Energy Efficient Systems, Inc

Text (OCR of the scan at left; may contain errors)

ENERGY EFFICIENT SYSTEMS, INC., ET AL. 265

265 Complaint

IN THE MATTER OF

ENERGY EFFICIENT SYSTEMS, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3062. Complaint, April 9, 1981—Decision, April 9, 1981

This consent order requires, among other things, a Middletown, Conn. corporation and two corporate officers engaged in the advertising, sale and distribution of an electric space heater known as the "Boekamp Quartz Heater" to cease misrepresenting the efficiency, energy savings, performance characteristics and durability of the product. The order further prohibits respondents from making any energy-related advertising claim without reliable substantiation, and bars them from using the term "energy saver," or similar terms in product names. Additionally, respondents are required to send a copy of a prescribed letter to all individuals or business entities engaged in the sale of the Boekamp Quartz Heater advising them of the terms of the order and requesting the return of all advertisements and promotional materials which contain prohibited claims or which fail to include required disclosures.

Appearances

For the Commission: Joan Gerrity, John B. Gatlin and Douglas M. Husid.

For the respondent: Michael Steres, Feldman & Steres, San Diego, Calif., and John T. Coyne and William Barton, Carr, Jordan, Coyne & Savits, Washington, D.C.

COMPLAINT

Pursuant to the provisions of the Federal Trade Commission Act, and of the Energy Policy and Conservation Act, as amended, and by virtue of the authority vested in it by those Acts, the Federal Trade Commission, having reason to believe that Energy Efficient Systems, Inc., a corporation, and John P. White and Elaine B. Owen, individually and as officers of the corporation, hereinafter sometimes referred to collectively as respondents, have violated the provisions of the Acts, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Energy Efficient Systems, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Connecticut with its principal office

345-554 O-82--18

Complaint 97 F.T.C.

and place of business located at 330 Middle St., Middletown, Connecticut. Respondents John P. White and Elaine B. Owen are officers of the corporate respondent named herein. Together they formulate, direct and control the policies, acts and practices of the corporate respondent hereinafter set forth. Their business address is the same as that of the corporate respondent. PAR. 2. Respondents are now, and for some time last past have been, engaged in the purchasing, advertising, promotion, offering for sale, sale and distribution of a product known as the Boekamp Quartz Energy Saver Heater ("Boekamp Heater") and other products for which energy related claims are made. PAR. 3. In the course and conduct of their business, respondents now cause, and for some time last past have caused, the Boekamp Heaters to be shipped from their place of business in the State of Connecticut to purchasers throughout the United States. Respondents now disseminate or cause the dissemination of, and for some time last past have disseminated or caused the dissemination of, certain advertisements and promotional materials concerning the Boekamp Heater by use of the United States mail and have advertised the Boekamp Heater in newspapers of interstate circulation. Accordingly, respondents maintain, and have maintained, a substantial course of business, including the acts and practices as hereinafter set forth, which are in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act. PAR. 4. The advertisements and promotional materials referred to in Paragraph Three include, but are not limited to, the materials marked as Appendix A and attached hereto.

I

PAR. 5. By and through the use of the aforementioned advertisements and promotional materials, respondents have represented and are now representing, directly or by implication, that:

a. the Boekamp Heater is twice as efficient as conventional electric resistance heaters; b. the Boekamp Heater will provide two to three times as much heat as conventional electric resistance heaters of similar wattage; c. the Boekamp Heater provides "free" heat because its quartz tubes do not cool down during the Boekamp Heater's off cycle; d. the Boekamp Heater is capable of heating objects which are far away from it in a short period of time;

265 Complaint

e. the Boekamp Heater evenly distributes heat throughout a typical room; f. the quartz tubes contained in the Boekamp Heater intensify and magnify the heat generated by the electricity sent through the resistance coils enclosed in the tubes; g. the quartz tubes contained in the Boekamp Heater are durable components.

PAR. 6. In truth and in fact, contrary to respondents' representations set forth in Paragraph Five:

a. the Boekamp Heater is not twice as efficient as conventional electric resistance heaters. All electric resistance heaters produce the same number of British Thermal Units ("BTUs") of heat per watt; b. the Boekamp Heater will not provide two to three times as much heat as conventional electric resistance heaters of similar wattage; c. the quartz tubes contained in the Boekamp Heater do cool down during the Boekamp Heater's off cycle and the Boekamp Heater does not provide "free" heat for the foregoing reason or for any other reason; d. the Boekamp Heater is not capable of heating objects which are far away from it in a short period of time. The Boekamp Heater will only be able to heat objects far away from it if the Boekamp Heater has been operated for a lengthy period of time so that the air space between the Boekamp Heater and the object has itself been heated; e. the Boekamp Heater does not evenly distribute heat throughout a typical room; f. the quartz tubes contained in the Boekamp Heater do not intensify or magnify the heat generated by the electricity sent through the resistance coils enclosed in the tubes. The quartz tubes only transfer the heat generated by the resistance coils; g. the quartz tubes contained in the Boekamp Heater are not durable components. The quartz tubes are fragile elements which shatter easily on impact when the tubes are hot.

Therefore, said advertisements and promotional materials were, and are, false, deceptive, misleading or unfair.

