Request for Comments Concerning Guides for the Beauty and Barber Equipment and Supplies Industry

FEDERAL TRADE COMMISSION

16 CFR PART 248

Request for Comments Concerning Guides for the Beauty and Barber

Equipment and Supplies Industry

AGENCY: Federal Trade Commission.

ACTION: Request for public comments.

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SUMMARY: The Federal Trade Commission (the ``Commission'') requests

public comments on its Guides for the Beauty and Barber Equipment and

Supplies Industry. The Commission is also requesting comments about the

overall costs and benefits of the Guides for the Beauty and Barber

Equipment and Supplies Industry and their overall regulatory and

economic impact as a part of its systematic review of all current

Commission regulations and guides.

DATES: Written comments will be accepted until June 5, 1995.

ADDRESSES: Comments should be directed to: Secretary, Federal Trade

Commission, Room H-159, Sixth Street and Pennsylvania Ave., NW.,

Washington, DC 20580. Comments about the Guides for the Beauty and

[[Page 17033]] Barber Equipment and Supplies Industry should be

identified as ``16 CFR Part 248--Comment.''

FOR FURTHER INFORMATION CONTACT: Douglas J. Goglia, Attorney, Federal

Trade Commission, New York Regional Office, 150 William Street, 13th

Floor, New York, NY 10038, (212) 264-1229.

SUPPLEMENTARY INFORMATION: The Commission has determined, as part of

its oversight responsibilities, to review rules and guides

periodically. These reviews will seek information about the costs and

benefits of the Commission's rules and guides and their regulatory and

economic impact. The information obtained will assist the Commission in

identifying rules and guides that warrant modification or recission.

At this time, the Commission solicits written public comments

concerning the Commission's Guides for the Beauty and Barber Equipment

and Supplies Industry (the ``Beauty/Barber Supplies Guides,'' or the

``Guides'').

The Beauty/Barber Supplies Guides, like the other industry guides

issued by the Commission, ``are administrative interpretations of laws

administered by the Commission for the guidance of the public in

conducting its affairs in conformity with legal requirements. They

provide the basis for voluntary and simultaneous abandonment of

unlawful practices by members of industry.'' 16 CFR 1.5. Conduct

inconsistent with the Beauty/Barber Supplies Guides may result in

corrective action by the Commission under applicable statutory

provisions. The Commission may decide to promulgate an industry guide

``when it appears to the Commission that guidance as to the legal

requirements applicable to particular practices would be beneficial in

the public interest and would serve to bring about more widespread and

equitable observance of laws administered by the Commission.'' 16 CFR

1.6.

The Beauty/Barber Supplies Guides designate as unacceptable certain

advertising and trade practices relating to the sale of products used

by, and/or marketed through, ``Industry Members'' (as defined in

Sec. 248.0 of the Beauty/Barber Supplies Guides) such as barber shops,

barber schools, beauty parlors, beauty salons, and beauty clinics. Such

products embrace a wide range of beauty and barber preparations, as

well as articles or items of equipment, furnishings, and supplies for

such establishments. The Beauty/Barber Supplies Guides include, among

other things, guidance about the use of trade names, symbols, and

depictions; the defamation of competitors or the false disparagement of

their products; false invoicing; push money; advertising or promotional

allowances, or services or facilities; commercial bribery; enticing

away employees of competitors; inducing breach of contract; exclusive

dealing arrangements; and price discrimination.

The Commission believes that certain sections of the Beauty/Barber

Supplies Guides may not be so specific to the beauty and barber

industry that they are warranted in light of general guidance available

elsewhere. For example, the statement on discriminatory pricing may be

in large part needlessly duplicative of sections (a) and (f) of the

Robinson-Patman Act, and the statement on discriminatory promotional

allowances and services may be duplicative of the so-called Fred Meyer

Guides, which interpret sections (d) and (e) of the Robinson-Patman Act

and section 5 of the Federal Trade Commission Act. See Guides for

Advertising Allowances and Other Merchandising Payments and Services,

16 CFR part 240. Similarly, other sections of the Beauty/Barber

Supplies Guides describe general principles derived from the antitrust

laws and consumer protection laws enforced by the Commission, but in

ways that may not be especially specific to the beauty and barber

equipment industry.

If the Commission elects to retain the Beauty/Barber Supplies

Guides after conducting this review, it intends to update certain terms

to reflect policy changes that have occurred since the Beauty/Barber

Supplies Guides were last revised in 1968. The phrase ``capacity and

tendency or effect of misleading or deceiving,'' in Secs. 248.1, 248.5,

and 248.6, may be changed to conform with the language regarding

deception that is set forth in Cliffdale Associates, Inc., 103 F.T.C.

110 (1984), and subsequent cases.

The Commission also may provide updated notations to other

Commission guides which supplement the Beauty/Barber Supplies Guides.

Specifically, a notation may be appended after Sec. 248.0 to advise

that certain ``Industry Members,'' such as beauty schools, beauty

clinics, and barber schools, may refer to the Commission's Guides for

Private Vocational and Home Study Schools, 16 CFR part 254, for

additional guidance. A notation may be inserted following Sec. 248.14

of the Beauty/Barber Supplies Guides to indicate that the Commission's

Guides for Advertising Allowances and Other Merchandising Payments and

Services, 16 CFR part 240, furnish detailed guidance regarding

advertising or promotional allowances, or services or facilities, and

should be considered as supplementing Sec. 248.14.

In addition, the Beauty/Barber Supplies Guides currently include,

in footnote 1 to Sec. 248.1, a notation to the Commission's Guides

Against Deceptive Advertising of Guarantees, 16 CFR part 239. A second

notation following Sec. 248.4 of the Guides refers to the Commission's

Guides Against Deceptive Pricing, 16 CFR part 233. These notations may

be modified so that the language contained therein will be consistent.

Accordingly, the Commission solicits public comments on the

following questions:

1. Is there a continuing need for the Beauty/Barber Supplies

Guides/

a. Do members of the beauty and barber equipment and supplies

industry require these industry-specific guides for information about

applicable legal standards, or can equally helpful guidance be obtained

from more general sources such as the Fred Meyer guides, 16 CFR part

240?

b. What benefits have the Guides provided to purchasers of the

products or services affected by the Guides?

c. Have the Guides imposed costs on purchasers?

d. Do the Guides continue to address practices which are of concern

to members of the beauty and barber equipment and supplies industry?

2. What changes, if any, should be made to the Guides to increase

the benefits of the Guides to purchasers?

a. How would these changes affect the costs the Guides impose on

firms subject to their requirements?

3. What significant burdens or costs, including costs of adherence,

have the Guides imposed on firms subject to their requirements?

a. Have the Guides provided benefits to such firms?

4. What changes, if any, should be made to the Guides to reduce the

burdens or costs imposed on firms subject to their requirements?

a. How would these changes affect the benefits provided by the

Guides?

5. Do the Guides overlap or conflict with other federal, state, or

local laws or regulations?

6. Since the Guides were issued, what effects, if any, have changes

in relevant technology or economic conditions had on the Guides?

Authority: 15 U.S.C. 41-58.

List of Subjects in 16 CFR Part 248

Advertising, Trade practices, Deceptive pricing, Price

discrimination, Promotional allowances.

[[Page 17034]] By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 95-8189 Filed 4-3-95; 8:45 am]

BILLING CODE 6750-01-M