The Wire Works, Inc., et al.; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 982-3588]

The Wire Works, Inc., et al.; 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 November 29, 1999.

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

Room 159, 600 Pennsylvania Ave., NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Elaine Kolish or Kent Howerton, FTC/S-

4302, 600 Pennsylvania Ave., NW., Washington, DC 20580. (202) 326-3042

or 326-3013.

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 September 13, 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. Comments should be directed to: FTC/

Office of the Secretary, Room 159, 600 Pennsylvania Ave., NW.,

Washington, DC 20580. Two paper copies of each comment should be filed,

and should be accompanied, if possible, by a 3\1/2\ inch diskette

containing an electronic copy of the comment. 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

Sec. 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

[[Page 52791]]

from respondents The Wire Works, Inc., and Electrodes, 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 brass electrical discharge machining

(``EDM'') wire electrodes. Wire EDM is a metal removal technique that

is used to cut metal parts. The Commission's complaint charges that

respondents misrepresented that certain of its EDM wire electrodes were

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

fact, a substantial portion of their content was of foreign origin.

The proposed consent order contains a provision that is designed to

remedy the charges and to prevent the respondents from engaging in

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

prohibits the respondents from misrepresenting the extent to which

their EDM wire electrodes are made in the United States. The proposed

order would allow respondents to represent that such EDM wire

electrodes are made in the United States as long as all, or virtually

all, of the components of the EDM wire electrodes are of U.S. origin

and all, or virtually all, of the labor in manufacturing them is

performed in the United States. It also would allow respondents to make

a representation regarding the U.S. origin or U.S. content of their EDM

wire electrodes product as permitted in future regulations, guides, or

enforcement policy statements promulgated by the Commission. The

proposed order further would allow respondents to describe the specific

processing that is performed on the product in the United States, e.g.,

that the product is ``Drawn in the U.S.A.,'' ``Annealed in U.S.A.,''

``Coldworked in U.S.A.,'' or ``Strengthened in U.S.A.,'' so long as the

claim is truthful and substantiated. If the product is not last

substantially transformed in the United States, the proposed order

would require the respondents to comply with regulations and rulings

issued by the U.S. Customs Service under section 304 of the Tariff Act,

19 U.S.C. 1304.

Part II of the proposed order requires the respondents to maintain

materials relied upon in disseminating any representation covered by

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

distribute copies of the order to certain company officials and

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

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

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

requires the respondents 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. 99-25419 Filed 9-29-99; 8:45 am]

BILLING CODE 6750-01-M