[Federal Register Volume 69, Number 126 (Thursday, July 1, 2004)]
[Notices]
[Pages 39936-39938]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-14967]


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FEDERAL TRADE COMMISSION

[File No. 032 3245]


Prince Lionheart, 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 July 21, 2004.

ADDRESSES: Comments should refer to ``Prince Lionheart, Inc., et al., 
File No. 032 3245,'' to facilitate the organization of comments. A 
comment filed in paper form should include this reference both in the 
text and on the envelope, and should be mailed or delivered to the 
following address: Federal Trade Commission/Office of the Secretary, 
Room H-159, 600 Pennsylvania Avenue, NW., Washington, DC 20580. 
Comments containing confidential material must be filed in paper form, 
as explained in the Supplementary Information section. The FTC is 
requesting that any comment filed in paper form be sent by courier or 
overnight service, if possible, because U.S. postal mail in the 
Washington area and at the Commission is subject to delay due to 
heightened security precautions. Comments filed in electronic form 
(except comments containing any confidential material) should be sent 
to the following e-mail box: [email protected].

FOR FURTHER INFORMATION CONTACT: Carol Jennings or Robert Frisby, FTC, 
Bureau of Consumer Protection, 600

[[Page 39937]]

Pennsylvania Avenue, NW., Washington, DC 20580, (202) 326-3010 or 326-
2098.

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 June 21, 2004), on the World Wide Web, at http://www.ftc.gov/os/2004/06/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. Written comments must be submitted 
on or before July 21, 2004. Comments should refer to ``Prince 
Lionheart, Inc., et al., File No. 032 3245,'' to facilitate the 
organization of comments. A comment filed in paper form should include 
this reference both in the text and on the envelope, and should be 
mailed or delivered to the following address: Federal Trade Commission/
Office of the Secretary, Room H-159, 600 Pennsylvania Avenue, NW., 
Washington, DC 20580. If the comment contains any material for which 
confidential treatment is requested, it must be filed in paper (rather 
than electronic) form, and the first page of the document must be 
clearly labeled ``Confidential.'' \1\ The FTC is requesting that any 
comment filed in paper form be sent by courier or overnight service, if 
possible, because U.S. postal mail in the Washington area and at the 
Commission is subject to delay due to heightened security precautions. 
Comments filed in electronic form should be sent to the following e-
mail box: [email protected].
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    \1\ Commission Rule 4.2(d), 16 CFR 4.2(d). The comment must be 
accompanied by an explicit request for confidential treatment, 
including the factual and legal basis for the request, and must 
identify the specific portions of the comment to be withheld from 
the public record. The request will be granted or denied by the 
Commission's General Counsel, consistent with applicable law and the 
public interest. See Commission Rule 4.9(c), 16 CFR 4.9(c).
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    The FTC Act and other laws the Commission administers permit the 
collection of public comments to consider and use in this proceeding as 
appropriate. All timely and responsive public comments, whether filed 
in paper or electronic form, will be considered by the Commission, and 
will be available to the public on the FTC Web site, to the extent 
practicable, at www.ftc.gov. As a matter of discretion, the FTC makes 
every effort to remove home contact information for individuals from 
the public comments it receives before placing those comments on the 
FTC Web site. More information, including routine uses permitted by the 
Privacy Act, may be found in the FTC's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

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 by respondents 
Prince Lionheart, Inc., and Thomas E. McConnell, individually and as 
President of the corporation.
    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 an electronic mosquito repellent 
device called the ``Love Bug.'' The Commission's complaint charged that 
respondents violated the Federal Trade Commission Act, 15 U.S.C. 41 et 
seq., by making representations that were false and for which they 
lacked a reasonable basis of substantiation. These representations 
concerned the following: The ability of the ``Love Bug'' to repel 
mosquitoes from a baby; the effectiveness of the ``Love Bug'' as an 
alternative to the use of chemical products formulated to repel 
mosquitoes; and the ability of the ``Love Bug'' to protect babies 
against contracting the West Nile virus.
    Part I of the proposed order prohibits any representation that the 
``Love Bug,'' or any substantially similar product, (A) repels 
mosquitoes from a baby or any person; (B) is an effective alternative 
to the use of chemical products formulated to repel mosquitoes; or (C) 
protects babies or other persons against contracting the West Nile 
virus, unless the representation is true and respondents possess 
competent and reliable scientific evidence that substantiates the 
representation. For purposes of this part, a ``substantially similar 
product'' means any product that uses or purports to use sonic or 
ultrasonic technology to repel mosquitoes from the user.
    Part II of the proposed order prohibits unsubstantiated 
representations about the benefits, performance, or efficacy of any 
consumer electronic product.
    Part III of the proposed order requires the respondents to send a 
letter (Attachment A to the consent agreement), with a copy of the 
order, to any catalog company or other wholesale or retail seller to 
which respondents have sold the ``Love Bug'' since January 1, 2002.
    Part IV 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 V of the proposed order requires distribution of the order to 
principals, officers, directors, and managers, and to employees, 
agents, and representatives having responsibilities with respect to the 
subject matter of the order.
    Part VI 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 VII of the proposed order requires 
that for a period of five (5) 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.
    Part VIII of the proposed order requires the respondents to file a 
compliance report with the Commission.
    Part IX 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

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proposed order or to modify their terms in any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 04-14967 Filed 6-30-04; 8:45 am]
BILLING CODE 6750-01-P