5416 Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Notices

184(b) of the CLA, 15 U.S.C. 1667c(b), as amended

by Title II, section 2605 of the Omnibus Act (to be

codified at 15 U.S.C. 1667c(c)) (‘‘Section 184(c) of

the revised CLA’’), as amended, or utilize § 213.7(f)

of revised Regulation M (to be codified at 12 CFR

213.7(f)), as amended. For television lease

advertisements, respondent may also utilize

§ 213.7(f) of revised Regulation M, as amended.

3The proposed order permits respondent to

comply with other requirements of existing

Regulation M, 12 CFR part 213, as amended, and

the CLA, 15 U.S.C. 1667–1667e, as amended, by

utilizing revised Regulation M, as amended.

requires respondent in any lease

advertisement to state that a specific

lease of any property at specific

amounts or terms is available only if the

lessor usually and customarily leases or

will lease such property at those

amounts or terms, as required by

Regulation M.

The proposed order also prohibits

respondent Herb Gordon Auto from

failing to comply in any other respect

with the TILA and Regulation Z and the

CLA and Regulation M.3

The proposed order defines the term

‘‘clearly and conspicuously’’ for

respondent’s advertisements in all

media. In a television or videotaped

advertisement, the required disclosures

made in the audio portion of the

advertisement must be in a volume,

cadence and location, and for a

duration, as to be readily noticeable,

hearable and comprehensible to an

ordinary consumer. The required

disclosures made in the video portion of

the advertisement must appear on the

screen in a size, shade, contrast,

prominence and location, and for a

duration, as to be readily noticeable,

readable and comprehensible to an

ordinary consumer. In a radio

advertisement, the required disclosures

must be delivered in a volume, cadence

and location, and for a duration, as to

be readily noticeable, hearable and

comprehensible to an ordinary

consumer. In a print advertisement

(including but not limited to mail

solicitations), the required disclosures

must appear in a size, shade, contrast,

prominence and location as to be

readily noticeable, readable and

comprehensible to an ordinary

consumer. Additionally, nothing

contrary to, inconsistent with or in

mitigation of the required disclosures

can be used in any advertisement.

The purpose of this analysis is to

facilitate public comment on the

proposed order. It is not intended to

constitute an official interpretation of

the agreement and proposed order or to

modify in any way their terms.

Donald S. Clark,

Secretary.

[FR Doc. 97–2807 Filed 2–4–97; 8:45 am]

BILLING CODE 6750–01–P

[File No. 952–3009]

Huling Bros. Chevrolet, Inc.; Huling

Buick, Inc.; Huling Bros. Chrysler/

Plymouth, Inc.; Analysis to Aid Public

Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

SUMMARY: In settlement of alleged

violations of federal law prohibiting

unfair or deceptive acts or practices and

unfair methods of competition, this

consent agreement, accepted subject to

final Commission approval, would

prohibit, among other things, the

Seattle-based automobile dealerships

from misrepresenting financing terms

and would require them to comply with

federal laws mandating accurate

disclosure of the annual percentage rate

and monthly payments in financed

offers and clear and conspicuous

disclosure of major automobile deal

terms. They also agreed not to advertise

terms that are not actually available to

consumers. The Commission had

alleged that Huling Bros.’ advertising

understated the true annual percentage

rate (‘‘APR’’) for their financed purchase

deals or failed to state the APR at all,

even though a triggering term appeared

in the ads, defeating the purpose of the

APR as a means for assisting consumers

in comparison shopping.

DATES: Comments must be received on

or before April 7, 1997.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., NW.,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Charles Harwood, Federal Trade

Commission, Seattle Regional Office,

2896 Federal Building, 915 Second

Ave., Seattle, WA 98174 (206) 220–

6350.

George Zweibel, Federal Trade

Commission, Seattle Regional Office,

2896 Federal Building, 915 Second

Ave., Seattle, WA 98174. (206) 220–

4485

SUPPLEMENTARY INFORMATION: Pursuant

to section 6(f) of the Federal Trade

Commission Act, 38 Stat. 721, 15 U.S.C.

