Tobacco Documents Online

p.S 18782 ,° rCC}NQACE55IQN~LL RLCQRD-SEi~ 'E November 17, 1971 r (b) (1) Section 1832 of thesociat sk ,tyMr. Presiiient, in the 1969 committee` Ing method! Is not new on the American. .- Act is amended by adding at.the end thereof mporf~~i theehairman of the committeee financial stage, the recent phenomenall the fonowingnewsubaection: apol tliechairmanoftbe Consumer Suti-growth: is. Therefore, legislationisneed- .. ,(1) There areauthorizedi to be appra- d priated to the Fed'erai Hospitat'. Insurance committee;,said!that-ed, to bring.g order to thisfieid and to TrustFundl6reachRSCalyear (commencing Cigarette advertising. In thee brodcastcontrol.lts enonnousgrowth while.such. with the. Lscat year ending. June 30, , 197a)medla has been by far thee most't offensive statistiCal lrlformation isdevelhped,. My . : such sums ass may bee necessary to assure aa means of' cigarettee promotion. to the public bill:will.accompl(sh this goal. . Dufficteaey of monles in such. Fundlto permitt healthcommunity,h particularly because of I,(kewise;, Mr. Presidenty legislation Is - -themaking.of suchpaymenta therefrom esthe defenselessness of young.people against ' needed.to nrotect theindividual'..7nmanm ' forsuchyear'tosuchFnnd.underany,otheraet4on. - ings. We are dealing.here.with a greatprovisionof.taw." . . In1969,it'wassaid:thatadvertisingin Americandream-aman's'wish.tooper- (2) (A) Section 1837 of such xet. ienewspapers~ and.magazines"can perform ate his own:busin.ess and benefit.from the amended~ by adding at thee end thereof the a socially usefull function by disclosingenterprise'ssuccess, Unfortunately,.. in.n baecu in e • f h . to.anyfunds authorized to be appropriated~ mrwavesasa result of.f congressionall ings m anticipationn of promtsed earn. gare te 8 UCr ismg. s o e C Se agreemen aveve3 e ein sav- 0 td t ff th n t dth section for any iisca.l'year shelll be.in.addition ay, C ~ are autnorizeuuy,awd nny ruLLasauLnanzE¢u tne. ,mpact oI raalo. anQ. television• Cases, persons who enter into a fran.~,` yo.beapproprtatedtosuchPundbythiseub- ,f,d ( -' I hi t'h i g n w au on a ow . reietivee tar andd nicotine levels." farr too manycases, dreams are crushed - (f) Notwittistandinganyg other pro0lsioa Toda o't'tma.ttlle, if; forr any montti, any Indlvid- y, that function is generally being . and lite earnings lost to disreputable : . usi is entitled to the insurance beneatspro- performed by themanufacturers.e franchise corporations. _ Tided under part A, suehmdioidual shanl be: Iit 1969, it was'pointed out that with- As the.scope and intensity of involve- _ deemed'to be enrolled In theinsurancepro- out'a warning inadvertising,'•the publiement becomes broader, there isa shift ,,. gram estabiished bythlsparttor such monthwill have nomeaningfull-defense, evenn in the successofs the enterprise.from thee to ensure the mtegrityof the fi_'an- - "U) For purposes of this's part, anypre-\ ~ ~ . • • Jasehise industry• mi . . um owed byy an mdividual,.who ia deemed. ~ . - By. Mr..HARTI{E: l ec o sue c e ( '°II1 ° . timee hascome for aeomprehensive'a bill . ~~ byy addmgg att bhe end ttiereof' the: followsngg ptoviflean unwarrarlted competitive: ad- aew au5seotmn~ ~ vantage, . whore none should exist . to-.Brotect the:buyer of~ a business, as well~~ , ~ ~ foIIowing.new sentence:'."The precedingpro+rette smoking." . . which read.'•noexperienee necessaryl' ' t. vislonn of this subsection ehali'~ not be app11-Mr, President, my bill would achizve or "we proNide'e everything." In man ~` cable to :ny rndividuat' deemed, under aec- sIl! of the eexperience may be' quiteheipful ~tium 188x.(f),.tn bee enrolled in the.msurance'.goals ealled for iti~ 1969 to pro- ~ ~, pnlgrram estsbllshedibythis part•" ' tectthe. American consumer and would and thefh•anchisor does not supply every- ,. d Preciude a deception which. might weill t~ngasthe.advertdsementindicated.The {~. c e twn ieao f t is e d h A p ngra n r auc '" vertisih mplo -.(H) Seetton isss(c) oi' euob. Act ia. g e yingbhemes'designeG!m: Drospectivebuyersofafranchisearemis-amended by addingg at the end thereof thee obscure the medical verdiot'against ciga- led by suchadvertisement'sh or brochures a164O'°` `°""`n `° `'n` °e°"`"' 'p`~'"'k1eQagainst.amass(ve.onslaught of print ad- corporation.to the franchisee. Too often,u u r de h ' . °'•`°" °"' •°° ~°"""''r '"' 1O` .5. 