Bertolli Usa, Inc

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IN THE MATTER OF BERTOLLI USA, INC.

CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3396. Complaint, Aug. 17, 1992--Decision, Aug. 17, 1992 This consent order prohibits, among other things, a New Jersey -- based company from misrepresenting the validity, results, conclusions or interpretations of any test or study; and from representing that olive oil or any other edible oil produces any health benefits, such as reducing blood pressure and blood sugar, unless the respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation. Appearances For the Commission: Nancy S. Warder and Joel Winston. For the respondent: Eugene I. Lambert, Covington & Burling, Washington, D.C.

COMPLAINT The Federal Trade Commission, having reason to believe that Bertolli USA, Inc. ("Bertolli" or respondent), a corporation, has violated 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. Bertolli is a Delaware corporation with its offices and principal place of business at 1 Harmon Plaza, P.O. Box 2617, Secaucus, New Jersey.

PAR. 2. Bertolli has advertised, offered for sale, sold, and distributed Bertolli Olive Oil Classico, Bertolli Extra Virgin Olive Oil, and Bertolli Extra Light Olive Oil (collectively referred to as Bertolli5 1 12 2 4 2 846 2670 108 36 96.612923 Olives 1 12 2 4 3 979 2668 97 42 94.174583 Oil) and other foods within the meaning of Sections 12 and 15 of the Federal Trade Commission Act. BERTOLLI USA, INC. 775 774 Complaint PAR. 3. Bertolli has disseminated or caused to be disseminated advertisements for Bertolli Olive Oil. These advertisements have been disseminated by various means in or affecting commerce, including magazines distributed across state lines, for the purpose of inducing the purchase of Bertolli Olive Oil by members of the public. PAR. 4. The acts or practices of Bertolli alleged in this complaint have been in or affecting commerce.

PAR. 5. Respondent has disseminated or caused to be disseminated advertisements for Bertolli Olive Oil, including but not necessarily limited to, the advertisements attached hereto as Exhibits A, B, and C. The headlines of Exhibits A and B contain the following statements:

Last week, [or in Exhibit B, On5 1 4 1 1 8 1044 1368 138 36 93.266739 February5 1 4 1 1 9 1193 1368 54 34 92.062408 2,] medical science confirmed olive oil can lower cholesterol, blood pressure and blood sugar. For people who use Bertolli, this was old news. (Emphasis added).

The headline of Exhibit C contains the following statements: For years, Bertolli has said olive oil can lower your cholesterol, blood pressure and blood sugar. Last week, medical science said we were right. (Emphasis added). All three advertisements also contain the following statements: The February 2, 1990 issue of The Journal of the American Medical Association reported that monounsaturated oils like olive oil are healthier than other oils, margarine or butter.

The study, conducted in Italy, showed people who had the most olive oil in their diet had the lowest levels of blood cholesterol, blood pressure and blood sugar. These findings support prior research in the United States that found monounsaturated oils, such as olive oil, can actually reduce the cholesterol, known as LDL, that is bad for you.

Yet they protect the cholesterol, known as HDL, that is good for you. That's something corn oil, sunflower oil, vegetable oil, margarine and butter can't do. All of this information simply confirms what we at Bertolli have known for generations. Bertolli olive oil is healthier. Complaint 115 F.T.C.

PAR. 6. The respondent has disseminated or caused to be disseminated advertisements for Bertolli Olive Oil, including but not necessarily limited to, the advertisement attached hereto as Exhibit D, which contains the following statements: Because Bertolli Olive Oil is healthier for your heart than other oils, butter or margarine. It can actually lower cholesterol, blood pressure and blood sugar. PAR. 7. The study reported in the February 2, 1990, issue of The Journal of the American Medical Association to which the advertisements attached as Exhibits A, B, C, and D refer is by Trevisan and others titled Consumption of Olive Oil, Butter, and Vegetable Oils and Coronary Heart Disease Risk Factors ("Trevisan Article").

