Trade Regulation Rule Concerning Deception as to Non-Prismatic and Partially Prismatic Instruments Being Prismatic Binoculars

FEDERAL TRADE COMMISSION

16 CFR Part 402

Trade Regulation Rule Concerning Deception as to Non-Prismatic

and Partially Prismatic Instruments Being Prismatic Binoculars

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 Deception as to Non-Prismatic and Partially

Prismatic Instruments Being

[[Page 65530]]

Prismatic Binoculars. The Commission has reviewed the rulemaking record

and determined that due to changes in technology, the Rule no longer

serves the public interest and should be repealed. This notice contains

a Statement of Basis and Purposes 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, NW., Washington, DC

20580.

FOR FURTHER INFORMATION CONTACT:

Phillip Priesman, Attorney, Federal Trade Commission, Bureau of

Consumer Protection, Division of Advertising Practices, Washington, DC

20580, telephone number (202) 326-2484.

SUPPLEMENTARY INFORMATION:

Statement of Basis and Purpose

I. Background

The Trade Regulation Rule concerning Deception as to Non-Prismatic

and Partially Prismatic Instruments Being Prismatic Binoculars

(Binocular Rule), 16 CFR Part 402, was promulgated in 1964 (29 FR

7316). The Rule requires a clear and conspicuous disclosure on any

advertising or packaging for non-prismatic or partially prismatic

binoculars that the instruments are not fully prismatic. Fully

prismatic binoculars rely on a prism within the instrument to reverse

the visual image entering the lens so that it appears right-side up to

the user. Other binoculars rely partially or entirely on mirrors to

reverse the visual image. When the rule was promulgated, the Commission

was concerned that consumers could be misled into believing that non-

prismatic binoculars were in fact prismatic, absent such a disclosure.

To prevent consumer deception, the rule proscribed the use of the

term ``binocular'' to describe anything other than a fully prismatic

instrument, unless the term was modified to indicate the true nature of

the item. Under the Rule, non-prismatic instruments could be identified

as binoculars only if they incorporated a descriptive term such as

``binocular-nonprismatic,'' ``binocular-mirror prismatic,'' or

``binocular-nonprismatic mirror,''

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

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

Binocular Rule (60 FR 27241). 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 one

comment suggesting that there may be a continuing need for the Rule

because field glasses and opera glasses, both of which are non-

prismatic, are still advertised and sold today. The comment

acknowledged, however, that present-day binoculars are fully prismatic,

while the non-prismatic instruments are identified as either field

glasses or opera glasses rather than binoculars.

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

Proposed Rulemaking (NPR) initiating a proceeding to consider whether

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

48065).\1\ 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, to

use expedited procedures in this proceeding.\2\ The comment period

closed on October 18, 1995. The Commission received no comments and no

requests to hold an informal hearing.

\1\ 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.

\2\ 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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II. Basis for Repeal of Rule

Since the Rule was promulgated, technological advances have reduced

the cost of prisms to the point that almost all binoculars sold today

are fully prismatic. Those that are not fully prismatic are marketed

and sold as field glasses or opera glasses rather than binoculars.

Thus, there does not appear to be any continuing need for the Rule.

Repeal of the Rule will also further the objective of reducing obsolete

government regulation.

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 Binocular Rule does not impose ``information collection

requirements'' under the Paperwork Reduction Act, 44 U.S.C. 3501 et

seq. Although the Rule contains disclosure requirements, these

disclosures are not covered under the Act because the disclosure

language is mandatory and provided by the government. Repeal of the

Rule, however, would eliminate any burdens on the public imposed by

these disclosure requirements.

List of Subjects in 16 CFR Part 402

Binoculars, Trade practices.

PART 402--[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 402.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-31014 Filed 12-19-95; 8:45 am]

BILLING CODE 6750-01-M