New Medical Techniques, Inc

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

NEW MEDICAL TECHNIQUES, INC. 125

125 Complaint

IN THE MATTER OF

NEW MEDICAL TECHNIQUES, INC.

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

Docket C-3220. Complaint, Nov. 18, 1987—Decision, Nov. 18, 1987

This consent order prohibits, among other things, a Mystic, Connecticut manufacturer and distributor of countertop water distillers from misrepresenting that the devices are approved or endorsed by any person or organization and from making false and unsubstantiated claims concerning their ability to remove contaminants and impurities from water. Respondent is required, for three years, to maintain the material to substantiate their claims.

Appearances

For the Commission: Joel Winston.

For the respondents: Richard S. Pastore, Albert, Pastore & Ward, Greenwich, Conn.

COMPLAINT

The Federal Trade Commission, having reason to believe that New Medical Techniques, Inc., a corporation ("NMT" or "respondent"), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, alleges:

PARAGRAPH 1. NMT is a Connecticut corporation, with its offices and principal place of business in Mystic, Connecticut, and its mailing address at Post Office Box 429, Broadway Extension, Mystic, Connecticut.

PAR. 2. Respondent has advertised, offered for sale, sold and distributed water distillers and water distiller accessories, including the Aquaspring Home Water Distiller models 1.5, 4, and 5 ("Aquaspring"). These distillers are designed to remove contaminants from water through the process of boiling and recondensing the water.

PAR. 3. The acts or practices of respondent alleged in this complaint have been in or affecting commerce.

PAR. 4. Typical of respondent's advertisements and promotional materials for Aquaspring, but not necessarily all-inclusive thereof, are the promotional materials attached hereto as Exhibits A, B, C, D

Complaint 110 F.T.C.

and E. The aforesaid advertisements and promotional materials contain the following statements:

(a) "[D]istilled water is pure water—no chemicals or bacteria. Nothing but water can be found in distilled water." (EX. A) (b) "Only distillation will remove EVERYTHING from water." (EX. A) (c) "The distillation process boils the source water, collects the resulting steam, cools and condenses it back into water. Bacteria and germs are immediately killed by the heat of the steam. Salts, sulphur, arsenic, mercury, chlorine and other chemical impurities do not boil at the same temperature as water. They do not, therefore, become steam, and do not travel into the cooling, condensing apparatus of the distiller. These impurities are thus left behind in the boiler with only PURE WATER delivered from the distiller's condenser unit." (EX. A) (d) "Municipal water supplies are not safe. Recent studies have shown that chlorine, a chemical put into all public water supplies, reacts with organic matter to form chloroform. Chloroform is a known carcinogen. The United States Environmental Protection Agency recognizes the danger of chloroform in our public water supplies and soon will force the water companies to do something about it. Unfortunately, years will pass before all chloroform is out of our water." (EX. A) (e) "The United States Health Service, after testing our products, recommended them to their various clinics. Also, again after thorough testing, Duke Medical Center recommends our products." (EX. A) (f) "Distilled Water—(Boiling and vaporizing) removes bacteria, minerals and chemicals. Absolutely Pure Water." (EX. B) (g) "Why should you take chances? You don't have to be a doctor or a well-educated person to understand that with these chemicals and pollutants in our water, it is foolish to take chances when it is so inexpensive to remove them through distillation, NATURE'S WAY OF PURIFYING WATER." [emphasis in original] (EX. C) (h) "Aquaspring 5 the new Stainless home water distiller, removes objectionable impurities from drinking water." (EX. D) (i) "Safe * Pure * Water" (EX. D AND E) (j) "The Aquaspring 1.5 converts tap water—even sea water—to safe pure distilled water which far exceeds drinking water standards as established by the Environmental Protection Agency." (EX. E) (k) "Distillation is the only truly effective way to eliminate dangerous bacteria, viruses, dirt, salt, rust, chlorine and other chemicals and minerals. Other methods of water purification remove some of the contaminants, but only distillation can eliminate all impurities. At a time when our nation's water supplies are so badly polluted it makes good sense to drink distilled water." (EX. E)

PAR. 5. Through the use of the statements referred to in paragraph four (a) through (k) and others in advertisements and promotional materials not specifically set forth herein, respondent has represented, directly or by implication, that:

(a) Aquaspring will remove all impurities or contaminants from water. (b) Aquaspring will remove all chemical impurities or contaminants from water. (c) Aquaspring will remove chloroform from water.