II

PAR. 7. By and through the use of the aforementioned advertise-

Complaint 97 F.T.C.

ments and promotional materials, respondents have represented and are now representing, directly or by implication, in addition to those representations set forth in Paragraph Five, that:

(a) a typical user of a Boekamp Heater will save 50% over his/her prior home heating costs;

(b) a typical user of a Boekamp Heater will drastically reduce his/her fuel bills while maintaining personal comfort; (c) users of the Boekamp Heater report dramatic utility bill savings;

(d) a single Boekamp Heater will raise the temperature in an unheated room of typical size to a comfortable temperature in twenty minutes;

(e) when the outside temperature is 5 degrees Fahrenheit, one 1500 watt Boekamp Heater will maintain a room temperature of 72 degrees Fahrenheit under certain stated conditions; (f) the Boekamp Heater will heat a typical room more quickly than conventional electric resistance heaters; (g) the Boekamp Heater provides special comfort to arthritics and others suffering from similar ailments.

PAR. 8. At the time respondents made the representations alleged in Paragraphs Five and Seven they did not possess and rely upon a reasonable basis for such representations. Therefore, the aforementioned advertisements and promotional materials were, and are, unfair, deceptive or misleading.

PAR. 9. By and through the use of the aforementioned advertisements and promotional materials, respondents have represented and are now representing, directly or by implication, that they had a reasonable basis for the representations alleged in Paragraphs Five and Seven at the time they were made. In truth and in fact, respondents had no reasonable basis for the representations alleged in Paragraphs Five and Seven. Therefore, said advertisements and promotional materials were, and are, deceptive, misleading or unfair.

III

PAR. 10. In the course and conduct of their business, respondents have used the term "Quartz Energy Saver" to refer to the Boekamp Heater in the aforementioned advertisements and promotional materials. By and through the use of that term, respondents have represented and are now representing, directly or by implication,

ENERGY EFFICIENT SYSTEMS, INC., ET AL. 269 265 Complaint

that the Boekamp Heater consumes less electricity than other electric resistance heaters in providing the same amount of heat. PAR. 11. In truth and in fact, contrary to respondents' representation set forth in Paragraph Ten, the Boekamp Heater provides the same number of BTUs per watt as any other electric resistance heater. Therefore, the use of the term "energy saver" to refer to the Boekamp Heater was, and is, deceptive, misleading or unfair.

IV

PAR. 12. By and through the use of the aforementioned advertisements and promotional materials, respondents have represented and are now representing, directly or by implication, that the Boekamp Heater will quickly and efficiently heat a whole room. In contrast, the operating instructions for the Boekamp Heater, which are provided to consumers after they purchase a Boekamp Heater, caution users to avoid trying to heat a whole room with the Boekamp Heater. PAR. 13.

(a) The operating instruction referred to in Paragraph Twelve is a material fact in light of the representation made in advertisements and promotional materials as set forth in Paragraph Twelve. The aforementioned advertisements and promotional materials fail to disclose this material fact. Therefore, said advertisements and promotional materials were, and are, deceptive, misleading or unfair. (b) The operating instruction referred to in Paragraph Twelve is materially inconsistent with the representation made in advertisements and promotional materials as set forth in Paragraph Twelve. Therefore, said advertisements and promotional materials were, and are, deceptive, misleading or unfair.

V

PAR. 14. The Boekamp Heater is an unvented electric resistance heater which falls within the category of products defined as "unvented home heating equipment" in 10 C.F.R. 430.2 and as such is a "covered product" as that term is defined in Sections 321(a)(2) and 322 of the Energy Policy and Conservation Act, 42 U.S.C. 6291(a)(2) and 6292. PAR. 15. In the course and conduct of their business, on and after November 10, 1978, respondents have made, and continue to make, representations, directly or by implication, respecting the energy

Complaint 97 F.T.C.

consumption of the Boekamp Heater or the cost of energy consumed by the Boekamp Heater, including the representations set forth at subparagraphs (a), (b) and (c) of Paragraph Five. The aforementioned representations do not fairly disclose the results of tests conducted on the Boekamp Heater in accordance with the test procedures applicable to "unvented home heating equipment" as prescribed by the Secretary of the Department of Energy at 10 C.F.R. 430.22(g) and 10 C.F.R. Subpart B, Part 430, Appendix G. Therefore, and pursuant to 42 U.S.C. 6293(c) and 6303(c), said representations were, and are, deceptive, misleading or unfair. PAR. 16. In the course and conduct of their business, and at all times mentioned herein, respondents have been, and now are, in substantial competition in or affecting commerce with individuals, firms, and corporations engaged in the distribution and sale of space heaters and other products for which energy related claims are made. PAR. 17. The use by respondents of the aforementioned false, deceptive, misleading or unfair representations has had, and now has, the capacity and tendency to mislead members of the public into the erroneous and mistaken belief that the representations were and are true and complete, and into the purchase of substantial quantities of the Boekamp Heater by reason of this erroneous and mistaken belief. PAR. 18. The acts and practices of respondents, as herein alleged, were and are to the prejudice and injury of the public and of respondents' competitors and constituted, and now constitute, unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce in violation of Section 5 of the Federal Trade Commission Act. The acts and practices of respondents, as herein alleged, are continuing and will continue in the absence of the relief herein requested.

Complaint

Introducing a Space Heater Like You've Never Sold Before

[illegible]

Boekamp, Inc.

Boekamp, Inc.

The image has been rotated 90 degrees clockwise.The text reads: Complaint 97 F.T.C.

Quartz Energy Saver Heater

Quartz heaters are different...

Quartz heater Convection heater

Quartz heaters are different...

ENERGY EFFICIENT SYSTEMS, INC., ET AL.

