Federal Register / Vol. 63, No. 13 / Wednesday, January 21, 1998 / Notices 3129

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 January 13, 1998), 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,

NW., Washington, DC 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 To

Aid Public Comment

The Federal Trade Commission has

accepted an agreement, subject to final

approval, to a proposed consent order

from respondent Jeanie Eller.

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 and take

other appropriate action or make final

the agreement’s proposed order.

This matter concerns success claims

made regarding Jeanie Eller’s Action

Reading, a home-study phonetics

program, promoted by respondent. The

Commission’s complaint charges that

respondent, in concert with Mega

Systems, Inc., made unsubstantiated

claims that Jeanie Eller’s Action Reading

is successful in teaching reading 100%

of the time. In fact, the complaint

alleges, Jeanie Eller’s Action Reading is

not successful in teaching reading 100%

of the time.

The proposed consent order contains

provisions designed to remedy the

violations charged and to prevent the

respondent from engaging in similar

acts and practices in the future. The

proposed order extends to Jeanie Eller

Action Reading or any other product or

program that provides instruction in any

aspect of reading.

Part I of the proposed consent order

prohibits the respondent from

representing the extent to which

individuals who use such product will

learn to read or the success rate of

individuals who use such product,

unless the representation is

substantiated.

The remaining parts of the proposed

consent order require the respondent to

maintain promotional and

substantiation materials related to the

claims covered by the order, to notify

the Commission of any changes in her

employment, and to file one or more

compliance reports.

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.

Donald S. Clark,

Secretary.

[FR Doc. 98–1362 Filed 1–20–98; 8:45 am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

[File No. 942–3278]

Mega Systems International, Inc., et al.;

Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

SUMMARY: The consent agreement in this

matter settles alleged violations of

federal law prohibiting unfair or

deceptive acts or practices or unfair

methods of competition. The attached

Analysis to Aid Public Comment

describes both the allegations in the

draft complaint that accompanies the

consent agreement and the terms of the

consent order—embodied in the consent

agreement—that would settle these

allegations.

DATES: Comments must be received on

or before March 23, 1998.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pennsylvania

Avenue, N.W., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

C. Steven Baker or Russell W. Damtoft,

Federal Trade Commission, Chicago

Regional Office, 55 East Monroe St.,

Suite 1860, Chicago, IL. 60603. (312)

353–8156.

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 January 13, 1998), 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, DC 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 To

Aid Public Comment

The Federal Trade Commission has

accepted an agreement, subject to final

approval, to a proposed consent order

from respondents Mega Systems

International, Inc. and Jeffrey Salberg.

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 and take

other appropriate action or make final

the agreement’s proposed order.

This matter concerns advertisements,

including but not limited to

infomercials, for five Mega Systems

International products: Eden’s Secret

Nature’s Purifying Product, Sable Hair

Farming System, Kevin Trudeau’s Mega

Memory System, Dr. Callahan’s

Addiction Breaking System, and Jeanie

Eller’s Action Reading. This matter also

concerns the deceptive format of the

infomercials.

The Commission’s complaint charges

that respondents made false and

unsubstantiated claims that Eden’s

Secret Nature’s Purifying Product (1)

causes significant weight loss, (2) will

prevent or cure illnesses, including but

not limited to fatigue, headaches,

depression, arthritis, insomnia, immune

suppression, and premenstrual

syndrome, (3) will cleanse the body of
3130 Federal Register / Vol. 63, No. 13 / Wednesday, January 21, 1998 / Notices

harmful toxins, and (4) will purify the

body’s blood supply.

The Commission’s complaint also

charges that respondents made false and

unsubstantiated claims that Sable Hair

Farming System (1) will stop, prevent,

cure, relieve, reverse or reduce hair loss,

(2) will promote the growth of hair

where hair has already been lost, and (3)

is superior to Rogaine and Minoxidil in

stopping, preventing, curing, relieving,

reversing or reducing hair loss. In

addition, the Commission’s complaint

charges that respondents made the false

claim that scientific studies demonstrate

that Sable Hair Farming System is

effective in stopping hair loss and

promoting hair growth.

