Federal Register / Vol. 60, No. 238 / Tuesday, December 12, 1995 / Notices 63717

was low in fat, low in calories, and

lower in fat than ice cream. At the

serving size for frozen yogurt commonly

consumed, Pure Indulgence was not low

in fat or low in calories. Further, Pure

Indulgence was not lower in fat than

many ice creams.

The Commission’s complaint alleges

that the above representations for

certain flavors of Pure Indulgence, at the

time the advertising was disseminated,

were false and misleading.

The consent order contains provisions

designed to remedy the violations

charged and to prevent Dannon from

engaging in similar deceptive and unfair

acts in the future.

Part I of the Commission’s order

prohibits respondent, in connection

with the manufacture, advertising,

packaging, labeling, promotion, offering

for sale, sale or distribution of any

frozen food product, from

misrepresenting, in any manner,

directly or by implication, through

numerical or descriptive terms or any

other means, the existence or amount of

fat, saturated fat, cholesterol or calories

in any such product. However, if any

representation covered by this Part

either directly or by implication

conveys any nutrient content claim

defined (for purposes of labeling) by any

regulation promulgated by the Food and

Drug Administration, compliance with

this Part shall be governed by the

qualifying amount for such defined

claim as set forth in that regulation.

Part II of the order provides that

nothing in the order shall prohibit

respondent from making any

representation that is specifically

permitted in labeling for any such

product in regulations promulgated by

the Food and Drug Administration

pursuant to the Nutrition Labeling and

Education Act of 1990.

Under the terms of Part III of the

order, respondents shall pay

$150,000.00 to the U.S. Treasury.

Part IV of the order requires Dannon

to maintain copies of all materials

relating to advertisements covered by

the order and all documents relating to

substantiation of advertising claims

covered by the order.

Part V requires Dannon to notify the

Commission of any changes in corporate

structure that might affect compliance

with the order.

Part VI requires Dannon to distribute

copies of the order to certain company

officials and employees and certain

other representatives and agents of

Dannon.

Part VII requires Dannon to file with

the Commission a report detailing

compliance with the order.

Part VIII provides for termination of

the order twenty years from the date of

issuance.

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 proposed order or to

modify any of their terms.

[FR Doc. 95–30215 Filed 12–11–95; 8:45 am]

BILLING CODE 6750–01–M

[File No. 942–3012]

Safe Brands Corporation, Warren

Distribution, Inc. and ARCO Chemical

Company; Consent Agreement With

Analysis to Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: 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

Safe Brands, the manufacturer of Sierra

antifreeze, Warren Distribution, its

parent company, and ARCO, the

supplier of the principal ingredient in

Sierra antifreeze, from making

unsubstantiated claims about the safety

and environmental benefits of Sierra.

They would also be required to put a

statement on Sierra containers

cautioning consumers that it may be

harmful if swallowed. The Commission

alleged that the companies had claimed,

without adequate substantiation, that

Sierra is absolutely safe for people and

pets, that Sierra is generally safer for the

environment than conventional

antifreezes because it is biodegradable,

and that Sierra and its container are

recycled.

DATES: Comments must be received on

or before February 12, 1996.

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:

Joel Winston, Bureau of Consumer

Protection, Federal Trade Commission,

S–4002, 6th Street & Pennsylvania Ave.,

NW., Washington, DC 20580 (202) 326–

3153; Michael Dershowitz, Bureau of

Consumer Protection, Federal Trade

Commission, S–4002, 6th Street &

Pennsylvania Ave., NW., Washington,

DC 20580 (202) 326–3158.

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 following

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. 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)).

United States of America Before

Federal Trade Commission

In the Matter of Safe Brands Corporation,

a corporation, Warren Distribution, Inc., a

corporation, and ARCO Chemical Company,

a corporation.

[File No. 942 3012]

Agreement Containing Consent Order to

Cease and Desist

The Federal Trade Commission

having initiated an investigation of

certain acts and practices of proposed

respondents Safe Brands Corporation, a

corporation, Warren Distribution, Inc., a

corporation, and ARCO Chemical

Company, a corporation, and it now

appearing that proposed respondents

are willing to enter into an agreement

containing an order to cease and desist

from the acts and practices being

investigated,

It is hereby agreed by and between

Safe Brands Corporation, Warren

Distribution, Inc., and ARCO Chemical

Company, by their duly authorized

officers, and their attorneys, and

counsel for the Federal Trade

Commission that:

1. Proposed respondent Safe Brands

Corporation is a corporation organized,

existing and doing business under and

by virtue of the laws of the State of

Nebraska. It is a wholly-owned

subsidiary of proposed respondent

Warren Distribution, Inc. Proposed

respondent Warren Distribution, Inc. is

a corporation organized, existing and

doing business under and by virtue of

the laws of the State of Nebraska.