Complaint

Introducing a Space Heater Like You've Never Used Before

[illegible]

Boekamp

[illegible] All models feature the exclusive Energy Controller and are fully UL Listed. Portable model features 3 prong grounded plug. Designed to help you combat the high cost of energy while providing comfort and style in localized heating... get your Boekamp Quartz Energy Saver® poster today!

USES:

Living Rooms Stables/Barns Patios Bathrooms RVs/Motorhomes Boats Workshops Family Rooms Mobile Homes Offices

Quartz Energy Saver Heater Boekamp, Inc.

San Diego, California

Available from:

© 1980 BOEKAMP INC. Printed in U.S.A. Form No. 100778

Complaint 97 F.T.C.

Boekamp... The ORIGINAL Quartz Energy Saver Heater Designed and developed to combat the high costs of energy, the U.S. made Boekamp Heater is the sensible solution to effective, efficient heating. Features: • Total personal comfort in just minutes • Deeply pleasing, infrared radiant heat • Heat projected by polished reflector — no fan or blower necessary • Localized warmth allows temperature and cost of heating rest of house to drop • Exclusive Energy Controller offers precise control of heat output and energy consumption

Easily and permanently installed, the surface mount model is ideal for keeping you warm in the garage or workshop.

This portable unit can be carried anywhere to provide body comfort in just minutes, and features a Tip-Over Safety Switch that shuts the heater off if it is knocked over.

The attractive recessed wall model adds warmth and heating efficiency to a living room, family room, bathroom or wherever you wish to install one

Quartz Heaters are Different . . .

BOEKAMP QUARTZ ENERGY SAVER® • Room is quickly warmed to an even, comfortable temperature • Heat is efficiently projected through the air to solid objects by highly polished reflector; there's no need for circulating air • Temperature difference between floor and ceiling — usually less than 10°.

• Average coil temperature — approximately 1600° • Room comfort is achieved quickly because people and objects are warmed directly • Room comfort is maintained easily because objects are heated and re-emit heat; natural air leaks have a minimal effect on comfort maintenance OLD-FASHIONED CONVECTION HEATERS • Room is slowly heated from top down because hot air rises • Heat is directed into the room by fan, or rising hot air only; the air must then heat the objects in the room • Temperature difference between floor and ceiling — usually 10° to 30° • Average coil temperature — approximately 1300° • Room comfort is achieved slowly because air must first be heated, then objects and people are heated • Room comfort is maintained inefficiently because of heat loss through the ceiling and natural air leaks throughout the room

Complaint

APPENDIX A-3

COMPARATIVE ANALYSIS

QUARTZ HEATER vs. CONVENTIONAL-TYPE HEATERS

Prepared by:

Malcolm D. Campbell Senior Staff Scientist Materials Research

Conducting tests to quantitatively compare the performances of quartz heaters versus convection-type heating is difficult because of the infinite number of possible combinations of variables. This is further complicated by the difficulty of assessing human comfort which is virtually subjective and serves only one purpose -- to provide comfort to people and hence lies the basic differences between the Quartz Energy Saver Heater and the typical convection-type electric heater

Most electric heaters circulate a small portion of the room air over the heating elements. This is accomplished with either natural convection or a fan which pulls cold air into the heater and expels hot air by convection. Convection is the vertical movement of warm air as it heats and becomes lighter and is then replaced by in-flowing cold air. It requires large heater areas to move sufficient air to produce reasonable room air circulation. Fan-driven designs are noisy, but can be more compact in size.

Both types produce a comfortable living environment by raising the temperature of the entire volume of air in the room. In the process, however, they must also heat the contents of the room. As all of the room contents are heated to be warmed, the heater continues to consume power to make up for inherent heat losses from the area.

A convection-type heater relies on the air being heated as it passes through the heater. The hot air rises, heating the ceiling. [illegible] Although objects are warmed by the circulating air, the room, in general, heats from the top down. When the air temperature just a few feet off the floor is comfortable for people, the air temperature near the ceiling of the room may be as much as 30 degrees higher. This results in a high percentage of the energy consumed being lost through ceilings and upper walls.

The quartz infra-red heater consists of a coil of special resistance wire encased in a quartz tube. The heating coil is heated to a temperature range between 1800 and 2000 degrees Fahrenheit -- a temperature that exceeds the coil temperature of a convection-type heater by as much as 1500 degrees. [illegible] the room most of the electrical energy supplied is converted into electromagnetic radiation, which is in the visible and infra-red range. [illegible] of any hot wire is the radiation [illegible] this is less than one percent of the total radiation emitted. Most of the remainder is in the "infra-red" region.

Quartz is used for several specific reasons: 1) it supports and protects the hot coil and will survive the excessive operating temperatures; 2) it is totally inert and will not deteriorate by maintaining heat loss from the coil and 3) is relatively transparent to the infra-red radiation.

The quartz elements are mounted in front of a high-efficiency reflector so that nearly all of the radiant heat generated is beamed in the desired direction. In contrast to the operation of the typical convection-type heaters, very little of the room air is heated directly. However, the radiation emitted by the quartz heater passes through the air with only minimal energy (heat) loss being absorbed. When it is in its path. When this happens, the radiation is "absorbed" and objects are heated. Those objects, in turn, emit heat.

The basic difference in mode of operation: Quartz versus Convection: accounts in several ways for the reduced cost of operating a quartz heater. First, with quartz heat, the objects in the room (including people) are heated to comfortable levels long before the room temperature would provide a comfortable environment. Thus, the quartz heater uses less energy to provide body comfort. This is a tremendous advantage in the energy savings since the instant response of the quartz heater eliminates the costly efforts of pre-heating an area to be comfortable.

