Request for Comment Concerning the Guides for the Law Book Industry

FEDERAL TRADE COMMISSION

16 CFR Part 256

Request for Comment Concerning the Guides for the Law Book

Industry

AGENCY: Federal Trade Commission.

ACTION: Request for public comment.

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

comment on the overall costs and benefits and the continuing need for

its Guides for the Law Book Industry (``Law Book Guides'' or

``Guides''), as part of the Commission's systematic review of all

current Commission regulations and guides.

DATES: Written comments will be accepted until May 17, 1999.

ADDRESSES: Mailed comments should be directed to: Secretary, Federal

Trade Commission, Room H-159, 600 Pennsylvania Ave., NW, Washington, DC

20580. Mailed comments should be identified as ``Law Book Guides, 16

CFR Part 256--Comment.'' E-mail comments will be accepted at

[[email protected]]. Those who comment by e-mail should give a mailing

address to which an acknowledgment can be sent.

FOR FURTHER INFORMATION CONTACT: Edwin Rodriquez, Attorney, Federal

Trade Commission, Washington, DC 20580, telephone number (202) 326-

3147.

SUPPLEMENTARY INFORMATION:

I. Background

The Commission promulgated the Law Book Guides under section 5 of

the Federal Trade Commission Act (``FTC Act''), 15 U.S.C. 45, on August

8, 1975, 40 FR 33436, and they became effective eight months

thereafter.\1\ The Guides contain seventeen sections, or guides, that

provide guidance regarding the sale of legal reference materials to the

law profession and law schools. The seventeen cover practices ranging

from the marketing of legal reference materials to consumers, to the

supplementation of these materials and billing practices employed by

sellers.

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\1\ Section 5 of the FTC Act declares methods of competition and

unfair or deceptive acts or practices to be unlawful. Corrections of

the Guides were published on August 19, 1975, 40 FR 36116.

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Guides 1 through 9 pertain to solicitations for the sale of legal

reference materials, particularly direct-mail promotional materials or

oral representations. Guides 1 advises that sellers should make

disclosures property identifying the product being sole (e.g., title,

publisher, editor, copyright, price, type of binding, whether product

is part of set or series). Guide 2 recommends disclosures regarding the

supplementation of products offered for sale, including the kind of

supplementation currently being supplied, its frequency, cost, credits

or discounts for supplements in connection with the original purchase,

and information pertaining to the continuation or abandonment of

supplementation. Guide 3 advises sellers to disclose the general scope

of a work. For publications that are not supplemented, Guide 4 advises

that sellers should inform prospective purchasers if a work offered for

sale will be replaced or substantially revised within a year of the

sale (and the approximate date of replacement or revision), and that

sellers should offer refunds or credits to buyers who have been so

informed. Guide 5 advises sellers against misrepresenting that the

product is new, current, or up-to-date. Guide 6 advises that direct-

mail promotional materials or oral representations soliciting the sale

of specific texts or treaties should clearly and conspicuously disclose

the names of authors or editors who contributed substantial parts to a

work when a title contains the name of a person who did not author or

edit, or who only partially authored or edited, the work. It also

advises sellers to disclose the sources of the work's contents, whether

a work is a compilation, other titles under which the work has been

published, and information identifying the previous

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version of a revision or new edition of a work. Guide 7 advises that

solicitation for the sale of works not yet published should not

represent that the publication has been published and should disclose

that the publication is planned or contemplated and that inquiries or

orders are being solicited to determine demand for the publication.

Guide 8 advises against misrepresenting the jurisdictional scope of

works offered for sale. Guide 9 pertains to disclosures in catalog

listings describing law publications.

Guides 10-13 address practice that take place after the purchase of

legal reference materials. Guide 10 pertains to subscription renewals.

It advises that subscription renewal notices should not be sent to

anyone who is not a current subscriber of the work, and that notices

should indicate renewal numbers (i.e., first or second renewal). Guides

11 through 13 related to disclosures that should be made on

publications themselves. Guide 11 advises sellers to disclose specific

information identifying the publication (e.g., titles and subtitles of

books and series, the edition number, original title of revised

publication, authors, editors, publisher). Guide 12 warns against the

use of misleading jurisdictional designations on publications. Guide 13

specifies certain disclosures that should be made on supplements (e.g.,

title of publication or set to which the supplement belongs, the names

or authors, editors, or compilers of the publication and the

supplements, and the date covered by the supplement, or the month and

year of issuance of each replacement sheet).

Guide 14 pertains to upkeep services and is designed to furnish the

seller and buyer with a clear understanding of what upkeep services are

being ordered. Many upkeep services provides for automatic shipment of

supplementation materials. The Guide advises that sellers should

clearly and conspicuously disclose the provisions of such automatic

upkeep services before any agreement for the purchase of legal

materials is entered, that they should provide upkeep services that

include only materials that are absolutely essential to make a set or

series functional, and that they should not require the purchase of

other, non-basic upkeep services.

Guide 15 concerns the billing process and includes recommendations

regarding account management and information that should appear on

invoices and billing statements. Guide 16 states that sellers should

not add to a publication materials that are not substantially germane

to its subject matter. Finally, Guide 17 advises generally against

misleading or deceptive representations regarding a publication or

supplementation or any service offered in connection therewith.

II. Regulatory Review Program

The Commission has determined to review all current Commission

rules and guides periodically. These reviews seek information about the

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

regulatory and economic impact. The information obtained assists the

Commission in identifying rules and guides that warrant modification or

rescission. Therefore, the Commission solicits comments on, among other

things, the economic impact of and the continuing need for the Law Book

Guides; possible conflict between the Guides and state, local, or other

federal laws; and the effect on the Guides of any technological,

economic, or other industry changes.

III. Request for Comment

The Commission solicits written public comment on the following

questions:

(1) Is there a continuing need for the Law Book Guides?

(a) What benefits have the Guides provided to purchasers of the

legal reference materials affected by the Guides?

(b) Have the Guides imposed costs on purchasers?

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

the benefits of the Guides to purchasers? How would these changes

affect the costs the Guides impose on firms who conform to the Guides?

How would these changes affect the benefits to purchasers?

(3) What significant burdens or costs, including costs of

compliance, have the Guides imposed on firms who conform to the Guides?

Have the Guides provided benefits to such firms? If so, what benefits?

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

the burdens or costs imposed on firms who conform to the Guides? 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? For example, do sellers use E-mail or the Internet to promote

or sell legal reference materials covered by the Guide? If so, in what

manner? Does use of this new technology affect consumers' rights or

sellers' responsibilities under the Guides?

(7) Are there private industry standards addressing the practices

covered by the Guides?

(8) Are there any abuses occurring in the promotion, sale, or

distribution of legal reference materials covered by the Guides that

are not dealt with in the Guides? If so, what mechanisms should be

explored to address such abuses (e.g., consumer education, industry

self-regulation, revisions to the Guides)?

List of Subjects in 16 CFR Part 256

Advertising, Law, Trade practices.

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

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 99-6596 Filed 3-17-99; 8:45 am]

BILLING CODE 6750-01-M