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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT FEDERAL TRADE COMMISSION AMERICAN HONDA MOTOR REPRESENTATION HONDA MOTOR COMPANY UNITED STATES VIOLATION SUCCESSORS LAWN MOWER ACT CONSUMER PROTECTION AGREEMENT JURISDICTION TERMINATE APPEALING RULING PRACTICES THEREAFTER CONSENT JURISDICTIONAL FACTS MATTER OFFICERS DIRECTORS MANUFACTURING LABELING SALE PROMOTION COMMERCE |
9823600
B254552
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
COMMISSIONERS:
Robert Pitofsky, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
In the Matter of
AMERICAN HONDA MOTOR COMPANY, INC., a corporation.
DOCKET NO. C-3864
DECISION AND ORDER
The Federal Trade Commission having initiated an investigation of
certain acts and practices of the respondent named in the caption
hereof, and the respondent having been furnished thereafter with a
copy of a draft complaint which the Bureau of Consumer Protection
proposed to present to the Commission for its consideration and which,
if issued by the Commission, would charge respondent with violations
of the Federal Trade Commission Act; and
The respondent, its attorney, and counsel for the Commission having
thereafter executed an agreement containing a consent order, and
admission by the respondent of all the jurisdictional facts set forth
in the draft complaint, a statement that the signing of said agreement
is for settlement purposes only and does not constitute an admission
by respondent that the law has been violated as alleged in such
complaint, or that the facts as alleged in such complaint, other than
jurisdictional facts, are true, and waivers and other provisions as
required by the Commission's Rules; and
The Commission having thereafter considered the matter and having
determined that it had reason to believe that the respondent violated
the said Act, and that a complaint should issue stating its charges in
that respect, and having thereupon accepted the executed consent
agreement and placed such agreement on the public record for a period
of sixty (60) days, now in further conformity with the procedure
prescribed in Section 2.34 of its Rules, the Commission hereby issues
its complaint, makes the following jurisdictional findings, and enters
the following order:
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2
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CONSENT AGREEMENT
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EXTRACTED KEY WORDS
COMPLAINT FEDERAL TRADE COMMISSION AMERICAN HONDA MOTOR ACT LEASE PRACTICES ADVERTISEMENTS AGREEMENT AMOUNT REPRESENTATION PAYMENT CONSUMER REGULATION UNITED STATES CONSENT ORDERS DRAFT COMPLAINT DISCLOSURES TOTAL AMOUNT LEASE INCEPTION CREDIT ADVERTISEMENTS CALIFORNIA TORRANCE BOULEVARD SUBPARAGRAPH CLA DULY AUTHORIZED OFFICERS PRINCIPAL OFFICE SECURITY DEPOSIT HONDA EXHIBITS GENERAL MOTORS |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
)
In The Matter of )
) FILE NO. 952 3094
AMERICAN HONDA MOTOR CO., INC., )
a corporation. ) AGREEMENT CONTAINING
) CONSENT ORDER
)
The Federal Trade Commission ("Commission") has conducted an
investigation of certain acts and practices of American Honda
Motor Co., Inc., a corporation ("proposed respondent"). Proposed
respondent, having been represented by counsel, is willing to
enter into an agreement containing a consent order resolving the
allegations contained in the attached draft complaint.
Therefore,
IT IS HEREBY AGREED by and between American Honda Motor Co.,
Inc., by its duly authorized officers, and counsel for the
Federal Trade Commission that:
l. Proposed respondent American Honda Motor Co., Inc. is a
California corporation with its principal office or place of
business located at 1919 Torrance Boulevard, Torrance, California
90501-2746.
2. Proposed respondent admits all the jurisdictional facts
set forth in the draft complaint.
3. Proposed respondent waives:
a. Any further procedural steps;
b. The requirement that the Commission's decision
contain a statement of findings of fact and
conclusions of law; and
c. All rights to seek judicial review or otherwise to
challenge or contest the validity of the order entered
pursuant to this agreement.
4. This agreement shall not become part of the public record of
the proceeding unless and until it is accepted by the Commission.
If this agreement is accepted by the Commission, it, together
with the draft complaint, will be placed on the public record for
a period of sixty (60) days and information about it publicly
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3
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COMPLAINT
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EXTRACTED KEY WORDS
FEDERAL TRADE COMMISSION HONDA HARMONY AMERICA RESPONDENT ACT ADVERTISEMENT LAWN MOWERS UNITED STATES HONDA MASTERS EXHIBIT AMERICAN HONDA MOTOR HONDA MOTOR COMPANY ALLEGES PRACTICES COMPLAINT AFFECTING COMMERCE VIOLATION CALIFORNIA TORRANCE MANUFACTURING PARAGRAPH REPRESENTATIONS FOREIGN ORIGIN REPRESENTATIONS SET MISLEADING UNFAIR DECEPTIVE ACTS DONALD CLARK |
9823600
B254552
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
AMERICAN HONDA MOTOR COMPANY, INC., a corporation
DOCKET NO. C-3864
COMPLAINT
The Federal Trade Commission, having reason to believe that American
Honda Motor Company, Inc. ("respondent") has violated the provisions
of the Federal Trade Commission Act, and it appearing to the
Commission that this proceeding is in the public interest, alleges:
1. Respondent American Honda Motor Company, Inc. is a California
corporation with its principal office or place of business at 1919
Torrance Boulevard, Torrance, California 90501.
