0023312 UNITED STATES OF AMERICA
In the Matter of ROBERT C. SPENCER
individually and d/b/a Aaron Company, and DOCKET NO. C- 4019 DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violations of the Federal Trade Commission Act; and The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, and admission by the respondents of all the jurisdictional facts set forth in the draft complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, or that the facts as alleged in such complaint, other than jurisdictional facts, are true, and waivers and other provisions as required by the Commission's Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents violated the said Act, and that a complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of thirty (30) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order: 1. Respondents Robert C. Spencer and Lisa M. Spencer are individuals doing business and residing at 1580 Masters Rd. N.W., Palm Bay, FL 32907 under the trade name "Aaron Company." 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.
ORDER DEFINITIONS For purposes of this order, the following definitions shall apply:
I. IT IS HEREBY ORDERED that respondents, directly or through any partnership, corporation, subsidiary, division, trade name, or other device, including franchisees, licensees, or distributors, in connection with the labeling, advertising, promotion, offering for sale, sale, or distribution of any Colloidal Silver product or any covered product or service in or affecting commerce, shall not misrepresent, in any manner, including by means of metatags, expressly or by implication, that such product or service has been medically proven to kill any disease-causing organisms, or any number of disease-causing organisms, in the body or that colloidal silver successfully treats any infections, or any number of infections, caused by disease-causing organisms, including germs, viruses, algae and fungus. II. IT IS HEREBY ORDERED that respondents, directly or through any partnership, corporation, subsidiary, division, trade name, or other device, including franchisees, licensees, or distributors, in connection with the labeling, advertising, promotion, offering for sale, sale, or distribution of any Colloidal Silver product, Chitosan with vitamin C product, Ultimate Energizer product, or any covered product or service in or affecting commerce, shall not make any representation, in any manner, including by means of metatags, expressly or by implication:
unless, at the time the representation is made, respondents possess and rely upon competent and reliable scientific evidence that substantiates the representation. III. IT IS FURTHER ORDERED that respondents, directly or through any partnership, corporation, subsidiary, division, trade name, or other device, including franchisees, licensees or distributors, in connection with the labeling, advertising, promotion, offering for sale, sale, or distribution of any covered product or service in or affecting commerce, shall not misrepresent, in any manner, including by means of metatags, expressly or by implication, the existence, contents, validity, results, conclusions, or interpretations of any test, study, or research. IV. Nothing in this order shall prohibit respondents from making any representation for any drug that is permitted in labeling for such product under any tentative final or final standard promulgated by the Food and Drug Administration. Nor shall it prohibit respondents from making any representation for any product that is specifically permitted in labeling for such product by regulations promulgated by the Food and Drug Administration pursuant to the Nutrition Labeling and Education Act of 1990. V. IT IS FURTHER ORDERED that:
unless respondents possess competent and reliable scientific evidence that such product is safe and produces no adverse side effects. Provided, however, that the product label requirements of this Subpart shall not apply to products that are shipped to consumers or purchasers for resale less than thirty (30) days after the date of service of this order; and, provided further, that with regard to products shipped after thirty (30) days of the date of service of this order, respondents may affix the disclosure clearly and prominently by sticker or other device on the labels of products manufactured prior to thirty (30) days after the service of this order.
unless respondents possess competent and reliable scientific evidence that such product is safe and produces no adverse side effects. Provided, however, that in the event that the Food and Drug Administration issues a final rule requiring a warning on the labeling of products containing ephedrine alkaloids, respondents may substitute that warning for the disclosures required under Parts A and B above. VI. IT IS FURTHER ORDERED that respondents, for ten (10) years after the last date of dissemination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commission for inspection and copying:
IT IS FURTHER ORDERED that respondents shall deliver a copy of this order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt of the order. Respondents shall deliver this order to current personnel within thirty (30) days after the date of service of this order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities as stated above. Respondents shall maintain and upon request make available to the Commission for inspection and copying each such signed and dated statement. VIII. IT IS FURTHER ORDERED that respondents shall notify the Commission at least thirty (30) days prior to any change with regard to Aaron Company that may affect compliance obligations arising under this order, including but not limited to its incorporation; and if incorporated, its creation, dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the business or corporate name or address. Provided, however, that, with respect to any proposed change about which respondents learn less than thirty (30) days prior to the date such action is to take place, respondents shall notify the Commission as soon as is practicable after obtaining such knowledge. IX. IT IS FURTHER ORDERED that respondents, within five (5) days of entry of this order, shall notify the Commission of (1) their residence address and mailing address; (2) their telephone number(s); (3) if applicable, the names of their employer(s) and supervisor(s); and (4) their duties and responsibilities. X. IT IS FURTHER ORDERED that respondents, for a period of ten (10) years after the date of entry of this order, shall notify the Commission of (1) any changes in their residence address, mailing address, or business address; (2) the discontinuance of their current business or employment; and (3) their affiliation with any new business or employment. Notice of changes in employment status shall include: (1) the new employer's name, address and telephone number; (2) the full names of the employer's principals; (3) if applicable, the names of respondents' supervisors; and (4) a description of the employer's activities, and respondents' duties and responsibilities. XI. IT IS FURTHER ORDERED that respondents shall, within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which respondents have complied and are complying with this order. XII. This order will terminate on July 30, 2021, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of:
Provided, further, that if such complaint is dismissed or a federal court rules that the respondents did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal. By the Commission. Benjamin I. Berman ISSUED: July 30, 2001 SEAL |