16586 Federal Register / Vol. 62, No. 66 / Monday, April 7, 1997 / Notices

product or program, unless, at the time,

they possess and rely upon competent

and reliable scientific evidence

substantiating the representation or they

disclose, clearly and prominently, and

in close proximity to the testimonial or

endorsement, what the generally

expected results would be or that

consumers should not expect to

experience similar results.

Part IV prohibits respondents from

misrepresenting the existence, contents,

validity, results, conclusions or

interpretations of any test, study or

research in connection with the sale of

any food, dietary supplement, drug,

device, or weight loss product or

program. Part V prohibits respondents

from violating the Mail or Telephone

Order Merchandise Rule, which, among

other things, requires that purchasers be

notified if the products are not delivered

in a timely fashion.

Part VI requires respondents to

deposit $100,000 into an escrow

account, which will be used by the

Commission to provide either direct

redress to purchasers of the Slimming

Soles or will be paid to the United

States Treasury, if the Commission

determines that direct redress to

consumers is wholly or partially

impracticable.

Parts VII through IX relate to

respondents’ obligations to maintain

and make available to the Commission

certain records; to provide copies of the

order to respondents’ personnel; and to

notify the Commission of structural

changes in the corporation. Part X

requires Gerard du Passage to notify the

Commission if he leaves his current

employment or he affiliates with any

new business or employment whose

activities relate to the manufacturing,

labeling, advertising, promotion,

offering for sale, sale or distribution of

any dietary supplement, drug, device, or

weight loss product or program for

which any health or weight loss claim

is made. Part XI requires respondents to

file compliance reports with the

Commission. Part XII provides that the

order will terminate after twenty years,

under certain circumstances.

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 in any way their terms.

Donald S. Clark,

Secretary.

[FR Doc. 97–8798 Filed 4–4–97; 8:45am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

[File No. 962–3137]

Guildwood Direct Limited, Also d/b/a

Intermed Laboratories; Analysis To Aid

Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

SUMMARY: In settlement of alleged

violations of federal law prohibiting

unfair or deceptive acts or practices and

unfair methods of competition, this

consent agreement, accepted subject to

final Commission approval, would

prohibit, among other things, the New

York-based company from representing

that any product causes weight loss,

with or without changes in diet or

exercise, or provides any weight loss, fat

loss, weight regulation, weight control

or weight maintenance benefit, and from

using the name ‘‘Slimming Insoles’’ or

any other name in a manner that

represents that any product causes

weight loss unless the respondent

possesses competent and reliable

scientific evidence that substantiates the

representation. The consent agreement

also would prohibit the respondent from

representing that Advance Bio/Natural

Research Labs in a bona fide,

independent research organization or

from making any misrepresentations of

the existence, contents, validity, results,

conclusions or interpretations of any

test, study or research or the existence,

nature, purpose or activities of any

organization. In addition, the consent

agreement would require the respondent

to pay, to purchasers of the Slimming

Insoles, $40,000 for consumer redress or

disgorgement, with that liability being

suspended upon payment of $7,500

once the order becomes final.

DATES: Comments must be received on

or before June 6, 1997.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., N.W.,

Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT:

Richard Cleland, FTC/H–482,

Washington, D.C. 20580. (202) 326–

3088.

SUPPLEMENTARY INFORMATION: Pursuant

to Section 6(f) of the Federal Trade

Commission Act, 38 Stat. 721, 15 U.S.C.

46 and Section 2.34 of the Commission’s

Rules of Practice (16 CFR 2.34), notice

is hereby given that the above-captioned

consent agreement containing a consent

order to cease and desist, having been

filed with and accepted, subject to final

approval, by the Commission, has been

placed on the public record for a period

of sixty (60) days. The following

Analysis to Aid Public Comment

describes the terms of the consent

agreement, 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 March 25, 1997), on the

World Wide Web, at ‘‘http://

www.ftc.gov/os/actions/htm.’’ A paper

copy can be obtained from the FTC

Public Reference Room, Room H–130,

Sixth Street and Pennsylvania Avenue,

N.W., Washington, D.C. 20580, either in

person or by calling (202) 326–3627.

Public comment is invited. Such

comments or views will be considered

by the Commission and will be available

for inspection and copying at its

principal office in accordance with

Section 4.9(b)(6)(ii) of the Commission’s

Rules of Practice (16 CFR 4.9(b)(6)(ii)).

Analysis of Proposed Consent Order

The Federal Trade Commission has

accepted an agreement to a proposed

consent order from Guildwood Direct

Limited (‘‘respondent’’).

The proposed consent order has been

placed on the public record for sixty

(60) days for reception of comments by

interested persons. Comments received

during this period will become part of

the public record. After sixty (60) days,

the Commission will again review the

agreement and the comments received

and will decide whether it should

withdraw from the agreement or make

final the agreement’s proposed order.

The Commission’s complaint in this

matter charges respondent with

deceptively advertising Slimming

Insoles, insoles worn in the shoes that

purportedly cause weight loss through

‘‘reflexology,’’ without changes in diet

or exercise. According to advertisements

for the product, the Slimming Insoles

purportedly cause weight loss by

massaging certain ‘‘reflex points’’ on the

bottom of the foot during the course of

a normal day’s walking, thereby

stimulating the body’s digestive system

to burn stored fat and cause weight loss.

Advertisements for the product

appeared in newspapers such as the

Washington Post, New York Post,

Denver Post and St. Louis Post, in

newspaper inserts, in magazines such as

American Women, Soap Opera Update

and Woman’s Own as well as in

nationwide direct mailings.

The complaint alleges that, through

the product name ‘‘Slimming Insoles’’

and the advertisements, respondent

made unsubstantiated representations

that the Slimming Insoles cause

significant weight loss and that the

weight loss occurs without changes in

diet or exercise. According to the

complaint, the ads also claim, without
Federal Register / Vol. 62, No. 66 / Monday, April 7, 1997 / Notices 16587

adequate substantiation, that

testimonials from consumers appearing

in the ads reflect the typical or ordinary

experience of people who have used the

product.

The complaint also alleges that

respondent falsely represented that

scientific studies demonstrate that the

Slimming Insoles cause significant

weight loss without changes in diet or

exercise. In addition, the complaint

alleges that respondent falsely

represented that an organization named

Advanced Bio/Natural Research Labs is

a bona fide, independent research

organization that has published a report

containing the results of valid,

independent testing of the Slimming

Insoles.

The proposed consent order contains

provisions designed to remedy the

violations charged and to prevent

respondent from engaging in similar

acts and practices in the future.

Part I of the order requires respondent

to possess competent and reliable

scientific evidence to support any claim

that any product causes weight loss,

with or without changes in diet or

exercise, or provides any weight loss, fat

loss, weight regulation, weight control

or weight maintenance benefit. Part II

prohibits respondent from using the

name ‘‘Slimming Insoles’’ or any other

name in a manner that represents that

any product causes weight loss, unless

respondent possesses competent and

reliable scientific evidence that

substantiates the representation.

Part III prohibits respondent from

claiming that the experience

represented in any user-testimonial or

endorsement of any food, dietary

supplement, drug, device, or weight loss

product or program represents the

typical or ordinary experience of

members of the public who use the

product, unless, at the time, respondent

possesses and relies upon competent

and reliable scientific evidence

substantiating the representation or

respondent discloses, clearly and

prominently, and in close proximity to

the testimonial or endorsement, what

the generally expected results would be

or that consumers should not expect to

experience similar results.

