FTC Federal Register notice, Dec. 4, 1978, 43 FR 56653

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[6750-01-M] Title 16— Commercial Practices CHAPTER I— FEDERAL TRADE COMMISSION [Docket No. C-2934] PART 13— PROHIBITED TRADE PRAC­ TICES, AND AFFIRMATIVE CORREC* TIVE ACTIONS Bede Aircraft, Inc», et al. AGENCY: Federal Trade Commission. ACTION: Final order.

SUMMARY: In settlement of alleged violations of Federal law prohibiting unfair acts and practices and unfair methods of competition, this consent FEDERAL REGISTER, VOL 43, NO. 233— MONDAY, DECEMBER 4, 1978

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56654 RULES AND REGULATIONS agreement, among other things, re­ quires a Washington, D.C. manufac­ turer and marketer of aircraft and re­ lated products, and its subsidiaries, to provide and administer as prescribed a redress fund of approximately $9,000,000 for consumers who pur­ chased or made deposits on its prod­ ucts. The firm would be required to cease misrepresenting the availability, performance, reliability and safety of its aircraft; or using any other unfair or deceptive act or practice in the ad­ vertising and sale of its products. Addi­ tionally, until such time that existing obligations are satisfied, the order would require that all of the firm’s stock be placed in the hands of an ap­ proved trustee who would oversee its operations and invoke the provisions of the Federal Bankruptcy Act, should it prove necessary.

DATES: Complaint and order issued October 26, 1978.1 FOR FURTHER INFORMATION CONTACT:

Paul C. Daw, Regional Directôr, 6R, Denver Regional Office, Federal Trade Commission, Suite 2900, 1405 Curtis St., Denver, Colo. 80202. (303) 837-2271.

SUPPLEMENTARY INFORMATION: On Monday, June 19, 1978, there was published in the F e d e r a l R e g is t e r , 43 FR 26324, a proposed consent agree­ ment with analysis In the Matter of Bede Aircraft, Inc., a corporation; Bede General Corporation, a corpora­ tion; Bede Wing, Inc., a corporation; and James R. Bede, individually and as an officer, director and stockholder of said corporations, for the purpose of soliciting public comment. Interest­ ed parties were given sixty (60) days in which to submit comments, sugges­ tions, or objections regarding the pro­ posed form of order.

No comments having been received, the Commission has ordered the issu­ ance of the complaint in the form con­ templated by the agreement, made its jurisdictional findings and entered its order to cease and desist, as set forth in the proposed consent agreement, in disposition of this proceeding. The prohibited trade practices and/ or corrective actions, as codified under 16 CFR Part 13, are as follows: Sub­ part-Advertising Falsely or Mislead­ ingly: § 13.10 Advertising falsely or misleadingly; 13.10-1 Availability of merchandise and/or facilities; § 13.15 Business status, advantages or connec­ tion; 13.15-20 Business methods and policies; 13.15-30 Connection or ar­ rangements with others; 13.15-35 Con­ tracts and obligations; 13.15-65 Finan­ cial conditions;

13.15-100 History;

’Copies of the Complaint and the Deci­ sion and Order filed with the original docu­ ment.

13.15- 105 Identity; 13.15-195 Nature; 13.15- 250 Qualifications and abilities; 13.15- 255 Reputation, success, or standing; 13.15-275 Stock, product, or service; § 13.35 Condition of goods; § 13.40 Conditions of manufacture; 13.40-20 Law compliance; § 13.42 Con­ nection of others with goods; § 13.73 Formal regulatory and statutory re­ quirements; § 13.85 Government ap­ proval, action, connection or stand­ ards; 13.85-60 Standards, specifica­ tions, or source; § 13.90 History of product or offering; § 13.142 Oper­ ation; § 13.155 Prices; 13.155-5 Addi­ tional charges unmentioned; 13.155-55 Government requirements; 13.155-75 Product or quantity covered; 13.155-93 Special or test offers; 13.155-95 Terms and conditions; § 13.160 Promotional sales plans; § 13.170 Qualities or prop­ erties of product or service; § 13.175 Quality of product or service; § 13.180 Quantity; 13.180-30 In stock; §13.185 Refunds, repairs, and replacements; § 13.190 Results;

§ 13.195 Safety;.

