[Federal Register: May 28, 1997 (Volume 62, Number 102)]
[Proposed Rules]
[Page 28822-28824]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28my97-16]
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FEDERAL TRADE COMMISSION
16 CFR Part 436
Franchise Rule Public Workshop Conferences
AGENCY: Federal Trade Commission.
ACTION: Public workshop conferences.
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SUMMARY: The Federal Trade Commission (``FTC'' or ``Commission'') will
hold six public workshop conferences in connection with the Advance
Notice of Proposed Rulemaking (``ANPR'') on the Trade Regulation Rule
entitled ``Disclosure Requirements and Prohibitions Concerning
Franchising and Business Opportunity Ventures,'' 16 CFR Part 436 (the
``Franchise Rule'' and ``Rule''). In addition, the Commission will
continue to accept comments on the ANPR until December 31, 1997.
DATES: The public workshop conferences will be held as follows:
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Conf. No. Topics Location Dates
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1..................... Trade Show Promoters...... Washington, DC.................. July 28, 29.
2..................... Business Opportunities.... Chicago, IL..................... Aug. 21, 22.
3..................... UFOC, Internet, New York, NY.................... Sept. 18, 19.
International Co-
Branding, Alternative Law
Enforcement.
4..................... Business Opportunities.... Dallas, TX...................... Oct. 20, 21.
5..................... UFOC, Internet, Seattle, WA..................... Nov. 6, 7.
International, Co-
Branding, Alternative Law
Enforcement.
6..................... Business Opportunities.... Washington, DC.................. Nov. 20, 21.
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[[Page 28823]]
The first day of each conference will run from 9 a.m. until 5 p.m., and
the second day will run from 9 a.m. until 3 p.m. The first day of each
conference will consist of a roundtable discussion on the various
issues described below. Members of the public will also have the
opportunity to comment on the issues raised during the roundtable
discussions. The second day will be reserved for members of the general
public who wish to make statements for the record on any of the topics
raised by the ANPR.
ADDRESSES: Parties interested in participating in one or more of the
Public Workshop Conferences should submit a request to participate on
or before July 1, 1997, to Myra Howard, Division of Marketing
Practices, Federal Trade Commission, Washington, DC 20580. The
Commission will also accept requests to participate received at the
following E-mail address: ``FRANPR@ftc.gov'', and at the Commission's
ANPR hotline telephone number: (202) 326-3573.
FOR FURTHER INFORMATION CONTACT:
Steven Toporoff, (202) 326-3135, or Myra Howard, (202) 326-2047,
Division of Marketing Practices, Bureau of Consumer Protection, Federal
Trade Commission, 6th Street and Pennsylvania Avenue, NW., Washington,
DC. 20580.
SUPPLEMENTARY INFORMATION:
Part A--Overview of the Commission's ANPR
On February 28, 1997, the Commission published an ANPR announcing
the Commission's proposal to commence a rulemaking proceeding to amend
the Franchise Rule. 62 FR 9115 (February 28, 1997). The ANPR requested
comment on whether the Franchise Rule should be amended to: (1) Revise
the Rule's disclosure requirements based upon the Uniform Franchise
Offering Circular Guidelines (``UFOC'') model; (2) distinguish between
disclosures for business opportunities and for franchises; (3) exempt
trade show promoters from liability as ``brokers; '' (4) require trade
show exhibitors to have their disclosure documents available for public
inspection; (5) require franchisors to inform prospective franchisees
that franchisors are permitted to disclose earnings information, and
where franchisors elect not to do so, to require such franchisors to
state that they make no earnings representations and do not authorize
their salespersons to make them; (6) clarify that the Rules does not
apply to the sale of franchises to be located outside the United
States; (7) clarify the applicability of the Rule to the sale of
franchises over the Internet; and (8) clarify the applicability of the
Rule to the sale of co-branded franchise systems. In addition, the ANPR
asked whether the Commission should develop a program to reduce or
waive civil penalties for certain violations of the Franchise Rule.
Part B--Extension of Comment Period
The ANPR stated that comments must be submitted on or before April
30, 1997. The Commission is now extending the comment period until
after the final public workshop conference is held, as set forth below,
in order to provide the public with maximum opportunity to participate
in the rulemaking process. Therefore, submissions of views, drafts of
proposed amendments to the Rule, and any other written, oral, or visual
materials will be accepted throughout the conference period, and up
until December 31, 1997. All such comments will also be made part of
the public record.
Part C--Overview of the Public Workshop Conferences
The ANPR announced that Commission staff would hold several public
workshop conferences. These conferences are intended to serve several
purposes: (1) To allow Commission staff and interested parties the
opportunity to discuss openly issues raised in the ANPR and in the
comments to the ANPR; (2) to offer the general public an opportunity to
make statements on the record concerning the issues raised in the ANPR;
and (3) to assist Commission staff in drafting a proposed amended rule.
