UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580
Division of Enforcement
Bureau of Consumer Protection
September 20, 2002
Mr. Stan Goss
For Mor International
P.O. Box 2080
Conway, Arkansas 72033
Re: ForMor, Inc., Docket No. C-4021
Dear Mr. Goss:
The Division of Enforcement staff has reviewed your compliance report, filed October 9, 2001, to show the manner and form of respondents’ compliance with the order referenced above, issued on July 20, 2001. In addition, as required by the order, a list of past purchasers was submitted on August 16, 2001, and an affidavit showing payment of refunds, in a total amount of $104,806.44, was submitted by letter dated January 31, 2002. As you know, staff also conducted an investigation involving the respondents’ possible violations of the order.
The staff determined that Exhibits 1-B (a video tape), 1-C (an audio cassette tape), and 1-E (an audio cassette tape) contain one or more medical benefit claims, for which respondents apparently lacked substantiation, in violation of Parts I, IV, V, VI, and IX of the order. Accordingly, staff rejected those exhibits. Counsel for respondents subsequently advised staff of the following: exhibit 1-B had been revised to delete the problematic claim; Exhibit 1-C had been previously discontinued and was included in the compliance report in error; and Exhibit 1-E had been discontinued and copies destroyed upon review.
The staff has concluded, on the assumption that the information submitted is accurate and complete, that no compliance action is indicated at this time. In addition, we would like to encourage ForMor’s continued monitoring of product representations that may be made by resellers of its products, particularly where such resellers are making use of third party literature or services that have been offered or recommended by ForMor. Distributors of ForMor products should understand that they can be liable, under Section 5 of the FTC Act, 15 U.S.C. § 45(a), for false or unsubstantiated claims about products they are marketing.
The FTC staff will not be precluded from recommending to the Commission an appropriate action if the submitted information is inaccurate or incomplete or if the respondents violate the terms of the order.
The opinions expressed in this letter are those of the staff and not necessarily those of the Commission or of any Commissioner.
Elaine D. Kolish
Associate Director for Enforcement
cc: Dennis M. Gronek
Gronek & Armstrong
233 South Wacker Drive, 98th Floor
Chicago, Illinois 60606