[Federal Register Volume 59, Number 150 (Friday, August 5, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19136]


[[Page Unknown]]

[Federal Register: August 5, 1994]


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FEDERAL TRADE COMMISSION
[Docket No. C-2858]

 

California and Hawaiian Sugar Company

AGENCY: Federal Trade Commission.

ACTION: Notice of period for public comment on petition to modify or 
vacate consent order.

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SUMMARY: California and Hawaiian Sugar Company (``C&H''), a respondent 
in Docket No. C-2858, is subject to an order prohibiting it from 
representing that its granulated sugar is different or superior unless: 
(a) Such difference or superiority relates to a consumer use of such 
sugar which is specified in the advertisement; (b) such difference or 
superiority is substantiated; and (c) such substantiation includes 
competent and reliable evidence that the difference or superiority is 
discernible to or of benefit to the class of consumers to whom the 
representation is directed. C&H filed a petition on July 20, 1994, 
requesting that the Commission reopen and modify the order to allow C&H 
to advertise any truthful, nondeceptive difference between its sugar 
and competing sugar (other than a difference relating to health, 
safety, nutritional quality, or purity) without relating it to a 
specific consumer use and proving its discernibility or benefit. In the 
alternative, C&H requests that the Commission either modify the order 
to allow C&H to advertise any truthful, nondeceptive difference between 
its sugar and competing sugar that is substantiated by competent and 
reliable evidence or that it vacate the order. This document announces 
the public comment period on this petition.\1\

    \1\C&H filed an earlier petition to modify or vacate this 
consent order on December 16, 1993, and withdrew it on May 26, 1994.
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DATES: The deadline for filing comments in this matter is August 26, 
1994.

ADDRESSES: Comments should be sent to the Office of the Secretary, 
Federal Trade Commission, 6th Street and Pennsylvania Avenue, N.W., 
Washington, D.C. 20580. Requests for copies of the petition should be 
sent to the Public Reference Branch, Room 130.

FOR FURTHER INFORMATION CONTACT:
Robert M. Frisby, Enforcement Division, Bureau of Consumer Protection, 
Federal Trade Commission, Washington, D.C. 20580, (202) 326-2098.

SUPPLEMENTARY INFORMATION: The order in Docket No. C-2858 was published 
at 42 FR 6800 on February 4, 1977, reported at 89 F.T.C. 15. C&H argues 
that significant changes in constitutional law and Commission policy 
since 1976 justify reopening the docket and modifying the order. C&H 
maintains that the U.S. Supreme Court has extended First Amendment 
protection to purely commercial speech and views as particularly 
suspect prohibitions on expression such as those in the order. C&H also 
contends that the burden of proof in restricting commercial speech lies 
with the party seeking to restrict it and that the Commission has 
provided no evidence that the order directly advances its interests in 
a reasonable manner. In addition, C&H argues that since 1976 the 
Commission altered its position concerning truthful comparative 
advertising and now actively encourages such advertising. C&H notes 
that since 1976 the Commission has adopted a ``reasonable consumer'' 
standard. C&H also contends that the public interest justifies 
reopening and setting aside the order because consumers have a 
constitutional right to receive uncensored distribution of truthful 
information. Furthermore, C&H maintains that market efficiency requires 
that consumers be given access to truthful information and that the 
order improperly discriminates among competitors. The petition was 
placed on the public record on July 27, 1994.

Donald S. Clark,
Secretary.
[FR Doc. 94-19136 Filed 8-4-94; 8:45 am]
BILLING CODE 6750-01-M