[Federal Register Volume 61, Number 222 (Friday, November 15, 1996)]
[Notices]
[Pages 58563-58564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29267]
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FEDERAL TRADE COMMISSION
[File No. 952-3366]
Universal Merchants, Inc.; Steven Oscherowitz; Analysis To Aid
Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
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SUMMARY: In settlement of alleged violations of federal law prohibiting
unfair or deceptive acts or practices and unfair methods of
competition, this consent agreement, accepted subject to final
Commission approval, would prohibit, among other things, the Los
Angeles, California-based dietary supplement manufacturer and its
president from making certain challenged claims for chromium picolinate
dietary supplements, without competent and reliable scientific evidence
to support them; from misrepresenting the results of any test, study,
or research; and from representing that any testimonial or endorsement
is the typical or ordinary experience of users of the advertised
product, unless the claim is substantiated or unless Universal
Merchants discloses the generally expected results clearly and
prominently. The agreement settles allegations that Universal Merchants
made unsupported claims about weight loss and health benefits in
infomercials for its Chromatrim and Chromatrim 100 chromium picolinate
chewing gum products.
DATES: Comments must be received on or before January 14, 1997.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pennsylvania Ave., NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Richard L. Cleland, Federal Trade
Commission, H-466, 6th and Pennsylvania Ave., NW, Washington, DC 20580.
(202) 326-3088.
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 accompanying complaint. An electronic copy of the
full text of the consent agreement package can be obtained from the FTC
Home page, on the World Wide Web, at ``http://www.ftc.gov/os/actions/
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 for Public Comment
The Federal Trade Commission has accepted an agreement to a
proposed consent order from Universal Merchants, Inc., the marketer of
ChromaTrim, a chewing gum containing chromium picolinate sold as a
weight loss aid, and its president, Steven Oscherowitz, hereinafter
sometimes referred to as respondents.
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 or make final the agreement's proposed
order.
The Commission's complaint in this matter alleges that the
respondents made unsubstantiated claims that ChromaTrim (1) reduces
body fat, (2) causes significant weight loss, (3) significantly reduces
body fat and causes weight loss without dieting or exercise, (4)
increases lean body mass and builds muscle, and (5) controls appetite
and craving for sugar. The complaint further alleges that respondents
falsely represented that these effects have been demonstrated through
scientific studies. In addition, the complaint alleges that respondents
made unsubstantiated claims that (1) testimonials from consumers
appearing
[[Page 58564]]
in ChromaTrim advertisements reflect the typical or ordinary experience
of users and (2) that nine out of ten people suffer decreased ability
to burn fat, preserve muscle, and control hunger and cravings because
of a chromium deficiency.
The proposed consent order contains provisions designed to remedy
the violations charged and to prevent the respondents from engaging in
similar acts and practices in the future.
Part I of the order requires substantiation for claims that
ChromaTrim (1) significantly reduces body fat, (2) causes significant
weight loss, (3) significantly reduces body fat or causes weight loss
without dieting or exercise, (4) increases lean body mass or builds
muscle, and (5) controls appetite or craving for sugar. Similarly, Part
I prohibits the claim that nine out of ten people do not consume enough
chromium to support normal insulin function, resulting in decreased
ability to burn fat, preserve muscle, and control hunger and cravings,
unless, such claim is substantiated by competent and reliable
scientific evidence at the time it is made.
Part II of the proposed order requires substantiation for any
health benefits, performance, efficacy or safety claim for any food,
dietary supplement, or drug. Part III prohibits the misrepresentation
of any test, study, or research. Part IV prohibits proposed respondents
from representing that any testimonial is the typical or ordinary
experience of users unless such claim is substantiated or respondents
disclose, clearly and prominently, what the generally expected results
would be or that consumers should not expect similar results. Parts V
and VI allow representations permitted for drugs by the Food and Drug
Administration or for foods under the Nutrition Labeling and Education
Act. Part VII requires proposed respondents to maintain certain records
for five years, and Part VIII requires proposed respondents to
distribute a copy of the order to certain persons who have
responsibilities subject to the order. Part IX requires the corporate
respondent to notify the Commission of any changes in the corporation
that may affect compliance with the order and Part X requires that
Steven Oscherowitz notify the Commission of changes in employment or of
his affiliation with any new employment. This provision is effective
for five years. Part XI requires that the proposed respondents file a
compliance report and Part XII sunsets the proposed order at 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.
Donald S. Clark,
Secretary.
[FR Doc. 96-29267 Filed 11-14-96; 8:45 am]
BILLING CODE 6750-01-P
