[Federal Register Volume 59, Number 87 (Friday, May 6, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10948]


[[Page Unknown]]

[Federal Register: May 6, 1994]


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FEDERAL TRADE COMMISSION
[File No. 922 3373]

 

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

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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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-based corporation and its 
officer from making any representation about the efficacy or 
performance of any air cleaning, air freshening, or insecticidal 
product, unless the respondents possess and rely upon competent and 
reliable scientific evidence to substantiate the representation.

DATES: Comments must be received on or before July 5, 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:Jeffrey Klurfeld or Linda Badger, 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 Sec. 2.34 of the 
Commission's Rules of Practice (16 CFR 2.34), 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 
Section 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

    The Federal Trade Commission, having initiated an investigation of 
certain acts and practices of Mia Rose Products, Inc., and Mia Palencar 
(``respondents''), and it now appearing that proposed respondents are 
willing to enter into an agreement containing an order to cease and 
desist from the acts and practices being investigated,
    It is hereby agreed by and between respondents and by their duly 
authorized officers, and counsel for the Federal Trade Commission that:
    1. Proposed respondent Mia Rose Products, Inc. is a corporation 
organized, existing, and doing business under and by virtue of the laws 
of the State of California. The principal place of business of this 
corporation is located at 3555-B Harbor Gateway South, Costa Mesa, 
California 92626.
    Proposed respondent Mia Palencar is an officer of the corporate 
respondent. She formulates, directs, and controls the acts and 
practices of the corporate respondent and her address is the same as 
that of corporate respondent.
    2. Proposed respondents admit all the jurisdictional facts set 
forth in the attached draft complaint.
    3. Proposed 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, 5 U.S.C. 504.
    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, together with the attached 
draft complaint, 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 proposed respondents, in which event it 
will take such action as it may consider appropriate, or issue and 
serve its complaint (in such form as the circumstances may require) and 
decision, in disposition of the proceeding.
    5. This agreement is for settlement purposes only and does not 
constitute an admission by proposed respondents of facts, other than 
jurisdictional facts, or of violations of law as alleged in the draft 
complaint here attached.
    6. This agreement contemplates that it it is accepted by the 
Commission, and if such acceptance is not subsequently withdrawn by the 
Commission pursuant to the provisions of Sec. 2.34 of the Commission's 
Rules, the Commission may, without further notice to proposed 
respondents, (a) issue its complaint corresponding in form and 
substance with the attached draft complaint and its decision containing 
the following order to cease and desist in disposition of the 
proceeding and (b) 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 complaint and decision containing the agreed-to order to proposed 
respondents' address as stated in this agreement shall constitute 
service. Proposed 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. Proposed respondents have read the attached draft complaint and 
the following order. Proposed respondents 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. Proposed 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 respondents Mia Rose Products, Inc., a 
corporation, its successors and assigns, and its officers, and Mia 
Palencar, individually and as an officer of said corporation, and 
respondents' agents, representatives, and employees, directly or 
through any corporation, subsidiary, division or other device, in 
connection with the manufacturing, labelling, advertising, promotion, 
offering for sale, sale or distribution of Air Therapy, Pet Air or any 
substantially similar product in or affecting commerce, as ``commerce'' 
is defined in the Federal Trade Commission Act, do forthwith cease and 
desist from representing, in any manner, directly or by implication, 
that:
    A. Such product is effective in cleaning or purifying indoor air.
    B. Such product is more effective in cleaning or purifying indoor 
air than conventional air cleaning products.
    C. Spraying such product into the air eliminates smoke.
    D. Spraying such product into the air eliminates pollen.
    E. Spraying such product into the air eliminates airborne bacteria.
    F. Spraying such product into the air eliminates household insects.
    G. Spraying such product into the air eliminates pet dander.
    H. Spraying such product into the air eliminates rather than masks 
odors.
    For the purposes of this Order, ``substantially similar product'' 
shall mean any air cleaning or air freshening product which contains d-
limonene as its sole active ingredient.
II
    It is further ordered that respondents, Mia Rose Products, Inc., a 
corporation, its successors and assigns, and its officers, and Mia 
Palencar, individually and as an officer of said corporation, and 
respondents' agents, representatives and employees, directly or through 
any corporation, subsidiary, division or other device, in connection 
with the manufacturing, labelling, advertising, promotion, offering for 
sale, sale, or distribution of any air cleaning, air freshening, or 
insecticidal product in or affecting commerce, as ``commerce'' is 
defined in the Federal Trade Commission Act, do forthwith cease and 
desist from representing, in any manner, directly or by implication, 
the efficacy or performance of any such product, unless such 
representation is true, and at the time of making such representation, 
respondents possess and rely upon competent and reliable evidence, 