Accordingly, the first day of each public workshop conference will
consist of a roundtable discussion centered on a specific topic or
topics, as noted below. In addition to discussing and analyzing the
issues, the participants will be asked to offer concrete suggestions on
revising the Rule in those specific areas. Participation by the general
public the first day will be limited to a discussion of the topics
raised that day. The second day of each conference will be reserved for
the general public to share their comments and concerns about any of
the issues raised in the ANPR. Statements by members of the general
public may be limited to a few minutes, depending on the number of
persons who wish to make statements. All discussions and comments will
be transcribed and placed on the public record.
The Commission staff will select a limited number of parties to
join in the roundtable discussions. To the extent possible, Commission
staff will select parties to represent the following affected
interests: franchisors; franchisees; business opportunity promoters;
business opportunity purchasers; franchise and business opportunity
trade show organizers; franchise and business opportunity brokers;
franchisor, franchise, business opportunity, and other trade or
industry associations; franchise consultants; economists and
academicians; Federal, State and local law enforcement and regulatory
authorities; and any other interests that Commission staff may identify
and deem appropriate for representation.
Parties representing the above-referenced interests will be
selected on the basis of the following criteria:
1. The party must submit a comment. First priority will be given to
those parties who submit their comment by July 1, 1997. After that
date, parties may be considered as participants on a space-available
basis.
2. The party must also notify Commission staff in writing, via E-
mail, or via the hotline number, of its interest in being a roundtable
participant and, if required, authorization to represent an affected
interest, on or before July 1, 1997. The party must also identify which
conference or conferences that party wishes to attend. Those parties
submitting their requests after July 1, 1997, will also be considered
on a space-available basis.
3. The party's participation would promote a balance of interests
represented at the conference.
4. The party's participation would promote the consideration and
discussion of the topics being discussed at the conference.
5. The party has experience or expertise in activities affected by
the Franchise Rule.
6. The party adequately reflects the views of the affected
interest(s).
7. The number of parties selected will not be so large as to
inhibit effective discussion among them.
The Commission strongly encourages all interested parties to
participate in the public workshop conferences, as the transcripts from
the conferences will be an important part of the public record in this
rulemaking proceeding. Individuals wishing to make statements on the
record the second day of any conference need not submit a request to
participate, and the Commission will make every effort to provide time
for all members of the general public to make statements regarding any
of the ANPR issues. Each conference will be facilitated by a Commission
staff member. Prior to each conference,
[[Page 28824]]
participants will be provided with tentative agendas as well as copies
of the comments submitted in response to the ANPR.
Part D--Schedule of Public Workshop Conferences
The first public workshop will be held on July 28 and 29, 1997, at
the Federal Trade Commission, Room 432, 6th Street and Pennsylvania
Avenue, NW., Washington, DC 20580. The roundtable discussion on July
28, 1997, will focus on the possible exemption of trade show promoters
from the Rule's disclosure requirements and the development of possible
voluntary industry standards.
The second public workshop conference will be held on August 21 and
22, 1997, at the Chicago Regional Office, Federal Trade Commission, 55
E. Monroe Street, Suite 1860, Chicago, Illinois 60603. The roundtable
discussion on August 21, 1997, will focus on revisions to the business
opportunity section of the Rule, including a definition of the term
``business opportunity.''
The third public workshop conference will be held on September 18
and 19, 1997, at the Jacob Javits Federal Building, 26 Federal Plaza,
Floor 36, Conference Room 3604, New York, NY 10278. The roundtable
discussion on September 18, 1997, will focus on whether the Commission
should revise the Rule based upon the UFOC model and possible
modifications; the sale of franchises through the Internet; the sale of
co-branded franchise systems; and alternative approaches to Franchise
Rule law enforcement.
The fourth public workshop conference will be held on October 20
and 21, 1997, at the Dallas Regional Office, Federal Trade Commission,
1999 Bryan Street, Suite 2150, Dallas, Texas 75201. The roundtable
discussion on October 20, 1997, will focus on proposals for a revised
definition of the term ``business opportunity,'' and specific proposed
disclosure requirements for business opportunity sellers.
The fifth public workshop conference will be held on November 6 and
7, 1997, at the Seattle Regional Office, Federal Trade Commission, 915
Second Avenue, Suite 2886, Seattle, Washington 98174. The roundtable
discussion on November 6, 1997, will focus on whether the Commission
should revise the Rule based upon the UFOC model and possible
modifications; the sale of franchises through the Internet; the sale of
co-branded franchise systems; and alternative approaches to Franchise
Rule law enforcement.
The final public workshop conference will be held on November 20
and 21, 1997, at the Federal Trade Commission, Room 432, 6th Street and
Pennsylvania Avenue, NW., Washington, DC 20580. The roundtable
discussion on November 20, 1997, will focus on drafting revised
business opportunity disclosures.
List of Subjects in 16 CFR Part 436
Advertising, Business and industry, Franchising, Trade practices.
Authority: 15 U.S.C. 41-58.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 97-13870 Filed 5-27-97; 8:45 am]
BILLING CODE 6750-01-M