82 FR 13604 - Block Division, Inc.; Analysis of Proposed Consent Order To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 82, Issue 48 (March 14, 2017)

The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis to Aid Public Comment describes both the allegations in the draft complaint and the terms of the consent order--embodied in the consent agreement--that would settle these allegations.

[Federal Register Volume 82, Number 48 (Tuesday, March 14, 2017)]
[Notices]
[Pages 13604-13605]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-04919]


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FEDERAL TRADE COMMISSION

[File No. 172 3052]


Block Division, Inc.; Analysis of Proposed Consent Order 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. The attached Analysis to Aid Public Comment describes both 
the allegations in the draft complaint 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 April 7, 2017.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/blockdivisionconsent online or on paper, 
by following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``In the Matter of Block 
Division, Inc., File No. 172 3052'' on your comment and file your 
comment online at https://ftcpublic.commentworks.com/ftc/blockdivisionconsent by following the instructions on the Web-based 
form. If you prefer to file your comment on paper, write ``In the 
Matter of Block Division, Inc., File No. 172 3052'' on your comment and 
on the envelope, and mail your comment to the following address: 
Federal Trade Commission, Office of the Secretary, 600 Pennsylvania 
Avenue NW., Suite CC-5610 (Annex D), Washington, DC 20580, or deliver 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, 
Suite 5610 (Annex D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Julia Solomon Ensor, Attorney, (202) 
326-2377, or Crystal Ostrum, Attorney, (202) 326-3405, Bureau of 
Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue 
NW., Washington, DC 20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing 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 March 8, 2017), on the World Wide Web at: 
http://www.ftc.gov/os/actions.shtm.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before April 7, 2017. 
Write ``In the Matter of Block Division, Inc., File No. 172 3052'' on 
your comment. Your comment--including your name and your state--will be 
placed on the public record of this proceeding, including, to the 
extent practicable, on the public Commission Web site, at http://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the 
Commission tries to remove individuals' home contact information from 
comments before placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone's Social Security number, 
date of birth, driver's license number or other state identification 
number or foreign country equivalent, passport number, financial 
account number, or credit or debit card number. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do not 
include any ``[t]rade secret or any commercial or financial information 
which . . . is privileged or confidential,'' as discussed in Section 
6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 
4.10(a)(2). In particular, do not include competitively sensitive 
information such as costs, sales statistics, inventories, formulas, 
patterns, devices, manufacturing processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
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    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
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    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/
ftc/

[[Page 13605]]

blockdivisionconsent by following the instructions on the web-based 
form. If this Notice appears at http://www.regulations.gov/#!home, you 
also may file a comment through that Web site.
    If you file your comment on paper, write ``In the Matter of Block 
Division, Inc., File No. 172 3052'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite 
CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Visit the Commission Web site at http://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that the Commission administers permit the collection of public 
comments to consider and use in this proceeding as appropriate. The 
Commission will consider all timely and responsive public comments that 
it receives on or before April 7, 2017. You can find more information, 
including routine uses permitted by the Privacy Act, in the 
Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission (``FTC'' or ``Commission'') has 
accepted, subject to final approval, an agreement containing a consent 
order from Block Division, Inc. (``respondent'').
    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 marketing, sale, and distribution 
of pulley blocks and other products with claims that the products are 
of U.S.-origin. According to the FTC's complaint, respondent 
represented that its products are ``Made in USA.'' In fact, 
respondent's products incorporate significant imported parts, including 
imported steel pulley plates that entered the United States from 
overseas already stamped ``Made in USA.''
    The complaint alleges that respondent's claims that its products 
are ``Made in USA'' were false or misleading, or not substantiated at 
the time the representations were made. Accordingly, the complaint 
alleges that respondent engaged in deceptive acts or practices in 
violation of Section 5(a) of the FTC Act.
    The proposed consent order contains provisions designed to prevent 
respondent from engaging in similar acts and practices in the future. 
Consistent with the FTC's Enforcement Policy Statement on U.S. Origin 
Claims, Part I prohibits Block Division, Inc. from making U.S.-origin 
claims for its products unless either: (1) The final assembly or 
processing of the product occurs in the United States, all significant 
processing that goes into the product occurs in the United States, and 
all or virtually all ingredients or components of the product are made 
and sourced in the United States; or (2) a clear and conspicuous 
qualification appears immediately adjacent to the representation that 
accurately conveys the extent to which the product contains foreign 
parts, ingredients, and/or processing.
    Part II prohibits respondent from making any ``Made in USA'' or 
other country-of-origin claim about a product or service unless the 
claim is true, not misleading, and respondent has a reasonable basis 
substantiating the representation.
    Parts III through VI are reporting and compliance provisions. Part 
III requires respondent to acknowledge receipt of the order, to provide 
a copy of the order to certain current and future principals, officers, 
directors, and employees, and to obtain an acknowledgement from each 
such person that they have received a copy of the order. Part IV 
requires the filing of compliance reports within one year after the 
order becomes final and within 10 days of any change in respondent that 
would affect compliance with the order. Part V requires respondent to 
maintain certain records, including records necessary to demonstrate 
compliance with the order. Part VI requires respondent to submit 
additional compliance reports when requested by the Commission and to 
permit the Commission or its representatives to interview respondent's 
personnel.
    Finally, Part VII is a ``sunset'' provision, terminating the order 
after twenty (20) years, with certain exceptions.
    The purpose of this analysis is to aid public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the proposed order or to modify its terms in any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017-04919 Filed 3-13-17; 8:45 am]
BILLING CODE 6750-01-P