Mace Security International, Inc

Volume 117 · 117 F.T.C. 168

Citation: 117 F.T.C. 168
Docket: C-3487
Complaint: 1994-03-25
Decision: 1994-03-25
Document type: consent order
Case type: consumer protection
Statutes: FTC Act (section 5)
Industry: chemical self-protection products
Outcome: consent order entered
Relief: cease_and_desist; affirmative_disclosure; notice_to_customers
Order term (years): 10
Commission counsel: Alice Au and Michael J. Bloom
Respondent counsel: Mark R. Butterfield, Rutland, VT
Source: Original volume PDF
Original PDF: This decision as a PDF

Cite this decision

Mace Security International, Inc, 117 F.T.C. 168 (1994). Consumer Law Library, https://consumerlawlibrary.org/decisions/v117-0007

Report an error in this record (decision id v117-0007)

Order status: presumptively_terminable_pre_1995. Sunset may be extended by the latest qualifying federal-court complaint alleging an order violation; complaints, dismissal/appeal outcomes, and respondent-specific extensions are not fully tracked.

Cited by 0 later FTC decisions

Cites

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

Complaint 117 F.T.C.

IN THE MATTER OF

MACE SECURITY INTERNATIONAL, INC., ET AL.

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

Docket C-3487. Complaint, Mar. 25, 1994--Decision, Mar. 25, 1994

This consent order requires, among other things, the Vermont-based marketers to have competent and reliable evidence to support any claims about the efficacy or performance of any chemical self-protection product they sell and to include cautionary disclosures, in their advertisement and with their product, about the limitations of the product on armed, enraged, drugged, or intoxicated assailants. The order also requires the respondents to substantiate any future claims they make about any attribute of any chemical self-protection product they sell, and to send a notice of the settlement to distributors and consumers.

Appearances

For the Commission: Alice Au and Michael J. Bloom. For the respondents: Mark R. Butterfield, Rutland, VT.

COMPLAINT

The Federal Trade Commission, having reason to believe that MACE Security International, Inc., a corporation, Personal Security, Inc., a corporation, and Jon E. Goodrich, Robert P. Gould, and James Kardas, individually and as officers and directors of said corporations, ("respondents"), have 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. Respondent MACE Security International, Inc. is a Delaware corporation, with its principal office or place of business at 160 Benmont Avenue, Bennington, Vermont. Respondent was formerly doing business as Mark Sport, Inc. Respondent Personal Security, Inc. is a Vermont corporation, with its principal office or place of business at 160 Benmont Avenue, Bennington, Vermont.

MACE SECURITY INTERNATIONAL, INC., ET AL. 169

168 Complaint

Respondent Jon E. Goodrich is an officer and director of MACE Security International, Inc. and Personal Security, Inc. Individually or in concert with others, he formulates, directs, and controls the acts and practices of MACE Security International, Inc. and Personal Security, Inc., including the acts and practices alleged in this complaint. His principal office or place of business is the same as that of the corporate respondents.

Respondent Robert P. Gould is an officer and director of MACE Security International, Inc. and Personal Security, Inc. Individually or in concert with others, he formulates, directs, and controls the acts and practices of MACE Security International, Inc. and Personal Security, Inc., including the acts and practices alleged in this complaint. He has an office at and his principal place of business is at the same address as that of the corporate respondents.

Respondent James Kardas is an officer and director of Personal Security, Inc. Individually or in concert with others, he formulates, directs, and controls the acts and practices of Personal Security, Inc., including the acts and practices alleged in this complaint. His principal office or place of business is the same as that of the corporate respondent.

PAR. 2. Respondents MACE Security International, Inc., Jon E. Goodrich, and Robert P. Gould have manufactured, advertised, labeled, offered for sale, sold, and distributed MK-VI MACE brand self-defense spray and MK-X MACE brand self-defense spray (hereinafter, both referred to as “MACE”), tear gas formulations that are sold in spray canister form. Respondents Personal Security, Inc. and James Kardas have advertised, offered for sale, sold, and distributed MACE. MACE contains the chemical irritant 1% phenylchloromethylketone (CN) and is intended to be a self-protection product that adversely affects the eyes, respiratory system, and skin of an assailant.

PAR. 3. The acts and practices of respondents alleged in this complaint have been in or affecting commerce, as “commerce” is defined in Section 4 of the Federal Trade Commission Act.

PAR. 4. Respondents have disseminated or have caused to be disseminated advertisements for MACE, including but not necessarily limited to the attached Exhibits A through F. These advertisements contain the following statements and depictions:

Complaint 117 F.T.C.

A. "Aim ... Spray ... Walk Away!" [this language is accompanied by three drawings that show a woman successfully using MACE to ward off an attacker and walking away from the scene of attack] (Exhibits A and C) [ellipses in original] B. "Mace wears off in about 20 minutes without causing permanent harm ... TIME TO PUT YOU WELL OUT OF HARM'S WAY." (Exhibits A and C) [ellipsis and emphasis in original] C. "'For over twenty years America's police and consumers have depended upon genuine Mace for protection against physical attack. During that time Mace has proven to be the safest, most effective and humane self-protection ever developed. If you're concerned about your safety, I urge you to carry Mace, too.' Patrolman Greg Connor." (Exhibit B) D. "POLICE-PROVEN MACE® ... just in case." (this language is accompanied by three drawings that show a woman successfully using MACE to ward off an attacker and walking away from the scene of attack) (Exhibit C) [ellipsis and emphasis in original] E. "NEW YORK ... DALLAS ... PHILADELPHIA ... Today over 4,000 police departments across America depend upon the proven Mace formula for protection against assault. So do men and women all across America -- professionals, joggers, college students, housewives, working women, seniors, delivery people -- anyone concerned with personal safety. SHOULDN'T YOU?" (Exhibit D) [ellipses and emphasis in original] F. "Accuracy Is Not Essential. JUST AIM ... SPRAY... WALK AWAY! Unique finger-grip design allows you to draw, aim and spray in one easy motion. Any contact within upper torso can be effective. Carry Mace wherever you go." [this language is accompanied by a drawing of human figure with the upper torso target area emphasized with a circle] JUST HIT THE CIRCLE! (Exhibits B and D) [ellipses and emphasis in original] G. "Mace is a CN-based tear gas developed in the 1960's as a humane means of self-protection for the law enforcement community. For over twenty years it has been the policeman's first line of defense against assault." (Exhibit E) H. "Since it's [sic] introduction over twenty years ago Mace has proven to be the safest, most effective and humane self-protection ever developed. That's why 4 of 5 police across America today carry Original Mace. Shouldn't you?" (Exhibit E) I. "Any contact with the upper torso can be effective. Just one squirt can instantly stop an assailant and keep him incapacitated for up to 20 minutes." (Exhibit E) J. "The police-proven Mace formulation can instantly stop an assailant ... UP TO 12 FEET AWAY ... and keep him incapacitated for up to 20 minutes." (Exhibit F) [ellipses in original]

