[Federal Register Volume 63, Number 187 (Monday, September 28, 1998)]
[Notices]
[Pages 51579-51580]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-25844]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

[File No. 972-3136]


Care Technologies, Inc.; Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

-----------------------------------------------------------------------

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 November 27, 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:
Linda Badger or Kerry O'Brien, San Francisco Regional Office, Federal 
Trade Commission, 901 Market St., 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 been placed on the public 
record for a period

[[Page 51580]]

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 September 
18, 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 respondent Care 
Technologies, Inc.
    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 or make final the agreement's proposed 
order.
    Care Technologies, Inc. (``Care'') markets two products for the 
treatment of head lice infestations: ``Clear Lice Egg Remover'' and 
``Clear Lice Killing Shampoo.'' The Commission's complaint alleges that 
Care's advertising for these products included false and 
unsubstantiated claims that: (1) Clear Lice Egg Remover loosens or 
unglues lice eggs from the hair; (2) Clear Lice Killing Shampoo kills 
one hundred percent of lice eggs; and (3) laboratory and field testing 
proves that Clear Lice Egg Remover loosens or unglues lice eggs from 
the hair.
    The complaint alleges that Clear Lice Egg Remover does not loosen 
or unglue lice eggs from the hair. Additionally, the complaint explains 
that Clear Lice Killing Shampoo is based on a pesticide which is not 
one hundred percent effective against lice eggs. Consumers should be 
aware of this limitation and make every effort to physically remove 
lice eggs. In addition, when this type of pediculicide is used, 
consumers are instructed to apply a second treatment in seven to ten 
days to kill any newly hatched lice.
    The proposed consent order contains provisions designed to remedy 
the violations charged and to prevent the respondent from engaging in 
similar acts and practices in the future. Part I of the proposed order 
would prohibit the company from representing that Clear Lice Egg 
Remover, or any substantially similar product, loosens, unglues, or 
otherwise detaches lice eggs from the hair, unless the representation 
is true and, at the time it is made, respondent possesses and relies 
upon competent and reliable scientific evidence that substantiates the 
representation.
    Part II of the proposed order would prohibit the company from 
representing that Clear Lice Killing Shampoo, or any substantially 
similar product, kills one hundred percent of lice eggs, unless the 
representation is true and, at the time it is made, respondent 
possesses and relies upon competent and reliable scientific evidence 
that substantiates the representation.
    Parts III and IV of the order require that, for a period of two 
years, the company make disclosures in its advertisement anytime it 
makes claims regarding the efficacy of Clear Lice Killing Shampoo or 
any substantially similar product. Pursuant to Part III, the following 
disclosure will be required in print ads and promotional materials: 
``Reapplication and egg removal are required to ensure complete 
effectiveness. See label for important information.'' Part IV requires 
the disclosure, ``Two Treatments Required,'' be made in ads 
communicated through an electronic medium, such as television. When the 
ad makes any claims regarding directions for use of the product, this 
disclosure must be in the audio as well as the video portion of the 
advertisement.
    Part V of the proposed order requires the company to have 
scientific support prior to making any claims regarding the efficacy of 
any drug or device for the treatment of lice in humans, or any 
pesticide for treatment of lice. Part VI of the order of the proposed 
order prohibits Care from misrepresenting the existence, contents, 
validity, results, conclusions, or interpretations of any test study or 
research, for any drug or device for the treatment of lice in humans, 
or any pesticide for treatment of lice. Because this matter involves 
drug regulated by the FDA, Part VII of the order includes a safe harbor 
allowing the respondent to make any claim permitted under a new drug 
application, or under a tentative final or final standard promulgated 
by the agency.
    The proposed order also requires the respondent to maintain 
materials relied upon to substantiate claims covered by the order to 
provide copies of the order to certain personnel of the respondent; to 
notify the Commission of any changes in corporate structure that might 
affect compliance with the order; and to file one or more reports 
detailing compliance with the order.
    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.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-25844 Filed 9-25-98; 8:45 am]
BILLING CODE 6750-01-M