Montgomery Ward & Co., Incorporated v. Federal Trade Commission

Montgomery Ward & Co., Incorporated (“Wards”) appeals a Federal Trade Commission (“Commission” or “FTC”) ruling that Wards violated 16 C.F.R. § 702.3 (1982) by failing to provide potential customers with ready access to written warranty information prior to the sale of merchandise priced at over fifteen dollars. As a result of its ruling, the Commission entered a cease and desist order enjoining Wards from further violations.

On appeal, Wards argues that the Commission’s ruling is not based on substantial evidence, that the ruling is an abuse of discretion because it calls for a standard of conduct that is markedly different from the language of the regulation, that the entry of a cease and desist order is inappropriate, and that the order is too vague to be enforceable.

I

FACTS

Wards is a chain of approximately 650 retail department and catalog stores. As a retail seller, Wards is affected by the Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301-12 (the “Act”), which provides, in part, that the FTC “prescribe rules requiring that the terms of any written warranty ... be made available to the consumer (or prospective consumer) prior to the sale of the product .... ” 15 U.S.C. §…