The Commission’s complaint also

charges that respondents made the false

and unsubstantiated claim that Kevin

Trudeau’s Mega Memory System will

enable users to achieve a photographic

memory, and the unsubstantiated claim

that Kevin Trudeau’s Mega Memory

System is effective in causing adults or

children with learning disabilities or

attention deficit disorder to

substantially improve their memory. In

addition, the Commission’s complaint

charges that respondents made false

claims that (1) scientific studies of

Kevin Trudeau’s Mega Memory System

on seventh-grade students demonstrate

that Kevin Trudeau’s Mega Memory

System will substantially improve their

academic performance and grades, (2)

scientific studies of Kevin Trudeau’s

Mega Memory System on blind children

demonstrate that Kevin Trudeau’s Mega

Memory System will improve their

recall ability to a level of 95% to 98%,

(3) scientific studies of Kevin Trudeau’s

Mega Memory System on children with

IQ’s of fifty to sixty demonstrate that

Kevin Trudeau’s Mega Memory System

will improve their recall ability to a

level of almost 100%, and (4) scientific

studies of Kevin Trudeau’s Mega

Memory System on children with

attention deficit disorder demonstrate

that Kevin Trudeau’s Mega Memory

System will substantially improve their

memory.

The Commission’s complaint also

charges that respondents made false and

unsubstantiated claims that Dr.

Callahan’s Addiction Breaking System

(1) reduces an individual’s compulsive

desire to eat, leading to significant

weight loss, (2) reduces an individual’s

compulsive desire to eat, leading to

significant weight loss without the need

to diet or exercise, and (3) cures

addictions and compulsions, including

but not limited to, smoking, eating, and

using alcohol or heroin. In addition, the

Commission’s complaint charges that

respondents made the false claim that

testimonials with regard to consumers’

use of Dr. Callahan’s Addiction

Breaking System reflect the typical or

ordinary experience of members of the

public who use the product.

The Commission’s complaint also

charges that respondents made

unsubstantiated claims that Jeanie

Eller’s Action Reading is successful in

teaching reading 100% of the time.

Finally, the Commission’s complaint

charges that respondents deceptively

represented that their infomercials were

independent television programs and

not paid commercial advertising.

The proposed consent order contains

provisions designed to remedy the

violations charged and to prevent the

respondent from engaging in similar

acts and practices in the future. The

proposed consent order prohibits the

respondents from representing that

Eden’s Secret Nature’s Purifying

Product, or any substantially similar

product, (1) causes significant weight

loss, (2) prevents or cures illnesses,

including but not limited to fatigue,

headaches, depression, arthritis,

insomnia, immune suppression, and

premenstrual syndrome, (3) will cleanse

the body of harmful toxins, or (4) will

purify the body’s blood supply.

The proposed consent order also

prohibits the respondents from

representing that Sable Hair Farming

System, or any substantially similar

product, (1) will stop, prevent, cure,

relieve, reverse or reduce hair loss, (2)

will promote the growth of hair where

hair has already been lost, or (3) is

superior to Rogaine and Minoxidil in

stopping, preventing, curing, relieving,

reversing or reducing hair loss. In

addition, the proposed consent order

prohibits respondents from advertising,

packaging, labeling, promoting, offering

for sale, selling, or distributing any

product that is represented as promoting

hair growth or preventing hair loss,

unless the product is the subject of an

approved new drug application for such

purpose under the Federal Food, Drug,

and Cosmetic Act, 21 U.S.C. 301 et seq.

The proposed consent order also

prohibits the respondents from

representing that Kevin Trudeau’s Mega

Memory System, or any substantially

similar product, will enable users to

achieve a photographic memory. In

addition, the proposed consent order

prohibits the respondents from

representing that Kevin Trudeau’s Mega

Memory System, or any substantially

similar product, is effective in causing

adults or children with learning

disabilities or attention deficit disorder

to substantially improve their memory,

unless, at the time the representation is

made, respondents possess and rely

upon competent and reliable evidence,

which when appropriate must be

competent and reliable scientific

evidence, that substantiates the

representation.

The proposed consent order also

prohibits the respondents from

representing that Dr. Callahan’s

Addiction Breaking System, or any

substantially similar product or

program, (1) reduces an individual’s

compulsive desire to eat, leading to

significant weight loss, (2) reduces an

individual’s compulsive desire to eat,

leading to significant weight loss

without the need to diet or exercise, or

(3) cures addictions and compulsions,

including but not limited to, smoking,

eating, and using alcohol or heroin.

The proposed consent order also

prohibits the respondents from

representing with respect to Jeanie

Eller’s Action Reading, or any other

product or program that provides

instruction in any aspect of reading, the

extent to which individuals who use

such product will learn to read or the

success rate of individuals who use

such product, unless the representation

is substantiated.

The proposed consent order also

prohibits the respondents from (1)

misrepresenting the existence, contents,

validity, results, conclusions or

interpretations of any test, study or

research, (2) representing the benefits,

performance or efficacy of any product

or program, unless the representation is

substantiated, and (3) representing that

the experience represented by any user

testimonial or endorsement of any

product or program represents the

typical or ordinary experience of the

members of the public, unless the

representation is substantiated or clearly

and prominently qualified.