NEW MEDICAL TECHNIQUES, INC. 127

125 Complaint

(d) Consumers who use Aquaspring will be protected from all diseases or conditions caused by hazardous water-borne impurities or contaminants.

(e) Aquaspring has been tested, approved and endorsed by the Public Health Service office of the United States Department of Health and Human Services and by the Duke University Medical Center. PAR. 6. In truth and in fact, (a) Aquaspring will not remove all impurities or contaminants from water, because it will not remove volatile organic chemicals from water.

(b) Aquaspring will not remove all chemical impurities or contaminants from water, because it will not remove volatile organic chemicals from water.

(c) Aquaspring will not remove chloroform, a volatile organic chemical, from water.

(d) Consumers who use Aquaspring will not be protected from all diseases or conditions caused by hazardous waterborne impurities or contaminants, because Aquaspring will not remove toxic and potentially carcinogenic volatile organic chemicals from water. (e) Aquaspring has not been tested, approved and endorsed by the Public Health Service office of the United States Department of Health and Human Services or by the Duke University Medical Center.

Therefore, the representations as set forth in paragraph five were and are false and misleading.

PAR. 7. Through the use of the statements and representations set forth in paragraphs four and five and others not specifically set forth herein, respondent has represented, directly or by implication, that, at the time it made the representations, respondent possessed and relied upon a reasonable basis for such representations. PAR. 8. In truth and in fact, at the time respondent made said representations, respondent did not possess and rely upon a reasonable basis for such representations. Therefore, respondent's representations as set forth in paragraph seven were and are false and misleading.

PAR. 9. In the advertising and sale of Aquaspring, respondent has failed to disclose to consumers that Aquaspring does not remove from water volatile organic chemicals, which are potentially hazardous to health. This fact would be material to consumers in their decisions on whether to purchase or how to use Aquaspring. The failure to disclose this fact, in light of the representations made as alleged in paragraph five, is a deceptive practice.

PAR. 10. The acts and practices of respondent as alleged in this

Complaint 110 F.T.C.

complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5 (a) of the Federal Trade Commission Act.

NEW MEDICAL TECHNIQUES, INC. 129 125 Complaint

EXHIBIT A

"YOUR INSTANT SOLUTION TO WATER POLLUTION"©

Aquaspring® Model 1-S, Weighs only 16 pounds.

9½" square at base. 110 volt.

NEW MODEL 4 FEATURES:

CUT OFF SWITCH HEAVIER MOTOR BRACKETS FIRE RETARDANT SHROUD THREE-WIRE CORD

Aquaspring® Model 4:

110 volt, 60 cycles, 720 watts. Capacity: 4 gal. per day. Height: 16½"; Base: 9½" sq.; Weight: 11 pounds.

* New Aquaspring® Model #5 High Speed Stainless Steel Water Distiller - meets larger requirements. Weighs only 12 lbs., 110 Volt, 9½" square at base.

* Available 1984

Note: New Medical Techniques' distillers come with a pyrex boiler. Stainless steel is optional. * Trademark of New Medical Techniques, Inc. Covered by U.S. and foreign patents.

ONE YEAR WARRANTY Copyright 1978 by New Medical Tech 100017 Box 29, Mystic, Connecticut

100010

One of the dirtiest words in the world . . .

WATER

Complaint 110 F.T.C.

Q Is distilled water good for you? A Yes, distilled water is pure water — no chemicals or bacteria. Nothing but water can be found in distilled water. Our bodies need water, they do not need the chemicals which can be found in our adulterated tap water.

