[Federal Register Volume 60, Number 72 (Friday, April 14, 1995)]
[Notices]
[Pages 19068-19070]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9265]
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FEDERAL TRADE COMMISSION
[File No. 932 3332]
Mattel, Inc.; Proposed Consent Agreement With 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 acts and practices and unfair methods of competition, this
consent agreement, accepted subject to final Commission approval, would
prohibit, among other things, a California-based corporation from
representing that any aerosol product it sells offers any environmental
benefit, unless it can substantiate the claim.
DATES: Comments must be received on or before June 13, 1995.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
Room 159, 6th St. and Pa. Ave., N.W., Washington, D.C. 20580.
FOR FURTHER INFORMATION CONTACT:
Michael Dershowitz, FTC/S-4002, Washington, D.C. 20580. (202) 326-3158.
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 following 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. 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)).
In the matter of Mattel, Inc., a corporation. File No. 932-3332.
Agreement Containing Consent Order to Cease and Desist
The Federal Trade Commission having initiated an investigation of
certain acts and practices of Mattel, Inc., a corporation (``proposed
respondent''), and it now appearing that proposed respondent is willing
to enter into an agreement containing an order to cease and desist from
the acts and practices being investigated,
It is hereby agreed by and between Mattel, Inc., by its duly
authorized officer, and its attorney, and counsel for the Federal Trade
Commission that:
1. Proposed respondent Mattel, Inc. is a corporation organized,
existing and doing business under and by virtue of the laws of the
State of Delaware, with its principal office or place of business at
333 Continental Blvd., El Segundo, California, 90245-5012.
2. Proposed respondent admits all the jurisdictional facts set
forth in the draft of complaint.
3. Proposed respondent waives:
(a) Any further procedural steps;
(b) The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law;
(c) All rights to seek judicial review or otherwise to challenge or
contest the validity of the order entered pursuant to this agreement;
and
(d) All claims under the Equal Access to Justice Act.
4. This agreement shall not become a part of the public record of
the proceeding unless and until it is accepted by the Commission. If
this agreement is accepted by the Commission, it, together with the
draft of the complaint contemplated hereby, will be placed on the
public record for a period of sixty (60) days and information in
respect thereto publicly released. The Commission thereafter may either
withdraw its acceptance of this agreement and so notify proposed
respondent, in which event it will take such action as it may consider
appropriate, or issue and serve its complaint (in such form as the
circumstances may require) and decision, in disposition of the
proceeding.
5. This agreement is for settlement purposes only and does not
constitute an admission by proposed respondent that the law has been
violated as alleged in the draft complaint or that the facts as alleged
in the draft complaint, other than the jurisdictional facts, are true.
6. This agreement contemplates that, if it is accepted by the
Commission, and if such acceptance is not subsequently withdrawn by the
Commission pursuant to the provisions of Sec. 2.34 of the Commission's
Rules, the Commission may without further notice to proposed
respondent, (1) issue its complaint corresponding in form and substance
with the draft of complaint and its decision containing the following
order to cease and desist in disposition of the proceeding, and (2)
make information public in respect thereto. When so entered, the order
to cease and desist shall have the same force and effect and may be
altered, modified or set aside in the same manner and within the same
time provided by statute for other orders. The order shall become final
upon service. Delivery by the U.S. Postal Service of the decision
containing the agreed-to order to proposed respondent's address as
stated in this agreement shall constitute service. Proposed respondent
waives any right it might have to any other manner of service. The
complaint may be used in construing the terms of the order, and no
agreement, understanding, representation, or interpretation not
contained in the order or in the agreement may be used to vary or
contradict the terms of the order.
7. Proposed respondent has read the complaint and the order
contemplated hereby. It understands that once the order has been
issued, it will be required to file one or more compliance reports
showing it has fully complied with the order. Proposed respondent
further understands that it may be liable for civil penalties in the
amount provided by law for each violation of the order after it becomes
final.
[[Page 19069]]
Order
Definitions
For purposes of this Order, the following definitions shall apply:
``Class I ozone-depleting substance'' means a substance that harms
the environment by destroying ozone in the upper atmosphere and is
listed as such in Title 6 of the Clean Air Act Amendments of 1960, Pub.
L. No. 101-549, and any other substance which may in the future be
added to the list pursuant to Title 6 of the Act. Class I substances
currently include chlorofluorocarbons, halons, carbon tetrachloride,
1,1,1-trichloroethane, methyl bromide and hydrobromofluorocarbons.
``Class II ozone-depleting substance'' means a substance that harms
the environment by destroying ozone in the upper atmosphere and is
listed as such in Title 6 of the Clean Air Act Amendments of 1960, Pub.
L. No. 101-549, and any other substance which may in the future be
added to the list pursuant to Title 6 of the Act. Class II substances
currently include hydrochlorofluorocarbons.
``Product'' means any product that is offered for sale, sold or
distributed to the public by respondent, its successors and assigns,
under the Barbie brand name or any other brand name of respondent, its
successors and assigns; and also means any product sold or distributed
to the public by third parties under private labeling agreements with
respondent, its successors and assigns.
``Competent and reliable scientific evidence'' means tests,
analyses, research, studies or other evidence based on the expertise of
professionals in the relevant area, that has been conducted and
evaluated in an objective manner by persons qualified to do so, using
procedures generally accepted in the profession to yield accurate and
reliable results.
