[Federal Register Volume 61, Number 222 (Friday, November 15, 1996)]
[Notices]
[Pages 58561-58562]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29266]


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FEDERAL TRADE COMMISSION
[File No. 912-3336]


Conopco, Inc.; Van Den Bergh Foods Company; 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 or deceptive acts or practices and unfair methods of 
competition, this consent agreement, accepted subject to final 
Commission approval, would prohibit, among other things, the New York 
City-based manufacturer of margins and spreads from making 
unsubstantiated or false health or nutrient content claims for any of 
the margarine and butter products it markets. In addition, in any 
advertisement including a ``no cholesterol'' claim for a margarine or 
spread that contains a significant amount of fat, Conopco has agreed to 
clearly state the total fat content. The agreement settles Commission 
allegations stemming from Conopco's national advertising campaign for 
Promise margarine that focused on consumers' heart health concerns.

DATES: Comments must be received on or before January 14, 1997.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 6th St. and Pa. Ave., N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT: Anne V. Maher, Federal Trade 
Commission, S-4002, 6th and Pennsylvania Ave, NW, Washington, DC 20580. 
(202) 326-2987. Rosemary Rosso, Federal Trade Commission, S-4002, 6th 
and Pennsylvania Ave, NW, Washington, DC 20580. (202) 326-2174.

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 above-captioned 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. The following Analysis to Aid 
Public Comment describes the terms of the consent agreement, and the 
allegations in the accompanying complaint. An electronic copy of the 
full text of the consent agreement package can be obtained from the FTC 
Home page, on the World Wide Web, at ``http://www.ftc.gov/os/actions/
htm.'' A paper copy can be obtained from the FTC Public Reference Room, 
Room H-130, Sixth Street and Pennsylvania Avenue, N.W., Washington, 
D.C. 20580, either in person or by calling (202) 326-3627. 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)).

Analysis of Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted an agreement to a 
proposed consent order from Conopco, Inc. (``Conopco''), a wholly-owned 
subsidiary of Unilever United States, Inc., doing business as Van Den 
Bergh Foods Company.
    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 or make final the agreement's proposed 
order.
    The Commission's complaint in this matter charges Conopco with 
engaging in deceptive advertising of the ``Promise'' line of margarines 
and spreads, which are marketed by Van Den Bergh Foods Company, an 
operating division of Conopco. The complaint challenges television and 
print advertisements for Promise spread, Promise Extra Light margarine 
and Promise Ultra (26%) spread (hereinafter sometimes referred to as 
``Promise margarines and spreads''). According to the complaint, 
television and print advertisements for Promise margarines and spreads 
represented that eating these products would help reduce the risk of 
heart disease. According to the complaint, at the time it made the 
representation, Conopco neither possessed nor relied upon a reasonable 
basis that substantiated such representation.
    The complaint also alleges that advertisements for Promise 
margarines and spreads represented that these foods are low in total 
fat. This representation is alleged to be false and misleading. At the 
time the advertisements were disseminated, Promise spread contained 9.5 
grams of fat per 14 gram serving and 34 grams of fat per 50 grams, 
Promise Extra Light margarine contained 5.6 grams of fat per 14 gram 
serving and 20 grams of fat per 50 grams, and Promise Ultra (26%) 
contained 3.64 grams of fat per 14 gram serving and 13 grams of fat per 
50 grams.
    The complaint also alleges that advertisements for Promise spread 
represented that Promise spread is low in saturated fat. This 
representation is also alleged to be false and misleading. At the time 
the advertisements were disseminated, Promise spread contained 1.6 
grams of saturated fat per 14 gram serving with 17 percent of calories 
derived from saturated fat.
    The complaint also alleges that advertisements for Promise spread 
and Promise Extra Light margarine represented that Promise spread and 
Promise Extra Light margarine have no dietary cholesterol. According to 
the complaint, Conopco failed to adequately disclose that Promise 
spread and Promise Extra Light margarine contain a significant amount 
of total fat. In light of the representation that Promise spread and 
Promise Extra Light margarine have no dietary cholesterol, the total 
fat content of the products would be material to consumers and the 
failure to adequately disclose total fat content is alleged to be 
deceptive.
    The consent order contains provisions designed to remedy the 
violations charged and to prevent Conopco from engaging in similar 
deceptive and unfair acts and practices in the future.
    Part I of the order prohibits Conopco from misrepresenting that 
eating Promise margarines and spreads or any other margarine or spread 
will help to reduce the risk of heart disease or that any margarine or 
spread has the ability to cause or contribute to any risk factor for a 
disease or any health-related condition unless at the time of making 
such representation Conopco possesses and relies upon a reasonable 
basis consisting of competent and reliable

[[Page 58562]]

scientific evidence that substantiates the representation. Under the 
order, any representation relating to the ability of any margarine or 
spread to reduce the risk of heart disease or to cause or contribute to 
any risk factor for a disease or any health-related condition that is 
specifically permitted in labeling by regulations promulgated by the 
Food and Drug Administration pursuant to the Nutrition Labeling and 
Education Act of 1990 will be deemed to have a reasonable basis.
    Part II of the order prohibits Conopco from misrepresenting the 
existence or amount of fat, saturated fat, cholesterol or calories of 
any margarine or spread. Part II also provides that if any 
representation covered by this Part conveys any nutrient content claim 
defined (for purposes of labeling) by any regulation promulgated by the 
Food and Drug Administration, compliance with this Part shall be 
governed by the qualifying amount for such defined claim as set forth 
in that regulation.
    Part IIIA of the order requires Conopco, in any advertisement or 
promotional material for any margarine or spread that contains the 
disclosure level of fat as set forth in final regulations concerning 
cholesterol content claims as promulgated by the Food and Drug 
Administration pursuant to the Nutrition Labeling and Education Act of 
1990, that refers, directly or by implication, to the amount of 
cholesterol in such food, to disclose clearly and prominently the total 
number of grams of fat per serving. Part IIIB of the order requires 
that for three years Conopco also disclose, in any advertisement or 
promotional material for any margarine or spread sold under the Promise 
brand name that contains the aforementioned disclosure level of fat, 
the percentage of calories derived from fat or a statement that the 
margarine or spread is not a ``low fat'' food.
    Part IV provides that the order shall not prohibit representations 
specifically permitted in labeling for any margarine or spread by 
regulations promulgated by the Food and Drug Administration pursuant to 
the Nutrition Labeling and Education Act of 1990.
    Part V defines the terms used in the order. Part VI requires 
Conopco to maintain copies of all material relating to advertisements 
covered by the order and all documents relating to substantiation of 
advertising claims covered by the order. Part VII requires Conopco to 
notify the Commission of any changes in the corporate structure that 
might affect compliance with the order. Part VIII requires Conopco to 
distribute copies of the order to certain company officials and 
employees and certain other representatives and agents of the company. 
Part IX provides that the order will terminate after twenty years under 
certain circumstances. Part X requires Conopco to file with the 
Commission one or more reports detailing compliance with 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 in any 
way their terms.
Donald S. Clark,
Secretary.
[FR Doc. 96-29266 Filed 11-14-96; 8:45 am]
BILLING CODE 6750-01-P