Filtration Manufacturing, Inc.; Gary L. Sewell; Horace R. Allen; Brandon R. Clausen; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 942-3036]

Filtration Manufacturing, Inc.; Gary L. Sewell; Horace R. Allen;

Brandon R. Clausen; 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 require, among other things, the Mobile,

Alabama-based manufacturer of filters for forced-air heating systems

and other respondents to possess substantiation for all performance

claims, health or other benefits claims, and efficacy claims made for

any air cleaning product in the future. The agreement settles

allegations that the respondents made misleading claims regarding

allergy relief, airborne particle removal, and cost benefits when their

filters are used in place of standard forced air system filters, in

advertisements for Filtration Manufacturing's Allergy 2000

electrostatic air filter.

DATES: Comments must be received on or before December 27, 1996.

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:

John Mendenhall, Federal Trade Commission, Cleveland Regional Office,

668 Euclid Avenue, Suite 520-A, Cleveland, OH 44114-3006. (216) 522-

4210

Michael Milgrom, Federal Trade Commission, Cleveland Regional Office,

668 Euclid Avenue, Suite 520-A, Cleveland, OH 44114-3006. (216) 522-

4210

Brinley Williams, Federal Trade Commission, Cleveland Regional Office,

668 Euclid Avenue, Suite 520-A, Cleveland, OH 44114-3006. (216) 522-

4210

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, N.W., Washington,

D.C. 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)).

[[Page 55643]]

Analysis of Proposed Consent Order To Aid Public Comment (Filtration

Manufacturing, Inc.)

The Federal Trade Commission has accepted, subject to final

approval, an agreement to a proposed consent order from Filtration

Manufacturing, Inc., a corporation (FMI), and Gary L. Savell (Savell),

Horace R. Allen (Allen) and Brandon R. Clausen (Clausen). FMI

manufactures and sells air filters for use in residential heating

systems, under the brand name Allergy 2000, among others. The proposed

consent order has been placed on the public record for sixty (60) days

to receive the comments of 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 will decide

whether it should withdraw from the agreement or make final the

agreement's proposed order.

The Commission's complaint charges that FMI, deceptively advertised

that (1) use of the Allergy 2000 filter will substantially reduce the

incidence of allergies caused by indoor allergens under household

living conditions; (2) use of the Allergy 2000 will substantially

reduce the amount of disease-causing germs in the air people breathe

under household living conditions; (3) use of the Allergy 2000 will

substantially reduce the incidence of disease caused by germs in the

air people breathe under household living conditions; (4) people who

use the Allergy 2000 in their homes will be healthier and have fewer

illnesses than they would if they used a conventional filter; and, (5)

the Allergy 2000 removes substantially all of the airborne

contaminants, including allergens, from the air people breathe under

the household living conditions. The complaint charges that FMI lacked

substantiation for these claims. The complaint charges that these

claims were made through advertisements and promotional materials and

through use of the trade name ``Allergy 2000.''

In addition to the health-related claims listed above, the

complaint also charges that FMI deceptively advertised that consumers

would have lower utility bills if they replaced conventional filters

with the Allergy 2000. The complaint charges that FMI lacked

substantiation for this claim, too.

The complaint charges that Savell, Allen and Clausen formulated and

controlled the affairs of FMI, including the acts and practices charged

in the complaint.

The proposed order contains provisions designed to prevent

misrepresentations related to these specific matters and others.

Paragraph I of the proposed order prohibits FMI, Savell, Allen and

Clausen (the respondents) from making any representation regarding the

performance, health or other benefits, or efficacy of any air cleaning

product (which is defined) unless they can substantiate the claims with

competent and reliable evidence. If the representation states or

implies a level of performance under household conditions, then the

evidence that substantiates the representation must either be related

to such conditions or must have been extrapolated to household

conditions by generally accepted procedures.

Paragraph II prohibits the respondents from using the trade name

Allergy 2000 or any other name that represents that the product will

relieve allergy symptoms unless they can substantiate the

representation.

Paragraphs III, IV, VI, and VII are compliance and reporting

provisions that require the respondents to maintain for five (5) years

the records on which they rely to substantiate any representation

covered by the order, to provide copies of the order to certain

employees of FMI, to notify the Commission in the event of changes in

FMI that may affect compliance obligations arising out of the order,

and to file a compliance report with the Commission within sixty (60)

days after the order becomes final. Paragraph V requires Savell, Allen

and Clausen to notify the Commission of any change in their business

affiliation.

Paragraph VIII provides that the order will terminate automatically

twenty years from the date it becomes final unless the Commission has

brought an aciton in federal court alleging a violation of the order.

In that case, the order will terminate twenty years from the date that

the federal court action is filed.

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. 96-27575 Filed 10-25-96; 8:45 am]

BILLING CODE 6750-01-M