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UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

COMMISSIONERS: Jon Leibowitz, Chairman

Edith Ramirez

Julie Brill

Maureen K. Ohlhausen

Joshua D. Wright

__________________________________________

)

In the Matter of ) File No. 0823199

)

THE NEIMAN MARCUS GROUP, INC., ) AGREEMENT CONTAINING

a corporation. ) CONSENT ORDER

)

__________________________________________)

The Federal Trade Commission (“Commission”) conducted an investigation of certain

acts and practices of The Neiman Marcus Group, Inc. (“proposed respondent”). Proposed

respondent, represented by counsel, is willing to enter into an agreement containing a consent

order resolving the allegations contained in the attached draft complaint. Therefore,

IT IS HEREBY AGREED by and between The Neiman Marcus Group, Inc., by its duly

authorized officers, and counsel for the Federal Trade Commission that:

1. Proposed respondent is a Delaware corporation with its principal office or place of

business at 1618 Main St., Dallas, TX 75201. 

2. Proposed respondent admits all the jurisdictional facts set forth in the draft complaint.

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; and

C. All rights to seek judicial review or otherwise to challenge or contest the validity

of the order entered pursuant to this agreement.

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 complaint, will be placed on the public record for a period of

thirty (30) days and information about it publicly released. The Commission thereafter

may either withdraw its acceptance of this agreement and so notify proposed respondent,
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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. Proposed respondent neither admits nor denies the allegations in the draft complaint,

other than jurisdictional facts, merely by entering into this agreement. 

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acceptance is not subsequently withdrawn by the Commission pursuant to the provisions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 Section 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 attached draft complaint and its decision containing the following order in disposition

of the proceeding, and (2) make information about it public. When so entered, the order

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 of the complaint and the decision and order to

proposed respondent’s address as stated in this agreement by any means specified in

Section 4.4(a) of the Commission’s Rules shall constitute service. Proposed respondent

waives any right it may have to any other manner of service. The complaint may be used

in construing the terms of the order. No agreement, understanding, representation, or

interpretation not contained in the order or in the agreement may be used to vary or

contradict the terms of the order.

7. Proposed respondent has read the draft complaint and consent order. It understands that

it may be liable for civil penalties in the amount provided by law and other appropriate

relief for each violation of the order after it becomes final. 

ORDER

DEFINITIONS

For purposes of this order, the following definitions shall apply:

1. “Respondent” shall mean The Neiman Marcus Group, Inc., its successors and assigns,

subsidiaries and divisions, and their officers, agents, representatives, and employees.

2. “Commerce” shall mean commerce among the several States or with foreign nations, or

in any Territory of the United States or in the District of Columbia, or between any such

Territory and another, or between any such Territory and any State or foreign nation, or

between the District of Columbia and any State or Territory or foreign nation.

3. “Covered product” shall mean any article of clothing or covering for any part of the body

that (a) is made in whole or in part of fur or used fur or (b) respondent advertises as

containing fake or faux fur.
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4. “Fur” shall mean any animal skin or part thereof with hair, fleece, or fur fibers attached

thereto, either in its raw or processed state, but shall not include such skins as are to be

converted into leather or which in processing shall have the hair, fleece, or fur fiber

completely removed.

5. “Fur product” shall mean any article of clothing or covering for any part of the body

made in whole or in part of fur or used fur.

I. 

IT IS ORDERED that, subject to the guaranty provisions of the Fur Products Labeling

Act (“Fur Act”), 15 U.S.C. § 69 et seq., and the Rules and Regulations Under the Fur Products

Labeling Act (“Fur Rules”), 16 C.F.R. Part 301, Respondent, directly or through any person,

partnership, corporation, subsidiary, division, trade name, or other device, in connection with the

labeling, advertising, promotion, offering for sale, sale, or distribution of any fur product in any

advertisement disseminated through the mail, on any website, or in any catalog, in or affecting

commerce, is hereby permanently restrained and enjoined from engaging in, causing other

persons to engage in, or assisting other persons to engage in, violations of the Fur Act and the

Fur Rules, including, but not limited to, falsely or deceptively advertising any fur product by

misrepresenting or failing to disclose:

A. That the fur in any fur product is faux or fake;

B. The name or names (as set forth in the Fur Products Name Guide, 16 C.F.R. § 301.0) of

the animal or animals that produced the fur, and such qualifying statement as may be

required pursuant to 15 U.S.C. § 69e(c); 

C. That the fur is used fur or that the fur product contains used fur when such is the fact; 

D. That the fur product or fur is bleached, dyed, or otherwise artificially colored fur when

such is the fact; 

E. That the fur product is composed in whole or in substantial part of paws, tails, bellies, or

waste fur when such is the fact; and

F. The name of the country of origin of any imported furs or those contained in the fur

product. 

