Gottschalks, Inc.; Analysis to Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 9923004]

Gottschalks, Inc.; 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 May 26, 1999.

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

Room 159, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT: Carol Jennings, FTC/S-4302, 600

Pennsylvania Avenue, N.W., Washington, D.C. 20580, (202) 326-3010.

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 March 16, 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, N.W., Washington,

D.C. 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 Avenue, N.W.,

Washington, D.C. 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

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, subject to final

approval, an agreement to a proposed consent order from respondent

Gottschalks, 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 practices related to the sale of textile and

wool products by means of an on-line Internet catalog. The Commission's

complaint charges that respondent violated the Federal Trade Commission

Act, 15 U.S.C. 41 et seq., the Textile Fiber Products Identification

Act, 15 U.S.C. 70 et seq., and the Wool Products Labeling Act, 15

U.S.C. 68 et seq., by failing to disclose in its on-line catalog

whether products offered for sale were made in the U.S.A., imported, or

both.

Part I of the proposed consent order prohibits respondent from

advertising any textile or wool product in any mail order catalog or

mail order promotional material, including those disseminated on the

Internet, without disclosing clearly and conspicuously that the product

was made in the U.S.A., imported, or both.

Part II of the proposed order requires the respondent, for five

years after the date of issuance of the Order, to maintain records

demonstrating compliance with the Order, including: (a) copies of mail

order catalogs and mail order promotional materials, as defined in 16

CFR 303.1(u) and 300.1(h), that offer textile and/or wool products for

direct sale to consumers; and (b) complaints and other communications

with consumers, government agencies, or consumer protection

organizations, pertaining to country-of-origin disclosures for textile

and/or wool products.

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

[[Page 14730]]

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. 99-7396 Filed 3-25-99; 8:45 am]

BILLING CODE 6750-01-M