Consumer Protection Mission (Detail)
Amoco Oil Company
Amoco Oil settled allegations that its advertising campaign for "crystal clear" Amoco Ultimate gasoline included unsubstantiated claims. The Commission alleged that the company failed to have adequate substantiation for its claims that Amoco Ultimate gasoline delivers superior engine performance and environmental benefits because it is refined more than competitors' brands and that the gasoline's clear color demonstrates its superiority. Under the terms of the consent order, Amoco Oil will not make any claim about performance or environmental benefits for any of its gasolines without first having scientific evidence to back the claim up.
Azrak-Hamway International, Inc.; Starwood Advertising, Inc.;
Marvin Azrak; Ezra Hamway; Les Towne
Two separate consent orders settled allegations that Azrak-Hamway, a toy manufacturer, Starwood Advertising, Inc., its advertising agency, and their principals engaged in deceptive advertising of a line of toy vehicles marketed by Azrak-Hamway's Remco Toys Division. The Commission alleged that television advertising for the toys showed performance capabilities that the toys do not actually have and that the packaging was also deceptive. Both orders prohibit the use of deceptive demonstrations and other misrepresentations. In addition, the Azrak-Hamway order requires the company to offer full refunds to consumers who bought the toy vehicles and to notify television stations that ran the ads, advising them of the Commission's action and of the availability of guidelines used by many industry members to screen children's advertising.
BBDO Worldwide, Inc.
BBDO Worldwide advertising agency agreed to settle Commission allegations of engaging in deceptive practices in connection with its role in developing certain advertisements for Häagen-Dazs frozen yogurt products. The advertisements claimed that all Häagen-Dazs frozen yogurt and frozen yogurt bars are low in fat; however, the Commission alleged that those claims are false for many items in each product line. The consent order prohibits BBDO Worldwide from misrepresenting the amount of fat, saturated fat, cholesterol, or calories in frozen yogurt, frozen sorbet, and ice cream products.
Benckiser Consumer Products, Inc.
Benckiser agreed to settle allegations that it made false and misleading claims about the donation of proceeds from the sale of its EarthRite line of household cleaning products. Benckiser claimed that a portion of its proceeds would be donated to nonprofit environmental groups, but, according to the Commission's complaint, the company has not donated any money to such groups since it began selling the products in 1992. The consent order prohibits the company from making similar misleading claims for any of its cleaning products. The order also requires Benckiser, if it says it donates some portion of its revenue to an organization, to clearly and prominently disclose the method of determining the amount of the donation.
Blenheim Expositions, Inc.
Blenheim Expositions, a company that produces franchise trade shows and expositions, agreed to settle Commission allegations that it misrepresented the results of a Gallup Poll featuring franchise success and earning rates, in advertisements promoting the International Franchise Association Expo. The consent order prohibits Blenheim from misrepresenting survey results or making unsubstantiated earnings and success rate claims in promoting franchise shows. It also requires Blenheim to distribute consumer education information about purchasing a franchise at the shows it promotes for the next five years.
Budget Rent A Car Systems, Inc.
Budget agreed to settle allegations that it engaged in deceptive practices when it failed to disclose potential charges to its rental car customers. Customers who returned their rental cars with significant damage and who had not purchased a "loss damage waiver" were charged several thousand dollars more than the cost of repairs. The Commission alleged that Budget sought to collect "loss of turnback" fees, the amount of money Budget lost because it could not sell the damaged vehicles back to the manufacturer at a price higher than retail. The consent order requires Budget to pay $75,000 in consumer redress. In addition, if Budget intends to charge customers for these fees in the future, it must clearly disclose in rental contracts and reservation systems that consumers are liable for costs in excess of the actual cost of repairs to damaged vehicles.
Cancer Treatment Centers of America, Inc.; Memorial Medical Center
and Cancer Institute, Inc.; Midwestern Regional Medical Center, Inc.
Cancer Treatment Centers and two affiliated hospitals agreed to settle Commission allegations that they made false and unsubstantiated claims in advertising and promoting their cancer treatments. The respondents also allegedly failed to substantiate a claim that their five-year survivorship rate ranked among the highest recorded for cancer patients. The consent order requires the respondents to have competent and reliable evidence to substantiate future claims regarding the success or efficacy of their cancer treatments and to ensure that testimonials they use do not misrepresent the typical experience of their patients.
Dannon Company, Inc., The
Dannon agreed to settle allegations that it made false or misleading nutritional claims for its Pure Indulgence line of frozen yogurt, by representing that some flavors of the yogurt were low in fat and calories when they were not. The consent order prohibits Dannon from misrepresenting the existence or amount of fat, saturated fat, cholesterol, or calories in any frozen food product in the future. In addition, the company is required to pay $150,000 in disgorgement to the U.S. Treasury.
