[Federal Register Volume 64, Number 16 (Tuesday, January 26, 1999)]
[Notices]
[Pages 3947-3948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1658]


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FEDERAL TRADE COMMISSION

[File No. 9823591]


Kubota Tractor Corporation, Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint that accompanies the consent agreement and the terms of the 
consent order--embodied in the consent agreement--that would settle 
these allegations.

DATES: Comments must be received on or before March 29, 1999.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159,600 Pa. Ave., N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT: Elaine Kolish or Laura Koss, FTC/S-
4302,601 Pa. Ave., N.W., Washington, D.C. 20580, (202) 326-3042 or 326-
2890.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 2.34 of 
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby 
given that the above-captioned consent agreement containing a consent 
order to cease and desist, having been filed with and accepted, subject 
to final approval, by the Commission, has been placed on the public 
record for a period of sixty (60) days. The following Analysis to Aid 
Public Comment describes the terms of thee consent agreement, and the 
allegations in the complaint. An electronic copy of the full text of 
the consent agreement package can be obtained from the FTC Home Page 
(for January 19, 1999), on the World Wide Web, at ``http://www.ftc.gov/
os/actions97.htm.'' A paper copy can be obtained from the FTC Public 
Reference Room, Room H-130, 600 Pennsylvania Avenue, N.W., Washington, 
D.C. 20580, either in person or by calling (202) 326-3627. Public 
comment is invited. Such comments or views will be considered by the 
Commission and will be available for inspection and copying at its 
principal office in accordance with Section 4.9(b)(6)(ii) of the 
Commission's Rules of Practice (16 CFR 4.9(b)(6)(ii).

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted an agreement, subject to 
final approval, to a proposed consent order from respondent Kubota 
Tractor Corporation.
    The proposed consent order has been placed on the public record for 
sixty (60) days for reception of comments by interested persons. 
Comments received during this period will become part of the public 
record. After sixty (60) days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement and take other appropriate action or make 
final the agreement's proposed order.
    This matter concerns advertising, labeling and promotional 
practices related to the sale of lawn tractors and lawn and garden 
tractors. The Commission's complaint charges that respondent 
misrepresented that certain of its lawn tractors or lawn and garden 
tractors were all or virtually all made in the United States when, in 
truth and in fact, these products had significant foreign parts. In 
addition, the complaint charges that respondent misrepresented that 
entire product lines of lawn tractors and lawn and garden tractors were 
all or virtually all made in the United States. In truth and in fact, 
in one product line, one of the three lawn tractor models in the 
product line contained significant foreign part; in a second product 
line, both of the lawn and garden tractor models in that line contained 
significant foreign parts.
    The proposed consent order contains a provision that is designed to 
remedy the charges and to prevent the respondent from engaging in 
similar acts and practices in the future. Part I of the proposed order 
prohibits the respondent from misrepresenting the extent to which a 
lawn tractor or lawn and garden tractor, or entire product line of lawn 
tractors or lawn and garden

[[Page 3948]]

tractors, is made in the United States. The proposed consent order 
defines the terms ``lawn tractor'' and ``lawn and garden tractor'' as 
products manufactured, labeled, advertised, promoted, offered for sale, 
sold, or distributed primarily for consumers to mow grass, including 
but not limited to respondent's T-Series lawn tractors and TG-Series 
lawn and garden tractors. It states that such products may be sold with 
or without attachments such as grass catchers, front blades, or 
snowblades. The proposed order would allow respondent to represent that 
any lawn tractor or lawn and garden tractor, or lawn tractor or lawn 
and garden tractor product line, is made in the United States so long 
as all, or virtually all, of the component parts of such product, or of 
all products in such product line, are made in the United States and 
all, or virtually all, of the labor in manufacturing such product, or 
of all products in such product line, is performed in the United 
States.
    Part II of the proposed order requires the respondent to maintain 
materials relied upon in disseminating any representation covered by 
the order. Part III of the proposed order requires the respondent to 
distribute copies of the order to certain company officials and 
employees. Part IV of the proposed order requires the respondent to 
notify the Commission of any change in the corporation that may affect 
compliance obligations under the order. Part V of the proposed order 
requires the respondent to file one or more compliance reports. Part VI 
of the proposed order is a provision whereby the order, absent certain 
circumstances, terminates twenty years from the date of issuance.
    The purpose of this analysis is to facilitate public comment on the 
proposed consent order. It is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way their terms.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-1658 Filed 1-25-99; 8:45 am]
BILLING CODE 6750-01-M