[Federal Register Volume 65, Number 12 (Wednesday, January 19, 2000)]
[Notices]
[Pages 2966-2967]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-1191]


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FEDERAL TRADE COMMISSION

[File No. 992-3242]


UMAX Technologies, Inc.; 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 February 9, 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:  Michael Dershowitz or Joel Winston, 
FTC/S-4002, 600 Pennsylvania Ave., NW, Washington, DC 20580. (202) 326-
3158 or 326-3153.

SUPPLEMENTARY INFORMATION:  Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 7231, 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 thirty (30) 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 containing a consent order from respondent UMAX 
Technologies, Inc. (``UMAX'').
    The proposed consent order has been placed on the public record for 
thirty (30) days for reception of comments by interested persons. 
Comments received during this period will become part of the public 
record. After thirty (30) days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement or make final the agreement's proposed 
order.
    UMAX advertises, labels and sells various types of computer 
scanners. This matter concerns allegedly deceptive rebate advertising 
claims made in conjunction with the sale of computer scanners. The 
Commission's proposed complaint alleges that UMAX falsely represented 
that purchasers of its Astra 1220P scanner, for example, would receive 
a $30.00 cash rebate, and that purchasers of its Astra 1220S scanner, 
for example, would receive a $50.00 cash rebate, within 12 weeks of 
UMAX's receipt of purchaser's rebate requests. The complaint alleges 
that in many instances purchasers received their rebates one to five 
months late.
    The proposed consent order contains provisions designed to prevent 
respondent from engaging in similar acts and practices in the future.
    Part I of the proposed order prohibits respondent from 
misrepresenting the time in which any cash rebate, or rebate in the 
form of credit towards future purchases, will be mailed to consumers. 
It also prohibits respondent from failing to provide such rebates 
within the time specified, or if no time is specified, within thirty 
days.
    Part I of the proposed order also prohibits respondent from 
violating any provision of the FTC's Mail Order Rule in connection with 
rebates in the form of merchandise. Among other things, the Mail Order 
Rule prohibits marketers from failing to provide rebates in the form of 
merchandise within the time they specify for delivery, or if no time is 
specified, within thirty days, unless they offer consumers the option 
of consenting to a delay or canceling the rebate request and promptly 
receiving reasonable cash compensation instead of the merchandise 
originally offered. Finally, Part I of the proposed order similarly 
prohibits respondent from failing to provide rebates in the form of 
services or any other consideration (other than cash, credit towards 
future purchases, or merchandise) within the time it specifies for 
delivery, or if no time is specified, within thirty days, unless it 
offers consumers the option of consenting to a delay or canceling the 
rebate request and promptly receiving reasonable cash compensation 
instead of the rebate originally offered.
    Part II of the proposed order requires respondent to maintain 
copies of all

[[Page 2967]]

materials relied upon in making any representation covered by this 
order.
    Part III of the proposed order requires respondent to distribute 
copies of the order to various officers, agents and employees of 
respondent.
    Part IV of the proposed order requires respondent to notify the 
Commission of any changes in corporate structure that might affect 
compliance with the order.
    Part V of the proposed order requires respondent to file with the 
Commission one or more reports detailing compliance with the order.
    Part VI of the proposed order is a ``sunset'' provision, dictating 
that the order will terminate twenty years from the date it is issued 
or twenty years after a complaint is filed in federal court, by either 
the United States or the FTC, alleging any violation of the order.
    The purpose of this analysis is to facilitate public comment on the 
proposed 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. 00-1191 Filed 1-18-00; 8:45 am]
BILLING CODE 6750-01-M