FTC Federal Register notice, Dec. 17, 1970

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FEDERAL TRADE COMMISSION Rules and Regulations Paper table covers, -sheets, and pillow cases; exemption from certain packaging and labeling requirements_________________ 19076 Prohibited trade practices: Century Brick Corporation of America et al--------------------- 19073 General Nutrition Corp. et al— 19074 Pool City, Inc., and Norman Schulm an___________

19074 Shindler, Samuel, and Bugle Toy Manufacturing Co-------- 19075 Unique Industries, Inc., and Everett Novak______________ 19075 ' Washington Careers, Inc., et a l _____ ___________________ 19076 FISCAL SERVICE Notices London Guarantee and Accident Company of New York, and London Guarantee and Accident Company, Ltd., United States Branch; acceptable surety com pany on Federal bonds and termination of authority to qualify as acceptable reinsuring company on Federal bonds; cor rection ______________________ 19128 FOOD AND DRUG ADMINISTRATION Rules and Regulations Color certification;

deletion of obsolete material_______________ 19106 GENERAL SERVICES ADMINISTRATION Notices Federal Supply Service; solicita tionclosing----------------------------- 19146 HAZARDOUS MATERIALS REGULATIONS BOARD Proposed Rule Making Transportation of hazardous ma terials; phosphorus oxychloride in cargo tanks___ ._____________19121 HEALTH, EDUCATION, AND WELFARE DEPARTMENT See Food and Drug Administra tion.

(Continued on next page) 19069

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19070 CONTENTS INTERIOR DEPARTMENT See Land Management Bureau. INTERNAL REVENUE SERVICE Proposed Rule Making Increase in amount of deduction allowed for personal exemp­ tions ________

19112 Restriction on examination of chu rches______ ______________ 19115 INTERSTATE COMMERCE COMMISSION Rules and Regulations Practices of motor common car­ riers of household goods______ 19077 Proposed Rule Making Railroad companies:

Annual reports of Class I com­ panies (2 documents). 19125, 19126 Uniform system of accounts___ 19125 Notices Atchison, Topeka and Santa Fe Railway Co.; car distribution__ 19158 Investigation of railroad freight rate structure__________________ 19158 Motor carrier, broker, water car­ rier, and freight forwarder ap­ plications ____________________ 19147 Motor carrier transfer proceed­ ings ------- -------------------------- . . . 19159 Net investment;

railroad rate base___________________ ______ 19159 LABOR DEPARTMENT Proposed Rule Making On-the-job training program;

waiver provision__ ;___________19121 LAND MANAGEMENT BUREAU Rules and Regulations Public land orders :

Alaska _______________________ 19107 C alifornia________________ 19107 Colorado _____________________ 19107 M ontana______________

19107 Nebraska___ _________________ 19108 New Mexico_____ :___________ 19107 Oregon _______________________ 19108 Wyoming _____

19106 Notices Classification of lands for multi­ ple-use management:

Montana (3 documents) _ 19132, 19133 New Mexico (3 documents)__ 19136, 19137 Offering of lands for sale; Nevada (3 documents)__________19133, 19135 Opening of public lands : Arizona_______________________ 19128 Montana; correction___________ 19132 Proposed withdrawal and reserva­ tion of lands:

A rkansas_______ 19129 C alifornia___________________ 19130 Public sales:

California (2 documents)____ 19129 Idaho (4 documents)___ 19130,19131 Nevada (5 documents)__ 19133-19138 NATIONAL BUREAU OF STANDARDS Notices Voluntary product standards; ac­ tion on proposed withdrawal.. 19138 SECURITIES AND EXCHANGE COMMISSION Notices American General Bond Fund, Inc., and American General In­ surance Co.;

application for exemption __________________ 19145 SMALL BUSINESS ADMINISTRATION Rules and Regulations Size standards; definition of terms “annual sales“ and “annual receipts” ____________________ 19077 Proposed Rule Making Size standards; ammunition in­ dustry _______________________ 19124 Notices Managers, certain Disaster Branch Offices; rescission of delega­ tions of authority :

Oklahoma City, Okla__________19146 Tulsa, Okla___________________ 19146 Regent Investment Corp.; sur­ render of license to operate as small business investment cor­ poration _____________________ 19147 TENNESSEE VALLEY AUTHORITY Rules and Regulations Obtaining of approval for con­ struction in Tennessee River system and regulation of struc­ tures; procedures.____________19104 TRANSPORTATION DEPARTMENT See Coast Guard; Federal Aviation Administration; Hazardous Ma­ terials Regulations Board. TREASURY DEPARTMENT See Customs Bureau; Fiscal Serv­ ice; Internal Revenue Service.

