[Federal Register Volume 60, Number 72 (Friday, April 14, 1995)]
[Notices]
[Pages 19068-19070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9265]



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FEDERAL TRADE COMMISSION
[File No. 932 3332]


Mattel, Inc.; Proposed Consent Agreement With Analysis To Aid 
Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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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, a California-based corporation from 
representing that any aerosol product it sells offers any environmental 
benefit, unless it can substantiate the claim.

DATES: Comments must be received on or before June 13, 1995.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, 
Room 159, 6th St. and Pa. Ave., N.W., Washington, D.C. 20580.

FOR FURTHER INFORMATION CONTACT:
Michael Dershowitz, FTC/S-4002, Washington, D.C. 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 Sec. 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 
Sec. 4.9(b)(6)(ii) of the Commission's Rules of Practice (16 CFR 
4.9(b)(6)(ii)).

    In the matter of Mattel, Inc., a corporation. File No. 932-3332.

Agreement Containing Consent Order to Cease and Desist

    The Federal Trade Commission having initiated an investigation of 
certain acts and practices of Mattel, Inc., a corporation (``proposed 
respondent''), and it now appearing that proposed respondent is 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 Mattel, Inc., by its duly 
authorized officer, and its attorney, and counsel for the Federal Trade 
Commission that:
    1. Proposed respondent Mattel, Inc. is a corporation organized, 
existing and doing business under and by virtue of the laws of the 
State of Delaware, with its principal office or place of business at 
333 Continental Blvd., El Segundo, California, 90245-5012.
    2. Proposed respondent admits all the jurisdictional facts set 
forth in the draft of complaint.
    3. Proposed respondent waives:
    (a) Any further procedural steps;
    (b) The requirement that the Commission's decision contain a 
statement of findings of fact and conclusions of law;
    (c) All rights to seek judicial review or otherwise to challenge or 
contest the validity of the order entered pursuant to this agreement; 
and
    (d) All claims under the Equal Access to Justice Act.
    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 
respondent, 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 decision, in disposition of the 
proceeding.
    5. This agreement is for settlement purposes only and does not 
constitute an admission by proposed respondent that the law has been 
violated as alleged in the draft complaint or that the facts as alleged 
in the 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 Sec. 2.34 of the Commission's 
Rules, the Commission may without further notice to proposed 
respondent, (1) issue its complaint corresponding in form and substance 
with the draft of complaint and its decision containing the following 
order to cease and desist in disposition 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 respondent's address as 
stated in this agreement shall constitute service. Proposed respondent 
waives any right it 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 respondent has read the complaint and the order 
contemplated hereby. It understands that once the order has been 
issued, it will be required to file one or more compliance reports 
showing it has fully complied with the order. Proposed respondent 
further understands that it may be liable for civil penalties in the 
amount provided by law for each violation of the order after it becomes 
final.
[[Page 19069]]