2870: A billl to providefor regufa- .ny month m.the~ insurance program estab- tion of business franchises,, to uire a nshed by this part, shall be deemed tohave req ..Leentimelypald:•' ~ fulldisclosure'ofthelrature:of:interests (D) SectioW ieA4(a) or6uchActis amCnd-inbusiness francliises„to provide for in- .ed- -creased', . protect.ion.ofthe public interest (t)) in~ paragraph (f)', (f)) by iayerting: In thee sale and operation of busihess"(disiegardmg, from.m such aggregate. any franchises, and to provide for fair com- premumsdeemed too be.pald under seotlon- petition in the negotiaClom of franchise " 1840(f) )'• immediateIy after ••17ust. Fund•', agreement6 Referxed to the: Comn]itteee and (It): by.atrlkiirg,out ••aud" at theend-.an..Commerce„ . . ahareor:. _ . .. . . . _(ll'), in paesgraph(2)',.by atrlking out the- - >rsarrenrss xem ozsci,osnae em• _ period at't the end thereofr and insertmg in Mr. HARTKE. Mr. President, the recent. _. Ileu of auoh period "; and":'d and proliferation.of franchises and the ever- (t1t) by adding, after paaagraph (2) ) thee increasing possibility that many citizens ~-foYlowingnew.parsgraph: ' map bee damaged d permsnentl (a) aGovernment contribution equal to . yby the "900 per cEntum of the aggregate ofthe pre-- grow misrepresentations off frBrlChlsaPs .. mtems deemed'd to be paid under~~sectton.. ]:840~ has~~made~.it quite.clearthat thetime.has :'I ~ (f).° ~ come for the~. Federal Go~vemmentt to By Mr. F1AR:TKE: . . S.2869~ A bill toprovide.for the.inclu- sion in printed mediaadvertising and Yipon' billboards of' a conspicuous. state- -ment of a.cigarettehealth warning. Re- ferred _- ferred to the Committee on Commerce:. . aDVSeirSrtaa'rrn4 reasNarnco•rma .. . aronraar oa acaaa•r•rrs ~Mr.,FiART1SE. Mr. President, enact- mentt of' the. Public HeafthCigacette Smoking Act of 1969. Sriade possible a statutory'ban on television and'radio broadcasting.of cigarette advertising: I Today IarrumtrodLcing a.bill'to make it unlawful forr any person to advertise cigarettes.without depicting the.portion oI the package t)iatt bears the following statement: Warning: The Surgeon" rAeneral Has Ik. termined That Clgarette Smoklhg 1eIDanger- ous to Your.Heaith. Further,, my bill~adapt's the 1969 act - requirements titat't thiss statement. must appear in.conspieuous and legiblety-pein ' contrast by topography,layout, or.color - with other printed matter on the , - package.. . _ protectiudividualsagainst't exploitation by unscrupulous fmnchisecorporations. Wee fmd~ ourselvesin a situation where would-besmafl busitiessmen:n aree ruined before their businesses ever gett under- way.. . .... .. The franchlse business is growing at' an ever-increasing rate. Today there are ever 40,000 franchises that.did not exist lust 5: years ago. Recent years have seen burgeoning franchise salesrecords. For example'„ in 1969i70, the sale offran- ehises reachedd an estimated. $90' billion per year, withan estimated 1,000~fran- chisors and some 500j000, fran.ehisees operatingnationxdde.This'g mammoth marketingg system: now represents some $100 billion in. retail sales annual]y, in l(ght of these ciraumstmnces;.; there are no acaeptablee statutes or uniform codes thatt regulatee the behavior of thee fran- ehisor-franchisee relationship in what has.s become one the Nation's largest Industries> • TheFranr,hise Fair Disclosure. Act, lk an attempt to provide Statee and local governments with a basic outiine and standhrd!of procedure. We must remem- ber that wlitie: franchising as a market- Mr. President, the bill I propase would! compel, all franchiseoperations in the'. United States-including the District, of' Columbia and US. Territories-too bee registered with the Federal Trade Com-. IDission-FTC: - The FTC would be' empowered to re- view all, applications for re; stration todetermine ifthe franchisor has acted.in good faith inhis'.efforts to.producefair ",. and.full disclosure of all facts direct(y'or indirectly related.to the franchise.opera-tiam Registration would also act asas bank for collecting statistical data. on. -. franchising. The disclosureof these facts. would bee made too all ftranchiseesand.to theFTC; except lucases'where the Com- missonhas seen fft to exempt disclosure. Exemptionn fhomm disciosure iss pertnls- sible under the provisions of this bill~ if the:franehisor has demonstratedd himself to be of sohd' financial standing.g andd has operatedt at least 25 f[anchlsesover aspesilied period• The Federal.Trade Com- m(ssion, however, would have the power to requiree franehisol's of'thislatter type to fue fait• and fulI disclosire stat,ements• The bill providess that the disclosure . statement shall containsuch.information . as the Commission may requireIby law, andd any other information the Commis- sion may request off thee franchise corpo- ration. The disclosuree statement would include: Disclosure of: the franchisor's name and. State of incorporation; the names, addresses, and biographical deta concerning each of the franchisor's df- rectors and principal officers; aa state- ment as too whether thedranchisore or any - of its'.directors or officers has been in- volved in.certain legal or quasi-judicial proceedings; and a series of statements ' concernin.g.g franchise fees„ costs, and obligations: The disclosure statement set fortitihi this bill will protect thee individual, and at the same time insure.future progress In the franchise Industry. For too.long, p3613'131