[Federal Register Volume 62, Number 120 (Monday, June 23, 1997)]
[Notices]
[Pages 33872-33873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16316]


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FEDERAL TRADE COMMISSION

[File No. 962-3045]


Icon Health and Fitness, Inc.; IHF Holdings, Inc.; IHF Capital; 
Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the draft 
complaint that accompanies the consent agreement and the terms of the 
consent order--embodied in the consent agreement--that would settle 
these allegations.

DATES: Comments must be received on or before August 22, 1997.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,

[[Page 33873]]

Room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Laura Fremont, Federal Trade 
Commission, San Francisco Regional Office, 901 Market Street, Suite 
570, San Francisco, CA 94103. (415) 356-5270. Jeffrey Klurfeld, Federal 
Trade Commission, San Francisco Regional Office, 901 Market Street, 
Suite 570, San Francisco, CA 94103. (415) 356-5270.

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 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 June 17, 1997), on 
the World Wide Web, at ``http://www.ftc.gov/os/actions/htm.'' A paper 
copy can be obtained form 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 To Aid Public Comment

    The Federal Trade Commission has accepted, subject to final 
approval, an agreement to a proposed consent order from Icon Health and 
Fitness, Inc., IHF Capital, Inc., and IHF Holdings, Inc. (collectively 
``respondents''), which market exercise equipment. All three companies 
are Delaware corporations.
    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 against respondents alleges that they 
deceptively advertised the ``Cross Walk Treadmill,'' a motorized 
treadmill. The Commission's complaint charges that respondents' 
advertising contained unsubstantiated calorie burn and weight loss 
representations. Specifically, the complaint alleges that the 
respondents did not possess adequate substantiation for the claim that 
users of the Cross Walk Treadmill will burn calories at a rate of up to 
1,100 per hour under conditions of ordinary use. The complaint notes 
that respondents obtained the 1,100 calorie figure from a study that 
measured the rate of calorie burn of persons who had exercised to the 
point of exhaustion. The complaint alleges that such ``maximal 
exertion'' tests are not appropriate measures of the number of calories 
people can burn during ordinary exercise because they measure calorie 
burn at a level of exercise intensity that is unsustainable for more 
than an extremely short period of time. The Commission's complaint also 
charges that the respondents did not possess adequate substantiation 
for the claim that weight loss testimonials from consumers appearing in 
advertisements for the treadmill reflect the typical or ordinary 
experience of members of the public who use the product.
    The proposed consent order contains provisions designed to remedy 
the violations charged and to prevent the respondents from engaging in 
similar acts and practices in the future.
    Part I of the proposed order would prohibit respondents from making 
any claim for the ``Cross Walk Treadmill,'' or for any other exercise 
equipment: (1) About the relative, comparative, or absolute rate at 
which users burn calories, or the number of calories users burn, 
through use of such product; (2) about the relative, comparative, or 
absolute weight loss users achieve through use of such product; (3) 
about the relative, comparative, or absolute amount of fat or fat 
calories users burn through use of such product; or (4) about the 
benefits, performance, or efficacy of any such product with respect to 
calorie burning, fat burning, or weight loss; unless, at the time such 
a claim is made, respondents possess and rely upon competent and 
reliable evidence, which when appropriate must be competent and 
reliable scientific evidence, that substantiates the claim.
    Part II of the proposed order addresses claims made through 
endorsements or testimonials. Under Part II, respondents may make such 
representations if they possess and rely upon competent and reliable 
scientific evidence that substantiates the representations; or 
respondents must disclose either what the generally expected results 
would be for users of the advertised product, or the limited 
applicability of the endorser's experience to what consumers may 
generally expect to achieve. The proposed order's treatment of 
testimonial claims is in accordance with the Commission's ``Guides 
Concerning Use of Endorsements and Testimonials in Advertising,'' 16 
CFR 255.2(a).
    The remaining provisions of the proposed order relate to 
respondents' obligation to make available to the Commission materials 
substantiating claims covered by the order; to notify the Commission of 
changes in the corporations' structure; to provide copies of the order 
to certain personnel of the corporations; and to file compliance 
reports with the Commission. The order also provides that the order 
will terminated 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. 97-16316 Filed 6-20-97; 8:45 am]
BILLING CODE 6750-01-M