Associated Mills, Inc

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

ASSOCIATED MILLS, INC. 5

5 Complaint

IN THE MATTER OF

ASSOCIATED MILLS, INC.

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

Docket 9169. Complaint, Oct. 24, 1983—Decision, July 23, 1985

This consent order requires the Chicago, Ill. manufacturer and seller of the Pollenex Pure Air "99" Air Cleaner/Deodorizer Model 699, among other things, to cease representing, contrary to fact, that this portable household air cleaning appliance removes most tobacco smoke and substantially all ragweed pollen and dust from the air people breathe under household conditions and that the appliance effectively filters all the air in a 14 foot × 18 foot room in less than an hour. The order also bars the firm from misrepresenting the ability of any such appliance or equipment to clean or remove any quantity of indoor air contaminants, or the conditions of use under which the appliance would remove the contaminents. Further, the company is required to possess competent and reliable evidence to support any claim relating to the performance characteristics of such appliance; and maintain written records of all materials that substantiate, contradict, or qualify performance claims.

Appearances

For the Commission: Judith Wilkenfeld, Elizabeth Toni Guarino and Reid Horowitz.

For the respondents: Robert L. Wald and Mark Schattner, Wald, Harkrader & Ross, Washington, D.C.

COMPLAINT

Pursuant to the provisions of the Federal Trade Commission Act, as amended, and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that Associated Mills, Inc., hereinafter referred to as respondent, has violated the provisions of said Act, 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 is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 111 N. Canal Street, Chicago, Illinois.

PAR. 2. Respondent is now, and at all times relevant to this com-

Complaint 106 F.T.C.

plaint has been, engaged in the manufacture and sale of a portable, electric household air cleaning appliance, the Pollenex Pure Air "99" Air Cleaner/Deodorizer Model 699 (hereinafter referred to in the complaint as "air cleaning appliance"), and other products to the public. PAR. 3. Respondent operates in various States of the United States and in the District of Columbia. Respondent's manufacture, sale and distribution of air cleaning appliances mentioned herein constitutes maintenance of a substantial course of trade in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act. PAR. 4. Respondent at all times mentioned herein has been and now is in competition with individuals, firms and corporations engaged in the sale of household air cleaning appliances and other products. PAR. 5. In the course and conduct of its business, and for the purpose of promoting the sale and distribution of household air cleaning appliances, respondent has disseminated and caused the dissemination of advertising for household air cleaning appliances in national magazines, newspapers and catalogs distributed by the mail and across state lines. Respondent has also placed air cleaning appliance advertisements with television stations having sufficient power to broadcast across state lines and into the District of Columbia. In addition, respondent has distributed by mail or other means, product brochures and other sales literature directly to consumers or to dealers for display or distribution to consumers prior to or at the time of sale. PAR. 6. Typical statements and representations in said advertisements and promotional materials, disseminated as previously described, but not necessarily inclusive thereof, are found in advertisements and promotional materials attached hereto as Exhibits A, B, C, D, E, F and G. PAR. 7. Through the use of the statements and representations referred to in Paragraph Six and other representations contained in advertisements and promotional materials not specifically set forth herein, respondent has represented, and now represents directly or by implication, the following claims: a. The air cleaning appliance eliminates tobacco smoke from the air people breathe under household living conditions. b. The air cleaning appliance cleans the air of or removes most tobacco smoke from the air people breathe under household living conditions. c. The air cleaning appliance "takes out 99% of ragweed pollen"

ASSOCIATED MILLS, INC.

Complaint

d. The air cleaning appliance removes 80% of the dust from the air people breathe under household living conditions. e. One air cleaning appliance effectively filters all the air in a 14 foot × 18 foot room in approximately 25 minutes. PAR. 8. In truth and in fact, the direct or implied representations set forth in Paragraph Seven are false, for reasons including but not limited to the following:

a. The air cleaning appliance does not eliminate, does not clean the air of and does not remove most tobacco smoke from the air people breathe under household living conditions. Independent tests, when extrapolated by generally accepted procedures to advertised room conditions, show that the air cleaning appliance optimally can remove no more than 12% of tobacco smoke from the indoor air people breathe. b. Respondent's tests and independent tests, when extrapolated by generally accepted procedures to advertised room conditions, show that the air cleaning appliance cannot remove 99% of ragweed pollen or 80% of dust from the indoor air people breathe. c. Independent tests show that the air cleaning appliance cannot effectively filter all the air in a 14 foot × 18 foot room in approximately 25 minutes or in less than an hour.

