9723136 UNITED STATES OF AMERICA In the Matter of CARE TECHNOLOGIES, INC., a corporation. DOCKET NO. C-3840 COMPLAINT The Federal Trade Commission, having reason to believe that Care Technologies, Inc., a corporation (respondent), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges: 1. Respondent Care Technologies, Inc. is a Connecticut corporation with its principal office or place of business at 10 Corbin Drive, Darien, Connecticut 06820. 2. Respondent has manufactured, advertised, labeled, offered for sale, sold, and distributed over-the-counter pharmaceuticals to the public, including Clear Lice Killing Shampoo and Clear Lice Egg Remover. Clear Lice Killing Shampoo and Clear Lice Egg Remover are drugs, within the meaning of Sections 12 and 15 of the Federal Trade Commission Act. 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as commerce is defined in Section 4 of the Federal Trade Commission Act. 4. Respondent has disseminated or has caused to be disseminated advertisements for the Clear Lice Killing Shampoo and the Clear Lice Egg Remover, including but not necessarily limited to the attached Exhibits A through E. These advertisements contain the following statements:
5. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that:
6. In truth and in fact:
Therefore, the representations set forth in Paragraph 5 were, and are, false or misleading. 7. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that it possessed and relied upon a reasonable basis that substantiated the representations set forth in Paragraph 5, at the time the representations were made. 8. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representations set forth in Paragraph 5, at the time the representations were made. Therefore, the representation set forth in Paragraph 7 was, and is, false or misleading. 9. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that laboratory and field testing proves that Clear Lice Egg Remover loosens or unglues lice eggs from the hair. 10. In truth and in fact, laboratory and field testing does not prove that Clear Lice Egg Remover loosens or unglues lice eggs from the hair. Therefore, the representation set forth in Paragraph 9 was, and is, false or misleading. 11. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices, and the making of false advertisements, in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act. THEREFORE, the Federal Trade Commission this fourteenth day of December, 1998, has issued this complaint against respondent. By the Commission. Donald S. Clark SEAL: |