[Federal Register Volume 66, Number 119 (Wednesday, June 20, 2001)]
[Notices]
[Pages 33087-33088]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-15550]


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FEDERAL TRADE COMMISSION

[File No. 002 3312]


Robert C. Spencer & Lisa M. Spencer, d/b/a Aaron Company; 
Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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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 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 July 16, 2001.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 600 Pennsylvania Ave., NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: James Rohrer, Federal Trade 
Commission, Southeast Region, Midrise Bldg., Suite 5M35, 60 Forsyth 
St., S.W., Atlanta, GA 30303.

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 by the 
Commission, has been placed on the public record for a period of thirty 
(30) 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 June 14, 2001), on the 
World Wide Web, at ``http://www.ftc.gov/os/2001/06/index.htm.'' A paper 
copy can be obtained from the FTC Public Reference Room, Room H-130, 
600 Pennsylvania Avenue, NW., Washington, DC 20580, either in person or 
by calling (202) 326-3627.
    Public comment is invited. Comments should be directed to: FTC/
Office of the Secretary, Room 159,600 Pennsylvania. Ave., NW., 
Washington, DC 20580. Two paper copies of each comment should be filed, 
and should be accompanied, if possible, by a 3\1/2\ inch diskette 
containing an electronic copy of the comment. 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 Robert M. Spencer and 
Lisa Spencer, d/b/a/ Aaron Company (``proposed respondents''). Proposed 
respondents marketed ``Colloidal Silver,'' a dietary supplement 
allegedly containing submicroscopic particles of silver that was 
intended to be taken orally for the cure and treatment of more than 650 
diseases. In addition, proposed respondents marketed other dietary 
supplements, including Chitosan with vitamin C for substantial weight 
loss without a restricted calorie diet, and Ultimate Energizer as a 
stimulant and energizer claiming it was safe with no side effects.

[[Page 33088]]

    The proposed consent order has been placed on the public record for 
thirty (30) days for reception of comments by interested persons. 
Comments received during this period will become part of the public 
record. After thirty (30) 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.
    The Commission's complaint charges that proposed respondents made 
false claims that their Colloidal Silver product had been (1) medically 
proven to kill over 650 disease-causing organisms in the body; and (2) 
successfully used to treat all known infections. The Commission's 
complaint also charges that proposed respondents failed to have a 
reasonable basis for claims they made about the Colloidal Silver 
product's (1) efficacy in treating and curing cancer, multiple 
sclerosis, HIV/AIDS, and other specific illnesses; (2) superiority to 
antibiotics in healing and curing infections; (3) safety for human 
consumption without side effects; and (4) superiority in treating 
various medical and health problems in animals. Proposed respondents 
have also been charged with failing to have a reasonable basis for 
claims they made about the efficacy of their Chitosan with vitamin C 
product, the safety claims for their Ultimate Energizer product 
containing Mahuang, and other substances. Such claims, promoting 
dietary supplements, appeared on the website that proposed respondents 
produced or caused to be produced.
    Part I of the consent order prohibits proposed respondents from 
misrepresenting, including by means of metatags, any claims that 
Colloidal Silver or any service, program, dietary supplement, food, 
drug, or device, has been medically proven to kill disease-causing 
organisms or any number of infections in the body. Part II of the order 
requires competent and reliable scientific evidence to substantiate 
representations that Colloidal Silver or any covered product (1) treats 
and cures cancer, multiple sclerosis, HIV/AIDS, and other specific 
illnesses; (2) is superior to antibiotics in healing and curing 
infections; (3) is safe for human consumption and has no side effects; 
(4) treats various medical and health problems in animals; and (5) 
enables consumers to lose substantial weight without the need for a 
restricted diet. Part III of the order prohibits proposed respondents 
from misrepresenting, including by means of metatags, the existence, 
contents or interpretation of any test, study, or research. Part V of 
the order requires that for any future advertisement of products 
containing ephedra or ephedrine, proposed respondents must include 
affirmative warnings concerning safety issues. This warning was 
developed after discussions with the Food and Drug Administration. FDA 
has announced that it intends to initiate a rulemaking for dietary 
supplements for women who are or who may become pregnant. In the event 
that FDA issues a final rule requiring a warning for pregnant women on 
dietary supplements, respondents may substitute that warning for the 
disclosure on that topic required under the proposed order. Part IV of 
the proposed order permits proposed respondents to make certain claims 
for drugs or dietary supplements, respectively, that are permitted in 
labeling under laws and/or regulations administered by the U.S. Food 
and Drug Administration.
    The remainder of the proposed order contains standard requirements 
that proposed respondents maintain advertising and any materials relied 
upon as substantiation for any representation covered by substantiation 
requirements under the order; distribute copies of the order to certain 
company officials and employees; notify the Commission of any change in 
the business entity that may affect compliance obligations under the 
order; and file one or more reports detailing their compliance with the 
order. Part XII of the proposed order is a provision whereby the order, 
absent certain circumstances, terminates twenty years from the date of 
issuance.
    This proposed order, if issued in final form, will resolve the 
claims alleged in the complaint against the named respondents. It is 
not the Commission's intent that acceptance of this consent agreement 
and issuance of a final decision and order will release any claims 
against any unnamed persons or entities associated with the conduct 
described in the complaint.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way their terms.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 01-15550 Filed 6-19-01; 8:45 am]
BILLING CODE 6750-01-M