Therefore, the direct or implied representations set forth in Paragraph Seven are false and misleading. PAR. 9. Through the use of the advertisements and promotional materials referred to in Paragraph Six and other advertisements and promotional materials not specifically set forth herein, respondent has represented, directly or by implication, that it possessed and relied upon a reasonable basis for the representations set forth in Paragraph Seven at the initial dissemination of the representations and each subsequent dissemination. In truth and in fact, respondent did not possess and rely upon a reasonable basis for making such representations because, inter alia, respondent either did not conduct appropriate tests or did not properly extrapolate test results by generally accepted procedures to advertised room conditions. Therefore, respondent's representations are false and misleading. PAR. 10. The use by respondent of the aforesaid false and misleading representations, and the placement in the hands of others of the means and instrumentalities by and through which others may use the aforesaid statements and representations, have had the capacity and tendency to mislead consumers into the erroneous and mistaken belief that said representations are true and complete and to induce such persons to purchase air cleaning appliances sold by respondent by reason of said erroneous and mistaken belief.

Complaint 106 F.T.C.

PAR. 11. The aforesaid acts and practices of respondent, as herein alleged, were and are all to the prejudice and injury of the public and of respondent's competitors, and constituted and now constitute unfair and deceptive acts or practices in or affecting commerce and unfair methods of competition in violation of Section 5 of the Federal Trade Commission Act, as amended.

ASSOCIATED MILLS, INC.

Complaint EXHIBIT A Pollenex ASSOCIATED MILLS INC.

COMPANY: Associated Mills, Inc.

PRODUCT: Pollenex Pure Air "99" [illegible] COMMERCIAL TITLE: "George Burns 699 Pollen" COMMERCIAL NO.: YAPP0056 LENGTH: [illegible] WHEN I SMOKE CIGARS AT HOME MY FRIENDS NEVER OBJECT.

BECAUSE I'VE GOT A POLLENEX PURE AIR "99".

SMOKE GRABBER 6 STAGE FILTER WITH ACTIVATED CHARCOAL.

IT REMOVES SMOKE, POLLEN AND DUST... EVERYTHING BUT YOUR RELATIVES! SMOKE GOES IN HERE...

CLEAN AIR COMES OUT HERE.

AND IT'S EXTRA LARGE FILTER TAKES OUT 99% OF RAGWEED POLLEN.

THESE ARE MY FRIENDS.

THEY'RE CRAZY ABOUT MY PURE AIR "99" FROM POLLENEX.

Pollenex Super Power Pure Air 99 (LOCAL DEALER TAG)

Complaint 106 F.T.C.

EXHIBIT B

Pollenex® Air Cleaner/Deodorizer

Clears the air of smoke in minutes. Lab tests prove it!

• Tests showed that in a matter of minutes approximately 85% of the tobacco smoke in the chamber containing Pure Air "99" had dissipated.

• Filter material proven in tests over 30 years on purifiers retailing up to $400.

• Electrostatic dust and dirt trap.

Air passing through this basic filter material, consisting of thousands of interconnecting fibers, creates a highly effective natural electrostatic charge that captures and holds dust and dirt.

• Filter proven to remove dust, pollen and other impurities from the air.

• Activated charcoal proven to remove smoke and other household odors.

• Bigger filter capacity than major competitors.

• Long-lasting lemon-lime fragrance proven to freshen air.

• Use on table, counter or mount on wall.

• Two speeds of air re-circulation.

• Backed by Pollenex' name and $3,000,000 Network Prime Time TV.

• Local T.V. in top markets (over 300 GRP's per market).

• Network T.V. game shows.

Sealed tight chamber filled with tobacco smoke without Pure Air "99."

Sealed tight chamber filled with an equal amount of tobacco smoke with Pure Air "99"

in operation.

Watch for George Burns as TV spokesperson for Pure Air "99"

starting Sept. 1.

#1 Pollenex No. 1 in health care appliances.

