[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