[Federal Register Volume 63, Number 129 (Tuesday, July 7, 1998)]
[Notices]
[Pages 36694-36695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17934]


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FEDERAL TRADE COMMISSION

[File No. 972-3157]


Herbal Worldwide Holdings Corp., et al.; 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 September 8, 1998.

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: Tom Carter or Susan Arthur, Dallas 
Regional Office, Federal Trade Commission, 100 N. Central Expressway, 
Suite 500, Dallas, TX. 75201. (214) 979-9350.

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 June 26, 1998), on the World Wide Web, at ``http://www.ftc.gov/os/
actions97.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 To Aid Public Comment

    The Federal Trade Commission has accepted an agreement, subject to 
final approval, to a proposed consent order from Herbal Worldwide 
Holdings Corp., Jose Diaz, and Eduardo N. Naranjo (hereinafter 
``respondents''). Respondents are marketers of an over-the-counter 
weight loss product called ``Fattache.''
    The proposed consent order has been placed on the public record for 
sixty (60) days for the 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 any 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.
    This matter has focused on respondents' Spanish-language television 
advertisement for Fattache. The ingredients in Fattache include 
psyllium, chitosan, glucomannan, and apple pectin.
    The proposed complaint alleges that respondents made 
unsubstantiated claims that: (1) Fattache causes weight loss without a 
change in diet: (2) Fattache prevents the absorption of ingested fat; 
(3) Fattache helps eliminate ingested fat before it is absorbed, and 
(4) testimonials from consumers appearing in advertisements for 
Fattache reflect the typical or ordinary experience of

[[Page 36695]]

members of the public who use Fattache.
    Parts I and II of the proposed order prohibit the respondents from 
making the challenged claims, unless at the time of the representation, 
the respondents possess and rely on competent and reliable scientific 
evidence that substantiates the representation. Part II of the order 
also requires that if the respondents do not have substantiation for 
claims made through the use of consumer testimonials, that the 
advertisement disclose the results that users can generally expect to 
achieve, or the limited applicability of the endorser's experience to 
what users can generally expect to achieve.
    Because this matter involves substances that could be regulated by 
the FDA as a food or drug, Part III of the order includes a ``safe 
harbor'' allowing the respondents to make any claims approved in any 
new drug application, or in any tentative final or final standard 
promulgated by that agency. In addition, Part IV of the proposed order 
includes a safe harbor for representations specifically permitted by 
regulations promulgated by the FDA pursuant to the Nutrition Labeling 
and Education Act of 1990.
    The proposed order also requires the respondents to maintain 
materials relied on to substantiate clams covered by the order; to 
provide a copy of the consent agreement to all employees or 
representatives with duties affecting compliance with the terms of the 
order; and to file one or more compliance 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.
Benjamin J. Berman.
Acting Secretary.
[FR Doc. 98-17934 Filed 7-6-98; 8:45 am]
BILLING CODE 6750-01-M