Proposed respondents Safe Brands

Corporation and Warren Distribution,

Inc. have their principal offices or

places of business at 727 South 13th

Street, Omaha, Nebraska 68102.

Proposed respondent ARCO Cemical

Company is a corporation organized,

existing and doing business under and

by virtue of the law of the State of

Delaware with its principal office or

place of business at 3801 West Chester

Pike, Newtown Square, Pennsylvania

19073.
63718 Federal Register / Vol. 60, No. 238 / Tuesday, December 12, 1995 / Notices

2. Proposed respondents admit all the

jurisdictional facts set forth in the draft

of complaint here attached.

3. Proposed respondents waive:

(a) Any further procedural steps;

(b) The requirement that the

Commission’s decision contain a

statement of findings of fact and

conclusions of law; and

(c) All rights to seek judicial review

or otherwise to challenge or contest the

validity of the order entered pursuant to

this agreement.

4. This agreement shall not become a

part of the public record of the

proceeding unless and until it is

accepted by the Commission. If this

agreement is accepted by the

Commission, it, together with the draft

of the complaint contemplated hereby,

will be placed on the public record for

a period of sixty (60) days and

information in respect thereto publicly

released. The Commission thereafter

may either withdraw its acceptance of

this agreement and so notify proposed

respondents, in which event it will take

such action as it may consider

appropriate, or issue and serve its

complaint (in such form as the

circumstances may require) and

education, in disposition of the

proceeding.

5. This agreement is for settlement

purposes only and does not constitute

an admission by proposed respondents

that the law has been violated as alleged

in the attached draft complaint or that

the facts as alleged in the attached draft

complaint, other than the jurisdictional

facts, are true.

6. This agreement contemplates that,

if it is accepted by the Commission, and

if such acceptance is not subsequently

withdrawn by the Commission pursuant

to the provisions of § 2.34 of the

Commission’s Rules, the Commission

may without further notice to proposed

respondents, (1) issue its complaint

corresponding in form and substance

with the draft complaint here attached

and its decision containing the

following order to cease and desist in

deposition of the proceeding, and (2)

make information public in respect

thereto. When so entered, the order to

cease and desist shall have the same

force and effect and may be altered,

modified or set aside in the same

manner and within the same time

provided by statute for other orders. The

order shall become final upon service.

Delivery by the U.S. Postal Service of

the decision containing the agreed-to

order to proposed respondents’ address

as stated in this agreement shall

constitute service. Proposed

respondents waive any right they might

have to any other manner of service.

The complaint may be used in

construing the terms of the order, and

no agreement, understanding,

representation, or interpretation not

contained in the order or in the

agreement may be used to vary or

contradict the terms of the order.

7. Proposed respondents have read

the proposed complaint and the order

contemplated hereby. They understand

that once the order has been issued,

they will be required to file one or more

compliance reports showing they have

fully complied with the order. Proposed

respondents further understand that

they may be liable for civil penalties in

the amount provided by law for each

violation of the order after it becomes

final.

Order

Definition

For purposes of this Order, the

following definition shall apply:

‘‘Competent and reliable scientific

evidence’’ means tests, analyses,

research, studies or other evidence

based on the expertise of professionals

in the relevant area, that has been

conducted and evaluated in an objective

manner by persons qualified to do so,

using procedures generally accepted in

the profession to yield accurate and

reliable results.

I

It is ordered that respondents, Safe

Brands Corporation, a corporation,

Warren Distribution, Inc., a corporation,

and ARCO Chemical Company, a

corporation, their successors and

assigns, and their officers,

representatives, agents, and employees,

directly or through any corporation,

subsidiary, division, or other device, in

connection with the advertising,

labeling, promotion, offering for sale,

sale, or distribution of any antifreeze,

coolant, or deicer product in or affecting

commerce, as ‘‘commerce’’ is defined in

the Federal Trade Commission Act, do

forthwith cease and desist from

representing, in any manner, directly or

by implication, that any such product

will not harm the environment, is less

harmful to the environment than other

products, or offers any environmental

benefit, unless at the time of making

such representation, respondents

possess and rely upon competent and

reliable evidence, which when

appropriate must be competent and

reliable scientific evidence, that

substantiates such representation.

