95-23046. Rule Concerning Deception as to Non-Prismatic and Partially Prismatic Instruments Being Prismatic Binoculars  

  • [Federal Register Volume 60, Number 180 (Monday, September 18, 1995)]
    [Proposed Rules]
    [Pages 48065-48067]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 95-23046]
    
    
    
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    FEDERAL TRADE COMMISSION
    16 CFR Part 402
    
    
    Rule Concerning Deception as to Non-Prismatic and Partially 
    Prismatic Instruments Being Prismatic Binoculars
    
    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 deception as to non-prismatic and partially prismatic 
    instruments being prismatic binoculars (``Binocular Rule''), 16 CFR 
    Part 402. The proceeding will address whether or not the Binocular 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    should be repealed.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 
    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 NW., Washington, DC 20580, telephone 
    number (202) 326-2506. Comments and requests to testify should be 
    identified as ``16 CFR Part 402--Comment--Binocular Rule'' and ``16 CFR 
    Part 402--Request to Testify--Binocular 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:
    Phillip Priesman, Attorney, Bureau of Consumer Protection, Division of 
    Advertising Practices, Sixth Street and Pennsylvania Avenue NW., 
    Washington, 
    
    [[Page 48066]]
    DC 20580, telephone number (202) 326-2484.
    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 Binocular Rule, 60 FR 27240. In accordance with mandates of 
    section 18 of the Federal Trade Commission Act (``FTC Act''), 15 U.S.C. 
    57a, 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 one public comment.
        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 Binocular 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 Binocular Rule was published in final form in the Federal 
    Register on June 5, 1964, and became effective on December 2, 1964. The 
    Rule requires a clear and conspicuous disclosure on any advertising or 
    packaging for non-prismatic or partially prismatic binoculars that the 
    instruments are not fully prismatic. Fully prismatic binoculars rely on 
    a prism within the instrument to reverse the visual image entering the 
    lens so that it appears right-side up to the user. Other binoculars 
    rely partially or entirely on mirrors to reverse the visual image. When 
    the rule was promulgated, the Commission was concerned that consumers 
    could be misled into believing that non-prismatic binoculars were in 
    fact prismatic, absent such a disclosure.
        To prevent consumer deception, the rule proscribed the use of the 
    term ``binocular'' to describe anything other than a fully prismatic 
    instrument, unless the term was modified to indicate the true nature of 
    the item. Under the Rule, non-prismatic instruments could be identified 
    as binoculars only if they incorporated a descriptive term such as 
    ``binocular-nonprismatic,'' ``binocular-mirror prismatic,'' or 
    ``binocular-nonprismatic mirror.''
        Following publication of the ANPR, the Commission received one 
    public comment regarding the Binocular Rule. The comment, from an 
    importer and manufacturing company, suggested that there may be a 
    continuing need for the Rule because field glasses and opera glasses, 
    both of which are non-prismatic, are still advertised and sold today. 
    The comment acknowledged, however, that present-day binoculars are 
    fully prismatic, while the non-prismatic instruments are identified as 
    either field glasses or opera glasses rather than binoculars. Thus, 
    since it appears that all instruments sold as binoculars are prismatic, 
    the Commission believes that the Binocular Rule may no longer be 
    needed. Repeal of the Rule will also further the objectives of reducing 
    obsolete government regulation.
    
    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.
    
    [[Page 48067]]
    
    
    Questions
        (1) Is any manufacturer currently manufacturing non-prismatic or 
    partially-prismatic binoculars?
        (2) Is any individual or business entity currently marketing non-
    prismatic or partially-prismatic binoculars?
        (3) Do any retail stores or suppliers still maintain stocks of non-
    prismatic or partially-prismatic binoculars?
        (4) Is any manufacturer or marketer identifying non-prismatic field 
    glasses or opera glasses as binoculars?
        (5) Has technology changed so that the Rule is no longer needed?
        (6) Are there any other federal or state laws or regulations, or 
    private industry standards, that eliminate the need for the Rule?
        (7) What are the benefits and costs of the rule to consumers?
        (8) What are the benefits and costs of the Rule to firms subject to 
    the Rule's requirements?
        (9) Should the Rule be kept in effect or should it 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 section of this notice.
    
    VI. Preliminary Regulatory Analysis
    
        The Regulatory Flexibility Act (``FRA'') 5 U.S.C. 601-11, requires 
    an analysis of the anticipated impact of the proposed repeal of the 
    Rule on small business.\2\ 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, any significant alternatives to the proposed action that 
    accomplish its objectives and, at the same time, minimize its impact on 
    small entities.
    
        \2\ 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 Binocular Rule does not impose ``information collection 
    requirements'' under the Paperwork Reduction Act (``PRA''), 44 U.S.C. 
    3501 et seq. The Rule, however, does contain a disclosure requirement, 
    which calls for a clear and conspicuous disclosure on any advertising 
    or packaging for non-prismatic or partially prismatic binoculars that 
    the instruments are not fully prismatic.\3\ Accordingly, repeal of the 
    Rule would eliminate any burdens on the public imposed by those 
    disclosure requirements.
    
        \3\ Under amendments to the PRA 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 402
    
        Binoculars, Trade practices.
    
        Authority: 15 U.S.C. 41-58.
    
        By direction of the Commission.
    Donald S. Clark,
    Secretary.
    [FR Doc. 95-23046 Filed 9-15-95; 8:45 am]
    BILLING CODE 6750-01-M
    
    

Document Information

Published:
09/18/1995
Department:
Federal Trade Commission
Entry Type:
Proposed Rule
Action:
Notice of proposed rulemaking.
Document Number:
95-23046
Dates:
Written comments must be submitted on or before October 18, 1995.
Pages:
48065-48067 (3 pages)
PDF File:
95-23046.pdf
CFR: (1)
16 CFR 402