QVC, Inc.

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

IN THE MATTER OF QVC, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATIONS OF SEC. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3955; File No. 9823152 Complaint, June 14, 2000--Decision, June 14, 2000 This consent order addresses representations by respondent Quigley Corporation concerning the effectiveness of its Cold-Eeze Zinc Lozenges, Cold-Eezer Plus Zinc Gluconate Lozenges, and Kids-Eeze Bubble Gum (AKids- Eeze@) products. The consent order prohibits the respondent from making representations that its products prevent users from contracting colds and pneumonia; will treat allergies; will reduce the severity of colds in children; and that Kids-Eeze will reduce the severity of cold symptoms in children unless it possesses and relies upon competent and reliable scientific evidence that substantiates such representations. The consent order also prohibits the respondent from making any representation that any food, drug, or dietary supplement can or will cure, treat, or prevent any disease, or have any effect on the structure or function of the human body, unless it possesses and relies upon competent and reliable scientific evidence that substantiates the representation. Participants For the Commission: Daniel Kaufman, Lisa B. Kopchik, C. Lee Peeler and Michelle K. Rusk.

For the Respondent: Lewis Rose, Arent Fox Plotkin & Kahn, PLLC; Alan K. Palmer, Cooper, Carvin & Rosenthal; Glenn A. Mitchell, Stein, Mitchell & Mezines; and Ed Glynn, Venable, Baetjer, Howard & Civiletti, LLP.

COMPLAINT The Federal Trade Commission, having reason to believe that QVC, Inc., a corporation (Arespondent@), has violated the provisions of the Federal Trade Commission Act, and it appearing VOLUME 129 Complaint to the Commission that this proceeding is in the public interest, alleges:

1. Respondent QVC, Inc. (AQVC@) is a Delaware corporation with its principal office or place of business at 1200 Wilson Drive, West Chester, PA 19380. QVC operates two cable shopping services and is principally engaged in the marketing of a variety of consumer products by means of live, customerinteractive, televised sales programs and through its Internet Web site (www.qvc.com). QVC produces and disseminates advertising in the form of television programming that is disseminated through cable channels, broadcast stations and satellite dish receivers. This programming markets consumer products directly to viewers.

2. Respondent has advertised, offered for sale, sold and distributed dietary supplement products to the public, including Cold-Eezer Plus Zinc Gluconate Lozenges and Cold-Eeze Zinc Lozenges (hereinafter, collectively, "Cold-Eeze"). These products are Afoods@ and/or Adrugs@ within the meaning of Sections 12 and 15 of the Federal Trade Commission Act. 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. 4 Respondent has disseminated or has caused to be disseminated advertisements for Cold-Eeze, including but not limited to the attached Exhibits A through E, transcripts of television advertisements that appeared on QVC or Q2, home shopping cable channels run by QVC. These advertisements contain the following statements:

(a) Show Host: Chuck is back to tell us why Cold-Eezers are so fabulous. Perfect time of year to bring them back because we=ve got hay fever and allergies combined with an QVC, INC. 1837 Complaint upcoming cold season. Already I=m starting to see lots of sniffles around QVC.

(Exhibit A, p. 1).

(b) C. Phillips: To have a strategy to help fight the common cold. The kids are in school.

They are there right now.

. . .

C. Phillips: It=s a breeding ground. Everything they touch -- if the child before had a cold and they touch that spot and they touch their noses, its off to the races.

. . .

C. Phillips: So, there=s a couple of strategies. One is we can take one a day and try to see if you can beat the cold to what they call prophylactic or a preventive medicine.

Show Host: Excellent C. Phillips: Try taking one a day. Or if the child comes home and you see that it=s here . . . that they have symptoms, start treating the child. Take one every three hours. But everyone in the family should take a couple to prevent picking up that cold.

(Exhibit A, p. 2).

VOLUME 129 Complaint (c) Caller: I just wanted you to know I have a granddaughter that=s 12 years old, and ever since birth when she gets a cold, it turns into bronchitis.

. . .

Caller: And so I tried these . . . and it eliminated the cold almost immediately.

C. Phillips: Well, that=s really important because we have several customers we know through QVC and other places where they really can=t afford to have their children even get a cold because what happens is this exacerbated condition appears.

