Register

March 14, 1997   Green Bay Regional Division of the

Friday   Trade & Consumer Protection Office

commencing at 1:30 p.m.   Room 152B

  200 N. Jefferson

  Green Bay, WI 54301

Handicapped accessible

Written comments will be accepted until April 1, 1997.

Analysis prepared by the Wisconsin Department of Agriculture, Trade and Consumer Protection

Statutory authority: s. 100.20 (2)

Statute interpreted: s. 100.20

This rule amends the department's price comparison advertising rules under ch. ATCP 124, Wis. Adm. Code. This rule creates new definitions, and gives advertisers greater flexibility to compare their current selling prices to competitors' prices that are more than 90 days old.

Current Rules

The Department of Agriculture, Trade and Consumer Protection is responsible for regulating unfair and deceptive advertising practices under s. 100.18, Stats. (Deceptive Advertising Law) and s. 100.20, Stats. (“Little FTC Act”). The department is also responsible, under s. 120.20, Stats., for regulating unfair methods of competition in business and trade practices in business. Under s. 100.20, Stats., the department has adopted rules to regulate price comparison advertising.

The department adopted the ch. ATCP 124 price comparison advertising rules in 1974 and amended the rules in 1978. Chapter ATCP 124 regulates advertisements in which sellers make specific saving claims for consumer property or services which the sellers are offering for sale: e.g., “50% off,” “$40 value for only $10,” “Was $50, now only $25,” “introductory offer 50% off,” or “$35, compare elsewhere at $75”.

Under the current ch. ATCP 124 rules, a price comparison claim must be based on one of the following:

  •A price at which the seller sold or offered the property or services in the past.

  •A price at which a competitor sold or offered the property or services in the past.

  •A price at which the seller will offer the property or services for sale in the future.

Currently, ch. ATCP 124 prohibits a seller from making a price comparison claim based on a competitor's price that is more than 90 days old. For example, under the current rule, a business that distributes a yearly catalogue which compares its prices with those of a competitor cannot distribute its catalogues in Wisconsin without violating ch. ATCP 124.

Proposed Rule Amendments

By limiting competitor price comparisons to 90 days before the advertisement, the current rules effectively prevent some businesses who, as a regular method of competition, provide competitor price comparisons beyond the 90-day limit. The proposed rule allows these businesses to offer their goods to consumers in Wisconsin without eliminating standards that assure truthful and fair practices.

The proposed rule would permit a seller to make a price comparison claim based on a competitor's price that is up to two years old while maintaining some safeguards against false or deceptive price comparisons. Under the proposed rule, sellers who wish to compare their price to a competitor's price that is older than ninety days must disclose the method or basis of the comparison in a way that allows the consumer to comprehend to true meaning of the comparison.

The proposed rule provides a definition of “trade area”. In the current rules, this phrase is not defined, although it is referred to as the “trade area in which the price comparison is made.” This wording has caused confusion as to whether, for example, a business can compare its prices with the prices offered in another state if the advertisement is also circulated in that state. The department believes that the original intent of the drafters was to define “trade area” broadly so as to allow comparisons with prices offered in other states in which the advertisement is circulated. The proposed rule makes it clear that a “trade area” includes areas outside of Wisconsin where the advertisement is also circulated, and that a business can compare a price offered in Wisconsin with prices offered in another state if the advertisement is also circulated in that state.

The proposed rules also provide definitions of “disclose”. By providing a definition of “disclose” the proposed rule clarifies what an advertiser must do to meet the notice requirements contained in the rule.

Initial Regulatory Flexibility Analysis

The Department expects the new rule's effect on small business to be minimal. The new rule is less restrictive than the current rule. Very few businesses use competitors' prices from a period beyond 90 days old in their ads. Those that do will need to disclose the method or basis for the comparison in their advertisement.

This new rule could potentially have some effect on the competitive retail environment. This rule will allow retailers to make certain price comparison claims which are not currently allowed. This could harm some business but help others. The effect on the retail environment is difficult to accurately predict, although it is likely that some small business will find it difficult to compete with businesses who were previously unable to market their products in Wisconsin because of their price comparison methods.

Fiscal Estimate

It is anticipated that this rule will have no significant fiscal impact on the department.

Copies

A copy of the rule to be considered, the Initial Regulatory Flexibility Analysis and the Fiscal Estimate may be obtained, free of charge, from the State of Wisconsin Department of Agriculture, Trade and Consumer Protection, Trade and Consumer Protection Division, 2811 Agriculture Drive, P. O. Box 8911, Madison, WI 53708, or by calling [phone].

Notice of Hearing

State Public Defender

Notice is hereby given that pursuant to s. 977.02 (3), Stats., and interpreting s. 977.07, Stats., the Office of the State Public Defender will hold a public hearing at the time and place indicated below, to consider the amendment of a rule relating to the cost of retained counsel.

Hearing Information

February 28, 1997   2nd Floor

Friday   315 North Henry St.

9:00 a.m. to   MADISON, WI

11:00 a.m.

