| **UNITED STATES OF AMERICA        FEDERAL TRADE COMMISSION**

**In the Matter of**

**PHYSICIANS FORMULA COSMETICS, INC., a corporation.        DOCKET NO.**

**COMPLAINT**
        The Federal Trade Commission, having reason to believe that Physicians        Formula Cosmetics, Inc., a corporation ("respondent"), has        violated the provisions of the Federal Trade Commission Act, and it        appearing to the Commission that this proceeding is in the public        interest, alleges:        
1. Respondent Physicians Formula Cosmetics, Inc. is a Delaware        corporation with its principal office or place of business at 1055 W.        Eighth Street, Azusa, California 91702.

2. Respondent has labeled, offered for sale, sold, and distributed        products to the public, including cosmetics, cosmetics brushes, and        skin-care products.

3. The acts and practices of respondent alleged in this complaint        have been in or affecting commerce, as "commerce" is defined        in Section 4 of the Federal Trade Commission Act.

4. Respondent has disseminated or        has caused to be disseminated packaging and labeling for its cosmetics,        cosmetics brushes, and skin-care products, including but not necessarily        limited to the attached Exhibits A through G. The packaging and labeling        contain the following statements:
**A. Exhibit A, product card          for Pull-Up Powder Brush**
"MADE IN USA"

**B. Exhibit B, product card          for Eyebrightener Liner Brightening Liquid Eyeliner**

"Made in USA"

**C. Exhibit C, product card          for Deluxe Cosmetic Brush**

"MADE IN USA"
**D. Exhibit D, product card          for AquaWear Conditioning Mascara**
"Made in USA"
**E. Exhibit E, product          packaging for Translucent Loose Powder**
"Made in USA"
**F. Exhibit F, product          packaging for Translucent Pressed Powder**
"MADE IN USA"
**G. Exhibit G, product label          for Shine Away Acne Control Primer**
"MADE IN USA"

5. Through the means described in Paragraph 4, respondent has        represented, expressly or by implication, that certain of its cosmetics,        cosmetics brushes, and skin-care products are made in the United        States, *i.e.*, that all, or virtually all, of the component        parts of such products are made in the United States, and that all, or        virtually all, of the labor in manufacturing such products is performed        in the United States.

6. In truth and in fact, a significant portion of the components of        certain of respondent's cosmetics, cosmetic brushes, and skin-care        products is, or has been, of foreign origin. Therefore, the        representations set forth in Paragraph 5 were, and are, false or        misleading.

7. The acts and practices of respondent as alleged in this complaint        constitute unfair or deceptive acts or practices in or affecting        commerce in violation of Section 5(a) of the Federal Trade Commission        Act.

**THEREFORE**, the Federal Trade Commission this ____ day of        ____________, 1999, has issued this complaint against respondent.

By the Commission.

Donald S. Clark        Secretary

SEAL: |
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