[Federal Register Volume 60, Number 244 (Wednesday, December 20, 1995)]
[Rules and Regulations]
[Pages 65533-65534]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31011]
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FEDERAL TRADE COMMISSION
16 CFR Part 418
Trade Regulation Rule Concerning Deceptive Advertising and
Labeling as to Length of Extension Ladders
AGENCY: Federal Trade Commission.
ACTION: Repeal of rule.
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SUMMARY: The Federal Trade Commission announces the repeal of the Trade
Regulation Rule concerning Deceptive Advertising and Labeling as to
Length of Extension Ladders. The Commission has reviewed the rulemaking
record and determined that due to changes in industry practice, and the
existence of standards mandating the point-of-sale disclosures required
by the Rule, the Rule no longer serves the public interest and should
be repealed. This notice contains a Statement of Basis and Purpose for
repeal of the Rule.
EFFECTIVE DATE: December 20, 1995.
ADDRESSES: Requests for copies of the Statement of Basis and Purpose
should be sent to Public Reference Branch, Room 130, Federal Trade
Commission, 6th Street & Pennsylvania Avenue N.W., Washington, DC
20580.
FOR FURTHER INFORMATION CONTACT: Neil Blickman, Attorney, Federal Trade
Commission, Bureau of Consumer Protection, Division of Enforcement,
Washington, DC 20580, (202) 326-3038.
SUPPLEMENTARY INFORMATION:
Statement of Basis and Purpose
I. Background
The Trade Regulation Rule concerning Deceptive Advertising and
labeling as to Length of Extension Ladders (Extension Ladder Rule), 16
CFR Part 418, was promulgated in 1969 (34 FR 929). The Extension Ladder
Rule declares that it is an unfair or deceptive act or practice and an
unfair method of competition to represent the size or length of an
extension ladder in terms of the total length of the component sections
thereof unless:
(a) Such size or length representation is accompanied by the words
``total length of sections'' or words with similar meaning that clearly
indicate the basis of the representation; and,
(b) Such size or length representation is accompanied by a
statement in close proximity that clearly and conspicuously shows the
maximum length of the product when fully extended for use (i.e.,
excluding the footage lost in overlapping) along with an explanation of
the basis for such representation.\1\
\1\ The Rule then gives an example of proper length
representation when the product consists of two ten foot sections:
``maximum working length 17', total length of sections 20''' or
``17' extension ladder''.
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On May 23, 1995, the Commission published an Advance Notice of
Proposed Rulemaking (ANPR) seeking comment on proposed repeal of the
Extension Ladder Rule (60 FR 27245). In accordance with Section 18 of
the Federal Trade Commission (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 comment period closed on June 22, 1995.
The Commission received no comments.
On September 18, 1995, the Commission published a Notice of
Proposed Rulemaking (NPR) initiating a proceeding to consider whether
the Extension Ladder Rule should be repealed or remain in effect (60 FR
48075).\2\ This rulemaking proceeding was undertaken as part of the
Commission's ongoing program of evaluating trade regulation rules and
industry guides to ascertain their effectiveness, impact, cost and
need. This proceeding also responded to President Clinton's National
Regulatory Reinvention Initiative, which, among other things, urges
agencies to eliminate obsolete or unnecessary regulations. In the NPR,
the Commission announced its determination, pursuant to 16 CFR 1.20,
the use expedited procedures in this proceeding.\3\
\2\ In accordance with Section 18 of the FTC Act, 15 U.S.C. 57a,
the Commission submitted the 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
its publication.
\3\ These procedures included: publishing a Notice of Proposed
Rulemaking, soliciting written comments on the Commission's proposal
to repeal the Rule; holding an informal hearing, if requested by
interested parties; receiving a final recommendation from Commission
staff; and announcing final Commission action in the Federal
Register.
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The comment period closed on October 18, 1995. The Commission
received no comments and no requests to hold an informal hearing.
II. Basis for Repeal of Rule
The Commission periodically reviews its rules and guides, seeking
information about their costs and benefits 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 Extension Ladder Rule (58
FR 21125). The Commission asked commenters to address questions
relating to the costs and benefits of the Rule, the burdens it imposes,
and the basis for assessing whether it should be retained, or amended.
Six specific comments were received. One commenter, a consumer,
opined that the only label that should be on ladders is the ``maximum
working length'' because consumers should not have to do any figuring
to determine the length of the ladder that would meet their needs.
Of the other five commenters, four were manufacturers or suppliers
of ladders and one was a trade association. A number of these comments
referred to the American National Standards Institute (ANSI) standard
A14, which governs the labeling of ladders. ANSI standard A14 details
the requirements for labeling portable wood ladders, portable metals
ladders, fixed ladders, job made ladders, and portable
[[Page 65534]]
reinforced plastic ladders. The ANSI standard requires specification of
the maximum working length of an extension ladder, as well as several
other pieces of information not required by the Extension Ladder Rule,
including the total length of the ladder's sections and the highest
standing level of the ladder. Compliance with the ANSI standard,
therefore, ensures compliance with the labeling requirements of the
Extension Ladder Rule. Several commenters noted this overlap in
coverage of the Extension Ladder Rule and ANSI standard A14, and
recommended that the Rule be retained unchanged.
Another commenter stated that the Rule has imposed minor,
incremental costs, but opined that the benefits have been significant
in that consumers have a better understanding of extension ladder
length. The commenter questioned whether there was a continuing need
for this Rule given the existence of ANSI standard A14 and UL standard
184, which the commenter stated also requires extension ladders to be
marked to indicate both the total length of sections and the maximum
extended length or maximum working length.
In addition to these specific comments, one general comment,
applicable to several Commission Rules being reviewed, was received
from an advertising agency association. This organization recommended
rescission of the Extension Ladder Rule because the general
prohibitions of Section 5 of the Federal Trade Commission Act covering
false and deceptive advertising apply to the ladder industry. Thus, the
commenter concluded that 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 length on extension ladders
available for retail sale at several chain stores. That review
indicated general compliance with the requirements of the Rule.
Additionally, a check of Commission records failed to find any
complaints regarding non-compliance with the Rule, or any initiation of
law enforcement actions alleging violations of the Rule's requirements.
Accordingly, the Commission has reviewed the rulemaking record and
determined to repeal the Extension Ladder Rule due to changes in
industry practice, and the existence of industry standards mandating
the point-of-sale disclosures required by the Rule.
III. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-11, requires an
analysis of the anticipated impact of the repeal of the Rule on small
businesses. The reasons for repeal of the Rule have been explained in
this Notice. Repeal of the Rule would appear to have little or no
effect on small businesses. Moreover, the Commission is not aware of
any existing federal laws or regulations that would conflict with
repeal of the Rule. For these reasons, the Commission certifies,
pursuant to Section 605 of the RFA, 5 U.S.C. 605, that this action will
not have a significant economic impact on a substantial number of small
entities.
IV. Paperwork Reduction Act
The Extension Ladder Rule imposes third-party disclosure
requirements that constitute ``information collection requirements''
under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. Accordingly,
repeal of the Rule would eliminate any burdens on the public imposed by
these disclosure requirements.
List of Subjects in 16 CFR Part 418
Advertisting, Extension ladders, Trade practices.
PART 418--[REMOVED]
The Commission, under authority of Section 18 of the Federal Trade
Commission Act, 15 U.S.C. 57a, amends chapter I of title 16 of the Code
of Federal Regulations by removing Part 418.
By direction of the Commission.
Donald S. Clark,
Secretary.
FR Doc. 95-31011 Filed 12-19-95; 8:45 am]
BILLING CODE 6750-01-M