Venegas Inc.; Angel Venegas; Analysis to Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 962-3218]

Venegas Inc.; Angel Venegas; 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 January 5, 1998.

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

[[Page 59872]]

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 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 October 29, 1997),

on the World Wide Web, at ``http://www.ftc.gov/os/actions97.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 accepted, subject to final

approval, an agreement to a proposed consent order from Venegas Inc.

(``Venegas'') and Angel Venegas.

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 comments received and will decide whether it should withdraw from

the agreement or make final the agreement's proposed order.

This matter concerns print advertisements for proposed respondents'

Alen, a powdered nutritional supplement that contains wheat germ, wheat

bran, soybean extract, and seaweed extract. The Commission's complaint

alleges that the proposed respondents made unsubstantiated

representations that Alen: increases life expectancy; delays the aging

process; eliminates anemia; increases the immune system's defenses;

increases memory or scholastic performance; helps diabetics naturally

produce insulin; reduces the pain of rheumatism or migraines; lowers

blood pressure; helps heal ulcers; increases muscle bulk; controls

addictions to excess fat and sweets; and protects against infections

and increases and enhances the healing process.

The proposed order contains provisions designed to remedy the

violations charged and to prevent proposed respondents from engaging in

similar acts in the future.

Paragraph I of the proposed order prohibits proposed respondents

from representing that Alen or any other product: Increases life

expectancy; delays the aging process; eliminates anemia; increases the

immune system's defenses; increases memory or scholastic performance;

helps diabetics naturally produce insulin; reduces the pain of

rheumatism or migraines; lowers blood pressure; helps heal ulcers,

increases muscle bulk; controls addictions to excess fat and sweets; or

protects against infections and increases and enhances the healing

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

possess and rely upon competent and reliable scientific evidence that

substantiates the representation.

Paragraph II of the proposed order prohibits proposed respondents

from making any representation about the benefits, performance, or

efficacy of Alen, or any food, dietary supplement, or drug, unless, at

the time the representation is made, proposed respondents possess and

rely upon competent and reliable scientific evidence that substantiates

the representation.

Paragraph III of the proposed order provides that nothing in this

order shall prohibit proposed respondents from making any

representation for any product permitted by the Food and Drug

Administration. Paragraph IV of the proposed order provides that

nothing in this order shall prohibit proposed respondent from making

any representation for any drug permitted by the Food and Drug

Administration.

Paragraph V of the proposed order requires the proposed respondents

to keep and maintain all advertisements and promotional materials

containing any representation, and all materials that were relied upon

in disseminating the representations, covered by the proposed order.

Additionally, Paragraph VI requires distribution of a copy of the

consent order to current and future officers and agents. Further,

Paragraph VII provides for Commission notification upon a change in the

corporate respondent, and Paragraph VIII requires Commission

notification when the individual respondent changes his present

business or employment. Paragraph IX requires proposed respondents to

file compliance reports with the Commission. Lastly, Paragraph X

provides for the termination of the order after twenty (20) years under

certain circumstances.

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

proposed order, and 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. 97-29279 Filed 11-4-97; 8:45 am]

BILLING CODE 6750-01-M