Show Host: Sure.

C. Phillips: You get bronchitis, pneumonias. And here=s an opportunity right in front of us to stop it right now.

Show Host: Right. Exactly.

(Exhibit A, p. 3).

(d) C. Phillips: The other thing is allergies. Show Host: Yes.

C. Phillips: We have many, many people who have reported to us that their usual choice is to have antihistamines, which make them dopey -- Show Host: Sure.

QVC, INC. 1839 Complaint C. Phillips: -- which make them incapable of functioning, some of them.

Show Host: Right.

C. Phillips: And we suggested they try it. So, we -they tried it and they take one and they see how long it lasts. It does diminish the symptoms of allergies.

(Exhibit A, p. 4).

(e) Show Host: Children can absolutely take this. In fact, I=ve heard . . . people will wrap one of these in cheesecloth and let their toddler suck on it so they can get the benefits from it without actually risking choking or anything.

C. Phillips: Um-hum. Yes.

(Exhibit A, p. 6).

(f) Caller: And I was glad to hear you say something about taking one a day as a preventative. We=ve never tried that before.

C. Phillips: Yes. Well, now=s the time to try it. Show Host: Yep.

C. Phillips: This is -- this is a strategy that may pay off big-time because it does help block as you saw in the animation. If we can stop the VOLUME 129 Complaint viruses we pick up over the day, they will not have a chance to even start.

Show Host: Perfect.

C. Phillips: Therefore, it will preclude you getting the cold.

Caller: Yes.

C. Phillips: And it=s a good strategy. We highly recommend people try that.

(Exhibit A, pp. 6-7) (g) Show Host: $18.25. Now, you get 60 lozenges. If you want to do it as a preventative measure, that's going to be a two month supply for you. If you want to stash some in your desk at work, stash some in the glove compartment in your car. Give a couple to your kids at school, because halfway through the day if they start to get that tickle in their throat, by taking one of these, they're already taking steps ahead to prevent getting sicker and to prevent spreading it to the rest of the family. So, these do last you a good long time.

But this is the time of year to stock up. Even if you're not suffering from hay fever and allergies, you know that cold season has pretty much started B (Exhibit A, p. 8).

QVC, INC. 1841 Complaint (h) C. Phillips: Well not only that, but zinc is a critical, very important mineral that we all need. A lot of us are deficient in it. . . . So, not only are you preventing a cold, but you=re getting that zinc which has been proven many times to have a positive effect on many conditions of the body.

Show Host: So you=re getting even healthier. C. Phillips: Absolutely.

(Exhibit A, p. 9).

(i) Show Host: And actually, if you take these on a preventative basis, you might not ever get a cold at all.

R. Pollack: Right.

(Exhibit B, p. 3) (j) Show Host: You know, my own grandma just got over pneumonia.

R. Pollack: Hmm.

Show Host: And I'm sending her these so that she can continue to take them, and as some of the people do, take them on a preventative basis.

R. Pollack: Right. Yes.

VOLUME 129 Complaint Show Host: I know that you have women in nursing homes -- R. Pollack: Right.

Show Host: -- and gentlemen in retirement communities who are taking these.

R. Pollack: Yes. And they find them very effective. (Exhibit B, p. 4).

(k) Show Host: If you're thinking, oh, well, cold season is over, we're already into April 1st, let me tell you, many, many, many of our viewers and studies will prove that the Cold-Eezers Plus are also effective on airborne allergies. If you are just about to get into ragweed season in your part of the country, if you are constantly dealing with allergic reactions to all of the pollen, if you have to deal with sinus infections because you're just breathing in the junk, this is the alternative. . . . What does Cold-Eezers Plus do? Well, it's the zinc. The zinc that's included within this product literally prohibits the virus or the airborne allergies from adhering to the tissue inside your nose.

(Exhibit C. p. 1) (l) Show Host: Well, and this is also going to help -- from what the information has told us and what from viewers tell us, this is going to help during your allergy season, because you guys have a lot of beautiful flowering plants out that way. So, this is going to QVC, INC. 1843 Complaint help if you are ever subject to allergy attacks.

(Exhibit C, p. 2) (m) Show Host: But I'm telling you something, I'm always sick. November of every year, I get strep throat, tonsillitis, I always get some sort of horrible throat ailment. And, you know, this year, I didn't get it and I really am a firm believer in these. I think that they're preventing me from getting sick.

