33090 Federal Register / Vol. 66, No. 119 / Wednesday, June 20, 2001 / Notices

connection with the advertising or sale

of a colloidal silver product, Part IV

prohibits proposed respondents from

representing that ingestion of colloidal

silver is proven effective in the

treatment of disease or any number of

diseases, or representing that medical

studies demonstrate that ingestion of

colloidal silver is safe or has no adverse

side effects. Part V prohibits proposed

respondents from representing that

ingestion of colloidal silver is effective

in the treatment of arthritis, blood

poisoning, cancer, cholera, diptheria,

diabetes, dysentery, gonorrheal herpes,

influenza, leprosy, lupus, malaria,

meningitis, rheumatism, shingles, staph

infections, strep infections, syphilis,

tuberculosis, whooping cough, or yeast

infections unless, at the time the

representation is made, proposed

respondents possess and rely upon

competent and reliable scientific

evidence that substantiates the

representation.

The proposed order defines ‘‘shark

cartilage product’’ as ForMor’s Ultimate

II Shark Cartilage Concentrate or any

covered product or service label for

which the term ‘‘shark cartilage’’

appears on the covered product or

service label or any advertising or

promotion, and any covered product or

service containing ‘‘shark cartilage.’’

Part VI requires proposed respondents,

in connection with the advertising or

sale of any shark cartilage product or

any covered product or service, from

representing that ingestion of such

product is effective in the treatment of

arthritis or other degenerative or

inflammatory conditions, or is effective

in the treatment of brain cancer, unless,

at the time the representation is made,

proposed respondents possess and rely

upon competent and reliable scientific

evidence that substantiates the

representation.

Part VII prohibits proposed

respondents, in connection with the

advertising or sale of any covered

product or service, from

misrepresenting the existence, contents,

validity, results, conclusions, or

interpretations of any test, study, or

research. Part VIII prohibits proposed

respondents from representing that the

experience represented by any user

testimonial or endorsement of a covered

product or service represents the typical

or ordinary experience of members of

the public who use the covered product

or service, unless: (a) At the time the

representation is made, proposed

respondents possess and rely upon

competent and reliable scientific

evidence that substantiates the

representation; or (b) proposed

respondents disclose, clearly and

prominently, and in close proximity to

the endorsement or testimonial, either

what the generally expected results

would be for users of the covered

product or service, 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.

Part IX provides that proposed

respondents, in connection with the

advertising or sale of any St. John’s Wort

product, colloidal silver product, shark

cartilage product, or any covered

product or service, shall not make any

representation that such product or

service is effective in the mitigation,

treatment, prevention, or cure of any

disease or illness, or about the health

benefits, performance, safety, or efficacy

of any such product or service, unless,

at the time the representation is made,

proposed respondents possess and rely

upon competent and reliable scientific

evidence that substantiates the

representation.

Part X requires proposed respondents

to send a notice to all purchasers of St.

John’s Kava Kava, colloidal silver, and

Ultimate II Shark Cartilage Concentrate

informing them of the Commission’s

complaint allegations and describing the

terms of the settlement. Part XI requires

proposed respondents to provide

refunds upon request to purchasers of

colloidal silver and Ultimate II Shark

Cartilage Concentrate, and Part XII

requires proposed respondents to

submit a report specifying the steps they

have taken to comply with Part X

(purchaser notice provisions) and Part

XI (purchaser refund provisions).

Part XIII requires proposed

respondents to take reasonable steps to

ensure that all employees and agents

engaged in sales, order verification, and

other customer service functions

comply with Parts I through IX of the

proposed order. It further requires

proposed respondents to terminate any

employee who knowingly engages in

conduct that violates these parts of the

order. Part XIV requires proposed

respondents to send each purchaser for

resale—defined as any purchaser of any

of respondents’ St. John’s Wort,

colloidal silver, or shark cartilage

products who orders five or more units

of any such product at any one time or

twenty or more units of any such

products in any three-month period—

the purchaser notice provisions required

by Part X. In the event that proposed

respondents receive any information

that subsequent to receipt of such notice

a purchaser is using or disseminating

any advertisement or promotional

material or making any oral statement

that contains any prohibited

representation or that does not contain

the disclosure required pursuant to Part

III, proposed respondents are required

to investigate such information and

upon verification terminate, and not

resume, sales or shipments to such

purchaser for resale. Part XV would

allow proposed respondents to make

any representation that is specifically

permitted in the labeling for any

product by regulations promulgated by

the FDA pursuant to the Nutrition

Labeling and Education Act of 1990,

and would allow respondents to make

any representation for any drug that is

permitted by the FDA in the drug’s

labeling.