Q Who are the largest users of distilled water for drinking purposes? A Well, the entire United States Navy drinks distilled water when aboard ship. On every naval ship there is a distillation unit which converts sea water into distilled water. The principle of this distillation is exactly the same as with our products, the Aquaspring® water purifier — distillers. Patients on sodium restricted diets are advised to drink only distilled water. The United States Health Service, after testing our products, recommended them to their various clinics. Also, again after thorough testing, Duke Medical Center recommends our products. The United States Air Force, after thorough testing in Turkey, approved our products.

Q Is there any other way of obtaining distilled water besides buying your products? A Yes, you can buy distilled water in supermarkets and drug stores at prices ranging from $1.10 to $2.00 a gallon. Making your own distilled water with one of our units is much less expensive — you need only pay for the water. 100C11

Q Are there any other advantages to using Aquaspring® products rather than bottled water? A Yes, in addition to the tremendous yearly savings in money, you have the following advantages: 1. Source of supply. You know that since you make it right in your own home, it is really distilled water and pure. On the other hand, the Federal Trade Commission has found many instances of mislabeling where it is stated their product is "to be used for distilled water purposes" and yet in the small print it acknowledges it was not distilled water. 2. Another advantage is the well designed 1/2 gallon receiving and storage bottle which is ideal for pouring and storing.

Q Is distillation the only method of getting pure water? A Yes, filters, reverse osmosis, electrodialysis, and ultraviolet rays will not give you pure water. Only distillation will remove EVERYTHING from water.

Q Does distillation remove (take out) mercury, arsenic, sulphur, salt, chlorine, and all mineral impurities? A Yes.

Q Does a filter take out any of these mineral impurities? A No.

100C12

NEW MEDICAL TECHNIQUES, INC. 131 125 Complaint

Q Is spring or mineral water pure A water? No. It is merely taken out of a spring, tap or well?

Q Why is distilled water so pure? A The distillation process boils the source water, collects the resulting steam, cools and condenses it back into water. Bacteria and germs are immediately killed by the heat of the steam. Salts, sulphur, arsenic, mercury, chlorine and other chemical impurities do not boil at the same temperature as the water. They do not, therefore, become steam, and do not travel into the cooling, condensing apparatus of the distiller. These impurities are thus left behind in the boiler with only PURE WATER delivered from the distiller's condenser unit.

Q Is distilled water tasteless? A Yes, all pure water is tasteless. Distilled water served cold, is acknowledged to be delicious.

Q What should distilled water be A used for? Mainly for drinking and cooking.

The supply of distilled water from an AQUASPRING® is ample for a family of 3 or 4 for drinking and cooking. The larger size unit will take care of families up to 8 to 12.

100013

Q A friend told me that distilled A water is great to cook with. Why is that? As distilled water adds no foreign substances to your food, the original tastes and flavors of your foods are preserved. If you ever wonder why someone else's food always tastes better than yours, chances are they use a better water than you do.

Q Is distilled water the best base for A mixing powdered milk, Tang, Instant coffee, tea, and dehydrated soups? It most certainly is. S.S. Project HOPE uses a large distillation unit, converting sea water to pure distilled water, which is then mixed with powdered milk and cooled and makes a delicious drink of which they have dispensed millions of quarts.

Q The food did taste much better A when I was young; could it be because we got our water from a well? Could be, but well water can be dangerous, especially when the well is located on a small plot where it is almost impossible to keep the seepage from the cesspool or septic tank out of the well.

Q What is being done about such con- A tamination? Almost nothing. A great many persons have stated that the only way we are going to start purifying the water will be in the American home. It took a long time to inform the public about distillation, what it was, how easy our products are to operate, and how economical they are.

Q Can you get seriously ill from A drinking contaminated water? Yes. Many doctors have written, giving evidence that water, contaminated with human excrement, caused the cholera epidemics which were prevalent in many areas of the earth. These

100014

Complaint 110 F.T.C.

same conditions exist today and the cholera epidemics are spreading.

Q Could such an epidemic happen in this country? A Yes. The U.S. Public Health Service has been trying to shock the apathy and complacency of the American public by this dangerous fact. There are many areas where water not only contains poisonous minerals such as arsenic and mercury, but also has human excrement.

