[Federal Register Volume 60, Number 180 (Monday, September 18, 1995)]
[Proposed Rules]
[Pages 48067-48070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-23042]
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FEDERAL TRADE COMMISSION
16 CFR Part 404
Rule Concerning Deceptive Advertising and Labeling as to Size of
Tablecloths and Related Products
AGENCY: Federal Trade Commission.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Federal Trade Commission (``Commission'') announces the
commencement of a rulemaking proceeding for the trade regulation rule
concerning Deceptive Advertising and Labeling as to Size of Tablecloths
and Related Products (``Tablecloth Rule'' or ``Rule''), 16 CFR Part
404. The proceeding will address whether or not the Tablecloth Rule
should be repealed. The Commission invites interested parties to submit
written data, views, and arguments on how the Rule has affected
consumers, businesses and others, and on whether there currently is a
need for the Rule. This notice includes a description of the procedures
to be followed, an invitation to submit written comments, a list of
questions and issues upon which the Commission particularly desires
[[Page 48068]]
comments, and instructions for prospective witnesses and other
interested persons who desire to participate in the proceeding.
DATES: Written comments must be submitted on or before October 18,
1995.
Notifications of interest in testifying must be submitted on or
before October 18, 1995. If interested parties request the opportunity
to present testimony, the Commission will publish a notice in the
Federal Register stating the time and place at which the hearings will
be held and describing the procedures that will be followed in
conducting the hearings. In addition to submitting a request to
testify, interested parties who wish to present testimony must submit,
on or before October 18, 1995, a written comment or statement that
describes the issues on which the party wishes to testify and the
nature of the testimony to be given.
ADDRESSES: Written comments and requests to testify should be submitted
to Office of the Secretary, Federal Trade Commission, Room H-159, Sixth
Street and Pennsylvania Avenue, N.W., Washington, DC 20580, telephone
number 202-326-2506. Comments and requests to testify should be
identified as ``16 CFR Part 404--Comment--Tablecloth Rule'' and ``16
CFR Part 404--Request to Testify--Tablecloth Rule,'' respectively. If
possible, submit comments both in writing and on a personal computer
diskette in Word Perfect or other word processing format (to assist in
processing, please identify the format and version used). Written
comments should be submitted, when feasible and not burdensome, in five
copies.
FOR FURTHER INFORMATION CONTACT:
John A. Crowley, Attorney, Bureau of Consumer Protection, Division of
Service Industry Practices, Room H-200, Sixth Street and Pennsylvania
Avenue, N.W., Washington, DC 20580, telephone number 202-326-3280.
SUPPLEMENTARY INFORMATION:
I. Introduction
On May 23, 1995 the Commission published an Advance Notice of
Proposed Rulemaking (``ANPR'') seeking comment on the proposed repeal
of the Tablecloth Rule, 60 FR 27242. In accordance with mandates of
section 18 of the Federal Trade Commission Act (``FTC Act''), 15 U.S.C.
47a, the ANPR was sent to the Chairman of the Committee on Commerce,
Science, and Transportation, United States Senate and the Chairman of
the Subcommittee on Commerce, Trade and Hazardous Materials, United
States House of Representatives. The ANPR comment period closed on June
22, 1995. The Commission received no public comments.
Pursuant to the FTC Act, 15 U.S.C. 41-58, and the Administrative
Procedure Act, 5 U.S.C. 551-59, 701-06, by this Notice of Proposed
Rulemaking (``NPR'') the Commission initiates a proceeding to consider
whether the Tablecloth Rule should be repealed or remain in effect, and
solicits public comments.\1\ The Commission is also interested in
comments on whether the Rule should be streamlined or otherwise
amended. If the Commission determines, based on the data,views and
arguments submitted, that the Commission should consider additional
alternatives, it will publish a supplemental notice of proposed
rulemaking and will request public comments on those alternatives.
\1\ In accordance with mandates of section 18 of the FTC Act, 15
U.S.C. 57a, the Commission submitted this NPR to the Chairman of the
Committee on Commerce, Science, and Transportation, United States
Senate and the Chairman of the Subcommittee on Commerce, Trade and
Hazardous Materials, United States House of Representatives 30 days
prior to publication of the NPR.
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The Commission is undertaking this rulemaking proceeding as part of
the Commission's ongoing program of evaluating trade regulation rules
and industry guides to determine their effectiveness, impact, cost and
need. This proceeding also responds to President Clinton's National
Regulatory Reinvention Initiative, which, among other things, urges
agencies to eliminate obsolete or unnecessary regulations.
II. Background Information
The Tablecloth Rule regulates the advertising, labeling and marking
of the dimensions of tablecloths and related products. The Commission
had found that the practice of labeling tablecloths and related
products by the dimensions of the unfinished material used in their
construction (cut size) was misleading consumers about the actual size
of tablecloths and related products. To correct this misconception, the
Commission in 1964 promulgated the Tablecloth Rule which provides that
it is an unfair method of competition and an unfair and deceptive act
or practice to use the ``cut size'' of the materials from which a
tablecloth or related product is made to describe the size of a
tablecloth or related product unless:
(a) ``Such `cut size' dimensions are accompanied by the words `cut
size' ''; and
(b) ``The `cut size' is accompanied by a clear and conspicuous
disclosure of the dimensions of the finished products and by an
explanation that such dimensions constitute the finished size''.\2\
\2\ The rule then gives an example of proper size marking:
``Finished size 50'' x 68''; Cut size 52'' x 70''.''
