FTC Federal Register notice, Dec. 3, 1971, 36 FR 23057
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No. 233— Pt. I- FEDERAL REGISTER, VOL. 36, NO. 233— FRIDAY, DECEMBER 3, 1971
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23058 PART 503— STATEMENTS OF GEN ERAL POLICY OR INTERPRETATION Withholding Packaging With Retail Sale Price Representations The Federal Trade Commission issued final regulations under Part 502 of Sub chapter E covering the use of “centsoff”, “introductory offer” and “economy size” representations imprinted on pack aged or labeled consumer commodities. These regulations were issued pursuant to section 5(c) of the Fair Packaging and Labeling Act and published on June 30, 1971 (36 F.R. 12284). Since they are necessarily general in * application,' the Commission will entertain requests for formal rulings and statements of policy or interpretation as the need arises.
A request for interpretation and pol icy guidance has been received with reference to §§ 502.100(c), 502.101(d) and 502.102(c) of the regulations, all of which prohibit the packager or labeler from making available packages marked with “ cents-off”, “introductory offer” and “economy size” representations when it is known that such packages will be used as instrumentalities for deception. Accordingly, pursuant to the authority contained in the Fair Packaging and Labeling Act (sections 5, 6, 80 Stat. 1298, 1299, 1300; 15 U.S.C. 1454, 1455); Part 503 of Subchapter E is amended by add ing § 503.6 and § 503.1 is amended to read as follows:
§ 503.1 Interpretations.
The regulations in Parts 500, 501, and 502 of this chapter are necessarily gen eral in application and requests for for mal rulings, statements of policy or in terpretations shall be addressed to the Secretary of the Commission for con sideration. Statements of policy or inter pretations binding on the Commission will be published in the F ederal R eg ist e r. However, technical questions not involving policy consideration may be answered by the staff.
§ 503.6 Packagers’ duty to withhold availability o f packages imprinted with retail sale price representations. To clarify the requirements, under Part 502 of the regulations in this chap ter, that a packager or labeler will not make packages marked with retail sale price representations available in any circumstance where he knows or should have reason to know that it will be used as an instrumentality for deception or for frustration of value comparison, the following represents the opinions of the Commission:
(a) Details of a plan to provide special packaging or special package sizes bear ing retail sale price representations should contain the condition that cus tomers will not be provided with such packages unless they resell the package at a price which fully passes on to the purchasers the represented savings or sale price advantage.
(b) A packager or labeler who, in good faith, takes reasonable and prudent measures to verify the performance of RULES AND REGULATIONS his customers will be deemed to have satisfied his obligation under the regu lations. If the packager has taken such steps, the fact that a particular customer has failed to resell the packages at a price which fully passes on to the pur chaser the represented savings or sale price advantage shall not alone place a seller in violation of the regulations. (c) Any packager or labeler who de termines that a customer does not intend to fulfill or has not fulfilled the condi tions of an offer should immediately re frain from further sale under that offer to the customer. In situations where proper fulfillment of the conditions of an offer are in question, the Commission will resolve the issue after appropriate investigation of the facts submitted. By direction of the Commission dated December 1, 1971.
[ se a l] C h arles A. T o b in , Secretary.
[FR Doc.71—17762 Filed 12-1-71:3:56 pm]