[Federal Register Volume 66, Number 65 (Wednesday, April 4, 2001)]
[Notices]
[Pages 17898-17899]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-8299]


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FEDERAL TRADE COMMISSION

[File No. 002 3210]


Tru-Vantage International, L.L.C.; 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 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 April 30, 2001.

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

FOR FURTHER INFORMATION CONTACT: Lemuel Dowdy or Walter Gross, FTC/S-
4302, 600 Pennsylvania Ave., NW., Washington, DC 20580. (202) 326-2981 
or 326-3319.

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 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 March 29, 2001), on the 
World Wide Web, ``http://www.ftc.gov/os/2001/03/index.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 
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 Tru-Vantage 
International, L.L.C. (``TVI'' or the ``proposed respondent''). TVI is 
an infomercial producer. It also purchases media time, disseminates its 
infomercials, and fulfills the orders for products featured in the 
infomercials.
    The proposed consent order has been placed on the public record for 
thirty (30) days for reception 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 and take other appropriate action or make 
final the agreement's proposed order.
    This matter concerns advertising and promotional practices related 
to the sale of Snorenz, a purported anti-snoring product. Snorenz is a 
dietary supplement consisting of oils and vitamins that is sprayed on 
the back of the throat of persons who snore. The Commission's complaint 
charges that TVI failed to have a reasonable basis for claims, which 
were contained in infomercials its produced to promote Snorenz, about 
the product's efficacy in (1) reducing or eliminating snoring or the 
sounds of snoring, (2) reducing or eliminating snoring or the sounds of 
snoring for six to eight hours, and (3) treating the symptoms of sleep 
apnea. The complaint also alleges that TVI lacked a reasonable basis to 
substantiate representations that testimonials from consumers who used 
Snorenz represented the typical and ordinary experience of users of the 
product. TVI is also charged with making false claims that clinical 
proof establishes the efficacy of Snorenz. Further the complaint 
alleges that the proposed respondent failed to disclose that the 
product is not intended to treat sleep apnea; that sleep apnea is a 
potentially life-threatening disorder characterized by loud snoring, 
frequent interruptions of sleep, and daytime tiredness; and that 
persons experiencing those symptoms should seek medical attention. 
Finally, the complaint alleges that TVI failed to disclose adequately 
that a material connection existed between a physician who appeared in 
the infomercials to endorse the product and the product's manufacturer 
and marketer, Med Gen, Inc. A separate consent settlement with Med Gen, 
Inc. (File No. 002-3211) is also being placed on the public record for 
comment.

[[Page 17899]]

    Part I of the consent order requires that TVI posses competent and 
reliable scientific evidence to substantiate representations that 
Snorenz or any other food, drug, or dietary supplement reduces or 
eliminates snoring or the sound of snoring; reduces or eliminates 
snoring or the sound of snoring for any specified period of time 
through a single application; or eliminates, reduces or mitigates the 
symptoms of sleep apnea. Part II of the order requires that, for any 
product that has not been shown to be effective in the treatment of 
sleep apnea, TVI must affirmatively disclose, whenever it represents 
that a product is effective in reducing or eliminating snoring or the 
sounds of snoring, a warning statement about sleep apnea and the need 
for physician consultation. Part III of the order requires proposed 
respondent to substantiate any representation about the benefits, 
performance, efficacy, or safety of Snorenz or any other product, 
service or program. Part IV prohibits false claims about scientific 
support for any product, service, or program. Part V requires that, for 
any consumer endorsement or testimonial respondent uses to promote a 
product, service or program, it must either possess competent and 
reliable scientific evidence that the testimonial represents the 
typical or ordinary experience of users or make an affirmative 
disclosure that the testimonial is not typical. Part VI requires an 
affirmative disclosure of any material connection between TVI and any 
endorser or between an endorser and the marketer. Parts VII and VIII of 
the proposed order permit proposed respondent to make certain claims 
for drugs or dietary supplements, respectively, that are permitted in 
labeling under laws and/or regulations administered by the U.S. Food 
and Drug Administration.
    The remainder of the proposed order contains standard requirements 
that respondent maintain advertising and any materials relied upon as 
substantiation for any representation covered by substantiation 
requirements under the order; distribute copies of the order to certain 
company officials and employees; notify the Commission of any charge in 
the corporation that may affect compliance obligations under the order; 
and file one or more reports detailing its compliance with the order. 
Part XIII of the proposed order is a provision whereby the order, 
absent certain circumstances, terminates twenty years from the date of 
issuance.
    This proposed order, if issued in final form, will resolve the 
claims alleged in the complaint against the named respondent. It is not 
the Commission's intent that acceptance of this consent agreement and 
issuance of a final decision and order will release any claims against 
any unnamed persons or entities associated with the conduct described 
in the complaint.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and 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. 01-8299 Filed 4-3-01; 8:45 am]
BILLING CODE 6750-01-M