in detail the
manner and form in which they have complied with this order.
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission has accepted an agreement to a
proposed consent order from respondents Notations, Inc., and Kurt
Erman, individually and as an officer of the corporation.
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
The complaint alleges that respondents misbranded certain textile
fiber products by using the trade name Micro Silk, thereby implying
that silk, a fiber not present in the products, was present. These acts
and practices are in violation of the Textile Fiber Products
Identification Act, 15 U.S.C. 70; the Commission's Rules and
Regulations Under the Textile Fiber Products Identification Act, 16 CFR
303; and Section 5 of the Federal Trade Commission Act, 15 U.S.C.
Sec. 45.
The proposed order requires that the company cease and desist (1)
Mentioning or implying fiber content without using the generic fiber
names in a manner consistent with the Act and Rules, and (2) mentioning
or implying fiber content for a fiber that is not present in a textile
fiber product.
The purpose of this analysis is to facilitate public comment on the
proposed order, and it is not intended to constitute an official
interpretation of the agreement and proposed order or to modify in any
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 94-26938 Filed 10-28-94; 8:45 am]
BILLING CODE 6750-01-M