Diet Workshop, Inc., The; Diet Workshop of Boston, Inc., The
The Diet Workshop, a franchisor of weight-loss plans and products, and the Diet Workshop of Boston, the owner of its company-operated territories, settled allegations that they made unsubstantiated weight-loss and weight-maintenance claims and used consumer testimonials deceptively. The consent order prohibits the respondents from misrepresenting the performance of any weight-loss program and requires them to have reliable scientific evidence to substantiate claims about achieving or maintaining weight loss, or the rate at which the loss can be expected to occur. The order also requires disclosure statements in certain advertising and bars the misleading use of testimonials.
DMC Publishing Group (Timothy R. Bean, d/b/a)
Timothy Bean, doing business as DMC Publishing Group, settled allegations of deceptive marketing on the Internet. The Commission alleged that Bean made false earnings claims in advertising for his program to operate a home-based publishing and printing business. The consent order requires him to have evidence to back up earnings and sales claims for any business opportunity he markets.
Duram Rubber Products; Frank A. Latronica, Jr (d/b/a Life Safety Products)
Duram Rubber Products and Frank Latronica settled allegations that they falsely represented that the Duram Emergency Escape Mask would protect wearers from lethal gases associated with fires for up to 20 minutes. The consent order requires the respondents to notify prior purchasers that the mask does not filter out carbon monoxide and to disclose that fact on package labels and in certain advertisements.
Enterprising Solutions (Brian Coryat, d/b/a)
Brian Coryat, doing business as Enterprising Solutions, settled allegations that he made unsubstantiated advertising claims on the Internet regarding his credit repair program. The Commission charged that Coryat falsely advertised that consumers could use his credit repair kit to remove negative but accurate and up-to-date information from their credit reports and that he made false and unsubstantiated claims about the earnings potential of those who purchased his Credit Repair Agency business. The consent order prohibits Coryat from misrepresenting any right or remedy consumers have under the Fair Credit Reporting Act and requires him to have evidence to back up earnings or sales claims for any business opportunity he markets.
Excel Communications (Robert Serviss, d/b/a)
Robert Serviss, doing business as Excel Communications, settled allegations that he promoted a work-at-home opportunity on the Internet using false and unsubstantiated earnings claims. The consent order prohibits Serviss from misrepresenting the income, earnings, or sales from any business opportunity and prohibits any claims about past, present, or future earnings or income unless there is reliable evidence to substantiate such claims.
Ford Motor Company; Young & Rubicam, Inc.
Two separate consent orders settled allegations that Ford and its advertising agency made false claims about the extent to which Ford's MicronAir Filtration System can remove air pollutants from its automobile passenger cabins. The Commission alleged that, although the system filters out particles above a certain size, it has no effect on very fine particles or gaseous pollutants such as hydrocarbons, carbon monoxide, and nitrogen oxides. The orders prohibit the respondents from making broad claims of pollution removal for this or any similar system and require them to have substantiation for other claims about air filter efficacy.
Genetus Alexandria, Inc.; Galen Medical Centers, Ltd. (successor to Genetus);
George Oprean; Linda Huffman Oprean
A clinic and its operators agreed to settle allegations that they made misleading claims in connection with their impotence treatment. The Commission alleged that Genetus falsely represented that a physician would examine, diagnose, and treat every patient, that the treatment was unqualifiedly safe, and that the treatment would arrest each patient's impotence. The respondents also allegedly billed insurance companies for medical tests that were not performed. The consent order prohibits the respondents from misrepresenting the nature or extent of a physician's participation in any treatment, the safety or efficacy of any procedure, and the extent to which a treatment is covered by a patient's medical insurance.
Good News Products, Inc.
The Commission gave final approval to a consent order with Good News Products regarding allegedly false representations that its eggs were significantly lower in fat than ordinary eggs, that they would increase blood cholesterol levels less than ordinary eggs, and that they would have a positive effect on risk factors for heart disease. The order prohibits misrepresentations regarding the nutrient content of eggs or products containing egg yolks and requires scientific substantiation for health claims about such products.
J. Walter Thompson USA, Inc.
The Commission approved a consent order with J. Walter Thompson, settling allegations that the company engaged in deceptive practices in connection with advertising it created for the Jenny Craig Weight Loss Program. The Commission alleged that the company lacked substantiation for advertising claims that nine out of ten Jenny Craig clients would recommend the program to a friend. Under the order, J. Walter Thompson must have evidence to substantiate claims that any weight-loss program is endorsed by any person, group, or other entity, and the company is prohibited from misrepresenting the existence or results of any study or survey in connection with any diet-related food, weight-loss or fitness programs or equipment.
