[Federal Register Volume 59, Number 43 (Friday, March 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-4966]


[[Page Unknown]]

[Federal Register: March 4, 1994]


-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION
[Dkt. 9252]

 

Sonic Technology Products, Inc., et al.; Proposed Consent 
Agreement With Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

-----------------------------------------------------------------------

SUMMARY: In settlement of alleged violations of federal law prohibiting 
unfair acts and practices and unfair methods of competition, this 
consent agreement, accepted subject to final Commission approval, would 
prohibit, among other things, a California company and its officers 
from representing that any ultrasonic pest control device can eliminate 
rodent or flea infestations, and from misrepresenting the results of 
any scientific studies regarding their ultrasonic pest control 
products.

DATES: Comments must be received on or before May 3, 1994.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:
Matthew Gold or David Newman, FTC/San Francisco Regional Office, 901 
Market St., suite 570, San Francisco, CA 94103. (415) 744-7920.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Section 3.25(f) of 
the Commission's Rules of Practice (16 CFR 3.25(f)), notice is hereby 
given that the following consent agreement containing a consent order 
to cease and desist, having been filed with and accepted, subject to 
final approval, by the Commission, has been placed on the public record 
for a period of sixty (60) days. Public comment is invited. Such 
comments or views will be considered by the Commission and will be 
available for inspection and copying at its principal office in 
accordance with Sec. 4.9(b)(6)(ii) of the Commission's Rules of 
Practice (16 CFR 4.9(b)(6)(ii)).

Agreement Containing Consent Order To Cease and Desist

    In the matter of SONIC TECHNOLOGY PRODUCTS, INC. a corporation, 
and W. LOWELL ROBERTSON, individually and as an officer of said 
corporation, and BRIAN PHILLIP JOBE, individually and as an officer 
of said corporation. Docket No. 9252.

    This agreement, by and between Sonic Technology Products, Inc., a 
corporation, and W. Lowell Robertson and Brain Phillip Jobe, 
individually and as officers of Sonic Technology Products, Inc., and 
counsel for the Federal Trade Commission, is entered into in accordance 
with the Commission's Rule governing consent order procedures. 
Accordingly, It is hereby agreed:
    1. Respondent Sonic Technology Products, Inc., is a corporation 
organized, existing, and doing business under and by virtue of the laws 
of the State of Nevada, with its principal place of business located at 
120 Richardson Street, suite C, Grass Valley, California 95945.
    Respondents W. Lowell Robertson and Brain Phillip Jobe are officers 
of said corporation. Individually or in concert with others, they 
formulate, direct, and control the policies, acts, and practices of 
said corporation. Their office and place of business is the same as 
that of said corporation.
    2. Respondents admit all the jurisdictional facts set forth in the 
attached draft complaint.
    3. Respondents waive:
    a. Any further procedural steps;
    b. The requirement that the Commission's decision contain a 
statement of findings of fact and conclusions of law;
    c. All rights to seek judicial review or otherwise to challenge or 
contest the validity of the order entered pursuant to this agreement; 
and
    d. All claims under the Equal Access to Justice Act.
    4. This agreement shall not become part of the public record of the 
proceeding unless and until it is accepted by the Commission. If this 
agreement is accepted by the Commission, it will be placed on the 
public record for a period of sixty (60) days and information in 
respect thereto publicly released. The Commission thereafter may either 
withdraw its acceptance of this agreement and so notify the 
respondents, in which event it will take such action as it may consider 
appropriate, or issue and serve its decision, in disposition of the 
proceeding.
    5. This agreement is for settlement purposes only and does not 
constitute an admission by the respondents that the law has been 
violated as alleged in the attached draft complaint, or that the facts 
alleged in the draft complaint, other than the jurisdictional facts, 
are true.
    6. This agreement contemplates that, if it is accepted by the 
Commission, and if such acceptance is not subsequently withdrawn by the 
Commission pursuant to the provisions of section 3.25(f) of the 
Commission's Rules, the Commission may, without further notice to 
respondents, (1) issue its decision containing the following order to 
cease and desist in disposition of the proceeding, and (2) make 
information public in respect thereto. When so entered, the order to 
cease and desist shall have the same force and effect and may be 
altered, modified or set aside in the same manner and within the same 
time provided by statute for other orders. The order shall become final 
upon service. Delivery by the U.S. Postal Service of the decision 
containing the agreed-to order to respondents' address as stated in 
this agreement shall constitute service. Respondents waive any right 
they may have to any other manner of service. The complaint may be used 
in construing the terms of the order, and no agreement, understanding, 
representation, or interpretation not contained in the order or the 
agreement may be used to vary or contradict the terms of the order.
    7. Respondents have read the complaint and order contemplated 
hereby. They understand that once the order has been issued, they will 
be required to file one or more compliance reports showing that they 
have fully complied with the order. Respondents further understand that 
they may be liable for civil penalties in the amount provided by law 
for each violation of the order after it becomes final.