Q Just how safe are our municipal water supplies? A Municipal water supplies are not safe. Recent studies have shown that chlorine, a chemical put into all public water supplies, reacts with organic matter to form chloroform. Chloroform is a known carcinogen. The United States Environmental Protection Agency recognizes the danger of chloroform in our public water supplies and will soon force the water companies to do something about it. Unfortunately, years will pass before all chloroform is out of our water.

Q Can water be clear and still contaminated? A Yes. For example, in Suffolk County, Long Island, there is a prevalence of both detergents and cesspool seepage and the water still is fairly clear.

Q How long will it take to correct water pollution in the United States? A Some people say it will take 10 years, others say 100 years. It is anybody's guess. The facts are the U.S. Public Health Service reports show that practically every river and lake in the United States is contaminated, some having very dangerous pollution. 100015

Distilled Water • Drink it.

• Cook with it.

• It makes great ice cubes.

• Mix baby's formula with it.

• Use it in your iron, • your car battery, • and your humidifier, they will all last longer and work better. • Use it to make coffee • or tea you will love.

• Soups, juices and • prepared foods taste best when made with it. • When you travel abroad, bring your distiller and never worry about native water again. • Shampoo with it, • your hair will shine.

• Use it when washing • delicate fabrics.

• Buy an Aquaspring® today.

100016

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EXHIBIT B

Aquaspring® N.M.T., INC. Mystic, CT 06355 ________________________________________________________________________________ Qty. Item Price ________________________________________________________________________________ Aquaspring—Model 3 With Two Faucet Adapters and Two Receptacle Basins ..................................... 114.90

Aquaspring—Model 4 With Faucet Adapter and Two Receptacle Basins ..................................... 124.90

Aquaspring—Model 5 Four Receptacle Basins Plus Faucet Adapter ........................................... 137.50

Replacement Cartridge For Models 3, 4, 5 ............................................ 39.95

Aquaspring Portable Deionizer for All Aquaspring Distillers .................................................... 125.00

Stainless Steel Boiler for All Aquaspring Distillers .................................................... 125.00

Boiler Cleaning Compound—1 oz.

Packet ........................................................ 1.75

Cartridge, 1 only (Model 3) ..................................................... 39.95

Scale Oil Cleaner (8 oz. bottle) ................................................ 11.50

Quart Container of Cleaner .................................................... 35.00

* Prices include postage on orders in U.S.A.

** For orders outside U.S.A.

add $1.75 shipping and 10% Service Tax Check or Money Order required No C.O.D. orders SHIP TO: ...................................................... NAME ......................................................... ADDRESS ...................................................... CITY ..................... STATE ......... ZIP CODE .......... Price subject to change without notice.

________________________________________________________________________________

DO YOU KNOW ABOUT WATER?

Boiling water removes bacteria, but not minerals or chemicals.

Distilling water (distillation) removes undesirable chemicals, heavy metals, and bacteria, minerals, or chemicals.

Distilled Water (boiling and vaporizing) removes bacteria, minerals and chemicals.

Absolutely Pure Water.

N.M.T. Inc.

P.O. Box 125 Mystic, Connecticut 06355

Average Parameter Before After Aquaspring Distiller Ammonia ............................ 4.8 Less than 0.5 Arsenic ............................ 0.1 Less than 0.01 Barium ............................. 0.1 Less than 0.1 Cadmium ............................ 0.01 Less than 0.01 Chloride ........................... 0.1 Less than 0.1 Chromium ........................... 0.1 Less than 0.01 Copper ............................. 0.1 Less than 0.1 Fluoride ........................... 0.1 Less than 0.1 Iron ............................... 0.3 Less than 0.1 Lead ............................... 0.1 Less than 0.05 Magnesium .......................... 0.1 Less than 0.1 Manganese .......................... 0.1 Less than 0.1 Mercury ............................ 0.01 Less than 0.01 Nitrate ............................ 0.1 Less than 0.1 Potassium .......................... 0.1 Less than 0.1 Selenium ........................... 0.01 Less than 0.01 Silver ............................. 0.1 Less than 0.1 Sulfate ............................ 20.0 Less than 0.4 Total Phosphorus ................... 0.1 Less than 0.1 Zinc ............................... 0.1 Less than 0.1

USE SCALE OFF CLEANER on a regular basis. It contains an inhibitor that protects against corrosion.