Only a small amount of the energy consumed by a well-designed quartz heater results in an excessive heating of the air in the vicinity of the heater. Therefore, there is much less of a temperature difference from floor to ceiling and the resulting convection losses are considerably less. With the quartz heater being heated directly by radiant heat, the overall air temperature can be very low, which minimizes heat losses through the walls and ceilings, as well as air infiltration, and is partly responsible for the lower power consumption required to maintain the comfort level once it has been reached.

As with any heating system, quartz heaters must be properly installed and used to the full advantage of their inherent features. Since radiant heat is directional in nature, two small quartz heaters with energy saving features, to heat a large room from both directions is more efficient than one large heater. They [illegible] from windows and all other sources of great heat loss. These practices will let the reflector enhance the efficiency of the unit.

In conclusion, in a typical residential situation, advanced design quartz infrared heaters, such as those manufactured by Econo-heat, Inc., can provide satisfactory heating at one-half or less the normal operating costs of other types of electric heating. The improved established performance of the quartz heater allows the user to achieve immediate local comfort levels without the anticipated and wasteful cost of having to heat the whole house to be comfortable in just one room or area.

Complaint 97 F.T.C.

APPENDIX A-1

The ORIGINAL Bockamp Quartz Energy Saver Heater...

All Other Space Heaters Are Suddenly Old-Fashioned

The Bockamp Quartz Energy Saver Heater was invented in 1976 and patented in 1979. It was designed to heat people, not places. It is the original quartz heater and is still the best.

- It can save you money on heating bills. - It can be used in any room in your home. - It is safe to use.

- It is easy to use.

- It is lightweight and portable.

- It is maintenance free.

- It is guaranteed for one year.

The Bockamp Quartz Energy Saver Heater is the perfect heating solution for today's economy. It is the heater of the future, here today.

The Bockamp Quartz Energy Saver Heater... QUARTZ Makes the Difference!

The Bockamp Quartz Energy Saver Heater... - It can save you money on heating bills. - It can be used in any room in your home. - It is safe to use.

- It is easy to use.

- It is lightweight and portable.

- It is maintenance free.

- It is guaranteed for one year.

The Bockamp Quartz Energy Saver Heater is the perfect heating solution for today's economy. It is the heater of the future, here today.

ONE YEAR WARRANTY

ONE YEAR WARRANTY

Complaint

BASIC FACTS ON THE ROELAMP "QUARTZ ENERGY SAVER"

COSTS LESS TO OPERATE:

The Quartz Energy Saver heats objects instead of air. Every object [illegible] absorbs and puts off heat. This unique concept in heating is commonplace in Europe, but relatively new in the United States. PROVIDES INSTANT HEAT:

The Quartz Energy Saver achieves maximum heating capacity in less than one minute. This eliminates the necessity to pre-heat areas to comfort levels prior to use, thereby reducing your cost of energy. QUARTZ EFFICIENCY:

Tests have indicated the Quartz Energy Saver produces twice as much heat as conventional convection electric heating systems of similar wattage. No energy is wasted in the Quartz Energy Saver and as the [illegible] people [illegible] in room [illegible] heat to far away objects. The combination of Quartz and radiant heat has produced a Quartz Energy Saver capable of providing up to three times as much heat over conventional fan driven electric heaters. HEATING PATTERN:

The Quartz Energy Saver operates on the highest level of the infra-red spectrum, producing temperatures up to 2,000 degrees Fahrenheit within the quartz elements. The heat rays travel at the speed of light and the reflection screen at an angle of 170 degrees off the face of the heater. Radiant heat will not heat airspace, but any objects in direct line of sight will absorb greater amounts of heat. The Quartz Energy Saver is capable of radiating heat to objects 20' away. ENERGY SAVER CONTROLLER:

The Quartz Energy Saver is equipped with a controller which [illegible] cycles power to the quartz elements. The electrical input can be controlled in 13 positions from the low to high setting, permitting the flow of electrical current from 25 to 100%. This [illegible] permits the user to set there desired comfort level. Quartz elements target and work during the [illegible] energy break. Quartz [illegible] heat is provided during this [illegible] time. The Quartz Energy Saver does not energy beyond its rated amperage. The higher the controller setting, the longer the heater is on and the more heat it produces. OPERATING COST:

The Roelamp Portable model #101 Quartz Energy Saver is rated at 120 volts, 1,500 watts, 12.5 amps, and uses [illegible] per hour of operation, on the high setting. If the controller is set at half capacity, (the average room setting) it would operate at 1/2 capacity and [illegible] 750 per hour. Electricity rates vary within each region, however it costs approxim- ately 9.6 per hour to operate the Quartz Energy Saver on the high setting in [illegible]. To determine the exact operating cost in other regions of the country, check your utility company's cost per KW hour, and multiply this rate by 1.5 (1,500 watts.)

FACTS: Page 2.

