[Federal Register Volume 68, Number 141 (Wednesday, July 23, 2003)]
[Notices]
[Pages 43514-43515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18742]


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FEDERAL TRADE COMMISSION

[File No. 022 3122]


Global Instruments Ltd., 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 August 18, 2003.

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 in the 
SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Connie Vecellio or Patricia Bak, FTC, 
Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW., 
Washington, DC 20580, (202) 326-2966 or 326-2842.

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 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 July 18, 2003), on the World Wide Web, at http://www.ftc.gov/os/2003/07/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 e-mail 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 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, subject to final 
approval, an agreement containing a consent order from Global 
Instruments Ltd. and Charles Patterson, individually and as an officer 
of the corporation.
    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 concerns practices related to the advertising, offering 
for sale, sale, and distribution of various

[[Page 43515]]

electromagnetic, ultrasonic, and combination electromagnetic and 
ultrasonic pest control devices. The Commission's proposed complaint 
alleges that proposed respondents violated section 5 of the Federal 
Trade Commission Act, 15 U.S.C. Sec.  5, by making numerous 
representations about Global's pest control products for which they 
lacked a reasonable basis. Specifically, the complaint alleges that the 
following representations were unsubstantiated:
    [sbull] Global's electromagnetic pest control products repel, drive 
away, or eliminate mice, rats, and cockroaches from homes and other 
buildings in two to four weeks and drive them away by sending a 
pulsating signal throughout or altering the field around the electrical 
wiring inside homes and other buildings; they act as an effective 
alternative to or eliminate the need for chemicals, pesticides, 
insecticides, exterminators, and pest control services;
    [sbull] Global's combination electromagnetic/ultrasonic pest 
control devices effectively repel, control or eliminate mice, rats, 
cockroaches, rodents, insects, spiders, silverfish, and bats from homes 
and other buildings and upset nesting sites of mice, rats, and 
cockroaches within walls, ceilings, and floors by using the products' 
pulse or electromagnetic technology through the household wiring;
    [sbull] Global's ultrasonic pest control devices effectively repel, 
drive away, or eliminate mice, rats, bats, crickets, spiders and other 
insects from homes and eliminate the need for toxic chemicals, poisons 
or traps; and
    [sbull] Global's pest control products are effective within a space 
of a given size (for example, 1000 sq. ft. or 2000 sq. ft.).
    The proposed consent order contains provisions designed to prevent 
proposed respondents from engaging in similar acts and practices in the 
future. Part I of the proposed order prohibits the following 
representations unless respondents possess competent and reliable 
scientific evidence that substantiates the representations:
    [sbull] That any pest control product repels, controls, or 
eliminates, temporarily or indefinitely, mice, rats, cockroaches, or 
any other insects or animal pests and that it does so in an area of a 
certain size;
    [sbull] that any pest control product is an effective alternative 
to or eliminates the need for chemicals, pesticides, insecticides, 
exterminators, or any other pest control product or service; and
    [sbull] that any pest control product will alter the 
electromagnetic field, send a pulsating signal, or otherwise work 
inside the walls or through the wiring of homes or other buildings in a 
manner that effectively repels, controls, drives away, or eliminates 
mice, rats, cockroaches, or any other insects or animal pests.
    Part II of the proposed order requires respondents to possess and 
rely upon competent and reliable evidence, which when appropriate must 
be competent and reliable scientific evidence, for claims about the 
benefit, performance, or efficacy of any product.
    Part III of the proposed order requires the respondents to maintain 
certain records for five 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 IV of the proposed order requires distribution of the order to 
current and future principals, officers, directors, and managers, and 
to current and future employees, agents, and representatives having 
responsibilities with respect to the subject matter of the order.
    Part V 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 VI of the proposed order requires 
that for a period of three years, respondent Charles Patterson will 
notify the Commission of the discontinuance of his current business or 
employment or of his affiliation with any new business or employment 
involving the marketing of any consumer product.
    Part VII of the proposed order requires the respondents to file a 
compliance report with the Commission.
    Part VIII of the proposed order states that, absent certain 
circumstances, 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. 03-18742 Filed 7-22-03; 8:45 am]
BILLING CODE 6750-01-P