UNPLUG THE DISTILLER AFTER EACH CYCLE.

NEVER ADD WATER TO THE RESIDUE.

Rinse out boiler, start with

Aquaspring® Home Water Distiller

[Image of distiller] New Aquaspring® Model 5 High Speed Stainless Steel Distiller. Makes 10 Gallons in 24 hours.

Requires no plumbing.

Only 10" x 20" x 20"

square at base.

[Image of distiller] Aquaspring® Model 4 Compact. 10" x 14" x 20"

high. 10" x 20" base.

Makes 7 gallons in 24 hours.

[Image of distiller] Aquaspring® Model 3:

12" x 12" x 20" high.

Water Capacity: 10 to 12 gallons per day.

Weight: 18 lbs.

Shipping Weight: 25 lbs.

ONE YEAR WARRANTY 100019

Aquaspring® Model 3:

12" x 12" x 20" high.

Water Capacity: 10 to 12 gallons per day.

Weight: 18 lbs.

Shipping Weight: 25 lbs.

100020

100021

Complaint 100018

Aquaspring® "YOUR INSTANT SOLUTION TO WATER POLLUTION"®

MODEL 4 & 5 FEATURES • CUT OFF SWITCH • HEAVIER MOTOR BRACKETS • FIRE RETARDANT SHROUD • THREE WIRE CORD

OTHER FEATURES • EPA NUMBER 48932-CT-01 • PLASTIC F.D.A. APPROVED • ALUMINUM PARTS ANODIZED (Includes container) • PORCELAIN ENAMEL "Pumps water"

• COMPACT—FITS ON COUNTER • COMPLETELY ASSEMBLED • TOTALLY AUTOMATIC • QUIET LONG LIFE MOTOR • QUALITY CONSTRUCTION • ONE YEAR WARRANTY (Pro-rated) • FAST (2 to 3 hrs. per cycle) • Makes 1½ to 4 g.p.h.

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• • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • • •

NEW MEDICAL TECHNIQUES, INC. 135 Complaint

EXHIBIT C

NEW MEDICAL TECHNIQUES, INC.

MASONS ISLAND ROAD • MYSTIC • CONNECTICUT 06355 • 203-536-4001

AQUASPRING - YOUR INSTANT SOLUTION TO WATER POLLUTION™

TEN COMMON SENSE REASONS WHY YOU SHOULD DRINK DISTILLED WATER

1. There are 12 thousand chemicals on the market today, 500 being added yearly. Regardless of where you live, in the city or on the farm, some of these chemicals could be getting into your drinking water.

2. Because everybody's body chemistry is different, these chemicals could have a drastic effect on your health.

3. No one on the face of the earth today knows what effect these could have on your body, as they go into thousands of different combinations. (It is like making a mixture of colors; one drop could change the complete color.)

4. There has not been equipment designed to detect these chemicals, and there may not be for many years to come.

5. The Navy has been drinking distilled water for several generations.

6. Distilled water is chemical and mineral free. Distillation removes all of the chemicals and impurities that it is possible to remove and if distillation doesn't remove them, there is no known method today that will.

7. Though the body does need minerals, there is no organic or inorganic mineral in water that makes a minute amount of difference, as most minerals that the body can assimilate are found in fruits, vegetables or foods. Because minerals in water vary from area to area, water would be a poor source of minerals. We feel it is much better to clean the water up and remove these chemicals, pollutants and inorganic minerals, drink distilled water, and if you feel you should, supplement it with fruits and vegetables.

8. Dr. Schroeder, one of our leading trace mineral experts, states: "There is more of a danger of the body receiving an over-abundance of minerals than an under-abundance, which could be replaced."

9. We have sold tens of thousands of distillers throughout the United States and in many foreign countries. We have had thousands of people tell us and hundreds of people write us that it has helped them physically and given them a feeling of general well-being.

