[Federal Register Volume 64, Number 189 (Thursday, September 30, 1999)]
[Notices]
[Pages 52789-52790]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-25418]


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FEDERAL TRADE COMMISSION

[File No. 992 3158]


Physicians Formula Cosmetics, Inc.; 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 November 29, 1999.

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

FOR FURTHER INFORMATION CONTACT: Elaine Kolish or Kent Howerton, FTC/S-
4302, 600 Pennsylvania. Ave., NW, Washington, DC 20580. (202) 326-3042. 
or 326-3013.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 2.34 of the 
Commission's rules of practice (16 CFR 2.34), notice is

[[Page 52790]]

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 September 13, 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. Ave., 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 
Sec. 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 Physicians 
Formula Cosmetics, 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 and take other appropriate action or make 
final the agreement's proposed order.
    This matter concerns ``Made in USA'' labeling of cosmetics, 
cosmetic brushes,and skin care products. The Commission's complaint 
charges that respondent, by labeling its products as ``Made in USA,'' 
misrepresented that they were all or virtually all made in the United 
States when, in truth and in fact, a significant proportion of their 
components was of foreign origin.
    The proposed consent order contains a provision designed to remedy 
the charges and to prevent the respondent from engaging in similar acts 
and practices in the future. Part I of the proposed order prohibits the 
respondent from misrepresenting the extent to which its products are 
made in the United States. The proposed order would allow respondent to 
represent that its products are made in the United States as long as 
all, or virtually all, of the components of the products are of U.S. 
origin and all, or virtually all, of the labor in manufacturing them is 
performed in the United States.
    The proposed consent order additionally provides that the order 
shall not prohibit the respondent from depleting its inventory of 
products bearing a marking or labeling otherwise prohibited by the 
order and existing on the date the order is signed, in the normal 
course of business, provided that no such existing inventory may be 
shipped later than 120 days after the date the order becomes final.
    Part II of the proposed order requires the respondent to maintain 
materials relied upon in disseminating any representation covered by 
the order. Part III of the proposed order requires the respondent to 
distribute copies of the order to certain company officials and 
employees. Part IV of the proposed order requires the respondent to 
notify the Commission of any change in the corporation that may affect 
compliance obligations under the order. Part V of the proposed order 
requires the respondent to file one or more compliance reports. Part VI 
of the proposed order is a provision whereby the order, absent certain 
circumstances, terminates twenty years from the date of issuance.
    The purpose of this analysis is to facilitate public comment on the 
proposed consent 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. 99-25418 Filed 9-29-99; 8:45 am]
BILLING CODE 6750-01-M