[Federal Register Volume 66, Number 137 (Tuesday, July 17, 2001)]
[Notices]
[Pages 37230-37232]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-17842]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

[File No. 002 3308]


ValueVision International, Inc.; Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

-----------------------------------------------------------------------

SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair

[[Page 37231]]

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 August 13, 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: Daniel Kaufman or Keith Fentonmiller, 
FTC/S-4002, 600 Pennsylvania Ave., NW., Washington, DC 20580. (202) 
326-2675 or 326-2263.

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 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 July 11, 2001), on the 
World Wide Web, at ``http://www.ftc.gov/os/2001/07/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 
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, subject to final 
approval, an agreement containing a consent order from respondent 
ValueVision International, Inc. (``ValueVision''), which operates a 
live, 24-hour per day television home shopping network.
    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 allegedly misleading representations about two 
weight-loss products (WeightPerfect Fat Loss Accelerators and Fight the 
Fat), an internal cleanser (NutriFirm Internal Cleanser), an anti-
cellulite lotion (NutriFirm Perfect Body Solution), and a topical anti-
hair-loss solution (NutriFirm Vitamin H Serum). It concerns 
unsubstantiated health, disease, and weight loss claims made on 
television and in Internet advertising about these products.
    According to the FTC complaint, ValueVision made unsubstantiated 
claims that the WeightPerfect Fat Loss Accelerators: Cause substantial 
loss in body weight or body fat in one to twelve weeks without exercise 
or restricting caloric intake; prevent weight gain regardless of 
exercise or caloric intake; increase the body's metabolic rate and burn 
calories; suppress the appetite; and cause substantial loss in body 
weight or body fat while sleeping. The studies relied upon by 
ValueVision involved subjects who were on restricted calorie diets, 
and/or exercise programs, and the studies did not involve the specific 
formulation of WeightPerfect Fat Loss Accelerators.
    The complaint also alleges that ValueVision made unsubstantiated 
claims that Fight the Fat: enables consumers to lose substantial weight 
without the need for a change in diet or exercise; enables consumers to 
lose substantial weight even if consumers eat substantial amounts of 
foods that are high in fat, including steaks, pizza, hamburgers, 
butter, fried chicken and chocolate; and prevents the human body from 
absorbing substantial amounts of fat consumed. The studies relied upon 
by ValueVision involved subjects who were on restricted calorie diets, 
and the studies did not involve the specific formulation of Fight the 
Fat.
    The complaint also alleges that ValueVision made unsubstantiated 
claims that NutriFirm Perfect Body Solution substantially reduces or 
eliminates cellulite; that NutriFirm Internal Cleanser alleviates 
backaches, muscle aches, headaches, colds, influenza and allergies, and 
improves impaired memory; and that NutriFirm Vitamin H Serum prevents 
or reduces hair-loss, including hair-loss in women after pregnancy.
    The proposed consent order contains provisions designed to prevent 
ValueVision from engaging in similar acts and practices in the future. 
Part I of the proposed order prohibits ValueVision from making any 
unsubstantiated claim (a claim lacking competent and reliable 
scientific evidence) that the WeightPerfect Fat Loss Accelerators, 
Fight the Fat, NutriFirm Perfect Body Solution, or any other food, 
drug, dietary supplement, or cosmetic: Causes substantial weight loss 
or fat loss; causes substantial loss in body weight or body fat without 
exercise or restrictions on caloric intake; prevents weight gain, 
regardless of exercise or caloric intake; increases metabolic rate or 
burns calories; reduces or eliminates cellulite; suppresses the 
appetite; causes substantial loss in body weight or body fat while 
sleeping; prevents the human body from absorbing fat; or enables 
consumers to lose weight even if consumers eat foods that are high in 
fat, including steaks, pizza, hamburgers, butter, fried chicken or 
chocolate.
    Part II of the order prohibits unsubstantiated claims that 
NutriFirm Internal Cleanser, or any other food, drug, or dietary 
supplement, alleviates back aches, muscle aches or headaches; 
alleviates colds, influenza or allergies; or improves impaired memory.
    Part III of the order prohibits unsubstantiated claims that 
NutriFirm Vitamin H Serum, or any other food, drug, dietary supplement 
or cosmetic, prevents or slows the rate of hair-loss, including hair-
loss in women after pregnancy.
    Part IV requires ValueVision to have competent and reliable 
scientific evidence for any claims it makes that any food, drug, 
dietary supplement, cellulite-treatment product or weight-loss program 
can or will cure, treat, or prevent disease, or will have any effect on 
the structure or function of the human body.
    Part V of the order contains a consumer redress provision, 
requiring ValueVision to send a letter to all purchasers of the covered 
products from ValueVision since February 1, 2000, offering a completed 
refund for up to three bottles of the product, including shipping and 
handling charges. ValueVision may choose to offer consumers the choice 
of a refund or a credit toward the purchase of other ValueVision 
merchandise. The order, and appendices 1 through 4 thereto, specify the 
content of the consumer

[[Page 37232]]

letters and of the envelopes in which the refund offer and refund 
checks will be sent. Part V also requires ValueVision to provide the 
Commission with documentation regarding its efforts to provide refunds.
    Part VI is a standard safe harbor for FDA-approved drug claims, and 
Part VII is a standard safe harbor for food or dietary supplement 
claims authorized under the Nutrition Labeling and Education Act of 
1990.
    Part VIII through XI of the order require ValueVision to keep 
copies of relevant advertisements and materials substantiating claims 
made in the advertisements, to provide copies of the order to certain 
of its personnel, to notify the Commission of changes in corporate 
structure, and to file compliance reports with the Commission. Part XII 
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. 01-17842 Filed 7-16-01; 8:45 am]
BILLING CODE 6750-01-M