13.195-60 Product; § 13.205 Scientific or other relevant facts; § 13.210 Scien­ tific tests; § 13.245 Specifications or standards conformance; § 13.247 Stat­ ues and regulations; § 13.250 success, use or standing; § 13.260 Terms and conditions; §13.275 Undertakings, in general. Subpart—Corrective Actions and/or Requirements: § 13.533 Correc­ tive actions and/or requirements;

13.533- 20 Disclosures; 13.533-35 Em­ ployment of independent agencies; 13.533- 37 Formal regulatory and/or statutory requirements;

13.533-45 Maintain records; 13.533-55 Refunds, rebates, and/or credits. Subpart—De­ laying or Withholding Corrections, Adjustments or Action Owed: § 13.675 Delaying or withholding corrections, adjustments or action owed; § 13.677 Delaying or failing to deliver goods or provide services or facilities. Subpart— Failing To Maintain Records: § 13.1051 Failing to maintain records; 13.1051-30 Formal regulatory and/or statutory requirements.

Subpart—Furnishing Means and Instrumentalities of Mis­ representation or Deception: § 13.1055 Furnishing means and instrumental­ ities of misrepresentation or decep­ tion. Subpart—Misrepresenting One­ self and Goods—Business Status, Ad­ vantages or Connections: § 13.1370 Business methods, policies, and prac­ tices; § 13.1395 Connections and ar­ rangements with others; § 13.1415 Fi­ nancial conditions; § 13.1435 History; § 13.1440 Identity; § 13.1490 Nature; § 13.1515 Organization and operation; § 13.1535 Qualifications;

§ 13.1540 Reputation, success or standing;

§ 13.1560 Stock, product or service.— Goods: § 13.1572 Availability of adver­ tised merchandise and/or facilities; § 13.1595 Condition of goods; § 13.1600 Conditions of manufacture and costs; § 13.1623 Formal regulatory and statu­ tory requirements; § 13.1635 Govern­ ment inspection; § 13.1645 Govern­ ment standards or specifications;

§ 13.1650 History of product; § 13.1675 Law or legal requirements; § 13.1680 Manufacture or preparation; § 13.1710 Qualities or properties; § 13.1715 Qual­ ity; §13.1720 Quantity; § 13.1725 Re­ funds; § 13.1730 Results; § 13.1740 Sci­ entific or other relevant facts;

§ 13,1755 Success, use or standing; § 13.1760 Terms and conditions;

§ 13.1762 Tests, purported; § 13.1765 Undertakings, in general.—Prices:

§ 13.1778 Additional costs unmen­ tioned; § 13.1815 Government require­ ments; § 13.1823 Terms and condi­ tions.—Promotional Sales Plans:

§ 13.1830 Promotional sales plans: Sub­ part—Neglecting, Unfairly or Decep­ tively, To Make. Material Disclosure: § 13.1850 Content; § 13.1852 Formal regulatory and statutory require­ ments; § 13.1854 History of products; § 13.1863 Limitations of product;

§ 13.1875 Non-standard character;

§.13.1882 Prices 13.1882-10 Additional prices unmentioned; § 13.1885 Quali­ ties or properties; § 13.1886 Quality, grade or type; § 13.1888 Respondent’s interest; § 13.1890 Safety; § 13.1895 Sci­ entific or other relevant facts;

§ 13.1905 Terms and conditions. Subpart—Securing Orders By Deception; § 13.2170 Securing orders by deception. (Sec. 6, 38 Stat. 721; (15 U.S.C. 46), Inter­ prets or applies sec. 5, 38 Stat. 719, as amended; (15 U.S.C. 45).) Carol M. Thomas, Secretary.

[FR Doc. 78-33748 Filed 12-1-78; 8:45 am]