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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
RESPONDENT COMMISSION LAWN COMPLAINT FEDERAL TRADE COMMISSION REPRESENTATION KUBOTA TRACTOR CORPORATION GARDEN TRACTOR UNITED STATES VIOLATION SUCCESSORS ACT CONSUMER PROTECTION AGREEMENT JURISDICTION SALE TERMINATE APPEALING RULING PRACTICES THEREAFTER CONSENT JURISDICTIONAL FACTS MATTER OFFICERS DIRECTORS MANUFACTURING ADVERTISING PROMOTION |
9823591
B254540
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
COMMISSIONERS:
Robert Pitofsky, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
In the Matter of
KUBOTA TRACTOR CORPORATION, a corporation.
DOCKET NO. C-3863
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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COMPLAINT
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EXTRACTED KEY WORDS
LAWN UNITED STATES EXHIBIT GARDEN TRACTOR RESPONDENT KUBOTA ADVERTISEMENTS T-SERIES LAWN TRACTORS PARAGRAPH REPRESENTATIONS FEDERAL TRADE COMMISSION MANUFACTURING DEALER PROMOTION ADVERTISEMENT ACT LABELING TG-SERIES LAWN KUBOTA TRACTOR CORPORATION PHOTOGRAPH IMPLICATION LABOR TRUTH SIGNIFICANT FOREIGN REPRESENTATIONS SET MISLEADING COMMERCE PROMOTION ADVERTISEMENT FEATURING ALLEGES PRACTICES COMPLAINT |
9823591
B254540
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
KUBOTA TRACTOR CORPORATION, a corporation
DOCKET NO. C-3863
COMPLAINT
The Federal Trade Commission, having reason to believe that Kubota
Tractor Corporation ("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 Kubota Tractor Corporation is a California corporation
with its principal office or place of business at 3401 Del Amo
Boulevard, Torrance, California 90509.
2. Respondent has manufactured, advertised, labeled, offered for sale,
sold, and distributed products to the public, including lawn tractors.
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 line of T-Series Lawn Tractors, including but
not necessarily limited to the attached Exhibits A through D. These
advertisements contain the following statements:
Exhibit A, 1998 Full Line Brochure
"The Kubota T-Series lawn tractors are manufactured at Kubota
Manufacturing of America in Gainesville, Georgia."
Exhibit B, dealer television commercial
"The Kubota T-Series - 3 models to choose from . . . Made in
America, the Kubota T-Series."
Exhibit C, dealer promotion advertisement
"T-Series Lawn Tractors
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3
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ANALYSIS
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EXTRACTED KEY WORDS
LAWN PROPOSED ORDER RESPONDENT GARDEN TRACTORS UNITED STATES PROPOSED CONSENT ORDER AGREEMENT COMMISSION COMPLAINT CHARGES SIGNIFICANT FOREIGN COMPLIANCE PUBLIC RECORD ADVERTISING PRACTICES SALE TRUTH TRACTOR MODELS CONTAINED SIGNIFICANT FOREIGN PROVISION MANUFACTURING SOLD GRASS MOW GRASS T-SERIES LAWN TRACTORS SERIES LAWN ATTACHMENTS GRASS CATCHERS BLADES SNOWBLOWERS |
_________________________________________________________________
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 Kubota
Tractor Corporation.
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 tractors and lawn and garden tractors. The
Commission's complaint charges that respondent misrepresented that
certain of its lawn tractors or lawn and garden tractors were all or
virtually all made in the United States when, in truth and in fact,
these products had significant foreign parts. In addition, the
complaint charges that respondent misrepresented that entire product
lines of lawn tractors and lawn and garden tractors were all or
virtually all made in the United States. In truth and in fact, in one
product line, one of the three lawn tractor models in the product line
contained significant foreign parts; in a second product line, both of
the lawn and garden tractor models in that line contained significant
foreign parts.
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 tractor or lawn and garden tractor, or entire product line of
lawn tractors or lawn and garden tractors, is made in the United
States. The proposed consent order defines the terms "lawn tractor"
and "lawn and garden tractor" as products manufactured, labeled,
advertised, promoted, offered for sale, sold, or distributed primarily
for consumers to mow grass, including but not limited to respondent's
T-Series lawn tractors and TG- Series lawn and garden tractors. It
states that such products may be sold with or without attachments such
as grass catchers, front blades, or snowblowers. The proposed order
would allow respondent to represent that any lawn tractor or lawn and
garden tractor, or lawn tractor or lawn and garden tractor product
line, is made in the United States so long as all, or virtually all,
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4
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AGREEMENT CONTAINING CONSENT
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EXTRACTED KEY WORDS
RESPONDENT COMMISSION KUBOTA TRACTOR CORPORATION COMPLAINT PROPOSED RESPONDENT FEDERAL TRADE COMMISSION LAWN AGREEMENT REPRESENTATION DRAFT COMPLAINT UNITED STATES GARDEN TRACTOR COUNSEL ACCEPTANCE VIOLATION SUCCESSORS CONSENT ORDER OFFICERS FACTS CONSUMER PROTECTION MANNER SALE TERMINATE APPEALING PRACTICES LAW PURSUANT PROCEEDING NOTIFY |
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
In the Matter of
KUBOTA TRACTOR CORPORATION, a corporation.
FILE NO. 982 3591
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain
acts and practices of Kubota Tractor Corporation, 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 Kubota Tractor Corporation, by its
duly authorized officers, and counsel for the Federal Trade Commission
that:
1. Proposed respondent Kubota Tractor Corporation is a California
corporation with its principal office or place of business at 3401 Del
Amo Boulevard, P.O. Box 2992, Torrance, California 90509.
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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