46, and § 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 cease 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 sixty (60) days. The following

Analysis to Aid Public Comment

describes the terms of the consent

agreement, and the allegations in the

accompanying complaint. An electronic

copy of the full text of the consent

agreement package can be obtained from

the Commission Actions section of the

FTC Home Page (for January 23, 1997),

on the World Wide Web, at ‘‘http://

www.ftc.gov/os/actions/htm.’’ A paper

copy can be obtained from the FTC

Public Reference Room, Room H–130,

Sixth Street and Pennsylvania Avenue,

NW., Washington, DC 20580, either in

person or by calling (202) 326–3627.

Public comment is invited. 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

§ 4.9(b)(6)(ii) of the Commission’s rules

of practice (16 CFR 4.9(b)(6)(ii)).

Analysis of Proposed Consent Order to

Aid Public Comment

The Federal Trade Commission has

accepted an agreement to a proposed

consent order from respondents Huling

Bros. Chevrolet, Inc., Huling Buick, Inc.,

and Huling Bros. Chrysler/Plymouth,

Inc.

The proposed consent order has been

placed on the public record for sixty

(60) days for reception of comments by

interested persons. Comments received

during this period will become part of

the public record. After sixty (60) days,

the Commission will again review the

agreement and the comments received

and will decide whether it should

withdraw from the agreement or make

final the agreement’s proposed order.

The complaint alleges that respondent

Huling Bros. Chevrolet has

disseminated, or caused to be

disseminated, advertisements that state

annual percentage rates as well as

monthly payment amounts and vehicle

sales prices, but in many instances

understate the annual percentage rates

by more than 1/4 of 1 percentage point,

in violation of the Truth in Lending Act

(‘‘TILA’’) and §§ 226.22(a) and 226.24(b)

and (c) of Regulation Z, and have also

engaged in an unfair or deceptive act or

practice, in violation of section 5(a) of

the Federal Trade Commission Act

(‘‘FTC Act’’).

The complaint also alleges that

respondents Huling Bros. Chevrolet,

Huling Buick, and Huling Bros.

Chrysler/Plymouth have disseminated,

or caused to be disseminated,

advertisements that state the amount or

percentage of any downpayment, the

number of payments or period of

repayment, or the amount of any

payment, but fail to state the annual

percentage rate, in violation of the TILA

and § 226.24(c) of Regulation Z.

The complaint also alleges that

respondents Huling Bros. Chevrolet and

Huling Buick have disseminated, or
Federal Register / Vol. 62, No. 24 / Wednesday, February 5, 1997 / Notices 5417

caused to be disseminated,

advertisements that state conflicting

monthly payment amounts for the same

transaction, thereby failing to disclose

accurately the terms of repayment, in

violation of the TILA and § 226.24(c) of

Regulation Z, and have also engaged in

an unfair or deceptive act or practice, in

violation of section 5(a) of the FTC Act.

The complaint also alleges that

respondents Huling Bros. Chevrolet,

Huling Buick, and Huling Bros.

Chrysler/Plymouth have disseminated,

or caused to be disseminated,

advertisements that state terms of

repayment (such as monthly payment

amounts) or annual percentage rates that

are not actually arranged or offered by

respondents, in violation of the TILA

and § 226.24(a) of Regulation Z, and

have also engaged in an unfair or

deceptive act or practice, in violation of

section 5(a) of the FTC Act.

The complaint also alleges that the

respondents have disseminated, or

caused to be disseminated,

advertisements offering new motor

vehicles that state monthly payment

amounts, sale prices, and rebates, and

which represent that ‘‘College

Graduate’’ or ‘‘1st Time Buyer’’ rebates

are available in conjunction with a

payment plan in which monthly

payments are at one amount for the first

12 months and are approximately

double that amount thereafter (‘‘Half

Payment Program’). According to the

complaint, College Graduate and 1st

Time Buyer rebates are not available to

purchasers who choose the Half

Payment Program, and the respondents

have therefore engaged in an unfair or

deceptive act or practice, in violation of

section 5(a) of the FTC Act.

The complaint also alleges that

respondent Huling Buick has

disseminated, or caused to be

disseminated, advertisements that state

a rate of a finance charge without stating

that rate as an ‘‘annual percentage rate,’’

using that term or the abbreviation

‘‘APR,’’ in violation of the TILA and

§ 226.24(b) of Regulation Z.

The proposed order prohibits

respondents Huling Bros. Chevrolet,

Huling Buick, and Huling Bros.

