[Federal Register Volume 61, Number 50 (Wednesday, March 13, 1996)]
[Notices]
[Pages 10347-10349]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-5980]



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FEDERAL TRADE COMMISSION
[File No. 932-3310]


Benckiser Consumer Products, Inc.; Consent Agreement With 
Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: 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 the Danbury, Connecticut-based company from making certain 
misleading claims for any of its household cleaning products. The 
consent agreement settles allegations that Benckiser made false and 
misleading ``cause-related marketing'' claims in advertising its 
``EarthRite'' line of household cleaning products. Benckiser claimed 
that a portion of EarthRite's proceeds would be donated to non-profit 
environmental groups, when in fact, according to the FTC, the company 
has not donated any money to such groups since it began selling 
EarthRite products in 1992.

DATES: Comments must be received on or before May 13, 1996.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 6th Street and Pennsylvania Avenue NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:
Thomas B. Carter, Dallas Regional Office, Federal Trade Commission, 100 
N. Central Expressway, Suite 500, Dallas, TX 75201. 214-767-5518.
James R. Golder, Dallas Regional Office, Federal Trade Commission, 100 
N. Central Expressway, Suite 500, Dallas, TX 75201. 214-767-5508.
Gary D. Kennedy, Dallas Regional Office, Federal Trade Commission, 100 
N. Central Expressway, Suite 500, Dallas, TX 75201. 214-767-5512

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and section 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)).

    In the matter of Benckiser Consumer Products, Inc., a 
corporation.

    The Federal Trade Commission having initiated an investigation of 
certain acts and practices of Benckiser Consumer Products, Inc., a 
corporation, and it now appearing that Benckiser Consumer Products, 
Inc., a corporation, hereinafter sometimes referred to as proposed 
respondent, is willing to enter into an agreement containing an order 
to cease and desist from the use of the acts and practices being 
investigated,
    It is hereby agreed by and between Benckiser Consumer Products, 
Inc., by its duly authorized officer, and its attorney, and counsel for 
the Federal Trade Commission that:
    1. Proposed respondent Benckiser Consumer Products, Inc. is a 
corporation organized, existing and doing business under and by virtue 
of the laws of the State of Delaware, with its principal office or 
place of business at Corporate Centre I, 55 Federal Road, Danbury, 
Connecticut 06813-1991.

[[Page 10348]]

    2. Proposed respondent admits all the jurisdictional facts set 
forth in the draft of complaint here attached.
    3. Proposed respondent waives:
    (a) Any further procedural steps;
    (b) The requirement that the Commission's decision contain a 
statement of findings of fact and conclusions of law; and
    (c) All rights to seek judicial review or otherwise to challenge or 
contest the validity of the order entered pursuant to this agreement.
    4. This agreement shall not become a 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 
draft of complaint contemplated thereby, 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 proposed 
respondent, 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 respondent of facts, other than 
jurisdictional facts, or of violations of law as alleged in the draft 
of complaint here attached.
    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 Sec. 2.34 of the Commission's 
Rules, the Commission may, without further notice to proposed 
respondent, (1) issue its complaint corresponding in form and substance 
with the draft of complaint here attached and 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 complaint and decision containing the agreed-to order to proposed 
respondent's address as stated in this agreement shall constitute 
service. Proposed respondent waives any right it might 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 in the agreement may be 
used to vary or contradict the terms of the order.
    7. Proposed respondent has read the proposed complaint and the 
order contemplated hereby. It understands that once the order has been 
issued, it will be required to file one or more compliance reports 
showing that it has fully complied with the order. Proposed respondent 
further understands that it 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 respondent Benckiser Consumer Products, Inc., a 
corporation, its successors and assigns, and its officers, 
representatives, agents, and employees, directly or through any 
corporation, subsidiary, division, or other device, in connection with 
the advertising, labeling, promotion, offering for sale, sale, or 
distribution of any household cleaning 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 any portion of the revenues from the 
sale of such household cleaning product is donated to any organization; 
provided, however, respondent will not be in violation of this Part I 
if it truthfully represents that a portion of the revenues from the 
sale of such household cleaning product is donated to an organization 
and discloses, clearly, prominently, and in close proximity to such 
representation, the method of determining the amount of such donation. 
A disclosure shall be deemed to be ``in close proximity'' to a 
representation if there is a clear and conspicuous cross-reference to 
the disclosure. The use of an asterisk or other symbol shall not 
constitute a clear and conspicuous cross-reference. A cross-reference 
shall be deemed clear and conspicuous if it is of sufficient prominence 
to be readily noticeable and readable by the prospective purchaser when 
examining the advertisement or part of the package on which the 
representation appears.