See us at the Hardware Show, Booths M-1002, M-1101

PURE AIR '99' with the proven filter

ASSOCIATED MILLS, INC.

Complaint

EXHIBIT C

Pollenex Pure Air..99 Air Cleaner/Deodorizer

As Advertised on TV

Smoke GRABBER Exclusive 6-Stage Filter* Filters and treats air containing:

tobacco smoke, pollen, dust, household odors and gases

1 Impingement fibers intercept large airborne particles of pollen, dust and dirt.

2 Fibers are impregnated with a unique coating that holds particles in the filter material.

3 ACTIVATED CHARCOAL absorbs household gases, cooking and other tobacco smoke odors from sources.

4 ABSORBEAD™ Crystals attract even more smoke and other odors.

5 Final Filter removes sub-micron remnants of tobacco smoke and airborne pollutants.

6 Special coating on final filter provides electrostatic action that holds captured minute smoke and other particles.

Recommended for room sizes approximately 18 x 14 x 8

© 1982 Associated Mills, Inc. 111 N. Canal St., Chicago, IL 60606

*PAT. PENDING

IT REMOVES SMOKE, POLLEN AND DUST EVERYTHING BUT YOUR RELATIVES!

Smoke GRABBER • "6-Stage" Filter with Activated Charcoal • More powerful • Larger filter • Quiet setting for sleeping

Complaint 106 F.T.C.

EXHIBIT D

Pollenex Pure Air "99" TM Air Cleaner/ Deodorizer With Fragrance Control Model 699

INSTRUCTIONS AND WARRANTY © 1981 Associated Mills, Inc.

(UL)

LIMITED WARRANTY The product listed is warranted to be free from defects in material and workmanship under normal use and service for a period of 90 days from date of sale to consumer. The manufact- turer's obligation shall be limited to repairing or replacing F.O.B. Chicago, Ill. 60606, any part of the product which is defective. Such war- ranty shall not apply to defects resulting from accidents, abuse or misuse. If you must return the product for reasons of malfunction, the following action and steps are required: a. Package the product securely to protect from damage or breakage in shipment. b. Ship prepaid to Associated Mills by most convenient method. This warranty gives you specific legal rights and you may also have other rights which vary from state to state. Return of owner registra- tion card is not a condition precedent to war- ranty coverage.

ASSOCIATED MILLS, INC.

111 N. Canal, Chicago, IL 60606

POSTCARD ASSOCIATED MILLS, INC.

111 N. CANAL CHICAGO, IL 60606

PLACE STAMP HERE

ASSOCIATED MILLS, INC.

Complaint

Pollenex Pure Air "99" Air Cleaner Deodorizer OWNER REGISTRATION CARD COMPLETE AND MAIL WITHIN 10 DAYS Model 699 Other

[illegible]

HOW YOUR POLLENEX PURE AIR "99" MODEL 699 WORKS You have purchased one of the latest air filtration systems for the home or office Your Model 699 Pure Air "99" air cleaner and deodorizer is specially designed [illegible] that filters air through the unique Pollenex Stage 4 filter that helps clean and deodorize air polluted with pollen dust and tobacco smoke

EXCLUSIVE "STAGE 4" FILTERING SYSTEM 1. Unique Pollenex filtering material, written up in medical journals and proven in use for over 30 years. A natural microstatic dust and dirt trap 2. ACTIVATED CHARCOAL to remove smoke and other odors 3. ABSORBEADS* to help trap dust dirt and lint 4. Final filter for final check

HOW TO OPERATE YOUR POLLENEX PURE AIR "99"

Snap out filter on back of unit and remove from plastic wrap. Re-install filter with side latches up. Snap back in place. Do not have unit connected to electrical outlet while you are removing or replacing filter. Have switch in off position. To operate, plug cord into electric outlet, turn switch to either HI or LOW speed and your unit is in operation. Unit operates from 110 to 120 volts AC 60Hz

WHERE TO USE YOUR POLLENEX PURE AIR "99"

Use it anywhere in the home or office where you'd like to enjoy fresher air: kitchen, bath, bedroom, living room, dining room, powder room, pet areas, sick room, or private office, conference room, reception area

HOW TO GET THE MOST FROM YOUR POLLENEX PURE AIR "99"

You'll enjoy fresher, cleaner air continuously if you run unit constantly. It's built for that kind of service. Works efficiently in filtering about the same amount of air as would normally be contained in a room 14 x 14' in approximately 25 minutes. That way you're recirculating, cleaning and deodorizing air every quarter hour or so, when your unit is set on high speed. When you first turn on unit, if possible, shut doors and windows in the room. Let unit run on high speed for an extended period, about 30 minutes. That way you'll get an initial recirculation effect. Then you can open the doors and the unit will continue working effectively.