Order

I
    It is ordered that Sonic Technology Products, Inc., (``Sonic'') a 
corporation, and W. Lowell Robertson and Brian Phillip Jobe, 
individually and as officers of said corporation, and their successors 
and assigns, agents, representatives, and employees, directly or 
through any corporation, subsidiary, division, or other device, in 
connection with the advertising, marketing, offering for sale, sale, or 
distribution of the ``PestChaser,'' the ``Pestrepeller,'' or any other 
ultrasonic pest control device, in or affecting commerce, as 
``commerce'' is defined in the Federal Trade Commission Act, do 
forthwith cease and desist from representing, directly or by 
implication:
    A. That the device can or will eliminate infestations of rodents;
    B. That the device can or will eliminate or reduce infestations of 
fleas; or
    C. That the device can or will repel fleas.
II
    It is further ordered that respondents, their successors and 
assigns, and the corporate respondent's officers, and respondents' 
representatives, agents and employees, directly or through any 
corporation, subsidiary, division or other device, in connection with 
the advertising, promotion, offering for sale, sale or distribution of 
any ultrasonic pest control device, in or affecting commerce, as 
``commerce'' is defined in the Federal Trade Commission Act, do 
forthwith cease and desist from misrepresenting, in any manner, 
directly or by implication, the existence, contents, validity, results, 
conclusions, interpretations or purpose of any test, study or other 
scientific data.
III
    It is further ordered that respondents, their successors and 
assigns, and the corporate respondent's officers, and respondents' 
representatives, agents and employees, directly or through any 
corporation, subsidiary, division or other device, in connection with 
the advertising, promotion, offering for sale, sale or distribution of 
any ultrasonic pest control device, in or affecting commerce, as 
``commerce'' is defined in the Federal Trade Commission Act, do 
forthwith cease and desist from:
    A. Representing, directly or by implication, that the 
``PestChaser,'' the Pestrepeller,'' or any other ultrasonic pest 
control device will increase or assist the effectiveness of a user's 
efforts to eliminate or reduce infestations of rodents or other pests 
when the device is used in conjunction with other pest control methods, 
such as traps or poisons; or
    B. Making, directly or by implication, any representation referring 
or relating to the performance or efficacy of any such device;

unless at the time of making such a representation, respondents possess 
and rely upon competent and reliable scientific evidence that 
substantiates the representation. ``Competent and reliable scientific 
evidence'' shall mean, for purposes of this Order, those tests, 
analyses, research, studies or other evidence conducted and evaluated 
in an objective manner by persons qualified to do so, using procedures 
generally accepted by others in the profession or science to yield 
accurate and reliable results;
    Provided, That nothing in Section III of this Order shall prevent 
respondents from truthfully representing, by use of the words 
``Registered in Canada,'' that the Canadian Department of Agriculture 
has registered the PestChaser, Pestrepeller or any other ultrasonic 
pest control device, and permitted the sale of such device in Canada.
IV
    It is further ordered that respondents shall, within thirty (30) 
days after the date of service of this order, send to each catalog 
company with whom respondents have done business since January 1, 1992, 
a copy of this order and a notice that the catalog company shall 
immediately cease using or relying upon any of respondent's advertising 
or promotional materials containing representations prohibited by this 
order.
V
    It if further ordered that for three (3) years from the date that 
the representation to which they pertain is last disseminated, 
respondents shall maintain and upon request make available to the 
Federal Trade Commission for inspection and copying;
    A. All materials relied upon to substantiate any claim or 
representation covered by this Order; and
    B. All test reports, studies, or other materials in their 
possession or control that contradict, qualify or call into question 
such representation or the basis upon which respondent relied for such 
representation, including complaints from consumers.
VI
    It is further ordered that for three (3) years from the date of 
issuance of this Order, respondents shall maintain and upon request 
make available to the Federal Trade Commission for inspection and 
copying all documents demonstrating or relating to compliance with the 
terms of this Order, including but not limited to:
    A. All advertisements, promotional materials, documents, or other 
materials relating to the offer of sale or sale of any ultrasonic pest 
control device; and
    B. All consumer complaints and requests for refunds.
VII
    It is further ordered that, for three (3) years from the date of 
issuance of this Order, the corporate respondent, its successors and 
assigns, and the individual respondents, shall cause a copy of this 
Order to be distributed to each purchaser of respondents' ultrasonic 
pest control devices for resale, to each present and future managerial 
employee of respondents, and to each present and future saleperson of 
respondents' products, whether they are independent sales agents or 
employees of respondents.
VIII
    It is further ordered that, for five (5) years from the date of 
issuance of this Order, respondents shall notify the Commission at 
least thirty (30) days prior to any proposed change in the corporate 
respondent such as dissolution, assignment, or sale resulting in the 
emergence of a successor corporation, the creation or dissolution or 
subsidiaries, or any other change in the corporation which may affect 
compliance obligations arising out of this Order.
IX
    It is further ordered that, for five (5) years from the date of 
issuance of this Order, each individual respondent shall notify the 
Commission, by submitting a report, in writing, of any change in his 
residence or business address, occupation, place of business, or place 
of employment.
X
    It is further ordered that respondents shall, within sixty (60) 
days after service of this Order upon them, and at such other times as 
the Commission may require, file with the Commission a report, in 
writing, setting forth in detail the manner and form in which they have 
complied with this Order.

