American Honda Motor Company, Inc.; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 9823600]

American Honda Motor Company, Inc.; Analysis To Aid Public

Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: The consent agreement in this matter settles alleged

violations of federal law prohibiting unfair or deceptive acts or

practices or unfair methods of competition. The attached Analysis to

Aid Public Comment describes both the allegations in the draft

complaint that accompanies the consent agreement and the terms of the

consent order--embodied in the consent agreement--that would settle

these allegations.

DATES: Comments must be received on or before March 29, 1999.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,

Room 159, 600 Pa. Ave., NW, Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT:

Elaine Kolish or Laura Koss, FTC/S-4302, 601 Pa. Ave., NW, Washington,

D.C. 20580, (202) 326-3042 or (202) 326-2890.

[[Page 3946]]

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal

Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 2.34 of the

Commission's Rules of Practice (16 CFR 2.34), notice is hereby given

that the above-captioned consent agreement containing a consent order

to cease and desist, having been filed with and accepted, subject to

final approval, by the Commission, has been placed on the public record

for a period of sixty (60) days. The following Analysis to Aid Public

Comment describes the terms of the consent agreement, and the

allegations in the complaint. An electronic copy of the full text of

the consent agreement package can be obtained from the FTC Home Page

(for January 19, 1999), on the World Wide Web, at ``http://www.ftc.gov/

os/actions97.htm.'' A paper copy can be obtained from the FTC Public

Reference Room, Room H-130, 600 Pennsylvania Avenue, NW, Washington,

D.C. 20580, either in person or by calling (202) 326-3627. Public

comment is invited. Such comments or views will be considered by the

Commission and will be available for inspection and copying at its

principal office in accordance with Section 4.9(b)(6)(ii) of the

Commission's Rules of Practice (16 CFR 4.9(b)(6)(ii)).

Analysis of Proposed Consent Order to Aid Pubic Comment

The Federal Trade Commission has accepted an agreement, subject to

final approval, to a proposed consent order from respondent American

Honda Motor Company, Inc.

The proposed consent order has been placed on the public record for

sixty (60) days for reception of comments by interested persons.

Comments received during this period will become part of the public

record. After sixty (60) days, the Commission will again review the

agreement and the comments received and will decide whether it should

withdraw from the agreement and take other appropriate action or make

final the agreement's proposed order.

This matter concerns advertising, labeling and promotional

practices related to the sale of lawn mowers. The Commission's

complaint charges that respondent misrepresented that its Honda

Masters, Honda Harmony II 3-in -1, and Honda Harmony II lawn mowers are

all or virtually all made in the United States when, in truth and if

fact, a significant portion of the components of these lawn mowers

models is, or has been, of foreign origin.

The proposed consent order contains a provision that is designed to

remedy the charges and to prevent the respondent from engaging in

similar acts and practices in the future. Part I of the proposed order

prohibits the respondent from misrepresenting the extent to which a

lawn mower is made in the United States. The proposed order would allow

respondent to represent that a lawn mower is made in the United States

so long as all, or virtually all, of the component parts of the lawn

mower are made in the United States and all, or virtually all, of the

labor in manufacturing the lawn mower is preformed in the United

States.

The proposed consent order additionally provides that the order

shall not apply to the labeling of lawn mowers manufactured before the

effective date of the order.

Part II of the proposed order requires the respondent to maintain

materials relief upon in disseminating any representation covered by

the order. Part III of the proposed order requires the respondent to

distribute copies of the order to certain company official and

employees. Part IV of the proposed order requires the respondent to

notify the Commission of any change in the corporation that may affect

compliance obligations under the order. Part V of the proposed order

requires the respondent to file one or more compliance reports. Part VI

of the proposed order is a provision whereby the order, absent certain

circumstances, terminates twenty years from the date to issuance.

The purpose of this analysis is to facilitate public comment on the

proposed consent order. It is not intended to constitute an official

interpretation of the agreement and proposed order or to modify in any

way their terms.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 99-1657 Filed 1-25-99; 8:45 am]

BILLING CODE 6750-01-M