[Federal Register Volume 59, Number 236 (Friday, December 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-30319]


[[Page Unknown]]

[Federal Register: December 9, 1994]


-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION
[File No. 942 3028]

 

Haagen-Dazs Company, Inc.; Proposed Consent Agreement With 
Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed 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, among other things, a New Jersey-based ice cream and frozen 
yogurt corporation from misrepresenting the existence or amount of fat, 
saturated fat, cholesterol, or calorie content of any of its frozen 
food products in the future.

DATES: Comments must be received on or before February 10, 1995.

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:
Anne Maher or Michelle Rusk, FTC/S-4002, Washington, DC 20580. (202) 
326-2987 or 326-3148.

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)).

Agreement Containing Consent Order To Cease and Desist

    The Federal Trade Commission having initiated an investigation of 
certain acts and practices of Haagen-Dazs Company, Inc., a corporation, 
hereinafter sometimes referred to as 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 use of the 
acts and practices being investigated,
    It Is Hereby Agreed by and between Haagen-Dazs Company, Inc., by 
its duly authorized officer and attorney, and counsel for the Federal 
Trade Commission that:
    1. Proposed respondent Haagen-Dazs Company, Inc. is a corporation 
organized, existing and doing business under and by virtue of the laws 
of the State of New Jersey with its principal office and place of 
business located at Glenpointe Centre East, Teaneck, NJ 07666-6782.
    2. Proposed respondent admits all the jurisdictional facts set 
forth in the draft complaint.
    3. Proposed respondent waives:
    (a) Any 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 complaint contemplated thereby, 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 the 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 of complaint or that the facts as 
alleged in the draft complaint, other than jurisdictional facts, are 
true.
    6. The 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 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 complaint and 
decision containing the agreed-to order to proposed respondent's 
address as stated in this agreement shall constitute service. Proposed 
respondent waives any rights it may 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 the agreement may be used 
to vary or contradict the terms of the order.
    7. Proposed respondent has read the proposed complaint and order 
contemplated hereby. Proposed respondent understands that once the 
order has been issued, it will be required to file one or more 
compliance reports showing that 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.

Order

I

    It is ordered that respondent Haagen-Dazs Company, 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 
manufacturing, labeling, advertising, promotion, offering for sale, or 
distribution of any frozen food 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, through numerical or descriptive terms or 
any other means, the existence or amount of fat, saturated fat, 
cholesterol or calories in any such product. If any representation 
covered by this Part either directly or by implication conveys any 
nutrient content defined (for purpose 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.

II

    Nothing in this Order shall prohibit respondent from making any 
representation that is specifically permitted in labeling for any 
frozen food product by regulations promulgated by the Food and Drug 
Administration pursuant to the Nutrition Labeling and Education Act of 
1960.

III

    It is further ordered that for three (3) 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 copies of:
    1. All materials that were relied upon in disseminating such 
representation; and
    2. All tests, reports, studies, surveys, demonstrations, or other 
evidence in its possession of control that contradict, qualify, or call 
into question such representation, including complaints from consumers.

IV

    It is further ordered that respondent shall notify the Commission 
at least thirty (30) days prior to any proposed change in the 
respondent such as dissolution, assignment or sale resulting in the 
emergence of a successor corporation, the creation or dissolution of 
subsidiaries, or any other change in the respondent which may affect 
compliance obligations arising out of this Order.

V

    It is further ordered that respondent shall, within thirty (30) 
days after service of this Order, 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 or placement 
of advertisements or other materials covered by this Order.

VI

    It is further ordered that respondent shall, within sixty (60) days 
after service of this Order, 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 Proposed Consent Order To Aid Public Comment

    The Federal Trade Commission has accepted an agreement to a 
proposed consent order from Haagen-Dazs Company, Inc. (``Haagen-
Dazs'').
    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 or make final the agreement's proposed 
order.
    This matter concerns claims made by Haagen-Dazs in its advertising 
for frozen yogurt products.
    The Commission's complaint in this matter charges Haagen-Dazs with 
engaging in unfair or deceptive practices in connection with its 
advertising of frozen yogurt products. According to the complaint 
Haagen-Dazs falsely represented that its frozen yogurt is 98 percent 
fat free and low fat.
    The complaint also alleges that Haagen-Dazs falsely represented 
that its frozen yogurt bars contain one gram of fat per serving and are 
low fat.
    Finally, the complaint alleges that Haagen-Dazs falsely represented 
that its frozen yogurt bars contain 100 calories per serving.
    The consent order contains provisions designed to remedy the 
violations charged and to prevent Haagen-Dazs from engaging in similar 
deceptive and unfair acts and practices in the future.
    Part I of the order prohibits Haagen-Dazs from misrepresenting the 
existence or amount of fat, saturated fat, cholesterol or calories in 
any frozen food product. Part I also requires that any representation 
covered by this part that conveys a nutrient content claim defined for 
labeling by any regulation of the Food and Drug Administration 
(``FDA''), must comply with the qualifying amount set forth in that 
regulation.
    Part II of the order provides that representations that would be 
specifically permitted in food labeling, under regulations issued by 
FDA pursuant to the Nutrition Labeling and Education Act of 1990, are 
not prohibited by the order.
    Part III of the order requires Haagen-Dazs to maintain copies of 
all materials relied upon in making any representation covered by the 
order.
    Part IV of the order requires Haagen-Dazs to notify the Commission 
of any changes in corporate structure that might affect compliance with 
the order.
    Part V of the order requires Haagen-Dazs to distribute copies of 
the order to its operating divisions and to various officers, agents 
and representatives of Haagen-Dazs.
    Part VI of the order requires Haagen-Dazs to file with the 
Commission one or more reports detailing compliance with the order.
    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.
Donald S. Clark,
Secretary.
[FR Doc. 94-30319 Filed 12-8-94; 8:45 am]
BILLING CODE 6750-01-M