UNITED STATES OF AMERICA In the Matter of HONEYWELL INC., a corporation. FILE NO. 962-3154 AGREEMENT CONTAINING CONSENT ORDER The Federal Trade Commission has conducted an investigation of certain acts and practices of Honeywell Inc., a corporation ("proposed respondent"). Proposed respondent, having been represented by counsel, is willing to enter into an agreement containing a consent order resolving the allegations contained in the attached draft complaint. Therefore, IT IS HEREBY AGREED by and between Honeywell Inc., by its duly authorized officers, and counsel for the Federal Trade Commission that:
ORDER DEFINITIONS For purposes of this order, the following definitions shall apply:
I. IT IS ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of Honeywell Air Purifiers, enviracaire® True HEPA filters, or any other air cleaning product which is normally used for personal, family, or household purposes in or affecting commerce, shall not make any representation, in any manner, expressly or by implication: A. about such product's ability to eliminate, remove, clear, or clean any quantity of indoor air contaminants under household living conditions, B. that such product will perform under any set of conditions, including household living conditions, unless at the time of making the representation(s) respondent possesses and relies upon competent and reliable scientific evidence that substantiates such representation(s) either by being related to those conditions or by having been extrapolated to those conditions by generally accepted procedures. II. IT IS FURTHER ORDERED that respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any air cleaning product which is normally used for personal, family, or household purposes in or affecting commerce, shall not make any representation, in any manner, expressly or by implication, about the performance, health or other benefits, or efficacy of such product, unless, at the time the representation is made, respondent possesses and relies upon competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, that substantiates the representation. III. IT IS FURTHER ORDERED that respondent Honeywell Inc. and its successors and assigns shall, for five (5) years after the last date of dissemination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commission for inspection and copying: A. All advertisements and promotional materials containing the representation; B. All materials that were relied upon in disseminating the representation; and C. All tests, reports, studies, surveys, demonstrations, or other evidence in its possession or control that contradict, qualify, or call into question the representation, or the basis relied upon for the representation, including complaints and other communications with consumers or with governmental or consumer protection organizations. IV. IT IS FURTHER ORDERED that respondent Honeywell Inc. and its successors and assigns shall deliver a copy of this order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt of the order. Respondent shall deliver this order to current personnel within forty-five (45) days after the date of service of this order, and to future personnel within forty-five (45) days after the person assumes such position or responsibilities. V. IT IS FURTHER ORDERED that respondent Honeywell Inc. and its successors and assigns shall notify the Commission at least thirty (30) days prior to any change in the corporation(s) that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. 20580. VI. IT IS FURTHER ORDERED that respondent Honeywell Inc. and its successors and assigns shall, within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade 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. VII. This order will terminate twenty (20) years from the date of its issuance, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any Part in this order that terminates in less than twenty (20) years; B. This order's application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has terminated pursuant to this Part. Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal. Signed this _________ day of , 19 HONEYWELL INC. By: EDWARD D. GRAYSON PAMELA M. DEESE LINDA K. BADGER APPROVED: JEFFREY KLURFELD UNITED STATES OF AMERICA In the Matter of HONEYWELL INC., a corporation. DOCKET NO. COMPLAINT The Federal Trade Commission, having reason to believe that Honeywell Inc., a corporation ("respondent"), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges:
A. "There are some places a wash cloth just can't clean.
B. "Don't your children's lungs deserve as much care?
C. "There are some places a washcloth just can't reach. Like her lungs. The filter in a Honeywell Air Purifier removes nearly all impurities from the air."
D. "While you're busy cleaning everything in sight, we could be taking care of what you can't see. The filter in a Honeywell Air Purifier removes nearly all impurities from the air."
E. "You do the laundry, we'll clean the really tough spot. The filter in a Honeywell Air Purifier removes nearly all impurities from the air."
F. "Hard as you try, there's some dirt you just can't shake. To remove nearly all impurities from the air,
G. "Ideal for allergy and asthma sufferers. Exclusive Patented 360 degree Airflow. Efficiently scrubs the room free of air pollutants."
