[Federal Register Volume 62, Number 120 (Monday, June 23, 1997)]
[Notices]
[Pages 33872-33873]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-16316]
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FEDERAL TRADE COMMISSION
[File No. 962-3045]
Icon Health and Fitness, Inc.; IHF Holdings, Inc.; IHF Capital;
Analysis To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement.
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SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices or unfair methods of competition. The attached Analysis to
Aid Public Comment describes both the allegations in the draft
complaint that accompanies the consent agreement and the terms of the
consent order--embodied in the consent agreement--that would settle
these allegations.
DATES: Comments must be received on or before August 22, 1997.
ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,
[[Page 33873]]
Room 159, 6th St. and Pa. Ave., NW., Washington, DC 20580.
FOR FURTHER INFORMATION CONTACT: Laura Fremont, Federal Trade
Commission, San Francisco Regional Office, 901 Market Street, Suite
570, San Francisco, CA 94103. (415) 356-5270. Jeffrey Klurfeld, Federal
Trade Commission, San Francisco Regional Office, 901 Market Street,
Suite 570, San Francisco, CA 94103. (415) 356-5270.
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 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 June 17, 1997), on
the World Wide Web, at ``http://www.ftc.gov/os/actions/htm.'' A paper
copy can be obtained form 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 Order To Aid Public Comment
The Federal Trade Commission has accepted, subject to final
approval, an agreement to a proposed consent order from Icon Health and
Fitness, Inc., IHF Capital, Inc., and IHF Holdings, Inc. (collectively
``respondents''), which market exercise equipment. All three companies
are Delaware corporations.
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 against respondents alleges that they
deceptively advertised the ``Cross Walk Treadmill,'' a motorized
treadmill. The Commission's complaint charges that respondents'
advertising contained unsubstantiated calorie burn and weight loss
representations. Specifically, the complaint alleges that the
respondents did not possess adequate substantiation for the claim that
users of the Cross Walk Treadmill will burn calories at a rate of up to
1,100 per hour under conditions of ordinary use. The complaint notes
that respondents obtained the 1,100 calorie figure from a study that
measured the rate of calorie burn of persons who had exercised to the
point of exhaustion. The complaint alleges that such ``maximal
exertion'' tests are not appropriate measures of the number of calories
people can burn during ordinary exercise because they measure calorie
burn at a level of exercise intensity that is unsustainable for more
than an extremely short period of time. The Commission's complaint also
charges that the respondents did not possess adequate substantiation
for the claim that weight loss testimonials from consumers appearing in
advertisements for the treadmill reflect the typical or ordinary
experience of members of the public who use the product.
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 proposed order would prohibit respondents from making
any claim for the ``Cross Walk Treadmill,'' or for any other exercise
equipment: (1) About the relative, comparative, or absolute rate at
which users burn calories, or the number of calories users burn,
through use of such product; (2) about the relative, comparative, or
absolute weight loss users achieve through use of such product; (3)
about the relative, comparative, or absolute amount of fat or fat
calories users burn through use of such product; or (4) about the
benefits, performance, or efficacy of any such product with respect to
calorie burning, fat burning, or weight loss; unless, at the time such
a claim is made, respondents possess and rely upon competent and
reliable evidence, which when appropriate must be competent and
reliable scientific evidence, that substantiates the claim.
Part II of the proposed order addresses claims made through
endorsements or testimonials. Under Part II, respondents may make such
representations if they possess and rely upon competent and reliable
scientific evidence that substantiates the representations; or
respondents must disclose either what the generally expected results
would be for users of the advertised product, or the limited
applicability of the endorser's experience to what consumers may
generally expect to achieve. The proposed order's treatment of
testimonial claims is in accordance with the Commission's ``Guides
Concerning Use of Endorsements and Testimonials in Advertising,'' 16
CFR 255.2(a).
The remaining provisions of the proposed order relate to
respondents' obligation to make available to the Commission materials
substantiating claims covered by the order; to notify the Commission of
changes in the corporations' structure; to provide copies of the order
to certain personnel of the corporations; and to file compliance
reports with the Commission. The order also provides that the order
will terminated after twenty years under certain circumstances.
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.
Donald S. Clark,
Secretary.
[FR Doc. 97-16316 Filed 6-20-97; 8:45 am]
BILLING CODE 6750-01-M
