[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should be repealed.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