Order

Definitions

    For purposes of this Order, the following definitions shall apply:
    ``Class I ozone-depleting substance'' means a substance that harms 
the environment by destroying ozone in the upper atmosphere and is 
listed as such in Title 6 of the Clean Air Act Amendments of 1960, Pub. 
L. No. 101-549, and any other substance which may in the future be 
added to the list pursuant to Title 6 of the Act. Class I substances 
currently include chlorofluorocarbons, halons, carbon tetrachloride, 
1,1,1-trichloroethane, methyl bromide and hydrobromofluorocarbons.
    ``Class II ozone-depleting substance'' means a substance that harms 
the environment by destroying ozone in the upper atmosphere and is 
listed as such in Title 6 of the Clean Air Act Amendments of 1960, Pub. 
L. No. 101-549, and any other substance which may in the future be 
added to the list pursuant to Title 6 of the Act. Class II substances 
currently include hydrochlorofluorocarbons.
    ``Product'' means any product that is offered for sale, sold or 
distributed to the public by respondent, its successors and assigns, 
under the Barbie brand name or any other brand name of respondent, its 
successors and assigns; and also means any product sold or distributed 
to the public by third parties under private labeling agreements with 
respondent, its successors and assigns.
    ``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 respondent, Mattel, Inc., a corporation, its 
successors and assigns, and its officers, agents, representatives, and 
employees, directly or through any corporation, subsidiary, division, 
or other device, in connection with the labeling, advertising, 
promotion, offering for sale, sale, or distribution of any product 
containing any Class I or Class II ozone-depleting substance, in or 
affecting commerce, as ``commerce'' is defined in the Federal Trade 
Commission Act, do forthwith cease and desist from representing that 
any such product ``contains no chlorofluorocarbons'' or ``contains no 
CFC's'' or representing, in any manner, directly or by implication, 
that any such product will not deplete, destroy, or otherwise adversely 
affect ozone in the upper atmosphere or otherwise harm the atmosphere.
II
    It is further ordered that respondent, Mattel, Inc., a corporation, 
its successors and assigns, and its officers, agents, representatives, 
and employees, directly or through any corporation, subsidiary, 
division, or other device, in connection with the labeling, 
advertising, promotion, offering for sale, sale, or distribution of any 
aerosol 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 offers any environmental benefit, unless at the time of making 
such representation, respondent possesses and relies upon competent and 
reliable evidence, which when appropriate must be competent and 
reliable scientific evidence, that substantiates such representation.
III
    It is further ordered that for five (5) years after the last date 
of dissemination of any representation covered by this Order, 
respondent, or its 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 its possession or control that contradict, qualify, or call 
into question such representation, or the basis relied upon for such 
representation, including complaints from consumers.
IV
    It is further ordered that respondent shall distribute a copy of 
this Order to each of its operating divisions and to each of its 
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.
V
    It is further ordered that respondent shall notify the Commission 
at least thirty (30) days prior to any proposed change in the 
corporation such as a dissolution, assignment, or sale resulting in the 
emergence of a successor corporation, the creation or dissolution of 
subsidiaries, or any other change in the corporation which may affect 
compliance obligations under this Order.
VI
    It is further ordered that respondent shall, within sixty (60) days 
after service of this Order upon it, 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 it has complied 
with this Order.

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 respondent Mattel, 
Inc., a Delaware corporation.
    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 of the respondent's Barbie Bath 
Blast Fashion Foam Soap. The Commission's complaint in this matter 
alleges that Barbie Bath Blast Fashion Foam Soap contains 
hydrochlorofluorocarbons (``HCFCs'')--chlorodifluoroethane (HCFC-142b) 
and chlorodifluoromethane (HCFC-22).
    The Commission's complaint charges that the respondent labeled the 
product, ``Contains no Chlorofluorocarbons (CFC's Non-Irritant--Non-
Toxic.'' The complaint alleges that through this claim, the respondent 
falsely represented that because Barbie Bath Blast Fashion Foam Soap 
contains no chlorofluorocarbons, it will not deplete the earth's ozone 
layer or otherwise harm or damage the atmosphere. In fact, Barbie Bath 
Blast Fashion Foam Soap contains the harmful ozone-depleting 
ingredients chlorodifluoroethane (HCFC-142b) and chlorodifluoromethane 
(HCFC-22), which harm or causes damage to the atmosphere by 
contributing to the depletion of the earth's ozone layer.
    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 defines Class I and Class II ozone-depleting 
substances, [[Page 19070]] incorporating the definitions established in 
the Clean Air Act Amendments of 1990. Class I substances currently 
listed under the Act include CFCs, halons, carbon tetrachloride, 1,1,1-
trichloroethane, methyl bromide, and hydrobromofluorocarbons. Class II 
substances currently consist of HCFCs.
    Part I of the proposed order requires the respondent to cease and 
desist from representing that any product containing any Class I or 
Class II ozone-depleting substance ``contains no chlorofluorocarbons'' 
or ``contains no CFC's'' or representing, in any manner, that any such 
product will not deplete, destroy, or otherwise adversely affect ozone 
in the upper atmosphere or otherwise harm the atmosphere.
    Under the Clean Air Act Amendments, the EPA has authority to add 
new chemicals to the Class I and Class II lists. Thus, the order's 
definitions of Class I and Class II ozone-depleting substances include 
these and any other substances that may be added to the lists. If 
additional substances are added to the Class I or II lists, Part I of 
the order becomes applicable to claims made for products containing 
those substances after the substances are added to the lists.
    Part II of the proposed order provides that if the respondent 
represents in advertising or labeling that any aerosol product offers 
any environmental benefit, it must have a reasonable basis consisting 
of competent and reliable evidence, which when appropriate must be 
competent and reliable scientific evidence, that substantiates the 
claims.
    The proposed order also requires the respondent 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.
Benjamin I. Berman,
Acting Secretary.
[FR Doc. 95-9265 Filed 4-13-95; 8:45 am]
BILLING CODE 6750-01-M