II

    It is further ordered that for five (5) years after the last date 
of dissemination of any representation covered by this Order, 
respondent, or its 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 its possession or control that contradict, qualify, or call 
into question such representation, or the basis relied upon for such 
representation, including complaints from consumers.

III

    It is further ordered that respondent shall distribute a copy of 
this Order to each of its operating divisions and to each of its 
officers, agents, representatives, or employees engaged in the 
preparation and placement of advertisements, promotional materials, 
product labels or other such sales materials covered by this Order.

IV

    It is further ordered that respondent shall notify the Commission 
at least thirty (30) days prior to any proposed change in the 
corporation such as a dissolution, assignment, or sale resulting in the 
emergence of a successor corporation, the creation or dissolution of 
subsidiaries, or any other change in the corporation which may affect 
compliance obligations under this Order.

V

    It is further ordered that respondent shall, within sixty (60) days 
after service of this Order upon it, 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 it has complied 
with this Order.

VI

    It is further ordered that this Order will terminate twenty (20) 
years from the date of its issuance, or twenty (20) years from the most 
recent date that the United States or the Federal Trade Commission 
files a complaint (with or without an accompanying consent decree) in 
federal court alleging any violation of the Order, whichever comes 
later; provided, however, that the filing of such a complaint will not 
affect the duration of:
    A. Any paragraph in this Order that terminates in less than twenty 
(20) years;
    B. This Order's application to any respondent that is not named as 
a defendant in such complaint; and

[[Page 10349]]

    C. This Order if such complaint is filed after the Order has 
terminated pursuant to this paragraph.
    Provided further, that if such complaint is dismissed or a federal 
court rules that the respondent did not violate any provision of the 
Order, and the dismissal or ruling is either not appealed or upheld on 
appeal, then the Order will terminate according to this paragraph as 
though the complaint was never filed, except that the Order will not 
terminate between the date such complaint is filed and the later of the 
deadline for appealing such dismissal or ruling and the date such 
dismissal or ruling is upheld on appeal.

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 Benckiser Consumer 
Products, Inc. (``Benckiser'').
    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 days, the Commission will again review the 
agreement and the comments received and will decide whether it should 
withdraw from the agreement or make final the agreement's proposed 
order.
    The Commission's complaint in this matter charges Benckiser with 
engaging in unfair or deceptive acts or practices in connection with 
the advertising and promotion of EarthRite household cleaning products. 
According to the complaint, Benckiser falsely represented that it 
donates some portion of the revenue from the sale of EarthRite products 
to non-profit environmental organizations. The complaint also alleges 
that Benckiser falsely represented that, at the times it made the 
donation claim, it relied upon a reasonable basis which substantiated 
the claim.
    The consent order contains provisions designed to remedy the 
violations charged and to prevent Benckiser from engaging in similar 
deceptive acts or practices in the future.
    Part I of the order prohibits Benckiser from representing that any 
portion of the revenue from the sale of any Benckiser household 
cleaning product is donated to any organization unless Benckiser 
discloses, clearly, prominently, and in close proximity to such 
representation, the method of calculating the amount of such donation.
    Part II of the order requires Benckiser to maintain copies of all 
materials relied upon in making any representation covered by the 
order.
    Part III of the order requires Benckiser to distribute copies of 
the order to its operating divisions and to various officers, agents, 
representatives and employees of Benckiser.
    Part IV of the order requires Benckiser to notify the Commission of 
any changes in corporate structure that might affect compliance with 
the order.
    Part V of the order is a ``sunset'' provision, dictating that the 
order will terminate twenty years from the date it is issued or twenty 
years after a complaint is filed in federal court, by either the United 
States or the FTC, alleging any violation of the order.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and it is not intended to constitute an official 
interpretation of the agreement and proposed order, or to modify any of 
their terms.
Donald S. Clark,
Secretary.
[FR Doc. 96-5980 Filed 3-12-96; 8:45 am]
BILLING CODE 6750-01-M