Manzella Productions, Inc., et al.; Proposed Consent Agreement With Analysis To Aid Public Comment

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