99-25419. The Wire Works, Inc., et al.; Analysis To Aid Public Comment  

  • [Federal Register Volume 64, Number 189 (Thursday, September 30, 1999)]
    [Notices]
    [Pages 52790-52791]
    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
    [FR Doc No: 99-25419]
    
    
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    FEDERAL TRADE COMMISSION
    
    [File No. 982-3588]
    
    
    The Wire Works, 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 November 29, 1999.
    
    ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
    Room 159, 600 Pennsylvania Ave., NW., Washington, DC 20580.
    
    FOR FURTHER INFORMATION CONTACT: Elaine Kolish or Kent Howerton, FTC/S-
    4302, 600 Pennsylvania Ave., NW., Washington, DC 20580. (202) 326-3042 
    or 326-3013.
    
    SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
    Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 2.34 of the 
    Commission's Rules of Practice (16 CFR 2.34), 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 September 13, 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 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 Ave., 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 
    Sec. 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 an agreement, subject to 
    final approval, to a proposed consent order
    
    [[Page 52791]]
    
    from respondents The Wire Works, Inc., and Electrodes, Inc.
        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 and take other appropriate action or make 
    final the agreement's proposed order.
        This matter concerns advertising, labeling, and promotional 
    practices related to the sale of brass electrical discharge machining 
    (``EDM'') wire electrodes. Wire EDM is a metal removal technique that 
    is used to cut metal parts. The Commission's complaint charges that 
    respondents misrepresented that certain of its EDM wire electrodes were 
    all or virtually all made in the United States when, in truth and in 
    fact, a substantial portion of their content was of foreign origin.
        The proposed consent order contains a provision that is designed to 
    remedy the charges and to prevent the respondents from engaging in 
    similar acts and practices in the future. Part I of the proposed order 
    prohibits the respondents from misrepresenting the extent to which 
    their EDM wire electrodes are made in the United States. The proposed 
    order would allow respondents to represent that such EDM wire 
    electrodes are made in the United States as long as all, or virtually 
    all, of the components of the EDM wire electrodes are of U.S. origin 
    and all, or virtually all, of the labor in manufacturing them is 
    performed in the United States. It also would allow respondents to make 
    a representation regarding the U.S. origin or U.S. content of their EDM 
    wire electrodes product as permitted in future regulations, guides, or 
    enforcement policy statements promulgated by the Commission. The 
    proposed order further would allow respondents to describe the specific 
    processing that is performed on the product in the United States, e.g., 
    that the product is ``Drawn in the U.S.A.,'' ``Annealed in U.S.A.,'' 
    ``Coldworked in U.S.A.,'' or ``Strengthened in U.S.A.,'' so long as the 
    claim is truthful and substantiated. If the product is not last 
    substantially transformed in the United States, the proposed order 
    would require the respondents to comply with regulations and rulings 
    issued by the U.S. Customs Service under section 304 of the Tariff Act, 
    19 U.S.C. 1304.
        Part II of the proposed order requires the respondents to maintain 
    materials relied upon in disseminating any representation covered by 
    the order. Part III of the proposed order requires the respondents to 
    distribute copies of the order to certain company officials and 
    employees. Part IV of the proposed order requires the respondents to 
    notify the Commission of any change in the corporations that may affect 
    compliance obligations under the order. Part V of the proposed order 
    requires the respondents to file one or more compliance reports. Part 
    VI of the proposed order is a provision whereby the order, absent 
    certain circumstances, terminates twenty years from the date of 
    issuance.
        The purpose of this analysis is to facilitate public comment on the 
    proposed consent order. It is not intended to constitute an official 
    interpretation of the agreement and proposed order or to modify in any 
    way their terms.
    
        By direction of the Commission.
    Donald S. Clark,
    Secretary.
    [FR Doc. 99-25419 Filed 9-29-99; 8:45 am]
    BILLING CODE 6750-01-M
    
    
    

Document Information

Published:
09/30/1999
Department:
Federal Trade Commission
Entry Type:
Notice
Action:
Proposed consent agreement.
Document Number:
99-25419
Dates:
Comments must be received on or before November 29, 1999.
Pages:
52790-52791 (2 pages)
Docket Numbers:
File No. 982-3588
PDF File:
99-25419.pdf