[Federal Register Volume 62, Number 66 (Monday, April 7, 1997)]
[Notices]
[Pages 16582-16583]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-8801]


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FEDERAL TRADE COMMISSION

[File No. 962-3224]


2943174 Canada Inc., Also d/b/a United Research Center, Inc.; 
Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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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 Quebec-
based company and its president from making health benefits, 
performance, or efficacy claims regarding the ``Svelt-PATCH'' or any 
other drug or device unless, at the time the representation is made, 
the respondents possess and rely upon competent and reliable scientific 
evidence that substantiates the representation, and from 
misrepresenting the existence, contents, validity, results, 
conclusions, or interpretations of any test or study. In addition, the 
proposed consent agreement would require the respondents to pay 
$375,000 in consumer redress or disgorgement.

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: Michael Bloom or Ronald Waldman, 
Federal Trade Commission, New York Regional Office, 150 William St, 
13th Floor, New York, N.Y. 10038-2603, (212) 264-1201 or 264-1242.

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 ``<a href="http://www.ftc.gov/
os/actions/htm">http://www.ftc.gov/
os/actions/htm</a>.'' 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, subject to final 
approval, an agreement to a proposed Consent Order (``proposed order'') 
from 2943174 Canada Inc., also doing business as United Research 
Center, Inc., and its principal, Patrice Runner.
    The proposed order has been placed on the public record for sixty 
(60) days for receipt 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.
    This matter concerns print advertisements for proposed respondents' 
Svelt-PATCH, a purported weight loss product The Commission's complaint 
alleges that proposed respondents engaged in deceptive advertising in 
violation of Sections 5 and 12 of the FTC Act by making unsubstantiated 
claims that: (1) Svelt-PATCH controls appetite; (2) Svelt-PATCH 
significantly increases human metabolism; (3) Svelt-PATCH significantly 
reduces body fat; (4) Svelt-PATCH causes significant weight loss; (5) 
Svelt-PATCH causes long-term or permanent weight loss; and (6) Svelt-
PATCH lowers serum cholesterol levels.
    The complaint further alleges that proposed respondents made a 
false claim that clinical evidence proves that Svelt-PATCH causes users 
to lose weight.
    The proposed order contains provisions designed to remedy the 
violations charged and to prevent proposed respondents from engaging in 
similar acts in the future.
    Paragraph I of the proposed order prohibits proposed respondents 
from claiming that Svelt-PATCH or any other product or program: (1) 
controls appetite; (2) increases human metabolism; (3) reduces body 
fat; (4) causes weight loss; (5) causes long-term or permanent weight 
loss; and (6) reduces cholesterol; (7) provides any weight loss, fat 
loss, weight regulation, weight control, or weight maintenance benefit, 
unless, at the time the

[[Page 16583]]

representation is made, proposed respondents possess and rely upon 
competent and reliable scientific evidence that substantiates the 
representation.
    Paragraph II of the proposed order prohibits proposed respondents 
from making any representation for Svelt-PATCH, or any other drug or 
device, about the health benefits, performance, or efficacy of such 
product unless, at the time the representation is made, proposed 
respondents possess and rely upon competent and reliable scientific 
evidence that substantiates the representation.
    Paragraph III of the proposed order prohibits proposed respondents 
from misrepresenting the existence, contents, validity, results, 
conclusions, or interpretations of any test, study, or study.
    Paragraphs IV of the proposed order provides that nothing in this 
order shall prohibit proposed respondents from making any 
representation permitted by the Food and Drug Administration.
    Paragraph V of the proposed order requires proposed respondents to 
pay three hundred and seventy-five thousand dollars ($375,000) in 
consumer redress, or if consumer redress is impracticable or 
unwarranted, said money shall be payable to the United States Treasury.
    Paragraph VI of the proposed order contains recordkeeping 
requirements for materials that substantiate, qualify, or contradict 
covered claims and requires the proposed respondents to keep and 
maintain all advertisements and promotional materials containing any 
representation covered by the proposed order. In addition, paragraph 
VII requires distribution of a copy of the consent decree to current 
and future officers and agents. Further, paragraph VIII provides for 
Commission notification upon a change in the corporate respondent. 
Paragraph IX requires proposed respondent Patrice Runner to notify the 
respondents when he discontinues his current business or employment and 
of his affiliation with certain new businesses or employment. The 
proposed order also requires the filing of a compliance report 
(Paragraph X).
    Finally, paragraph XI of the proposed order provides for the 
termination of the order after twenty years under certain 
circumstances.
    The purpose of this analysis is to facilitate public comment on the 
proposed order. 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. 97-8801 Filed 4-4-97; 8:45 am]
BILLING CODE 6750-01-M