[Federal Register Volume 64, Number 16 (Tuesday, January 26, 1999)]
[Notices]
[Pages 3951-3952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-1660]


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FEDERAL TRADE COMMISSION

[File No. 9823587]


USDrives 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., NW, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:
Elaine Kolish or Laura Koss, FTC/S-4302, 601 Pa. Ave., NW, Washington, 
DC 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 the 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, NW, Washington, DC 
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 USDrives 
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

[[Page 3952]]

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, packaging, labeling and 
promotional practices related to the sale of optical drives that read 
information on compact disc read-only memory discs (``CD-ROM drives''). 
The Commission's complaint charges that respondent misrepresented that 
its CD-ROM drives were all or virtually all made in the United States 
when, in truth and in fact, its CD-ROM drives were assembled in the 
United States of primarily imported parts. In addition, the complaint 
charges that respondent misrepresented that CD-ROM drives that were 
made in China of primarily non-U.S. parts were all or virtually all 
made in the United States.
    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 any 
CD-ROM drive is made in the United States. The proposed order would 
allow respondent to represent that a CD-ROM drive is made in the United 
States so long as all, or virtually all, of the component parts of the 
CD-ROM drive are made in the United States and all, or virtually all, 
of the labor in manufacturing the CD-ROM drive 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. 99-1660 Filed 1-25-99; 8:45 am]
BILLING CODE 6750-01-M