Rogerio Monteiro and Eliana Crema, Individually and Doing Business as Leeka Products; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 962-3194]

Rogerio Monteiro and Eliana Crema, Individually and Doing

Business as Leeka Products; 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 September 5, 1997.

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 J. Bloom, Federal Trade

Commission, New York Regional Office, 150 William Street, Suite 1300,

New York, NY 10038. (212) 264-1207.

Donald G. D'Amato, Federal Trade Commission, New York Regional Office,

150 William Street, Suite 1300, New York, NY 10038. (212) 264-1207

Denise Tighe, Federal Trade Commission, New York Regional Office, 150

William Street, Suite 1300, New York, NY 10038. (212) 264-1207.

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

Commission Actions section of the FTC Home Page (for June 26, 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, 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)).

Analysis of Proposed Consent Order to Aid Public Comment

The Federal Trade Commission has provisionally accepted an

agreement to a proposed consent order from respondents Rogerio Monteiro

and Eliana Crema, doing business as Leeka Products, who market Super

Formula Reductora, Perfect Shape Crema Sudadora, and Tratamiento para

Combatir la Caida del Cabello.

The proposed consent order has been placed on the public record for

sixty (60) days for receipt 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 make the

final the agreement's proposed order, or withdraw from the agreement

and take other appropriate action.

This matter concerns the advertising of Leeka brand products.

Advertisements for Super Formula Reductora make claims that the product

will control and regulate metabolism, reduce appetite, burn or dissolve

fat, and cause weight loss. The advertisements for Crema Sudadora

Perfect Shape claim that the cream causes better results from exercise,

increases the number of calories burned during exercise, and causes the

user to get lean faster. Advertisements for Tratamiento para Combatir

la Caida del Cabello, which means ``Treatments to Fight Hair Loss,''

claim that the product will prevent or retard hair loss. The

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Commission's complaint charges that the respondents did not posses and

rely upon a reasonable basis that substantiated the claims at the time

they were made.

Additionally, the complaint alleges the advertisements falsely

represent that scientific studies of Chromium Picolinate demonstrate

that Super Formula Reductora will cause weight loss.

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 prohibits the respondents from making

unsubstantiated claims that Super Formula Reductora, Crema Sudadora

Perfect Shape, Tratamiento para Combatir la Caida del Cabello or any

food, dietary supplement, cosmetic or drug, controls and regulates

metabolism; reduces appetite; burns or dissolves fat; causes better

results from exercise; increases calories burned during exercise;

provides any weight loss, fat loss, weight regulation, weight control,

or weight maintenance benefits; or will prevent or retard hair loss.

Part II of the proposed order prohibits the respondent from

representing that any product prevents hair loss, unless the product is

the subject or an approved new drug application for such purpose under

the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. Sec. 301 et seq.,

provided that, the requirement shall not limit the requirements of

Order Part I.

Part III of the proposed order prohibits the respondents from

making any representation about the benefits, performance, or efficacy

of its products unless, at the time the representation is made,

respondents possess and rely upon competent and reliable scientific

evidence that substantiates the representation.

Part IV of the proposed order prohibits the respondents from using

the name ``Tratamiento para Combatir la Caida del Cabello'' or any

other name that represents that a product will prevent or retard hair

loss, unless, at the time the representation is made, respondents

possess and rely upon competent and reliable scientific evidence that

substantiates the presentation.

Part V of the proposed order prohibits the respondents from

misrepresenting the existence, contents, validity, results,

conclusions, or interpretation of any test, study, or research.

Parts VI and VII of the proposed order harmonize the requirements

of the order with the Nutrition Labeling and Education Act of 1990 and

with Food and Drug Administration procedures.

The proposed order requires respondents to maintain advertisements

and promotional material and materials relied upon to substantiate the

claims covered by the order; to provide a copy of the consent agreement

to certain personnel in the company; to notify the Commission of

certain changes in the company; to notify the Commission of changes in

the respondents' employment; and to file reports regarding compliance

with the order.

Part IX of the proposed order states that the order terminates 20

years from the date of issuance, except under certain specified

conditions.

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.

Benjamin Berman,

Acting Secretary.

[FR Doc. 97-17561 Filed 7-3-97; 8:45 am]

BILLING CODE 6750-01-M