| **Analysis of Proposed Consent       Order to Aid Public Comment**
The Federal Trade Commission has accepted       an agreement, subject to final approval, to a proposed consent order from       respondent A&S Pharmaceutical Corporation ("A&S").

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 "Made in U.S.A."       claims on packaging and labeling for A&S's aspirin tablets sold at retail       bearing private brand names. The Commission's complaint alleges that       respondent misrepresented on packaging and labeling that certain of these       products, manufactured for customers such as Food Lion, Price Chopper, and       BJ's Wholesale Club, are all or virtually all made in the United States.       According to the complaint, these products are actually made with       significant foreign content. The products' active ingredient, bulk aspirin       compound, that respondent processed into aspirin tablets is or was made       outside the United States. The imported bulk aspirin compound comprises a       substantial percentage of total manufacturing costs and imparts the       crucial analgesic quality to the OTC products at issue. The Commission's       complaint does not allege that all of A&S's private label aspirin brands       or products are mislabeled, but only that certain products for certain       customers have been improperly labeled. 

The proposed consent order contains a       provision that is designed to remedy the charges and to prevent the       respondent from engaging in similar acts and practices in the future. Part       I of the proposed order prohibits A&S from misrepresenting the extent to       which any over-the-counter drug product is made in the United States. The       proposed order would allow A&S to represent that such products are made in       the United States as long as all, or virtually all, of the ingredients or       component parts of such products are made in the United States and all, or       virtually all, of the labor in manufacturing such products is performed in       the United States.

Part II of the proposed order requires the       respondent to maintain materials relied upon in disseminating any       representation covered by the order. Part III of the proposed order       requires the respondent to distribute copies of the order to certain       company officials and employees. Part IV of the proposed order requires       the respondent to notify the Commission of any change in the corporation       that may affect compliance obligations under the order. Part V of the       proposed order requires the respondent to file one or more compliance       reports. Part VI of the proposed order is a provision whereby the order,       absent certain circumstances, terminates twenty years from the date of       issuance.

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 in any way their terms.UBLIC "-//IETF//DTD HTML//EN"> |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|