Resvission of Adwisory Opinion

ADVISORY OPINIONS WITH REQUESTS THEREFOR* Resvission of Adwisory Opinion .

No. 88. Thrée-way Promotional Plan Set Up by Radio Station and Financed by Participating Retailers and Their ‘Suppliers. The Commission has reconsidered and rescinded the subject advisory opinion appearing at 70 F. T. C. 1869. » (File 2 No. 683 7022, released J july’ 7, 1972. ) Product | ‘information - disclosure “on jewelry—“18K H. GE 1g _, Stamped alone and together with a tag bearing the words “18K ' Heavy Gold Electroplate.” (File No. 723 7007),

Opinion Letter sot oe es
. ‘Aveusr 18, 1972).
Dear Mr. WInDMAN: .

This is in response to your letter request dated April 21, 1972, for an advisory opinion.

You requested the Commission’s views regarding the propriety of using “18K H.G.E.” alone stamped on a piece of jewelry, and, alternatively, such use if a tag were attached bearing the words “18K Heavy Gold Electroplate.” It is the Commission’s understanding that, in con*Prior to October 29, 1969, in conformity with the policy of the Commission, advisory opinions were confidential and available to the public only in digest form. Digests of advisory opinions were published in the Federal Register. The policy was changed on October 29, 1969, to provide for publication of advisory opinions and requests therefor, including names and details, when rendered, subject to any limitations on public disclosure arising from statutory restrictions, the Commission’s rules, and the public interest. The policy was again changed on December 22, 1971, to provide for the placement in the Commisston’s public record of advisory opinions and requests therefor, including names and details, immediately after the requesting party has received the Commission’s advice, subject to any limitations on public disclosure arising from statutory restrictions, the Commission’s rules, and the public interest.

In the case of requests for advice concerning proposed. mergers, the requests together with supporting materials are placed on the public record as soon after they are received as circumstances permit, except for information for which confidential classification has been requested, with a showing therefor, and which the Commission, with due regard to statutory restrictions, its rules, and the public interest, has determined should not be made public. Any advice given: under Section 1.8 of the Commission’s Rules of Practice concerning proposed. mergers, together with a statement of supporting reasons, are

published when given.
1065
494-841—73——-68

1066 ' FEDERAL TRADE COMMISSION DECISIONS Opinion 81 F-L.C.

formity with Rule 22C (3) of the Trade Practice Rules for the Jewelry Industry amended November 17, 1959 (16 C.F-.R. 23), the jewelry so represented would be covered ‘throughout with a minimum thickness of 100/1,000,000 of fine gold. | The Commission is of the opinion. that use of “18K H.G.E.” alone on a piece of jewelry electroplated with gold would raise questions under Section 5 of the Federal Trade Commission Act because purchasers probably would be misled as to the meaning of the description due to use of the abbreviation. The Commission cannot accept your - suggestion that no quality disclosure need be made ifthe disclosure can only be made by abbreviation: The Commission favors disclosure by manufacturers and: retailers of significant information regarding consumer products i order to assist. prospective purchasers in making-informed purchasing decisions. If the surface of the jewelry. is large enough to contain a full disclosure, use of a tag. would be an unacceptable substitute for such disclosure on the item. itself. On the other hand, if the surface of the jewelry is too small to contain a full disclosure, the maximum reasonable abbreviated disclosure should be set forth on the jewelry item and the full disclosure should be contained on a securely attached tag. In some circumstances, the failure to make an adequate disclosure could raise a question as to whether Section 5 of the Federal Trade

Commission Act had been violated.
By direction of the Commission.
Letier of Request
Avprin 21, 1972.