[Federal Register Volume 67, Number 37 (Monday, February 25, 2002)]
[Notices]
[Pages 8539-8541]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-4375]


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FEDERAL TRADE COMMISSION

[File No. 992 3034]


TechnoBrands, 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 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 March 30, 2002.

ADDRESSES: Comments filed in paper form should be directed to: FTC/
Office of the Secretary, Room 159-H, 600 Pennsylvania Avenue, NW,. 
Washington, DC 20580. Comments filed in electronic form should be 
directed to: [email protected], as prescribed below.

FOR FURTHER INFORMATION CONTACT: James Dolan or Heather Hippsley, 
Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW., 
Washington, DC 20580, (202) 326-3292 or 326-3285.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), 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, 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 February 19, 2002), on the World Wide Web, at http://

[[Page 8540]]

www.ftc.gov/os/2002/02/index.htm. A paper copy can be obtained from the 
FTC Public Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW., 
Washington, DC 20580, either in person or by calling (202) 326-2222.
    Public comments are invited, and may be filed with the Commission 
in either paper or electronic form. Comments filed in paper form should 
be directed to: FTC/Office of the Secretary, Room 159-H, 600 
Pennsylvania Avenue, NW., Washington, DC 20580. If a comment contains 
nonpublic information, it must be filed in paper form, and the first 
page of the document must be clearly labeled ``confidential.'' Comments 
that do not contain any nonpublic information may instead be filed in 
electronic form (in ASCII format, WordPerfect, or Microsoft Word) as 
part of or as an attachment to email messages directed to the following 
e-mail box: [email protected]. Such comments 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 to a proposed consent order from respondents 
TechnoBrands, Inc., and Charles J. Anton, individually and as president 
of the corporate respondent.
    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 practices related to the advertising, offering 
for sale, sale, and distribution of various products to the public, 
including the Hollywood 48-Hour Miracle Diet, a liquid diet; the 
Enforma System, a diet product combination consisting primarily of 
chitosan and pyruvate; the BMI Magnetic Kit, a set of magnets with 
purported analgesic properties; the Nisim New Hair Biofactors System, a 
purported hair-growth product; the Clarion Ionic Filter Ceiling Fan, an 
air-cleaning device; and the Sila Ionic Air Purifier, another air-
cleaning device. The Commission's complaint charges that respondents 
violated the Federal Trade Commission Act, 15 U.S.C. 41 et seq., by 
making numerous representations that were false and/or for which they 
lacked a reasonable basis of substantiation. These representations 
concerned: the weight loss that consumers can achieve with the 
Hollywood Diet and Enforma; the pain relief that can be achieved with 
the BMI Magnetic Kit; the effectiveness of Nisim in stopping hair loss 
and stimulating hair growth; the ability of the air cleaners to 
eliminate various pollutants from indoor space; the health benefits of 
using the Clarion Fan; the scientific evidence for the efficacy of some 
of these products; the comparative efficacy of some of these products; 
and the experiences of consumers and celebrities who purportedly have 
used some of these products.
    Part I of the proposed order prohibits a representation that 
consumers who use the Hollywood Diet, or any substantially similar 
product, can lose 10 lbs. in 48 hours, unless respondents possess 
competent and reliable scientific evidence that substantiates the 
representation. In addition, Part I prohibits representations that 
celebrities, such as actors and actresses in popular television 
programs, have lost substantial weight by using the product, unless the 
respondents possess competent and reliable evidence that substantiates 
the representations.
    Part II of the proposed order prohibits representations that by 
using Enforma, or any substantially similar product, consumers can 
achieve substantial weight loss, or avoid weight gain, without a 
restricted calorie diet or exercise, unless respondents possess 
competent and reliable scientific evidence that substantiates the 
representations.
    Part III of the proposed order prohibits representations that use 
of the BMI Magnetic Kit, or any substantially similar product, relieves 
severe pain; relieves pain more effectively than other kinds of 
treatment; and relieves pain by enlarging blood vessels, increasing 
blood flow, reducing inflammation, or suppressing the body's production 
of pain-causing chemicals, unless respondents possess competent and 
reliable scientific evidence that substantiates the representations.
    Part IV of the proposed order prohibits representations that Nisim, 
or any substantially similar product, stops hair loss in a matter of 
days or stimulates hair growth as effectively as prescription products, 
unless respondents possess competent and reliable scientific evidence 
that substantiates the representations.
    Part V of the proposed order prohibits representations that the 
Clarion Ceiling Fan, or any substantially similar product, eliminates 
dust mites and pet dander from the user's environment, or that 
consumers who use the product will experience relief from allergies and 
other respiratory problems, unless respondents possess competent and 
reliable scientific evidence that substantiates the representations.
    Part VI of the proposed order prohibits representations that the 
Sila Air Purifier, or any substantially similar product, eliminates 
mold, mildew, bacteria, chemicals, and other pollutants from a user's 
environment, unless respondents possess competent and reliable 
scientific evidence that substantiates the representations.
    Part VII of the proposed order prohibits unsubstantiated 
representations about the comparative or absolute benefits, 
performance, or efficacy of any product or service.
    Part VIII of the proposed order prohibits misrepresentations about 
the existence, contents, validity, results, conclusions, or 
interpretations of any test, study, or research.
    Part IX of the proposed order prohibits representations that any 
user testimonial or endorsement of a product reflects the actual 
experience of the user or that the user's experience is the typical 
experience of members of the public using the product, unless: (1) The 
representation is true and substantiated by competent and reliable 
scientific evidence; or (2) there is a disclosure of either the 
generally expected results for users of the product, or that consumers 
should not expect to experience similar results.
    Part X of the proposed order requires that respondents pay to the 
Federal Trade Commission the sum of $200,000.
    Part XI of the proposed order is a record keeping provision that 
requires the respondents to maintain certain records for three (3) 
years after the last date of dissemination of any representation 
covered by the order. These records include: (1) All advertisements and 
promotional materials containing the representation; (2) all materials 
relied upon in disseminating the representation; and (3) all evidence 
in respondents' possession or control that contradicts, qualifies, or 
calls into question the representation or the basis for it.
    Part XII of the proposed order requires distribution of the order 
to current and future principals, officers, directors, and managers of 
the corporation.
    Part XIII of the proposed order requires distribution of Attachment 
A to the order to current and future employees, agents, and 
representatives having responsibilities with respect to

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the advertising and sale of products to the public. Attachment A is 
entitled ``Legal Notice'' and is a summary of the injunction provisions 
of the proposed order.
    Part XIV of the proposed order requires that the Commission be 
notified of any change in the corporation that might affect compliance 
obligations under the order. Part XV of the proposed order requires 
that for a period of three (3) years, the individual respondent notify 
the Commission of the discontinuance of his current business or 
employment or of his affiliation with any new business or employment 
involving the sale of consumer products and/or services.
    Part XVI of the proposed order requires the respondents to file a 
compliance report with the Commission.
    Part XVII of the proposed order states that, absent certain 
circumstance, the order will terminate twenty (20) years from the date 
it is issued.
    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 their 
terms in any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 02-4375 Filed 2-22-02; 8:45 am]
BILLING CODE 6750-01-P