[Federal Register Volume 66, Number 26 (Wednesday, February 7, 2001)]
[Notices]
[Pages 9345-9346]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-3193]


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FEDERAL TRADE COMMISSION

[File No. 992 3263]


Sharp Electronics Corp.; Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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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 February 26, 2001.

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

FOR FURTHER INFORMATION CONTACT: Kerry O'Brien or Matthew Gold, Federal 
Trade Commission, Western Regional Office, 901 Market Street, Suite 
570, San Francisco, CA 94103. (415) 356-5266.

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, 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 January 25, 2001), on the World Wide Web, at ``http://www.ftc.gov/
os/2001/01/index.htm.'' A paper copy can be obtained from the FTC 
Public Reference Room, Room H-130, 600 Pennsylvania Avenue, NW, 
Washington, D.C. 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, D.C. 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

[[Page 9346]]

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 Sharp 
Electronics Corporation (``Sharp'').
    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.
    Sharp advertises and sells the ``Mobilon'' line of hand-held 
personal computers (``HPCs''). Sharp's Mobilon HPCs, as well as similar 
devices from several other manufacturers, use the Microsoft Windows CE 
operating system. This operating system and several applications, 
including a word processor, a spreadsheet, and a database, are 
installed on these devices' ROM board. HPCs are designed to be 
upgradeable to newer versions of the operating system and/or 
applications through the purchase and installation of a new ROM board.
    This matter concerns allegedly false and deceptive advertising of 
Sharp's Mobilon HPCs. The Commission's proposed complaint alleges that 
Sharp claimed that it would offer to its Mobilon customers an upgrade 
to a later version of the Microsoft Windows CE operating system when 
such a later version became available. In fact, Sharp never offered to 
its Mobilon customers an upgrade to a later version of the Microsoft 
Windows CE operating system when such a later version became available. 
Further, the company continued to represent that its Mobilon HPCs were 
upgradeable for several months after deciding not to offer an upgrade.
    The proposed consent order contains provisions designed to prevent 
Sharp from engaging in similar acts and practices in the future. Part I 
of the proposed Order prohibits the company from misrepresenting the 
availability of any upgrade product. Part II of the proposed order 
requires Sharp to offer the promised upgrade to consumers who purchased 
a Mobilon 4100, 4500, or 4600 handheld PC. Under this provision, 
Mobilon owners may obtain the upgrade for the payment of a shipping and 
handling charge of $10. Parts III through VI of the proposed order are 
reporting and compliance provisions. Part VII is a provision 
``sunsetting'' the order after twenty years, with certain exceptions.
    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.

    By the direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 01-3193 Filed 2-6-01; 8:45 am]
BILLING CODE 6750-01-M