Johnson & Collins Research, Inc.; Gregor A. von Ehrenfels
The Commission gave final approval to a consent order settling allegations that Johnson & Collins Research and its owner used deceptive advertising of purported weight-loss and body-shaping products in magazines directed toward teenage girls. The products consisted primarily of booklets containing advice on dieting and exercise. The order requires the respondents to clearly disclose that what they are selling are booklets or pamphlets, prohibits them from making unsubstantiated representations regarding the effects of any weight-loss program, and requires them to disclose that weight loss requires dieting, increased exercise, or both.
Johnson & Johnson Consumer Products, Inc.
The Commission approved a consent order with Johnson & Johnson Consumer Products settling allegations that its advertising campaign for a spermicidal lubricant contained misleading and unsubstantiated claims about condom failure, touting the lubricant as "condom insurance" to protect against unwanted pregnancy and sexually transmitted diseases. Under the order, Johnson & Johnson Consumer Products, its parent corporation, and all other Johnson & Johnson subsidiaries are prohibited from misrepresenting the results of any study concerning over-the-counter products relating to human reproduction, contraception, or sexually transmitted diseases. In addition, they are required to have competent and reliable scientific evidence for claims about the efficacy and health-related benefits of any personal lubricant or spermicide they advertise.
Jordan, McGrath, Case & Taylor, Inc.
Jordan, McGrath, Case & Taylor, an advertising firm, settled allegations in connection with its role in advertising for Doan's Pills. According to the Commission, the advertisements made unsubstantiated claims that Doan's Pills are better than competing over-the-counter analgesics in relieving back pain. The consent order requires the company to have competent and reliable scientific evidence to support any claims regarding the efficacy, safety, benefits, or performance of any over-the-counter internal analgesic. The Commission also issued an administrative complaint against the marketers of Doan's Pills (see - Ciba-Geigy Corporation).
Live-Lee Productions, Inc.; Ruta Lee
The Commission gave final approval to a consent order with Ruta Lee and her production company, Live-Lee Productions, settling allegations that advertising claims she made for three vitamin sprays and a stop-smoking spray were unsubstantiated. Lee made the claims on television's Home Shopping Club, commercial programming carried on the Home Shopping Network. Under the order, Lee and Live-Lee Productions are required to have competent and reliable scientific evidence for claims about a food or drug's effect on the user's health or about the performance of smoking-cessation products or programs. A separate order was approved for the Home Shopping Network.
Mama Tish's Italian Specialities, Inc.
The Commission approved a consent order with Mama Tish's settling allegations that the company misrepresented the calorie content of its flavored ice cup desserts. The consent order prohibits Mama Tish's from misrepresenting the existence or amount of calories or any other nutrient or ingredient in any frozen dessert product.
May Department Stores Company, The
The May Department Stores Company (May Company) agreed to settle allegations that, in converting its Thalhimer's customers' charge accounts to Hecht's accounts, it transferred obsolete derogatory information to the new accounts. The Commission also alleged that the conversion process led to inaccurate reporting of payments, resulting in some cases of unwarranted collection efforts, and that May Company issued unsolicited credit cards. The consent order requires May Company to follow reasonable procedures to ensure the accuracy of information it provides to credit bureaus, to remove incorrectly reported information, and to cease collection activity of disputed charges. In addition, the order prohibits May Company from issuing unrequested credit cards.
Momentum (Lyle R. Larson, d/b/a)
Lyle Larson, doing business as Momentum, agreed to settle allegations that he falsely advertised on the Internet that consumers could use his "legal" program to remove negative but accurate and up-to-date information from their credit reports. The consent order prohibits Larson from misrepresenting any right or remedy consumers have under the Fair Credit Reporting Act and requires him to disclose in advertising for credit repair products that misrepresenting one's Social Security number or certain other information may be a federal crime.
Mrs. Fields Cookies, Inc.
The Commission approved a consent order with Mrs. Fields, settling allegations that advertising and promotional materials touting a cookie line as "low fat" were false and misleading for two cookies in the line. Under the order, Mrs. Fields agreed not to misrepresent the amount of fat, saturated fat, cholesterol, or calories in any bakery food products.
N.W. Ayer & Son, Inc. (d/b/a NW Ayer, Inc.)
N.W. Ayer & Son, doing business as NW Ayer, agreed to settle allegations concerning its role in creating advertising for Eggland's Best eggs that allegedly conveyed deceptive claims regarding the effect of the eggs on blood cholesterol. The consent order prohibits the company from misrepresenting the amount of cholesterol, fat, saturated fat, or any other fatty acid with regard to eggs and dairy, meat, or poultry products. It also requires NW Ayer to have competent and reliable scientific evidence to back up any claims that such products have any health benefit.
