UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION

In the Matter of
JOHN MIDDLETON, INC., a corporation.

Docket No. C-3968

COMPLAINT

The Federal Trade Commission, having reason to believe that John Middleton, 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 John Middleton, Inc., is a Pennsylvania corporation with its principal office or place of business at 418 West Church Road, King of Prussia, PA 19406.

2. Respondent has manufactured, advertised, labeled, offered for sale, sold, and distributed products to the public, including cigars.

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. In its advertising, labeling, and sale of cigars, respondent has failed to disclose that regular cigar smoking can cause several serious adverse health conditions including, but not limited to, cancers of the mouth (oral cavity), throat (esophagus and larynx), and lungs. These facts would be material to consumers in their purchase and use of the product. Respondent's failure to disclose these facts has caused or is likely to cause substantial injury to consumers that is not outweighed by countervailing benefits to consumers or competition and is not reasonably avoidable by consumers. Therefore, the failure to disclose these facts was, and is, an unfair or deceptive practice.

5. 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 of the Federal Trade Commission Act.

THEREFORE, the Federal Trade Commission this eighteenth day of August, 2000, has issued this complaint against respondent.

By the Commission.

Donald S. Clark
Secretary

SEAL: