Design Zone, Inc.; Analysis to Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 9823257]

Design Zone, 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 May 26, 1999.

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

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

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

Pennsylvania Avenue, NW., Washington, DC 20580, (202) 326-3010.

SUPPLEMENTARY INFORMATION: Pursuant to section 69(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, 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 Avenue, 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

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

[[Page 14729]]

from Design Zone, Inc. The agreement would settle a proposed complaint

by the Federal Trade Commission that Design Zone violated the Textile

Fiber Products Indentification Act and engaged in unfair or deceptive

acts or practices in violation of Section 5(a) of the Federal Trade

Commission Act.

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

sixty (60) days for reception of comments by interested persons. 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 or make final the agreement's proposed order.

This matter concerns country-of-origin labeling practices relating

to the sale of cotton t-shirts and other textile wearing apparel. The

proposed complaint charges that Design Zone removed labels saying

``Made in China'' from t-shirts manufactured in China and substituted

labels containing the statement ``Made in the USA'' or, in some

instances, added the ``Made in USA'' labels without removing the ``Made

in China'' labels.

The proposed consent order contains provisions designed to prevent

Design Zone from engaging in similar acts and practices in the future.

Part I of the proposed order prohibits Design Zone from

misrepresenting, in any manner, the extent to which t-shirts or other

items of textile wearing apparel are made in the United States or any

other country. It further prohibits it from violating any provision of

the Textile Fiber Products Identification Act.

The proposed order also contains standard provisions regarding

record-keeping, notification of changes in corporate status,

distribution of the order, termination of the order, and filing of a

compliance report.

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

proposed order, and it is not intended to constitute an official

interpretation of the agreement and the proposed order or to modify

their terms in any way.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 99-7397 Filed 3-25-99; 8:45 am]

BILLING CODE 6750-01-M