[Federal Register Volume 65, Number 119 (Tuesday, June 20, 2000)]
[Notices]
[Pages 38281-38282]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15471]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

[File No. 992 3202]


Riley Manufactured Homes, Inc., et al.; Analysis To Aid Public 
Comment

AGENCY: Federal Trade Commission.

ACTION:  Proposed consent agreement.

-----------------------------------------------------------------------

SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint that accompanies the consent agreement and the terms of the 
consent order--embodied in the consent agreement--that would settle 
these allegations.

DATES: Comments must be received on or before July 13, 2000.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 600 Pennsylvania Ave., NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: John Hallerud or C. Steven Baker, 
Federal Trade Commission, Midwest Region, 55 E. Monroe St., Suite 1860, 
Chicago, IL 60603-5701. (312) 960-5633.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and section 2.34 of 
the Commission's Rules of Practice (16 CFR 2.34), notice is hereby 
given that the above-captioned consent agreement containing a consent 
order to crease and desist, having been filed with and accepted, 
subject to final approval, by the Commission, has been placed on the 
public record for a period of thirty (30) days. The following Analysis 
to Aid Public Comment describes the terms of the consent agreement, and 
the allegations in the complaint. An electronic copy of the full text 
of the consent agreement package can be obtained from the FTC Home Page 
(for June 13, 2000), on the World Wide Web, at ``http://www.ftc.gov/
ftc.formal.htm.'' A paper copy can be obtained from the FTC Public 
Reference Room, Room H-130, 600 Pennsylvania Avenue, NW., Washington DC 
20580, either in person or by calling (202) 326-3627.
    Public comment is invited. Comments should be directed to: FTC/
Office of the Secretary, Room 159, 600 Pennsylvania Ave., NW., 
Washington, DC 20580. Two paper copies of each comment should be filed, 
and should be accompanied, if possible, by a 3\1/2\ inch diskette 
containing an electronic copy of the comment. Such comments or views 
will be considered by the Commission and will be available for 
inspection and copying at its principal office in accordance with 
section 4.9(b)(6)(ii) of the Commission's Rules of Practice (16 CFR 
4.9(b)(6)(ii)).

Analysis of Proposes Consent Order To Aid Public Comments

    The Federal Trade Commssion has accepted an agreement to a proposed 
consent order from Riley Manufactured Homes, Inc., and its president, 
Dennis Ohnstad (``respondents'').
    The proposed consent order has been placed on the public record for 
thirty (30) days for reception of comments by interested persons. 
Comments received during this period will become part of the public 
record. After thirty (30) days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement and take other appropriate action or make 
final the agreement's proposed order.
    The Commission's complaint alleges that respondents' credit 
advertisements violated section 144 of the Truth in Lending Act, 
(``TILA''), 15 U.S.C. 1664, and Section 226.24 of Regulation Z, 12 CFR 
226.24. Congress established statutory disclosure requirements for 
credit advertising under the TILA and directed the Federal Reserve 
Board (``Board'') to promulgate a regulation implementing such 
statute--Regulation Z. See 15 U.S.C. 1601-1667e; 12 CFR part 226.
    According to the complaint, respondents' advertisements stated a 
rate of finance charge for financing the pubchase of manufactured homes 
but did not properly disclose the rate as an annual percentage rate, as 
required by Regulation Z. The complaint also alleges that respondents' 
credit advertisements stated a monthly payment amount or other 
``triggering'' terms (the amount or percentage of any downpayment; the 
number of payments or the period of repayment; the amount of any 
payment;

[[Page 38282]]

or the amount of any finance charge), but failed to disclose the 
following information required by RegulationZ: the amount or percentage 
of the downpayment; the terms of repayment; and the annual percentage 
rate.
    The proposed consent order contains provisions designed to remedy 
the violations charged and to prevent the proposed respondents from 
engaging in similar acts in the future. In particular, Part I of the 
proposed order prohibits respondents from: (A) Stating a rate of 
finance charge without disclosing the APR; (B) using triggering terms 
without providing the additional disclosures required by Regulation Z; 
and (C) failing to comply with TILA and Regulation Z. Part II of the 
proposed order requires respondents to maintain and make available 
records of compliance for five years. Part III requires respondents to 
distribute copies of the order to company personnel. Part IV requires 
respondents to notify the Commission of changes in corporate structure 
that may affect acompliance obligations under the proposed order. Part 
V requires the individual respondent to notify the Commission of 
changes in his employment status for three years. Part VI requires 
respondents to file compliance reports. Finally, Part VII sunsets the 
proposed order after twenty years.
    The purpose of this analysis is to facilitate public comments on 
the proposed order, and it is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way their terms.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 00-15471 Filed 6-19-00; 8:45 am]
BILLING CODE 6750-01-M