[Federal Register Volume 64, Number 126 (Thursday, July 1, 1999)]
[Notices]
[Pages 35662-35663]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16708]


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FEDERAL TRADE COMMISSION

[D09287]


Continental Gown Cleaning Service, Inc., et al.; Analysis To Aid 
Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint that accompanies the consent agreement and the terms of the 
consent order--embodied in the consent agreement--that would settle 
these allegations.

DATES: Comments must be received on or before August 30, 1999.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 600 Pennsylvania Avenue, NW, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Constance Vecellio, FTC/S-3231, 601 
Pennsylvania Avenue, NW, Washington, DC 20580, (202) 326-2966.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Section 3.25(f) 
of the Commission's Rules of Practice, 16 CFR 3.25(f), notice is hereby 
given that the above-captioned 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. The following Analysis to Aid 
Public Comment describes the terms of the consent agreement, and the 
allegations in the complaint. An electronic copy of the full text of 
the consent agreement package can be obtained from the FTC Home Page 
(for June 23, 1999), on the World Wide Web, at ``http://www.ftc.gov/os/
actions97.htm.'' A paper copy can be obtained from the FTC Public 
Reference Room, Room H-130, 600 Pennsylvania

[[Page 35663]]

Avenue, NW, Washington, DC 20580, either in person or by calling (202) 
326-3627.
    Public comment is invited. Comments should be directed to: FTC/
Office of the Secretary, Room 159, 600 Pennsylvania Avenue, NW, 
Washington, DC 20580. Two paper copies of each comment should be filed, 
and should be accompanied, if possible, by a 3\1/2\ inch diskette 
containing an electronic copy of the comment. 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)).

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement to a proposed consent order from Continental 
Gown Cleaning Service, Inc., Nationwide Gown Cleaning Service, Inc., 
Prestige Gown Cleaning Service, Inc., Gown Cleaning Service, Inc., and 
Jonathan Ashley, Ltd., and Lewis Weissman and Gary Marcus, the 
principals who control these corporations (referred to collectively as 
``Continental Gown''). The agreement would settle a proposed complaint 
by the Federal Trade Commission that Continental Gown engaged in unfair 
or deceptive acts or practices in violation of Section 5(a) of the 
Federal Trade Commission Act.
    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.
    This matter concerns care labeling of wedding gowns and other 
formal wear and advertising practices related to the sale of the 
``Zurcion Method'' of drycleaning and preservation of these gowns. The 
administrative complaint alleged that Continental Gown violated the FTC 
Act by distributing care labels that read ``Dryclean Only by Zurcion 
Method'' (hereinafter ``Zurcion labels'') to clothing companies who 
used the labels. The complaint alleged that these labels do not comply 
with the Commission's Care Labeling Rule because they fail to provide 
information to consumers that is required by the Rule. The complaint 
alleged that by distributing the Zurcion labels, Continental Gown 
provided apparel companies with the means and instrumentalities with 
which to violate the Care Labeling Rule. The complaint also alleged 
that Continental Gown had falsely represented in advertising that: (1) 
The Zurcion labels complied with the Care Labeling Rule, (2) that the 
Zurcion Method of drycleaning is patented, (3) the Zurcion Method is 
the only safe and effective cleaning method for wedding gowns and other 
formal wear, and (4) Continental Gown and the other named cleaning 
companies were the only cleaners who can clean wedding gowns and other 
formal wear safely and effectively. The complaint alleged that 
Respondents falsely represented that they had a reasonable basis for 
these representations. The complaint also alleged that Respondents 
advertised their guarantee as unconditional, whereas in fact 
undisclosed conditions were placed on the guarantee.
    The proposed consent order contains provisions designed to prevent 
Continental Gown from engaging in similar acts and practices in the 
future. Part I of the proposed consent order contains a general 
prohibition against providing apparel manufacturers and importers and 
retail and wholesale stores with the means and instrumentalities with 
which to violate the FTC Act and the Care Labeling Rule. It specifies 
that Continental Gown may not provide care labels or other tags, such 
as hang-tags that are pinned to garments, that fail to provide the 
specific information required by the Rule or that represent that the 
Zurcion Method is the only cleaning method that can be used safely and 
effectively to clean the garment or that Continental Gown is the only 
cleaner who can clean the garments. Part I also requires Continental 
Gown to possess a written statement from an apparel manufacturer or 
importer stating the apparel company's reasonable basis for any care 
instructions that appear on labels or tags disseminated by Continental 
Gown.
    Parts II, III, and IV of the proposed consent order address 
Continental Gown's advertising representations. Part II prohibits 
Continental Gown from making misrepresentations regarding the Care 
Labeling Rule or compliance with the Rule. Part III prohibits 
Continental Gown from misrepresenting that the Zurcion Method or any 
other cleaning or preservation method is patented. Part IV prohibits 
misrepresentations regarding the comparative or absolute safety or 
efficacy of any cleaning or preservation method, service, company, or 
product. Part IV requires competent and reliable evidence as 
substantiation for safety or efficacy claims and specifies that 
competent and reliable scientific evidence may be required when 
appropriate.
    Part V addresses the guarantee allegation of the complaint. It 
prohibits representations that a garment cleaning or preservation 
service is guaranteed unless Continental Gown discloses any material 
limitations or conditions on the guarantee.
    Parts VI and VII concern contacts with apparel companies, consumers 
and others regarding Zurcion labels and promotional materials. Part VI 
requires Continental Gown to notify certain garment manufacturers or 
importers with whom Continental Gown did business that they should stop 
using the Zurcion labels and promotional materials, and to provide a 
copy of the Consent Order with the notice. Part VII requires 
Continental Gown to disclose to persons (other than apparel companies) 
who contact them regarding the cleaning or preservation of garments 
bearing Zurcion labels that other cleaning methods may be used safely 
and effectively to clean the garments. Part VII also requires 
Continental Gown to refer these persons to the manufacturer or importer 
of their garment to obtain cleaning instructions, and requires 
Continental Gown to provide information about how consumers can contact 
those companies.
    The proposed order also contains provisions regarding distribution 
of the order, recordkeeping, notification of changes in corporate 
status, termination of the order, and the filing of a compliance 
report.
    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 the proposed order or to modify 
their terms in any way.

    By Direction of the Commission.
Benjamin I. Berman,
Acting Secretary.
[FR Doc. 99-16708 Filed 6-30-99; 8:45 am]
BILLING CODE 6750-01-M