[Federal Register Volume 65, Number 12 (Wednesday, January 19, 2000)]
[Notices]
[Pages 2962-2963]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1189]


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FEDERAL TRADE COMMISSION

[File No. 982 3560]


Bumble Bee Seafoods, Inc.; Analysis to Aid Public Comment

AGENCY:  Federal Trade Commission.

[[Page 2963]]


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--embodies in the consent agreement--that would settle 
these allegations.

DATES: Comments must be received on or before March 10, 2000.

ADDRESSES:  Comments should be directed to: FTC/Office of the 
Secretary, Room 159, 600 Pennsylvania Ave., NW, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Donald D'Amato, Federal Trade 
Commission, Northeast Regional Office, 1 Bowling Green, Suite 319, New 
York, NY 10004.

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 10, 2000), 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. Comments should be directed to: FTC/
Office of the Secretary, Room 159, 600 Pennsylvania Ave., NW, 
Washington, DC 20580. Two paper copies of each comment should be filed, 
and should be accompanied, if possible, by a 3\1/2\ inch diskette 
containing an electronic copy of the comment. 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, subject to final 
approval, an agreement to a proposed consent order from Bumble Bee 
Seafoods, Inc. (`Bumble Bee'').
    The proposed consent order has been placed on the public record for 
sixty (60) days for the receipt 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 comments received and will decide whether it should 
withdraw from the agreement and take appropriate action or make final 
the agreement's proposed order.
    This matter involves Bumble Bee's making of a representation in the 
marketing and sale of canned tuna. Specifically, the face of the 
product label indicates that the purchaser will save seventy-five cents 
(75 cents) on his next purchase of tuna, however, the reverse side of 
the label, which is affixed to the can and is not accessible until 
after purchase, indicates that the purchaase of five additional cans of 
tuna is required in order to save the seventy-five cents (75 cents). 
The proposed complaint alleges that Bumble Bee has violated Section 5 
of the Federal Trade Commission Act (`FTC Act'') by misrepresenting 
that purchasers of tuna affixed with the subject label can receive 
seventy-five cents (75 cents) off their next purchase of a single can 
of tuna.
    Part I of the proposed order prohibits Bumble Bee from 
misrepresenting the terms or conditions of any rebate offer and 
requires the company to disclose clearly and prominently and in close 
proximity to the offer the number of products that must be purchased in 
order to quality for any rebate offer. The order defines ``rebate'' to 
mean cash, merchandise, credit towards future purchases, or any other 
consideration offered to consumers who purchase products from the 
respondent, which is provided subsequent to purchase.
    Part II A provides that Bumble Bee shall commence within ninety 
(90) days after the service of the order, a consumer tearpad coupon 
program that includes a national distribution of at least seven 
million, five hundred and eighty-six thousand, two hundred and eight 
(7,586,208) tearpad coupons at least five inches (5") by two and one-
half inches (2\1/2\") in size that clearly and prominently offer 
seventy-five cents (75 cents) off the purchase of `any two (2) cans or 
multi-packs'' of Bumble Bee Solid White Albacore Tuna. Part II A 
further provides that these tearpad coupons shall be redeemable at the 
place of purchase, and have an expiration date of at least six (6) 
months after distribution. The proposed order refers to Bumble Bee's 
obligations set forth in Part II A as the ``Program.''
    Part II B provides that Bumble Bee's total costs incurred by 
implementing the Program do not exceed two hundred thousand dollars 
($200,00) (`Minimum Expenditure'') ninety (90) days after the 
expiration date on the tearpad coupon, Bumble Bee shall transfer 
electronically to the United States Treasury within ten (10) business 
days a dollar amount equal to the difference between the actual cost of 
the Program and the Minimum Expenditure.
    Part III provides that Bumble Bee shall provide to the Commission: 
(a) Within ninety (90) days after the date of service of the order, a 
sworn affidavit certifying that it has implemented the Program set 
forth in Part II; and (b) within ninety (90) days of the expiration 
date on the Program's tearpad coupon, a sworn affidavit setting forth 
in detail the manner and form in which it has complied with Part II of 
the order, including but not limited to, a detailed report that 
specifies the costs of the Program.
    Part IV of the proposed order contains record keeping requirements 
for materials related to representations covered by the proposed order. 
Part V of the proposed order requires distribution of a copy of the 
order to current and future officers and agents having responsibilities 
with respect to the subject matter of the proposed order. Part VI 
provides for Commission notification upon a change in the respondent 
and Part VII requires the respondent to keep and maintain all records 
demonstrating compliance with the terms and provisions of the order. 
Part VIII provides for the termination of the order after twenty (20) 
years under certain circumstances.
    The purpose of the analysis is to facilitate public comment on the 
proposed order, and 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. 00-1189 Filed 1-18-00; 8:45 am]
BILLING CODE 6750-01-M