[Federal Register Volume 63, Number 129 (Tuesday, July 7, 1998)]
[Notices]
[Pages 36695-36696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-17935]
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FEDERAL TRADE COMMISSION
[File No. 972-3071]
Nutrivida, Inc., et al.; Analysis To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
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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 draft
complaint that accompanies the consent agreement and the terms of the
consent order--emobodied in the consent agreement--that would settle
these allegations.
DATES: Comments must be received on or before September 8, 1998.
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:
Jeffrey Klurfeld or Erika Wodinsky, San Francisco Regional Office,
Federal Trade Commission, 901 Market Street, Suite 570, San Francisco,
CA. 94103. (415) 356-5270.
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, subject
to final approval, by the Commission, has been placed on the public
record for a period of sixty (60) 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 26, 1998), on the World Wide Web, at ``http://www.ftc.gov/os/
actions97.htm.'' A paper copy can be obtained from the FTC Public
Reference Room, Room H-130, Sixth Street and Pennsylvania Avenue, NW,
Washington, DC 20580, either in person or by calling (202) 326-3627.
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)).
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission has accepted, subject to final
approval, an agreement to a proposed consent order from Nutrivida Inc.
(``Nutrivida'') and Frank Huerta, an officer and director of the
company.
The proposed consent order has been placed on the public record for
sixty (60) days for the receipt 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 comments received and will decide whether it should
withdraw from the agreement and take appropriate action or make final
the agreement's proposed order.
This matter concerns Spanish language television advertisements,
including program length ``infomercials,'' for the proposed
respondents' Cartilet shark cartilage capsules. The Commission's
complaint alleges that the proposed respondents made unsubstantiated
representations that: (1) Cartilet shark cartilage capsules are
effective in the symptomatic relief, treatment, or cure of cancer; (2)
Cartilet shark cartilage capsules are effective in the symptomatic
relief or treatment of rheumatism, arthritis, diabetes, fibroids,
bursitis, circulatory problems, and cysts; and (3) testimonial from a
consumer who appears in the advertisements for Cartilet shark cartilage
capsules reflects the typical or ordinary experience of members of the
public who use the product. The Commission's complaint also alleges
that the proposed respondents falsely represented that studies prove
that Cartilet shark cartilage capsules are effective in the symptomatic
relief or treatment of cancer, arthritis, and diabetes and that the
proposed respondents misrepresented that their infomercial for the
Cartilet shark cartilage capsules was an independent television program
and not paid advertising.
Paragraph I of the proposed order prohibits proposed respondents
from representing that Nutrivida's Cartilet shark cartilage capsules or
any other product are effective in the symptomatic relief, treatment,
or cure of cancer or that Nutrivida's Cartilet shark cartilage capsules
are effective in the symptomatic relief or treatment of rheumatism,
arthritis, diabetes, fibroids, bursitis, circulatory problems, and
cysts; unless, at the time the representation is made, respondents
possess and rely upon competent and reliable scientific evidence that
substantiates the representation.
Paragraph II of the proposed order would prohibit for Cartilet
shark cartilage capsules or any food, dietary supplement, or drug,
representations about the health benefits, performance, or efficacy of
such product unless, at the time the representation is made,
respondents possess and rely upon competent and reliable scientific
evidence that substantiates the representation.
Paragraph III of the proposed order would prohibit for Cartilet
shark cartilage capsules or any food, dietary supplement or drug,
misrepresentations about the existence, contents, validity,
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results, conclusions, or interpretations of any test, study, or
research.
Paragraph IV of the proposed order would prohibit for any food,
dietary supplement or drug the representation that the experience
represented by any user testimonial or endorsement of the product
represents the typical or ordinary experience of members of the public
who use the food, dietary supplement or drug, unless: at the time it is
made, respondents possess and rely upon competent and reliable
scientific evidence that substantiates the representation; or
respondents disclose in the same language as the predominant language
that is used in the advertisement, clearly and prominently, and in
close proximity to the endorsement or testimonial, either (1) what the
generally expected results would be for users of the food, dietary
supplement or drug, or (2) the limited applicability of the endorser's
experience to what consumers may generally expect to achieve, that is,
the consumers should not expect to experience similar results.
Part V and VI of the proposed order contain provisions permitting
certain claims that are approved for labeling by the FDA, either under
the Nutrition Labeling and Education Act, a tentative or final standard
or under any new drug application approved by the FDA.
Part VII of the proposed order would require proposed respondents
to disclose ``THE PROGRAM YOU ARE WATCHING IS A PAID ADVERTISEMENT FOR
[THE PRODUCT OR SERVICE]'' in television advertisements fifteen (15)
minutes in length or longer, and to disclose a similar audio message in
radio advertisements of fifteen (15) minutes in length or longer.
Part VIII of the proposed order contains record keeping
requirements for materials that substantiate, qualify, or contradict
claims covered by the proposed order. Part IX of the proposed order
requires distribution of a copy of the order to current and future
officers and agents. Part X provides for Commission notification upon a
change in the corporate respondent and Part XI requires Commission
notification when the individual respondent changes his business or
employment. Part XII requires the proposed respondents to keep and
maintain all records demonstrating compliance with the terms and
provisions of the order. Part XIII provides for the termination of the
order after twenty 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 proposed order or to modify in any
way their terms.
By direction of the Commission.
Benjamin I. Berman,
Acting Secretary.
[FR Doc. 98-17935 Filed 7-6-98; 8:45 am]
BILLING CODE 6750-01-M