Part XVI of the proposed order

contains record keeping requirements

for materials that substantiate, qualify,

or contradict claims covered by the

proposed order. Part XVII of the

proposed order requires distribution of

a copy of the order to current and future

officers and agents. Part XVIII provides

for Commission notification upon a

change in the corporate respondent and

Part XIX requires Commission

notification when the proposed

individual respondent changes his

business or employment. Part XX

requires the proposed respondents to

file with the Commission a report

demonstrating compliance with the

terms and provisions of the order. Part

XXI provides for the termination of the

order after twenty (20) 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 the proposed order or

to modify in any way their terms.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 01–15547 Filed 6–19–01; 8:45 am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

[File No. 012 3091]

Michael Forrest, d/b/a Jaguar

Enterprises of Santa Ana; 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

Federal Register / Vol. 66, No. 119 / Wednesday, June 20, 2001 / Notices 33091

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:

Michael Milgrom, Federal Trade

Commission, East Central Region, Eaton

Center, Suite 200, 1111 Superior Ave.,

Cleveland, OH 44114–2507. (216) 263–

3419.

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 31⁄2 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 Michael Forrest, individually and

d/b/a Jaguar Enterprises of Santa Ana

(‘‘Forrest’’ or the ‘‘proposed

respondent’’). Forrest is an Internet

seller of various electronic devices and

herbal remedies purported to cure or

treat a wide variety of illnesses and

conditions.

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.

This matter concerns advertising and

promotional practices related to the sale

of various products known as Black

Box, Magnetic Pulser, Magnetic MultiPulser, Beck-Rife unit, Portable Rife

Frequency Generator, PC-Rife#1, PCRife#2, PC-Rife#3, and Miracle Herbs.

Miracle Herbs is a combination of herbal

ingredients purported to cure cancer

and other serious diseases. The other

products are devices that purport to

cure cancer, AIDS, arthritis and other

serious diseases by means of passing

either an electric current or a magnetic

pulse through the body. The

Commission’s complaint charges that

Forrest failed to have a reasonable basis

for the following claims, which were

made on two Internet websites:

(1) The Black Box is effective in

treating cancer, AIDS, hepatitis, Gulf

War Syndrome, Chronic Fatigue

Syndrome and rheumatoid arthritis;

(2) The Magnetic Pulser, together with

the Black Box, is effective in treating

cancer, AIDS, hepatitis, Gulf War

Syndrome, Chronic Fatigue Syndrome

and rheumatoid arthritis;

(3) The Magnetic Multi-Pulser is

effective in treating cancer, localized

infections and diseases caused by the

herpes virus;

(4) The Beck-Rife unit, Portable Rife

Frequency Generator, PC-Rife #1, PCRife #2, and PC-Rife #3 are effective in

treating cancer and other serious

diseases;

(5) The Black Box, Magnetic Pulser

and Magnetic Multi-Pulser, used as

directed, deactivate disease-causing

viruses, bacteria (including drugresistant bacteria), fungi and other

parasites in humans; and

(6) The Miracle herbs product is

effective in treating cancers of all types,

AIDS, bacterial infections and viral

infections.

The Complaint also alleges that

Forrest claimed that scientific proof

demonstrated the truth of two claims:

(1) That Miracle Herbs is safe and

effective in treating various cancers in

humans with no side effects; and, (2)

that use of the Black Box, Magnetic

Pulser and Magnetic Multi-Pulser is

effective to kill, deactivate or disable

viruses, bacteria, fungi and other

parasites in humans. The Complaint

alleges that these claims of scientific

proof are false.

Part I of the consent order requires

that Forrest not misrepresent that the

two claims listed above are scientifically

proven.

Part II requires that Forrest must

possess competent and reliable

scientific evidence to substantiate any

representation that:

(a) Any electronic therapy device or

any other product or service is effective

in (1) treating or curing cancer, AIDS,

hepatitis, Gulf War Syndrome, Chronic

Fatigue Syndrome, rheumatoid arthritis

or Herpes; (2) treating or preventing

bacterial infections; or (3) treating or

preventing viral infections;

(b) That any such product or service

is effective in the mitigation, treatment,

prevention, or cure of any disease or

illness; or

(c) About the health benefits,

performance, safety, or efficacy of any

such product or service.

Part III prohibits false claims about

scientific support for any electronic

therapy device or any service, program,

dietary supplement, food, drug, or

device. Part IV permits Forrest to make

certain claims for devices, drugs or

dietary supplements that are permitted

in labeling under laws and/or

regulations administered by the U.S.