PAR. 5. Through the use of the statements and depictions contained in the advertisements referred to in paragraph four, including but not necessarily limited to the advertisements attached as Exhibits A through F, respondents have represented, directly or by implication, that:

MACE SECURITY INTERNATIONAL, INC., ET AL. 171

168 Complaint

A. One spray of MACE will stop an assailant; B. Any contact with the upper torso by a spray of MACE will stop an assailant; and C. Use of MACE will instantly stop an assailant.

PAR. 6. In truth and in fact:

A. One spray of MACE does not stop an assailant; B. Any contact with the upper torso by a spray of MACE does not stop an assailant; and C. Use of MACE will not instantly stop an assailant.

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

PAR. 7. In its advertising and sale of MACE, respondents have represented that MACE provides effective protection against physical attack. Respondents have failed to disclose adequately that 1) it may take several seconds for the effects of MACE to begin, and 2) MACE may not be effective on many assailants including those who are armed, enraged, drugged, intoxicated, or otherwise desensitized. These facts, would be material to consumers in their purchase or use decisions regarding the product. The failure to disclose adequately these facts, in light of the representation made, was, and is, a deceptive practice.

PAR. 8. Through the use of the statements and depictions contained in the advertisements referred to in paragraph four including but not necessarily limited to the advertisements attached as Exhibits A through F, respondents have represented, directly or by implication, that:

A. MACE will keep an assailant incapacitated for up to or about 20 minutes; B. The effectiveness of MACE for civilian self-protection has been proven in use by police forces; C. Four out of five police officers in the United States carry MACE; and D. Over 4000 police departments in the United States use MACE for protection against assault.

Complaint 117 F.T.C.

PAR. 9. Through the use of the statements and depictions contained in the advertisements referred to in paragraph four including but not necessarily limited to the advertisements attached as Exhibits A through F, respondents have represented, directly or by implication, that at the time they made the representations set forth in paragraphs five and eight respondents possessed and relied upon a reasonable basis that substantiated such representations.

PAR. 10. In truth and in fact, at the time respondents made the representations set forth in paragraphs five and eight respondents did not possess and rely upon a reasonable basis that substantiated such representations. Therefore, the representations set forth in paragraph nine were, and are, false and misleading.

PAR. 11. The acts and practices of respondents 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.

MACE SECURITY INTERNATIONAL, INC., ET AL. 173

168 Complaint

EXHIBIT A

ORIGINAL mace® ...just in case

CAUTION: STRONG IRRITANT CONTENTS UNDER PRESSURE See additional cautions on back of card

Aim- Mace is designed to fit your hand for quick and accurate firing.

Spray- Mace causes profuse tearing and a painful burning sensation.

Walk Away! Mace wears off in about 20 minutes without causing permanent harm.

TIME TO PUT YOU WELL OUT OF HARM'S WAY.

Complaint 117 F.T.C.

EXHIBIT B ORIGINAL mace® Mace® Can Protect You.

And Those You Love.

For over twenty years American police and consumers have depended upon genuine Mace for protection against physical attack. During that time Mace has proven to be the safest, most effective and humane self-protection ever developed. If you're concerned about your safety, I urge you to carry Mace too.

Patrolman Greg Connor Carry Mace®...Just In Case.

• Each unit fires about 20, one half second bursts.

• Effective range up to 12 feet.

• Every unit "test-fired" before shipping.

• Burn-in belt clip & key chain.

• Easy-to-follow instructions included.

• 30 Day Money-back Guarantee.

CAUTION: STRONG IRRITANT CONTENTS UNDER PRESSURE Active ingredient, approximately 1% Phenylchloromethylketone (CN) in a non-toxic, non-flammable vehicle.

STRONG IRRITANT affecting eyes, respiratory areas and skin. In case of exposure, rinse eyes with water, and consult a physician. Wash skin with soap and water and expose to fresh air. If irritation persists, consult a physician. Use no creams, salves or oils. Shield face when firing into strong wind. CONTENTS UNDER PRESSURE. Do not puncture, incinerate or store at temperature above 120°F. KEEP OUT OF REACH OF CHILDREN. Not to be sold to minors or where prohibited by law. Use care with intoxicated, drugged, demented, enraged or other persons having reduced sensitivity to pain. Refer to instructions for additional information. Manufactured by MSI, 160 Bennett Avenue, Bennington, VT 05201. Made in U.S.A. Accuracy Is Not Essential JUST AIM...SPRAY...

WALK AWAY! Unique finger-grip design allows you to spray aim and spray in one easy motion.

Any canister with this shape can be effective. Carry Mace wherever you go.

JUST HIT THE CIRCLE! MSI mace MK-X MACE 0 12288 50110 1 Net weight 21 grams

MACE SECURITY INTERNATIONAL, INC., ET AL. 175

168 Complaint

EXHIBIT C

POLICE-PROVEN mace® ...just in case.

CAUTION: STRONG IRRITANT CONTENTS UNDER PRESSURE See additional cautions on back of card

Mace is designed to fit your hand for quick and accurate firing.

Mace causes profuse tearing and a painful burning sensation.

