[Federal Register Volume 66, Number 81 (Thursday, April 26, 2001)]
[Notices]
[Page 20994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-10349]



[[Page 20994]]

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

FEDERAL TRADE COMMISSION

[File No. 012 3015]


Stoker, Inc.; 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 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 May 21, 2001.

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

FOR FURTHER INFORMATION CONTACT: Michael Ostheimer, FTC/S-4002, 600 
Pennsylvania Ave., NW., Washington, DC 20580. (202) 326-2699.

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 cease and desist, having been filed with and accepted 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 April 19, 2001) on the 
World Wide Web, at http://www.ftc.gov/os/2001/04/index.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 Proposed Consent Order to Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement containing a consent order from Stoker, Inc. 
(``Stoker'').
    The proposed consent order has been placed on the public record for 
thirty (30) days for receipt 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 or make final the agreement's proposed 
order.
    This matter involves respondent's manufacturing, packaging, 
importing, and advertising of smokeless tobacco products. These 
activities are subject to the Comprehensive Smokeless Tobacco Health 
Education Act of 1986, 15 U.S.C. 4401, et seq. (``Smokeless Tobacco 
Act''), and the regulations promulgated pursuant thereto, 16 CFR 307, 
et seq. (``regulations''). The Smokeless Tobacco Act and the 
regulations require that smokeless tobacco product packages and 
advertisements bear specified health warnings. The FTC complaint 
alleges that Stoker failed to comply with those requirements in several 
respects.
    First, the complaint alleges that certain of Stoker's smokeless 
tobacco products did not bear the health warning statements in 
conspicuous and legible type, in violation of the Smokeless Tobacco Act 
and the regulations. According to the FTC complaint, these products 
include sixteen ounce packages of smokeless tobacco that had the health 
warning statements printed in 5 point type.
    The complaint also alleges that certain of Stoker's smokeless 
tobacco products violated the Act and the regulations because they did 
not bear the health warning statements in a conspicuous and prominent 
place on the package, in violation of the Smokeless Tobacco Act and the 
regulations. The complaint contends that one such product is 
distributed in a package that functions as a retail dispenser of 
individual packages. The health warning is on the top rear of the 
dispenser, but when the dispenser is opened and displayed as intended, 
the health warning is not visible to the public from the dispenser's 
normal viewing position.
    Furthermore, the complaint alleges that certain of Stoker's 
smokeless tobacco advertising did not bear the health warning 
statements in conspicuous and legible type and within the correct size 
circle and arrow format. According to the complaint, one such 
advertisement had a display area measuring 20\1/4\ square inches and 
had the health warning statement printed in 4\1/2\ point type and 
appearing within a one-half inch diameter circle.
    Finally, the complaint alleges that since 1987, Stoker has 
manufactured, packaged, or imported smokeless tobacco products without 
submitting a plan to the FTC specifying the method it would use to 
rotate, display, and distribute the health warning statements on its 
packages and advertisements, in violation of the Act and the 
regulations.
    Violations of the Smokeless Tobacco Act and the regulations also 
constitute violations of section 5 of the FTC Act.
    The proposed consent order is designed to prevent Stoker from 
engaging in similar acts and practices in the future. Part I of the 
proposed order prohibits respondent from violating any provision of the 
Smokeless Tobacco Act or the regulations.
    Parts II through V of the order require Stoker to keep copies of 
relevant packaging and advertisements, to provide copies of the order 
to certain of its personnel, to notify the Commission of changes in 
corporate structure, and to file compliance reports with the 
Commission. Part VI provides that the order will terminate after twenty 
(20) years under certain circumstances.
    The purpose of this analysis is to facilitate public comment 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. 01-10349 Filed 4-25-01; 8:45 am]
BILLING CODE 6750-01-M