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

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