HEATING AREA COVERAGE:

The Quartz Energy Saver is designed to provide a 72 degree F room temperature rise, calculated for electric heat under the following conditions: Outside temperature - 0 degrees F Inside temperature - 72 degrees F Ceiling height - 8'-0"

Exterior glass- thermopane or storm windows not exceeding 25% of exposed wall area. QUARTZ COVERAGE- 18 to 26 sq. ft. per 100 watts. Model #101 P is designed to heat approximately 360 sq. ft. under the above conditions. Many users exceed this coverage. HOW EFFECTIVE WAY TO USE THE QUARTZ ENERGY SAVER: Position the heater so that it will radiate directly to the most objects. Point away from windows and other non-absorbing items. Turn the controller on high, remove chill from room, and turn down to desired comfort level. SAFETY OF THE QUARTZ ENERGY SAVER:

Quartz Energy Savers have been extensively tested and approved for use by Underwriters Laboratory (UL). Portable models contain tip-over safety switch which turns the unit off if knocked over, and a safety thermostat to regulate the room temperature. WILL QUARTZ ENERGY SAVERS REDUCE HEATING COSTS? Yes. Quartz Energy Savers are twice as efficient as conventional electric heaters. Many users report substantial report extensive savings. Many customers that purchased an initial heater have purchased others to heat other portions of their home. Numerous customers now heat their entire home with QUARTZ ENERGY SAVERS. They are doing this because it is economical. We cannot guarantee how much money you save, we believe as high as 50% over existing home heating costs, however this is a direct function of your control over the rooms you heat, and how often you heat them. It is up to you to decide when you want to heat a specific room. It is your own control. PRODUCT GUARANTEE:

The Quartz Energy Saver is under warranty for one year from date of purchase, except for the quartz tubes or the quartz elements. It is designed for long life, with elements tested for over 9,000 heating hours. The quartz tubes are easily replaceable at a current replacement cost of $14.00 per tube. Each wall unit contains two quartz elements. SO:

Eliminate your concerns over potential fuel shortages, the high cost of installation and operation of fuel oil and natural gas, and use the QUARTZ ENERGY SAVER powered by low cost, readily available electricity. The QUARTZ ENERGY SAVER is clean, quiet and the sensible solution to efficient, effective heating.

Complaint 97 F.T.C.

To Effective and Efficient Heating.

BASIC FACTS ON QUARTZ HEATING AND ANSWERS TO QUESTIONS REGARDING IT. WHY CONSIDER QUARTZ HEATING? Conventional sources of energy (oil, electric baseboard, natural gas and firewood) are expensive. QUARTZ HEATERS are designed to provide instant heat, negating the need to extensively pre-heat areas to achieve comfort, thereby saving money for the user. QUARTZ HEATERS permit the user to heat living space only when in use.

WHO DEVELOPED QUARTZ HEAT? German scientists developed QUARTZ HEATERS ten years ago to combat Europe's high cost of energy, resulting in efficient and effective heating used extensively today.

WHAT IS THE BASIC PRINCIPLE OF QUARTZ HEATING? QUARTZ is one of four (Diamonds, rubies, charcoal and quartz) known elements in the world that produces pure radiant heat.

QUARTZ HEATERS utilize conventional electric resistance coils encased in quartz tubes to magnify and intensify heat, reflect it off a polished shield and radiate it to surrounding areas. This carefully designed combination of components produces instantaneous heat.

ARE QUARTZ HEATERS SAFE? Yes. QUARTZ HEATERS have been extensively tested and approved for use by Underwriters Laboratories (UL).

HAS QUARTZ HEATING BEEN TESTED IN THE UNITED STATES? QUARTZ HEATING has been used for residential and commercial purposes for four years in the United States with an extensive test market conducted in the Northeast during the winter of 1977-78. All users have been extremely satisfied with the results.

HOW DO QUARTZ HEATERS SAVE MONEY? QUARTZ HEATERS provide instant heat within one minute of operation, rapidly raising room temperatures to the comfort level in 20 minutes, permitting users to reduce heating levels in unoccupied rooms until their planned use.

Each model QUARTZ HEATER contains a QUARTZ ENERGY SAVER CONTROLLER which cycles the flow of energy to the heating elements to reduce power consumption.

WHERE ARE QUARTZ HEATERS MOST EFFECTIVE? In any living space. Users initially purchase QUARTZ HEATERS to solve specific heating problems in cold rooms. After initial use, they discover that QUARTZ HEAT is an economical solution to heating the entire house.

QUARTZ HEAT, for example, eliminates condensation on bathroom mirrors while showering.

HOW MANY QUARTZ HEATERS ARE REQUIRED TO EFFECTIVELY HEAT A HOUSE? This requirement varies depending on the house, its room sizes, amount of heat loss, ceiling heights, room configuration, etc [illegible] suggests 100 watts per 18 to 22 sq. ft. for planning purposes. [illegible] recommends purchasing one QUARTZ HEATER for use in your most frequently occupied room. When the QUARTZ HEATER'S effectiveness is self proven then consider purchasing additional QUARTZ HEATERS for other areas. Keep in mind, each 1200 watt heater utilizes 10 AMPS of available capacity of a typical 15 or 20 AMP circuit.

IS SERVICE READILY AVAILABLE FOR QUARTZ HEATERS? Yes. QUARTZ HEATERS are guaranteed for one year from date of purchase, but are specifically designed for a long lifespan. Replacement parts and service is available, if necessary, from

OTHER APPLICATIONS FOR QUARTZ HEATERS:

QUARTZ HEATERS are designed for effective use any place that people are cold. They should be considered for use in professional offices, restaurants, pleasure boats, mobile homes, garage workshops, laundry areas, patios, summer cottages and other areas.

ENERGY EFFICIENT SYSTEMS, INC., ET AL. 279 265 Complaint

"QUARTZ" HEATING NEW PRODUCT "Quartz Energy Saver"-

The sensible solution to effective ECONOMICAL heating. The QUARTZ ENERGY SAVER™, EUROPE'S answer to efficient heating with high cost energy is now available in the United States.

Introducing the world's only vertical QUARTZ TUBE PORTABLE heater and built-in and surface mounted wall units.

