[Federal Register Volume 64, Number 126 (Thursday, July 1, 1999)]
[Notices]
[Pages 35665-35666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-16710]


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FEDERAL TRADE COMMISSION

[File No. 9823175]


Pain Stops Here!, Inc., 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 August 30, 1999.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 600 Pennsylvania Avenue, NW, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: Christa V.A. Vecchi, FTC/H-263, 600 
Pennsylvania Avenue, NW, Washington, DC 20580, (202) 326-3166.

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 24, 1999), 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, NW, Washington, DC 
20580, either in person or by calling (202) 326-3627.
    Public comment is invited. Comments should be directed to: FTC/
Office of the Secretary, Room 159, 600 Pennsylvania Avenue, NW, 
Washington, DC 20580. Two paper copies of each comment should be filed, 
and should be accompanied, if possible, by a 3\1/2\ inch diskette 
containing an electronic copy of the comment. 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 (``proposed order'') 
from Pain Stops Here! Inc. and Sande R. Caplin, the President and 
majority shareholder of the corporation.
    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 will decide whether it should withdraw from the agreement 
or make final the agreement's proposed order.
    This matter concerns Internet and print advertisements disseminated 
directly to consumers as well as through distributors and retail 
stores, including drug store, health food stores, sporting goods 
stores, health care products stores, and private individuals working 
out of their homes. These products contain magnets that purportedly 
treat or alleviate a variety of medical problems, including cancer, 
liver disease, heart disease, and arthritis. Proposed respondents' 
magnetic products include an assortment of devices, such as sleep pad, 
pillow insert, and magnetized water ceramic magnetic ring.
    The Commission's complaint charges that the proposed respondents 
engaged in deceptive advertising in violation of Sections 5 and 12 of 
the FTC Act by making unsubstantiated claims that its magnetic therapy 
products: (1) Are effective in treating cancer; (2) cure liver disease 
and other diseased internal organs; (3) are effective in reducing 
cholesterol deposits in the arteries and veins and normalizing the 
circulatory system; (4) are effective in breaking up kidney and 
gallbladder stones and in the prevention of further formation of 
stones; (5) are effective in treating infectious disease, urinary 
infection, gastric ulcers, dysentery, diarrhea, skin ulcers, and bed 
sores; (6) prevent and reverse heart disease, circulatory disease, 
arthritis, auto-immune illness, neuro-degenerative disease, and 
allergies; (7) are effective in treating arthritis, bursitis, 
tendinitis, sprains, strains, sciatica, lameness, navicular, and foot 
growth problems in animals; (8) stimulate the body's production of

[[Page 35666]]

the hormone Melatonin; (9) are effective in treating pain caused by 
conditions such as arthritis, bursitis, and sciatica; and (10) are 
effective in stimulating growth in plants causing them to grow 20 to 40 
percent faster.
    The complaint further alleges that proposed respondents represented 
that studies prove that proposed respondents' magnetic products are 
effective in the mitigation and treatment of pain caused by conditions 
such as arthritis, bursitis, and sciatica. The proposed complaint 
alleges that respondents lack substantiation for this claim.
    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 representing that their magnetic therapy products (defined as any 
product that contains a magnet of any kind purporting to relieve the 
symptoms of, treat, mitigate, cure, relieve, heal or alleviate any 
disease or health condition): (1) Are effective in the treatment of 
cancer; (2) cure liver disease or other diseased internal organs; (3) 
are effective in the reduction of cholesterol deposits in the arteries 
and veins or normalizing the circulatory system; (4) are effective in 
breaking up kidney or gallbladder stones or in the prevention of 
further formation of stones; (5) are effective in the mitigation or 
treatment of infectious diseases, urinary infection, gastric ulcers, 
dysentery, diarrhea, skin ulcers, or bed sores; (6) prevent or reverse 
heart disease, circulatory disease, arthritis, auto-immune illness, 
neuro-degenerative disease, or allergies; (7) are effective in the 
mitigation or treatment of arthritis, bursitis, tendinitis, sprains, 
strains, sciatica, lameness, navicular, and foot growth problems in 
animals; (8) stimulate the body's production of the hormone Melatonin; 
(9) are effective in the mitigation or treatment of pain caused by 
conditions such as arthritis, bursitis, and sciatica; or (10) are 
effective in stimulating significant growth in plants, unless, at the 
time the representation is made, respondents possess and rely upon 
competent and reliable scientific evidence that substantiates the 
representation.
    Paragraph II of the proposed order prohibits proposed respondents 
from misrepresenting the existence, contents, validity, results, 
conclusions, or interpretations of any test, study, or research.
    Paragraph III of the proposed order prohibits proposed respondents 
from making any representation about the health benefits, performance, 
or efficacy of any product or program, unless, at the time the 
representation is made, respondents possess and rely upon competent and 
reliable scientific evidence that substantiates the representation.
    Paragraph IV of the proposed order prohibits proposed respondents 
from: (1) Disseminating to any distributor any material containing any 
claims prohibited by the order; and (2) authorizing any distributor to 
make any representations prohibited by the order. In addition, 
Paragraph IV requires proposed respondents to (1) send a notice to 
distributors with whom they have done business since January 1, 1998, 
announcing their settlement with the FTC, and requiring distributors to 
submit all proposed promotional and marketing materials to proposed 
respondents for review prior to their dissemination; (2) send, for a 
period of three years, the same notice to future distributors with whom 
proposed respondents do business; (3) monitor distributors' promotional 
activities; (4) terminate, as appropriate, the right of any distributor 
to market PSH products or programs who continues to use promotional 
materials or make oral representations that violate the order, (5) 
provide the FTC all relevant information about the distributors who 
continue to engage in activities that violate the order, and (6) review 
all marketing materials before distributors disseminate them to the 
public.
    Paragraph V contains record keeping requirements for the 
notification letters sent to distributors, communications between 
respondents and distributors referring or relating to the requirements 
of Paragraph IV of the order, and any other materials created pursuant 
to Paragraph IV.
    Paragraph VI of the proposed order contains record keeping 
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 respondents. 
Paragraph IX requires proposed respondent Sande R. Caplin to notify the 
Commission when he discontinues his current business or employment and 
of his affiliation with any new business or employment. The proposed 
order, in Paragraph X, also requires the filing of a compliance report.
    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, 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.
Benjamin I. Berman,
Acting Secretary.
[FR Doc. 99-16710 Filed 6-30-99; 8:45 am]
BILLING CODE 6750-01-M