PAR. 8. Through the use of the statements set forth in paragraph five, and others not specifically set forth herein, respondent has represented, directly or by implication, that medical science has established that:

(a) Eating olive oil lowers blood pressure; and (b) Eating olive oil lowers blood sugar.

PAR. 9. In truth and in fact, medical science has not established that:

(a) Eating olive oil lowers blood pressure; and (b) Eating olive oil lowers blood sugar.

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

PAR. 10. Through the use of the statements in paragraphs five and six and others not specifically set forth herein, respondent has represented, directly or by implication, that: (a) Eating olive oil lowers cholesterol more than other cooking oils used in the home;

(b) Eating olive oil lowers blood pressure; (c) Eating olive oil lowers blood sugar; and BERTOLLI USA, INC. 777 774 Complaint (d) Bertolli olive oil is healthier for the heart than other cooking oils used in the home.

PAR. 11. Through the use of the statements in paragraphs five and six and others not specifically set forth herein, respondent has represented, directly or by implication, that at the time it made the representations set forth in paragraph ten respondent possessed and relied upon a reasonable basis, consisting of competent and reliable scientific research, for such representations. PAR. 12. In truth and in fact, at the time the representations were made, respondent did not possess and rely upon a reasonable basis, consisting of competent and reliable scientific research, for the representations set forth in paragraph ten. Therefore, the representations set forth in paragraph eleven were and are false and misleading.

PAR. 13. Through the use of the statements set forth in paragraph five, and others not specifically set forth herein, respondent has represented, directly or by implication, that the Trevisan Article reports that olive oil is healthier than other oils. PAR. 14. In truth and in fact, the Trevisan Article does not report that olive oil is healthier than other oils. The Trevisan Article reports its findings in qualified terms and states that both polyunsaturated and monounsaturated fats may be associated with a lower coronary risk profile and that further studies are needed to confirm its findings. Therefore, the representation set forth in paragraph thirteen was and is false and misleading.

PAR. 15. Through the use of the statements set forth in paragraph five, and others not specifically set forth herein, respondent has represented, directly or by implication, that the findings of the Trevisan Article support prior research that found monounsaturated oils, such as olive oil, reduce LDL cholesterol and protect HDL cholesterol.

PAR. 16. In truth and in fact, the findings of the Trevisan Article do not support prior research that found monounsaturated oils, such as Olive oil, reduce LDL cholesterol and protect HDL cholesterol. The Trevisan Article did not report any measures of either LDL or HDL cholesterol, and its findings do not pertain directly to the effects of olive oil on either LDL or HDL cholesterol. Therefore, the Complaint 115 F.T.C.

representation set forth in paragraph fifteen was and is false and misleading.

PAR. 17. Through the use of the statements set forth in paragraph five, and others not specifically set forth herein, respondent has represented, directly or by implication, that the Trevisan Article reports that study participants who had the most olive oil in their diets had the lowest levels of blood cholesterol. PAR. 18. In truth and in fact, the Trevisan Article does not report that study participants who had the most olive oil in their diets had the lowest levels of blood cholesterol. The Trevisan Article reports that the study participants who had the most polyunsaturated fat in their diets had the lowest levels of blood cholesterol. Therefore, the representation set forth in paragraph seventeen was and is false and misleading.

PAR. 19. The dissemination by respondent of the aforesaid false and misleading representations as alleged in this complaint constitutes unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.

BERTOLLI USA, INC. 779 774 Complaint EXHIBIT A EXHIBIT A Last week, medical science confirmed olive oil can lower cholesterol, blood pressure and blood sugar.

For people who use Bertolli, this was old news.