which when appropriate must be competent and reliable scientific 
evidence, that substantiates such representation. For purposes of this 
Order, ``competent and reliable scientific evidence'' shall mean tests, 
analyses, research, studies or other evidence based on the expertise of 
professionals in the relevant area, that has been conducted and 
evaluated in an objective manner by persons qualified to do so, using 
procedures generally accepted in the profession to yield accurate and 
reliable results.
III
    It is further ordered that for five (5) years after the last date 
of dissemination of any representation covered by this Order, 
respondents, or their successors and assigns, shall maintain and upon 
request make available to the Federal Trade Commission for inspection 
and copying:
    A. All materials that were relied upon in disseminating such 
representation; and
    B. All tests, reports, studies, surveys, demonstrations, or other 
evidence in their possession or control that contradict, qualify, or 
call into question such representation, or the basis relied upon for 
such representation, including complaints from consumers.
IV
    It is further ordered that provisions of this Order shall not apply 
to the printing on cans of Air Therapy or Pet Air which were 
manufactured prior to September 1, 1993, and shipped by respondents to 
distributors or retailers prior to four (4) months from the date of 
issuance of this Order.
V
    It is further ordered that 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.
VI
    It is further ordered that the individual respondent shall, for a 
period of five (5) years after the date of service of this Order upon 
her, promptly notify the Commission, in writing, of her discontinuance 
of her present business or employment and of her affiliation with a new 
business or employment. For each such new affiliation, the notice shall 
include the name and address of the new business or employment, a 
statement of the nature of the new business or employment, and a 
description of respondent's duties and responsibilities in connection 
with the new business or employment.
VII
    It is further ordered that the corporate respondent shall, within 
ten (10) days from the date of service of this Order upon them, 
distribute a copy of this Order to each of its officers, agents, 
representatives, independent contractors, and employees involved in the 
preparation and placement of advertisements or promotional materials, 
or is in communication with customers or prospective customers, or who 
have any responsibilities with respect to the subject matter of this 
Order; and for a period of five (5) years, from the date of issuance of 
this Order, distribute a copy of this Order to all of respondent's 
future such officers, agents, representatives, independent contractors, 
and employees.
VIII
    It is further ordered that respondents shall, within sixty (60) 
days from the date of 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 Mia Rose 
Products, Inc., a California corporation, and Mia Rose Palencar, 
individually and as an officer 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 two products, named ``Air Therapy'' and ``Pet 
Air,'' sold by Mia Rose Products, Inc. (``the company''). Air Therapy 
and Pet Air are air sprays made from the essential oils of citrus fruit 
and/or herbs. These two products have identical ingredients, and are 
both sold for their alleged air freshening, air cleaning and 
insecticidal effects. The Commission's complaint charges that 
respondents' advertising contained false and unsubstantiated 
representations that these products are effective in eliminating indoor 
air pollutants and household insects. Specifically, the complaint 
alleges that respondents falsely represented that: (1) These products 
are effective in cleaning or purifying indoor air; (2) these products 
are more effective in cleaning or purifying indoor air than 
conventional air cleaning products; (3) spraying these products into 
the air eliminates smoke; (4) spraying these products into the air 
eliminates pollen; (5) spraying these products into the air eliminates 
airborne bacteria; (6) spraying Pet Air into the air eliminates pet 
dander; (7) spraying Air Therapy into the air eliminates household 
insects; and (8) spraying these products into the air eliminates, 
rather than masks, odors.
    The proposed consent order contains provisions designed to remedy 
the violations charged and to prevent the respondents from engaging in 
similar acts and practices in the future. Part I of the proposed order 
would prohibit the company from making any of the false claims 
delineated above for Air Therapy, Pet Air, or any products with 
substantially similar ingredients.
    Part II of the proposed order includes broad fencing-in relief, 
requiring the respondents to cease and desist from representing the 
efficacy or performance of any air cleaning, air freshening, or 
insecticidal product unless such representation is true, and at the 
time of making such representation, Mia Rose possesses and relies upon 
competent and reliable evidence, which when appropriate must be 
competent and reliable scientific evidence.
    Part IV of the proposed order is a provision that allows the 
company a period of four months from the date the proposed order 
becomes final before it is obligated to re-word its labeling on its 
current inventory of Air Therapy and Pet Air cans. All other provisions 
of the order become effective immediately upon the Commission's 
issuance of the order as final.
    The proposed order also requires the respondents to maintain 
materials relied upon to substantiate claims covered by the order; to 
provide a copy of the consent agreement to all employees or 
representatives involved in the preparation and placement of the 
company's advertisements, or in communication with the company's 
customers or prospective customers; to notify the Commission of any 
changes in corporate structure that might affect compliance with the 
order; to notify the Commission of certain changes in the business or 
employment of the named individual respondent; and to 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. 94-10948 Filed 5-5-94; 8:45 am]
BILLING CODE 6750-01-M