Chrysler/Plymouth, in any

advertisement to promote any extension

of consumer credit, from

misrepresenting in any manner, directly

or by implication, the terms of financing

the purchase of a vehicle, including but

not limited to the annual percentage

rate, the amount of any periodic

payment amount, or the availability of

any advertised credit term; the sale

price; or the availability of any

advertised rebate.

The proposed order also prohibits the

respondents, in any advertisement to

promote any extension of consumer

credit, from stating a rate of finance

charge without stating the rate as an

‘‘annual percentage rate,’’ using that

term or the abbreviation ‘‘APR,’’ and

from failing to calculate the rate in

accordance with Regulation Z.

The proposed order also requires the

respondents, in any advertisement to

promote any extension of consumer

credit, whenever the amount or

percentage of any downpayment, the

number of payments or period of

repayment, the amount of any payment,

or the amount of any finance charge is

stated, to accurately, clearly and

conspicuously, state all of the terms

required by Regulation Z, as follows:

The amount or percentage of the

downpayment, the terms of repayment,

and the annual percentage rate. The

proposed order also requires the

respondents to state only those terms

that actually are or will be arranged or

offered by the creditor, in any credit

advertisement.

The proposed order also requires the

respondents, in any advertisement to

promote any extension of consumer

credit, to comply in every other respect

with the TILA, as amended, and with

Regulation Z, as amended.

The purpose of this analysis is to

facilitate public comment on the

proposed order. It is not intended to

constitute an official interpretation of

the agreement and proposed order or to

modify in any way their terms.

Donald S. Clark,

Secretary.

[FR Doc. 97–2806 Filed 2–4–97; 8:45 am]

BILLING CODE 6750–01–P

[File No. 952–3041]

Nationwide Syndications, Inc.; Thomas

W. Karon; Analysis to Aid Public

Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

SUMMARY: In settlement of alleged

violations of federal law prohibiting

unfair or deceptive acts or practices and

unfair methods of competition, this

consent agreement, accepted subject to

final Commission approval, would

prohibit, among other things, the

Barrington, Illinois-based company and

its president from misrepresenting that

its NightSafe Glasses make driving at

night safer, and from using the name

‘‘NightSafe,’’ or any other name that

would imply that such a product makes

night driving safe or safer. Nationwide

and Karon also agreed to pay $125,000

in consumer redress, and to provide the

Commission with the names of

consumers who purchased NightSafe

glasses, so the Commission may provide

them with a notice that wearing

NightSafe glasses while driving at night

may, in fact, be unsafe. The complaint

accompanying the consent agreement

alleges that Nationwide and Karon made

false and unsubstantiated claims

regarding the benefits of NightSafe

Glasses, which purportedly make night

driving safer by improving night vision.

DATES: Comments must be received on

or before April 7, 1997.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., NW.,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: C.

Steven Baker, Federal Trade

Commission, Chicago Regional Office,

55 East Monroe St., Suite 1860, Chicago,

IL 60603. (312) 353–8156. Karen D.

Dodge, Federal Trade Commission,

Chicago Regional Office, 55 East Monroe

St., Suite 1860, Chicago, IL 60603. (312)

353–8156.

SUPPLEMENTARY INFORMATION: Pursuant

to section 6(f) of the Federal Trade

Commission Act, 38 Stat. 721, 15 U.S.C.

46, and § 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 cease 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 sixty (60) days. The following

Analysis to Aid Public Comment

describes the terms of the consent

agreement, and the allegations in the

accompanying complaint. An electronic

copy of the full text of the consent

agreement package can be obtained from

the Commission Actions section of the

FTC Home Page (for January 24, 1997),

on the World Wide Web, at ‘‘http://

www.ftc.gov/os/actions/htm.’’ A paper

copy can be obtained from the FTC

Public Reference Room, Room H–130,

Sixth Street and Pennsylvania Avenue,

NW., Washington, DC 20580, either in

person or by calling (202) 326–3627.

Public comment is invited. 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

§ 4.9(b)(6)(ii) of the Commission’s rules

of practice (16 CFR 4.9(b)(6)(ii)).

Analysis of the Proposed Consent Order

to Aid Public Comment

The Federal Trade Commission has

accepted an agreement to a proposed