# Macy's Northeast, Inc., et al.; Proposed Consent Agreement With Analysis to Aid Public Comment

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URL: https://www.frixlaw.com/law-library/documents/fr%3A94-16277

## Record

- **Collection:** Federal Register
- **Document type:** Uncategorized Document
- **Published:** July 6, 1994

## Text

FEDERAL TRADE COMMISSION
[File No. 932 3115]

Macy's Northeast, Inc., et al.; Proposed Consent Agreement With
Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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SUMMARY: In settlement of alleged violations of federal law prohibiting
unfair acts and practices and unfair methods of competition, this
consent agreement, accepted subject to final Commission approval, would
require, among other things, the New York-based retail department store
subsidiaries to comply with the Pre-Sale Availability Rule under the
Magnuson-Moss Warranty Act, to inform their retail store managers of
their compliance responsibilities, and to develop and implement a
program for instructing their sales personnel about the availability
and location of manufacturers' warranty information.

DATES: Comments must be received on or before September 6, 1994.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pa. Ave., N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT: Jeffrey Klurfeld or Gerald Wright,
FTC/San Francisco Regional Office, 901 Market St., Suite 570, San
Francisco, CA. 94103. (415) 744-7920.

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 following 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. Public comment is invited. 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)).
The Federal Trade Commission having initiated an investigation of
Macy's Northeast, Inc., Macy's South, Inc., Macy's California, Inc.,
and Bullock's, Inc. (``proposed respondents'' or ``respondents'',
corporations, and wholly-owned subsidiaries of R.H. Macy & Co., Inc., a
Delaware corporation, and it is now appearing that proposed respondents
are will to enter into an agreement containing an order to cease and
desist from the acts and practices being investigated,
It is hereby agreed by and between Macy's Northeast, Inc., Macy's
South, Inc., Macy's California, Inc., and Bullock's, Inc., by their
duly authorized officers, and counsel for the Federal Trade Commission
that:
1. Proposed respondent Macy's Northeast, Inc. is a corporation
organized, existing, and doing business under and by virtue of the laws
of the State of Delaware, with its principal office and place of
business located at 151 W 34th Street, New York, New York 10001.
Proposed respondent Macy's South, Inc. is a corporation organized,
existing, and doing business under and by virtue of the laws of the
State of Delaware, with its principal office and place of business
located at 151 W. 34th Street, New York, New York 10001.
Proposed respondent Macy's California, Inc. is a corporation
organized, existing, and doing business under and by virtue of the laws
of the State of Delaware, with its principal office and place of
business located at 50 O'Farrell Street, San Francisco, California
94102.
Proposed respondent Bullock's Inc. is a corporation organized,
existing, and doing business under and by virtue of the laws of the
State of Delaware, with its principal office and place of business
located at 50 O'Farrell Street, San Francisco, California 94102.
2. This agreement is for settlement purposes only and does not
constitute an admission by proposed respondents that the law has been
violated as alleged in the draft of complaint here attached.
3. Proposed respondents admit all the jurisdictional facts set
forth in the draft complaint here attached.
4. Proposed respondents waive:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law;
c. All rights to seek judicial review or otherwise to challenge or
contest the validity of the order entered pursuant to this agreement;
and
d. All claims under the Equal Access to Justice Act.
5. This agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission, it, together with the draft of
complaint contemplated thereby, will be placed on the public record for
a period of sixty (60) days and information in respect thereto publicly
released. The Commission thereafter may either withdraw its acceptance
of this agreement and so notify the proposed respondents, in which
event it will take such action as it may consider appropriate, or issue
and serve its complaint (in such form as the circumstances may require)
and decision, in disposition of this proceeding.
6. This agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Sec. 2.34 of the Commission's
Rules, the Commission may, without further notice to proposed
respondents, (1) issue its complaint corresponding in form and
substance with the draft of complaint here attached and its decision
containing the following order to cease and desist in disposition of
the proceeding, and (2) make information public in respect thereto.
When so entered, the order to cease and desist shall have the same
force and effect and may be altered, modified or set aside in the same
manner and within the same time provided by statute for other orders.
The order shall become final upon service. Delivery by the U.S. Postal
Service of the complaint and decision containing the agreed-to order to
proposed respondents' addresses as stated in this agreement shall
constitute service. Proposed respondents waive any right they may have
to any other manner of service. The complaint may be used in construing
the terms of the order, and no agreement, understanding,
representation, or interpretation not contained in the order or the
agreement may be used to vary or contradict the terms of the order.
7. Proposed respondents have read the proposed complaint and order
contemplated hereby. They understand that once the order has been
issued, they will be required to file one or more compliance reports
showing that they have fully compiled with the order. Proposed
respondents further understand that they may be liable for civil
penalties in the amount provided by law for each violation of the order
after it becomes final.