Reasonable accommodations will be made at the hearing for people with disabilities.

Analysis by Agency

Statutory authority: s. 977.02 (3)

Statute interpreted: s. 977.07

The proposed amendment to s. PD 3.02 (1) is technical in nature, and is necessary to make the rule consistent with current agency practice. Presently, the category related to Class A and B felonies in the “cost of retained counsel” table makes reference to “armed” Class A and B felonies. Current agency practice requires deletion of the term “armed”. The category should correctly state “other Class A & Class B felony”.

Initial Regulatory Flexibility Analysis

This rule would not have a regulatory effect on small businesses.

Fiscal Estimate

Because the amendment to s. PD 3.02 (1) is technical in nature, and is necessary to make the rule consistent with current agency practice, the proposed rule will not have any fiscal impact.

Copies of Proposed Rule and Contact Person

For copies of the proposed rule, or if you have questions, please contact:

Gina Pruski, Deputy Legal Counsel

Telephone [phone]

315 North Henry St.

Madison, WI 53703-3018

Written Comments

Written comments regarding this rule may be submitted in addition to or instead of verbal testimony at the public hearing. Such comments should be addressed to the contact person at the address stated above, and must be received by February 28, 1997.

Notice of Hearing

Public Service Commission

Notice is hereby given that the Commission intends to amend Chapter PSC 114, Wis. Adm. Code, relating to rules concerning electric safety--Revision of Volume 1 of the Wisconsin State Electrical Code.

Analysis

By letter of September 26, 1996, the Public Service Commission (Commission) appointed an advisory committee (s. 227.13, Stats.) to review and submit recommendations for updating Volume 1 of the Wisconsin State Electrical Code. This part of the code is administered by the Commission. On January 3, 1997, the Commission submitted its notification and Statement of Scope for the subject rulemaking to the Department of Administration and the Revisor of Statutes, pursuant to s. 227.135, Stats.

Volume 1 has been and is based on the National Electrical Safety Code (NESC), which is also known as American National Standards Institute (ANSI) C2. In 1979, 1982, 1985, 1988, 1991 and 1994, the Commission adopted the 1977, 1981, 1984, 1987, 1990 and 1993 editions of the NESC, respectively, with certain changes, deletions and additions.

The 1997 edition of the NESC was recently issued, and a corresponding revision of Volume 1 is now desired to reflect the latest national code, correct existing deficiencies, and make other changes, as necessary, to update and improve the state code. Volume 1 of the Wisconsin State Electrical Code is presently found in ch. PSC 114, Wis. Adm. Code. The Commission proposes to revise ch. PSC 114. The rules in ch. PSC 114 deal with safety requirements for the installation, operation and maintenance of primarily outdoor electric supply and communications lines and facilities used by utilities, including electric and telephone suppliers, railroads, and cable television providers.

Pursuant to authority vested in the Commission by ss. 196.74 and 227.11, Stats., the Commission proposes to amend ch. PSC 114.

Chapter PSC 114, Wis. Adm. Code, will be amended by repeal and recreation. Copies of the proposed ch. PSC 114 are available on request from the Public Service Commission, P.O. Box 7854, Madison, Wisconsin 53707-7854.

Fiscal Impact/Initial Regulatory Flexibility Analysis

There will be no fiscal impact of the proposed rules on state or local units of government. There should also be no significant fiscal impact on the utilities and others subject to these rules, including municipally-owned electric utilities, as there are no significant new or additional requirements contained in this revision of these rules. The proposed rules will have no effect on small businesses.

Environmental Assessment

This is a Type III action under s. PSC 4.10(3), Wis. Adm. Code. Since no unusual circumstances have come to the attention of the Commission which indicate that significant environmental consequences are likely, neither an environmental impact statement under s. 1.11, Stats., nor an environmental assessment is required.

Hearing Information

Notice is hereby given that the Commission will hold a public hearing with respect to these proposed rules on Friday, March 14, 1997 at 10:00 a.m., in the Amnicon Falls Hearing Room at the Public Service Commission Office Building, 610 North Whitney Way, Madison, Wisconsin. This building is accessible to people in wheelchairs through the Whitney Way first floor (lobby) entrance. Parking for people with disabilities is available on the south side of the building. Any person with a disability who needs additional accommodations should contact Richard Teslaw at [phone] or Ann Pfeifer at [phone].

Contact People

Anyone having questions regarding the hearing schedule in this notice may call Ann Pfeifer, Administrator, Examining Division, at [phone].

Other questions regarding this matter may be directed to Lanny Smith, Director, Technical Unit, Electric Division, at [phone] or Mohammed Manawer, Senior Engineer, Electric Division, at [phone].

PRESIDE-Feb_F14

Notice of Submission of Proposed Rules to the Presiding Officer of each House of the Legislature, Under S. 227.19, Stats.

Please check the Bulletin of Proceedings for further information on a particular rule.

Chiropractic Examining Board (CR 96-95):

SS. Chir 6.015 and 6.02 (27) and ch. Chir 11 - Relating to patient records.