FOR YOUR INFORMATION...................March 20, 1987



     The Federal Trade Commission staff has recommended that the
New Mexico legislature not enact various bills that could harm
consumers.  In letters to Governor Garrey Carruthers, the FTC
staff addressed the bills, which cover licensing interior
designers, imposing ceilings on interest rates, and restricting
accountants' ability to solicit clients.

Interior Designers

     The Interior Designers Act would establish a licensing
system for interior designers, regulate the practice of interior
design, establish the Interior Design Advisory Board, and
prohibit the use of the title of "interior designer" by
unlicensed persons.  The bill would "allow unlicensed individuals
to render interior design services so long as they do not
identify themselves as 'interior designers.'"  The FTC staff said
that this restriction on using the title is likely to prevent
some individuals from entering the profession, which is likely to
increase the prices of design services and limit consumer choices
when selecting an interior designer.

Interest Ceilings

     Two bills would impose interest rate ceilings on credit card
transactions, and another bill would impose an interest rate
ceiling on all credit transactions.  The FTC staff noted that
while the Commission does not regulate interest rates, it is
"directly and actively involved in other consumer credit
regulations."  According to the staff, "Our experience and the
economic literature on maximum pricing regulations both indicate
that ceilings on interest rates are accompanied by substantial
harm to many consumers."  When interest rates are set at a level
below the competitive rate, lenders reduce the amount of credit
available and compensate for the lower rate by adding or
increasing other charges, such as annual fees and down payments,
the staff noted.

Accountants' Solicitation

     The bill would prohibit accountants from soliciting people
"not known to be seeking public accounting services."  The FTC
staff said that this ban "would prohibit truthful, nondeceptive
communications in circumstances that pose little or no risk of
harm to consumers."  According to the staff, such communication
"promotes the efficient delivery of services and facilitates
purchasing decisions that reflect true consumer preferences."

     The letters represent the views of the FTC's Dallas Regional
Office and the Bureaus of Competition, Consumer Protection, and
Economics, and do not necessarily reflect the views of the
Commission or any individual Commissioner.

                             (More)
     Copies of the letters are available from the FTC's Dallas
Regional Office, 8303 Elmbrook, Suite 140, Dallas, Texas 75247;
214-767-7050; and also from the FTC's Public Reference Branch,
Room 130, 6th St. and Pennsylvania Ave. N.W., Washington, D.C.
20580; 202-326-2222; TTY 202-326-2502.

                              # # #


MEDIA CONTACT:     Susan Ticknor, Office of Public Affairs,
                   202-326-2179

STAFF CONTACT:     Jim Moseley, Dallas Regional Office,
                   214-767-7050

(NMexico)