I
It is ordered that respondent, Mattel, Inc., a corporation, its
successors and assigns, and its officers, agents, representatives, and
employees, directly or through any corporation, subsidiary, division,
or other device, in connection with the labeling, advertising,
promotion, offering for sale, sale, or distribution of any product
containing any Class I or Class II ozone-depleting substance, in or
affecting commerce, as ``commerce'' is defined in the Federal Trade
Commission Act, do forthwith cease and desist from representing that
any such product ``contains no chlorofluorocarbons'' or ``contains no
CFC's'' or representing, in any manner, directly or by implication,
that any such product will not deplete, destroy, or otherwise adversely
affect ozone in the upper atmosphere or otherwise harm the atmosphere.
II
It is further ordered that respondent, Mattel, Inc., a corporation,
its successors and assigns, and its officers, agents, representatives,
and employees, directly or through any corporation, subsidiary,
division, or other device, in connection with the labeling,
advertising, promotion, offering for sale, sale, or distribution of any
aerosol product in or affecting commerce, as ``commerce'' is defined in
the Federal Trade Commission Act, do forthwith cease and desist from
representing, in any manner, directly or by implication, that any such
product offers any environmental benefit, unless at the time of making
such representation, respondent possesses and relies upon competent and
reliable evidence, which when appropriate must be competent and
reliable scientific evidence, that substantiates such representation.
III
It is further ordered that for five (5) years after the last date
of dissemination of any representation covered by this Order,
respondent, or its successors and assigns, shall maintain and upon
request make available to the Federal Trade Commission for inspection
and copying:
A. All materials that were relied upon in disseminating such
representation; and
B. All tests, reports, studies, surveys, demonstrations, or other
evidence in its possession or control that contradict, qualify, or call
into question such representation, or the basis relied upon for such
representation, including complaints from consumers.
IV
It is further ordered that respondent shall distribute a copy of
this Order to each of its operating divisions and to each of its
officers, agents, representatives, or employees engaged in the
preparation and placement of advertisements, promotional materials,
product labels or other such sales materials covered by this Order.
V
It is further ordered that respondent shall notify the Commission
at least thirty (30) days prior to any proposed change in the
corporation such as a dissolution, assignment, or sale resulting in the
emergence of a successor corporation, the creation or dissolution of
subsidiaries, or any other change in the corporation which may affect
compliance obligations under this Order.
VI
It is further ordered that respondent shall, within sixty (60) days
after service of this Order upon it, and at such other times as the
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.
Analysis of Consent Order to Aid Public Comment
The Federal Trade Commission has accepted an agreement, subject to
final approval, to a proposed consent order from respondent Mattel,
Inc., 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.
This matter concerns the labeling of the respondent's Barbie Bath
Blast Fashion Foam Soap. The Commission's complaint in this matter
alleges that Barbie Bath Blast Fashion Foam Soap contains
hydrochlorofluorocarbons (``HCFCs'')--chlorodifluoroethane (HCFC-142b)
and chlorodifluoromethane (HCFC-22).
The Commission's complaint charges that the respondent labeled the
product, ``Contains no Chlorofluorocarbons (CFC's Non-Irritant--Non-
Toxic.'' The complaint alleges that through this claim, the respondent
falsely represented that because Barbie Bath Blast Fashion Foam Soap
contains no chlorofluorocarbons, it will not deplete the earth's ozone
layer or otherwise harm or damage the atmosphere. In fact, Barbie Bath
Blast Fashion Foam Soap contains the harmful ozone-depleting
ingredients chlorodifluoroethane (HCFC-142b) and chlorodifluoromethane
(HCFC-22), which harm or causes damage to the atmosphere by
contributing to the depletion of the earth's ozone layer.
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.
The proposed order defines Class I and Class II ozone-depleting
substances, [[Page 19070]] incorporating the definitions established in
the Clean Air Act Amendments of 1990. Class I substances currently
listed under the Act include CFCs, halons, carbon tetrachloride, 1,1,1-
trichloroethane, methyl bromide, and hydrobromofluorocarbons. Class II
substances currently consist of HCFCs.
Part I of the proposed order requires the respondent to cease and
desist from representing that any product containing any Class I or
Class II ozone-depleting substance ``contains no chlorofluorocarbons''
or ``contains no CFC's'' or representing, in any manner, that any such
product will not deplete, destroy, or otherwise adversely affect ozone
in the upper atmosphere or otherwise harm the atmosphere.
Under the Clean Air Act Amendments, the EPA has authority to add
new chemicals to the Class I and Class II lists. Thus, the order's
definitions of Class I and Class II ozone-depleting substances include
these and any other substances that may be added to the lists. If
additional substances are added to the Class I or II lists, Part I of
the order becomes applicable to claims made for products containing
those substances after the substances are added to the lists.
Part II of the proposed order provides that if the respondent
represents in advertising or labeling that any aerosol product offers
any environmental benefit, it must have a reasonable basis consisting
of competent and reliable evidence, which when appropriate must be
competent and reliable scientific evidence, that substantiates the
claims.
The proposed order also requires the respondent to maintain
materials relied upon to substantiate the claims covered by the order,
to distribute copies of the order to certain company officials, 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.
Benjamin I. Berman,
Acting Secretary.
[FR Doc. 95-9265 Filed 4-13-95; 8:45 am]
BILLING CODE 6750-01-M