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The Commission, as part of its oversight responsibilities, reviews
rules and guides periodically. These reviews seek information about the
costs and benefits of the Commission's rules and guides and their
regulatory and economic impact. The information obtained assists the
Commission in identifying rules and guides that warrant modification or
rescission. Accordingly on April 19, 1993, the Commission published in
the Federal Register a request for public comments on its Trade
Regulation Rule on Deceptive Advertising and labeling as to Size of
Tablecloths and Related Products, 16 CFR 404 (``Rule'').
In its Request for Comment, the Commission asked commenters to
address the costs and benefits of the rule, whether there was a
continuing need for this regulation, the burdens placed on businesses
subject to this regulation, whether changes should be made, any
conflicts with other laws and whether changes in technology affected
the rule.
Only one specific comment relating to the Tablecloth Rule was
received, which generally supported a continuation of this regulation.
In addition to this specific comment, one general comment,
applicable to several rules being reviewed was received from an
advertising agency association. This organization recommended
rescission of the Tablecloth Rule, because the general prohibitions of
the FTC Act covering false and deceptive advertising apply to the
tablecloth and related products industry and the Rule creates
unnecessary administrative costs for the government, industry members
and consumers.
Commission staff also engaged in an informal review of industry
practices by examining the marking of dimensions on tablecloths and
other items subject to the rule available for retail sale at several
national chain stores. This informal review revealed no instances of
rule violations. In fact, it appeared from that limited review that
industry products were marked with only the finished size.
Additionally, the Commission has no record of receiving any complaint
regarding non-compliance with the rule or of initiating any law
enforcement actions alleging violations of the rule's requirements, 60
[[Page 48069]]
FR 27242. Finally, the Uniform Packaging and Labeling Regulation, which
has been adopted by 47 states, regulates the labeling of tablecloths
and related products, and appears to provide that these items must be
labeled with their finished size, 60 FR 27242.
On May 23, 1995, the Commission issued an Advance Notice of
Proposed Rulemaking (ANPR) based on a review of the submissions
received in response to the aforementioned request for comments. The
Commission determined that there may no longer be a need to continue
the Rule in light of the apparent changes in industry practices and the
existence of laws in nearly all of the states that appear to mandate
point-of-sale disclosures similar to those required by the Rule. No
comments were received in response to this request.
III. Rulemaking Procedures
The Commission finds that the public interest will be served by
using expedited procedures in this proceeding. First, there do not
appear to be any material issues of disputed fact to resolve in
determining whether to repeal the Rule. Second, the use of expedited
procedures will support the Commission's goal of eliminating obsolete
or unnecessary regulations without an undue expenditure of resources,
while ensuring that the public has an opportunity to submit data, views
and arguments on whether the Commission should repeal the Rule.
The Commission, therefore, has determined, pursuant to 16 CFR 1.20,
to use the procedures set forth in this notice. These procedures
include: (1) Publishing this Notice of Proposed Rulemaking; (2)
soliciting written comments on the Commission's proposal to repeal the
Rule; (3) holding an informal hearing, if requested by interested
parties; (4) obtaining a final recommendation from staff and (5)
announcing final Commission action in a notice published in the Federal
Register.
IV. Invitation to Comment and Questions for Comment
Interested persons are requested to submit written data, views or
arguments on any issue of fact, law or policy they believe may be
relevant to the Commission's decision on whether to repeal the Rule.
The Commission requests that commenters provide representative factual
data in support of their comments. Individual firms' experiences are
relevant to the extent they typify industry experience in general or
the experience of similar-sized firms. Commenters opposing the proposed
repeal of the Rule should explain the reasons they believe the Rule is
still needed and, if appropriate, suggest specific alternatives.
Proposals for alternative requirements should include reasons and data
that indicate why the alternatives would better protect consumers from
unfair or deceptive acts or practices under section 5 of the FTC Act,
15 U.S.C. 45.
Although the Commission welcomes comments on any aspect of the
proposed repeal of the Rule, the Commission is particularly interested
in comments on questions and issues raised in this Notice. All written
comments should state clearly the question or issue that the commenter
is addressing.
Before taking final action, the Commission will consider all
written comments timely submitted to the Secretary of the Commission
and testimony given on the record at any hearings scheduled in response
to requests to testify. Written comments submitted will be available
for public inspection in accordance with the Freedom of Information
Act, 5 U.S.C. 552, and Commission regulations, on normal business days
between the hours of 8:30 a.m. to 5:00 p.m. at the Federal Trade
Commission, Public Reference Room, Room H-130, Federal Trade
Commission, Sixth Street and Pennsylvania Avenue, NW., Washington, DC
20580, telephone number 202-326-2222.