In addition, the proposed consent

order prohibits the respondents from

creating, producing, selling or

disseminating (1) any advertisement

that misrepresents that it is not a paid

advertisement, (2) any television

commercial or other video

advertisement fifteen minutes in length

or longer that does not clearly and

prominently disclose within the first

thirty seconds and immediately before

each presentation of ordering

instructions that the program is a paid

advertisement for the product or service,

and (3) any radio commercial or other

radio advertisement five minutes in

length or longer that does not broadcast

clearly an audibly within the first thirty

seconds and immediately before each

presentation of ordering instructions or
Federal Register / Vol. 63, No. 13 / Wednesday, January 21, 1998 / Notices 3131

periodically through the program, but

no more than approximately ten

minutes apart that the program is a paid

advertisement for the product or service.

The proposed consent order also

requires respondents to pay the Federal

Trade Commission $500,000. The funds

paid by the respondents shall, in the

discretion of the Federal Trade

Commission, be used to provide direct

redress to consumers. If the Federal

Trade Commission determines that

consumer redress is impracticable or

otherwise unwarranted, any funds not

so used shall be paid to the United

States Treasury.

The remaining parts of the proposed

consent order require the respondents

(1) to maintain promotional and

substantiation materials related to the

claims covered by the order, (2) to

deliver a copy of the order to all current

and future principals, officers, directors,

and managers, and deliver a summary of

the order to all current and future

employees, agents, and representatives

having responsibilities with respect to

the subject matter of this order, (3) to

notify the Commission of any changes

in the structure of the proposed

corporate respondent, (4) to notify the

Commission of any changes in

employment of the individual

respondent, and (5) to file one or more

compliance reports.

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.

Donald S. Clark,

Secretary.

[FR Doc. 98–1360 Filed 1–20–98; 8:45 am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

[File No. 942–3278]

Tru-Vantage International, L.L.C.;

Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

SUMMARY: The consent agreement in this

matter settles alleged violations of

federal law prohibiting unfair or

deceptive acts or practices or unfair

methods of competition. The attached

Analysis to Aid Public Comment

describes both the allegations in the

draft complaint that accompanies the

consent agreement and the terms of the

consent order—embodied in the consent

agreement—that would settle these

allegations.

DATES: Comments must be received on

or before March 23, 1998.

ADDRESSES: Comments should be

directed to: FTC/Office of the Secretary,

Room 159, 6th St. and Pa. Ave., NW.,

Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

C. Steven Baker or Russell W. Damtoft,

Federal Trade Commission, Chicago

Regional Office, 55 East Monroe St.,

Suite 1860, Chicago, IL 60603. (312)

353–8156.

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 January 13, 1998), 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,

NW., Washington, DC 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 to

Aid Public Comment

The Federal Trade Commission has

accepted an agreement, subject to final

approval, to a proposed consent order

from respondent Tru-Vantage

International, L.L.C.

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 and take

other appropriate action or make final

the agreement’s proposed order.

This matter concerns an efficacy

claim made regarding Howard Berg’s

Mega Reading promoted by respondent.

The Commission’s complaint charges

that respondent, in concert with

Howard S. Berg and Kevin Trudeau,

made a false and unsubstantiated claim

that Howard Berg’s Mega Reading is

successful in teaching anyone,

including adults, children and disabled

individuals, to significantly increase

their reading speed while substantially

comprehending and retaining the

material.

The proposed consent order contains

provisions designed to remedy the

violations charged and to prevent the

respondent from engaging in similar

acts and practices in the future. The

proposed order extends to any product

or program purported to significantly

increase one’s reading speed.

Part I of the proposed consent order

prohibits the respondent from

representing that Howard Berg’s Mega

Reading, or any substantially similar

product, is successful in teaching

anyone, including adults, children and

disabled individuals, to increase their

reading speed above 800 words per

minute while substantially

comprehending and retaining the

material. Part II of the proposed order

prohibits the respondent from

representing the performance, benefits,

or efficacy of any product or program

purported to significantly increase one’s

reading speed, unless the representation

is substantiated.

The remaining parts of the proposed

consent order require the respondent to

maintain promotional and

substantiation materials related to the

claims covered by the order, to provide

a copy of the order to designated parties

having responsibilities with respect to

the subject matter of this order, to notify

the Commission of any changes in the

company structure, and to file one or

more compliance reports.

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.

Donald S. Clark,

Secretary.

[FR Doc. 98–1364 Filed 1–20–98; 8:45 am]

BILLING CODE 6750–01–M

GENERAL SERVICES

ADMINISTRATION

Proposed Collection; Comment

Request Entitled Nondiscrimination in

Federal Financial Assistance Programs

AGENCY: Office of Equal Employment

Opportunity, GSA.