Law in the news; Federal Trade Commission

The National Education already own network presents a law in the news with Professor Joseph R. Julan associate dean of the University of Michigan Law School. I'm talking with James M. Nicholson one time practicing attorney now a member of the Federal Trade Commission. Our subject the impact of the Commission on your life and mine. Mr. Commissioner the Federal Trade Commission has announced recently its intention to resume intensive monitoring of TV commercials. Does this suggest we're about to see the implementation of the truly get tough policy and if so what are you really after. One of the considerations that entered into our decision to adopt a new monitoring program was the feeling that as one advertiser tends to step over the line of propriety into deceptions that this tends to make his competitors go a step or two further. And unless we act promptly then we have a problem of multiple cases rather than

hitting the first man that goes over the line. We think this will ease our enforcement activities. Is there a particular industry with which you are now primarily concerned. No our responsibilities as you know do you know are very broad and. Cut across all of the industries of the country except those industries that are particularly regulated by other agencies of the federal government. Certainly most of us have heard of your activity in the cigarette area. Perhaps you have a judgement as to whether the rules and regulations of the FTC concerning cigarette advertising has really been effective. And if it has or hasn't. Are you likely to be doing more in this area. Of course there was a statute passed by the Congress four years ago that expires the end of June of this year that prevented commission from acting with respect to any warnings and advertising of cigarettes. It appears now that this legislation which is being considered by the Congress is

probably going to expire and. I'm certain that the commission will step in and take some action with respect to advertising and disclosures of health warnings. Do you think such warnings are effective or is the population as such a mule and such. Well I think that most people are aware of the dangers of cigarettes or many people are. I think really the most effective information that has been made available to the public have been some of the advertising under the equal time provisions of the Cancer Society in the heart society. And if television does not carry any cigarette warning or advertising in the future those ads may go off. So it's not an easy problem. I know you consider that. Do you have problems which are perhaps as great as the cigarette question would you be willing to enumerate a few of those for us.

Certainly the commission is really a bifurcated agency. We have a consumer interest. On the one side and we haven't had a trust interest on the other I think the end of trust interest is as important to consumer protection as the more traditional consumer interests. We are in the process right now of. Conducting a study of the problems of the conglomerate its features its aspects its implications on competition. This study was initiated last July July nine hundred sixty eight at the request of Senator Hart of Michigan who asked that the commission return to its traditional functions which is to study the basic problems of our economy. We're doing that and I think the report which will come out and he series I hope that the first step in that series will be in June of this year and will

continue perhaps monthly or. Every other month thereafter until we cover the area completely. One last question. Do you think it's possible that we're going to over compensate here and the consumer may be overprotected at some point. Possible but not probable. I've been talking with Mr. James M. Nicholson a member of the Federal Trade Commission. Professor Joseph Farr Julan associate dean of the University of Michigan Law School as a presented law in the news recorded by the University of Michigan Broadcasting Service. This is the national educational radio network.