New York Women's Apparel Company Pays Civil Penalty To Settle FTC Charges that It Violated Care Labeling Rule

A New York City-based designer and manufacturer of women's clothing, Zoran Ladicorbic Ltd., has agreed to pay a $14,000 civil penalty to settle charges that it violated the Federal Trade Commission's Care Labeling Rule by failing to attach care labels to the garments it sold. In addition to failing to attach care labels, Zoran also allegedly failed to comply with the Textile Act and the Wool Act, which require disclosures about the fiber content and country of origin of garments. The FTC's complaint alleges that Zoran failed to identify the generic name and percentage weight of the fibers in its garments and failed to specify the country where the clothes were manufactured.

The Care Labeling Rule, which has been in effect since 1972, requires manufacturers and importers of clothing to attach care labels that state what regular care is needed for ordinary use of the garment. For this reason, care labels usually specify either a washing instruction or a drycleaning instruction.

In addition to requiring payment of the civil penalty, the settlement would prohibit Zoran from violating the Care Labeling Rule and the Textile and Wool Acts and regulations in the future. The settlement also contains various recordkeeping requirements to ensure the company's compliance with the decree.

The complaint was filed on the FTC's behalf in U.S. District Court for the Southern District of New York by the Department of Justice on July 22, 1998. The consent decree is subject to approval by the court. The Commission vote to refer the complaint and proposed settlement to the Department of Justice for filing was 4-0, with Commissioner Sheila F. Anthony recused.

NOTE: This consent decree is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Consent decrees have the force of law when signed by the judge.

Copies of the complaint and consent decree are available from the FTC's web site at http://www.ftc.gov and also from the FTC's Consumer Response Center, Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580; 202-FTC-HELP (202-382-4357); TDD for the hearing impaired 1-866-653-4261. To find out the latest news as it is announced, call the FTC NewsPhone recording at 202-326-2710.