G.C. Thorsen, Inc

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IN THE MATTER OF G.C. THORSEN, INC.

CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3467. Complaint, Oct. 8, 1993--Decision, Oct. 8, 1993 This consent order prohibits, among other things, an Illinois manufacturer of aerosol cleaning products from representing that any product containing an ozone-depleting substance is ozone friendly or that it will not damage or deplete the ozone in the upper atmosphere and from making environmental benefit claims for any product unless the respondent possesses competent and reliable evidence to substantiate the claims. Appearances For the Commission: Ralph E. Stone and Jeffrey Klurfeld. For the respondent: Stephen T. Moore, Hinshaw & Culbertson, Rockford, IL.

COMPLAINT The Federal Trade Commission, having reason to believe that G.C. Thorsen, Inc., a corporation, also trading and doing business as G.C. Electronics, Inc., hereinafter sometimes referred to as 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. G.C. Thorsen, Inc. is a Delaware corporation, with its principal office or place of business at 1801 Morgan Street, Rockford, Illinois.

PAR. 2. Respondent has advertised, labeled, offered for sale, sold, and distributed computer and office equipment care and maintenance products containing the hydrochlorofluorocarbon ("HCFC") known as chlorodifluoromethane ("HCFC-22") to the public, includ- Complaint 116 F.T.C.

ing the aerosol cleaning products known as Air-Duster and Airjet4 1 3 1 2 0 640 677 61 34 -1 5 1 3 1 2 1 640 677 61 34 64.841835 II. PAR. 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as commerce is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. 44.

PAR. 4. Respondent has disseminated or has caused to be disseminated advertisements, including product labeling and point of sale materials for Air-Duster and Airjet II, including but not necessarily limited to, the attached Exhibits A - C. The product labeling on the front of the Air-Duster (Exhibit A) and Airjet II (Exhibit B) cans includes the following statements: Ozone friendly Environmentally responsible The aforementioned product labeling also includes the following depiction:

The product labeling on the back of the aforementioned cans includes the following statement:

Contains HCFC-22, an EPA designated product that adheres to the Montreal Protocol in respect for concerns about depletion of the Earth's ozone layer. The point of sale materials for Airjet Il (Exhibit C) include the depiction mentioned above and the following statements: Environmentally responsible EPA designated CFC replacement This is an aerosol that contains HCFC-22 (an EPA designated substitute for CFC's).

Made with HCFC-22 EPA designated substitute. Formulated with chemistry that satisfies the Montreal Protocol.

Does not contain CFC's or other ozone damaging components. G.C. THORSEN, INC. 1181 1179 Complaint PAR. 5. Through the statements referred to in paragraph four in product labeling (Exhibits A and B) and point of sale materials (Exhibit C), respondent has represented, directly or by implication, that:

1. There are no ingredients in respondent's products that deplete the earth's ozone layer.

2. There are no ingredients in respondent's products that harm or damage the environment.

3. HCFC-22 is an EPA-approved chemical or an EPA-approved substitute for CFCs that complies with the Montreal Protocol, and does not contribute to the depletion of the earth's ozone layer. PAR. 6. In truth and in fact, respondent's products contain the ozone-depleting chemical HCFC-22, a hydrochlorofluorocarbon, which harms or damages the environment by contributing to the depletion of the earth's ozone layer and which is not an EPAapproved chemical or an EPA-approved substitute for CFCs (chlorofluorocarbons) that complies with the Montreal Protocol. Therefore, the representations set forth in paragraph five were, and are, false and misleading.

PAR. 7. Through the statements contained in paragraph four, including but not limited to product labeling attached as Exhibits A and B and point of sale materials attached as Exhibit C, respondent has represented, directly or by implication, that at the time it made the representations set forth in paragraph five, respondent possessed and relied upon a reasonable basis that substantiated such representations.

PAR. 8. In truth and in fact, at the time it made the representations set forth in paragraph five, the respondent did not possess and rely upon a reasonable basis that substantiated such representations. Therefore, the representation set forth in paragraph seven was, and is, false and misleading.

PAR. 9. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. 45(a).

Complaint EXHIBIT A ON “AB OAV Zh BUS WO poued 3Deq Yb suopnes AinjeseD peey 7 a ‘ a auns Y¥30NN SLINZINOD de STUPYOOW X84 @ su0Atid GD © on fe eraqypmedA) ° sennhuos 7 vet #0 MOVE 40 100 4aEy . cul seou;d Yoee 02 pusy SuseTD 2 3 Bing, suture convore cece. 109 3 Ne 23 org pu oy OOO'SZE ras an erat ie Sener eee Ty}: Buryszes9g now m8 _abrtaplumns leeandebeedeere nate we 3snq seaowey >O Jahdeg stan Wigay eA pp voReRiep oge BuscuCe ap dees wy Coma be} pe wg ETpon NOSP Vdd V8 TZ DOH SUD Ss FF Ls da ‘wenn so Opt Lam eer) “BREUER 20 BaDUNd ee \ A Q © yew 09 “Apeqops yang ppnco wee 85 a7 | SANE SRsERLEmER, ye OUCRE 20U Og “ENPOUK-Aq OPER Ee ee @3 Sonpous peice vonenepece “wast 2 A 20S Maa Pv Oc Rammed Jape SBIR] ROUND “a2 heal Rousaen-dasendJ La) essengoeelean Lared Kans haninadenrenal ATONIIYS 3NOZO pre dee on ee tena UO ‘ORBURA eaty 205 OC POUR & UEP 4 LLOO : “eee won peamatest qncwes Z00-01 po hae more LGN MY Soca vee d en pommel itn aroawna niTagLs EP 2125/10 :1v EN, INC.

