Consumer Law Library

Advisory opinion letter to Mr. Schwab

Topics: Advertising

Opening text: Is/ Joel Chasnoff PROPOSED ADVERTISEMENT GET TAX ADVICE AND YOUR FEDERAL RETURN PREPARD FREE BY EXPERTS. FOR DFTAILS ABOtJT THIS LITfLE-KlOWI" U. S. GOVERNME;\' T PROGRAM , SEr-' $5.00 TO INFORMTION FOL:IATlON , INC. , P. O. BOX 246,

89 F.T.C. 696 · June 17, 1977 ·

source volume section (89 F.T.C. 696)

Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.

Is/ Joel Chasnoff

PROPOSED ADVERTISEMENT

GET TAX ADVICE AND YOUR FEDERAL RETURN PREPARD FREE BY EXPERTS. FOR DFTAILS ABOtJT THIS LITfLE-KlOWI" U. S. GOVERNME;\' T PROGRAM , SEr-' $5.00 TO INFORMTION FOL:IATlON , INC. , P. O. BOX 246, BURTONSVILLE MARYHI'D 20904.

ADVISORY OPINIONS 697

Compliance advisory opinion that propose use of a "Confidential Dealer Cost List" would not violate Commission order (88 F. , Dkt. C-2828).

Opinion Letter
June 17, 1977
Dear Mr. Schwab:

The Commission has considcred the request for advice as to whethcr Vnited Audio Products, Inc. (United) may engage in a proposed course of action, whereby United would issue a "Confidential Dea1er Cost List " without violating the order issued by the Commission on July 12 1976, in the captioned matter.

The proposed " Confidential Dealer Cost List" would have a covcr sheet notifying the retail dealcr that United docs not maintain any fair trade programs, prices arc for informational purposes only, the approximate nationally advertised values are for informational purposes only, a!! retail dealers are free to set their own resale prices, no employee or rcpresentative has authority to advise or suggest to a retail dealer any resale price, no favorable or unfavorable treatment wi!! be given to a dealer based on his selection of a resale price, and United does not intend to sanction any deceptive practices. The proposed cost list is a multi-column list containing a column for item description, item cost to the rctail dealer, gross margin price columns ranging from 15 percent to 45 percent which reflect the price a retail dealer would charge to obtain a specific gross margin on the sale of United's products, an "Approximate Kationally Advertised Value column, and a blank "Your Price" column.

On the basis of the facts submitted , you arc advised that the Commission is of the opinion that the proposed use of the "Confidential Dealer Cost List" would not vioJate Commission order No. C-2828. By direction of the Commission.

Second S"pplemR'nt.al Letter Rel.ative to Requst