| 9923158

**UNITED STATES OF AMERICA        FEDERAL TRADE COMMISSION**

**In the Matter of**

**PHYSICIANS FORMULA COSMETICS, INC., a corporation.**
**DOCKET NO. C-3909**
**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 tenth day        of December, 1999, has issued this complaint against respondent.

By the Commission, Commissioner Leary not participating.

Donald S. Clark        Secretary

SEAL: |
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