Pay ' N Pak Stores, Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER 01;

PAY 'N PAK STORES, INC.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION ACT Doket 2780. , 1976 - Modifying Orr, Aprl, 1976 Deci, Jan. This order reopens proceeding and modifies a consent order issued on Jan. 16, 1976, 41 FR 9862, 87 F. C. 99, against a chain of hardware and plumbing supply stores by allowing a general limitation disclosure on "closeout" merchandise but not as to "clearance" merchandise; further, the disclosure requirements of order paragraphs III and IV.B are changed by deleting the word "specifically. ORDER REOPENING THE PROCEEDING AND MODIFYING DECISION AND ORDER On January 16, 1976, the Commission issued a decision and order against Pay 'N Pak Stores, Inc. in connection with the availahility and pricing of advertised specials. The order includes a provision which allows Pay 'N Pak to advertise merchandise for sale when there is a clear and conspicuous disclosure of any specific exception, limitation or restriction with respect to store, item or price. On Oetoher 31 , 1979, Pay 'N Pak Stores, Inc. petitioned the Commission pursuant to Section 2.51 of the Commission s Organization, Procedures and Rules of Practice, 16 CFR 2. , to reopen the proceeding and modify the decision and order to allow a more general limitation disclosure for "closeout" and "clearance" merchandise. Closeout" merchandise was defined as merchandise whose entire inventory is being disposed of at a reduced price and which is not planned to be restocked. "Clearance" merchandise was defined as merchandise whose price has been reduced to reduce the inventory of such merchandise.

After due consideration, the Commission believes that the public interest will be served by modifying the decision and order to allow a generallimitatjon on "closeout" merchandise but not as to "clearance merchandisc.

It is orde,-ed That the proceeding is reopened. It is Ju,-the,- orde,-ed That the decision and order issued on January 1976 is modified as follows:

The following language is added to the first proviso in Provision I: For closeout items, in instances where an advertisement is for more than one store, the specific limitation will be deemed to be complied with by disclosures that "quantities are limited to stock on hand" and that the items are closeout items. Closeout designation is only appropriate for items where Pay 'N Pak both is disposing of the entire inventory of 396 Modifying Order an item at a reduced price and is not planning on restoking the item. For aU advertised items not meeting the closeout exception, quantity limitations must speify the number available.

This addition wil follow the sentence "Provided it shall be deemed a violation. . . the customer s specifications. The disclosure requirements of III and IV.B are modified by deleting the word "specifically." Provision III wil read: III. It is further ordered That respondent ceas and desist from disseminating, or causing the dissemination of any advertisement by any means which offers any items for sale at a stated price, unless the advertisement contains a statement that: "Each of the advertised items is required to be readily available for sale at or below the advertised price in each Pay 'N Pak store, except as noted in this ad " and a statement of the specific period during which the items will be available at the advertised prices. Provision IV.B will read:

B. A statement that: "AU items listed in the above advertisement are required to be readily available for sale at or below the advertised price, except as note in the above advertisement.

Complaint 95 F.