[Federal Register Volume 65, Number 69 (Monday, April 10, 2000)]
[Proposed Rules]
[Pages 18933-18934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-8770]


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FEDERAL TRADE COMMISSION

16 CFR Part 250


Guides for the Household Furniture Industry

AGENCY: Federal Trade Commission.

ACTION: Request for public comments.

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SUMMARY: The Federal Trade Commission (``Commission'') requests public 
comments about the overall costs and benefits and the continuing need 
for its Guides for the Household Furniture Industry (``the Household 
Furniture Guides'' or ``the Guides''), as part of the Commission's 
systematic review of all current Commission regulations and guides.

DATES: Written comments will be accepted until June 9, 2000.

ADDRESSES: Comments should be directed to: Secretary, Federal Trade 
Commission, Room H-159, 600 Pennsylvania Avenue, N.W., Washington, D.C. 
20580. Comments should be identified as ``Household Furniture Industry 
Guides, 16 CFR Part 250--Comment.''

FOR FURTHER INFORMATION CONTACT: Ingrid Whittaker-Ware, Attorney, 
Federal Trade Commission, Southeast Region, 60 Forsyth Street, S.W., 
Atlanta, Georgia 30303, telephone number (404) 656-1364, E-mail 
address: ``[email protected]''.

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission promulgated the Guides for the Household Furniture 
Industry on December 21, 1973, 38 FR 34992 (1973), under the Federal 
Trade Commission Act (``FTC Act''), 15 U.S.C. 41-58. \1\ The Guides 
became effective on March 21, 1974. Prior to promulgating the Guides, 
the Commission released proposed Guides to allow interested or affected 
parties an opportunity to inform the Commission of their views, 
suggestions, objections, or other information regarding the proposed

[[Page 18934]]

Guides. Based on this information, the Commission determined that it 
was in the public interest to offer guidance to the industry thereby 
promoting a higher level of compliance with the laws administered by 
the Commission by adopting the Guides. The Guides are voluntary 
guidelines containing interpretations of acts or practices that the 
Commission has issued to assist members of the industry in complying 
with Section 5 of the FTC Act.
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    \1\ The FTC Act makes it unlawful for one to engage in ``unfair 
methods of competition and unfair or deceptive acts or practices in 
commerce.''
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    The Furniture Guides generally advise members of the industry to 
make affirmative disclosures for the benefit of consumers to ensure 
that the prospective purchaser is not misled into thinking that the 
product is different from that which is actually offered, because of 
the appearance, description, depictions or representations made about 
the product, in advertising, labeling or other promotional materials. 
The Guides also advise that advertisers making representations 
concerning (a) tests made on products, or (b) the performance 
characteristics of upholstery fabrics do in fact have a ``reasonable 
basis'' for such representations. Further, the guides also inform 
advertisers that the Commission may require documentation from them to 
substantiate their representations concerning the product. The Guides 
also provide several definitions for the industry, including 
definitions regarding certain types of wood. In summary, the Guides for 
the Household Furniture Industry, 16 CFR Part 250, advise members of 
the industry to:
    (1) Make affirmative disclosures of material facts concerning 
merchandise, which if known to a purchaser, would influence his or her 
decision to purchase the merchandise:
    (2) Attach an accurate tag or label in a prominent location on each 
product;
    (3) Describe wood, wood imitations and color used in or on 
furniture only with qualified wood names or generally accepted wood 
names. The description shall not be deceptive;
    (4) Identify certain woods as ``walnut'', ``mahogany'' and 
``mapel'' only if such woods are derived from specified species;
    (5) Refrain from making representations or misleading inferences 
about a product being made of leather, when in fact it is not;
    (6) Refrain from making false or misleading representations 
concerning outer coverings of furniture or furniture stuffing;
    (7) Accurately describe the origin of furniture, whether domestic 
or foreign; and whether the furniture is actually new, being made of 
parts and materials that were entirely unused;
    (8) Refrain from describing as ``floor sample'' furniture that has 
been rented, repossessed or ``traded-in'';
    (9) Refrain from using deceptive trademarks or claiming to be a 
manufacturer or wholesaler when in fact they are not; and
    (10) Look to the applicable guides and rules for further guidance 
on guarantees, pricing and advertising.

II. Regulatory Review Program

    The Commission has determined to review all current Commission 
rules and guides periodically. These reviews seek information about the 
costs 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 
Household Furniture Industry 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 Comments

    The Commission solicits written public comments on the following 
questions:
    1. Is there a continuing need for the Household Furniture Guides?
    (a) What benefits have the Guides provided to purchasers of the 
products or services 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?
    (a) How would these changes affect the costs the Guides impose on 
companies subject to their requirements?
    3. What significant burdens or costs, including costs of adherence, 
have the Guides imposed on companies subject to their requiements?
    (a) Have the Guides provided benefits to such companies?
    4. What changes, if any, should be made to the Guides to reduce the 
burdens or costs imposed on companies subject to their requirements?
    (a) 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 the relevant technology or economic conditions had on the Guides?
    7. What effect, if any, has the use of modern technology such as 
the Internet and E-mail had on the Guides?
    (a) How has the use of modern technology such as the Internet and 
E-mail affected the rights of consumers and the responsibilities of 
sellers?
    8. Are there any abuses in the marketing of furniture products that 
are not addressed by the Guides?
    (a) What mechanisms (e.g., consumer education, self-regulation, 
amendment or rescission of the Guides) should be explored to deal with 
any marketing abuses that may exist?
    9. What significant burdens or costs, including costs of adherence, 
have the Guides imposed on small companies subject to their 
requirements?
    (a) How do these burdens or costs differ from those imposed on 
larger companies subject to the requirements of the Guides?
    10. To what extent are the burdens or costs that the Guides impose 
on small companies similar to those that small companies would incur 
under standard and prudent business practices?
    11. What changes, if any, should be made to the Guides to reduce 
the burdens or cost imposed on small companies?
    (a) How would these changes affect the benefits of the Guides?
    (b) Would such changes adversely affect the competitive position of 
larger companies?

List of Subjects in 16 CFR Part 250

    Forest and forest products, Furniture industry, Trade practices.

    Authority: 15 U.S.C. 41-58

    By direction of the Commission.

Donald S. Clark,
Secretary.
[FR Doc. 00-8770 Filed 4-7-00; 8:45 am]
BILLING CODE 6750-01-M