They contain:

• Built-in ENERGY SAVING CONTROLLER for selection of desired comfort level to control and minimize consumption of electricity. • Thermostatic control and safety TIP-OVER switch (portable models). • Quality in design and workmanship.

Operates at 100% capacity for 5½¢ hour (based on Hartford, CT utility rate). Designed for SAFETY, COMFORT, ECONOMY and a long lifespan. Even distribution of heat.

Total comfort achieved in one minute.

Adequate heat for any room in the house. Ideal for 1000 uses. No installation required, just plug in any wall outlet. (Wall models designed for cord or direct wiring) Effectively used, tested and proven in the Northeast. ELIMINATES NEED TO MAINTAIN CONSTANT HEAT IN LIVING AREAS UNTIL ROOM IS IN USE.

CALL FOR, NO OBLIGATION, HOME DEMONSTRATION. UL approved — Guaranteed for one year.

RECESSED MODEL #301R

SPECIFICATIONS AND COST:

| MODEL # | WATTS | VOLTS | AMPS | BTU | PRICE | | 101P | 1500 | 110 | 12.8 | 5120 | [illegible] | | 301R-120 | 1200 | 110 | 10 | 4094 | 89.95 | | 301R-240 | 1200 | 220 | 5 | 4094 | 89.95 | | 301S-120 | 1200 | 110 | 10 | 4094 | 74.95 | | 301S-240 | 1200 | 220 | [illegible] | [illegible] | [illegible] |

Exclusively distributed by

PORTABLE MODEL #101

SURFACE MOUNTED MODEL #301S

Complaint 97 F.T.C.

New Construction/Room Addition Beat The Oil Shortage with the QUARTZ ENERGY SAVER® The QUARTZ ENERGY SAVER is the sensible solution to effective, economical heating.

• For SAFETY, COMFORT, EFFICIENCY • Developed in EUROPE to cut heating costs • operates at 100% capacity for electric • ENERGY SAVING CONTROLLER for selection of desired comfort level • maximum heat in one minute • Drastically reduces fuel bills • Feel heat 10 ft. away in 3 minutes • 3000 Satisfied customers • Model 4201 will heat 240 sq. ft.

• UL Listed—one year guarantee ALSO AVAILABLE IN RECESS & PORTABLE MODELS SPECIFICATIONS:

1200 WATTS, 120V, 10 AMP 1200 WATTS, 240V, 5 AMP 4094 BTU SURFACE QUARTZ HEATER Model # 3013 1200 WATTS, 120V/240V 4094 B.T.U. 12½ AMPS RECESSED ............ $62.95 SURFACE ............ $67.95 PORTABLE ...... $78.95 ALSO IDEAL FOR COTTAGES, BOATS, MOBILE HOMES, VANS, GREENHOUSES, PORCHES, OFFICES, ETC. WRITE OR CALL FOR DEMONSTRATION ECONO HEAT OF CROMWELL P.O. Box 62, Cromwell, Ct. 635-2800 WE WILL SHIP ANYWHERE IN U.S.

374051 Econo Heat of cromwell REAL ESTATE home sect. sun, may 27 dec-43 46 proofs to 25 margo

Complaint

New Concept In Efficient Heating Reduce Home Heating Costs and be totally comfortable QUARTZ HEAT The sensible solution to effective ECONOMICAL HEATING! • For SAFETY, COMFORT, EFFICIENCY • developed in EUROPE to cut heating costs • operates at 100% capacity for $14/hr.

(maximum output based on electric rate) • ENERGY SAVING CONTROLLER for selection of desired comfort level • thermostatic control • safety TIP-OVER switch • maximum heat in one minute • NO INSTALLATION, plugs in any outlet • designed as principal heat system • will solve any heating problem • proven in NORTHEAST, winter 77-78 • UL listed one year guarantee

ECONO HEAT CROMWELL, CT 06416 P.O. BOX 63 (203) 635-2600 Please rush ___ Portable Quartz Heater(s) ☐ One Portable QUARTZ HEATER, model #101 at purchase price of $72.50 plus $2.00 shipping & handling.

Enclosed is ☐ check or ☐ money order for $____ CHARGE IT:

☐ VISA ☐ MASTER CHARGE Card # ________________ Exp. date ____/____/____ Conn. res. please add 7% sales tax Name __________________ Address ________________ City ___________________ State __________ Zip __________

PORTABLE QUARTZ HEATER Model # 101 1500 WATTS 120V $72.50 30-Day Money - Back - GUARANTEE You must be satisfied with your QUARTZ HEATER'S performance or return anytime within 30 days for prompt refund of purchase price (except shipping & handling) ECONO HEAT 33 MARGO CROMWELL, CT

345-554 O—82——19

Complaint 97 F.T.C.

NEW PRODUCT Quartz Energy Saver Reduce Heating Expense Without Sacrificing Comfort [illegible] Total Comfort in One Minute [illegible] APPENDIX A-10 [illegible]

Complaint

Portable Comfort — Anywhere [illegible]

On the Patio [illegible]

In the Bathroom [illegible]

For that favorite new Room [illegible]

Decision and Order 97 F.T.C.

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 of complaint which the Boston Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act and the Energy Policy and Conservation Act, as amended; and The respondents, their attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all jurisdictional facts set forth in the aforesaid draft of 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, 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 have violated the said Acts, and that 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 sixty (60) days, and having duly considered the comments filed thereafter by interested persons pursuant to Section 2.34 of its Rules, 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. Respondent Energy Efficient Systems, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Connecticut, with its office and principal place of business located at 330 Middle St., in the City of Middletown, State of Connecticut. Respondents John P. White and Elaine B. Owen are officers of said corporation. They formulate, direct, and control the policies, acts and practices of said corporation, and their principal office and place of business is located at the above stated address. 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.

