Icon Health and Fitness, Inc.; IHF Holdings, Inc.; IHF Capital; Analysis To Aid Public Comment

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