HOW TO USE THE EXCLUSIVE FRAGRANCE CONTROL Fragrance beads and their control are located in the center of the frame covering Stage 1 of the filter. Dial OFF for no scent, HI or LO for a light Citrus scent.

WHAT ABOUT THE POLLENEX "STAGE 4" FILTER? HOW LONG DOES IT LAST? IMPORTANT: If you choose to enjoy the light fragrance you will notice that it will gradually diminish. Effectiveness of filter is not diminished by absence of the odor and the filter is designed to have a long life. If the unit runs constantly, the filter will need replacement only once every two to three months. Replacement filters are available at your Pollenex Pure Air "99" dealer. If he is temporarily out of stock, write Associated Mills/Pollenex, 111 N. Canal St., Chicago, IL 60606 for the name of another nearby dealer.

HOW TO CARE FOR YOUR POLLENEX PURE AIR "99"

This unit needs no lubrication. It is engineered to give long useful service with a minimum of care. The exterior housing is made of high impact plastic. To remove dust or fingerprints, just use mild soap on a wet cloth. Use a dry cloth to wipe off excess water. Do not use harsh industrial detergents. CAUTION: Be sure to unplug unit before cleaning. Do not immerse unit in water. It will cause permanent damage to unit and could be very dangerous to you.

Associated Mills Inc. • 111 N. Canal Street • Chicago, IL 60606

Please Check 21 ARE YOU or 1 Purchaser Co purchaser 2 Gift Recipient 3 Person other than above completing card 4 [illegible] 5 [illegible] 22 Your Age 1 [illegible] 2 [illegible] 3 35-44 4 45-54 5 [illegible] 23 Your Sex 1 Male 2 Female 24 Who primarily decided to buy? 1 Myself 2 Wife 3 Both equally 25 Marital Status 1 Married 2 Single 3 [illegible] 26 Who will use? 1 Self and spouse 2 Self only 3 [illegible] 4 [illegible] 27 Purchase Recommended By 1 [illegible] 2 [illegible] 28 Became Interested in Product Through 1 Advertisement 2 Store Display 3 Store Demo 4 Word of Mouth 5 Mailing 6 [illegible] 7 [illegible] 43 For what MAIN Purpose was Product Purchased? Check only one A Help allergies B Help asthma C Help emphysema D Help sinus E Help colds F Help smoke odor G Help cooking odors H Help pet odors I Help musty odors J Help [illegible] K [illegible]

Complaint EXHIBIT E For people who care about the air they breathe: Millions of people in millions of homes and offices would love to breathe fresher air instead of air contaminated with irritating pollutants like pollen and dust, tobacco smoke, cooking and other household odors.

Over 35 million people are bothered by pollen in the air.

Dust is a common household problem Cooking and other [illegible] are most obnoxious [illegible] adults don't smoke Many find breathing in smoke offensive Pollenex Pure Air "99"

AIR CLEANER & DEODORIZER Model 699 2 Speeds Helps keep air fresh and fragrant.

Like having a lemon-lime tree in your room.

Leaves behind a light lemon-lime fragrance as it recirculates air in the room Pollenex—The name that stands for air filtering for 30 years.

ASSOCIATED MILLS, INC.

Complaint

NEW Pollenex Pure Air "99"

AIR CLEANER & DEODORIZER

Helps filter and treat air containing pollen, dust, tobacco smoke, kitchen and other odors.

Freshens air with a lemon-lime fragrance.

Model 699 2 Speeds

NEW! EXCLUSIVE POLLENEX FILTERING SYSTEM

AIR IS RECIRCULATED THROUGH Exclusive Pollenex filter with activated charcoal for air cleaning and deodorizing. Filter material proven in tests over 30 years on Pollenex air filters. Crystal particles saturated with a lemonlime fragrance to freshen air. Final filter before air is recirculated to room.

[illegible]

Complaint 106 F.T.C.

EXHIBIT F

POLLENEX....PROFIT EDITION Booming Sales Predicted for Indoor Air Cleaner

Over 102,000,000 Americans are Bothered by tobacco smoke The trend toward non smokers has been increasing rapidly over recent years. Moreover, those who find being subjected to tobacco smoke offensive, are increasing substantially in number.

The Pure Air "99" is ideal for homes and offices that are subjected to tobacco smokers and where treatment of air containing tobacco smoke is desirable for a variety of reasons.

Pollenex* has over 30 years experience in Air Filtering Systems Pollenex* has been a pioneer in the field of indoor air filtering, for more than three decades. The basic Pollenex* filtering material has been tested in use in air filtering machines retailing for as much as $400.00 The Pollenex* Pure Air "99" Model 999 is the culmination of all that testing, plus modern technological advances in the engineering of air cleaning and deodorizing systems.

You can't find a more advanced design piece of equipment for the money.

New way to deal with household odors without chemical sprays Homes collect odors like they collect dust. Chemical sprays that mask them are not only expensive but not the most desirable way to eliminate odors.

With homes tightly sealed today, to save energy costs, cooking odors, bathroom odors, pet odors, tobacco odors and all kinds of household odors are offensive and embarrassing.

Now Pure Air "99"

helps fight odors, as it filters air with the unique Pollenex "Stage 1" Filtering System. As it recirculates and helps clean and deodorize air, it leaves behind a refreshing lemonlime fragrance.

Over 23,000,000 people are bothered by Pollen in the air The new Pure Air "99"

helps filter out pollen. Independent Laboratory Testing show over 99% of effectiveness of removal of Giant Ragweed Pollen in air that passes through the Pollenex filter.

Moreover, the Pollenex filter in independent testing shows 98% effectiveness in removing fine dust particles that pass through the filter.

Those who care about the air they breathe, will find life pleasanter in an environment of fresher, cleaner air. Pure Air "99"

is a product the whole family will appreciate.

[illegible]

Pollenex Pure Air "99"™ Air Cleaner/Deodorizer

Complaint

Pollenex Pure Air "99"™ Air Cleaner/Deodorizer

Model 699 2 Speeds

NEW! Exclusive "Stage 4"™ Filtering System

Freshens air with a lemon-lime fragrance

① Exclusive Pollenex® filtering material. ② Treated with activated charcoal.

③ PA99™ crystals saturated with lemonlime fragrance.

④ Final filter for final air check.

A specially designed fan forces air through a 4-way air filtration system, helps clean and deodorize air polluted with pollen, dust, tobacco smoke, cooking odors, pet odors and other pollutants. Filters about the same amount of air as would normally be contained in a room 12' X 9' in approximately 15 minutes and it leaves behind a light lemonlime fragrance.

© 1981 Associated Mills Inc 111 N Canal Street Chicago IL 60606

Complaint 106 F.T.C.

Pollenex Pure Air "99"

Air Cleaner/Deodorizer

Filters and treats air containing:

Tobacco Smoke Pollen Use on counter or table Hang on wall

Enjoy all the benefits of fresher air in any room. Kitchen or Bathroom Family Room or Living Room Bedroom Office or Conference Room

Complaint

Pollenex® gives you the product, the package, and all the point-of-sale material you need to build a big booming business.

Dynamic Packaging 4-color graphics with full explanation of product, its features and benefits and where it can be used.

ramatic Counter Display Jompact, contemporary design. Made of durable plastic. Motivating selling message. Can be used with unit connected or disconnected.

Replacement Filter Display For continuous plus sales.

Filters need replacing every two to three months.

PRIME TIME NETWORK T.V. AND MORE! The biggest advertising program ever put behind an air cleaner/deodorizer.

Magazine Ads Big space, highly informative, in-depth sell ads in top magazines, reaching the best potential customers.

The New York Times Chicago Tribune Los Angeles Times Dallas Times Herald The Miami Herald

ork T.V.

million dollars in network television ing a select group of top T.V. shows for Fall 1981.

Network Game Shows Targeted to the best potential market for air cleaners.