Questions
(1) Do manufacturers and sellers of tablecloths currently use ``cut
size'' as a means of marking the size of their products for sale at
retail to customers?
(2) Does the fact that nearly all of the states have adopted the
Uniform Packaging and Labeling Regulation, which governs the labeling
of tablecloths, eliminate or greatly lessen the need for the Tablecloth
Rule?
(3) Are there other federal or state laws or regulations, or
private industry standards that eliminate a need for the Rule?
(4) What are the benefits and the costs of the Rule to consumers?
(5) What are the benefits and the costs of the Rule to firms
subject to the Rule's requirements?
(6) Does this Rule overlap or conflict with other federal, state,
or local government laws or regulations?
(7) Is there a continuing need for the Rule or should the Rule be
repealed?
V. Requests for Public Hearings
Because there does not appear to be any dispute as to the material
facts or issues raised by this proceeding and because written comments
appear adequate to present the views of all interested parties, a
public hearing has not been scheduled. If any person would like to
present testimony at a public hearing, he or she should follow the
procedures set forth in the DATES and ADDRESSES sections of this
Notice.
VI. Preliminary Regulatory Analysis
The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-11, requires
an analysis of the anticipated impact of the proposed repeal of the
Rule on small businesses.\3\ The analysis must contain, as applicable,
a description of the reasons why action is being considered, the
objectives of and legal basis for the proposed action, the class and
number of small entities affected, the projected reporting,
recordkeeping and other compliance requirements being proposed, any
existing federal rules which may duplicate, overlap or conflict with
the proposed action, and any significant alternatives to the proposed
action that accomplish its objectives and, at the same time, minimize
its impact on small entities.
\3\ Section 22 of the FTC Act, 15 U.S.C. 57b-3, also requires
the Commission to perform ``regulatory impact analyses'' of a
proposed rule, but only if the rule will have certain
``significant'' economic or regulatory effects. The Commission has
determined that a preliminary regulatory analysis is not required by
section 22 in this proceeding because the Commission has no reason
to believe that repealing the Rule will have a ``significant''
economic or regulatory impact, either beneficial or detrimental,
upon persons subject to the Rule or upon consumers.
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A description of the reasons why action is being considered and the
objectives of the proposed repeal of the Rule have been explained
elsewhere in this Notice. Repeal of the Rule would appear to have
little or no effect on any small business. The Commission is not aware
of any existing federal laws or regulations that would conflict with
repeal of the Rule.
In light of these reasons, the Commission certifies, pursuant to
section 605 of RFA, 5 U.S.C. 605, that if the Commission determines to
repeal the Rule that action will not have a significant impact on a
substantial number of small entities. To ensure that no substantial
economic impact is being overlooked, however, the Commission requests
comments on this issue. After reviewing any comments received, the
Commission will determine whether it is necessary to prepare a final
regulatory flexibility analysis.
VII. Paperwork Reduction Act
The Tablecloth Rule does not impose ``information collection
requirements'' under the Paperwork Reduction Act
[[Page 48070]]
(``PRA''), 44 U.S.C. 3501 et seq. The Rule, however, does contain
disclosure requirements, which specify that certain additional
information must be given whenever the words ``cut size'' are used to
describe the dimensions of a tablecloth or other product.\4\
Accordingly, repeal of the Rule would eliminate any burdens on the
public imposed by these disclosure requirements.
\4\ Under amendments to the P.R.A. in the Paperwork Reduction
Act of 1995 (Pub. L. 104-13, 109 Stat. 163, to be codified at 44
U.S.C. 3501-20), which will become effective on October 1, 1995,
these third-party disclosures may constitute a ``collection of
information'' for which OMB clearance must be sought.
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VIII. Additional Information for Interested Persons
A. Motions or Petitions
Any motions or petitions in connection with this proceeding must be
filed with the Secretary of the Commission.
B. Communications by Outside Parties to Commissioners or Their Advisors
Pursuant to Rule 1.18(c) of the Commission's Rules of Practice, 16
CFR 1.18(c), communications with respect to the merits of this
proceeding from any outside party to any Commissioner or Commissioner's
advisor during the course of this rulemaking shall be subject to the
following treatment. Written communications, including written
communications from members of Congress, shall be forwarded promptly to
the Secretary for placement on the public record. Oral communications,
not including oral communications from members of Congress, are
permitted only when such oral communications are transcribed verbatim
or summarized at the discretion of the Commissioner or Commissioner's
advisor to whom such oral communications are made, and are promptly
placed on the public record, together with any written communications
relating to such oral communications. Memoranda prepared by a
Commissioner or Commissioner's advisor setting forth the contents of
any oral communications from members of Congress shall be placed
promptly on the public record. If the communication with a member of
Congress is transcribed verbatim or summarized, the transcript or
summary will be placed promptly on the public record.
List of Subjects in 16 CFR Part 404
Advertising, Trade practices, Tablecloths and related products.
Authority: 15 U.S.C. 41-58.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-23042 Filed 9-15-95; 8:45 am]
BILLING CODE 6750-01-M
