[Federal Register Volume 62, Number 66 (Monday, April 7, 1997)]
[Notices]
[Pages 16583-16584]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8799]
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FEDERAL TRADE COMMISSION
[File No. 912-3220]
Dean Distributors, Inc., et al., d/b/a Advanced Health Systems,
Cambridge Direct Sales, and Medibase; 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 require, among other things, the California-
based companies, which market low calorie and very low calorie diet
(VLCD) programs, to possess a reasonable basis for any future claims
regarding weight loss or weight loss maintenance, and to clearly and
prominently disclose in any representation regarding the safety of
respondent's VLCD diet programs that physician monitoring is required
to minimize the potential for health risks, namely development of
gallbladder disease.
DATES: Comments must be received on or before June 6, 1997.
ADDRESSES: Comments should be directed to: FTC/Office of Secretary,
Room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Walter Gross or J. Reilly Dolan, FTC/H-200, Washington, DC 20580. (202)
326-3319 or 326-3292.
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 complaint. An electronic copy of the full text of
the consent agreement package can be obtained from the FTC Home page
(for March 25, 1997), 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 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
The Federal Trade Commission has accepted an agreement to a
proposed consent order from Dean Distributors, Inc., a corporation
doing business as advanced Health Care Systems, Cambridge Direct Sales
and Medibase. Proposed respondent markets low calorie and very low
calorie diet programs through a multi-level distribution system and
directly to independent physicians.
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 will decide whether it should withdraw from the agreement
or make final the agreement's proposed order.
The Commission has alleged that proposed respondent has made false
and unsubstantiated claims in its advertising, promotional and sales
materials that are likely to mislead consumers as to: (1) the
likelihood of success in achieving and maintaining weight reduction;
and (2) the health risk associated with rapid weight loss. Proposed
respondent has represented, through consumer endorsements, that its
diet programs produce successful results. The consumers featured in
these testimonials purportedly achieved remarkable success in reaching
a desired weight, and in changing their appearance. Through these
consumer endorsements, proposed respondent has represented that he
success achieved by such consumers in reaching their weight loss goal
reflects the typical or ordinary experiences of participants of
respondent's weight loss programs. The Commission has alleged that
proposed respondent had failed to substantiate the claim that the
weight loss success experienced by persons featured in these
testimonial advertisements is representative of what consumers will
generally achieve with the products.
[[Page 16584]]
The Commission has also alleged that proposed respondent has
represented that the typical consumer of its products and services is
successful in maintaining achieved weight loss, or, at a minimum, a
substantial portion of achieved weight loss, over time. Proposed
respondent has not provided adequate substantiation to support
representations regarding the long-term effectiveness of the weight
loss products and programs. Furthermore, according to the Commission's
complaint, proposed respondent has represented that its maintenance
claims were based in part upon a valid statistical analysis of its
customers. However, the Commission has alleged that the analysis in
question was not based upon a valid statistical sample of proposed
respondent's customers.
Finally, the Commission has alleged that proposed respondent has
represented that its physician monitored very-low-calorie diet programs
are free of serious health risks without disclosing that physician
monitoring is necessary to minimize the risk of serious health
complications associated with very-low calorie diet programs. Further
the Commission has alleged that in materials prepared specifically for
physicians of patients using the very-low-calorie diets, proposed
respondent failed to list serious adverse heath complications that have
been associated with very-low-calorie diets.
The proposed consent order seeks to address the alleged
misrepresentations cited in the accompanying complaint by requiring
proposed respondents to possess a reasonable basis for any future
claims regarding weight loss or weight loss maintenance. The proposed
consent order also requires proposed respondent to clearly and
prominently disclose in any representation regarding the safety of
respondent's VLCD diet programs that physician monitoring is required
to minimize the potential for health risks, namely development of
gallbladder disease.
The purpose of this analysis is to facilitate public comment on the
proposed order, and 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. 97-8799 Filed 4-4-97; 8:45 am]
BILLING CODE 6750-01-M