Analysis of Proposed Consent Order to Aid Public Comment

In the Matter of Oreck Corporation, File No. 102 3033

The Federal Trade Commission (“FTC” or “Commission”) has accepted, subject to final

approval, an Agreement Containing Consent Order from Oreck Corporation (“respondent”). 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 and take

appropriate action or make final the agreement’s proposed order.

This matter involves the advertising, marketing, and sale of the Oreck Halo vacuum

cleaner and the Oreck ProShield Plus portable air cleaner. Oreck has marketed these products

directly to consumers through numerous websites, as well as through company-owned and

franchised retail stores and third-party retail outlets. 

The Oreck Halo is an upright vacuum cleaner that has a built-in light chamber and a

HEPA filter bag. The light chamber generates ultraviolet light in the C spectrum onto floor

surfaces while vacuuming. According to the FTC complaint, Oreck has promoted the Oreck

Halo as effective, through normal use, in killing virtually all bacteria, viruses, germs, mold and

allergens that exist on carpets and other floor surfaces. 

Specifically, the FTC complaint alleges that respondent represented, in various

advertisements, that the Oreck Halo: (1) substantially reduces the risk of or prevents the flu;

(2) substantially reduces the risk of or prevents other illnesses or ailments caused by bacteria,

viruses, molds, and allergens, such as the common cold, diarrhea, upset stomachs, asthma, and

allergy symptoms; and (3) will eliminate all or virtually all common germs and allergens found

on the floors in users’ homes. The complaint also alleges that Oreck claimed that the Oreck

Halo’s UV-C light is effective against germs, bacteria, dust mites, mold and viruses embedded in

carpets. The complaint alleges that all of these claims are unsubstantiated and thus violate the

FTC Act.

The FTC complaint also alleges that Oreck represented, in various advertisements, that

the Oreck ProShield Plus portable air cleaner: (1) substantially reduces the risk of or prevents the

flu; (2) substantially reduces the risk of or prevents other illnesses or ailments caused by

bacteria, viruses, molds, and allergens, such as the common cold, asthma, and allergy symptoms;

and (3) will eliminate all or virtually all airborne particles from a typical household room under

normal living conditions. The complaint alleges that all of these claims are unsubstantiated and

thus violate the FTC Act.

The complaint further alleges that Oreck claimed that scientific tests prove that users of

the Oreck Halo will eliminate or virtually eliminate many common germs and allergens found on

the floors in their homes; and that scientific tests prove that the Oreck ProShield Plus will

eliminate or virtually eliminate many common viruses, germs and allergens from a typical
household room under normal living conditions. According to the complaint, these claims are

false and thus violate the FTC Act. 

Finally, the complaint alleges that Oreck provided advertisements to its franchised stores

for use in their marketing and sale of the Oreck Halo and the Oreck ProShield. According to the

complaint, Oreck thereby provided means and instrumentalities to distributors of its products in

furtherance of the deceptive and misleading acts or practices alleged in the complaint. 

The proposed consent order contains provisions designed to prevent respondent from

engaging in similar acts or practices in the future. Specifically, Part I of the proposed order

addresses the allegedly unsubstantiated claims regarding the Oreck Halo. Part I covers any

representation that the Oreck Halo or any other vacuum cleaner: (1) reduces the risk of or

prevents the flu; (2) reduces the risk of or prevents illnesses or ailments caused by bacteria,

viruses, molds, or allergens, such as the common cold, diarrhea, upset stomachs, asthma and

allergy symptoms; (3) will eliminate all or virtually all germs, bacteria, dust mites, molds,

viruses or allergens from a user’s floor; and (4) will eliminate any percent or numerical quantity

of germs, bacteria, dust mites, molds, viruses or allergens from a user’s floor. Part I also applies

to representations that ultraviolet light is effective against germs, bacteria, dust mites, molds,

viruses or allergens embedded in carpets. Part I prohibits Oreck from making any of the above

representations unless the representation is non-misleading and, at the time of making such

representation, Oreck possesses and relies upon competent and reliable scientific evidence that is

sufficient in quality and quantity based on standards generally accepted in the relevant scientific

fields, when considered in light of the entire body of relevant and reliable scientific evidence, to

substantiate that the representation is true. The proposed order defines “competent and reliable

scientific evidence” as “tests, analyses, research or studies that have been conducted and

evaluated in an objective manner by qualified persons and are generally accepted in the

profession to yield accurate and reliable results.”

Part II of the proposed order addresses the allegedly unsubstantiated claims regarding the

Oreck ProShield Plus. Part II covers any representation that the Oreck ProShield Plus or any

other air cleaner: (1) reduces the risk of or prevents the flu; (2) reduces the risk of or prevents

illnesses or ailments caused by bacteria, viruses, molds, or allergens, such as the common cold,

asthma and allergy symptoms; (3) will eliminate all or virtually all indoor airborne particles

under normal living conditions; and (4) will eliminate any percent or numerical quantity of

indoor air contaminants under normal living conditions. Part II prohibits Oreck from making

any of the above representations unless the representation is non-misleading and, at the time of

making such representation, Oreck possesses and relies upon competent and reliable scientific

evidence that is sufficient in quality and quantity based on standards generally accepted in the

relevant scientific fields, when considered in light of the entire body of relevant and reliable

scientific evidence, to substantiate that the representation is true. 

Part III of the proposed order prohibits respondent from making representations, other

than representations covered under Parts I or II, about the absolute or comparative health

benefits of any product, unless the representation is non-misleading, and, at the time of making

such representation, respondent possesses and relies upon competent and reliable scientific

evidence that is sufficient in quality and quantity based on standards generally accepted in the
relevant scientific fields, when considered in light of the entire body of relevant and reliable

scientific evidence, to substantiate that the representation is true. 

Part IV of the proposed order addresses the allegedly false claims that scientific tests

prove that the Oreck Halo or ProShield Plus eliminate or virtually eliminate many common

germs, viruses or allergens from the user’s floor or air. Part IV prohibits respondent, when

advertising any product, from misrepresenting the existence, contents, validity, results,

conclusions, or interpretations of any test, study, or research.

 Part VI of the proposed order requires the payment of $750,000 intended for redress to

consumers. To facilitate the payment of redress, Part V of the proposed order requires Oreck to

provide to the Commission a searchable electronic file containing the name and contact

information of all consumers who purchased the Oreck Halo or the Oreck ProShield Plus from

January 1, 2009 through August 31, 2010. 

Part VII of the proposed order requires Oreck to send a letter to all of its franchisees

requesting that they immediately stop using all advertising and marketing materials previously

provided to them by Oreck. The required letter is appended to the proposed order as

Attachment A.

Parts VIII, IX, X and XI of the proposed order require respondent to keep copies of

relevant advertisements and materials substantiating claims made in the advertisements; to

provide copies of the order to its personnel; to notify the Commission of changes in corporate

structure that might affect compliance obligations under the order; and to file compliance reports

with the Commission. Part XII provides that the order will terminate after twenty (20) years,

with certain exceptions.

The purpose of this analysis is to facilitate public comment on the proposed order, and it

is not intended to constitute an official interpretation of the agreement and proposed order or to

modify their terms in any way.