[Federal Register Volume 67, Number 44 (Wednesday, March 6, 2002)]
[Notices]
[Pages 10215-10216]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-5329]


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FEDERAL TRADE COMMISSION

[File No. 022 3070]


Kris A. Pletschke d/b/a/ Raw Health; Analysis To Aid Public 
Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement, final complaint and decision and 
order.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibition 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. 
The Commission has simultaneously issued the complaint and the consent 
order in final form.

DATES: Comments must be received on or before March 29, 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: ftc.gov">consentagreement@ftc.gov, as prescribed below.

FOR FURTHER INFORMATION CONTACT: Heather Hippsley or Richard Cleland, 
Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW, Washington, 
DC 20580, (202) 326-3285 or 326-3088 and Andrea Foster or James Rohrer, 
Federal Trade Commission, Southeast Regional Office, 225 Peachtree St., 
NE, Suite 1500, Atlanta, GA 30303, (404) 656-1356 or 656-1361.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), 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 an 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 27, 2002), on the World Wide Web, at http://www.ftc.gov/os/2002/02/index.htm. A paper copy can be obtained from the FTC Public 
Reference 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 
Pennslvania 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 e-mail messages directed to the 
following e-mail box: ftc.gov">consentagreement@ftc.gov. Such comments 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)(iii)).

Analysis of Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted an agreement to a consent 
order from Kris A Pletschke, d/b/a Raw Health (``respondent''), and has 
issued a Complaint and the Decision and Order (``Order'') contained in 
the Consent Agreement. Respondent marketed ``Colloidal Silver,'' a 
dietary supplement allegedly containing submircoscopic particles of 
silver that was intended to be taken orally and in other manners for 
the cure and treatment of more than 650 diseases.
    The Commission's complaint charges that respondent made false 
claims that his Collodial Silver product (1) is effective in treating 
or curing 650 diseases; (2) eliminates all pathogens in the human body 
in six minutes or less; and (3) has been medically proven to kill every 
destructive bacterial, viral and fungal organism in the body, including 
anthrax, Ebola, Hunta, and ``flesh-eating bacteria.'' The Commission's 
complaint also charges that respondent failed to have a reasonable 
basis for claims he made that his colloidal Silver product (1) is 
effective in treating 650 diseases and health-related conditions, 
including AIDS, allergies, anthrax, arthritis, blood poisoning, boils, 
wounds of the cornea, chronic fatigue, cerebral spinal meaningitis, 
candida, cholera, colitis, cystitis, dental plaque, diabetes, 
diphtheria, dysentery, enlarged prostate, gonorrhea, herpes, hepatitis, 
infantile diseases, lesions, leukemia, lupus, Lyme disease, parasites, 
rheumatism, ringworm shingles, skin cancer, staph and strep infections, 
stomach flu, thyroid conditions, tonsilitis, toxemia, stomach uclers 
and whooping cough; (2) kills the HIV virus and can be used as an 
antibiotic for all acquired diseases of active AIDS; (3) is superior to 
antibiotics in killing disease-causing organisms and the treatment of 
burns; (4) protects and strengthens the immune system; (5) can safely 
be used on open wounds, sprayed

[[Page 10216]]

