[Federal Register Volume 83, Number 224 (Tuesday, November 20, 2018)]
[Notices]
[Pages 58568-58570]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-25255]
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FEDERAL TRADE COMMISSION
[File Nos. 172 3066 and 172 3067]
Creaxion Corp. and Inside Publications, LLC; Analysis To Aid
Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreements.
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SUMMARY: The consent agreements in these matters settle alleged
violations of federal law prohibiting unfair or deceptive acts or
practices. The attached Analysis to Aid Public Comment describes both
the allegations in the complaint and the terms of the consent orders--
embodied in the consent agreements--that would settle these
allegations.
DATES: Comments must be received on or before December 13, 2018.
ADDRESSES: Interested parties may file comments online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write: ``Creaxion Corp. and
Inside Publications, LLC; File Nos. 1723066 and 1723067'' on your
comment, and file your comment online at https://ftcpublic.commentworks.com/ftc/creaxionconsent or https://ftcpublic.commentworks.com/ftc/insidepublicationssettlement by
following the instructions on the web-based form. If you prefer to file
your comment on paper, write ``Creaxion Corp. and Inside Publications,
LLC; File Nos. 1723066 and 1723067'' on your comment and on the
envelope, and mail your comment to the following address: Federal Trade
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Suite
CC-5610 (Annex D), Washington, DC 20580; or deliver your comment to:
Federal Trade Commission, Office of the Secretary, Constitution Center,
400 7th Street SW, 5th Floor, Suite 5610 (Annex D), Washington, DC
20024.
FOR FURTHER INFORMATION CONTACT: Karen Mandel (202-326-2491), Bureau of
Consumer Protection, Federal Trade
[[Page 58569]]
Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34,
notice is hereby given that the above-captioned consent agreements
containing consent orders to cease and desist, having been filed with
and accepted, subject to final approval, by the Commission, have 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 agreements, 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 November 13, 2018), on the World Wide Web,
at https://www.ftc.gov/news-events/commission-actions.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before December 13,
2018. Write ``Creaxion Corp. and Inside Publications, LLC; File Nos.
1723066 and 1723067'' on your comment. Your comment--including your
name and your state--will be placed on the public record of this
proceeding, including, to the extent practicable, on the public
Commission website, at https://www.ftc.gov/policy/public-comments.
Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/creaxionconsent or https://ftcpublic.commentworks.com/ftc/insidepublicationssettlement by following the instructions on the web-
based form. If this Notice appears at http://www.regulations.gov/#!home, you also may file a comment through that website.
If you prefer to file your comment on paper, write ``Creaxion Corp.
and Inside Publications, LLC; File Nos. 1723066 and 1723067'' on your
comment and on the envelope, and mail your comment to the following
address: Federal Trade Commission, Office of the Secretary, 600
Pennsylvania Avenue NW, Suite CC-5610 (Annex D), Washington, DC 20580;
or deliver your comment to the following address: Federal Trade
Commission, Office of the Secretary, Constitution Center, 400 7th
Street SW, 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. If
possible, submit your paper comment to the Commission by courier or
overnight service.
Because your comment will be placed on the publicly accessible FTC
website at http://www.ftc.gov, you are solely responsible for making
sure that your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure that your comment does not include
any sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2),
16 CFR 4.10(a)(2)--including in particular competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted on the public FTC website--as legally required by FTC Rule
4.9(b)--we cannot redact or remove your comment from the FTC website,
unless you submit a confidentiality request that meets the requirements
for such treatment under FTC Rule 4.9(c), and the General Counsel
grants that request.
Visit the FTC website at http://www.ftc.gov to read this Notice and
the news release describing it. The FTC Act and other laws that the
Commission administers permit the collection of public comments to
consider and use in this proceeding, as appropriate. The Commission
will consider all timely and responsive public comments that it
receives on or before December 13, 2018. For information on the
Commission's privacy policy, including routine uses permitted by the
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Analysis of Proposed Consent Orders To Aid Public Comment
The Federal Trade Commission (``Commission'') has accepted, subject
to final approval, an agreement containing a consent order as to
Creaxion Corp. and Mark Pettit, and an agreement containing a consent
order as to Inside Publications, LLC of Georgia and Christopher Korotky
(``respondents'').
The proposed consent orders (``orders'') have been placed on the
public record for 30 days for receipt of comments by interested
persons. Comments received during this period will become part of the
public record. After 30 days, the Commission will again review the
orders and the comments received, and will decide whether it should
withdraw the orders or make them final.
This matter involves the respondents' endorsement and advertising
format practices with respect to the advertising and promotional
campaign they created and implemented for FIT Organic Mosquito
Repellent. The complaint alleges that the respondents violated Section
5(a) of the FTC Act by misrepresenting that certain endorsements
reflected the independent experiences or opinions of impartial users,
and by deceptively failing to disclose that certain endorsers had
material connections with the endorsed product, namely that they were
paid spokespersons, they were reimbursed for the cost of the product,
or they owned or were employed by Creaxion, the public relations firm
hired to promote the product. The complaint also alleges that the
respondents violated Section 5(a) by misrepresenting that certain
advertisements were independent statements and opinions of impartial
publications when they actually were paid commercial advertising.
The orders include injunctive relief that prohibits these alleged
violations and fences in similar and related conduct. The provisions
apply to any product or service.
Part I prohibits misrepresenting the status of any endorser or
person reviewing the product or service, including that he or she is an
independent user or ordinary consumer of the product or service.
Part II prohibits any representation about any consumer or other
endorser of such product or service without disclosing, clearly and
conspicuously,
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and in close proximity to that representation, any unexpected material
connection between such endorser and any respondent, or other
individual or entity affiliated with the product or service. Each order
defines the terms ``clearly and conspicuously'' and ``unexpected
material connection.''
Part III prohibits misrepresenting that paid commercial advertising
is a statement or opinion from an independent or objective publisher or
source.
Part IV requires the respondents, when they use endorsers to
advertise or sell a product or service, to take certain steps to make
sure the endorsements comply with Parts I and II of the orders. Such
steps include clearly notifying endorsers of their representation and
disclosure responsibilities, creating a monitoring system to review
endorsements and disclosures, and terminating any endorser who fails to
comply with Parts I and II. Part V requires the respondents to
distribute the orders to certain persons and submit signed
acknowledgments of order receipt.
Part VI requires the respondents to file compliance reports with
the Commission, and to notify the Commission of bankruptcy filings or
changes in corporate structure that might affect compliance
obligations. Part VII contains recordkeeping requirements for personnel
records, advertising and marketing materials, and all records necessary
to demonstrate compliance with the orders. Part VIII contains other
requirements related to the Commission's monitoring of the respondents'
order compliance.
Part IX provides the effective dates of the orders, including that,
with exceptions, the orders will terminate in 20 years.
The purpose of this analysis is to aid public comment on the
proposed orders. It is not intended to constitute an official
interpretation of the complaint or proposed orders, or to modify in any
way the proposed orders' terms.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2018-25255 Filed 11-19-18; 8:45 am]
BILLING CODE 6750-01-P