Mace wears off in about 20 minutes without causing permanent harm.

TIME TO PUT YOU WELL OUT OF HARM'S WAY.

Complaint EXHIBIT D

POLICE-PROVEN mace®

NEW YORK...DALLAS PHILADELPHIA...

Today over 4,000 police departments across America depend upon the proven Mace formula for protection against assault. So do millions of women all across America — nurses, teachers, college students, housewives, working women, seniors, store owners — anyone concerned with personal safety.

SHOULDN'T YOU?

Carry Mace®...Just in Case.

• Each unit fires about 20 one-half second bursts. • Effective range up to 12 feet.

• Every unit "test-fired" before shipping • Built-in belt clip & key chain.

• Easy-to-follow instructions included.

• 10 Day Money-Back Guarantee.

CAUTION: STRONG IRRITANT CONTENTS UNDER PRESSURE Active ingredient, approximately 1% Phenylchloromethylketone (CN) in a volatile, non-flammable vehicle. STRONG IRRITANT affecting eyes, respiratory areas and skin. In case of exposure, rinse eyes with water, and consult a physician. Wash skin with soap and water and expose to fresh air. If irritation persists, consult a physician. Users with heart disease or other conditions which might be aggravated by a strong irritant should not use. DO NOT PUNCTURE, INCINERATE OR STORE AT TEMPERATURE ABOVE 120° F. KEEP OUT OF REACH OF CHILDREN. Not to be sold to minors or where prohibited by law. Use care with intoxicated, drugged, demented, enraged or other persons having reduced sensitivity to pain. Refer to instructions for additional information. Manufactured by Mace Security, Inc., 160 Benmont Avenue, Bennington, VT 05201. Made in U.S.A.

Accuracy Is Not Essential.

JUST AIM, SPRAY...

WALK AWAY! Unique finger-grip design allows you to draw, aim and spray in one easy motion.

Accurate even under stress. You can be effective. Carry Mace wherever you go.

JUST HIT THE CIRCLE

MK-VI MACE 0 22188 80109 5 Net weight 34 grams

MACE SECURITY INTERNATIONAL, INC., ET AL. 177 Complaint

EXHIBIT E

Personal Security PRODUCTS TO KEEP YOU, YOUR FAMILY & HOME SAFE

I LIKE IKE.

LEAVE IT TO BEAVER.

THE BEACH BOYS.

Dear Friend,

Remember those days? A time when we never locked our doors, when schools were safe...and it was safe to walk down the street day or night. I remember.

But times have changed. Today, children's pictures can be found on milk cartons, drugs are everywhere, and your chances of becoming a victim are greater than ever.

Introducing Personal Security- A Catalog of Valuable Products To Keep You And Your Family Safe.

...to keep you and your family safe. That is our commitment to you. Wherever you are at home, at work, anywhere we'll provide you with products to keep you safe.

We'll talk to the experts, research new technology and test new products. Then we'll bring them into your home through the pages of Personal Security. So that you can make informed decisions about the best way to provide you and your family with security and, most of all, peace of mind.

So why not relax with our new catalog? And when you spot something you need, just complete and return our convenient order form. Or better yet, call our Toll Free Hotline: 1-800-444-8483. We'll take care of the rest, including delivery right to your door. It couldn't be any easier.

Cordially, Jim Kardas

Jim Kardas

P.S. If you like our catalog perhaps you would like to become a Personal Security distributor. Many who have are now making money selling our products to others. We also offer a full training program for groups and organizations. To learn more, please call Toll Free 1-800-444-8483 and ask for Dave McMullen. Thank you.

Original Mace® Shoots A Powerful "STREAM-OF-PROTECTION"

Up To 12 Feet!

Helps You Avoid Contact With An Aggressor!

OUR PROMISE TO YOU: Satisfaction Guaranteed Or Your Money Back.

"Every Woman ...Just In Case."

Mary Sommer New York, NY

Mary Sommer knows about Mace. She used it to repel an attacker in a subway tunnel. That's why she believes every woman today should carry Mace. And so do I. Because there is no equal to the protection Original Mace offers. Or the peace of mind one feels when carrying it.

America's Most Humane Protection.

Mace is a CN-based tear gas developed in the 1960's as a humane means of self-protection for the law enforcement community. For over twenty years it has been the policeman's first line of defense against assault.

Today Mace is carried by women all across America. Working women, seniors, housewives, joggers, cyclists, college students and many others. Women with a concern for personal safety.

Mace Is Proven Safe.

According to Gerald S. Arenberg, Executive Director of the National Association of Chiefs of Police, "Mace is ideal for self-protection because it is non-lethal. Its non-toxic formula causes profuse tearing and a painful burning sensation. And yet, in over 20 years of on-street use by police and civilians alike, Mace has never caused a single substantiated case of permanent injury. It's the safest, most effective and humane protection available.

Accuracy Is Not Essential! Unique finger-grip design allows you to draw, aim and spray in one easy motion. Any contact with the upper torso can be effective. Just one squirt can instantly stop an assailant and keep him incapacitated for up to 20 minutes. The Mace formula is non-flammable and unaffected by temperature. A patented flip-top dispenser prevents accidental discharge. Each unit fires

There's Only ONE Mace! Since its introduction over twenty years ago, Mace has come to be the most effective and humane self-protection device available today.

Don't be fooled by cheap imitations.

Insist on Mace.

Mace is the original.

Shouldn't you?

Complaint 117 F.T.C.

EXHIBIT E

Should Carry Mace®

How often have you or your wife or daughter been afraid to walk to the car? Or to move about in a parking lot? Or in a strange neighborhood or one of those dark streets? For those occasions, Mace can give you peace of mind.

about 20 one-half second bursts. Effective range up to 12 feet! Measures only 4" high. Compact size fits neatly into pocket, purse, glove compartment or nightstand. One-year warranty. Instructions included.

Who Should Carry Mace? Anyone who is concerned with personal safety: working woman, housewives, runners, cyclists, nurses, senior citizens, delivery people and others. Including men, who buy not just for self-protection, but as gifts for others. In fact, many people have discovered Mace to be a thoughtful gift for a spouse, girlfriend, parent, aunt, children or college-bound daughter.