II

It is further ordered that respondents,

Safe Brands Corporation, a corporation,

Warren Distribution, Inc., a corporation,

and ARCO Chemical Company, a

corporation, their successors and

assigns, and their officers,

representatives, agents, and employees,

directly or through any corporation,

subsidiary, division, or other device, in

connection with the advertising,

labeling, promotion, offering for sale,

sale, or distribution of any antifreeze,

coolant, or deicer product in or affecting

commerce, as ‘‘commerce’’ is defined in

the Federal Trade Commission Act, do

forthwith cease and desist from making

any representation, in any manner,

directly or by implication, about the

safety or relative safety of such product

for humans or animals unless, at the

time of making such representation,

respondents possess and rely upon

competent and reliable scientific

evidence that substantiates such

representation.

III

It is further ordered that respondents,

Safe Brands Corporation, a corporation,

Warren Distribution, Inc., a corporation,

and ARCO Chemical Company, a

corporation, their successors and

assigns, and their officers,

representatives, agents, and employees,

directly or through any corporation,

subsidiary, division, or other device, in

connection with the labeling, offering

for sale, sale, or distribution of any

propylene glycol-based antifreeze or

coolant product in or affecting

commerce, as ‘‘commerce’’ is defined in

the Federal Trade Commission Act,

shall disclose on the front of the

container of all such products the

following:

‘‘See Back Panel for CAUTIONARY

INFORMATION’’

and shall disclose on the back of the

container of all such products the

following:

‘‘CAUTIONARY INFORMATION: This

Product MAY BE HARMFUL IF

SWALLOWED. STORE SAFELY

AWAY FROM CHILDREN AND PETS.

Do not store in open or unlabeled

containers.’’

Each disclosure shall be in a

conspicuous and prominent place on

the container, in conspicuous and

legible type in contrast by typography,

layout, or color with all other printed

material on the container. The

disclosure on the back of the container

shall be surrounded by a one (1) point

rule. The disclosure on the front of the

container and the first two sentences of

the disclosure on the back of the

container shall be in type at least as

large as the largest print type on the

back of the container, but, in any case,
Federal Register / Vol. 60, No. 238 / Tuesday, December 12, 1995 / Notices 63719

no smaller than ten (10) point type. The

words ‘‘CAUTIONARY

INFORMATION’’ on the front and back

of the container shall be in bold type.

The last sentence of the disclosure on

the back of the container shall be in type

at least as large as the type in which the

majority of the printed material on the

back of the container is printed.

The back of the container shall also

contain the following statement, printed

in type at least as large as the type in

which the majority of the printed

material on the back of the container is

printed:

‘‘Clean up any leaks or spills.’’

IV

It is further ordered that respondents,

Safe Brands Corporation, a corporation,

Warren Distribution, Inc., a corporation,

and ARCO Chemical Company, a

corporation, their successors and

assigns, and their officers,

representatives, agents, and employees,

directly or through any corporation,

subsidiary, division, or other device, in

connection with the advertising,

labeling, promotion, offering for sale,

sale, or distribution of any antifreeze,

coolant, or deicer product in or affecting

commerce, as ‘‘commerce’’ is defined in

the Federal Trade Commission Act, do

forthwith cease and desist from

representing, in any manner, directly or

my implication, the level of vehicular

engine protection provided by any such

product, unless at the time of making

such representation, respondents

possess and rely upon competent and

reliable scientific evidence that

substantiates such representation.

V

It is further ordered that respondents,

Safe Brands Corporation, a corporation,

Warren Distribution, Inc., a corporation,

and ARCO Chemical Company, a

corporation, their successors and

assigns, and their officers,

representatives, agents, and employees,

directly or through any corporation,

subsidiary, division, or other device, in

connection with the advertising,

labeling, promotion, offering for sale,

sale, or distribution of any antifreeze,

coolant, or deicer product in or affecting

commerce, as ‘‘commerce’’ is defined in

the Federal Trade Commission Act, do

forthwith cease and desist from

misrepresenting, in any manner,

directly or by implication, the extent to

which:

A. Any such product or its package is

capable of being recycled; or,

B. Recycling collection programs for

such product or its package are

available.

VI

It is further ordered that the

provisions of this Order shall not apply

to any label or labeling printed prior to

the date of service of this Order and

shipped by respondents to distributors

or retailers prior to one hundred (100)

days after the date of service of this

Order.

