FOR RELEASE: MARCH 30, 1993
INFOMERCIAL MARKETER AGREES TO PAY $275,000
TO SETTLE FTC CHARGES OVER DECEPTIVE ADVERTISING OF
SEVERAL PRODUCTS
National Media Corporation and its wholly-owned subsidiary,
Media Arts International, Ltd., have agreed to settle Federal
Trade Commission allegations that they made false and
unsubstantiated claims in infomercials for several products,
including one purporting to cure breast cancer and another that
supposedly eliminates cellulite. The infomercials also included
deceptive demonstrations and endorsements, the FTC alleged. The
proposed settlement would prohibit the respondents from using
similar deceptive claims or practices in marketing products in
the future. In addition, the respondents have agreed to pay
$275,000 for consumer redress and to disclose in future
infomercials that they are paid advertising.
National Media Corporation and Media Arts currently are
based in Philadelphia, Pennsylvania.
The FTC complaint against the respondents identifies four
products National Media and Media Arts marketed through 30-minute
advertisements, called infomercials, broadcast on television
stations and cable systems nationwide:
- "Cosmetique Francais," promoted for substantially
reducing or eliminating cellulite within 28 days;
- "Crystal Power," crystals that purportedly cure breast
cancer;
- more -
(Media Arts--03/30/93)
- "HP-9000," a household stain remover that was advertised
as being completely safe for use on human skin; and
- "Magic Wand," a hand-held kitchen mixer that purportedly
can, among other things, crush a whole, fresh pineapple to
pulp, "in seconds."
Each of the respondents' four infomercials contained false
and misleading representations, according to the complaint. For
example, through the infomercial for Cosmetique Francais, the
respondents allegedly represented that the product would
substantially reduce or eliminate cellulite within 28 days, is
more effective than diet or exercise, and that continued use of
the product once or twice a week would prevent cellulite's
recurrence. In fact, the FTC said, these representations are not
true and the respondents did not possess adequate evidence to
substantiate them.
Likewise, the "Crystal Power" infomercial contained a
testimonial from a woman saying that use of the crystals caused a
lump in her breast to disappear and that "the crystal saved my
life." The FTC charges that the representations that Crystal
Power crystals eliminate lumps or cure breast cancer are false
and unsubstantiated.
The FTC also charged the respondents with making deceptive
claims regarding product safety in their infomercial "Amazing
Discoveries: HP-9000." The ad states that the product "will not
harm, hurt your skin in any way, shape or form.... Hands stained
with grease, ink and iodine clean up in seconds...and HP-9000 is
completely safe." In fact, the FTC alleged HP-9000 is not
completely safe for human skin, and can harm skin. In addition,
the FTC alleged the respondents had no reasonable basis for these
claims to the contrary.
According to the FTC complaint, the infomercial "Amazing
Discoveries: Magic Wand" contained scenes that, among other
things, appeared to depict the kitchen mixer crushing a whole,
fresh pineapple in seconds and whipping skim milk for use as a
mousse-like dessert or cake frosting. In fact, the FTC alleged,
the product cannot do these things. In addition, according to
the complaint, product substitutions were made to create these
false impressions: instead of a whole pineapple, respondents used
crushed pineapple with a slice of pineapple on top, and instead
of whipped skim milk, they used a commercial dairy topping and a
prepared frosting mix.
Further, the FTC charged, in the infomercial for Cosmetique
Francais, the respondents represented that the consumer
(Media Arts--03/30/93)
endorsements it contained reflected the typical or ordinary
experiences of consumers when, in fact, this is not true. In
addition, the infomercials for Magic Wand and HP-9000 displayed
the purported seal for the "National Association of Advertising
Producers" (NAAP) and the following on-screen statement:
"The following special promotional program has
been approved by the National Association of
Advertising Producers for its integrity and excellence."
The FTC alleged that the respondents thus represented that
the NAAP is an existing independent organization with the
expertise to evaluate commercials for their integrity and
excellence. The FTC charged that no such organization exists
independent of the respondents and that the respondents, in fact,
created and controlled NAAP.
In each of the infomercials, the FTC alleged that the
respondents represented that these commercials were independent
television programs and not paid advertising, when, in fact they
are paid commercials.
The proposed consent agreement to settle these allegations
would prohibit National Media Corporation and Media Arts
International from disseminating the infomercials for Cosmetique
Francais or for Crystal Power in the future. In addition, it
would prohibit them from making the specific false claims alleged
in the complaint for the four products or any substantially
similar products. The settlement also would require the
respondents to have competent evidence to support any claims
about the performance, benefits, safety or efficacy of any
products they sell in the future. Further, the settlement would
prohibit the use of deceptive endorsements and demonstrations.
It also would require the following disclosure to be placed
within the first 30 seconds of any video advertisement that is 15
minutes or longer, and immediately before any ordering
instructions:
THE PROGRAM YOU ARE WATCHING IS A PAID
ADVERTISEMENT FOR [THE PRODUCT OR SERVICE].
Finally, the proposed consent agreement would require the
respondents to pay $275,000 into a fund to be administered by the
FTC. If practical, and at the discretion of the FTC, the funds
will be used to provide redress to purchasers of Cosmetique
Francais, Crystal Power and/or the Magic Wand. In the event that
redress is not feasible, the funds shall be paid to the U.S.
Treasury.
(Media Arts--03/30/93)
The vote of the five-member Commission to issue the
complaint and proposed consent agreement was 4-0. Commissioner
Mary L. Azcuenaga was recused.
The investigation was conducted by the FTC's Seattle
Regional Office.
The proposed consent agreement will be published in the
Federal Register shortly and will be subject to public comment
for 60 days, after which the Commission will decide whether to
make it final. Comments should be addressed to the FTC, Office
of the Secretary, 6th Street and Pennsylvania Avenue, N.W.,
Washington, D.C. 20580.
NOTE: A consent agreement is for settlement purposes only and
does not constitute an admission of a law violation. When the
Commission issues a consent order on a final basis, it carries
the force of law with respect to future actions. Each violation
of such an order may result in a civil penalty of $10,000.
Copies of the complaint, proposed consent agreement, and an
analysis of the consent to aid the public in commenting are
available from the FTC's Public Reference Branch, Room 130, 6th
Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580;
202-326-2222; TTY for the hearing impaired 1-866-653-4261.
# # #
MEDIA CONTACT: Don Elder, Office of Public Affairs
202-326-2161
STAFF CONTACT: Patricia A. Hensley, Seattle Regional Office
2806 Federal Building, 915 Second Avenue
Seattle, Washington 98174
206-220-6350
(FTC File No. 902 3177)
(MEDIARTS)