[Federal Register Volume 65, Number 71 (Wednesday, April 12, 2000)]
[Notices]
[Pages 19770-19771]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-9076]


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FEDERAL TRADE COMMISSION

[File No. 992 3225]


Michael D. Miller; 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 May 5, 2000.

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

FOR FURTHER INFORMATION CONTACT: Richard Cleland, FTC/S-4002, 600 
Pennsylvania Ave., NW, Washington, DC 20580. (202) 326-3088.

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 thirty (30) 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 April 5, 2000), on the World Wide Web, at ``http://www.ftc.gov/
ftc/formal.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

[[Page 19771]]

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 to a 
proposed consent order from Michael D. Miller, individually and doing 
business as Natural Heritage Enterprises (``Miller'').
    The proposed consent order has been placed on the public record for 
thirty (30) days for receipt of comments by interested persons. 
Comments received during this period will become part of the public 
record. After thirty (30) 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.
    This matter involves alleged unsubstantiated representations that 
``Rene Caisse's Original Herbal Tea Remedy,'' also known as ``Rene 
Caisse's Essiac Tea'' or ``Essiac Tea'' (``Essiac Tea'') is effective 
for treating or curing a number of diseases including, among others, 
cancer, leukemia, diabetes, and AIDS/HIV. The complaint alleges that 
these representations were made through the following means, taken 
together: The visible portion of Miller's Internet Web sites and in the 
metatags and mouseover text. In addition, according to the FTC 
complaint, through the visible portion of his Internet advertisements, 
Miller falsely represented that clinical evidence proves that Essiac 
Tea is an effective cancer cure; that ``recommended [Web] sites'' to 
which respondent's home page links are independent Web sites not 
associated with Miller or Natural Heritage; and, impliedly, that the 
experiences of persons giving testimonials are representative of the 
typical experience of those using the product.
    The proposed consent order contains provisions designed to prevent 
Miller from engaging in similar acts and practices in the future.
    Part I of the order prohibits Miller from representing, without 
competent and reliable scientific evidence substantiating the 
representation, that any Essiac product, service, or program, or any 
other food, drug, or dietary supplement, is effective in the treatment 
or cure of certain enumerated diseases; that the product, service, or 
program is effective in the mitigation, treatment, prevention, or cure 
of any disease or illness; or about the health benefits, performance, 
safety, or efficacy of any such product, service, or program.
    Part II of the order provides that Miller shall not mispresent the 
connection or association between any Web site created and/or 
maintained by Miller and any other Web site, or the existence, 
contents, validity, results, conclusions, or interpretations of any 
test, study, or research.
    Part III of the order provides that Miller shall not represent that 
the experience represented by any user testimonial or endorsement of 
the product, service, or program represents the typical or ordinary 
experience of members of the public who use the product, service, or 
program, unless the representation is substantiated or Miller 
discloses, clearly and prominently, in close proximity to the 
endorsement or testimonial, either what the generally expected results 
would be for users of the product, or the limited applicability of the 
endorser's experience to what consumers may generally expect to 
achieve.
    Parts I, II, and III apply to representations that are either 
express or implied, and specifically apply to representations 
communicated in any manner, including claims made by means of meta tags 
or mouseover text.
    Part IV of the order requires respondent to deliver to the 
Commission a list, in the form of a sworn affidavit, of all consumers 
who purchased an Essiac product from respondent on or after September 
15, 1996, and to send to all such consumers, by first class mail, an 
exact copy of a notice with information about the scientific research 
on Essiac tea.
    Part V of the order requires respondent to pay seventeen thousand 
five hundred dollars ($17,500) in redress. The funds paid by 
respondent, together with any accrued interest, shall, in the 
discretion of the Commission, be used by the Commission to provide 
direct redress to purchasers of an Essiac product in connection with 
the acts or practices alleged in the complaint, and to pay any 
attendant costs of administration; or, if the Commission determines, in 
its sole discretion, that redress to purchasers of this product is 
wholly or partially impracticable or is otherwise unwarranted, any 
funds not so used shall be paid to the United States Treasury.
    Part IV of the order states that representation for any drug that 
is permitted in labeling for such drug under any tentative final or 
final standard promulgated by the Food and Drug Administration, or 
under any new drug application approved by the Food and Drug 
Administration, are not prohibited by the order. The order also does 
not prohibit respondent from making any representation for any product 
that is specifically permitted in labeling for such product by 
regulations promulgated by the Food and Drug Administration pursuant to 
the Nutrition Labeling and Education Act of 1990.
    Parts VII-XII of the order require Miller to keep copies of 
relevant advertisements and materials substantiating or calling into 
question claims made in the advertisements; to provide copies of the 
order to certain of its personnel; to notify the Commission of changes 
in the company that may affect the order; to notify the Commission of 
his current address and employment status, and any changes in address 
or in employment status; and to file compliance reports with the 
Commission Part XIII provides that the order will terminate after 
twenty (20) 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.
Donald S. Clark,
Secretary.
[FR Doc. 00-9076 Filed 4-11-00; 8:45 am]
BILLING CODE 6750-01-M