Trade Regulation Rule: Deceptive Advertising and Labeling as to Size of Tablecloths and Related Products

FEDERAL TRADE COMMISSION

16 CFR Part 404

Trade Regulation Rule: Deceptive Advertising and Labeling as to

Size of Tablecloths and Related Products

AGENCY: Federal Trade Commission.

ACTION: Advance notice of proposed rulemaking (ANPR).

-----------------------------------------------------------------------

SUMMARY: The Federal Trade Commission (``Commission'') proposes to

repeal its Trade Regulations Rule entitled ``Deceptive Advertising and

Labeling as to Size of Tablecloths and Related Products (``Tablecloth

Rule''), 16 CFR part 404. The proceeding will address whether the

Tablecloth Rule should be repealed or remain in effect. The Commission

is soliciting written comment, data and arguments concerning this

proposal.

DATES: Written comments must be submitted on or before June 22, 1995.

ADDRESSES: Written comments should be identified as ``16 CFR Part 404''

and sent to Secretary, Federal Trade Commission, 6th Street &

Pennsylvania Avenue NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

John A. Crowley, Esq., (202) 326-3280, Division of Service Industry

Practices, Bureau of Consumer Protection, Federal Trade Commission,

Washington, DC 20580.

SUPPLEMENTARY INFORMATION:

Part A--Background Information

This notice is published pursuant to Section 18 of the Federal

Trade Commission Act, 15 U.S.C. 57a et seq., the provisions of part 1,

subpart B of the Commission's rules of practice, 16 CFR 1.7, and 5

U.S.C. 551 et seq. This authority permits the Commission to promulgate,

modify and repeal trade regulation rules that define with specificity

acts or practices that are unfair or deceptive in or affecting commerce

within the meaning of section 5(a)(1) of the FTC Act, 15 U.S.C.

45(a)(1).

The Tablecloth Rule, promulgated by the Commission on August 5,

1964, declares that in connection with the sale or offering for sale of

tablecloths and related products such as doilies, table mats, dresser

scarves, place mats, table runners, napkins and tea sets, any

representation of the cut size (that is, the dimensions of materials

used in the construction of such products) constitutes an unfair method

of competition and an unfair and deceptive act or practice unless:

(a) ``Such `cut size' dimensions are accompanied by the words `cut

size' ''; and

(b) ``The `cut size' is accompanied by a clear and conspicuous

disclosure of the dimensions of the finished products and by an

explanation that such dimensions constitute the finished size.''.

The Commission periodically reviews the rules and guides it has

promulgated, seeking information about the costs and benefits of such

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. Pursuant to its review

schedule, on April 19, 1993, the Commission published in the Federal

Register a request for public comments on the Tablecloth Rule. 58 FR

21124. The Commission asked commenters to address questions relating to

the costs and benefits of the rule, the burdens it imposes, and the

basis for assessing whether it should be retained, or amended.

The Commission received only one comment specifically addressing

this rule along with a general comment referring to several rules under

review. The comment specific to this rule was submitted by a trade

group representing the textile rental, linen supply, uniform rental,

dust control and commercial laundry services industries. In its one-

page comment letter, the association stated there is a continuing need

for this rule. The commenter believes that the rule does not impose any

additional costs or burdens on entities subject to the rule and that

the rule raises the level of professionalism in the industry.

In addition, one general comment, applicable to several rules being

reviewed, was received from an advertising agency association. This

organization recommends rescission of the Tablecloth Rule because the

general prohibitions covering false and deceptive advertising apply to

the industry and thus the rule creates unnecessary administrative costs

for the government, industry members and consumers. The advertising

association did not submit any analysis or data relating to the

imposition of unnecessary administrative costs on affected industry

members, government or consumers.

Prior to the request for comments, Commission staff engaged in an

informal review of industry practices by examining the marking of

dimensions on tablecloths and other items subject to the rule available

for retail sale at several national chain stores. This informal review

revealed no instances of rule violations. In fact, it appeared from

that limited review that industry products were marked with only the

finished size. Additionally, the Commission has no record of receiving

any complaints regarding non-compliance with the rule, or of initiating

any law enforcement actions alleging violations of the rule's

requirements. Finally, the Uniform Packaging and Labeling Regulation,

which has been adopted by 47 states, regulates the labeling of

tablecloths, providing that these items must be labeled with their

finished size.

Part B--Objectives

Based on the review described above, the Commission has determined

that there may no longer be a need to continue the Tablecloth Rule in

light of the apparent changes in industry practices and the existence

of laws in [[Page 27243]] nearly all of the states mandating the point-

of-sale disclosure required by the rule. The objective of this notice

is to solicit comment on whether the Commission should initiate a

rulemaking proceeding to repeal the Tablecloth Rule.

Part C--Alternative Actions

The Commission is not aware of any feasible alternatives to either

repealing or retaining the Tablecloth Rule.

Part D--Request for Comments

Members of the public are invited to comment on any issues or

concerns they believe are relevant or appropriate to the Commission's

review of the Tablecloth Rule. Comments submitted during the regulatory

review proceeding described above will be made part of the record, and

need not be resubmitted. A comment that includes the reasoning or basis

for a proposition will likely be more persuasive than a comment without

supporting information. The Commission requests that factual data upon

which the comments are based be submitted with the comments. In this

section, the Commission identifies a number of issues on which it

solicits public comment. The identification of issues is designed to

assist the public to comment on relevant matters and should not be

construed as a limitation on the issues on which public comment may be

submitted.

Questions

(1) Do manufacturers and sellers of tablecloths currently use ``cut

size'' as a means of marking the size of their products for sale at

retail to consumers?

(2) Does the fact that nearly all of the states have adopted the

Uniform Packaging and Labeling Regulation, which governs the labeling

of tablecloths, eliminate or greatly lessen the need for the Tablecloth

Rule?

(3) What are the benefits to consumers from the rule?

(4) What are the costs to industry imposed by the rule?

(5) Is there a continuing need for the rule or should the rule be

repealed?

Authority: Sec. 18(d)(2)(B) of the Federal Trade Commission Act,

15 U.S.C. 57a(d)(2)(B).

List of Subjects in 16 CFR Part 404

Advertising, Trade practices, Tablecloths.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-12579 Filed 5-22-95; 8:45 am]

BILLING CODE 6750-01-M