265 Decision and Order

ORDER

I

For the purposes of this Order, each of the terms listed below, as applied to the respondents named herein, is defined as follows:

1. A competent and reliable scientific test is one in which one or more persons, qualified by professional training, education and experience, formulate and conduct a test and evaluate its results in an objective manner using testing procedures which are generally accepted in the professions to attain valid and reliable results. The test may be conducted or approved by (a) a reputable and reliable organization that conducts such tests as one of its principal functions, (b) by an agency or department of the state or federal government, or (c) persons employed or retained by respondents if they are qualified (as defined above in this paragraph) and can conduct and evaluate the test in an objective manner. 2. An energy related claim is any oral or written, general or specific, representation that, directly or by implication, describes or refers to the energy cost saving capability, energy saving capability, efficiency, conservation quality or insulating property of any product, or otherwise refers to the energy consumed or generated by any product.

II

It is ordered, That respondents, Energy Efficient Systems, Inc., a corporation, its successors and assigns, and its officers, and John P. White and Elaine B. Owen, individually and as officers of the corporate respondent, and respondents' agents, representatives and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, promotion, offering for sale, sale or distribution of the electric resistance heater now known as the Boekamp Quartz Energy Saver Heater ("Boekamp Heater"), or any other product for which an energy related claim is made, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, shall forthwith cease and desist from:

A. Representing orally or in writing, directly or by implication, including through the use of testimonials that:

(i) the Boekamp Heater is more efficient or produces more heat than other electric resistance heaters of similar wattage;

Decision and Order 97 F.T.C.

(ii) the Boekamp Heater provides "free" heat of any kind at any time; (iii) the Boekamp Heater is capable of heating objects which are far away from it in a short period of time; (iv) the Boekamp Heater evenly distributes heat throughout a typical room; (v) the quartz tubes contained in the Boekamp Heater are durable components; (vi) the quartz tubes contained in the Boekamp Heater intensify or magnify the heat generated by the electricity sent through the resistance coils enclosed in the tubes, or that the quartz tubes in any way increase the amount of heat generated by the Boekamp Heater.

B. Making any representation, orally or in writing, directly or by implication, including through the use of testimonials, which relates to the heating capabilities, energy saving potential or other performance capabilities of the Boekamp Heater or making any energy related claim for any other product unless: (1) such representation is true, and (2) at the time of making such representation, the representation is fully and completely substantiated in writing by competent and reliable scientific tests which remain available for inspection by the staff of the Federal Trade Commission for at least three (3) years following the final use of the representation. C. Making any representation, orally or in writing, directly or by implication, including through the use of testimonials, respecting the energy consumption of or the cost of energy consumed by the Boekamp Heater or any other covered product (as "covered product" is defined in Sections 321(a)(2) and 322 of the Energy Policy and Conservation Act, 42 U.S.C. 6291(a)(2) and 6292 or any amendment thereto) unless: (1) such substantiation includes tests conducted on the Boekamp Heater or other covered product in accordance with test procedures prescribed by the Secretary of the Department of Energy pursuant to Section 323 of the Energy Policy and Conservation Act, 42 U.S.C. 6293 or any amendments thereto, with complete written documentation of such tests remaining available for inspection by the staff of the Federal Trade Commission for at least three years following final use of the representation, and (2) such representation fairly discloses the results of such tests. D. Misrepresenting orally or in writing, the purpose, content, or conclusion of any test or study pertaining to the Boekamp Heater or any product for which an energy related claim is made. E. Using the term "energy saver", or any other words or phrases

ENERGY EFFICIENT SYSTEMS, INC., ET AL. 287

265 Decision and Order

of similar import or meaning, to name or designate the Boekamp Heater. F. Representing orally or in writing, directly or by implication, including through the use of testimonials, that use of the Boekamp Heater or any product for which an energy related claim is made will result in any energy savings or energy costs savings unless there is clear and conspicuous disclosure, in close conjunction with such representation, of all circumstances and conditions that must be met if the purchaser is to experience similar savings. G. Making any representation, orally or in writing, directly or by implication, including through the use of testimonials, in connection with the advertisement or promotion of the Boekamp Heater or any product for which an energy related claim is made, which is inconsistent in any material respect with any representation concerning the Boekamp Heater or other said product made, directly or by implication, in post-purchase materials supplied to the purchasers of the Boekamp Heater or other said product. H. Making any representation, orally or in writing, directly or by implication, including through the use of testimonials, regarding the durability or life span of the Boekamp Heater, including representations regarding warranties or guarantees for the Boekamp Heater, or regarding any life tests performed on the quartz tubes or resistance coils, without disclosing in close conjunction therewith, in print at least as large as the print in which the representation is made, or in an oral presentation, in speech as clear and distinct as that delivered in the rest of the presentation, that the quartz tubes are: (1) fragile unless the quartz tubes are supported or protected in such a manner that they will not break when the Boekamp Heater is tipped over, and (2) not covered by the warranty or guarantee unless the quartz tubes are covered under the warranty or guarantee. I. Representing, orally or in writing, directly or by implication, including through the use of testimonials, that the Boekamp Heater can heat or raise the temperature of a room, without disclosing in close conjunction therewith the following statement in print at least as large as the print in which the representation is made, or in an oral presentation, in speech as clear and distinct as that delivered in the rest of the presentation, with nothing to the contrary or in mitigation of this statement:

HEATING OR RAISING THE TEMPERATURE OF A ROOM IS ONLY POSSIBLE AFTER EXTENDED, CONTINUOUS USE OF THE BOEKAMP HEATER.

