[Federal Register Volume 66, Number 152 (Tuesday, August 7, 2001)]
[Notices]
[Pages 41237-41238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-19724]


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FEDERAL TRADE COMMISSION

[Docket No. 9294]


Natural Organics, 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 complaint 
previously issued 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, 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: Matthew Gold or Kerry O'Brien, Federal 
Trade Commission, Western Region--San Francisco Office, 901 Market St., 
Suite 570, San Francisco, CA 94103. (415) 848-5176 or 848-5189.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and Sec. 3.25(f) of 
the Commission's rules of practice (16 CFR 3.25(f), 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 31, 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 an agreement to a 
proposed consent order with Natural Organics, Inc. and Gerald A. 
Kessler, the principal who controlled this corporation (referred to 
collectively as ``Respondents''). The agreement would settle a complain 
by the Federal Trade Commission that Respondents engaged in unfair or 
deceptive acts or practices in violation of sections 5 and 12 of the 
Federal Trade Commission Act.
    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 or make final the agreement's proposed 
order.
    This matter concerns advertising representations made about Pedi-
Active A.D.D., a dietary supplement. The administrative complain 
alleged that Respondents violated the FTC Act by disseminating 
advertisements that made unsubstantiated efficacy claims about the 
ability of Pedi-Active A.D.D. to treat Attention Deficit Hyperactivity 
Disorder (``ADHD'') or certain symptoms of that disorder. Specifically, 
the complaint alleged that Respondents made unsubstantiated claims that 
Pedi-Active A.D.D. will: (1) Improve the attention span of children who 
have difficulty focusing on school work; (2) improve the scholastic 
performance of children who have difficulty focusing on school work; 
(3) improve the attention span of children who suffer from ADHD; (4) 
improve the scholastic performance of children who suffer from ADHD; 
and (5) treat or mitigate ADHD or its symptoms.
    The proposed consent order contains provisions designed to prevent 
Respondents from engaging in acts and practices similar to those 
alleged in the complain in the future. Part I of the proposed consent 
order prohibits Respondents from claiming that Pedi-Active A.D.D. or 
any other food, drug, or dietary supplement (1) will improve the 
attention span of children who have difficulty focusing on school work, 
(2) will improve the scholastic performance of children who have 
difficulty focusing on school work, (30 will improve the attention span 
of children who suffer from ADHD, (4) will improve the scholastic 
performance of children who suffer from ADHD, or (5) can treat or 
mitigate ADHD in children, unless they posses competent and reliable 
scientific evidence substantiating the claim. In addition, Part II of 
the proposed consent order requires Respondents to possess competent 
and reliable scientific

[[Page 41238]]

evidence before they market a product for children using the name 
``A.D.D.'' or any other name that represents that the product can treat 
or mitigate ADHD. Finally, Part III of the proposed order prohibits 
Respondents from making any representation about the ability of any 
food, drug or dietary supplement marketed for children to treat or cure 
any disease or mental disorder, unless they possess competent and 
reliable scientific evidence.
    Part IV of the proposed order states that Respondents will be 
permitted to make claims that the FDA has approved pursuant to the 
Nutrition Labeling and Education Act of 1990, or pursuant to sections 
303-304 of the Food and Drug Administration Modernization Act of 1997.
    Part V of the proposed order states that nothing in the order 
constitutes a waiver of Respondents' First Amendment rights.
    As set out in Part VI of the proposed order, the proposed consent 
order will not apply to any product sold or distributed to consumers by 
third parties under private labeling agreements with Respondents, 
provided Respondents do not participate in any manner in the funding, 
preparation or dissemination of the product's advertising.
    The remainder of the proposed consent order contains provisions 
regarding distribution of the order, record-keeping, notification of 
changes in corporate status or employment, termination of the order, 
and the filing of a compliance report.
    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. 01-19724 Filed 8-6-01; 8:45 am]
BILLING CODE 6750-01-M