Disclosure of Origin of Imported Components Used Fork Lift Trucks

No. 349. Disclosure of Origin of Imported Components Used Fork Lift Trucks.

In response to a request for an advisory opinion, the Commission advised a company that one of its statements would not be proper but that it would not object to its other proposed statement. The company had requested an opinion in regard to the proper marking and advertising of fork lift trucks made partly of imported components with specific reference to the following two statements:

(1) "Assembled in U.

(2) "Assembled in U. A. of components of l;SA & Imports The trucks wi1 be sold to industrial users through various sales agencies throughout the United States, and the agencies wil have on display at least one or two models to show to prospective purchasers. It is anticipated that parts imported from Bulgaria wi1 represent approximately 40 percent of total production costs parts, and labor assembly costs in the United States wi1 represent 30 percent and the remaining 30 percent wil represent parts imported from one of the following five countries: West Germany, France, England, Denmark, and Japan. Thus approximately 70 percent of total production costs wi1 consist of imported components. In the opinion which was rendered, the Commission concluded that it could not accept the first proposed statement as being in conformity with Section 5 of the FTC Act. However, the Commission said, it would interpose no objection to the USe of the second proposed disclosure- Assembled in U. A. of components of USA & Imports." (File No. 6937129 Released July 2, J 969)