10. Why should you take chances? You don't have to be a doctor or a well-educated person to understand that with these chemicals and pollutants in our water, it is foolish to take chances when it is so inexpensive to remove them through distillation, NATURE'S WAY OF PURIFYING WATER.

100031

Complaint 110 F.T.C.

EXHIBIT D

**NEW AQUASPRING-5** **HI-SPEED-STAINLESS** **Home Water Distiller**

ENJOY CLEAN, REFRESHING WATER IN YOUR OWN HOME. WITHOUT DISTILLATION PENETRATES THE WATER. YET STEAM DISTILLATION

AQUASPRING-5 the new Stainless home water distiller, removes objectionable impurities from drinking water. This remarkable compact appliance, manufactured by New Medical Techniques, Inc., distills tap water— or even sea water — and converts it to fresh pure drinking water — efficiently, silently, and for only pennies per gallon. Yield is 5 gallons* of distilled water a day.

AQUASPRING'S Pure Distilled Water brings out the delicious natural flavor of coffee, tea, soups, mixed drinks, juice concentrates, even ice cubes... recommended for special diet formulas and saltfree diets...eliminates drinking problems at summer cottages, fishing camps, travel trailers...excellent for color photography, electric irons, batteries.

AQUASPRING is compact and portable, weighs only 9 pounds. It plugs in like your toaster, and its action is completely automatic. No expensive plumbing hookups are needed.

AQUASPRING removes rust, dirt, salts, pesticides, chlorine, fluorides, alum, sulphur, and mineral impurities to make safe, pure distilled drinking water which meets U.S.P. standards...

It's that simple. Let AQUASPRING-5 work while you sleep — the automatic electric circuit will turn the unit off when it produces one half gallon of water.* And an Add-Water neon light goes on to let you know that you can make additional water. This neon light consumes a minute amount of energy and may serve as a nightlight in your kitchen.

Specifications:

120 volts, 60 cycle AC, 650 watts. Height-17½". Base-9¼" square. Weight-9 lbs. (approx.)

WARRANTY: Guaranteed for 12 months against defects in material or workmanship.

Trademark of New Medical Techniques, Inc., Mystic, CT 06355 Covered by U.S. patents issued and pending.

*Approx.

U.L. Approved - Listed 424D

FOR MORE INFORMATION CONTACT

AQUASPRING

Safe·Pure·Water

NEW MEDICAL TECHNIQUES, INC. 137 125 Complaint

EXHIBIT E

AQUASPRING®-1.5 Home Water Distiller

ENJOY CLEAN REFRESHING WATER IN YOUR OWN HOME WITHOUT BUYING EX- PENSIVE BOTTLED WATER. AQUASPRING IS THE ALTERNATIVE

The AQUASPRING-1.5 is a portable electric water distiller capable of providing distilled water for families up to four people.* The AQUASPRING-1.5 converts tap water — even sea water — to safe pure distilled water which far exceeds drinking water standards as established by the Environmental Protection Agency.

Specifications 110-120 volts, 60 cycle AC 235 watts. Height 13 1/2". Base 9 1/2" square. Weight 6 lbs. U.L. listed.

Why distillation? Distillation is the only truly effective way to eliminate dangerous bacteria, viruses, dirt, salt, rust, chlorine and other chemicals and minerals. Other methods of water purification remove some of the contaminants, but only distillation can eliminate all impurities. At a time when our nation's water supplies are so badly polluted it makes good sense to drink distilled water.

How does it operate? The AQUASPRING-1.5 which is U.L. listed, is fully engineered and designed to provide years of trouble free service. It can be operated 24 hours a day and requires only routine cleaning. The distiller is an attractive appliance which sits on any kitchen counter or other level surface and can be easily stored if not in use. You simply lift off the top, fill the boiler with water, replace the top, and plug into any outlet. Each cycle takes 7 to 8 hours and will produce 1/2 gallon** of distilled water, depending upon ambient conditions.

Is it expensive to operate? The AQUASPRING-1.5 operates for pennies per cycle, and when compared to the high cost of bottled water the savings is significant. But more important — you know that the water is indeed pure, fresh, distilled water.

