[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