Zayre Corp

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IN THE MATTER OF ZAYRE CORPORATION MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Docket C- 908. Decision, Oct. 27, 1977-Modifying Order, Oct. 8. 1980 This order reopens the proceeding and modifies the order issued against the firm on October 27. 1977. 42 FR 60138, 90 F. C. 329, in connection with the availabilty and pricing of advertised specials. In conformity with the modification allowed on Apri 9 , 19BO to the order issued against Pay N Pak Stores. Inc., Docket C-2780, the order requires only a limited diclosure of availbilty where closeout merchandise is involved (merchandise whose entire inventory is being disposed of at a reduced price and which is Dot planned to be restoked).

ORDER REOPENING THE PROCEEDING AND MODIFYING DECISION AND ORDER On October 27, 1977, the Commission issued a Decision and Order against Zayre Corp. in connection with the availability and pricing of advertised specials. The Order includes a provision to prevent Zayre from representing in its advertisements that merchandise is available at its stores at any price unless each advertised item is readily available for sale at or below the advertised price and that each advertised item is properly marked. There are certain exceptions to the availability and pricing requirements of the Order. On July 18, 1980, Zayre Corp. petitioned the Commission pursuant to Section 5(b) of the Federal Trade Commission Act, as amended on May 28, 1980, and Section 2.51 of the Commission s Organization Procedures and Rules of Practice, 16 C. R. 2. , to reopen the proceeding for the limited purpose of modifying the consent order in conformity with the modification allowed on April 9, 1980, to the Order issued against Pay'N Pak Stores, Inc., Docket C-2780, dealing with "closeout" merchandise. On August 15, 1980, Zayre fied supplemental papers with respect to its petition. Closeout" merchandise was defined in the modified Pay N Pak order as merchandise whose entire inventory is being disposed of at a reduced price and which is not planned to be restocked. Zayre proposal embodies the same definition. It would, as the Pay N Pak order, require only a limited disclosure of availability where closeout merchandise is involved.

After due consideration, the Commission believes that the public interest wil be served by modifying the Zayre Corp. Decision and Modifying Order 96 F.

Order to allow a general availability limitation on "closeout" merchandise.

It is ordered, That the proceeding is reopened. It is further ordered, That the Zayre Corp. Decision and Order issued on October 27, 1977, is modified as follows: The following paragraph is to be inserted after the first subparagraph in Section 2(b) of the Order which concludes with the words rain check.

For closeout items, in instances where an advertisement is for more than one store the quantity limitation will be deemed to be complied with by disclosures that the items are closeout items and that the ' quantities are limited to stock Dn hand' Closeout designation is only appropriate for items where Zayre both is disposing of the entire inventory of an item at a reduced price and is not planning on restocking the item.

605 Interlocutory Order