[Federal Register Volume 62, Number 66 (Monday, April 7, 1997)]
[Notices]
[Pages 16582-16583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8801]
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FEDERAL TRADE COMMISSION
[File No. 962-3224]
2943174 Canada Inc., Also d/b/a United Research Center, 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 Quebec-
based company and its president from making health benefits,
performance, or efficacy claims regarding the ``Svelt-PATCH'' or any
other drug or device unless, at the time the representation is made,
the respondents possess and rely upon competent and reliable scientific
evidence that substantiates the representation, and from
misrepresenting the existence, contents, validity, results,
conclusions, or interpretations of any test or study. In addition, the
proposed consent agreement would require the respondents to pay
$375,000 in consumer redress or disgorgement.
DATES: Comments must be received on or before June 6, 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: Michael Bloom or Ronald Waldman,
Federal Trade Commission, New York Regional Office, 150 William St,
13th Floor, New York, N.Y. 10038-2603, (212) 264-1201 or 264-1242.
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, 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
The Federal Trade Commission has accepted, subject to final
approval, an agreement to a proposed Consent Order (``proposed order'')
from 2943174 Canada Inc., also doing business as United Research
Center, Inc., and its principal, Patrice Runner.
The proposed order has been placed on the public record for sixty
(60) days for receipt 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.
This matter concerns print advertisements for proposed respondents'
Svelt-PATCH, a purported weight loss product The Commission's complaint
alleges that proposed respondents engaged in deceptive advertising in
violation of Sections 5 and 12 of the FTC Act by making unsubstantiated
claims that: (1) Svelt-PATCH controls appetite; (2) Svelt-PATCH
significantly increases human metabolism; (3) Svelt-PATCH significantly
reduces body fat; (4) Svelt-PATCH causes significant weight loss; (5)
Svelt-PATCH causes long-term or permanent weight loss; and (6) Svelt-
PATCH lowers serum cholesterol levels.
The complaint further alleges that proposed respondents made a
false claim that clinical evidence proves that Svelt-PATCH causes users
to lose weight.
The proposed order contains provisions designed to remedy the
violations charged and to prevent proposed respondents from engaging in
similar acts in the future.
Paragraph I of the proposed order prohibits proposed respondents
from claiming that Svelt-PATCH or any other product or program: (1)
controls appetite; (2) increases human metabolism; (3) reduces body
fat; (4) causes weight loss; (5) causes long-term or permanent weight
loss; and (6) reduces cholesterol; (7) provides any weight loss, fat
loss, weight regulation, weight control, or weight maintenance benefit,
unless, at the time the
[[Page 16583]]
representation is made, proposed respondents possess and rely upon
competent and reliable scientific evidence that substantiates the
representation.
Paragraph II of the proposed order prohibits proposed respondents
from making any representation for Svelt-PATCH, or any other drug or
device, about the health benefits, performance, or efficacy of such
product unless, at the time the representation is made, proposed
respondents possess and rely upon competent and reliable scientific
evidence that substantiates the representation.
Paragraph III of the proposed order prohibits proposed respondents
from misrepresenting the existence, contents, validity, results,
conclusions, or interpretations of any test, study, or study.
Paragraphs IV of the proposed order provides that nothing in this
order shall prohibit proposed respondents from making any
representation permitted by the Food and Drug Administration.
Paragraph V of the proposed order requires proposed respondents to
pay three hundred and seventy-five thousand dollars ($375,000) in
consumer redress, or if consumer redress is impracticable or
unwarranted, said money shall be payable to the United States Treasury.
Paragraph VI of the proposed order contains recordkeeping
requirements for materials that substantiate, qualify, or contradict
covered claims and requires the proposed respondents to keep and
maintain all advertisements and promotional materials containing any
representation covered by the proposed order. In addition, paragraph
VII requires distribution of a copy of the consent decree to current
and future officers and agents. Further, paragraph VIII provides for
Commission notification upon a change in the corporate respondent.
Paragraph IX requires proposed respondent Patrice Runner to notify the
respondents when he discontinues his current business or employment and
of his affiliation with certain new businesses or employment. The
proposed order also requires the filing of a compliance report
(Paragraph X).
Finally, paragraph XI of the proposed order 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. 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. 97-8801 Filed 4-4-97; 8:45 am]
BILLING CODE 6750-01-M