J. For the purpose of this Part II of the Order, when representations are made in television advertising which give rise to a required

Decision and Order 97 F.T.C.

disclosure, such disclosure must be made simultaneously in both audio and visual without any distracting sounds and with a clear background.

III

It is further ordered, That each respondent, within twenty (20) days from the date of service of this Order, send a copy of the letter attached hereto and marked as Exhibit A via first class mail to each individual, partnership, corporation or other business entity engaged in the resale or distribution of the Boekamp Heater to whom the respondents sent advertisements or promotional materials relating or referring to the Boekamp Heater which contained a representation or testimonial prohibited by this Order or omitted a disclosure required by this Order and whom respondents are able to locate. Respondents shall use their best efforts to locate all such individuals, partnerships and corporations.

IV

It is further ordered, That respondents forthwith deliver a copy of this Order to: (1) all present and future employees, agents and representatives engaged in any way in the advertising, promotion, offering for sale, sale or distribution of the Boekamp Heater or any other product for which an energy related claim is made; and (2) all present and future individuals, partnerships; corporations or other business entities to whom any of the respondents sell or distribute the Boekamp Heater or any other apparatus designed to provide heat or warmth and which are engaged in the resale or distribution of the Boekamp Heater or other said product; and that respondents secure a signed statement acknowledging receipt of the Order from each such person or entity referred to herein.

V

It is further ordered, That each individual respondent named herein promptly notify the Commission of the discontinuance of his/her present business or employment and of his/her affiliation with a new business or employment. In addition, for a period of ten (10) years from the date of service of this Order each individual respondent shall promptly notify the Commission of his/her affiliation with a new business or employment whose activities include the manufacture, purchase, advertising, promotion, offering for sale, sale or distribution of any product for which an energy related claim

ENERGY EFFICIENT SYSTEMS, INC., ET AL. 289 265 Decision and Order

is made, or of his/her affiliation with a new business or employment in which his/her duties and responsibilities involve the manufacture, purchase, advertising, promotion, offering for sale, sale, or distribution of any product for which an energy related claim is made. Such notice shall include each respondent's new business address and a statement of the nature of the business or employment in which the respondent is newly engaged, as well as a description of all duties and responsibilities in connection with the business or employment. The expiration of the notice provision of this paragraph shall not affect any other obligation arising under this Order.

VI

It is further ordered, That respondents notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent such as dissolution, assignment or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporation which may affect compliance obligations arising out of this Order.

VII

A. It is further ordered, That respondents shall maintain all records that relate to any compliance obligations arising out of this Order for a period of not less than three (3) years and shall make such records available to the staff of the Commission. B. It is further ordered, That each respondent shall within sixty (60) days after service upon them of this Order, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this Order.

Date 330 Middle Street Middletown, Connecticut 06457 (203) 635-2800

RE: Recall of Advertisements and Promotional Materials

Dear Customer:

Some time ago as the distributor for Boekamp, Inc. we distributed

Decision and Order 97 F.T.C.

to you advertisements and promotional materials concerning the Boekamp Quartz Energy Saver Heater. These materials contained a number of performance claims about the Boekamp Heater. As a result of an investigation regarding these claims by the Federal Trade Commission, we have entered into the enclosed Consent Agreement and Order.

We have agreed to recall all past advertisements and promotional materials regarding the Boekamp Heater which contain claims prohibited by the Order or which omit the disclosures required by the Order. To assure that no prohibited advertisements or promotional materials continue to be utilized, it is important that you return to us whatever advertisements and promotional materials you have received from us in the past.

Thank you for your attention.

Sincerely,

John P. White, President Energy Efficient Systems, Inc.

BOEKAMP, INC., ET AL.

Complaint

IN THE MATTER OF

BOEKAMP, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3063. Complaint, April 9, 1981—Decision, April 9, 1981

This consent order requires, among other things, a San Diego, Calif. firm and its corporate officer engaged in the manufacture, sale and distribution of an electric space heater known as the "Boekamp Quartz Heater" to cease misrepresenting the efficiency, energy savings, performance characteristics and durability of the product. Respondents are further prohibited from making any energy-related advertising claim without reliable substantiation and barred from using the term "energy saver" or similar terms in product names. The order additionally requires respondents to send a copy of a prescribed letter to all individuals or business entities engaged in the sale of the Boekamp Quartz Heater advising them of the terms of the order and requesting the return of all advertisements or promotional material which contain prohibited claims or which fail to include required disclosures.

Appearances

For the Commission: Joan Gerrity, John B. Gatlin and Douglas M. Husid.

For the respondent: Michael Steres, Feldman & Steres, San Diego, Calif., and John T. Coyne and William Barton, Carr, Jordan, Coyne & Savits, Washington, D.C.

COMPLAINT

Pursuant to the provisions of the Federal Trade Commission Act, and of the Energy Policy and Conservation Act, as amended, and by virtue of the authority vested in it by those Acts, the Federal Trade Commission, having reason to believe that Boekamp, Inc., a corporation, and Konrad Boekamp, individually and as an officer of the corporation, hereinafter sometimes referred to collectively as respondents, have violated the provisions of the Acts, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues its complaint stating its charges in that respect as follows:

PARAGRAPH 1. Respondent Boekamp, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of California with its principal office and place of business located at 8221 Arjons Drive, San Diego, California.

Respondent Konrad Boekamp is an officer of the corporate