UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION

In the Matter of

PHYSICIANS FORMULA COSMETICS, INC., a corporation.

DOCKET NO.

COMPLAINT

1. Respondent Physicians Formula Cosmetics, Inc. is a Delaware corporation with its principal office or place of business at 1055 W. Eighth Street, Azusa, California 91702.

2. Respondent has labeled, offered for sale, sold, and distributed products to the public, including cosmetics, cosmetics brushes, and skin-care products.

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 packaging and labeling for its cosmetics, cosmetics brushes, and skin-care products, including but not necessarily limited to the attached Exhibits A through G. The packaging and labeling contain the following statements:

A. Exhibit A, product card for Pull-Up Powder Brush

"MADE IN USA"

B. Exhibit B, product card for Eyebrightener Liner Brightening Liquid Eyeliner

"Made in USA"

C. Exhibit C, product card for Deluxe Cosmetic Brush

"MADE IN USA"

D. Exhibit D, product card for AquaWear Conditioning Mascara

"Made in USA"

E. Exhibit E, product packaging for Translucent Loose Powder

"Made in USA"

F. Exhibit F, product packaging for Translucent Pressed Powder

"MADE IN USA"

G. Exhibit G, product label for Shine Away Acne Control Primer

"MADE IN USA"

5. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that certain of its cosmetics, cosmetics brushes, and skin-care products are made in the United States, i.e., that all, or virtually all, of the component parts of such products are made in the United States, and that all, or virtually all, of the labor in manufacturing such products is performed in the United States.

6. In truth and in fact, a significant portion of the components of certain of respondent's cosmetics, cosmetic brushes, and skin-care products is, or has been, of foreign origin. Therefore, the representations set forth in Paragraph 5 were, and are, false or misleading.

7. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.

THEREFORE, the Federal Trade Commission this ____ day of ____________, 1999, has issued this complaint against respondent.

By the Commission.

Donald S. Clark
Secretary

SEAL: