[Federal Register Volume 59, Number 77 (Thursday, April 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9630]
[[Page Unknown]]
[Federal Register: April 21, 1994]
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FEDERAL TRADE COMMISSION
[File No. 932 3024]
Manzella Productions, 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 New York wholesaler of gloves, and its
owner, from mislabeling the country of origin of any of their products,
and from violating any provision of the Wool Products Labeling Act, and
would require them to pay $7,500 in disgorgement.
DATES: Comments must be received on or before June 20, 1994.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Brinley Williams, FTC/Cleveland Regional Office, 668 Euclid Ave., suite
520-A, Cleveland, OH 44114. (216) 522-4210.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 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
Sec. 4.9(b)(6)(ii) of the Commission's Rules of Practice (16 CFR
4.9(b)(6)(ii)).
Agreement Containing Consent Order To Cease and Desist
The Federal Trade Commission having initiated an investigation of
certain acts and practices of Manzella Productions, Inc., a
corporation, and Anthony L. Manzella, Jr., individually and as an
officer of said corporation (``proposed respondents''), and it now
appearing that proposed respondents are willing to enter into an
agreement containing an order to cease and desist from the acts and
practices being investigated.
It is hereby agreed by and between proposed respondents and their
attorney, and counsel for the Federal Trade Commission that:
1. Proposed respondents Manzella Productions, Inc., a corporation,
and Anthony L. Manzella, Jr., individually and as an officer of said
corporation, have an office or principal place of business located at
5684 Main Street, Post Office Box 1243, Buffalo, New York 14231.
2. Proposed respondents admit all the jurisdictional facts set
forth in the attached draft Complaint.
3. 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. All claims under the Equal Access to Justice Act.
4. 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 attached
draft Complaint, 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.
5. 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 as alleged in the draft
Complaint here attached.
6. 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 attached draft Complaint 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' addresses 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.
7. Proposed respondents have read the Complaint and the 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 Manzella Productions, Inc., a
corporation, and Anthony L. Manzella, Jr., individually and as an
officer of said corporation, their successors and assigns, and their
officers, agents, representatives and employees, directly or through
any corporation, subsidiary, division or other device, in connection
with the manufacturing, labeling, advertising, promotion, offering for
sale, sale or distribution of any gloves or other items of wearing
apparel in or affecting commerce, as ``commerce'' is defined in the
Federal Trade Commission Act, do forthwith cease and desist from
violating any provision of the Wool Products Labeling Act (15 U.S.C.
68) and the Commission's Rules adopted thereunder (16 CFR part 300),
and from misrepresenting, in any manner, directly or by implication,
the extent to which any such gloves or other item of wearing apparel
are made in the United States, or any other country.
II
It is further ordered that respondents, their successors and
assigns, shall pay Seven Thousand, Five Hundred Dollars ($7,500) as
disgorgement in lieu of consumer redress. Such payment shall be by
cashier's check or certified check made payable to the Federal Trade
Commission. Such check shall be held by counsel for the respondents
until this Order becomes final and then delivered to the Associate
Director for Enforcement, Bureau of Consumer Protection, Federal Trade
Commission, Washington, DC 20580, within ten (10) days of this Order
becoming final. In the event of any default in payment, which default
continues for more than ten (10) days beyond the due date of payment,
respondents shall pay interest as computed under 28 U.S.C. 1961, which
shall accrue on the unpaid balance from the date of default until the
date the balance is fully paid.
III
It is further ordered that for five (5) years after the last date
of dissemination of any representation covered by this Order,
respondents or their successors and assigns shall maintain and, upon
request, make available to the Federal Trade Commission for inspection
and copying:
(A) All materials that were relied upon in disseminating such
representations; and
(B) All tests, reports, studies, surveys, demonstrations or other
evidence in their possession or control that contradict, qualify or
call into question such representation, or the basis relied upon for
such representation, including complaints from consumers.
IV
It is further ordered that the respondent corporation shall
distribute a copy of this Order to each of its operating divisions and
to each of its officers, agents, representatives or employees engaged
in the preparation or placement of advertisements, promotional
materials, product labels or other such sales materials covered by this
Order.
V
It is further ordered that the respondent corporation shall notify
the Commission at least thirty (30) days prior to any proposed change
in the corporation, 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 under this Order.
VI
It is further ordered that respondent Anthony L. Manzella, Jr.,
shall, for a period of seven (7) years from the date of entry of this
Order, notify the Federal Trade Commission, within thirty (30) days, of
the discontinuance of his present business and of his affiliation with
any new business or employment. Each notice of affiliation with any new
business shall include his new business address and telephone number,
current home address, and a statement describing the nature of the
business or employment, and his duties and responsibilities.
VII
It is furthered ordered that respondents shall, within sixty (60)
days after service of this Order upon them, and at such other times as
the Commission may require, file will the Commission a report, in
writing, 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, subject to
final approval, to a proposed Consent Order from respondents Manzella
Productions, Inc., a corporation, and Anthony L. Manzella, Jr.,
individually and as an officer of said 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 and take other appropriate action, or make
final the proposed Order contained in the agreement.
The Commission's Complaint in this matter alleges that respondents
have sold and distributed gloves manufactured in a foreign country from
foreign components. It further alleges that respondents removed the
foreign country-of-origin labels from gloves and replaced them with
labels deceptively representing that the gloves were made in the
U.S.A., in violation of the Federal Trade Commission Act, the Wool
Products Labeling Act (WPLA), and Commission regulations pursuant to
the WPLA.
The Consent Order contains provisions designed to remedy the
violations charged and to prevent the respondents from engaging in
similar acts and practices in the future.
Part I of the proposed Order requires the respondents to cease
violating the WPLA and misrepresenting the extent to which any item of
wearing apparel is made in the United States or any other country.
Part II of the proposed Order provides that the respondents will
pay Seven Thousand, Five Hundred Dollars ($7,500) in disgorgement in
lieu of consumer redress. Such payment is to be made within ten (10)
days after the Order becomes final.
The proposed Order also requires the respondents to maintain
materials relied upon the claims covered by the Order, to distribute
copies of the Order to certain company officials and employees, to
notify the Commission of any changes in corporate structure that might
affect compliance with the Order, to notify the Commission of any
changes in the business or employment of the named individual
respondent, and to file one or more reports detailing compliance with
the Order.
The purpose of this analysis is to facilitate public comment on the
proposed Order. 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. 94-9630 Filed 4-20-94; 8:45 am]
BILLING CODE 6750-01-M