[Federal Register Volume 61, Number 242 (Monday, December 16, 1996)]
[Notices]
[Pages 66040-66041]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-31802]
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FEDERAL TRADE COMMISSION
[File No. 962-3047]
Comtrad Industries, Inc.; 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
Midlothian, Virginia-based company from misrepresenting, in connection
with any product for use in the storage of food, the product's
comparative or absolute ability to refrigerate or cool food items or
medicines or to maintain proper cold storage temperatures; the
product's comparative or absolute ability to heat or warm food items;
the product's comparative or absolute ability to hold its cooling
capacity after being unplugged from a power source; or the effect of
operating the product off a car battery when the car is not running.
The agreement settles allegations stemming from advertisements for
Comtrad's ``Koolatron'' thermo-electric cooler.
DATES: Comments must be received on or before February 14, 1997.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT:
Phoebe D. Morse, Federal Trade Commission, Boston Regional Office, 101
Merrimac Street, Suite 810, Boston, MA 02114-4719. (617) 424-5960
John T. Dugan, Federal Trade Commission, Boston Regional Office, 101
Merrimac Street, Suite 810, Boston, MA 02114-4719. (617) 424-5960
SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Sec. 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
Commission Actions section of the FTC Home Page (for December 9, 1996),
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 Sec. 4.9(b)(6)(ii) of the Commission's rules
of practice (16 CFR 4.9(b)(6)(ii)).
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission has accepted an agreement to a
proposed consent order from Comtrad Industries, Inc. The proposed
respondent is a marketer of ``Koolatron,'' a portable electronic food
cooler that doubles as a food warmer.
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.
The Commission's complaint charges that the proposed respondent
made the following false and unsubstantiated representations about
Koolatron: (1) Koolatron is as effective at cooling food items and
medicines as a home refrigerator; (2) Koolatron will effectively cool
down warm items and heat up cold items; (3) once unplugged from a power
source, Koolatron will hold its cooling capacity for 24 hours; and (4)
operating Koolatron off a car battery when the car is not running will
result in only a minimal drain off the car's battery. The complaint
also charges that the proposed respondents represented that Koolatron
is effective, useful, or appropriate for cooling or heating food items,
but failed to disclose that in some circumstances Koolatron
[[Page 66041]]
may not keep perishable food items sufficiently cold to prevent the
growth of harmful bacteria on the food, or that Koolatron's maximum
internal heating temperature is not high enough to kill or prevent the
growth of certain harmful bacteria on perishable food items.
The proposed consent order contains provisions designed to remedy
the violations charged and to prevent proposed respondent from engaging
in similar acts in the future.
Part I of the proposed order, in connection with any product for
use in the storage of food, prohibits the proposed respondent from
misrepresenting: (1) The comparative or absolute ability of such
product to refrigerate or cool food items or medicines or to maintain
proper cold storage temperatures; (2) the comparative or absolute
ability of such product to heat or warm food items; (3) the comparative
or absolute ability of such product to hold its cooling capacity after
being unplugged from a power source; or (4) the effect of operating
such product off a car battery when the car is not running, including
the amount of power used by the product in such circumstances or the
potential for such use to drain the car battery of all power. Part II,
in connection with any product for use in the storage of food,
prohibits any representation about the benefits, performance, efficacy,
or safety of such product, unless proposed respondent possesses and
relies upon competent and reliable evidence, which when appropriate
must be competent and reliable scientific evidence, that substantiates
the representation.
Part III of the proposed order, in connection with Koolatron or any
substantially similar product, prohibits any representation about the
effectiveness, usefulness, or appropriateness of such product for
cooling food items, unless proposed respondent also discloses that such
product may not keep perishable food items sufficiently cold in some
circumstances to prevent the growth of harmful bacteria on the food.
Part IV of the proposed order, in connection with Koolatron or any
substantially similar product, prohibits any representation about the
effectiveness, usefulness, or appropriateness of such product for
heating or warming food items, unless proposed respondent also
discloses that use of the product for such purposes may pose a risk of
buildup of harmful bacteria on the food.
The proposed order (Part V) contains record keeping requirements
for materials that substantiate, qualify, or contradict covered claims
and requires the proposed respondent to keep and maintain all
advertisements and promotional materials containing any representation
covered by the proposed order. In addition, the proposed order (Part
VI) requires distribution of a copy of the consent decree to current
and future officers and agents.
Part VII provides for Commission notification upon a change in the
corporate respondent. The proposed order also requires the filing of
compliance report(s) (Part VIII). Finally, Part IX provides for the
termination of the order after 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. 96-31802 Filed 12-13-96; 8:45 am]
BILLING CODE 6750-01-P