VII

It is further ordered that for five (5)

years after the last date of dissemination

of any representation covered by this

Order, respondents, or their successors

and assigns, shall maintain and upon

request make available to the Federal

Trade Commission for inspection and

copying:

A. All materials that were relied upon

in disseminating such representation;

and

B. All tests, reports, studies, surveys,

demonstrations, or other evidence in

their possession or control that

contradict, qualify, or call into question

such representation, or the basis relied

upon for such representation, including

complaints from consumers.

VIII

It is further ordered that respondents

shall distribute a copy of this Order to

each of their operating divisions and to

each of their officers, agents,

representatives, or employees engaged

in the preparation and placement of

advertisements, promotional materials,

product labels or other such sales

materials covered by this order.

IX

It is further ordered that respondents

shall notify the Commission at least

thirty (30) days prior to any proposed

change in the corporations such as a

dissolution, assigned, or sale resulting

in the emergence of a successor

corporation, the creation or dissolution

of subsidiaries, or any other change in

the corporations which may affect

compliance obligations under this

Order.

This Order will terminate twenty

years from the date of its issuance, or

twenty years from the most recent date

that the United States or the Federal

Trade Commission files a complaint

(with or without an accompanying

consent decree) in federal court alleging

any violation of the Order, whichever

comes later; provided, however, that the

filing of such a complaint will not affect

the duration of:

A. Any paragraph in this Order that

terminates in less than twenty years;

B. This Order’s application to any

respondent that is not named as a

defendant in such complaint; and

C. This Order if such complaint is

filed after the Order has terminated

pursuant to this paragraph.

Provided further, that if such

complaint is dismissed or a federal

court rules that the respondent did not

violate any provision of the Order, and

the dismissal or ruling is either not

appealed or upheld on appeal, then the

Order will terminate according to this

paragraph as though the complaint was

never filed, except that the order will

not terminate between the date such

complaint is filed and the later of the

deadline for appealing such dismissal or

ruling and the date such dismissal or

ruling is upheld on appeal.

It is further ordered that respondents

shall, within sixty (60) days later service

of this Order upon them, and at such

other times as the Commission may

require, file with the Commission a

report, in writing, setting forth in detail

the manner and form in which they

have complied with this Order.

Benjamin I. Berman,

Acting Secretary.

Analysis of 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 Safe Brands

Corporation, Warren Distribution, Inc.,

and ARCO Chemical Company.

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 the labeling and

advertising of Sierra Antifreeze-Coolant

(‘‘Sierra’’), a propylene glycol-based

automobile antifreeze marketed by Safe

Brands Corporation and its parent

company, Warren Distribution, Inc. The

Commission’s complaint in this matter

alleges that ARCO Chemical Company

sold the propylene glycol (‘‘PG’’) used

in the manufacture of Sierra and

provided information for, participated

in the preparation of, paid for, and

reviewed and/or approved Sierra

advertising and promotional materials.

The complaint also alleges that ARCO

Chemical itself disseminated

advertisements under its own name for

PG antifreeze generally.

The Commission’s complaint charges

that the respondents claimed in

advertising and promotional materials
63720 Federal Register / Vol. 60, No. 238 / Tuesday, December 12, 1995 / Notices

that compared to conventional, ethylene

glycol-based antifreeze (‘‘EG

antifreeze’’), Sierra and other PG

antifreezes are safer for the environment

generally. According to the complaint,

although respondents had a reasonable

basis that Sierra and other PG

antifreezes, compared to EG antifreeze,

are less toxic, and therefore safer for that

part of the environment that is

composed of humans, pets, and wildlife

that may accidentally ingest it,

respondents did not substantiate their

claim that Sierra and other PG

antifreezes are safer for the environment

generally (e.g., the air, water, soil,

plants, or aquatic life). The complaint

also alleges that respondents

represented without adequate

substantiation that Sierra and other PG

antifreezes are absolutely safe for the

environment after ordinary use and that

because Sierra and other PG antifreezes

are biodegradable, they are absolutely

safe for the environment after ordinary

use. The complaint states that one

reason these claims are unsubstantiated

is that used antifreeze, whether EG or

PG-based, may contain lead and/or

other substances that are hazardous to

the environment.

Furthermore, the complaint charges

that the respondents represented

without adequate substantiation that

Sierra and other PG antifreezes are

absolutely safe for people and pets. The

complaint also charges that respondents

claimed without adequate

substantiation that because Sierra and

other PG antifreezes contain PG—an

ingredient designated by the Food and

Drug Administration as ‘‘generally

recognized as safe’’ and which is found

in foods, drugs, cosmetics, and pet

foods—they are absolutely safe for

people and pets. According to the

complaint, although respondents had a

reasonable basis that Sierra and other

PG antifreezes are safer than EG

antifreeze, respondents lacked

substantiation for the claim that they are

absolutely safe.

