[Federal Register Volume 60, Number 244 (Wednesday, December 20, 1995)]
[Rules and Regulations]
[Pages 65530-65532]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-31012]



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FEDERAL TRADE COMMISSION
16 CFR Part 404


Trade Regulation Rule Concerning Deceptive Advertising and 
Labeling as to Size of Tablecloths and Related Products

AGENCY: Federal Trade Commission.

ACTION: Repeal of rule.

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SUMMARY: The Federal Trade Commission announces the repeal of the Trade 
Regulation Rule concerning Deceptive Advertising and Labeling as to 
Size of Tablecloths and Related 

[[Page 65531]]
Products. The Commission has reviewed the rulemaking record and 
determined that due to changes in industry practices and state laws, 
the Rule no longer serves the public interest and should be repealed. 
This notice contains a Statement of Basis and Purpose for repeal of the 
Rule.

EFFECTIVE DATE: December 20, 1995.

ADDRESSES: Requests for copies of the Statement of Basis and Purpose 
should be sent to Public Reference Branch, Room 130, Federal Trade 
Commission, 6th Street & Pennsylvania Avenue N.W., Washington, DC 
20580.

FOR FURTHER INFORMATION CONTACT:
Janice Podoll Frankle, Esq., (202) 326-3022, Division of Enforcement, 
Bureau of Consumer Protection, Federal Trade Commission, Washington, DC 
20580.

SUPPLEMENTARY INFORMATION:

Statement of Basis and Purpose

I. Background

    The Trade Regulation Rule concerning Deceptive Advertising and 
Labeling as to Size of Tablecloths and Related Products (Tablecloth 
Rule), 16 CFR Part 404, was promulgated in 1964 (29 FR 11261). The 
Tablecloth Rule declares that in connection with the sale or offering 
for sale of tablecloths and related products, such as doilies, table 
mats, dresser scarves, place mats, table runners, napkins and tea sets, 
any representation of the cut size (that is, the dimensions of 
unfinished materials used in the construction of such products) 
constitutes an unfair method of competition and an unfair and deceptive 
act or practice unless.
    (a) ``Such `cut size' dimensions are accompanied by the words `cut-
size' ''; and
    (b) ``The `cut size' is accompanied by a clear and conspicuous 
disclosure of the dimensions of the finished products and by an 
explanation that such dimensions constitute the finished size.''
    On May 23, 1995, the Commission published an Advance Notice of 
Proposed Rulemaking (ANPR) seeking comment on proposed repeal of the 
Tablecloth Rule (60 FR 27242). In accordance with section 18 of the 
Federal Trade Commission (FTC) Act, 15 U.S.C. 57a, the ANPR was sent to 
the Chairman of the Committee on Commerce, Science and Transportation, 
United States Senate, and the Chairman of the Subcommittee on Commerce, 
Trade and Hazardous Materials, United States House of Representatives. 
The comment period closed on June 22, 1995. The Commission received no 
comments.
    On September 18, 1995, the Commission published a Notice of 
Proposed Rulemaking (NPR) initiating a proceeding to consider whether 
the Tablecloth Rule should be repealed or remain in effect (60 FR 
48067).\1\ This rulemaking proceeding was undertaken as part of the 
Commission's ongoing program of evaluating trade regulation rules and 
industry guides to ascertain their effectiveness, impact, cost and 
need. This proceeding also responded to President Clinton's National 
Regulatory Reinvention Initiative, which, among other things, urges 
agencies to eliminate obsolete or unnecessary regulations. In the NPR, 
the Commission announced its determination, pursuant to 16 CFR 1.20, to 
sue expedited procedures in this proceeding.\2\ The comment period 
closed on October 18, 1995. The Commission received no comments and no 
requests to hold an informal hearing.