Local Market Spot T.V.

High impact, memorable spots with local dealer names in hundreds of T.V. markets.

National Publicity Programs All over America, in all media, people will be hearing about the amazing new Pollenex® Pure Air "99"

Complaint 106 F.T.C.

EXHIBIT G

Pollenex "Pure Air 99"

Air Purifier Reg. 34.95, sale 23.99 less $4 manufacturer's rebate

Unique "smoke grabber"

filter eliminates odors, and smoke from the air.

Six stage filtering system with activated charcoal has 2 continuous speeds.

Extra filters are 5.99 each.

ASSOCIATED MILLS, INC. 21 5 Decision and Order

DECISION AND ORDER

The Commission having heretofore issued its complaint charging the respondent named in the caption hereof with violation of Section 5 of the Federal Trade Commission Act, as amended, and the respond-ent having been served with a copy of that complaint, together with a proposed form of order; and The respondent, its attorneys, and counsel for the Commission hav-ing thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondent that the law has been violated as alleged in such com-plaint, and waivers and other provisions as required by the Commis-sion's Rules; and The Secretary of the Commission having thereafter withdrawn this matter from adjudication in accordance with Section 3.25(c) of its Rules; and The Commission having considered the matter and having there-upon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 3.25(f) of its Rules, the Commission hereby makes the following jurisdictional findings and enters the following order: 1. Respondent Associated Mills, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Illinois, with its office and principal place of business located at 111 N. Canal Street, Chicago, Illinois. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ORDER

For purposes of this order, the following definitions apply: 1. The terms air cleaning appliance or equipment and appliance or equipment mean portable household electric cord connected room air cleaners (excluding ashtrays), defined more specifically as machines that (a) operate with an electrical source of power and contain a motor and fan for drawing air through a filter(s); (b) incorporate electrically charged plates in addition to a fan with a filter(s); (c) incorporate a negative ion generator in addition to a fan with a filter(s); or (d) incorporate a negative ion generator only.

Decision and Order 106 F.T.C.

2. The term indoor air contaminants refers to one or more contaminants including, but not limited to, tobacco smoke, household dust, pollen, or other forms of indoor air pollution. 3. The term performance characteristics means:

a. the power, strength or capacity of the appliance or equipment whether expressed in terms of volume of air circulated or in terms of room sizes or otherwise;

b. the cleaning, filtration, or removal ability or speed of operation of the appliance or equipment whether expressed generally or in terms of a specific contaminant, in terms of the filtering media or mechanism, or in terms of the appliance itself.

PART I

It is ordered, That respondent Associated Mills, Inc., a corporation, its successors and assigns, and its officers, agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of the Pollenex Pure Air "99" Air Cleaner/Deodorizer Model 699 in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

A. Representing, directly or by implication, contrary to fact, that the Pollenex Pure Air "99" Air Cleaner/Deodorizer Model 699 cleans the air of most or removes most tobacco smoke from the air people breathe under household living conditions. B. Representing, directly or by implication, contrary to fact, that the Pollenex Pure Air "99" Air Cleaner/Deodorizer Model 699 removes substantially all ragweed pollen or dust from the air people breathe under household living conditions. C. Representing, directly or by implication, contrary to fact, that the Pollenex Pure Air "99" Air Cleaner/Deodorizer Model 699 effectively filters all the air in a 14 foot × 18 foot room in less than an hour.

PART II

It is further ordered, That respondent, its successors and assigns, and its officers, agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of the Pollenex Pure Air "99" Air Cleaner/Deodorizer Model 699 or any other air cleaning appliance or equipment, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do

Decision and Order

A. Misrepresenting in any manner, directly or by implication, the ability of any such appliance or equipment to clean or remove indoor air contaminants. B. Misrepresenting in any manner, directly or by implication, the ability of any such appliance or equipment to clean or remove any quantity of indoor air contaminants. C. Misrepresenting in any manner, directly or by implication, the conditions of use under which any such appliance or equipment will clean or remove indoor air contaminants. D. Misrepresenting in any manner, directly or by implication, the ability of any such appliance or equipment to clean air or remove indoor air contaminants from enclosures or rooms of any specified size or within any specified period of time.

