Care Technologies, Inc.; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

[File No. 972-3136]

Care Technologies, Inc.; 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 November 27, 1998.

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:

Linda Badger or Kerry O'Brien, San Francisco Regional Office, Federal

Trade Commission, 901 Market St., 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 been placed on the public

record for a period

[[Page 51580]]

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 September

18, 1998), 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, 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 an agreement, subject to

final approval, to a proposed consent order from respondent Care

Technologies, Inc.

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 or make final the agreement's proposed

order.

Care Technologies, Inc. (``Care'') markets two products for the

treatment of head lice infestations: ``Clear Lice Egg Remover'' and

``Clear Lice Killing Shampoo.'' The Commission's complaint alleges that

Care's advertising for these products included false and

unsubstantiated claims that: (1) Clear Lice Egg Remover loosens or

unglues lice eggs from the hair; (2) Clear Lice Killing Shampoo kills

one hundred percent of lice eggs; and (3) laboratory and field testing

proves that Clear Lice Egg Remover loosens or unglues lice eggs from

the hair.

The complaint alleges that Clear Lice Egg Remover does not loosen

or unglue lice eggs from the hair. Additionally, the complaint explains

that Clear Lice Killing Shampoo is based on a pesticide which is not

one hundred percent effective against lice eggs. Consumers should be

aware of this limitation and make every effort to physically remove

lice eggs. In addition, when this type of pediculicide is used,

consumers are instructed to apply a second treatment in seven to ten

days to kill any newly hatched lice.

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. Part I of the proposed order

would prohibit the company from representing that Clear Lice Egg

Remover, or any substantially similar product, loosens, unglues, or

otherwise detaches lice eggs from the hair, unless the representation

is true and, at the time it is made, respondent possesses and relies

upon competent and reliable scientific evidence that substantiates the

representation.

Part II of the proposed order would prohibit the company from

representing that Clear Lice Killing Shampoo, or any substantially

similar product, kills one hundred percent of lice eggs, unless the

representation is true and, at the time it is made, respondent

possesses and relies upon competent and reliable scientific evidence

that substantiates the representation.

Parts III and IV of the order require that, for a period of two

years, the company make disclosures in its advertisement anytime it

makes claims regarding the efficacy of Clear Lice Killing Shampoo or

any substantially similar product. Pursuant to Part III, the following

disclosure will be required in print ads and promotional materials:

``Reapplication and egg removal are required to ensure complete

effectiveness. See label for important information.'' Part IV requires

the disclosure, ``Two Treatments Required,'' be made in ads

communicated through an electronic medium, such as television. When the

ad makes any claims regarding directions for use of the product, this

disclosure must be in the audio as well as the video portion of the

advertisement.

Part V of the proposed order requires the company to have

scientific support prior to making any claims regarding the efficacy of

any drug or device for the treatment of lice in humans, or any

pesticide for treatment of lice. Part VI of the order of the proposed

order prohibits Care from misrepresenting the existence, contents,

validity, results, conclusions, or interpretations of any test study or

research, for any drug or device for the treatment of lice in humans,

or any pesticide for treatment of lice. Because this matter involves

drug regulated by the FDA, Part VII of the order includes a safe harbor

allowing the respondent to make any claim permitted under a new drug

application, or under a tentative final or final standard promulgated

by the agency.

The proposed order also requires the respondent to maintain

materials relied upon to substantiate claims covered by the order to

provide copies of the order to certain personnel of the respondent; to

notify the Commission of any changes in corporate structure that might

affect compliance with the order; and to file one or more reports

detailing compliance with the order.

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.

By direction of the Commission.

Donald S. Clark,

Secretary.

[FR Doc. 98-25844 Filed 9-25-98; 8:45 am]

BILLING CODE 6750-01-M