[Federal Register Volume 64, Number 52 (Thursday, March 18, 1999)]
[Proposed Rules]
[Pages 13369-13370]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6596]
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FEDERAL TRADE COMMISSION
16 CFR Part 256
Request for Comment Concerning the Guides for the Law Book
Industry
AGENCY: Federal Trade Commission.
ACTION: Request for public comment.
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SUMMARY: The Federal Trade Commission (``Commission'') requests pubic
comment on the overall costs and benefits and the continuing need for
its Guides for the Law Book Industry (``Law Book Guides'' or
``Guides''), as part of the Commission's systematic review of all
current Commission regulations and guides.
DATES: Written comments will be accepted until May 17, 1999.
ADDRESSES: Mailed comments should be directed to: Secretary, Federal
Trade Commission, Room H-159, 600 Pennsylvania Ave., NW, Washington, DC
20580. Mailed comments should be identified as ``Law Book Guides, 16
CFR Part 256--Comment.'' E-mail comments will be accepted at
[[email protected]]. Those who comment by e-mail should give a mailing
address to which an acknowledgment can be sent.
FOR FURTHER INFORMATION CONTACT: Edwin Rodriquez, Attorney, Federal
Trade Commission, Washington, DC 20580, telephone number (202) 326-
3147.
SUPPLEMENTARY INFORMATION:
I. Background
The Commission promulgated the Law Book Guides under section 5 of
the Federal Trade Commission Act (``FTC Act''), 15 U.S.C. 45, on August
8, 1975, 40 FR 33436, and they became effective eight months
thereafter.\1\ The Guides contain seventeen sections, or guides, that
provide guidance regarding the sale of legal reference materials to the
law profession and law schools. The seventeen cover practices ranging
from the marketing of legal reference materials to consumers, to the
supplementation of these materials and billing practices employed by
sellers.
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\1\ Section 5 of the FTC Act declares methods of competition and
unfair or deceptive acts or practices to be unlawful. Corrections of
the Guides were published on August 19, 1975, 40 FR 36116.
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Guides 1 through 9 pertain to solicitations for the sale of legal
reference materials, particularly direct-mail promotional materials or
oral representations. Guides 1 advises that sellers should make
disclosures property identifying the product being sole (e.g., title,
publisher, editor, copyright, price, type of binding, whether product
is part of set or series). Guide 2 recommends disclosures regarding the
supplementation of products offered for sale, including the kind of
supplementation currently being supplied, its frequency, cost, credits
or discounts for supplements in connection with the original purchase,
and information pertaining to the continuation or abandonment of
supplementation. Guide 3 advises sellers to disclose the general scope
of a work. For publications that are not supplemented, Guide 4 advises
that sellers should inform prospective purchasers if a work offered for
sale will be replaced or substantially revised within a year of the
sale (and the approximate date of replacement or revision), and that
sellers should offer refunds or credits to buyers who have been so
informed. Guide 5 advises sellers against misrepresenting that the
product is new, current, or up-to-date. Guide 6 advises that direct-
mail promotional materials or oral representations soliciting the sale
of specific texts or treaties should clearly and conspicuously disclose
the names of authors or editors who contributed substantial parts to a
work when a title contains the name of a person who did not author or
edit, or who only partially authored or edited, the work. It also
advises sellers to disclose the sources of the work's contents, whether
a work is a compilation, other titles under which the work has been
published, and information identifying the previous
[[Page 13370]]
version of a revision or new edition of a work. Guide 7 advises that
solicitation for the sale of works not yet published should not
represent that the publication has been published and should disclose
that the publication is planned or contemplated and that inquiries or
orders are being solicited to determine demand for the publication.
Guide 8 advises against misrepresenting the jurisdictional scope of
works offered for sale. Guide 9 pertains to disclosures in catalog
listings describing law publications.
Guides 10-13 address practice that take place after the purchase of
legal reference materials. Guide 10 pertains to subscription renewals.
It advises that subscription renewal notices should not be sent to
anyone who is not a current subscriber of the work, and that notices
should indicate renewal numbers (i.e., first or second renewal). Guides
11 through 13 related to disclosures that should be made on
publications themselves. Guide 11 advises sellers to disclose specific
information identifying the publication (e.g., titles and subtitles of
books and series, the edition number, original title of revised
publication, authors, editors, publisher). Guide 12 warns against the
use of misleading jurisdictional designations on publications. Guide 13
specifies certain disclosures that should be made on supplements (e.g.,
title of publication or set to which the supplement belongs, the names
or authors, editors, or compilers of the publication and the
supplements, and the date covered by the supplement, or the month and
year of issuance of each replacement sheet).
Guide 14 pertains to upkeep services and is designed to furnish the
seller and buyer with a clear understanding of what upkeep services are
being ordered. Many upkeep services provides for automatic shipment of
supplementation materials. The Guide advises that sellers should
clearly and conspicuously disclose the provisions of such automatic
upkeep services before any agreement for the purchase of legal
materials is entered, that they should provide upkeep services that
include only materials that are absolutely essential to make a set or
series functional, and that they should not require the purchase of
other, non-basic upkeep services.
Guide 15 concerns the billing process and includes recommendations
regarding account management and information that should appear on
invoices and billing statements. Guide 16 states that sellers should
not add to a publication materials that are not substantially germane
to its subject matter. Finally, Guide 17 advises generally against
misleading or deceptive representations regarding a publication or
supplementation or any service offered in connection therewith.
II. Regulatory Review Program
The Commission has determined to review all current Commission
rules and guides periodically. These reviews seek information about the
cost 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. Therefore, the Commission solicits comments on, among other
things, the economic impact of and the continuing need for the Law Book
Guides; possible conflict between the Guides and state, local, or other
federal laws; and the effect on the Guides of any technological,
economic, or other industry changes.
III. Request for Comment
The Commission solicits written public comment on the following
questions:
(1) Is there a continuing need for the Law Book Guides?
(a) What benefits have the Guides provided to purchasers of the
legal reference materials affected by the Guides?
(b) Have the Guides imposed costs on purchasers?
(2) What changes, if any, should be made to the Guides to increase
the benefits of the Guides to purchasers? How would these changes
affect the costs the Guides impose on firms who conform to the Guides?
How would these changes affect the benefits to purchasers?
(3) What significant burdens or costs, including costs of
compliance, have the Guides imposed on firms who conform to the Guides?
Have the Guides provided benefits to such firms? If so, what benefits?
(4) What changes, if any, should be made to the Guides to reduce
the burdens or costs imposed on firms who conform to the Guides? How
would these changes affect the benefits provided by the Guides?
(5) Do the Guides overlap or conflict with other federal, state, or
local laws or regulations?
(6) Since the Guides were issued, what effects, if any, have
changes in relevant technology or economic conditions had on the
Guides? For example, do sellers use E-mail or the Internet to promote
or sell legal reference materials covered by the Guide? If so, in what
manner? Does use of this new technology affect consumers' rights or
sellers' responsibilities under the Guides?
(7) Are there private industry standards addressing the practices
covered by the Guides?
(8) Are there any abuses occurring in the promotion, sale, or
distribution of legal reference materials covered by the Guides that
are not dealt with in the Guides? If so, what mechanisms should be
explored to address such abuses (e.g., consumer education, industry
self-regulation, revisions to the Guides)?
List of Subjects in 16 CFR Part 256
Advertising, Law, Trade practices.
Authority: 15 U.S.C. 41-58.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-6596 Filed 3-17-99; 8:45 am]
BILLING CODE 6750-01-M