Part IV prohibits respondent from

representing that Advance Bio/Natural

Research Labs is a bona fide,

independent research organization or

that it has published a report containing

the results of valid, independent testing

of any product. Part V prohibits, in

connection with the sale of any food,

dietary supplement, drug, device or

weight loss product or program,

misrepresentations of the existence,

contents, validity, results, conclusions

or interpretations of any test, study or

research or the existence, nature,

purpose or activities of any

organization.

Part VI requires respondent to deposit

$40,000 into an escrow account, which

will be used by the Commission to

provide either direct redress to

purchasers of the Slimming Insoles or

will be paid to the United States

Treasury, if the Commission determines

that direct redress to consumers is

wholly or partially impracticable. The

order suspends the full $40,000 liability,

however, provided that respondent pays

$7,500 to the Commission no later than

the date the order becomes final. The

full $40,000 becomes due, however,

should respondent default in making

the $7,500 payment. In addition, the

Commission’s acceptance of the order is

expressly premised upon financial

statements and related documents

provided by the respondent, and the

Commission reserves the right to reopen the proceeding to determine if the

financial information provided by

respondent contains any material

misrepresentations or omissions. If the

Commission determines that there are

any material misrepresentations or

omissions in the financial information

provided, then the full $40,000 becomes

due and payable.

Parts VII through X relate to

respondent’s obligations to maintain

and make available to the Commission

certain records; to provide copies of the

order to respondent’s personnel; to

notify the Commission of changes in

corporate structure; and to file

compliance reports with the

Commission. Part XI provides that the

order will terminate after twenty years,

under certain circumstances.

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 in any way their terms.

Donald S. Clark,

Secretary.

[FR Doc. 97–8800 Filed 4–4–97; 8:45 am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

[File No. 942–3237]

KCD Holdings, Inc., et al.; Interactive

Medical Technologies, Ltd., et al.;

William Pelzer, Jr.; and William E.

Shell, M.D.; Analysis to Aid Public

Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreements.

SUMMARY: In settlement of alleged

violations of federal law prohibiting

unfair or deceptive acts or practices and

unfair methods of competition, the four

consent agreements, accepted subject to

final Commission approval, would

prohibit, among other things, the

California-based companies, which

market cellulose-bile products, and their

officers from providing means and

instrumentalities or substantial

assistance to any person who they

know, or should know, is making any

false or unsubstantiated benefit,

performance, efficacy or safety claim for

any weight loss, fat or cholesterol

reduction product or program. The

consent agreements would require KCD,

KCD Holdings and Richards to pay

$150,000 in consumer redress, in

thirteen installments over a period of

one year, Interactive Medical and

Effective Health to pay $35,000 in

consumer redress, and Dr. William E.

Shell, a former officer of Interactive

Medical Technologies, Ltd., to pay

$20,000 in consumer redress.

DATES: Comments must be received on

or before June 6, 1997.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., N.W.,

Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT:

Laureen France or Nadine Samter,

Federal Trade Commission, Seattle

Regional Office, 915 Second Ave., Suite

2896, Seattle, WA. 98174. (202) 220–

6350 or 220–4471.

SUPPLEMENTARY INFORMATION: Pursuant

to Section 6(f) of the Federal Trade

Commission Act, 38 Stat. 721, 15 U.S.C.

46 and Section 2.34 of the Commission’s

Rules of Practice (16 CFR 2.34), notice

is hereby given that the above-captioned

consent agreements containing a

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 sixty (60)

days. The following Analysis to Aid

Public Comment describes the terms of

the consent agreements, and the

allegations in the complaints. An

electronic copy of the full text of the

consent agreement package can be

obtained from the FTC Home page (for

March 25, 1997), on the World Wide

Web, at ‘‘http://www.ftc.gov/os/actions/

htm.’’ A paper copy can be obtained

from the FTC Public Reference Room,

Room H–130, Sixth Street and

Pennsylvania Avenue, N.W.,

Washington, D.C. 20580, either in

person or by calling (202) 326–3627.

Public comment is invited. Such

comments or views will be considered