How Much Mace Should You Buy? Depending upon your lifestyle you may find that a single Mace will provide the peace of mind you desire. However, for total protection, we recommend that you consider three Mace: Mace for your car, home and purse. And if you know others who would enjoy the peace of mind Mace offers, why not order now. The more you buy, the more you save.

- 1 Mace Spray, Max 8, Mace $5.95 - 2 Mace Max 8, Mace $10.95 (SAVE $1.95) - 3 Mace Max 8, Mace $14.95 (SAVE $2.90) - 4 Mace Max 8, Mace $18.95 (SAVE $4.85) - 5 Mace Max 8, Mace $22.95 (SAVE $6.80)

"Mace has always been the foremost leader for self-protection" - Doug Lamb Co-Owner American Mace Prevention

"Mace is ideal protection because it is non-lethal" - Gerald S. Arenberg Executive Director National Association of Chiefs of Police

"We recommend Mace to all our members"

- Chris Bunker Connie's Mace Association

Mace is the woman's weapon. It's gentle. Mace is the most effective and humane self-protection ever developed. It's used by more than 1,500 police departments. Mace is the perfect gift for someone you love.

Buy A Case of Mace Factory Direct And Save...Get a FREE Gift! We're often asked by the number of customers who want to buy Mace in larger quantities. So we've made special arrangements to offer Mace in case lots. Each case contains 24 Mace Max 8 units. And we pay the freight. So if you're interested in buying a case, for yourself, or as a fund raiser for your organization, or as a business gift, or as a tax deductible contribution, just send us your name and address and we'll rush you all the details. And if you order within 30 days, we'll send you a free gift. Just write "Case Offer" on the coupon below.

Original Mark 8 Mace

mace MACE SECURITY PRODUCTS

CALL TOLL FREE 1-800-321-0100

MACE SECURITY INTERNATIONAL, INC., ET AL. 179 168 Complaint EXHIBIT F

**The World Today Can Be An Uncertain Place** # Would You, Or Someone You Love, Feel Safer Carrying Mace®?

According to crime experts, one in three women will be a victim of physical attack during her lifetime. When you read statistics like this, do you ever think "It could never happen to me or someone I love"? Many people do. But the truth is, it can happen. And it does.

Especially today, because the world we live in is an uncertain place that holds many risks. Parking garages. Dark streets and parking lots near your home or work can be uncomfortable at night. And traveling to new places requires caution and vigilance. That's why you, or those you love, should carry Mace. It provides real protection against the unexpected. And peace of mind.

**Helps You Avoid Contact With An Aggressor!**

The police-proven Mace formulation can instantly stop an assailant...UP TO 12 FEET AWAY and keep him incapacitated for up to 30 minutes. And since Mace doesn't cause permanent injury, you won't be afraid to use it if that time ever comes.

Non-toxic formulation is safe to use. Causes profuse tearing and painful burning sensation. Not affected by temperature. Patented flip-top dispenser prevents accidental discharge. Each unit fires about 30 one-half second bursts. Features built-in belt clip and key chain. Instructions included. One-year limited warranty.

Buy Several For Yourself & Others **SAVE UP TO 33%!** (Also Makes A Thoughtful Gift.)

Buy three for your car, home and pocket. Also makes a thoughtful gift for your spouse, girlfriend, college-bound daughter, parents, people you work with and others. The more you buy the more you save. Order Original Mace today!

■ D-3724 Original Mark X Mace $16.95 ■ C-3724 Three Mace For Only $34.00 (SAVE $6.85) ■ B-3724 Six Mace For Only $75.00 (SAVE $26.70) ■ B-3915 12-Unit Case Only $135.00 (SAVE $68.40) ■ B-3725 Mace Inert Training Unit $6.95 (Free With 12-Unit Case Purchase)

For more on Mace, please see page 2.

How often have you felt uncomfortable walking down the street, in a parking garage or alone in your own home? Mace can give you real protection. And peace of mind.

Palm-Sized - Protection For Car, Home & Pocket!

[Stamp] BULK RATE U.S. POSTAGE PAID PERMIT NO. 1081

Personal Security 1041 Commonwealth Avenue Boston, MA 02215

Current Resident Or:

**NEED A GIFT IDEA?** You'll find many unique and affordable gifts in the Mace catalog. For your free copy, just write "Mace Catalog" on the coupon below, or call toll-free 1-800-446-6223.

**TOLL-FREE ORDERING** **CREDIT CARD USERS CALL** **1-800-446-6223** **24-HOUR SERVICE** (Or fax your order to 802-442-3823 at any time) For questions about merchandise or orders call Customer Service (802) 442-4933

[Logos: NOVUS, VISA, MasterCard]

Decision and Order 117 F.T.C.

DECISION AND ORDER

The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft of complaint which the New York Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act; and

The respondents, their attorney, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents 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 respondents that the law has been violated as alleged in such complaint, or that the facts as alleged in such complaint, other than jurisdictional facts, are true, and waivers and other provisions as required by the Commission's Rules; and

The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the said 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 MACE Security International, Inc. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Delaware, with its corporate office and principal place of business located at 160 Benmont Avenue, Bennington, Vermont. Respondent was formerly doing business as Mark Sport, Inc.

Respondent Personal Security, Inc. is a corporation organized, existing, and doing business under and by virtue of the laws of the State of Vermont, with its corporate office and principal place of business located at 160 Benmont Avenue, Bennington, Vermont.

