Evening star., 1951-09-27
'FTC Hears Conflicting
Views on Radio, N
Fair Trade Code

ernment should go in setting up
fair trade practice standards for
the radio and television industry
today was prime problem before
the Federal Trade Commission.
The FTC was continuing its
conference with business repre-
sentatives to get ideas that will
be welded into proposed rules the
commission plans to issue later.
But another conference in No.
vember or December here ap-
peared certain, so that business
can have more time to study a
draft Of rules made by the com.
missions staff. After that, a pub
lie hearing will be held before the
commission itself issues new rules
that would be binding upon the
Industry.
Speakers yesterday pointed tc
the difficulty Of drawing UP rules
now in a fast-growing industry tt
meet conditions still unknown.
Customer Freedom Urged.
Glen Mcdaniel, president of the
Radio-TV Manufacturers Asso-
citation, said he opposes the Fed
'eral Governments telling a buyer
Ia product is not good enough to
purchase. He said the public is
competent enough to Judge for
itself. He said a purchaser can
buy anything he desires, except
in the fields of drugs, explosives
and similar dangerous articles.
The industry is on the thres-
hold OF new developments in color
TV and high frequency re-
ceiving sets, Mr.. Mcdaniel said
He promised the cooperation of
his group. but pointed out the in
dustry has had only three weeks
to consider the complex rules that
grew out Of a prior conference
here June 81.
Louis B. Calamaras, represent
ing the National Electronic Dis
tributors' Association, said the
public should be educated to the
fact that the component parts OF
a radio or TV set are not made by
a single manufacturer. Industry
practice, he explained, is for man
ufacturerS to get the parts from a
number Of different makers.
Minimum Standards Asked.
U. A. Sanabria, president Of
American Television. Inc, Chicago,
said the proposed trade rules
should define what a television re.
ceiver is. He declared the tend
lency more and more is to leave
out tubes and parts in the manu-
tacture to reduce cost. Tv sets
may become so poor In the low
cost market that 1t will tend to
discredit the industry, he con-
tended.
The rules should require the
industry to meet standards o1
quality, Mr.. Sanabria said, such
as lighting and fidelity Of picture
reception. Unless such standard.
are required, he foresaw a "racket
practice" whereby T'v sets as low
as $3.50 will be on the market
Business spokesman said any
change in trade terms now to Al
in with Government ideas would
cause chaos. They said the pub
lie, over the last six years, has
been educated In radio and Tv
sets and knows what it wants.
Representatives of various Bet
ter Business Bureaus told the
commission the public has been
deceived in some instances re-
Garding tubes and picture sizes
on sets.
Would Restrain Deception.
Among other things, the rules
are aimed at alteration Of brand
names, deceptive use or change Of
cabinets. unfair advertising, alter
alton or removal Of serial num-
bers, deception about new OF
obsolete sets. misuse of terms FAC
tory rebuilt" and rebuilt" decep-
tive pricing, Misrepresentation
about effectiveness of TV an
tennas, lottery schemes and pay
ing bonus to sales people to push
a particular make.
When the conference opened
yesterday. FTC Chairman James
M. Mead asked the cooperation
of business in writing workable
rules.
He said the rules will "serve as
a road map in your business"
H. Paul Butz, FTC attorney,
presiding at the conference, said
that standards are used to aid in