H. “How to Select the Right Size enviracaire® Portable Air Cleaner ....
I. "Honeywell air cleaners provide proven relief of allergy symptoms."
6. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that it possessed and relied upon a reasonable basis that substantiated the representations set forth in Paragraph 5, at the time the representations were made. 7. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representations set forth in Paragraph 5, at the time the representations were made. The 99.97% figure refers to the filter’s expected efficiency in removing particles that actually pass through the filter. While the filter’s efficiency is a factor in assessing the effectiveness of an air purifier in particulate removal, this figure overstates the actual effectiveness of the air purifier in removing pollutants from the air in a user’s environment. The actual effectiveness of an air purifier depends on a variety of factors including, the amount of air that the air purifier processes, the nature of the pollutant, and the rate at which the pollutant is being introduced into the environment. Additionally, there is no guarantee that an individual who suffers from allergies or other respiratory problems will derive a discernable reduction in symptoms through the use of these or other air purifiers. Whether individuals will derive such relief depends on many variables including, the source and severity of their allergies, whether the allergens at issue tend to remain airborne, the rate at which the allergens are emitted into their homes or offices, and other environmental factors. Therefore, the representation set forth in Paragraph 6 was, and is, false or misleading. 8. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices, and the making of false advertisements, in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act. THEREFORE, the Federal Trade Commission this day of , , has issued this complaint against respondent. By the Commission. Donald S. Clark SEAL: [Exhibits A-I attached to paper copies of complaint, but not available in electronic form.] Analysis of Proposed Consent Order The Federal Trade Commission has accepted an agreement, subject to final approval, to a proposed consent order from respondent Honeywell Inc.("Honeywell") a Delaware corporation. 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 and take other appropriate action or make final the agreement's proposed order. Honeywell manufactures and markets various types of air cleaning products, including a line of portable, room air cleaners. These “Honeywell Air Purifiers” include an “enviracaire® True HEPA filter.” The Commission's complaint charges that respondent's advertising for the Honeywell Air Purifier included unsubstantiated claims of efficacy and allergy relief. Specifically, the complaint alleges that the respondent did not possess adequate substantiation for claims that: (1) The filter in a Honeywell Air Purifier removes 99.97% of mold spores, dust mite allergens, bacteria and viruses from the air that people breathe under household living conditions; (2) The filter in a Honeywell Air Purifier removes nearly all or 99.97% of impurities from the air that people breathe under household living conditions; (3) Consumers who use a Honeywell Air Purifier that changes the air in a room six or more times per hour will experience noticeable symptom relief from allergies and other respiratory problems; and (4) Honeywell Air Purifiers provide proven relief from allergy symptoms. According to the proposed complaint, the 99.97% figure used in Honeywell’s advertisements refers to the filter’s expected efficiency in removing particles that actually pass through the filter. While the filter’s efficiency is a factor in assessing the effectiveness of an air purifier in particulate removal, this figure overstates the actual effectiveness of the air purifier in removing pollutants from the air in a user’s environment. The actual effectiveness of an air purifier, according to the proposed complaint, depends on a variety of factors including, the amount of air that the air purifier processes, the nature of the pollutant, and the rate at which the pollutant is being introduced into the environment. Additionally, with respect to the allergy relief claims made by Honeywell, the proposed complaint states that there is no guarantee that an individual who suffers from allergies or other respiratory problems will derive a discernable reduction in symptoms through the use of these or other air purifiers. Whether individuals will derive such relief depends on many variables including, the source and severity of their allergies, whether the allergens at issue tend to remain airborne, the rate at which the allergens are emitted into their homes or offices, and other environmental factors. The proposed consent order contains provisions designed to remedy the violations charged and to prevent the respondent from engaging in similar acts and practices in the future.Part I of the proposed order would prohibit Honeywell from making certain efficacy claims about Honeywell Air Purifiers, enviracaire® True HEPA filters, or any other air cleaning product which is normally used for personal, family, or household purposes, unless at the time of making the claims it possesses and relies upon competent and reliable scientific evidence. Furthermore, claims that state or imply a level of performance under any set of conditions, such as household living conditions, must be substantiated by evidence that either relates to such conditions or that was extrapolated to such conditions by generally accepted procedures. The specific claims covered by Part I include any representation: (1) about such product's ability to eliminate, remove, clear, or clean any quantity of indoor air contaminants under household living conditions; and (2) that such product will perform under any set of conditions, including household living conditions. Part II of the proposed consent order includes fencing-in relief, requiring that Honeywell possess competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, for any claim about the performance, health or other benefits, or efficacy of any air cleaning product which is normally used for personal, family, or household purposes. The proposed order also requires the respondent to maintain materials relied upon to substantiate claims covered by the order; to provide a copy of the consent agreement to all employees or representatives involved in the preparation and placement of the company's advertisements, as well as to all company executives and marketing and sales managers; to notify the Commission of any changes in corporate structure that might affect compliance with the order; and to file one or more reports detailing compliance with the order. The purpose of this analysis is to facilitate public comment on the proposed order. It is not intended to constitute an official interpretation of the agreement and proposed order or to modify in any way their terms. |