Respondents Jon E. Goodrich and Robert P. Gould are officers and directors of said corporations. They formulate, direct, and

MACE SECURITY INTERNATIONAL, INC., ET AL. 181

168 Decision and Order

control the policies, acts, and practices of said corporations, and Mr. Goodrich's principal office and place of business are located at the above address. Mr. Gould has an office at and his principal place of business is located at the above address. Respondent James Kardas is an officer and director of Personal Security, Inc. Mr. Kardas formulates, directs, and controls the policies, acts, and practices of said corporation, and his principal office and place of business are located at the above stated address. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER

DEFINITIONS

A. For purposes of this order, "competent and reliable scientific 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. B. For purposes of this order, "MACE" shall mean any chemical self-protection product marketed for civilian use that contains as its active ingredient approximately 1% phenylchloromethylketone (a.k.a. chloroacetophenone or CN). C. For purposes of this order, "chemical self-protection product" shall mean any chemical self-protection product marketed for civilian use, including but not necessarily limited to products containing phenylchloromethylketone (a.k.a. chloroacetophenone or CN), orthochlorobenzal-nalononitrile (CS) or oleoresin capsicum (OC). D. For purposes of this order, "distributor" shall mean any person or entity that, since January 1, 1991, has made at least one purchase from respondents of 12 or more units of MACE or of fewer units of MACE for which the total purchase price exceeded $100.00.

It is ordered, That respondents MACE Security International, Inc., a corporation, its successors and assigns, and its officers and

Decision and Order 117 F.T.C.

directors; Personal Security, Inc., a corporation, its successors and assigns, and its officers and directors; Jon E. Goodrich, individually and as an officer and director of MACE Security International, Inc. and Personal Security, Inc.; Robert P. Gould, individually and as an officer and director of MACE Security International, Inc. and Personal Security, Inc.; and James Kardas, individually and as an officer and director of Personal Security, Inc.; and respondents' agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of MACE or any chemical self-protection 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:

A. One or more sprays of such product will stop an assailant; B. Any contact with the upper torso by a spray of such product will stop an assailant; or C. Use of such product will instantly stop an assailant;

unless such representation is true and, at the time of making such representation, respondents possess and rely upon competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, that substantiates such representation.

II.

MACE SECURITY INTERNATIONAL, INC., ET AL. 183

168 Decision and Order

protection 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:

A. One or more sprays of such product will keep an assailant incapacitated for up to or about 20 minutes or any other period of time; B. The effectiveness of such product for civilian self-protection has been proven in use by police forces; C. Four out of five or any other number of police officers in the United States carry such product; or D. Over 4000 police departments or any other number of police departments in the United States use such product for protection against assault;

unless at the time of making such representation, respondents possess and rely upon competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, that substantiates such representation.

III.

It is further ordered, That respondents MACE Security International, Inc., a corporation, its successors and assigns, and its officers and directors; Personal Security, Inc., a corporation, its successors and assigns, and its officers and directors; Jon E. Goodrich, individually and as an officer and director of MACE Security International, Inc. and Personal Security, Inc.; Robert P. Gould, individually and as an officer and director of MACE Security International, Inc. and Personal Security, Inc.; and James Kardas, individually and as an officer and director of Personal Security, Inc.; and respondents' agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of MACE or any chemical self-protection 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, the relative or absolute efficacy, benefits, usage, performance, or

Decision and Order 117 F.T.C.

attributes of MACE or any chemical self-protection product, unless at the time of making such representation, respondents possess and rely upon competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, that substantiates such representation.

IV.

It is further ordered, That respondents MACE Security International, Inc., a corporation, its successors and assigns, and its officers and directors; Personal Security, Inc., a corporation, its successors and assigns, and its officers and directors; Jon E. Goodrich, individually and as an officer and director of MACE Security International, Inc. and Personal Security, Inc. Robert P. Gould, individually and as an officer and director of MACE Security International, Inc. and Personal Security, Inc.; and James Kardas, individually and as an officer and director of Personal Security, Inc.; and respondents agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of MACE or any substantially similar 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, the effectiveness of MACE or any substantially similar product unless respondents disclose in each advertisement in which the representation is made, clearly and prominently, the following statement:

A. In a print advertisement:

"CAUTION: MACE MAY NOT BE EFFECTIVE AGAINST ARMED ASSAILANTS. MACE may take several seconds to work and may not work on enraged, drugged, or intoxicated people."

B. In a television, cablecast, videotape, or radio advertisement:

"CAUTION: MACE MAY NOT BE EFFECTIVE AGAINST ARMED ASSAILANTS AND ENRAGED, DRUGGED, OR INTOXICATED PEOPLE."

Nothing contrary to, inconsistent with, or in mitigation of the above disclosures shall be used in any advertisement in any medium.

MACE SECURITY INTERNATIONAL, INC., ET AL. 185

168 Decision and Order

For purposes of this order, “clearly and prominently” as used herein shall mean as follows:

(a) In a television, cablecast, and videotape release, the disclosure shall be presented simultaneously in both the audio and video portions of the advertisement. The audio disclosure shall be delivered in a volume and cadence and for a duration sufficient for an ordinary consumer to hear and comprehend it. The video disclosure shall be of a size and shade, and shall appear on the screen for a duration sufficient for an ordinary consumer to read and comprehend it. (b) In a print advertisement, the above disclosure shall be printed in a typeface and color that are clear and prominent and in close proximity to the representation that triggers the disclosure. (c) In a radio advertisement, the disclosure shall be delivered in a volume and cadence and for a duration sufficient for an ordinary consumer to hear and comprehend it.

It is further ordered, That respondents MACE Security International, Inc., a corporation, its successors and assigns, and its officers and directors; Personal Security, Inc., a corporation, its successors and assigns, and its officers and directors; Jon E. Goodrich, individually and as an officer and director of MACE Security International, Inc. and Personal Security, Inc.; Robert P. Gould, individually and as an officer and director of MACE Security International, Inc. and Personal Security, Inc.; and James Kardas, individually and as an officer and director of Personal Security, Inc.; and respondents' agents, representatives and employees, directly or through any corporation, subsidiary, division or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of MACE or any substantially similar product, in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, shall disclose the following statement on a product insert enclosed in each product package:

“CAUTION: MACE MAY NOT BE EFFECTIVE AGAINST ARMED ASSAILANTS. MACE may take several seconds to work and may not work on enraged, drugged, or intoxicated people.”

Decision and Order 117 F.T.C.

On the product insert, the disclosure shall be printed in a typeface and color that are clear and prominent and shall appear before all written text, other than the name of the product or product slogans.