NBDC Credit Resource Publishing (Rick A. Rahim, d/b/a)
Rick Rahim, doing business as NBDC Credit Resource Publishing, settled allegations that he falsely advertised on the Internet that his credit repair program is legal, although it advises consumers to misrepresent their Social Security numbers in order to obtain a new credit identity. The consent order prohibits Rahim from misrepresenting the legality of any credit repair product he advertises and requires him to disclose in advertisements for these products that misrepresenting one's Social Security number or certain other information may be a federal crime.
NordicTrack, Inc.
NordicTrack agreed to settle allegations that it made false and unsubstantiated claims for weight loss and weight maintenance in advertising its cross-country ski exercise machine. The Commission alleged that NordicTrack overstated success rates, based on studies that excluded all but a highly selected group of purchasers. The consent order requires NordicTrack to have competent and reliable evidence to support weight-loss, weight-maintenance, and related claims for any exercise equipment it sells.
Safe Brands Corporation; ARCO Chemical Company; Warren Distribution, Inc.
The Commission approved a consent order with Safe Brands, its parent company, Warren Distribution, and ARCO, settling allegations that they made unsubstantiated advertising claims about the safety of Sierra antifreeze, its environmental benefits, and its ability to protect vehicle engines. Safe Brands is the manufacturer of Sierra antifreeze, and ARCO supplies the principal ingredient, propylene glycol. Under the order, the companies are prohibited from making unsubstantiated claims and are required to put a statement on Sierra antifreeze containers cautioning consumers that it may be harmful if swallowed.
Simplex Services (Martha Clark, d/b/a)
Martha Clark, doing business as Simplex Services, settled allegations that she used deceptive advertising on the Internet in connection with her credit repair program. The Commission alleged that Clark made false claims in advertising the Guaranteed Credit Doctor program by stating that consumers could remove negative items from their credit reports, even if the information was accurate and up-to-date. The consent order prohibits the respondent from misrepresenting any right or remedy consumers have under the Fair Credit Reporting Act, including their ability to remove adverse information from a credit report.
Starr Communications (Sherman G. Smith, d/b/a)
Sherman Smith, doing business as Starr Communications, agreed to settle allegations that he made false and unsubstantiated earnings claims in his Internet advertising for the "U.S. Government Tracer Business Program," which purportedly would show consumers how to make money tracking down people due refunds after they had paid off their mortgages. The consent order requires Smith to have substantiation for profits, earnings, or sales claims for any business opportunity he markets.
Third Option Laboratories, Inc.; Susan McWilliams Bolton;
Danny Bishop McWilliams; William J. McWilliams
The Commission approved a consent order with Third Option and its principals, marketers of a fruit beverage, "Jogging in a Jug," settling allegations that they made numerous false health claims for the drink. The order prohibits the respondents from making unsubstantiated claims about this beverage or any similar product and requires them to have competent and reliable scientific evidence to support any representation they make about the performance, safety, efficacy, or benefits of any food, dietary supplement, or drug they market in the future. In addition, the respondents are required to notify certain previous purchasers, advising them of the Commission's allegations, and to pay $480,000, which will be used for refunds to consumers or disgorged to the U.S. Treasury.
WLAR Co.; Michael K. Craig
The Commission accepted a final consent order with WLAR Co. and its owner regarding the alleged deceptive advertising of weight-loss and body-shaping booklets in magazine advertising directed at teenage girls. The order prohibits false or unsubstantiated weight-loss-related claims for any weight-loss product and requires the respondents to disclose in future ads that the "product" being advertised consists solely of booklets or pamphlets.
Wolverine Capital (Randolf D. Albertson, d/b/a)
Randolf Albertson, doing business as Wolverine Capital, settled Commission allegations that he made false or unsubstantiated advertising claims on the Internet. Albertson's advertising touted "Free Cash Grants by Mail" and offered, for a fee, to match consumers with private foundations likely to give them money for business, education, and other purposes. The respondent represented that the majority of his clients were approved for cash grants, a claim that the Commission alleged is false and unsubstantiated. The consent order prohibits Albertson from making similar claims and from misrepresenting the services or assistance he provides in obtaining any financial products or services.
Zygon International, Inc.; Dane Spotts
The Commission accepted a final consent order with Zygon, a national mail-order catalog marketer, and its owner, settling allegations that they used deceptive practices in the advertising and sale of several products. The respondents agreed to pay up to $195,000 in refunds under terms of the order, to resolve allegations that the company made a number of unsubstantiated claims and failed to honor its money-back guarantee policy for its products. The order also requires that Zygon and Dane Spotts have competent and reliable substantiation for any claims about the performance, benefits, efficacy, or safety of any product or service they market, and requires them to honor any refund policy they advertise.