Advisory opinion letter to Mr. Secretary: warranty microfiche cataloging will ADVISORY OPINIONS 1029 1027…

September 13, 1976 Dear Mr. Secretary:

The National Retail Hardware Association, a trade association representing over 20 000 retail hardware stores and home centers, requests an advisory opinion whether warranty microfiche cataloging will ADVISORY OPINIONS 1029

satisfy the requirements of 16 CFR 702.3(1)(ii) (Pre-Sale Availability of Written Warranty Terms) (40 Federal. Reg-iste,,' 60189, December 31 1975).

On September 2, 1976, representatives of this association and the National Micrographics Association met with Christian S. White and members of his staff to demonstrate warranty microfiche cataloging. At that time we noted the importance of the pertinent FTC regulations concerning pre-sale availability of warranty terms to retailing in general, and hardware retailing in particular. In requesting this advisory opinion we would urge the Commission to accept warranty microfiche cataloging as being a "* * * system which will provide the consumer with convenient access to copies of product warranties. " (16 CFR 702. 1(g) J.

Microfiche acceptance within the retail hardware industry has been remarkable. An NRHA survey (1976) indieates that there are estimated 15 000 retail hardware firms with microfiche capability. This group represents 46 percent of the stores in our industry and accounts for 70-80 percent of the annual sales of all retail hardware and home center firms. A series of recent articles from Hardware Retailing describes the phenomenal growth of microfiche communication in the hardware industry; copies of the articles are enclosed with this letter. Section 702.3(1)(ii) requires retailers to perform four affirmative tasks in order to bring a "binder" system into compliance, they are: a. to provide copies of the warranties b. to provide customers with ready access c. to provide warranties indexed by product or warrantor, and d. to keep current all material contained therein. Warranty microfiche cataloging meets every one of these criteria. Warranty microfiche cataloging, furthermore, possesses inherent advantages that may make it superior to a binder system by: a. minimizing the aecidental or deliberate removal of warranty information b. permitting gTeater uniformity in the presentation of \varranty ma terial to customers c. increasing the opportunity for cross indexing, and d. increasing the likelihood of maintaining access to warranties for older or out of production consumer products.

. Not reproduced hereinfor reasons of economy, but available for inspection and copying in the Public Reference Branch. Room 130 of the FTC Bldg., \Vashington , D.

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When the final Part 702 Rules were published, the Commission acknowledged that modifications to Section 702.3 had been made and stated: "The final Rule heeds the retailers' cry for flexibility. " In requesting the Commission to accept warranty microfiche cataloging as being within the ambit of a "binder " \ve are asking the Commission to maintain this "flexibility.

\"'1 e are confident that warranty microfiche cataloging will be exciting and effective way to communicate to customers pre-sale information on warranted consumer products. We urge the Commission to expeditiously render this advisory opinion so that we can be in a position to assist our industry to be in full compliance by the December , 1976 effective date.

Sincerely yours

/s/ Sheldon 1. London
Director of Government
Relations