| **Analysis of Proposed Consent Order     to Aid Public Comment**

The Federal Trade Commission has accepted an agreement, subject to final approval, to a    proposed consent order from respondent The Stanley Works.

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 and take other appropriate action or make final the agreement’s    proposed order.

This matter concerns advertising, marking, packaging, labeling, and promotional    practices related to the sale of mechanics tools. The Commission’s complaint charges    that respondent misrepresented that certain of its mechanics tools were all or virtually    all made in the United States when, in truth and in fact, a significant proportion of    their content was of foreign origin. 

The proposed consent order contains a provision that is designed to remedy the charges    and to prevent the respondent from engaging in similar acts and practices in the future.    Part I of the proposed order prohibits the respondent from misrepresenting the extent to    which its mechanics tools are made in the United States. The order defines mechanics tools    as professional grade hand tools (other than carpentry tools) used by consumers or    professionals in the assembly, repair, or maintenance of machinery or vehicles, or for    other purposes. Such tools include, but are not limited to, wrenches, ratchets, sockets,    and chisels. The proposed order would allow respondent to represent that such mechanics    tools are made in the United States as long as all, or virtually all, of the components of    the mechanics tools are of U.S. origin and all, or virtually all, of the labor in    manufacturing them is performed in the United States.

The proposed consent order additionally provides that the order shall not apply to the    marking of mechanics tools or components of mechanics tools forged, machined, or cast    before the date that the complaint and order become final.

Part II of the proposed order requires the respondent to maintain materials relied upon    in disseminating any representation covered by the order. Part III of the proposed order    requires the respondent to distribute copies of the order to certain company officials and    employees. Part IV of the proposed order requires the respondent to notify the Commission    of any change in the corporation that may affect compliance obligations under the order.    Part V of the proposed order requires the respondent to file one or more compliance    reports. Part VI of the proposed order is a provision whereby the order, absent certain    circumstances, terminates twenty years from the date of issuance.

The purpose of this analysis is to facilitate public comment on the proposed consent    order. It is not intended to constitute an official interpretation of the agreement and    proposed order or to modify in any way their terms. |
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