[Federal Register Volume 63, Number 244 (Monday, December 21, 1998)]
[Rules and Regulations]
[Pages 70333-70334]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33705]
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FEDERAL TRADE COMMISSION
16 CFR PART 243
Guides for the Decorative Wall Paneling Industry
AGENCY: Federal Trade Commission.
ACTION: Rescission of the Guides for the Decorative Wall Paneling
Industry.
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SUMMARY: On March 27, 1998, the Commission published a Federal Register
notice initiating a regulatory review of the Federal Trade Commission's
(``Commission'') Guides for the Decorative Wall Paneling Industry
(``Decorative Wall Paneling Guides'' or ``the Guides''), 16 CFR Part
243, under the Commission's program to review all rules and guides. The
Commission has now completed its review and determined to rescind the
Guides.
EFFECTIVE DATE: December 21, 1998.
ADDRESS: Requests for copies of the Federal Register notice should be
sent to the Consumer Response Center, Room 130, Federal Trade
Commission, 600 Pennsylvania Ave., N.W., Washington, DC 20580. The
notice and news release announcing the rescission of the Guides are
available on the Internet at the Commission's website, ``http://
www.ftc.gov''.
FOR FURTHER INFORMATION CONTACT: Eric Nickerson, Investigator, Federal
Trade Commission, Denver Regional Office, 1961 Stout Street, Suite
1523, Denver, CO 80294, telephone number (303) 844-3584, E-mail
``[email protected]''.
SUPPLEMENTARY INFORMATION: The Decorative Wall Paneling Guides,
promulgated by the Commission on December 15, 1971, provide guidance to
manufacturers, retail distributors, and other suppliers (``sellers'')
of decorative wall panels with regard to labeling, advertising, and
promoting their products in a manner consistent with Section 5 of the
Federal Trade Commission Act, 15 U.S.C. 45. The Guides are designed to
protect purchasers from being misled by the appearance of a product, or
by deceptive descriptions, depictions, designations, or representations
in advertisements, labels, or other promotional materials.
The Guides provide examples of deceptive and non-deceptive
descriptions for wood and wood imitations to ensure that prospective
purchasers are not misled by a product's appearance. For example,
Section 243.2(a)(5) provides that ``[d]escribing a nonlumber product,
such as particleboard, hardboard, fiberboard, flakeboard, and products
of similar composition, as `wood' '' is a false representation. The
Guides also suggest that sellers affirmatively disclose the composition
and other attributes of the products being offered. Additionally, the
Guides provide for disclosure of material facts that would be helpful
to consumers in making purchase decisions. The Guides suggest that
affirmative disclosures be provided in advertising and labeling when:
(1) A wall panel's appearance could mislead purchasers as to its true
composition; or (2) a representation is made that is susceptible of at
least one misleading interpretation.
The Commission has determined, as part of its oversight
responsibilities, to review rules and industry 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. The
Commission solicited comments on the Decorative Wall Paneling Guides in
the Federal Register on March 27, 1998, 63 FR 14865. The Commission's
staff also mailed copies of the notice to approximately 100 industry
representatives to ensure that all interested parties would have an
opportunity to comment. The comment period ended May 26, 1998.
The Commission received one comment, from the Hardwood, Plywood &
Veneer Association (``HPVA''). The comment supported retaining the
Guides because ``[d]ecorative paneling still represents a significant
sector of the interior finish products market.'' 1 The
commenter stated that the Guides benefit sellers by ``establishing a
common basis of understanding and fair competition.'' The commenter
also noted, however, the existence of at least one recognized standard
for decorative wall panels. This voluntary industry standard, the
``American National Standard For Hardwood And Decorative Plywood'' or
``ANSI/HPVA HP-1-1994'' (hereafter referred to as the ``ANSI
standard''), became effective in 1994, superseding earlier versions
published in 1983 and 1993. Both the 1983 and 1994 versions of the
standard were the result of joint efforts of the American National
Standards Institute, Inc., and
[[Page 70334]]
the Hardwood, Plywood & Veneer Association.2 The ``ANSI
Canvass Method,'' in which industry members with an interest in
hardwood and decorative plywood were contacted, was used to achieve
consensus for the standard.3
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\1\ HPVA, #1.
\2\ Prior to January 1, 1993, HPVA was known as the Hardwood &
Plywood Manufacturers Association.
\3\ ANSI/HPVA HP-1-1994, at iv.
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The ANSI standard sets forth detailed product quality, labeling,
and testing requirements for a variety of wood- and veneer-finished
products. Specifically, the ANSI/HPVA publication's abstract states, in
part, that the ANSI Standard for Hardwood and Decorative Plywood:
[E]stablishes nationally recognized classifications, quality
criteria, test methods, definitions, and product marking and
designation practices for plywood produced primarily from hardwoods.
It is intended for voluntary use for reference in trade literature,
catalogs, sales contracts, building codes * * * to describe the
quality aspects of the product and the means to determine
conformance.
While, unlike the Guides, the ANSI standard does not expressly prohibit
sellers from misrepresenting the composition of a particular wood or
simulated wood product, it provides detailed classifications and
criteria for product advertising and labeling. The Commission believes
that the ANSI voluntary industry standard indeed provides an adequate
basis for a common understanding among industry members through its
highly specific descriptions of the qualities and characteristics of
hardwood and decorative plywood products.
Industry compliance with both the Guides and the ANSI standard
appears to be exemplary. In the 27 years since the Guides were issued,
the Commission has not received any complaints or initiated any
enforcement actions relating to these Guides. The existence of a strong
industry standard and the level of compliance it commands, viewed in
conjunction with the Commission's unfettered ability to pursue actions
against members of this industry for engaging in unfair and deceptive
acts and practices under section 5 of the FTC Act, 15 U.S.C. 45,
sufficiently ensures that sellers will not mislead consumers in the
future in the labeling, advertising, or sale of decorative wall
paneling. If, in the future, deceptive practices prove to be a problem
in this industry, however, the Commission may pursue enforcement
actions as needed on a case-by-case basis.
For the reasons explained in this notice, the Commission has
determined to rescind the Guides because they are no longer necessary.
List of Subjects in 16 CFR Part 243
Advertising, Forests and forest products, Labeling, Trade
practices, Wall paneling industry.
PART 243--[REMOVED]
The Commission, under authority of sections 5(a)(1) and 6(g) of the
Federal Trade Commission Act, 15 U.S.C. 45(a)(1) and 46(g), amends
Chapter I of Title 16 of the Code of Federal Regulations by removing
part 243.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-33705 Filed 12-18-98; 8:45 am]
BILLING CODE 6750-01-P