    \1\ In accordance with section 18 of the FTC Act, 15 U.S.C. 57a, 
the Commission submitted the NPR to the Chairman of the Committee on 
Commerce, Science and Transportation, United States Senate, and the 
Chairman of the Subcommittee on Commerce, Trade and Hazardous 
Materials, United States House of Representatives, 30 days prior to 
its publication.
    \2\ These procedures included; publishing a Notice of Proposed 
Rulemaking; soliciting written comments on the Commission's proposal 
to repeal the Rule; holding an informal hearing, if requested by 
interested parties; receiving a final recommendation from Commission 
staff; and announcing final Commission action in the Federal 
Register.
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II. Basis for Repeal of Rule

    The Commission periodically reviews its rules and guides, seeking 
information about their costs and benefits and their regulatory and 
economic impact. The information obtained assists the Commission in 
identifying rules and guides that warrant modification or rescission. 
On April 19, 1993, the Commission published in the Federal Register a 
request for public comments on the Tablecloth Rule, 58 FR 21124. The 
Commission asked commenters to address the costs and benefits of the 
Rule, the burdens it imposes, and the basis for assessing whether it 
should be retained or amended.
    The Commission received only one comment specifically addressing 
this Rule along with a general comment referring to several rules under 
review. The comment specific to this Rule was submitted by a trade 
group representing the textile rental, linen supply, uniform rental, 
dust control and commercial laundry services industries. In its one-
page comment letter, the association stated there is a continuing need 
for this Rule. The commenter asserted that the Rule does not impose any 
additional costs or burdens on entities subject to the Rule and that 
the rule raises the level of professionalism in the industry.
    In addition, one general comment, applicable to several rules being 
reviewed, was received from an advertising agency association. This 
organization recommended rescission of the Tablecloth Rule because the 
general prohibitions covering false and deceptive advertising apply to 
the industry. Thus, the commenter concluded that the Rule creates 
unnecessary administrative costs for the government, industry members 
or consumers.
    Prior to the 1993 request for comments, Commission staff conducted 
an informal review of industry practices by examining the marking of 
dimensions on tablecloths and other items subject to the Rule available 
for retail sale at several national chain stores. This informal review 
revealed no instances of Rule violations. In fact, it appeared from the 
limited review that industry products were marked with only the 
finished size. Additionally, the Commission has no record of receiving 
any complaints regarding non-compliance with the Rule, or of initiating 
any law enforcement actions alleging violations of the Rule's 
requirements. Finally, the National Conference on Weight and Measures' 
Uniform Packaging and Labeling Regulation, which has been adopted by 47 
states, regulates the labeling of tablecloths, and provides that these 
items must be labeled with their finished size.
    Because the practices that brought about the Tablecloth Rule are no 
longer common industry practices and are otherwise addressed by state 
law, the Rule is no longer necessary and should be repealed.

III. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-11, requires an 
analysis of the anticipated impact of the repeal of the Rule on small 
businesses. The reasons for repeal of the Rule have been explained in 
this Notice. Repeal of the Rule would appear to have little or no 
effect on small businesses. Moreover, the Commission is not aware of 
any existing federal laws or regulations that would conflict with 
repeal of the Rule. For these reasons, the Commission certifies, 
pursuant to Section 605 of the RFA, 5 U.S.C. 605, that this action will 
not have a significant economic impact on a substantial number of small 
entities.

IV. Paperwork Reduction Act

    The Tablecloth Rule imposes third-party disclosure requirements 
that 

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constitute ``information collection requirements'' under the Paperwork 
Reduction Act, 44 U.S.C. 3501 et seq. Accordingly, repeal of the Rule 
would eliminate any burdens on the public imposed by these disclosure 
requirements.

List of Subjects in 16 CFR Part 404

    Advertising, Tablecloths and related products, Trade practices.

PART 404--[REMOVED]

    The Commission, under authority of Section 18 of the Federal Trade 
Commission Act, 15 U.S.C. 57a, amends chapter I of title 16 of the Code 
of Federal Regulations by removing Part 404.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 95-31012 Filed 12-19-95; 8:45 am]
BILLING CODE 6750-01-M