It is provided, however, it will not be considered a violation of this order provision V for respondents to use, until May 8, 1994, the product insert identified as Exhibit 1 of this order (the "in-print insert") in satisfaction of the product insert disclosure obligation specified in this order provision V, provided that:

1) The in-print inserts were printed prior to November 8, 1993; 2) The text, "You have purchased a MACE unit which contains the same formulation that has been proven in over twenty years of use by police departments. In fact, it has been chosen by more police departments than all other tear gas aerosols combined," shall be blacked out or otherwise rendered completely illegible; and 3) The text, "Do not use your MACE unit on an assailant who appears to be armed. Even though it may take only a few seconds for the MACE formulation to take effect, an armed assailant might use his weapon during those few seconds," shall be highlighted in yellow to increase its prominence.

VI.

1) Send, by first class certified mail, return receipt requested, to each distributor of MACE with which they have done business since January 1, 1991, a copy of Appendix A of this order; and 2) Send, by first class mail, to each non-distributor who purchased MACE from respondents since January 1, 1991, a copy of Appendix B of this order.

MACE SECURITY INTERNATIONAL, INC., ET AL. 187

168 Decision and Order

VII.

It is further ordered, That for five (5) years after the last date of dissemination of any representation covered by this order, respondents MACE Security International, Inc. and Personal Security, Inc., or their successors and assigns, shall maintain and upon request make available to the Federal Trade Commission for inspection and copying:

A. All materials that were relied upon in disseminating such representation; B. All tests, reports, studies, surveys, demonstrations or other evidence in their possession or control that contradict, qualify, or call into question such representation, or the basis relied upon for such representation, including complaints from consumers; and C. All return receipts required by order provision VI.

VIII.

It is further ordered, That respondents MACE Security International, Inc. and Personal Security, Inc. 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, the filing of a bankruptcy petition, or any other change in the corporation(s) that may affect compliance obligations arising out of this order.

IX.

It is further ordered, That respondents Jon E. Goodrich, Robert P. Gould, and James Kardas shall, for a period of ten (10) years from the date of issuance of this order, notify the Commission within thirty (30) days of the discontinuance of his present business or employment and of his affiliation with any new business or employment in the self-protection industry. Each notice of affiliation with any new business or employment shall include respondent's new business address and telephone number, current home address, and a statement describing the nature of the business or employment and his duties and responsibilities.

Decision and Order 117 F.T.C.

It is further ordered, That respondents MACE Security International, Inc., Personal Security, Inc., Jon E. Goodrich, Robert P. Gould, and James Kardas shall:

A. Within thirty (30) days after service of this order, provide a copy of this order to each of respondents' current principals, officers, directors and managers, and to all personnel, agents, and representatives having sales, advertising, or policy responsibility with respect to the subject matter of this order. B. For a period of ten (10) years from the date of issuance of this order, provide a copy of this order to each of respondents' principals, officers, directors, and managers, and to all personnel, agents, and representatives having sales, advertising, or policy responsibility with respect to the subject matter of this order who are associated with respondents or any subsidiary, successor, or assign, within three (3) days after the person assumes his or her position.

XI.

It is further ordered, That respondents shall, within sixty (60) days after the date of service of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.

MACE SECURITY INTERNATIONAL, INC., ET AL. 189

168 Decision and Order

EXHIBIT 1

LEGAL REQUIREMENTS "Pepper mace" use of MACE may be regulated or prohibited by law in some jurisdictions. It is the buyer's responsibility, under such law, to ascertain and comply with any and all such legal requirements. MACE use by a person not legally entitled to possess it may be a violation of law.

TESTING FOR REMAINING CONTENTS 1. Place the unit upright on the bottom of a large flat bottom glass or cup. See Figure 2. 2. Slowly pour alcohol (minimum of 70% alcohol such as rubbing alcohol or ethanol) into the glass until the unit is half submerged. See Figure 2. 3. Look directly at the unit. If the unit is still charged, the alcohol will become cloudy as the alcohol reacts with the formulation. The darker the color, the more formulation remaining. If the unit is empty, the alcohol will remain clear. If the unit is partially full, the alcohol will become cloudy. See Figure 2. 4. Remove and shake out excess alcohol.

NOTE: If alcohol does not react, throw away unit. It is empty.

MACE UNIT SAFETY AND STORAGE It is safe to carry the MACE unit in a pocket or purse. The safety cap prevents accidental discharge. However, do not carry the MACE unit where it can be accidentally activated. The MACE unit is not a toy. It should not be used by children or adults who have not read the instructions. The MACE unit should not be stored in a hot place, such as a closed car in the summer, or in a place where the temperature may exceed 120°F. Do not store the MACE unit in a freezer. Do not puncture or incinerate the MACE canister. Do not attempt to repair or disassemble the MACE unit. If the MACE unit is damaged or if the safety cap is lost, return it to MACE for replacement.

CARE OF YOUR MACE UNIT Each MACE unit has an expiration date printed on the unit. When the unit has reached its expiration date, it should be replaced. The formulation in the unit may be under pressure and may leak. If the unit is exposed to extreme heat, the unit may leak. If the unit is damaged, it may leak. If the unit leaks, it may not function properly. If the unit is not functioning properly, it should be replaced. The MACE unit should be replaced every 3 years. The MACE unit should be inspected periodically for leaks or damage. If the unit is damaged, it should be replaced. The MACE unit should be stored in a cool, dry place. The MACE unit should not be stored in a place where the temperature may exceed 120°F. Do not store the MACE unit in a freezer. Do not puncture or incinerate the MACE canister. Do not attempt to repair or disassemble the MACE unit. If the MACE unit is damaged or if the safety cap is lost, return it to MACE for replacement.