In addition, the complaint alleges that

the respondents made the

unsubstantiated representation that

compared to conventional, EG

antifreeze, Sierra provides superior

automotive protection from freezing

temperatures, boil-overs, and corrosion.

Finally, the complaint charges that

the respondents falsely and without

adequate substantiation represented that

Sierra antifreeze and its plastic

container are recyclable. In fact, the

complaint alleges, while both Sierra and

its container are capable of being

recycled, the vast majority of consumers

cannot recycle either of them because

there are few collection facilities

nationwide that accept PG antifreeze or

high-density polyethylene plastic

antifreeze containers for recycling.

The proposed consent order contains

provisions designed to remedy the

violations charged and to prevent the

respondents from engaging in similar

acts and practices in the future.

Part I of the proposed order requires

the respondents to cease and desist from

representing that any antifreeze,

coolant, or deicer product will not harm

the environment, is less harmful to the

environment than other products, or

offers any environmental benefit, unless

the respondents possess competent and

reliable evidence, which when

appropriate must be competent and

reliable scientific evidence, that

substantiates the representation.

Part II of the proposed order requires

the respondents to cease and desist from

making any representation about the

safety or relative safety for humans or

animals of any antifreeze, coolant, or

deicer product, unless they possess

competent and reliable scientific

evidence that substantiates the

representation.

Part III of the proposed order requires

that the respondents print the following

two statements on the back of containers

of all PG antifreeze or coolant products:

‘‘CAUTIONARY INFORMATION: This

Product MAY BE HARMFUL IF

SWALLOWED. STORE SAFELY AWAY

FROM CHILDREN AND PETS. Do not

store in open or unlabeled containers’’

and ‘‘Clean up any leaks or spills.’’ On

the front of all such containers the

following must be disclosed: ‘‘See Back

Panel for CAUTIONARY

INFORMATION.’’ Part III also specifies

the manner in which these disclosures

must be made.

Part IV of the proposed order requires

the respondents to cease and desist from

making any representation about the

level of vehicular engine protection

provided by any antifreeze, coolant, or

deicer product, unless the respondents

possess competent and reliable

scientific evidence that substantiates the

representation.

Part V of the proposed order requires

that the respondents cease and desist

from misrepresenting the extent to

which any antifreeze, coolant, or deicer

product or its package is capable of

being recycled or the extent to which

recycling collection programs are

available.

Part VI of the proposed order provides

that, for up to 100 days after the service

of the order, respondents may continue

to ship products from existing stock in

containers with nonconforming

labeling.

The proposed order also requires the

respondents to maintain materials relied

upon to substantiate the claims covered

by the order, to distribute copies of the

order to certain company officials, to

notify the Commission of any changes

in corporate structure that might affect

compliance with the order, and to file

one or more reports detailing

compliance with the order. The order

also contains a provision stating that it

will terminate after twenty (20) years

absent the filing of a complaint against

respondents alleging a violation 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.

[FR Doc. 95–30216 Filed 12–11–95 8:45 am]

BILLING CODE 6750–01–M

GENERAL ACCOUNTING OFFICE

Federal Accounting Standards

Advisory Board

AGENCY: General Accounting Office.

ACTION: Cancellation of December 14

meeting.

SUMMARY: Pursuant to section 10(a)(2) of

the Federal Advisory Committee Act

(Pub. L. No. 92–463), as amended,

notice is hereby given that the

previously announced December 14

meeting of the Federal Accounting

Standards Advisory Board has been

canceled. Agenda issues planned for the

December meeting will be discussed at

the January 25 meeting, which will be

duly announced in a later edition of the

Federal Register.

FOR FURTHER INFORMATION CONTACT:

Ronald S. Young, Executive Staff

Director, 750 First St., N.E., Room 1001,

Washington, D.C. 20002, or call (202)

512–7350.

Authority: Federal Advisory Committee

Act. Pub. L. No. 92–463, Section 10(a)(2), 86

Stat. 770, 774 (1972) (current version at 5

U.S.C. app. section 10(a)(2) (1988); 41 CFR

101–6.1015 (1990).

Dated: December 7, 1995.

Ronald S. Young,

Executive Director.

[FR Doc. 95–30245 Filed 12–11–95; 8:45 am]

BILLING CODE 1610–01–M