Who uses distilled water? For years Aquasprings have been providing homes, camps, businesses, schools, hospitals, doctors' offices, scientific labs, and photographic studios with distilled water. For people on special diets and people concerned about the quality of the water they drink — distilled water is a must.

The AQUASPRING-1.5 comes complete with Pyrex Boiler, two Receiving Bottles, and a Stainless Steel Collecting Plate. NO PLUMBING IS REQUIRED — Just plug it in and you're on your way to fresh, pure DISTILLED water. One year warranty.

AQUASPRING by New Medical Techniques, Inc.

AQUASPRING® DO NOT IMMERSE IN WATER Safe-Pure-Water

FOR MORE INFORMATION CONTACT

100034

Decision and Order 110 F.T.C.

DECISION AND ORDER

The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of 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 respondent with violation of the Federal Trade Commission Act; and

The respondent, its attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the 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 respondent 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 respondent has 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 sixty (60) 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. Respondent New Medical Techniques, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Connecticut, with its offices and principal place of business located in Mystic, Connecticut and its mailing address at Post Office Box 429, Broadway Extension, Mystic, Connecticut.

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 the purposes of this order, the following definitions shall apply:

A. "Aquaspring" shall mean the Aquaspring Home Water Distiller Models 1.5, 4, and 5 offered for sale, sold, or distributed by New Medical Techniques, Inc., a Connecticut corporation, under the Aquaspring trade name or any other trade name, including but not limited to "Medi-Tech" and "The Home Water Still."

NEW MEDICAL TECHNIQUES, INC. 139

125 Decision and Order

B. "Water purification device" shall mean any product or construct which is designed to be used for the removal or reduction, by any method, of any impurities or contaminants from water intended for human consumption.

C. "Volatile organic chemical" shall mean any synthetic or naturally occurring organic chemical which, when present in water, generally will evaporate when the water is heated to a temperature at or less than 100 degrees Celsius.

D. "Competent and reliable scientific test" shall mean a test in which persons with skill and expert knowledge in the field to which the test pertains conduct the test and evaluate its results in an objective manner using testing, evaluation, and analytical procedures that ensure accurate, reliable, and reproducible results.

I.

It is ordered, That respondent New Medical Techniques, Inc., a corporation; its successors and assigns; and its officers, representatives, agents and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of Aquaspring or any other water purification device in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting, directly or by implication, that:

A. Any such device has been tested, approved, or endorsed by any person, firm, organization, or government agency; B. Any such device will protect the user from any health hazard associated with any water-borne contaminant; and C. Any such device (1) is capable of removing any impurity or contaminant from water, (2) will provide absolutely pure water or will remove all contaminants from water, or (3) is capable of removing all chemicals or any specific chemical from water.

II.

It is further ordered, That respondent New Medical Techniques, Inc., a corporation; its successors and assigns; and its officers, representatives, agents and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of Aquaspring or any other water purification device in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that:

Decision and Order 110 F.T.C.

A. Any such device will protect the user from any health hazard associated with any water-borne contaminant, unless, at the time the representation is made, respondent possesses and relies upon a reasonable basis consisting of competent and reliable scientific evidence that substantiates the representation; and B. Any such device (1) is capable of removing any impurity or contaminant from water, (2) will provide absolutely pure water or will remove all contaminants from water, or (3) is capable of removing all chemicals or any specific chemical from water, unless, at the time the representation is made, respondent possesses and relies upon a reasonable basis consisting of a competent and reliable scientific test that substantiates the representation.

III.

It is further ordered, That respondent; its successors and assigns; and its officers, representatives, agents and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, offering for sale, sale or distribution of Aquaspring or any other water purification device, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, any performance or efficacy characteristic of any water purification device, unless, at the time the representation is made, respondent possesses and relies upon a reasonable basis consisting of competent and reliable scientific evidence that substantiates the representation.

IV.

It is further ordered, That for three years from the date that the representations to which they pertain are last disseminated, respondent shall maintain and upon request make available to the Federal Trade Commission or its staff for inspection and copying:

A. All materials relied upon to substantiate any claim or representation covered by this order; and B. All test reports, studies, surveys or other materials in its possession or control or of which it has knowledge that contradict, qualify or call into question such representation or the basis upon which respondent relied for such representation, including complaints from consumers.

