Federal Register / Vol. 60, No. 99 / Tuesday, May 23, 1995 / Notices 27309

1Copies of the Complaint and the Decision and

Order are available from the Commission’s Public

Reference Branch, H–130, 6th Street & Pennsylvania

Avenue, N.W., Washington, D.C. 20580.

FS–1 and Vancol, the respondents have

represented, directly or by implication,

that testimonials from consumers

appearing in advertisements for FS–1

and Vancol reflect the typical or

ordinary experience of members of the

public who have used the products. The

complaint charges that the respondents

failed to possess and rely upon a

reasonable basis for these

representations.

The proposed order contains

provisions designed to remedy the

alleged violations. The proposed order

also provides for consumer redress of

$100,000. In the event that consumer

redress is not feasible, the proposed

order provides that the funds will be

deposited in the United States Treasury.

Part I of the proposed order requires

the respondents to cease from making

any representation that any product or

program provides any weight loss

benefit, is an effective treatment for

obesity, reduces hunger or suppresses

the appetite, decreases the intestinal

absorption of calories, reduces serum

cholesterol, provides, can provide or

helps provide any other health benefit

or has any effect on cellulite or on the

user’s body measurements, unless they

possess and rely upon competent and

reliable scientific evidence that

substantiates the representation. Part

II(a) of the order prohibits the

respondents from misrepresenting the

existence, contents, validity, results,

conclusions, or interpretations of any

test or study. Part II (b) and (c),

respectively, prohibit misrepresentation

of the amount of fiber or any nutrient

contained in a product and prohibit

false claims that a product is a high

source of fiber or any other nutrient.

Part II(d) prohibits misrepresentation of

the research activities or other activities

of National Dietary Research or any

other organization affiliated with the

respondents.

Part III of the proposed order

prohibits the respondents from

disseminating any advertisement for any

product or program that misrepresents,

in any manner, that it is not a paid

advertisement. Part IV of the order

prohibits representations that

testimonials represent the typical or

ordinary experience of consumers who

use the product, unless the

representations are true and the

respondents have competent and

reliable evidence that substantiates such

representations. An additional provision

in this Part permits the respondents to

use a truthful, non-typical testimonial, if

they disclose clearly and prominently in

close proximity to the testimonial what

the generally expected performance

would be in the depicted circumstances,

or the limited applicability of the

endorser’s experience to what

consumers may generally expect to

achieve, that is, that consumers should

not expect to experience similar results.

Parts V and VI of the proposed order

contain provisions permitting certain

claims that are approved for labels by

the FDA, under either the Nutrition

Labeling and Education Act, a tentative

final or final monograph, or any new

drug application approved by the FDA.

Part VII of the proposed order requires

the respondents to pay $100,000 in

consumer redress, or if that is

impracticable, to pay the same amount

to the U.S. Treasury.

Parts VIII, IX, X, XI and XII of the

proposed order are compliance

reporting provisions that require the

respondents to: retain all records that

would bear on the respondents’

compliance with the order; to notify the

Commission of any changes in the

structure of the corporate respondents

that may affect their compliance

obligations under the order, or any

changes in the business affiliations of

the individual respondent relating to the

advertising, offering for sale, sale or

distribution of consumer products; to

distribute copies of the order to the

corporate respondents’ operating

divisions and to those persons

responsible for the preparation and

review of advertising material covered

by the order; and to report to the

Commission their compliance with the

terms of the order.

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. 95–12587 Filed 5–22–95; 8:45 am]

BILLING CODE 6750–01–M

[Dkt. 9271]

B.A.T Industries p.l.c., et al.; Prohibited

Trade Practices, and Affirmative

Corrective Actions

AGENCY: Federal Trade Commission.

ACTION: Consent order.

SUMMARY: In settlement of alleged

violations of federal law prohibiting

unfair acts and practices and unfair

methods of competition, this consent

order permits, among other things,

B.A.T Industries and Brown &

Williamson Tobacco Corporation to

consummate the acquisition of

American Tobacco Company, but

requires them to divest, within twelve

months, six American Tobacco discount

cigarette brands and to divest to the

purchaser of these brands three

American Tobacco full-revenue brands,

as well as the American Tobacco

manufacturing facility in Reidsville,

N.C. If the required divestitures are not

completed on time, the consent order

permits the Commission to appoint a

trustee to complete the transactions. In

addition, the consent order requires the

respondents, for ten years, to obtain

Commission approval before acquiring

any interest in a cigarette manufacturer

or any assets used to manufacture or

distribute cigarettes in the United

States.

DATES: Complaint issued November 28,

1994. Order issued April 19, 1995.1

FOR FURTHER INFORMATION CONTACT:

Joseph Krauss, FTC/H–324, Washington,

D.C. 20580. (202) 326–2713.

SUPPLEMENTARY INFORMATION: On

Wednesday, January 11, 1995, there was

published in the Federal Register, 60 FR

2751, a proposed consent agreement

with analysis In the Matter of B.A.T

Industries p.l.c., et al., for the purpose

of soliciting public comment. Interested

parties were given sixty (60) days in

which to submit comments, suggestions

or objections regarding the proposed

form of the order.

Comments were filed and considered

by the Commission. The Commission

has made its jurisdictional findings and

entered an order to divest, as set forth

in the proposed consent agreement, in

disposition of this proceeding.

(Sec. 6, 38 Stat. 721; 15 U.S.C. 46. Interpret

or apply sec. 5, 38 Stat. 719, as amended; sec.

7, 38 Stat. 731, as amended; 15 U.S.C. 45, 18)

Donald S. Clark,

Secretary.

[FR Doc. 95–12585 Filed 5–22–95; 8:45 am]

BILLING CODE 6750–01–M

[File No. 932–3234]

Original Marketing Inc.; Proposed

Consent Agreement with Analysis to

Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

SUMMARY: In settlement of alleged

violations of federal law prohibiting

unfair acts and practices and unfair

methods of competition, this consent

agreement, accepted subject to final

Commission approval, would prohibit,

among other things, the Florida-based