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted an agreement, subject to 
final approval, to a proposed consent order from respondents Sonic 
Technology Products, Inc., a Nevada corporation, and W. Lowell 
Robertson and Brian Phillip Jobe, individually and as officers of the 
corporation.
    The proposed consent order has been placed on the public record for 
sixty (60) days for reception of comments by interested persons. 
Comments received during this period will become part of the public 
record. After sixty (60) days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement and take other appropriate action or make 
final the agreement's proposed order.
    This matter concerns the labeling and advertising of the 
PestChaser, a plug-in device that is designed to emit sound in 
ultrasonic frequencies, i.e., frequencies inaudible to the human ear. 
The Commission's complaint charges that respondents' advertising 
contained false and unsubstantiated representations concerning the 
PestChaser's alleged ability to affect rodents and fleas. Specifically, 
the complaint alleges that respondents falsely claimed that the 
PestChaser: (1) Eliminates rodent infestations; and (2) eliminates or 
reduces flea infestations, or repels fleas.
    The complaint further alleges that respondents falsely represented 
that competent and reliable scientific tests have established that the 
above efficacy claims are true. The complaint also alleges that 
respondents lacked substantive for the claim that the PestChaser, when 
used in conjunction with other pest control methods, such as traps and 
poisons, will increase the effectiveness of the user's efforts to 
eliminate or reduce infestations of rodents or other pests.
    The proposed consent order contains provisions designed to remedy 
the violations charged and to prevent respondents from engaging in 
similar acts and practices in the future.
    Part I of the proposed order prohibits respondents from claiming 
that their ultrasonic pest control devices can or will: (1) Eliminate 
infestations of rodents; (2) eliminate or reduce infestations of fleas; 
or (3) repel fleas.
    Part II of the proposed order prohibits respondents from 
misrepresenting the existence, validity, results, conclusions, 
interpretations or purpose of any test, study or other scientific data.
    Part III of the proposed order requires respondents to possess 
competent and reliable scientific evidence for: (1) any claim that any 
ultrasonic pest control device will increase or assist the 
effectiveness of a user's efforts to eliminate or reduce infestations 
of rodents or other pests when the device is used in conjunction with 
other pest control methods; or (2) any representation referring or 
relating to the performance or efficacy of any ultrasonic pest control 
device. Part III further provides that, notwithstanding this 
requirement, respondents may truthfully represent, by use of the words 
``Registered in Canada,'' that the Canadian Department of Agriculture 
has registered their ultrasonic pest control device, and permitted the 
sale of such device in Canada.
    The proposed order also requires respondents to maintain materials 
relied upon to substantiate claims covered by the order, to notify the 
Commission of any changes in corporate structure that might affect 
compliance with the order, and to notify the Commission of certain 
changes in the business or employment of the named individual 
respondents.
    The proposed order also requires respondents to distribute copies 
of the order to any catalog company with whom respondents have done 
business since January 1, 1992, to present and future resellers of 
their ultrasonic pest control devices, and to their managerial 
employees and salespeople. Respondents must also file one or more 
reports detailing compliance with the order.
    The purpose of this analysis is to facilitate public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 94-4966 Filed 3-3-94; 8:45 am]
BILLING CODE 6750-01-M