Order

The definitions of terms contained in Sec. 101 of the Magnuson-Moss
Warranty Act, 15 U.S.C. 2301, and in rule 702, 16 C.F.R. Sec. 702.1,
promulgated thereunder, shall apply to the terms of this Order.
I
It is ordered that respondents Macy's Northeast, Inc., Macy's
South, Inc., Macy's California, Inc., and Bullock's, Inc.,
corporations, their successors and assigns, and their officers,
representatives, agents and employees, directly or through any
corporation, subsidiary, division or other device in connection with
the sale or offering for sale of any consumer product in or affecting
commerce, do forthwith cease and desist from failing to make a text of
any written warranty on a consumer product actually costing more than
$15 readily available for examination by prospective buyers prior to
sale through utilization of one or more means specified in 16 CFR
702.3(a), as amended.
II
It is further ordered that respondents shall, within thirty (30)
days of the date of service of this Order, deliver to each current
retail store manager and assistant or operations manager engaged in the
sale of consumer products on behalf of respondents, a copy of this
Order to cease and desist.
III
It is further ordered that respondents shall, within thirty (30)
days of the date of service of this Order, instruct all current retail
store managers and assistant or operations managers engaged in the sale
of consumer products on behalf of respondents as to their specific
obligations and duties under the Magnuson-Moss Warranty Act (15 U.S.C.
2301) and this Order.
IV
It is further ordered that respondents shall, for a period of not
less than four (4) years from the date of service of this order,
instruct all future retail store managers and assistant or operations
managers who will be engaged in the sale of consumer products on behalf
of respondents, before they assume said responsibilities for
respondents, as to their specific obligations and duties under the
Magnuson-Moss Warranty Act (15 U.S.C. 2301) and this Order.
V
It is further ordered that respondents shall, within thirty (30)
days of the date of service of this Order, develop and implement a
program to instruct their sales personnel about the availability and
location of warranty information.
VI
It is further ordered that respondents shall, for a period of not
less than five (5) years from the date of service of the Order,
maintain and upon request make available to the Federal Trade
Commission for inspection and copying (i) copies of all written
instructions provided by respondents to their retail store managers and
assistant and operations managers and sales personnel regarding their
obligations and duties under the Magnuson-Moss Warranty Act (15 U.S.C.
2301) and this order; (ii) copies of signs posted by respondents in
their retail store outlets designed to elicit prospective buyers'
attention to the availability of the text of written warranties for
review upon request; and (iii) copies of the text of written warranties
made readily available by respondents' retail store outlets for
examination by prospective buyers on request.
VII
It is further ordered that respondents, for a period of six (6)
years from the date of service of this Order, shall notify the
Commission at least thirty (30) days prior to any dissolution,
assignment, or sale resulting in the emergence of a successor
corporation, the creation or dissolution of subsidiaries, or any other
change in the corporation that may affect compliance obligations
arising out of the Order.
VIII
It is further ordered that respondents shall, within ninety (90)
days after service of this Order on them, file with the Commission a
report in writing, setting forth in detail the manner and form in which
they have complied with this order.

Analysis of Proposed Consent Order to Aid Public Comment

The Federal Trade Commission has accepted an agreement to a
proposed consent order from Macy's Northeast, Inc., Macy's South, Inc.,
Macy's California, Inc., and Bullock's, Inc. (``proposed
respondents''), wholly-owned subsidiaries of R.H. Macy & Co., Inc.
Proposed respondents operate department stores in New York, California,
and a number of other states.
The proposed consent order has been placed on the public record for
sixty (60) days for reception 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 the comments received and will decide whether it should
withdraw from the agreement and take other appropriate action, or make
final the proposed order contained in the agreement.
The complaint alleges that the proposed respondents have violated a
Rule promulgated by the Federal Trade Commission (16 CFR 702.3(a))
pursuant to the Magnuson-Moss Consumer Warranty Act (15 U.S.C. 2301).
This Rule requires the proposed respondents to make manufacturers'
warranty information available to consumers. The purposes of this Act,
and the Rule, are to improve the information available to consumers, to
prevent deception, and to promote competition, in the marketing of
consumer product warranties offered by manufacturers.
The Rule, called the ``Pre-Sale Availability Rule,'' gives
retailers the option of either (1) displaying the text of
manufacturers' warranties in close proximity to the product display; or
(2) furnishing the text of manufacturers' warranties to customers upon
request, and prominently displaying signs advising of the availability
of such warranties. The complaint alleges that the proposed respondents
have not complied with either of these options.
The proposed order requires proposed respondents to comply with
this Rule, to inform their retail store executives of their compliance
responsibilities, and to develop a program for instructing their sales
personnel about the availability and location of manufacturers'
warranty information. Proposed respondents will be subject to civil
penalties if they do not comply with 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.
Donald S. Clark,
Secretary.
[FR Doc. 94-16277 Filed 7-5-94; 8:45 am]
BILLING CODE 6750-01-M

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A94-16277. Public record. Not legal advice.