[Federal Register Volume 68, Number 78 (Wednesday, April 23, 2003)]
[Notices]
[Pages 20000-20001]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-10033]


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FEDERAL TRADE COMMISSION

[File No. 021 0144]


Institute of Store Planners; 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 May 15, 2003.

ADDRESSES: Comments filed in paper form should be directed to: FTC/
Office of the Secretary, Room 159-H, 600 Pennsylvania Avenue, N.W., 
Washington, D.C. 20580. Comments filed in electronic form should be 
directed to: [email protected], as prescribed below.

FOR FURTHER INFORMATION CONTACT: L. Barry Costilo, FTC, Bureau of 
Competition, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580, 
(202) 326-2024.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), 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 April 17, 2003), on the World Wide Web, at ``http://www.ftc.gov/
os/2003/04/index.htm.'' A paper copy can be obtained from the FTC 
Public Reference Room, Room 130-H, 600 Pennsylvania Avenue, N.W., 
Washington, D.C. 20580, either in person or by calling (202) 326-2222.
    Public comments are invited, and may be filed with the Commission 
in either paper or electronic form. Comments filed in paper form should 
be directed to: FTC/Office of the Secretary, Room 159-H, 600 
Pennsylvania Avenue, N.W., Washington, D.C. 20580. If a comment 
contains nonpublic information, it must be filed in paper form, and the 
first page of the document must be clearly labeled ``confidential.'' 
Comments that do not contain any nonpublic information may instead be 
filed in electronic form (in ASCII format, WordPerfect, or Microsoft 
Word) as part of or as an attachment to email messages directed to the 
following email box: [email protected]. Such comments 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 to a 
proposed consent order from the Institute of Store Planners (``ISP''). 
ISP has its principal place of business in Tarrytown, New York.
    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 decide whether it should 
withdraw from the agreement or make final the agreement's proposed 
order.
    ISP's membership is composed of professional design practitioners 
who provide architectural, store design, store planning, merchandise 
planning, traffic flow planning fixture and lighting design, in-store 
graphics and visual presentation services to retail stores. Its

[[Page 20001]]

membership is also comprised of trade members such as suppliers and 
fabricators of products and materials used in store design, as well as 
general contractors who provide labor and project management services 
and build the projects.
    The complaint alleges that ISP engages in substantial activities 
for the economic benefit of its members. The complaint alleges that ISP 
has approximately 800 members, many of whom provide store planning 
services for a fee or who are employed by store planning or design 
firms that provide store planning services for a fee. It alleges that 
ISP is and has been organized in substantial part for the profit of its 
members.
    The complaint charges that ISP has violated Section 5 of the 
Federal Trade Commission Act by acting as a combination of its members 
and in agreement with some of its members to restrain price and non-
price competition among its members and others. The complaint alleges 
that in furtherance of the combination and agreement, ISP has adopted 
and maintained provisions in its Code of Ethics that state, among other 
things, ``a member shall not render professional services without 
compensation'' (ISP Code of Ethics, Section 2) and ``a member shall not 
knowingly compete with another member on the basis of professional 
charges, or use donations as a device for obtaining professional 
advantage'' (ISP Code of Ethics, Section 3). The Code also provides 
that ``a member shall not offer his services in competition except as 
provided by such competition codes as the Institute may establish'' 
(ISP Code of Ethics, Section 4). Applicants for membership in ISP must 
agree in writing to follow ISP's By-laws, which contain its Code of 
Ethics.
    The complaint alleges that the above acts and practices constitute 
unfair methods of competition which have restrained competition 
unreasonably and injured consumers by discouraging price competition 
among store planners and depriving consumers and users of store 
planners' services of the benefit of free and open competition among 
store planners.
    ISP has signed a consent agreement containing the proposed consent 
order. The proposed consent order would prohibit ISP from restricting, 
impeding, declaring unethical or unprofessional or advising against 
price competition among its members. That is, ISP would no longer be 
able to restrict members from providing free or discounted services.
    To ensure and monitor compliance, the consent order provides, among 
other things, that within 90 days after the order becomes final ISP 
shall remove from ISP's Code of Ethics, its constitution and bylaws and 
any existing ISP policy statement, commentary or guideline -- including 
those appearing on ISP's website -- any provision, policy statement, 
commentary or guideline which is inconsistent with the order. The order 
also requires that ISP publish in ISP International News and on its 
website, the revised versions of such documents. In addition, the order 
requires ISP to publish a copy of the order and complaint in the ISP 
International News. It further provides that the order and complaint 
shall be published on the ISP website for at least one year, with a 
link placed in a prominent position on the website's home page. The 
proposed consent order also contains other provisions to monitor 
compliance.
    The purpose of this 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 its terms.

    By direction of the Commission.
C. Landis Plummer
Acting Secretary
[FR Doc. 03-10033 Filed 4-22-03; 8:45 am]
BILLING CODE 6750-01-S