Gc. THORS Complains ‘ ° eae Complaint EXHIBIT C NEW! Environmentally Responsible AIRJET Il @ Blows away dust, dirt, grit @ Cleans hard to reach places ® Removes dust without scratching @ EPA designated CFC replacement A miniature and portable “air-compressor” for removing dirt, dust and grit that can not normally be removes or reached easily.

This is an aerosol can that contains highly compressed HCFC-22 (an EPA designated substitute for CFC’s). Provides a powerful blast of “air. A long extension tube is included for hard to reach places.

Non-toxic, odor-free, and leaves no residue. Provides hundreds cf “biasts”.

No. 10-8475 12 Oz Aerosol 10-8475 Cautions on Boch Pana! 2 Comarms 12 AVDP Ounces Net g = Does not contain C.-C’s or other ozone damaging components.

AIRJET Il (Blows away dust dirt, gett as § Cleans hard to reach placed i 'Removas dust without scratching 4EPA designated CFC replacement — NEW! Variable Action Trigger CONTENTS UNDER PRESSURE Raac Caren, 1 Doz/Box G.C. THORSEN, INC. 1185 1179 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 the respondent having been furnished thereafter with a copy of a draft of complaint which the San Francisco Regional Office 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 attorney, 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 complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed said 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 G.C. Thorsen, 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 1801 Morgan Street, Rockford, 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.

Decision and Order 116 F.T.C.

ORDER DEFINITIONS For the purposes of this order, the following definitions shall apply:

Class5 1 6 1 1 2 849 1022 18 34 95.811424 I5 1 6 1 1 3 888 1022 313 45 95.819717 ozone-depleting5 1 6 1 1 4 1225 1022 213 34 94.573158 substance means a substance that harms the environment by destroying ozone in the upper atmosphere and is listed as such in Title 6 of the Clean Air Act Amendments of 1990, Pub. L. No. 101-549, and any other substance which may in the future be added to the list pursuant to Title 6 of the Act. Class I substances currently include chlorofluorocarbons, halons, carbon tetrachloride and 1,1,1-trichloroethane.

Class5 1 6 2 7 2 842 1449 35 34 83.959427 IT5 1 6 2 7 3 895 1449 314 45 96.514755 ozone-depleting5 1 6 2 7 4 1231 1449 213 35 94.352287 substance means a substance that harms the environment by destroying ozone in the upper atmosphere and is listed as such in Title 6 of the Clean Air Act Amendments of 1990, Pub. L. No. 101-549, and any other substance which may in the future be added to the list pursuant to Title 6 of the Act. Class IJ substances currently include hydrochlorofluorocarbons. It is ordered, That respondent, G.C. Thorsen, Inc., a corporation, also trading and doing business as G.C. Electronics, Inc., 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, labeling, offering for sale, sale, or distribution of any product, in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing that any such product containing any Class I or Class II ozone-depleting substance is ozone5 1 7 1 10 3 814 2542 184 45 87.443581 friendly, environmentally5 1 7 1 10 5 1376 2542 255 45 81.525902 responsible, does5 1 7 1 10 7 1775 2548 60 28 93.172523 not5 1 7 1 10 8 1851 2553 84 23 92.949951 con-4 1 7 1 11 0 616 2603 1319 44 -1 5 1 7 1 11 1 616 2604 69 34 95.120872 tains 1 7 1 11 2 701 2604 128 35 95.955025 CFCs or does5 1 7 1 11 5 1024 2610 60 28 96.833740 not5 1 7 1 11 6 1099 2603 142 35 96.256302 contains 1 7 1 11 7 1258 2614 116 24 96.510185 ozone5 1 7 1 11 8 1390 2603 194 44 95.782654 damaging5 1 7 1 11 9 1600 2603 268 44 94.171829 components, or, G.C. THORSEN, INC. 1187 1179 Decision and Order by words, depictions, or symbols representing directly or by implication, that any such product will not deplete, destroy, or otherwise adversely affect ozone in the upper atmosphere. I.

It is further ordered, That respondent G.C. Thorsen, Inc., a corporation, also trading and doing business as G.C. Electronics, Inc., 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, labeling, offering for sale, sale, or distribution of any product, in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, in any manner, directly or by implication, that any product offers any environmental benefit, unless at the time of making such representation, respondent possesses and relies upon competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, that substantiates such representation. For the purposes of this order, competent5 1 5 1 14 8 1489 1770 68 33 96.751465 ands 1 5 1 14 9 1577 1769 147 34 96.836731 reliable5 1 5 1 14 10 1744 1767 179 36 96.889114 scientific4 1 5 1 15 0 605 1828 1320 47 -1 5 1 5 1 15 1 605 1832 190 35 94.682762 evidence shall mean tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that has been conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results. Il.

It is further ordered, That three (3) years from the date that the respondent makes any representation covered by this order, the respondent shall maintain and upon written request make available to the Federal Trade Commission for inspection and copying: Decision and Order 116 F.T.C.

A. All materials that the respondent relied upon in disseminating any representation covered by this order. B. All tests, reports, studies or surveys, analyses, or other materials in the possession or control of the respondent that contradict, qualify, or call into question any representation covered by this order or the basis on which the respondent relied for such representation.

IV.

It is further ordered, That the respondent shall notify the Commission at least thirty (30) days prior to any proposed change in the corporation 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. V.

It is further ordered, That the respondent shall 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 or placement of advertisements, promotional materials, product labels, or other sales materials covered by this order. VI It is further ordered, That the 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 report, in writing, setting forth in detail the manner and form in which it has complied with this order.

SYNCHRONAL CORPORATION, ET AL. 1189 1189 Amended Complaint