LIMITED WARRANTY MACE SECURITY INTERNATIONAL, INC. warrants to the original purchaser that this MACE unit will be free from defects in material and workmanship for a period of one (1) year from the date of purchase. If this MACE unit is defective, MACE SECURITY INTERNATIONAL, INC. will replace it free of charge. This warranty does not cover damage caused by misuse, abuse, neglect, accident, alteration, or improper storage. This warranty gives you specific legal rights, and you may also have other rights which vary from state to state. IN NO EVENT SHALL MACE SECURITY INTERNATIONAL, INC. BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES. Some states do not allow the exclusion or limitation of incidental or consequential damages, so the above limitation or exclusion may not apply to you.

MACE SECURITY INTERNATIONAL, INC. SHALL NOT BE LIABLE FOR ANY DAMAGES RESULTING FROM THE USE OF THIS PRODUCT. THE USER ASSUMES ALL RISKS AND LIABILITY ARISING OUT OF THE USE OF THIS PRODUCT. MACE SECURITY INTERNATIONAL, INC. SHALL NOT BE LIABLE FOR ANY SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES, INCLUDING, BUT NOT LIMITED TO, DAMAGES FOR PERSONAL INJURY, PROPERTY DAMAGE, OR ECONOMIC LOSS, ARISING OUT OF THE USE OF THIS PRODUCT. THIS WARRANTY IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. Some states do not allow limitations on how long an implied warranty lasts, so the above limitation may not apply to you.

The MACE unit is a self-defense device. It is not a toy. It should not be used by children or adults who have not read the instructions. The MACE unit should not be stored in a hot place, such as a closed car in the summer, or in a place where the temperature may exceed 120°F. Do not store the MACE unit in a freezer. Do not puncture or incinerate the MACE canister. Do not attempt to repair or disassemble the MACE unit. If the MACE unit is damaged or if the safety cap is lost, return it to MACE for replacement.

MACE is a registered trademark of MACE SECURITY INTERNATIONAL, INC.

MADE IN U.S.A.

PRINTED IN U.S.A.

MACE SECURITY INTERNATIONAL, INC.

160 BENMONT AVENUE BENNINGTON, VT 05201 1-800-255-2634 1-802-447-1503

CAUTION STRONG IRRITANT CONTENTS UNDER PRESSURE

CONDITIONS OF SALE MACE SECURITY INTERNATIONAL, INC. sells this MACE unit for self-defense. It is the buyer's responsibility to ascertain and comply with any and all applicable laws and regulations regarding the purchase, possession, and use of this product. MACE SECURITY INTERNATIONAL, INC. assumes no liability for the use of this product. The buyer assumes all risks and liabilities arising out of the use of this product. MACE SECURITY INTERNATIONAL, INC. shall not be liable for any damages resulting from the use of this product. This product is sold "as is" and "with all faults." MACE SECURITY INTERNATIONAL, INC. makes no warranties, express or implied, including, but not limited to, the implied warranties of merchantability and fitness for a particular purpose. Some states do not allow the exclusion or limitation of incidental or consequential damages, so the above limitation or exclusion may not apply to you.

WARNING: The MACE unit is a self-defense device. It is not a toy. It should not be used by children or adults who have not read the instructions. The MACE unit should not be stored in a hot place, such as a closed car in the summer, or in a place where the temperature may exceed 120°F. Do not store the MACE unit in a freezer. Do not puncture or incinerate the MACE canister. Do not attempt to repair or disassemble the MACE unit. If the MACE unit is damaged or if the safety cap is lost, return it to MACE for replacement.

1. The MACE unit is a self-defense device. It is not a toy. It should not be used by children or adults who have not read the instructions. The MACE unit should not be stored in a hot place, such as a closed car in the summer, or in a place where the temperature may exceed 120°F. Do not store the MACE unit in a freezer. Do not puncture or incinerate the MACE canister. Do not attempt to repair or disassemble the MACE unit. If the MACE unit is damaged or if the safety cap is lost, return it to MACE for replacement.

2. The MACE unit is a self-defense device. It is not a toy. It should not be used by children or adults who have not read the instructions. The MACE unit should not be stored in a hot place, such as a closed car in the summer, or in a place where the temperature may exceed 120°F. Do not store the MACE unit in a freezer. Do not puncture or incinerate the MACE canister. Do not attempt to repair or disassemble the MACE unit. If the MACE unit is damaged or if the safety cap is lost, return it to MACE for replacement.

3. The MACE unit is a self-defense device. It is not a toy. It should not be used by children or adults who have not read the instructions. The MACE unit should not be stored in a hot place, such as a closed car in the summer, or in a place where the temperature may exceed 120°F. Do not store the MACE unit in a freezer. Do not puncture or incinerate the MACE canister. Do not attempt to repair or disassemble the MACE unit. If the MACE unit is damaged or if the safety cap is lost, return it to MACE for replacement.

4. Do not use this MACE unit on any assailant who appears to be under the influence of drugs or alcohol. Do not use this MACE unit on any assailant who appears to be mentally unstable. Do not use this MACE unit on any assailant who appears to be physically incapacitated. Do not use this MACE unit on any assailant who appears to be a child. Do not use this MACE unit on any assailant who appears to be elderly. Do not use this MACE unit on any assailant who appears to be pregnant. Do not use this MACE unit on any assailant who appears to be in poor health. Do not use this MACE unit on any assailant who appears to be in a confined space. Do not use this MACE unit on any assailant who appears to be in a crowded area. Do not use this MACE unit on any assailant who appears to be in a moving vehicle. Do not use this MACE unit on any assailant who appears to be in a position where the use of MACE could cause the assailant to fall. Do not use this MACE unit on any assailant who appears to be in a position where the use of MACE could cause the assailant to be injured. Do not use this MACE unit on any assailant who appears to be in a position where the use of MACE could cause the assailant to be killed.

HOW TO USE YOUR MACE UNIT 1. When you hear the MACE unit, hold it in your hand with the safety cap pointing down. See Figure 1. 2. Remove the safety cap. See Figure 1.

3. Point the MACE unit at the assailant. See Figure 1. 4. Press the button. See Figure 1.

5. Spray the assailant. See Figure 1.

6. The MACE unit will spray for 2-3 seconds. See Figure 1. 7. The MACE unit will spray a stream of formulation. See Figure 1. 8. The MACE unit will spray a stream of formulation. See Figure 1. 9. The MACE unit will spray a stream of formulation. See Figure 1. 10. The MACE unit will spray a stream of formulation. See Figure 1.