PART III

It is further ordered, That respondent, its successors and assigns, and its officers, agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of the Pollenex Pure Air "99" Air Cleaner/Deodorizer Model 699 or any other air cleaning appliance or equipment, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

A. Representing, directly or by implication, the performance characteristics of any such appliance or equipment unless respondent possesses and relies upon a reasonable basis for such representation. A reasonable basis shall consist of competent and reliable evidence which substantiates such representation. To the extent the evidence of a reasonable basis consists of scientific or professional tests, experiments, analyses, research, studies or other evidence based on the expertise of professionals in the relevant area, such evidence shall be "competent and reliable" only if those tests, experiments, analyses, research, studies, or other evidence are conducted and evaluted in an objective manner by persons qualified to do so, using procedures generally accepted in the profession or science to yield accurate and reliable results. B. Representing, directly or by implication, that any air cleaning appliance or equipment will perform under household living conditions, unless respondent possesses and relies upon competent and reliable scientific tests, experiments, analyses, research or studies which either relate to those conditions or which have been extrapolated by generally accepted procedures to those conditions.

Decision and Order 106 F.T.C.

PART IV

It is further ordered, That respondent, its successors and assigns, and its officers, agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of any air cleaning appliance or equipment, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, shall maintain written records:

1. Of all materials relied upon in making any claim or representation covered by this order; 2. Of all test reports, studies, surveys or demonstrations in its possession that materially contradict, qualify, or call into question the basis upon which respondent relied at the time of the initial dissemination and each continuing or successive dissemination of any claim or representation covered by this order.

Such records shall be retained by respondent for a period of three years from the date respondent's advertisements, sales materials, promotional materials or post purchase materials making such claim or representation were last disseminated. Such records shall be made available to the Commission staff for inspection upon reasonable notice.

PART V

It is further ordered, That respondent shall forthwith distribute a copy of this order to each of its operating divisions and to each of its officers, agents, representatives or employees engaged in the preparation and placement of advertisements or other sales materials.

PART VI

It is further ordered, That respondent shall notify the Commission at least thirty (30) days prior to the effective date of 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.

PART VII

It is further ordered, That respondent shall, within sixty (60) days after this order becomes final, file with the Commission a report in writing, setting forth in detail the manner and form in which it has complied with the order.

25 Complaint

IN THE MATTER OF

HAWAII DENTAL SERVICE CORPORATION

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

Docket C-3158. Complaint, July 26, 1985—Decision, July 26, 1985

This consent order requires the Hawaii Dental Service Corporation ("HDS"), an organization engaged in the administration and operation of pre-paid dental care programs whose dentist members provide dental care service for a fee, among other things, to cease basing its decision to send dentists to the counties of Maui, Kauai, and Hawaii, on the approval or consent of member dentists who reside in those counties. The order bars the organization from denying membership to any dentist licensed to practice in Hawaii, based in whole or in part on the approval of other dentists in the geographic location of the dentist's proposed practice, and from inducing, encouraging, or assisting any dentist or other nongovernmental organization to take any of the prohibited actions. Within thirty days from the effective date of the order, HDS is required to remove from its constitution and bylaws or other guidelines, any provision, interpretation or policy statement that is inconsistent with the order and publish in its newsletter and another publication, a notice of such removal.

Appearances

For the Commission: Erika Woodinski and Ralph E. Stone.

For the respondents: Wesley Ishikawa, Honolulu, Hawaii.

COMPLAINT

Pursuant to the provisions of the Federal Trade Commission Act (15 U.S.C. 41 et seq.), and by virtue of the authority vested in it by said Act, the Federal Trade Commission, having reason to believe that the named respondent has violated the provisions of Section 5 of the Federal Trade Commission Act and that a proceeding by it in respect thereof would be in the public interest, hereby issues this Complaint, stating its charges as follows:

PARAGRAPH 1. Respondent Hawaii Dental Service Corporation ("HDS") is a dental service corporation formed pursuant to the laws of the State of Hawaii with its mailing address at 700 Bishop Street, Suite 700, Honolulu, Hawaii. HDS is engaged in the business of the administration and operation of prepaid dental care programs. PAR. 2. Members of HDS are engaged in the business of providing dental care services for a fee. Except to the extent that competition