[Federal Register Volume 63, Number 123 (Friday, June 26, 1998)]
[Rules and Regulations]
[Pages 34807-34808]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-16953]


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FEDERAL TRADE COMMISSION

16 CFR Part 14


Amended Enforcement Policy Statement Concerning Clear and 
Conspicuous Disclosure in Foreign Language Advertising and Sales 
Materials

AGENCY: Federal Trade Commission.

ACTION: Final rule; Statement of policy.

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SUMMARY: The Commission has determined that it would be appropriate to 
amend its Enforcement Policy Statement regarding clear and conspicuous 
disclosures in foreign language advertising and sales materials. The 
amended policy statement is intended to clarify the 1973 Enforcement 
Policy Statement.

EFFECTIVE DATE: June 26, 1998.

FOR FURTHER INFORMATION CONTACT:
Linda K. Badger or Matthew D. Gold, San Francisco Regional Office, 
Federal Trade Commission, 901 Market Street, Suite 570, San Francisco, 
CA 94103, (415) 356-5270.

SUPPLEMENTARY INFORMATION: The Federal Trade Commission 
(``Commission'') has noted that some advertisements appearing in 
foreign language publications feature advertising copy in both English 
and a foreign language, but include the required disclosure only in 
English. Because the target audience for these ads is non-English 
speaking, the Commission believes that the required disclosure should 
be provided in the language of the target audience, rather than 
English. This policy statement clarifies the Commission's policy under 
these circumstances.
    The Commission, on two occasions, has addressed the issue of 
disclosures in foreign language advertising. On August 9, 1973, the 
Commission issued an Enforcement Policy Statement dealing with 
disclosures in foreign language advertising. That policy statement, 
which is codified at 16 CFR 14.9, reads in pertinent part: ``(a) Where 
cease-and-desist orders as well as rules, guides and other statements 
require `clear and conspicuous' disclosure of certain information, that 
disclosure must be in the same language as that principally used in the 
advertisements and sales materials involved.\1\ Staff has been informed 
that some companies have interpreted the 1973 Enforcement Policy 
Statement to mean that a disclosure must be in English, regardless of 
the target audience of the advertisement, if the number of English 
words in an advertisement exceeds the number of foreign language words.
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    \1\ 38 FR 21494 (Aug. 9, 1973).
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    On November 4, 1986, the Commission issued its Regulations Under 
the Comprehensive Smokeless Tobacco Health Education Act of 1986.\2\ 
Those regulations address, inter alia, the language in which the 
Surgeon General's health warning must appear in advertisements for 
smokeless tobacco products. The smokless tobacco regulations require 
that:
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    \2\ 16 CFR 307 (1997).
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    In the case of an advertisement for a smokeless tobacco product in 
a newspaper, magazine, periodical, or other publication that is not in 
English, the warning statement shall appear in the predominant language 
of the publication in which the advertisement appears. In the case of 
any other advertisement, the warning statement shall appear in the same 
language as that principally used in the advertisement.\3\
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    \3\ 16 CFR 307.5

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[[Page 34808]]

    While the policy statement focuses on the principal language of the 
advertisement, the smokeless tobacco regulation looks to the 
predominant language of the publication in determining the language in 
which the Surgeon General's health warning must appear.
    The Commission believes that, for advertisements in publications, 
the smokeless tobacco language is better calculated to ensure 
compliance with the original intent of the 1973 Enforcement Policy 
Statement--that disclosures be communicated effectively to the 
advertisement's target audience.
    By amending the policy statement as proposed, the Commission would 
not be creating a new regulation. The policy statement amendment merely 
would clarify the original intent of the 1973 Enforcement Policy 
Statement--that all American consumers, regardless of the language they 
speak, have access to important information regarding the products they 
purchase.

List of Subjects in 16 CFR Part 14

    Trade practices.

    Accordingly, for the reasons set forth in the preamble, the 
Commission hereby amends Title 16, Part 14 of the Code of Federal 
Regulations as follows:

PART 14--ADMINISTRATIVE INTERPRETATIONS, GENERAL POLICY STATEMENTS, 
AND ENFORCEMENT POLICY STATEMENTS

    1. The authority citation for part 14 continues to read as follows:

    Authority: 15 U.S.C. 41-58

    2. Section 14.9 is amended by revising paragraphs (a) and (b) to 
read as follows:


Sec. 14.9  Requirements concerning clear and conspicuous disclosures in 
foreign language advertising and sales materials.

* * * * *
    (a) Where cease-and-desist orders as well as rules, guides and 
other statements require ``clear and conspicuous'' disclosure of 
certain information in an advertisement or sales material in a 
newspaper, magazine, periodical, or other publication that is not in 
English, the disclosure shall appear in the predominant language of the 
publication in which the advertisement or sales material appears. In 
the case of any other advertisement or sales material, the disclosure 
shall appear in the language of the target audience (ordinarily the 
language principally used in the advertisement or sales material).
    (b) Any respondent who fails to comply with this requirement may be 
the subject of a civil penalty or other law enforcement proceeding for 
violating the terms of a Commission cease-and-desist order or rule.

    By direction of the Commission
Donald S. Clark,
Secretary.
[FR Doc. 98-16953 Filed 6-25-98; 8:45 am]
BILLING CODE 6750-01-M