1. When you hear the MACE unit, hold it in your hand with the safety cap pointing down. See Figure 1. 2. Remove the safety cap. See Figure 1.

3. Point the MACE unit at the assailant. See Figure 1. 4. Press the button. See Figure 1.

5. Spray the assailant. See Figure 1.

2. Remove the MACE unit from the holster. See Figure 1. 3. Point the MACE unit at the assailant. See Figure 1. 4. Press the button. See Figure 1.

5. Spray the assailant. See Figure 1.

3. If you have to use your MACE unit, spray only very short bursts at the assailant's face. Spraying for a long period of time will empty the MACE unit. If the assailant is not affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. If the assailant is affected, spray again. 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Decision and Order 117 F.T.C.

APPENDIX A

[To Be Printed On MACE Security International, Inc. Letterhead]

Dear [name of distributor]:

MACE Security International, Inc. (“MSI”) and Personal Security, Inc. (“PSI”) have entered into a consent agreement with the Federal Trade Commission (“FTC”) to stop making certain representations about the effectiveness of MACE with 1% CN and other chemical self-protection products unless the representations are true and adequately substantiated. The FTC alleged that the advertising for MACE made the following false and unsubstantiated representations:

(1) That one spray of MACE will stop an assailant; (2) That any contact with the upper torso by a spray of MACE will stop an assailant; and (3) That use of MACE will instantly stop an assailant.

The FTC also alleged that MSI and PSI, while making effectiveness claims, failed to disclose adequately that (a) it may take several seconds for the effects of MACE to begin, and (b) MACE may not be effective on many assailants including those who are armed, enraged, drugged, intoxicated, or otherwise desensitized.

Finally, the FTC alleged that MSI and PSI did not possess adequate substantiating evidence for the following representations:

(1) That MACE will keep an assailant incapacitated for up to or about 20 minutes; (2) That the effectiveness of MACE for civilian self-protection has been proven in use by police forces; (3) That four out of five police officers in the United States carry MACE; and (4) That over 4000 police departments in the United States use MACE for protection against assault.

The products covered by this consent agreement include MACE and other chemical self-protection products. You were previously supplied with promotional materials or advertising copy that make the above representations. You should stop using or relying on these materials as the basis for your own advertising unless and until we provide you with adequate substantiation for the representations or provide new materials or advertising copy that comply with the consent agreement.

Sincerely,

Jon E. Goodrich President, MACE Security International, Inc. and Personal Security, Inc.

MACE SECURITY INTERNATIONAL, INC., ET AL. 191

168 Decision and Order

APPENDIX B

[To Be printed On MACE Security International, Inc. Letterhead]

Dear Consumer:

Our records indicate that you purchased MACE chemical self-protection spray from our company. This is to advise you that MACE Security International, Inc. (“MSI”) and Personal Security, Inc. (“PSI”) have entered into a consent agreement with the Federal Trade Commission (“FTC”) to stop making certain representations about the effectiveness of MACE with 1% CN and other chemical self-protection products unless the representations are true and adequately substantiated. The FTC alleged that the advertising for MACE made the following false and unsubstantiated representations:

(1) That one spray of MACE will stop an assailant; (2) That any contact with the upper torso by a spray of MACE will stop an assailant; and (3) That use of MACE will instantly stop an assailant.

The FTC also alleged that MSI and PSI, while making effectiveness claims, failed to disclose adequately that 1) it may take several seconds for the effects of MACE to begin, and 2) MACE may not be effective on many assailants including those who are armed, enraged, drugged, intoxicated, or otherwise desensitized. Finally, the FTC alleged that MSI and PSI did not possess adequate substantiating evidence for the following representations:

The products covered by this consent agreement include MACE and other chemical self-protection products. We advise that you limit your use of MACE in accordance with these restrictions:

(1) MACE may not be effective against armed assailants. (2) MACE may take several seconds to work. (3) MACE may not work on enraged, drugged, or intoxicated assailants.

Sincerely,

Jon E. Goodrich President, MACE Security International, Inc. and Personal Security, Inc.

Modifying Order 117 F.T.C.

IN THE MATTER OF

ARKLA, INC.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 7 OF THE CLAYTON ACT AND SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3265. Consent Order, Oct. 10, 1989--Modifying Order, Mar. 28, 1994

This order grants a petition to reopen the proceeding and modifies the Commission's 1989 consent order (112 FTC 509) by modifying the description of the assets identified in paragraph I(j) and Schedule B of the order as the Arkla Pipeline Assets. The Commission concluded that changed conditions warranted reopening and modifying the order.

ORDER

Arkla, Inc. ("Arkla"), filed a "Petition To Reopen and Modify Consent Order, Request for Approval of Divestiture by Arkla, Inc., Required by Final Order, and Request for Expedited Consideration, Including Waiving the Public Comment Period" ("Petition"), in Docket C-3265 on March 2, 1994, pursuant to Section 5(b) of the Federal Trade Commission Act, 15 U.S.C. 45(b), and Section 2.51 of the Commission's Rules of Practice, 16 CFR 2.51.¹ In its Petition, Arkla requests that the Commission reopen the consent order issued on October 23, 1989 ("order"), and modify the description of the assets identified in paragraph I(j) and Schedule B of the order as the "Arkla Pipeline Assets." Arkla bases its request to reopen and modify the order on changed conditions of fact and law and the public interest. For the reasons discussed below, the Petition is granted.

I. Background

The order was issued by the Commission to remedy the alleged anticompetitive effects of Arkla's 1986 acquisition of a pipeline and right of way of the TransArk Transmission Company ("TransArk Assets"). The complaint alleged that the acquisition eliminated the

¹ Arkla previously filed a petition to reopen the order on December 6, 1993; Arkla withdrew the December petition when the current Petition was filed.

← 117 F.T.C. 156 · 117 F.T.C. 192 →