Interpretation ID: nht89-3.17

TYPE: INTERPRETATION-NHTSA

DATE: 10/16/89

FROM: DONALD S. CLARK -- SECRETARY FEDERAL TRADE COMMISSION

TO: BUD SHUSTER -- U.S. HOUSE OF REPRESENTATIVES

TITLE: NONE

ATTACHMT: ATTACHED TO LETTER DATED 11/20/89 FROM STEPHEN P. WOOD -- NHTSA TO CONGRESSMAN BUD SHUSTER; REDBOOK A34; STANDARDS 109, 117, AND 119; LETTER DATED 8/8/89 FROM CONGRESSMAN BUD SHUSTER TO THE DIRECTOR OF CONGRESSIONAL RELATIONS -- DEPARTMENT OF C OMMERCE

TEXT: Dear Mr. Shuster:

The Department of Commerce has forwarded your letter on behalf of Mr. Lester Hoover to the Federal Trade Commission. Mr. Hoover contacted your office for assistance in obtaining a copy of any regulations pertaining to presale disclosure of grading in formation on automobile tires.

I have enclosed a copy of the Commission's 1967 Tire Advertising and Labeling Guides, 16 C.F.R. Part 228, which, inter alia, call for certain disclosures in the sale of blemished, imperfect, or defective tires (Section 228.11) and in the sale of retre ads and used tires (Section 228.9). These are the only regulations promulgated by the Federal Trade Commission that focus specifically on tires, although other regulations and statutes of general application (such as Section 5 of the FTC Act, which the Commission enforces) cover tires along with other products.

It may interest Mr. Hoover to know that failure to comply with the Guides is not a per se law violation. Rather, as Section 228.0-1 states, the Guides set forth general principles that the Commission applies in determining whether given representatio ns or other practices concerning tires constitute violations of Section 5 of the Federal Trade Commission Act. The remedy for a violation of Section 5 is generally an administrative cease and desist order, rather than the monetary civil penalties which may be obtained in cases involving violation of a Commission order or Trade Regulation Rule.

There may be other tire regulations that would be of interest to Mr. Hoover. I have therefore taken the liberty of forwarding a copy of your inquiry to the Department of Transportation for further review and response.

Please let me know whenever I can be of service.

Sincerely,

Enclosure