Jockey International, Inc.; Proposed Consent Agreement With Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 932 3092]

Jockey International, Inc.; 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

require, among other things, a Wisconsin-based manufacturer of

underwear, hosiery, and sportswear to disclose the country where its

clothing is made and to use the correct generic fiber name for clothing

in advertisements contained in its mail order catalogs.

DATES: Comments must be received on or before April 25, 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:Robert Easton, FTC/S-4631, Washington,

DC 20580. (202) 326-3029.

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 Jockey International, Inc., a corporation

(hereinafter referred to as Jockey International, Inc. or proposed

respondent) and it now appearing that Jockey International, Inc., is

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 Jockey International, Inc., by

its duly authorized officer and counsel for the Federal Trade

Commission that:

1. Proposed respondent Jockey International, Inc., is a corporation

organized, existing and doing business under and by virtue of the laws

of the State of Wisconsin with its office and principal place of

business located at 2300 60th Street, Kenosha, Wisconsin.

2. This agreement is for settlement purposes only and does not

constitute an admission by proposed respondent of facts, other than

jurisdictional facts, or of violations of law as alleged in the draft

of complaint here attached.

3. Proposed respondent waives:

(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.

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 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 respondent, 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 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

respondent, (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

respondent's address as stated in this agreement shall constitute

service. Proposed respondent waives any rights it 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.

6. Proposed respondent has read the proposed complaint and order

contemplated hereby. It understands that once the order has been

issued, it will be required to file one or more compliance reports

showing that it has fully complied with the order. Proposed respondent

further understands that it may be liable for civil penalties in the

amount provided by law for each violation of the order after the order

becomes final.

Order

I

It is ordered, That respondent Jockey International, Inc., a

corporation, its successors and assigns, trading under its own name or

under any other name or names, and its officers, agents, licensees,

representatives and employees, directly or through any corporate or

other device, in connection with the offering for sale, selling or

advertising of any textile fiber product in any mail order catalog or

mail order promotional material which is used in the direct sale or

direct offering for sale of such textile fiber product, in commerce, as

the terms ``textile fiber product'' and ``commerce'' are defined in the

Textile Fiber Products Identification Act (15 U.S.C. 70) (``Textile

Act''), do forthwith cease and desist from:

1. Failing to state in the description of such textile fiber

product in a clear and conspicuous manner that such textile fiber

product is processed or manufactured in the United States of America,

or imported, or both; and

2. Mentioning or implying fiber content without using the generic

fiber names in a manner consistent with the Textile Act and the rules

and regulations thereunder.

II

It is further ordered, That respondent shall notify the 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 which may

affect compliance obligations arising out of the order.

III

It is further ordered, That respondent shall forthwith distribute a

copy of this order to each of its employees, agents, licensees and

representatives acting in connection with the offering for sale,

selling or advertising of any textile fiber product in any mail order

catalog or mail order promotional material which is used in the direct

sale or direct offering for sale of such textile fiber product, in

commerce, as the terms ``textile fiber product'' and ``commerce'' are

defined in the Textile Fiber Products Identification Act (15 U.S.C. 70)

(``Textile Act'').

IV

It is further ordered, That respondent shall within sixty (60) days

after service upon it of this order, file with the Commission a report,

in writing, setting forth in detail the manner and form in which it has

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 Jockey International, Inc. (``Jockey'').

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.

Jockey is a large, privately owned corporation headquartered in

Kenosha, Wisconsin, that uses the mail to sell clothing and other

textile products. The complaint alleges that Jockey, in selling textile

clothing products through mail order catalogs, did not tell customers

whether the products were made in the United States or imported.

Further, the complaint alleges that Jockey did not use the generic name

``spandex'' with the trademark ``Lycra'' to describe the type of

textile fibers used in goods it sold, but instead only used the

trademark ``Lycra.'' The complaint alleges that these actions by Jockey

violated the Textile Fiber Products Identification Act (``Textile

Act'') and the Commission's implementing rules, and constituted unfair

methods of competition and unfair and deceptive acts and practices in

violation of section 5 of the Federal Trade Commission Act.

The Textile Act and the Commission's rules, among other things,

require companies that sell textile products by mail order catalogs or

mail order promotional materials, such as coupons, to state clearly and

conspicuously whether the textile products are made in the United

States, or imported, or both. If fiber content is mentioned or implied

in a written advertisement, the Textile Act requires disclosure of the

generic name of the fiber. Additionally, if a fiber trademark is used

in advertising textile products, the Textile Act requires that the

generic name of the fiber appear next to the trademark.

The proposed order requires Jockey, in compliance with the Textile

Act and the Commission's rules, to inform its customers whether the

textile products it sells by mail are made in the United States, or

imported, or both, and to use the generic fiber names of such textile

products if it mentions or implies fiber content. Jockey does not admit

that it violated the law, but agrees to provide the information in the

future.

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. 94-4045 Filed 2-22-94; 8:45 am]

BILLING CODE 6750-01-M