Stuart Scheftel President Initial Contact Letter April 28, 1977

Stuart Scheftel
President
Initial Contact Letter
April 28, 1977
Dear Chairman Pertschuk:

I am writing to request an opportunity to: meet with you, or your representative, concerning a matter of importance to Fonawin Corporation, of which I am the major stockholder. Fonawin is engaged in the business of operating a telephone announcement service in New York City. A person calling Fonawin’s number receives a recorded announcement containing late horse racing results on races for which New York City’s Offtrack Betting Corporation offers wagering. This service has been developed in conjunction with OTB, a corporation of the City of New York, and the Fonawin number is posted in the various OTB betting parlors.

Fonawin realizes revenues by carrying a brief advertising message as part of each recorded announcement.

In July 1976, the Federal Communications Commission issued a declaratory ruling that the carriage of cigarette advertising in connection with the non-toll, intrastate aspect of Fonawin’s announcement service would not contravene Section 6 of the Public Health Cigarette Smoking Act of 1969. A copy of the FCC’s ruling is attached.

While the FCC ruling has cleared the way for cigarette advertising in connection with Fonawin’s purely local announcement service, it does not address the question of whether there are any related requirements in connection with such advertising which may arise from statute, rule or policy under jurisdiction of the Federal Trade Commission. Specifically, I have reference to the so-called “warning statement” to the effect that cigarette smoking may be harmful to health.

In soliciting advertising business from cigarette companies, Fonawin has noted certain uncertainty as to what your Commission would require with respect to Fonawin’s carriage of cigarette ' advertisements. Fonawin’s objective is to comply with all applicable legal requirements; at the same time, we hope to avoid having our business disrupted by uncertainty as to applicable government requirements. Accordingly, I seek a meeting in order that this matter may be clarified.

Your office may contact me at the above number with respect to a mutually convenient time for a meeting in the offices of the Commission. I shall endeavor to make myself available at your

convenience.
Very truly yours,
/s/ Stuart Scheftel

P.S. Fonawin also operates the Weather Service for the entire