[Federal Register Volume 61, Number 242 (Monday, December 16, 1996)]
[Notices]
[Pages 66040-66041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31802]


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FEDERAL TRADE COMMISSION
[File No. 962-3047]


Comtrad Industries, Inc.; 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 
Midlothian, Virginia-based company from misrepresenting, in connection 
with any product for use in the storage of food, the product's 
comparative or absolute ability to refrigerate or cool food items or 
medicines or to maintain proper cold storage temperatures; the 
product's comparative or absolute ability to heat or warm food items; 
the product's comparative or absolute ability to hold its cooling 
capacity after being unplugged from a power source; or the effect of 
operating the product off a car battery when the car is not running. 
The agreement settles allegations stemming from advertisements for 
Comtrad's ``Koolatron'' thermo-electric cooler.

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

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:

Phoebe D. Morse, Federal Trade Commission, Boston Regional Office, 101 
Merrimac Street, Suite 810, Boston, MA 02114-4719. (617) 424-5960
John T. Dugan, Federal Trade Commission, Boston Regional Office, 101 
Merrimac Street, Suite 810, Boston, MA 02114-4719. (617) 424-5960

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 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 
Commission Actions section of the FTC Home Page (for December 9, 1996), 
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, NW., Washington, DC 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 Sec. 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 Comtrad Industries, Inc. The proposed 
respondent is a marketer of ``Koolatron,'' a portable electronic food 
cooler that doubles as a food warmer.
    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.
    The Commission's complaint charges that the proposed respondent 
made the following false and unsubstantiated representations about 
Koolatron: (1) Koolatron is as effective at cooling food items and 
medicines as a home refrigerator; (2) Koolatron will effectively cool 
down warm items and heat up cold items; (3) once unplugged from a power 
source, Koolatron will hold its cooling capacity for 24 hours; and (4) 
operating Koolatron off a car battery when the car is not running will 
result in only a minimal drain off the car's battery. The complaint 
also charges that the proposed respondents represented that Koolatron 
is effective, useful, or appropriate for cooling or heating food items, 
but failed to disclose that in some circumstances Koolatron

[[Page 66041]]

may not keep perishable food items sufficiently cold to prevent the 
growth of harmful bacteria on the food, or that Koolatron's maximum 
internal heating temperature is not high enough to kill or prevent the 
growth of certain harmful bacteria on perishable food items.
    The proposed consent order contains provisions designed to remedy 
the violations charged and to prevent proposed respondent from engaging 
in similar acts in the future.
    Part I of the proposed order, in connection with any product for 
use in the storage of food, prohibits the proposed respondent from 
misrepresenting: (1) The comparative or absolute ability of such 
product to refrigerate or cool food items or medicines or to maintain 
proper cold storage temperatures; (2) the comparative or absolute 
ability of such product to heat or warm food items; (3) the comparative 
or absolute ability of such product to hold its cooling capacity after 
being unplugged from a power source; or (4) the effect of operating 
such product off a car battery when the car is not running, including 
the amount of power used by the product in such circumstances or the 
potential for such use to drain the car battery of all power. Part II, 
in connection with any product for use in the storage of food, 
prohibits any representation about the benefits, performance, efficacy, 
or safety of such product, unless proposed respondent possesses and 
relies upon competent and reliable evidence, which when appropriate 
must be competent and reliable scientific evidence, that substantiates 
the representation.
    Part III of the proposed order, in connection with Koolatron or any 
substantially similar product, prohibits any representation about the 
effectiveness, usefulness, or appropriateness of such product for 
cooling food items, unless proposed respondent also discloses that such 
product may not keep perishable food items sufficiently cold in some 
circumstances to prevent the growth of harmful bacteria on the food. 
Part IV of the proposed order, in connection with Koolatron or any 
substantially similar product, prohibits any representation about the 
effectiveness, usefulness, or appropriateness of such product for 
heating or warming food items, unless proposed respondent also 
discloses that use of the product for such purposes may pose a risk of 
buildup of harmful bacteria on the food.
    The proposed order (Part V) contains record keeping requirements 
for materials that substantiate, qualify, or contradict covered claims 
and requires the proposed respondent to keep and maintain all 
advertisements and promotional materials containing any representation 
covered by the proposed order. In addition, the proposed order (Part 
VI) requires distribution of a copy of the consent decree to current 
and future officers and agents.
    Part VII provides for Commission notification upon a change in the 
corporate respondent. The proposed order also requires the filing of 
compliance report(s) (Part VIII). Finally, Part IX provides for the 
termination of the order after twenty years under certain 
circumstances.
    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. 96-31802 Filed 12-13-96; 8:45 am]
BILLING CODE 6750-01-P