# USDrives Corporation; Analysis To Aid Public Comment

> Briefs, arguments, decisions, and more.

URL: https://www.frixlaw.com/law-library/documents/fr%3A99-1660

## Record

- **Collection:** Federal Register
- **Document type:** Notice
- **Published:** January 26, 1999
- **Citation:** 64 FR 3951

## Text

FEDERAL TRADE COMMISSION

[File No. 9823587]

USDrives Corporation; Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

-----------------------------------------------------------------------

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, DC 20580.

FOR FURTHER INFORMATION CONTACT:
Elaine Kolish or Laura Koss, FTC/S-4302, 601 Pa. Ave., NW, Washington,
DC 20580, (202) 326-3042 or 326-2890.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 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, DC
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 Public Comment

The Federal Trade Commission has accepted an agreement, subject to
final approval, to a proposed consent order from respondent USDrives
Corporation.
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

[[Page 3952]]

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, packaging, labeling and
promotional practices related to the sale of optical drives that read
information on compact disc read-only memory discs (``CD-ROM drives'').
The Commission's complaint charges that respondent misrepresented that
its CD-ROM drives were all or virtually all made in the United States
when, in truth and in fact, its CD-ROM drives were assembled in the
United States of primarily imported parts. In addition, the complaint
charges that respondent misrepresented that CD-ROM drives that were
made in China of primarily non-U.S. parts were all or virtually all
made in the United States.
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 any
CD-ROM drive is made in the United States. The proposed order would
allow respondent to represent that a CD-ROM drive is made in the United
States so long as all, or virtually all, of the component parts of the
CD-ROM drive are made in the United States and all, or virtually all,
of the labor in manufacturing the CD-ROM drive is performed in the
United States.
Part II of the proposed order requires the respondent to maintain
materials relied 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 officials 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 of 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. 99-1660 Filed 1-25-99; 8:45 am]
BILLING CODE 6750-01-M

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/fr%3A99-1660. Public record. Not legal advice.