into the eye, injected, used orally, vaginally, anally, atomized or 
inhaled into the nose or lungs and dropped into the eyes; (6) has no 
side effects, even at double or tiple the normal dose of 260 ppm, and 
is safe for children and pregnant and nursing women; and (7) aids the 
growth and health of the developing fetus and cases delivery and 
recovery.
    Part I of the consent order prohibits respondent from 
misrepresenting any claims that Collidal Silver or any food, dietary 
supplement, drug, device, or health-related service or program has been 
medically proven to kill disease-causing organisms or any number of 
infections in the body. Part II of the order requires competent and 
reliable scientific evidence to substantiate representations that 
Colloidal Silver or any covered product (1) is effective in treating 
650 diseases and health-related conditions, including AIDS, allergies, 
anthrax, arthritis, blood poisoning, boils, wounds of the cornea, 
chronic fatigue, cerebral spinal meningitis, candida, cholera, colitis, 
cystitis, dental plaque, disabetes, diphtheria, dyesentery, enlarged 
prostate, gonorrhea, herpes, hepatitis, infantile diseases, lesions, 
leukemia, lupus, Lyme disease, parasites, rheumantism, ringworm 
shingles, skin cancer, staph and strep infections, stomach flu, thyroid 
conditions, tonsillitis, toxemia, stomach ulcers and whooping cough; 
(2) kills the HIV virus and can be used as an antibiotic for all 
acquired diseases of active AIDS; (3) is superior to antibiotics in 
killing disease-causing organisms and the treatement of burns; (4) 
protects and strengthens the immune system; (5) can safely be used on 
open wounds, sprayed into the eye, injected, used orally, vaginally, 
anally, atomized or inhaled into the nose or lungs and dropped into the 
eyes; (6) has no side effects, even at double or tripe the normal dose 
of 260 ppm, and is safe for children and pregnant and nursing women; 
(7) aids the growth or health of the developing fetus or eases delivery 
or recovery; (8) is effective in the mitigation, treatment, prevention, 
or cure of any disease, illness or health conditions; or (9) has any 
health, performance, safety, or efficacy benefits.
    Part III of the order prohibits respondent from misrepresenting, 
including by means of metatags, the existence, contents or 
interpretation of any test, study, or research. Part IV of the order 
permits 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.
    Part V and VI of the order require respondents to offer refunds to 
all of his past consumers and wholesale purchasers of Colloidal Silver. 
Part VII requires respondent to file a sworn affidavit with the 
Commission concerning his compliance with the refund provisions.
    The remainder of the 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 change in 
the business entity that may affect compliance obligations under the 
order; and file one or more reports detailing his compliance with the 
order. Part XV of the order is a provision whereby the order, absent 
certain circumstances, terminates twenty years from the date of 
issuance.
    This order 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 decision and order will 
release any claims against any unnamed persons or entities associated 
with the conduct described in the complaint.

Effective Date of Order and Opportunity for Public Comment

    The Commission issued the Complaint and the Decision and Order, and 
served them upon the Respondent, at the same time it accepted the 
Consent Agreement for public comment. As a result of this action, the 
Order has already become effective. In August 1999, the Commission 
adopted procedures to allow for immediate effectiveness of an Order 
prior to a public comment period. The Commission announced that it 
``contemplates doing so only in exceptional cases where, for example, 
it believes that the allegedly unlawful conduct to be prohibited 
threatens substantial and imminent public harm.'' 64 FR 46267 (1999).
    This case is an appropriate one in which to issue a final order 
before receiving public comment because the complaint alleges that the 
respondent made false and unsubstantiated health and safety claims of a 
serious nature, and the respondent continued to make the challenged 
claims after signing the consent agreement. Accordingly, the Commission 
believes it is important to prohibit the respondent from making these 
claims as quickly as possible.
    The Order has also been placed on the public record for 30 days for 
receipt of comments by interested persons, and comments received during 
this period will become part of the public record. Thereafter, the 
Commission will review the Order, and may determine, on the basis of 
the comments or otherwise, that the Order should be modified.\1\
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    \1\ If the Respondent does not agree to such modifications, the 
Commission may (1) initiate a proceeding to reopen and modify the 
Order in accordance with Rule 3.72(b), 16 CFR 3.72(b), or (2) 
commence a new administrative proceeding by issuing an 
administrative complaint in accordance with Rule 3.11, 16 CFR 3.11. 
See 16 CFR 2.34(e)(2).
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    The Commission anticipates that the order, as issued, will 
satisfactorily address the deceptive practices alleged in the 
Complaint. The purpose of this analysis is to invite public comment on 
the Order to aid the Commission in determining whether to modify the 
Order in any respect, and is not intended to constitute an official 
interpretation of the agreement and order, or to modify in any way 
their terms.

    By Direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 02-5329 Filed 3-5-02; 8:45 am]
BILLING CODE 6750-01-M