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

FEDERAL TRADE COMMISSION

16 CFR Part 418

Trade Regulation Rule Concerning Deceptive Advertising and

Labeling as to Length of Extension Ladders

AGENCY: Federal Trade Commission.

ACTION: Repeal of rule.

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SUMMARY: The Federal Trade Commission announces the repeal of the Trade

Regulation Rule concerning Deceptive Advertising and Labeling as to

Length of Extension Ladders. The Commission has reviewed the rulemaking

record and determined that due to changes in industry practice, and the

existence of standards mandating the point-of-sale disclosures required

by the Rule, the Rule no longer serves the public interest and should

be repealed. This notice contains a Statement of Basis and Purpose for

repeal of the Rule.

EFFECTIVE DATE: December 20, 1995.

ADDRESSES: Requests for copies of the Statement of Basis and Purpose

should be sent to Public Reference Branch, Room 130, Federal Trade

Commission, 6th Street & Pennsylvania Avenue N.W., Washington, DC

20580.

FOR FURTHER INFORMATION CONTACT: Neil Blickman, Attorney, Federal Trade

Commission, Bureau of Consumer Protection, Division of Enforcement,

Washington, DC 20580, (202) 326-3038.

SUPPLEMENTARY INFORMATION:

Statement of Basis and Purpose

I. Background

The Trade Regulation Rule concerning Deceptive Advertising and

labeling as to Length of Extension Ladders (Extension Ladder Rule), 16

CFR Part 418, was promulgated in 1969 (34 FR 929). The Extension Ladder

Rule 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 meaning that clearly

indicate the basis of the representation; and,

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

statement in close proximity that 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 of

the basis for such representation.\1\

\1\ The Rule then gives an example of proper length

representation when the product consists of two ten foot sections:

``maximum working length 17', total length of sections 20''' or

``17' extension ladder''.

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On May 23, 1995, the Commission published an Advance Notice of

Proposed Rulemaking (ANPR) seeking comment on proposed repeal of the

Extension Ladder Rule (60 FR 27245). In accordance with Section 18 of

the Federal Trade Commission (FTC) Act, 15 U.S.C. 57a, the ANPR was

sent to the Chairman of the Committee on Commerce, Science and

Transportation, United States Senate, and the Chairman of the

Subcommittee on Commerce, Trade and Hazardous Materials, United States

House of Representatives. The comment period closed on June 22, 1995.

The Commission received no comments.

On September 18, 1995, the Commission published a Notice of

Proposed Rulemaking (NPR) initiating a proceeding to consider whether

the Extension Ladder Rule should be repealed or remain in effect (60 FR

48075).\2\ This rulemaking proceeding was undertaken as part of the

Commission's ongoing program of evaluating trade regulation rules and

industry guides to ascertain their effectiveness, impact, cost and

need. This proceeding also responded to President Clinton's National

Regulatory Reinvention Initiative, which, among other things, urges

agencies to eliminate obsolete or unnecessary regulations. In the NPR,

the Commission announced its determination, pursuant to 16 CFR 1.20,

the use expedited procedures in this proceeding.\3\

\2\ In accordance with Section 18 of the FTC Act, 15 U.S.C. 57a,

the Commission submitted the NPR to the Chairman of the Committee on

Commerce, Science and Transportation, United States Senate, and the

Chairman of the Subcommittee on Commerce, Trade and Hazardous

Materials, United States House of Representatives, 30 days prior to

its publication.

\3\ These procedures included: publishing a Notice of Proposed

Rulemaking, soliciting written comments on the Commission's proposal

to repeal the Rule; holding an informal hearing, if requested by

interested parties; receiving a final recommendation from Commission

staff; and announcing final Commission action in the Federal

Register.

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The comment period closed on October 18, 1995. The Commission

received no comments and no requests to hold an informal hearing.

II. Basis for Repeal of Rule

The Commission periodically reviews its rules and guides, seeking

information about their costs and benefits and their regulatory and

economic impact. The information obtained assists the Commission in

identifying rules and guides that warrant modification or rescission.

Accordingly, 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.

Six specific comments were received. One commenter, a consumer,

opined that the only label that should be on ladders is the ``maximum

working length'' because 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 were manufacturers or suppliers

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

referred to the American National Standards Institute (ANSI) standard

A14, which governs the labeling of ladders. ANSI standard A14 details

the requirements for labeling portable wood ladders, portable metals

ladders, fixed ladders, job made ladders, and portable

[[Page 65534]]

reinforced plastic ladders. The ANSI standard requires specification of

the maximum working length of an extension ladder, 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

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, which the commenter stated also requires extension ladders to be

marked to indicate both the total length of sections and the maximum

extended length or maximum working length.

In addition to these specific comments, one general comment,

applicable to several Commission Rules being reviewed, was received

from an advertising agency association. This organization recommended

rescission of the Extension Ladder Rule because the general

prohibitions of Section 5 of the Federal Trade Commission Act covering

false and deceptive advertising apply to the ladder industry. Thus, the

commenter concluded that the Rule creates unnecessary administrative

costs for the government, industry members and consumers.

Commission staff also 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, a check of Commission records failed to find any

complaints regarding non-compliance with the Rule, or any initiation of

law enforcement actions alleging violations of the Rule's requirements.

Accordingly, the Commission has reviewed the rulemaking record and

determined to repeal the Extension Ladder Rule due to changes in

industry practice, and the existence of industry standards mandating

the point-of-sale disclosures required by the Rule.

III. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-11, requires an

analysis of the anticipated impact of the repeal of the Rule on small

businesses. The reasons for repeal of the Rule have been explained in

this Notice. Repeal of the Rule would appear to have little or no

effect on small businesses. Moreover, the Commission is not aware of

any existing federal laws or regulations that would conflict with

repeal of the Rule. For these reasons, the Commission certifies,

pursuant to Section 605 of the RFA, 5 U.S.C. 605, that this action will

not have a significant economic impact on a substantial number of small

entities.

IV. Paperwork Reduction Act

The Extension Ladder Rule imposes third-party disclosure

requirements that constitute ``information collection requirements''

under the Paperwork Reduction Act, 44 U.S.C. 3501 et seq. Accordingly,

repeal of the Rule would eliminate any burdens on the public imposed by

these disclosure requirements.

List of Subjects in 16 CFR Part 418

Advertisting, Extension ladders, Trade practices.

PART 418--[REMOVED]

The Commission, under authority of Section 18 of the Federal Trade

Commission Act, 15 U.S.C. 57a, amends chapter I of title 16 of the Code

of Federal Regulations by removing Part 418.

By direction of the Commission.

Donald S. Clark,

Secretary.

FR Doc. 95-31011 Filed 12-19-95; 8:45 am]

BILLING CODE 6750-01-M