NEW MEDICAL TECHNIQUES, INC. 141

125 Decision and Order

V.

It is further ordered, That respondent shall include the following notice in all advertising and promotional materials for the Aquaspring or any other water purification device that does not substantially remove volatile organic chemicals from water, if that advertising or promotional material represents, directly or by implication, that the device will remove any chemical contaminant from water or will protect the user from any health hazard associated with any water-borne contaminant:

NOTICE: This device is not designed to remove potentially hazardous volatile organic chemicals from water.

Provided, however, That the above notice shall not be required where the representation is limited solely to an itemization of those contaminants that the device will substantially remove. Nothing contrary to, inconsistent with, or in mitigation of the above required language shall be used in any such advertising or promotional material. In print advertising and promotional material, the above required language shall appear in at least ten-point bold type print, in close conjunction with the representation. In any television advertising, film, videotape or slide promotional material, the above required language shall be included both orally and visually in a manner designed to ensure clarity and prominence. In radio advertising, the above required language shall be read in a clear manner.

VI.

It is further ordered, That respondent shall deliver by certified mail or in person a copy of this order to all present and future distributors of Aquaspring, and instruct said distributors in writing not to make any of the representations, directly or by implication, prohibited by this order. Delivery shall be made within thirty (30) days after the date of service of this order to all present distributors. For all future distributors, delivery shall be made prior to the time said distributors begin distribution of the product.

VII.

It is further ordered, That respondent shall 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

142 \hfill FEDERAL TRADE COMMISSION DECISIONS

\hfill Decision and Order \hfill 110 F.T.C.

subsidiaries or any other change in the corporation which may affect compliance obligations arising out of the order.

VIII.

It is further ordered, That respondent shall, within sixty (60) days after service of this order upon it, and at such other times as the Commission may require, file with the Commission a written report setting forth in detail the manner and form in which it has complied or intends to comply with this order.

GENERAL RAILWAY SIGNAL CO., ET AL. 143

143 Modifying Order

IN THE MATTER OF

GENERAL RAILWAY SIGNAL CO., ET AL.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF THE FEDERAL TRADE COMMISSION AND CLAYTON ACTS

Docket C-837. Consent Order, Sept. 24, 1964—Modifying Order, Dec. 10, 1987

The Federal Trade Commission has modified a 1964 consent order (66 F.T.C. 882) by permitting General Railway Signal Co. to engage in any conduct or enter any agreement that is ancillary to and reasonably necessary for the formation or operation of a joint venture that is lawful under the antitrust laws.

ORDER MODIFYING CONSENT ORDER ISSUED SEPTEMBER 24, 1964

On August 12, 1987, General Railway Signal Company ("General Railway"), filed a "request to reopen proceeding and modify order" ("request"), pursuant to Section 2.51 of the Commission's Rules of Practice. The request asks the Commission to reopen the proceeding and modify the consent order issued September 24, 1964, ("the order") to permit General Railway to engage in any conduct or enter any agreement that is ancillary to and reasonably necessary for the formation or operation of a joint venture that is lawful under the antitrust laws.

The Commission has previously considered the petition of American Standard Inc. ("American Standard"), successor to respondent Westinghouse Air Brake Co. ("WABCO"), which requested, among other things, that the Commission modify the order in Docket No. C-837 to permit American Standard to engage in lawful joint venture activity. On November 13, 1986, the Commission granted that request in the public interest, finding that American Standard had made an adequate showing that currently evolving technological and economic factors in the railroad signaling equipment and systems industry have created a competitive need for American Standard to participate in joint ventures to research, develop and produce integrated railroad systems and to bid for turnkey railroad projects. After reviewing General Railway's Request and other relevant information, the Commission has concluded that it is in the public interest to modify the order to permit General Railway to engage in conduct that is ancillary to and reasonably necessary for the formation or operation of any joint venture that is lawful under the antitrust laws. General Railway has made an adequate showing that the same industry conditions that warranted modification of the order to