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CONTENTS 19071 List of CFR Parts Affected The following numerical guide is a list of the parts of each title of the Code of Federal Regulations affected by documents published in today's issue. A cumulative list of parts affected, covering the current month to date, appears at the end of each issue beginning with the second issue of the month. A cumulative guide is published separately at the end of each month. The guide lists the parts and sections affected by documents published since January 1, 1970, and specifies how they are affected. 3 CFR E xecutive Orders:

Dec. 12, 191T (revoked in part by PLO 4974) ____________ _________ 19108 1461 (see PLO 4975)-------

19108 5 CFR 213________________- ____________19078 7 CFR 301— ___________________________19099 907____

19101 P roposed R u les:

1030__________________________— 19116 9 CFR 78_____

19102 P roposed R u les:

317_____________________________19118 320__—___________-_____________ 19118 10 CFR P roposed R u les:

2 __ ___ _________________19122 20_______________________ - ______19122 30____________ 19122

19122 5 0 -1 ____________________________19122 55____________________________ 19122 _ ____________ 19122 _

19122 T "

_________19122 150—I I —I __ —__I I _____________ 19122 12 CFR P roposed R u les:

226______________________________ — .__________ 19124 13 CFR 121_________________ P roposed R u les:

__________ 19077 121___ __________ — . _19124 14 CFR 71 (3 documents)--------------- 73___________________ 19103, 19104 _____ w.____19104 16 CFR 13 (6 documents)----------------- 501______________________________________ 19073-19076 ___________ 19076 18 CFR _____________________ _______________________ 19104 P roposed R u les:

201______________________________________ _______________________19124 _ _ 19124 ________•____ _ 19124 260 _ _________________________ 19124 21 CFR ___________19106 26 CFR P roposed R u les:

1__________________________ i ___ 19112 31______________________ _______ 19112 301 (2 documents)_________19112,19115 29 CFR P roposed R u les:

20— ___________^_______________ 19121 43 CFR P ublic L and Orders:

831 (revoked by PLO 4972)---------- 19107 2971 (see PLO 4969)_____________ 19107 4871 (corrected by PLO 4970)_____19107 4968 ______ ___________________ 19106 4969 _ 19107 ___________________________19107 ________________:_________ 19107 4972 _

19107 ___________ 19107 _____________ 19108 ________________________ — 19108 47 CFR 73____________________

19108 49 CFR 1056_____________________

19077 P roposed R u les:

173— ______ __________ _________19121 1201_______— ___________________19125 1241 (2 documents)________19125,19126

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19073 Rules and Regulations Title 16— COMMERCIAL PRACTICES Chapter I— Federal Trade Commission SUBCHAPTER A— PROCEDURES AND RULES OF PRACTICE [Docket No. C-1814] PART 13— PROHIBITED TRADE PRACTICES Century Brick Corporation of America et al.

Subpart—Advertising falsely or mis­ leadingly; § 13.15 Business status, ad­ vantages, or connections:

13.15-270 Size and extent; § 13.50 Dealer or seller assistance; § 13.60 Earnings and prof­ its;

§ 13.75 Free goods or services; § 13!85 Government approval, action, connection or standards: 13.85-27 Fed­ eral Housing Administration; § 13.185 Refunds, repairs and replacem ents;

1 13.260 Terms and conditions. Sub­ part—Misrepresenting oneself and goods—Business status, advantages or connections: § 13.1555 Size, extent or equipment; Misrepresenting oneself and goods—Goods: § 13.1608 Dealer or sell­ er assistance; § 13.1615 Earnings and profits; § 13.1625 Free goods or services;

§ 13.1645 Government standards or specifications;

§ 13.1725 Refunds;

§ 13.1760 Terms and conditions. Sub­ part—Securing agents or representatives by misrepresentation: § 13.2120 Dealer or seller assistance; § 13.2130 Earnings; § 13.2132 Exclusive territory. (Sec. 6, 38 Stat. 721; 15 U.S.C. 46. Interprets or applies sec. 5, 38 Stat. 719, as amended; 15 U.S.C. 45) [Cease and desist order, Cen­ tury Brick Corporation of America et al., Erie, Pa., Docket C-1814, Oct. 27, 1970] In the Matter o f Century Brick Corpora­ tion o f America, Century Bonded Products, Inc., Lancer Advertising Agency, Inc., First National Credit Corporation of America, Associated Leasing Corporation o f America, Corporations, and Colman J. Seman, David C. Seman, and Fredrick P. Seman, Individually and as Officers or Directors of Said Corporations Consent order requiring five affiliated Erie, Pa., distributors of simulated brick facing and seamless floor-covering mate­ rial to cease representing that investors in respondents’ dealerships would get ex­ clusive territories or be paid if territory was shared, that visits or training at re­ spondents’ home office would foe T>aid by respondents, that a refund would be granted in case dealership discontinued, that taping machines and other equip­ ment would be furnished free, that a dealer needs no prior skill, knowledge or training, that dealer will be furnished free sale literature or that products will be delivered to dealer’s job site, and that respondents’ products have been ap.proved by an agency of the Federal Government.