‘ of uw ? ’ “BERTOLL F fe bs _ Bs The February 2, 1990 issue of The _research in the United States that found firms what we at Bertolli have known for Journal of The American Medical Associa- — monounsaturated oils, such as olive generations tion reported that monounsaturated oils oil, can actually reduce the cholesterol, Bertolli olive oil is healthier. like olrve oul are healthier than other oils, known as LDL. that is bad for you. And. although the Amencan margarine or burner. Yet they protect the cholesterol, Medical Assoaation failed to mention it, The study, conducted in Italy, known as HDL, that is good for you. you should know Bertolli 1s also delicious showed people who had the most olive oil That's something com oi. sun- For more information about the m their diet fad the lowest levels of blood flower oil. vegetable oil, marganne and health benefits of olive oil, wnte to the Loe Ve ee eee a: cere eet de Daeall Vietnam Commer DO Ray VAITW Complaint EXHIBIT B On February 2, medical science confirmed olive oil can lower cholesterol, blood pressure and blood sugar.

For people who use Bertolli, was old news.

The February 2, 1990 issue of The Journal of The American Medical Association rted that monounsaturated oils like olive oil are healthier than other oils, margarine or butter.

The study, conducted in Italy, showed people who had the most olive oil in their diet had the lowest levels of blood cholesterol, blood pressure and blood sugar.

These findings support © 1990 Bertoll: USA Inc prior research in the United States that found monounsaturated oils, such as olive oil, can actually reduce the cholesterol, known as LDL, thar.

is bad for you.

Yet they protect the cholesterol, known as HDL, that is good for you.

That's something corn oil, sunflower oil, vegetable oil, margarine and butter cant do.

All of this information BERTOLLI Eat well. Live long. Be happy.

EXHIBIT B simply confirms what we have known for generatic Bertolli olive oil is And, although th Medical Association faile:

tion it, you should know also delicious.

For rpore inform the health bertefits of olis to the Bertolli Nutrition é PO. Box 2617Y, Secaucus 07096-2617.

BERTOLLI USA, INC. 781 774 Complaint EXHIBIT C For years, Bertolli has said olive oil can lower your cholesterol, blood pressure and blood stigar.

Last week, medical science said we were right.

- The February 2, 1990 save of The research in the Uniced Sues that found “7 Journal of The American Medical Associa: monounsaturated oils, such a5 olive Yr generations.

w-.. ton reported that manounseruraid ofls oil. can actually reduce the cholesterol,” Bertolli olive of! ts healthier... * | Wer olive of] are healchier than other oils, = own as LDL. that is bed for you. .7. 7 And al he a Mmargactne or burner <3 |. Yet they protec: die cholesterol, | Medical Assocission failed to mention ft The, conducted in Italy, known as HDL. that is good for you you should now Benolli {s'slso delicious. showed le who had the mos: olive oi ‘That's something com oil, sun- Fot more Information about the im thelr diet had the lowes: levels cl blood dower oll. ole oi, margarine and health benefits of olive oll, write t the . ~” cholesterol. blood pressure and bloed sugar. butter cant £ + Bervolti Nutrition Center, RO, Bex 2617Y, +" | 1, These Gadings suppon pnor + Allof this informazion simply com: Sccavaus, N) 07096-2617, . BERTOLLI Eat well. Live long. Be happy: ‘EXHIBIT ¢ Complaint 115 F.T.C.

EXHIBIT D When it comes to affairs of the heart, no one knows more than Bertolli.

Its February 14. EveryoneS It can actually lower cholesterol, —_Bertwlli—or youd like w try some thinking about hearts today. blood pressure and blood sugar. new ways to use our olive oil- At Bertolli, however, we're So, to keep the ones you love =— mail the recipe book coupon to us. thinking about hearts every day as healthy as they can be, cut out Well send you a collection of of the year. the 50¢ coupon and sar cooking Bertolli recipes. Along with our Because Bertolli olive oil is with Berrollli olive oil heardelt thanks. healthier for your heart than Uf you've never cooked with And one more thing. @ other oils, butter or margarine. Happy Valentine's Day. BERTOLLI aeueterese. | SAVE 50¢ 330538 , eo oe et ew rs Oe et ee coe we EXHIBIT D BERTOLLI USA, INC. 783 7714 Decision and Order 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 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 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.

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 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 Bertolli USA, Inc. is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at: 1 Harmon Plaza, P.O. Box 2617, Secaucus, New Jersey. 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.

