[Federal Register Volume 63, Number 241 (Wednesday, December 16, 1998)]
[Notices]
[Pages 69292-69293]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-33283]
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FEDERAL TRADE COMMISSION
[File No. 9623270]
Max F. James; 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 agrement--that would settle
these allegations.
DATES: Comments must be received on or before February 16, 1999.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 600 PA Ave., N.W., Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT:
Matthew Gold or Sylvia Kundig, San Francisco Regional Office, Federal
Trade Commission, 901 Market Street, Suite 570, San Francisco,
California 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 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 December 8, 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, 600 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 to Aid Public Comment
The Federal Trade Commission has accepted an agreement, subject to
final approval, to a proposed consent order from Max F. James
(hereinafter ``James'' or ``respondent''). James is a distributor of
nutritional supplements for New Vision International, Inc., a multi-
level marketing company. In a separate action, the Commission has also
accepted a similar agreement involving New Vision International, Inc.,
an affiliated company, and two individuals.
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 James' participation in the creation and
dissemination of advertisements for a regimen of nutritional
supplements that he has called ``God's Recipe.'' The advertisements
claimed that God's Recipe could mitigate or cure the effects of
Attention Deficit Disorder or Attention Deficit Hyperactivity Disorder.
The proposed complaint alleges that James could not substantiate
the following claims: (1) That God's Recipe can cure, prevent, treat or
mitigate Attention Deficit Disorder or its symptoms; (2) that God's
Recipe can cure, prevent, treat or mitigate Attention Deficit
Hyperactivity Disorder or its symptoms; (3) that God's Recipe is an
effective alternative treatment to the prescription drug Ritalin for
Attention Deficit Disorder and Attention Deficit Hyperactivity
Disorder; and (4) that testimonials from consumers appearing in the
advertisements for God's Recipe reflect the typical or ordinary
experience of members of the public whose children have used the
product.
Part I of the proposed consent order prohibits James, when
advertising God's Recipe or any other food, drug or dietary
supplements, from making claims (1) through (3), above, unless the
claim is substantiated at the time it is made. Part II of the proposed
order addresses
[[Page 69293]]
claims made through endorsements or testimonials. Under Part II,
respondent may make such representations if he possesses and relies
upon competent and reliable evidence that substantiates the
representations; or the respondent must disclose either what the
generally expected results would be for users of the advertised
products, 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).
Part III of the proposed order prohibits James from making
unsubstantiated claims about the safety of any food, drug or dietary
supplement, or about the ability of such product to treat, cure,
alleviate the symptoms of, prevent, or reduce the risk of developing
any disease or disorder. Part IV of the proposed order contains
language permitting James to make drug claims that have been approved
by the FDA pursuant to either a new drug application or a tentative
final or final standard. Part V states that James would be permitted to
make claims that the FDA has approved pursuant to the Nutrition
Labeling and Education Act of 1990.
Part VI of the proposed order requires James to retain, and make
available to the Commission upon request, all advertisements and
promotional materials containing any representation covered by the
order, as well as any materials that he relied upon in disseminating
the representation and any materials that contradict, qualify, or call
into question the representation.
Part VII of the proposed order requires James to distribute the
order to all current and future employees, agents and representatives
having responsibilities under the order. Part VII would permit James to
distribute a summary, in the form of a letter attached to the order as
Appendix A, in lieu of the actual order.
The remainder of the proposed order contains standard requirements
that James notify the Commission of changes in their employments
status, and that he file one or more reports detailing his 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.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 98-33283 Filed 12-15-98; 8:45 am]
BILLING CODE 6750-01-M