Love Television & Stereo Rental, Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF LOVE TELEVISION & STEREO RENTAL, INC;;. ET AL. Docket C2245. Interlocutory Order, Jan. 28, 1973. Order granting in part respondents’ petition for modification of consent order conditional upon respondents’ submitting a signed agreement containing a consent order setting forth the language set out in the Commission’s order ruling on the petition. ORDER IN RESPONSE TO PETITION FOR MODIFICATION Pursuant to Section 3.72(b) (2) of the Rules of Practice, on August 7, 1972, respondents filed a petition for modification of the consent order in this matter requesting that the words “or Order 82 F.T.C.

for any specified amount, payment or period of time’ be deleted ‘from Paragraph One ofthe ordér. Respondents contend that it was contemplated by the parties that the requirements of Paragraph One of the order would be applicable only when respondents advertised or represented that their products could be rented or purchased at “a discount price, or an inexpensive price, or an advantageous price.”

The Commission does not agree, however, that its decision to accept the proferred consent order. contemplated that the order disclosures should be limited to situations where respondents represented their merchandise could be purchased or rented at discount, inexpensive or advantageous prices. It was also the in- _tent of the Commission to require the disclosures provided in Paragraph One whenever, in connection with respondents’ ‘“‘rentto-buy” plan or similar installment purchase plan, or any rental plan, a specified amount, payment or period of time is represented. The Commission notes, however, that the order as presently worded could be construed to apply to business transactions not falling within such plans. Accordingly, It is ordered, That respondents’ petition herein should be granted in part, providing respondents submit within 20 days a signed agreement containing a consent order which contains a new “paragraph one” revised as follows: 1. Representing in any advertisement, directly or by implication, or in any oral statements made to a customer, that an individual can rent or purchase any of respondents’ merchandise (i) at a discount price, or an inexpensive price, or an advantageous price, or a special price, or (ii) for any specified amount, payment or period of time in regard to any “‘rent-to-buy” plan or similar installment purchase plan, or in regard to any rental plan,—unless there is disclosed in every instance in a clear and meaningful way, the average prevailing retail price of the merchandise or comparable merchandise using the term “average retail price” together with either:

(a) the total dollar cost to the individual of purchasing the same merchandise under respondents’ “rent-tobuy” plan, using the term “our total purchase price;” or (b) the total charge for renting the same merchandise for twelve months using the term “rent for one year.”

Complaint