Food and Drug Administration. Parts V

and VI require Forrest to offer and make

a refund to all purchasers of the listed

products from Jaguar since April 1,

1999, using the forms and procedures

specified. Part VII requires Forrest to file

a report with the Commission detailing

how he has complied with Parts V and

VI.

The remainder of the proposed order

contains standard requirements that

proposed respondent 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; distribute

copies of the order to any distributors

that it might set up; notify the

Commission of any change in his status

that may affect compliance obligations

under the order; and file one or more

reports detailing his compliance with

the order. Part XIV of the proposed

order is a provision whereby the order,

absent certain circumstances, terminates

twenty years from the date of issuance.

33092 Federal Register / Vol. 66, No. 119 / Wednesday, June 20, 2001 / Notices

This proposed order, if issued in final

form, will resolve the claims alleged in

the complaint against the named

respondent. 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 to order or to modify in any

way their terms.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 01–15549 Filed 6–19–01; 8:45 am]

BILLING CODE 6750–01–M

FEDERAL TRADE COMMISSION

[File No. 002 3098]

MaxCell BioScience, 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

complaint that accompanies the consent

agreement and 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:

Matthew Daynard, FTC/S–4002, 600

Pennsylvania Ave., NW., Washington,

DC 20580. (202) 326–3291.

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 FR 2.34), notice is

hereby given that the above-captioned

consent agreement containing a consent

order to cease and desist, having been

filed with an 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 comments should

be filed, and should be accompanied, if

possible, by a 31⁄2 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, subject to final approval, an

agreement containing a consent order

from MaxCell BioScience, Inc. and

Stephen Cherniske, president of the

corporation (collectively, ‘‘MaxCell’’).

The proposed consent order has been

placed on the public record for thirty

(30) days for receipt 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 or make

final the agreement’s proposed order.

This matter involves alleged

misleading representations about

Longevity Signal Formula (‘‘LSF’’), a

dietary supplement containing, among

other ingredients, arginine, DHEA, and

7-Keto DHEA, and an Anabolic/

Catabolic IndexTM (‘‘ACI’’) test, an athome (with laboratory analysis) urine

test that measures the ratio of 17-

ketosteroids to creatinine in one urine

sample. This matter concerns allegedly

false and unsubstantiated advertising

claims made in cassette tapes and web

sites distributed directly to consumers

and through distributors regarding the

ability of LSF to reverse the aging

process and, consequently, to prevent,

treat, or cure numerous age-related

diseases and conditions, and the ability

of the ACI test to measure a person’s

overall healthiness and youthfulness

and to prove the effectiveness of LSF for

reversing aging.

According to the FTC complaint,

MaxCell falsely claimed that the ACI

test provides a clinical gauge of an

individual’s overall healthiness or

youthfulness and demonstrates that LSF

prevents or reverses aging. In fact, the

complaint alleges that the ACI test only

measures inactive androgen breakdown

products in the urine, which products,

in most instances, are not a significant

or reliable measure of overall

healthiness or youthfulness. The

complaint further alleges that MaxCell

falsely claimed that scientific testing

demonstrates the ability of LSF to:

Significantly reduce the risk of

atherosclerosis; increase bone density,

improve glucose tolerance, reduce body

fat, increase muscle mass, and increase

growth hormone levels in postmenopausal women; improve liver

function; and significantly increase life

expectancy.

In addition, the complaint challenges

claims that LSF: Significantly reduces

the risk of atherosclerosis; cures

arthritis; lowers blood pressure;

significantly lowers cholesterol levels in

the bloodstream; strengthens bones;

reduces or eliminates the need for

corrective eyewear; promotes significant

weight loss and muscle gain without

dieting or exercise; increases glucose

tolerance; increases Growth Hormone

levels in the body, thereby causing

positive clinical effects on health;

improves liver function; prevents or

reverses aging; and significantly

increases life expectancy. The

complaint alleges that these claims are

unsubstantiated.

Finally, the complaint charges that

MaxCell, by providing advertisements

and promotional materials to

distributors for use in their marketing

and sale of LSF and the ACI test, have

provided means and instrumentalities to

distributors of MaxCell’s products in

furtherance of the deceptive and

misleading acts or practices alleged in

the complaint.

The proposed consent order contains

provisions designed to prevent MaxCell

and its distributors from engaging in

similar acts and practices in the future

and to redress consumer injury by

requiring MaxCell to make a monetary

payment to the Commission.

Part I of the order bans claims that the

ACI Test or any other substantially

similar device provides a clinical gauge

of an individual’s overall healthiness or

youthfulness. ‘‘Substantially similar

device’’ is defined as any product that

measures the ratio of 17-ketosteroids to

creatinine in one urine sample.