Roger J. Callahan; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 942-3278]

Roger J. Callahan; 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 March 23, 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: C. Steven Baker or Russell W. Damtoft,

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 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 complaint. An electronic copy of the full text of

the consent agreement package can be obtained from the FTC Home Page

(for January 13, 1998), 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 accepted an agreement, subject to

final approval, to a proposed consent order from respondent Roger J.

Callahan.

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.

This matter concerns efficacy claims made regarding Dr. Callahan's

Addiction Breaking System promoted by respondent. The Commission's

complaint charges that respondent, in concert with Mega Systems, Inc.,

made false and unsubstantiated claims that Dr. Callahan's Addiction

Breaking System (1) Reduces an individual's compulsive desire to eat,

leading to significant weight loss, (2) reduces an individual's

compulsive desire to eat, leading to significant weight loss without

the need to diet or exercise, and (3) cures addictions and compulsions,

including but not limited to, smoking, eating, and using alcohol or

heroin.

The proposed consent order contains provisions designed to remedy

the violations charged and to prevent the respondent from engaging in

similar acts and practices in the future. The proposed order extends to

any weight loss product or program or any product or program purported

to treat addictions or compulsions.

Part I of the proposed consent order prohibits the respondent from

representing that Dr. Callahan's Addiction Breaking System, or any

substantially similar product or program purported to treat addictions

or compulsions, (1) reduces an individual's compulsive desire to eat,

leading to significant weight loss, (2) reduces an individual's

compulsive desire to eat, leading to significant weight loss without

the need to diet or exercise, or (3) cures addictions and compulsions,

including but not limited to, smoking, eating, and using alcohol or

heroin. Part II of the proposed order prohibits the respondent from

representing the performance, benefits, or efficacy of any weight loss

product or program or any product or program purported to treat

addictions or compulsions, unless the representation is substantiated.

Part III of the proposed order requires the respondent to pay fifty

thousand dollars into a redress fund.

The remaining parts of the proposed consent order require the

respondent to maintain promotional and substantiation materials related

to the claims covered by the order, to notify the Commission of any

changes in his employment, and to file one or more compliance reports.

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

proposed consent 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. 98-1361 Filed 1-20-98; 8:45 am]

BILLING CODE 6750-01-M