FTC alleged in this particular case that the defendants made false and misleading earnings claims in connection with their pyramid scheme that nominally involved the sponsorship of needy children in foreign countries. Upon filing charges in federal district court in November 1996, FTC obtained a temporary restraining order barring defendants from making misrepresentations as to profits or earnings in an investment program, freezing their assets, and appointing a receiver over the defendants' business. These provisions were continued in a preliminary injunction to which the defendants agreed in December. This consent judgment is for settlement purposes only and does not constitute an admission by the defendant of a law violation.
Consent judgments have the force of law when signed by the judge.
FTC File No. The settlement would bar the company from representing the extent to which doctors or other health professionals recommend baby and toddler foods or representing any recommendation or endorsement of these products unless it has competent and reliable evidence that substantiates the claim. Gerber also would be prohibited from misrepresenting any survey or research. The complaint alleges that this claim is false, explaining that Gerber relied upon a specific survey in which 562 doctors responded to questions concerning baby food. Of the 408 pediatricians who recommend baby food, only 76 recommend specific brands, and 67 of those recommend Gerber.