Nationwide Syndications, Inc.; Thomas W. Karon; Analysis to Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 952-3041]

Nationwide Syndications, Inc.; Thomas W. Karon; 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 prohibit, among other things, the

Barrington, Illinois-based company and its president from

misrepresenting that its NightSafe Glasses make driving at night safer,

and from using the name ``NightSafe,'' or any other name that would

imply that such a product makes night driving safe or safer. Nationwide

and Karon also agreed to pay $125,000 in consumer redress, and to

provide the Commission with the names of consumers who purchased

NightSafe glasses, so the Commission may provide them with a notice

that wearing NightSafe glasses while driving at night may, in fact, be

unsafe. The complaint accompanying the consent agreement alleges that

Nationwide and Karon made false and unsubstantiated claims regarding

the benefits of NightSafe Glasses, which purportedly make night driving

safer by improving night vision.

DATES: Comments must be received on or before April 7, 1997.

ADDRESSES: Comments should be directed to: FTC/Office of the Secretary,

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

FOR FURTHER INFORMATION CONTACT: C. Steven Baker, Federal Trade

Commission, Chicago Regional Office, 55 East Monroe St., Suite 1860,

Chicago, IL 60603. (312) 353-8156. Karen D. Dodge, Federal Trade

Commission, Chicago Regional Office, 55 East Monroe St., Suite 1860,

Chicago, IL 60603. (312) 353-8156.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal

Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46, and Sec. 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 January 24, 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 Sec. 4.9(b)(6)(ii) of the Commission's rules

of practice (16 CFR 4.9(b)(6)(ii)).

Analysis of the Proposed Consent Order to Aid Public Comment

The Federal Trade Commission has accepted an agreement to a

proposed

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consent order from Nationwide Syndications, Inc., a corporation, and

Thomas W. Karon, individually and as an officer of Nationwide

Syndications, Inc.

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 withdraw

from the agreement and take other appropriate action, or make final the

proposed order contained in the agreement.

This matter concerns the proposed respondents' advertisements for

NightSafe Glasses. The Commission's proposed complaint alleges that the

advertisements expressly or impliedly claim that NightSafe Glasses will

make night driving safer, improve night vision, and that laboratory

tests prove that NightSafe Glasses improve night vision. These claims

are alleged to violate section 5 of the Federal Trade Commission Act,

15 U.S.C. 45, because they are false and the proposed respondents did

not possess adequate substantiation for the claims at the time they

were made.

Part I of the proposed consent order prohibits the proposed

respondents from representing, directly or by implication, that

NightSafe Glasses or any substantially similar product, makes night

driving safe or safer or improves night vision. Part II of the proposed

order prohibits proposed respondents from representing, directly or by

implication, the efficacy, performance, safety, or benefits of

NightSafe Glasses or any substantially similar product, unless such

representation is true and, at the time of making such representation,

respondents possess and rely upon competent and reliable scientific

evidence. Part III of the proposed order prohibits the proposed

respondents from representing, directly or by implication, the

existence, contents, validity, results, conclusions, or interpretations

of any test or study. Part IV of the proposed order prohibits the

proposed respondents from using the name ``NightSafe,'' or any other

name, in a manner that represents, directly or by implication, that

such product makes night driving safe or safer. Part V of the proposed

order requires the proposed respondents to pay $125,000 for consumer

redress. Part VI of the proposed order requires the respondents to

provide to the Commission the names and addresses of all of the

purchasers of NightSafe Glasses whose names and addresses are in the

possession of or can reasonably be obtained from the agents involved in

fulfilling orders on behalf of Nationwide Syndications, Inc., and

permits the Commission to provide the purchasers of NightSafe Glasses

with safety information contained in an appendix to the proposed order.

The remaining parts of the consent order require proposed

respondents to maintain all materials relied upon in disseminating any

representation covered by the proposed consent order, to deliver a copy

of the proposed order to all current and future officers, agents,

representatives, and employees who are engaged in the preparation or

placement of advertisements, promotional materials, product labels or

other such sales materials covered by the proposed consent order, to

notify the Commission of any changes in the structure of the proposed

corporate respondents or the employment of the proposed individual

respondent, for each proposed respondent to file a written report with

the Commission setting forth in detail how it complied with the order,

and for the order to terminate twenty years from the date of its

issuance, absent the filing of a complaint or consent decree alleging

that the order has been violated.

The purpose of this analysis is to facilitate public comment of 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. 97-2811 Filed 2-4-97; 8:45 am]

BILLING CODE 6750-01-P