Kent & Spiegel Direct, Inc.; Marsha Kent; Peter Spiegel; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 962-3041]

Kent & Spiegel Direct, Inc.; Marsha Kent; Peter Spiegel; 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 33874]]

Room 159, 6th St. and Pa. Ave., NW, Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT:

Kerry O'Brien, San Francisco Regional Office, Federal Trade Commission,

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 field 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 compliant. 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 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 Orders To Aid Public Comment

The Federal Trade Commission has accepted, subject to final

approval, agreements to a proposed consent order from Kent & Spiegel

Direct, Inc., and its officers, Marsha Kent and Peter Spiegel, and a

proposed consent order from Abflex, U.S.A., Inc., and its officer,

Martin Van Der Hoeven (collectively ``respondents'').

The proposed consent orders have been place 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

agreements and the comments received and will decide whether it should

withdraw from the agreements and take other appropriate action or make

final the agreements' proposed orders.

The Commission's complaints against respondents allege that they

deceptively advertised the ``Abflex,'' an abdominal exercise device,

primarily through an informercial, over the internet, and through print

advertisements. The Commission's complaints charge that respondents'

advertising contained unsubstantiated weight loss success, rate of

weight loss, and spot reduction representation. Specifically, the

complaints allege that the respondents did not possess adequate

substantiation for claims that: (1) The Abflex causes fast and

significant weight loss; (2) Consumers lose at least ten pounds and

five inches, or three to six inches, off their waistline within thirty

days by using the Abflex for just three minutes a day; (3) The Abflex

causes weight loss and fat reduction in specific, desired areas of the

body; and 4) Testimonials from consumers appearing in the

advertisements for the Abflex reflect the typical or ordinary

experience of members of the public who use the product.

The proposed consent orders contain provisions designed to remedy

the violations charged and to prevent the respondents from engaging in

similar acts and practices in the futures.

Part I of the proposed orders would prohibit respondents form

making any claim for the ``Abflex,'' for any exercise equipment, or for

any weight-loss product: (1) About the number of pounds users can lose;

(2) About the rate or speed at which users lose weight; (3) About the

length of time users must use such product to achieve weight loss; (4)

That such product causes fast and significant weight loss; (5) That

such product causes a reduction in the size or shape of specific,

desired areas of the body; (6) That such product causes a reduction in

users' body size or shape, or body measurements; or (7) About the

benefits, efficacy, or performance of such product in promoting weight

loss, unless at the time of making them, they posses and rely upon

competent and reliable evidence, which when appropriate must be

competent and reliable scientific evidence.

Part II of the proposed orders address 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 remaining provisions of the proposed orders relate to

respondents' obligations to make available to the Commission materials

substantiating claims covered by the order; to notify the Commission of

changes in the corporations' structure; to notify the Commission of

changes in the individuals' employment or business affiliations; to

provide copies of the orders to certain personnel of the corporations;

and to file compliance reports with the Commission. The orders also

provide that the orders will terminate after twenty years under certain

circumstances.

The purpose of this analysis is to facilitate public comment on the

proposed orders. It is not intended to constitute an official

interpretation of the agreements and proposed orders or to modify in

any way their terms.

Donald S. Clark,

Secretary.

[FR Doc. 97-16314 Filed 6-20-97; 8:45 am]

BILLING CODE 6750-01-M