2. Respondent has manufactured, advertised, labeled, offered for sale,
sold, and distributed products to the public, including lawn mowers.
3. The acts and practices of respondent alleged in this complaint have
been in or affecting commerce, as "commerce" is defined in Section 4
of the Federal Trade Commission Act.
4. Respondent has disseminated or has caused to be disseminated
advertisements for its Honda Masters, Honda Harmony II 3-in-1 and
Honda Harmony II lawn mowers, including but not necessarily limited to
the attached Exhibits A through C. These advertisements contain the
following statements:
A. Exhibit A, advertisement for Honda Masters
"MADE IN AMERICA BY HONDA"
B. Exhibit B, advertisement for Honda Harmony II 3-in-1
"MADE IN AMERICA BY HONDA"
C. Exhibit C, advertisement for Honda Harmony II
"MADE IN AMERICA BY HONDA"
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4
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ANALYSIS
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EXTRACTED KEY WORDS
RESPONDENT LAWN MOWER PROPOSED CONSENT ORDER UNITED STATES AGREEMENT HONDA COMMISSION PUBLIC RECORD LABELING PRACTICES CHARGES MISREPRESENTING HONDA HARMONY PROVISION MANUFACTURING COMPLIANCE SIGNIFICANT PORTION LAWN MOWER MODELS FOREIGN ORIGIN REMEDY ENGAGING ACTS LABOR DISSEMINATING COMPANY OFFICIALS EMPLOYEES NOTIFY AFFECT COMPLIANCE OBLIGATIONS COMPLIANCE REPORTS |
_________________________________________________________________
Analysis of Proposed Consent Order
to Aid Public Comment
_________________________________________________________________
The Federal Trade Commission has accepted an agreement, subject to
final approval, to a proposed consent order from respondent American
Honda Motor Company, Inc.
The proposed consent order has been placed on the public record for
sixty (60) days for reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement and take other appropriate action or make
final the agreement's proposed order.
This matter concerns advertising, labeling and promotional practices
related to the sale of lawn mowers. The Commission's complaint charges
that respondent misrepresented that its Honda Masters, Honda Harmony
II 3-in-1, and Honda Harmony II lawn mowers are all or virtually all
made in the United States when, in truth and in fact, a significant
portion of the components of these lawn mower models is, or has been,
of foreign origin.
The proposed consent order contains a provision that is designed to
remedy the charges and to prevent the respondent from engaging in
similar acts and practices in the future. Part I of the proposed order
prohibits the respondent from misrepresenting the extent to which a
lawn mower is made in the United States. The proposed order would
allow respondent to represent that a lawn mower is made in the United
States so long as all, or virtually all, of the component parts of the
lawn mower are made in the United States and all, or virtually all, of
the labor in manufacturing the lawn mower is performed in the United
States.
The proposed consent order additionally provides that the order shall
not apply to the labeling of lawn mowers manufactured before the
effective date of the order.
Part II of the proposed order requires the respondent to maintain
materials relied upon in disseminating any representation covered by
the order. Part III of the proposed order requires the respondent to
distribute copies of the order to certain company officials and
employees. Part IV of the proposed order requires the respondent to
notify the Commission of any change in the corporation that may affect
compliance obligations under the order. Part V of the proposed order
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5
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AGREEMENT CONTAINING CONSENT
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT PROPOSED RESPONDENT AMERICAN HONDA MOTOR FEDERAL TRADE COMMISSION AGREEMENT HONDA MOTOR COMPANY REPRESENTATION DRAFT COMPLAINT UNITED STATES COUNSEL ACCEPTANCE VIOLATION SUCCESSORS LAWN MOWER CONSENT ORDER OFFICERS FACTS MANNER CONSUMER PROTECTION TERMINATE APPEALING RULING ACTS PRACTICES LAW PURSUANT PROCEEDING NOTIFY |
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
In the Matter of
AMERICAN HONDA MOTOR COMPANY, INC., a corporation.
FILE NO. 982 3600
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain
acts and practices of American Honda Motor Company, Inc., a
corporation ("proposed respondent"). Proposed respondent, having been
represented by counsel, is willing to enter into an agreement
containing a consent order resolving the allegations contained in the
attached draft complaint. Therefore,
IT IS HEREBY AGREED by and between American Honda Motor Company, Inc.,
by its duly authorized officers, and counsel for the Federal Trade
Commission that:
1. Proposed respondent American Honda Motor Company, Inc. is a
California corporation with its principal office or place of business
at 1919 Torrance Boulevard, Torrance, California 90501.
2. Proposed respondent admits all the jurisdictional facts set forth
in the draft complaint.
3. Proposed respondent waives:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law; and
c. All rights to seek judicial review or otherwise to challenge
or contest the validity of the order entered pursuant to this
agreement.
4. This agreement shall not become part of the public record of the
proceeding unless and until it is accepted by the Commission. If this
agreement is accepted by the Commission, it, together with the draft
complaint, will be placed on the public record for a period of sixty
(60) days and information about it publicly released. The Commission
thereafter may either withdraw its acceptance of this agreement and so
notify proposed respondent, in which event it will take such action as
it may consider appropriate, or issue and serve its complaint (in such
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