Provided that, in the event the Fur Act or Fur Rules are amended or modified:

1. Respondent shall comply fully and completely with all applicable requirements

thereof, on and after the effective date of any such act or rule; and

2. That nothing in this Paragraph shall impose upon Respondent obligations beyond

what is required under the amended or modified version of the Fur Act or Rules. 
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Provided further that if Respondent (1) cannot legally obtain a guaranty when it takes an

ownership interest in a fur product, (2) does not embellish or misrepresent claims provided by

the manufacturer about that product, and (3) does not sell the product as a private label product,

then Respondent shall be liable for a violation of this Paragraph only if it knew or should have

known that the marketing or sale of the product would violate this Paragraph.

II.

IT IS FURTHER ORDERED that Respondent shall maintain and, upon request, make

available to the Commission, for inspection and copying, all records that will demonstrate

compliance with the requirements of this order, including, but not limited to: 

A. All acknowledgments of receipt of order obtained pursuant to Paragraph III.B.

B. For three (3) years after the last date of dissemination of any representation by

Respondent about any covered product in any advertisement disseminated through the

mail, on any website, or in any catalog;

1. All advertisements and promotional materials containing the representation;

2. All materials that were relied upon in disseminating the representation;

3. All tests, reports, studies, surveys, demonstrations, or other evidence in the

possession or control of any of the persons covered by Paragraph III.A that

contradict, qualify, or call into question the representation, or the basis relied

upon for the representation; and

4. All complaints and other communications with consumers that call into question

the representation, or the basis relied upon for the representation, in connection

with a specific product purchased by a specific consumer, and all communications

with governmental or consumer protection organizations that contradict, qualify,

or call into question the representation, or the basis relied upon for the

representation.

III.

IT IS FURTHER ORDERED that Respondent shall:

A. For a period of three (3) years, deliver a copy of this order to all employees, agents, and

representatives having responsibilities with respect to Respondent’s marketing or

advertising of any covered product in any advertisement disseminated through the mail,

on any website, or in any catalog and to any manager or officer in the chain of command

of such employees, agents, and representatives, within thirty (30) days after (1) the date

of service of this order, or (2) the person assumes a position covered by this paragraph.
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B. Secure from each person receiving this order pursuant to this paragraph a signed and

dated statement acknowledging receipt of this order.

IV.

IT IS FURTHER ORDERED that Respondent shall notify the Commission in connection

with compliance with this order as follows:

A. At least thirty (30) days prior to any change in the corporation that may affect

compliance obligations arising under this order, including, but not limited to, a

dissolution, assignment, sale, merger, or other action, that would result in the emergence

of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate

that engages in any acts or practices subject to this order; the proposed filing of a

bankruptcy petition; or a change in the corporate name or address. Provided that, with

respect to any proposed change in the corporation about which Respondent learns less

than thirty (30) days prior to the date such action is to take place, Respondent shall notify

the Commission as soon as is practicable after obtaining such knowledge.

B. Within sixty (60) days after the date of service of this order, file with the Commission a

true and accurate report, in writing, setting forth in detail the manner and form of its own

compliance with this order. Within ten (10) days of receipt of written notice from a

representative of the Commission, it shall submit additional true and accurate written

reports.

C. Unless otherwise directed by a representative of the Commission in writing, all notices

required by this Part shall be emailed to Debrief@ftc.gov or sent by overnight courier

(not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of

Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW,

Washington, DC 20580. The subject line must begin: FTC v. The Neiman Marcus

Group, Inc., File Number ________. 

V. 

IT IS FURTHER ORDERED that this order will terminate twenty (20) years from the

date of its issuance, or twenty (20) years from the most recent date that the United States or the

Commission files a complaint (with or without an accompanying consent decree) in federal court

alleging any violation of the order, whichever comes later. Provided that the filing of such a

complaint will not affect the duration of:

A. Any Part in this order that terminates in less than twenty (20) years; 

B. This order, if such complaint is filed after the order has terminated pursuant to this Part.

Provided, further, that if such complaint is dismissed, or a federal court rules that the

Respondent did not violate any provision of the order, and the dismissal or ruling is

either not appealed or upheld on appeal, then the order will terminate according to this

Part as though the complaint had never been filed, except that the order will not terminate
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between the date such complaint is filed and the later of the deadline for appealing such

dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

Signed this ________ day of January, 2013.

THE NEIMAN MARCUS GROUP, INC. FEDERAL TRADE COMMISSION

________________________________ ________________________________

By: Matthew Wilshire

 

_______________________________ ________________________________

By: Daniel C. Schwartz Randall David Marks

 Bryan Cave LLP

 Attorney for Respondents Counsel for the Federal Trade Commission 

APPROVED:

________________________________

James Kohm 

Associate Director

Division of Enforcement

________________________________

Charles A. Harwood

Acting Director 

Bureau of Consumer Protection