The order to cease and desist, includ­ ing further order requiring report of com­ pliance therewith, is as follows: It is ordered, That the respondents, Century Brick Corporation of America, Century Bonded Products, Inc., Lancer Advertising Agency, Inc., First National Credit Corporation of America, and As­ sociated Leasing Corporation of Amer­ ica, corporations, and their officers and directors, and Colman J. Seman and Fredrick P. Seman, individually and as officers or directors of said corporations, and respondents’ agents, representatives, and employees, directly or through any corporate or other device, in connection with the advertising, offering for sale, sale, or distribution of simulated brick facing, seamless floor-covering material, or any other product, or any franchise, license, or dealership with respect thereto, in commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from: if Representing, directly or by impli­ cation, that persons investing in respond­ ents’ franchises, dealerships, or other products will be granted an exclusive territory in which to locate and sell prod­ ucts purchased from' respondents unless respondents provide in all contracts or purchase agreements with dealers, fran­ chisees, or purchasers of respondents’ products, to whom such exclusive ter­ ritories have been granted, a description of the size and limits of the territories, and a statement that no other investor, dealer, franchisee, or purchaser of the same products will be granted the same territory or any part thereof and re­ spondents in all instances abide by such provisions.

2. Representing, directly or by impli­ cation, that a dealer will receive payment from respondents if additional dealers are permitted to do business within his designated territory, unless such pay­ ments are actually made by respondents. 3. Representing, directly or by impli­ cation, that any expenses, other than those actually paid by the respondents, for the dealer or his employee to visit and receive training at the respondents’ home office or any other place will be paid by the respondents.

4. Representing, directly or by impli­ cation, that a dealer will receive any re­ fund of the dealership fee or initial in­ vestment from the respondents if the dealer decides not to continue in said dealership, unless such refunds are ac­ tually made by the respondents. 5. Falsely representing, directly or by implication, that a representative of the respondents will be sent to assist a new dealer in the hiring and training of em­ ployees, securing job orders, establishing contacts and credit at local banks, or to assist or perform any other function or service not actually performed and readily available to such dealers. 6. Representing, directly or by impli­ cation, that respondents will provide, free of charge, the taping machines used in the installation of respondents’ products, unless such is actually provided on the represented terms and conditions; mis­ representing, in any manner, the ma­ chinery, equipment, or supplies furnished or made available to dealers or fran­ chisees or the cost thereof. 7. Representing, directly or by impli­ cation, that respondents will provide dealers with sales leads obtained through national advertising or any other means, unless respondents are able to provide to each dealer a significant number of bona fide prospective buyers for respond­ ents’ products.

8. Representing, directly or by impli­ cation, that respondents will provide the dealer with the names and addresses of other active dealers or that respondents have many successful dealers, unless re­ spondents have current information es­ tablishing the success of such dealers and provide such names and addresses as promised.

9. Representing, directly or by implica­ tion, that a dealer needs no skill, knowl­ edge, or prior training, or experience to operate a successful dealership, unless the prospective dealer is fully apprised of all facts and responsibilities of operating suCh a dealership.

10. Misrepresenting, in any manner, the assistance furnished or made avail­ able to the dealer.

11. Falsely representing that respond­ ents are building warehouses at various locations, operating or maintaining a marble-crushing plant or manufacturing and marketing prefabricated homes; or misrepresenting, in any manner, the size or kind of respondents’ business organization.

12. Representing, directly or by impli­ cation, that respondents will provide dealers with free sales literature, when in fact such sales literature is not free; or misrepresenting, in any manner, the cost of sales literature to dealers. 13.

-Representing, directly or by impli­ cation, that respondents’ products will be delivered to the dealer’s job site at any cost other than the actual one. 14. Falsely representing, directly or by implication, that respondents’ products are approved by the Federal Housing Ad­ ministration, the General Services Ad­ ministration, or any agency of the U.S. Government; or misrepresenting, in any manner, the acceptance or approval of respondents’ products.

15. Representing that dealers will earn any stated amount; or representing, in any manner, the past earnings of dealers, unless in fact, the past earnings repre­ sented are those of a substantial number of dealers and accurately reflect the av­ erage earnings of these dealers under circumstances similar to those of the FEDERAL REGISTER, V O L 35, NO. 244— THURSDAY, DECEMBER 17, 1970

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19074 dealer to whom the representation is made.

16. Representing, directly or by im­ plication, that dealers will be supplied with respondents’ products within a rea­ sonable time after they are ordered, un­ less such is actually the fact. 17. Failing to deliver a copy of this order to cease and desist to all present and future salesmen or other persons en­ gaged in the sale of respondents’ prod­ uct dealerships and failing to secure from each such salesman or other persons a signed statement acknowledging receipt of said order.

It is further ordered, That the respond­ ent corporations shall forthwith dis­ tribute a copy of this order to each of their operating divisions. It is further ordered, That respondents notify the Commission at least thirty (30) days prior to any proposed change in a corporate respondent, such as dis­ solution, assignment, or sale, resulting in the emergence of a successor corpora­ tion, the creation or dissolution of sub­ sidiaries or any other change in a cor­ poration which may affect compliance obligations arising out of the order. It is further ordered, That the respond­ ents herein shall, within sixty (60) days after service upon them of this order, file with the Commission a report, in writing, setting forth in detail the man­ ner and form in which they have com­ plied with this order.

Issued: October 27, 1970. By the Commission.

[ seal] J oseph W. Shea, Secretary.

[F.R. Doc. 70-16965; Filed, Dec. 16, 1970; 8:49 a.m.]