Decision and Order 115 F.T.C.

ORDER For purposes of this order the Trevisan5 1 4 1 1 8 1522 761 151 36 95.135124 Article means the study by Trevisan and others reported in the February 2, 1990, issue of the Journal of the American Medical Association titled Consumption of Olive Oil, Butter, and Vegetable Oils and Coronary Heart Disease Risk Factors.

It is ordered, That respondent Bertolli USA, 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 any food product 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, contrary to fact, that medical science has established that:

A. Eating olive oil lowers blood pressure; or B. Eating olive oil lowers blood sugar.

II.

It is further ordered, That respondent Bertolli USA, 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 any food product in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from: A. Representing that the Trevisan Article reports that olive oil is healthier than other oils;

B. Representing that the findings of the Trevisan Article support prior research that found that monounsaturated oils, such as olive oil, reduce LDL cholesterol and protect HDL cholesterol; or BERTOLLI USA, INC. 785 774 Decision and Order C. Representing that the Trevisan Article reports that study participants who had the most olive oil in their diets had the lowest levels of blood cholesterol.

IIL.

It is further ordered, That respondent Bertolli USA, 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 any food product 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:

A. Eating olive oil lowers cholesterol more than other cooking oils used in the home;

B. Eating olive oil lowers blood pressure or lowers blood sugar; C. Bertolli olive oil is healthier for the heart than other cooking oils used in the home;

D. Any edible oil has the relative or absolute ability to cause or contribute to any health attribute or benefit; or E. Any edible oil has a favorable impact on any physiologic function or risk factor for a disease, or any other health benefit; unless at the time of making such representation respondent possesses and relies upon a reasonable basis consisting of competent and reliable scientific evidence that substantiates the representation; provided, however, that any such representation that is specifically permitted in labeling for such food product by regulations promulgated by the Food and Drug Administration pursuant to the Nutrition Labeling and Education Act of 1990 will be deemed to have a reasonable basis as required by this paragraph. For any test, analysis, research, study, or other evidence to be competent5 1 7 1 9 10 1808 2560 69 34 96.798790 anda 1 7 1 10 0 540 2615 1335 48 -1 5 1 7 1 10 1 540 2615 167 36 95.297226 reliable for purposes of this order, such test, analysis, research, study, or other evidence must be conducted and evaluated in an objective manner by persons qualified to do so, using procedures Decision and Order 115 F.T.C.

generally accepted by others in the profession or science to yield accurate and reliable results.

IV.

It is further ordered, That respondent Bertolli USA, 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 any food product in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting in any manner, directly or by implication, the contents, validity, conclusions, interpretations, purpose, or results of any study, test, or other scientific data. V.

It is further ordered, That respondent Bertolli USA, Inc., its successors and assigns, shall, for three (3) years after the date of the last dissemination of the representation to which they pertain, maintain and upon request make available to the Federal Trade Commission for.inspection and copying:

A. All materials relied upon to substantiate any representation covered by this order;

B. All studies in scientific journals or other test reports that are referred to in any representation covered by this order; and C. All test reports, studies, surveys, or other materials in its possession or control that contradict, qualify or call into question such representation or the basis upon which respondent relied for such representation.

VI.

It is further ordered, That respondent Bertolli USA, Inc., shall, within thirty (30) days after service upon it of this order, distribute a copy of the order to each of its operating divisions, to each of its BERTOLLI USA, INC. 787 774 Decision and Order managerial employees, and to each of its officers, agents, representatives or employees engaged in the preparation or placement of advertising or other materials covered by this order and shall secure from each such person a signed statement acknowledging receipt of this order.

VIL.

It is further ordered, That respondent Bertolli USA, Inc., shall notify the Commission at least thirty (30) days prior to any proposed change such as the 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. Vill.

It is further ordered, That respondent Bertolli USA, Inc., shall, within sixty (60) days after service upon it of this order and at such other times as the Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with the requirements of this order. Complaint 115 F.T.C.