Trade Regulation Rule: Deceptive Advertising and Labeling as to Length of Extension Ladders

FEDERAL TRADE COMMISSION

16 CFR Part 418

Trade Regulation Rule: Deceptive Advertising and Labeling as to

Length of Extension Ladders

AGENCY: Federal Trade Commission.

ACTION: Advance notice of proposed rulemaking (ANPR).

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

repeal its Trade Regulation Rule entitled ``Deceptive Advertising and

Labeling as to Length of Extension Ladders'' (``Extension Ladder

Rule''), 16 CFR part 418. The proceeding will address whether the

Extension Ladder Rule should be repealed or remain in effect.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 418''

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 Extension Ladder Rule, promulgated by the Commission on June

22, 1969, declares that it is an unfair or deceptive act or practice

and an unfair method of competition to represent the size or length of

an extension ladder, in terms of the total length of the component

sections thereof, unless:

(a) Such size or length representation is accompanied by the words

``total length of sections'' or words with similar meanings which

clearly indicate the basis of the representation; and,

(b) Such size or length representation is accompanied by a

statement in close proximity which clearly and conspicuously shows the

maximum length of the product when fully extended for use (i.e.,

excluding the footage lost in overlapping) along with an explanation

for the basis of such representation.

The Commission periodically reviews rules and guides 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 its Extension Ladder Rule. 58 FR 21125. 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 request for comments on the Extension Ladder Rule elicited six

specific comments. One commenter, a consumer, opined that the only

label that should be on ladders is the ``maximum working length'' since

consumers should not have to do any figuring to determine the length of

the ladder that would meet their needs.

Of the other five commenters, four are manufacturers or suppliers

of ladders and one is a trade association. A number of these comments

refer to ANSI standard A14, which governs the labeling of ladders. ANSI

standard A14 details the requirements for labeling portable wood

ladders, portable metal ladders, fixed ladders, job made ladders and

portable reinforced plastic ladders. The ANSI standard requires

specification of the maximum working length of extension ladders, as

well as several other pieces of information not required by the

Extension Ladder Rule, including the total length of the ladder's

sections and the highest standing level of the ladder. Compliance with

the ANSI standard therefore ensures compliance with the labeling

requirements of the Extension Ladder Rule.

Several commenters noted this overlap in the coverage of the

Extension Ladder Rule and ANSI standard A14, and recommended that the

rule be retained unchanged.

Another commenter stated that the rule has imposed minor,

incremental costs, but opined that the benefits have been significant

in that consumers have a better understanding of extension ladder

length. The commenter questioned whether there was a continuing need

for this rule given the existence of ANSI standard A14 and UL Standard

184.

In addition to this specific comment, one general comment,

applicable to several rules being reviewed, was received from an

advertising agency association. This organization recommends rescission

of the Extension Ladder Rule because the general prohibitions covering

false and deceptive advertising apply to the ladder 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.

Finally, Commission staff engaged in an informal review of industry

practices by examining the marking of length on extension ladders

available for retail sale at several chain stores. That review

indicated general compliance with the requirements of the rule.

Additionally, the Commission has no record of receiving any complaints

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

enforcement actions [[Page 27246]] alleging violations of the rule's

requirements.

Part B--Objectives

Based on the review described above, the Commission has determined

that there may no longer be a need to continue the Extension Ladder

Rule in light of the apparent changes in industry practices and the

existence of standards mandating the point-of-sale disclosures 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 Extension Ladder Rule.

Part C--Alternative Actions

The Commission is not aware of any feasible alternatives to either

repealing or retaining the Extension Ladder 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 Extension Ladder 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) Does the existence of the ANSI standard governing the labeling

of extension ladders eliminate or greatly lessen the need for the rule?

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

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

(4) 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 418

Advertising, Trade practices, extension ladders.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-12581 Filed 5-22-95; 8:45 am]

BILLING CODE 6750-01-M