(Exhibit D, p. 4).

(n) C. Phillips: We're suggesting to moms, get Cold-Eezer Plus in the house.

Show Host: Um-hum.

C. Phillips: Have it ready, and at the very first hint of a cold, start applying it. But even before then, try to use it as a preventative measure, so that if you know that the child has had an exposure, which is school, they can take one a day -- Show Host: Um-hum.

C. Phillips: -- to try to prevent getting a cold. Show Host: And you're talking about schools, I mean, everywhere you go, I mean, other children have it, other adults have it, you're just always exposed.

VOLUME 129 Complaint C. Phillips: Always exposed, exactly. You touch things.

Show Host: Um-hum.

C. Phillips: You touch a doorknob and you go up and you touch your nose, you've got the chance to have it.

Show Host: Right.

C. Phillips: So, what we're saying is, point one, if you don't have it in the house, get some in the house so that you have it to use at the very first sign of a cold.

Show Host: Um-hum.

C. Phillips: That's the important thing. This year we're saying, have it around and take one a day. Give your child one before he goes to school, that way, it can possibly prevent that child from getting a cold.

(Exhibit E, p. 2).

(o) C. Phillips: It=s also excellent for allergies. Show Host: Oh, really? C. Phillips: Absolutely.

(Exhibit E, p. 5) QVC, INC. 1845 Complaint 5. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that: (a) Daily use of Cold Eeze will prevent users from contracting colds.

(b) Use of Cold-Eeze will prevent users from contracting colds.

(c) Use of Cold Eeze will reduce the risk of contracting pneumonia.

(d) Use of Cold Eeze will relieve or reduce the symptoms of hay fever or allergies.

(e) Use of Cold Eeze will reduce the severity of cold symptoms in children.

(f) Daily use of Cold Eeze will prevent children from contracting colds.

6. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that, it possessed and relied upon a reasonable basis that substantiated the representations set forth in Paragraph 5, at the time the representations were made.

7. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representations set forth in Paragraph 5, at the time the representations were made. Therefore, the representation set forth in Paragraph 6 was, and is, false or misleading.

8. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices, and the VOLUME 129 Complaint making of false advertisements, in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act.

IN WITNESS WHEREOF, the Federal Trade Commission has caused its complaint to be signed by its Secretary and its official seal to be hereto affixed at Washington, D.C. this fourteenth day of June, 2000.

By the Commission, Commissioner Leary not participating. QVC, INC. 1847 Complaint Exhibits Complaint Exhibits AR«HRITIS TREATMENT BREAKTHROUGH http://home.earthlink.ne~cmocure/emocure A h e.. T Welcome to our online information a) ; center. The purpose of this web site rthritis treatment isto pve you the oppotaniy to learn about the arthritis treatment Breakthro ugh breakthrough called CMO™. It is being hailed by doctors, the media and its users as the cure for arthritis, It has taken 26 years to develope CMO™ and make it available to the public. We urge you to explore this site and learn about this revolutionary new substance.

Last Update: 01/31/98 Copyright ©1998 by CMO Distribution Centers of America Inc.

- ALL RIGHTS RESERVED Exhibit A CMO Distribution Center loft 07/14/98 16:11:

VOLUME 129 Complaint Exhibits HOW IT WORKS QVC, INC.

Complaint Exhibits htp:/home earthlink.net/~cmocure/emocure/cm00002.htm JOINT UNDER ATTACK ATTACK HALTED .

HOW IT WORKS In their October 28, 1996 issue, Time magazine reported on the three most promising developments in arthritis research. The scientists participating in all three projects are intensely focused on intervening in the immune system's involvement in the arthritic process. According to doctors, that is exactly what CMO™ does. It corrects the disease at the source in the immune system. Dr. Len Sands the director of the San Diego Clinic says: “Unlike everything else made for arthritis, you don’t have to take it over and over again. CMO™ is not a pain reliever, anti-inflammatory, cortisone or other steroid. CMO™ is an immunomodulator, it regulates your immune system. There’s never been anything like it before for arthritis. Instead of treating the symptoms of pain and inflammation, CMO™ capsules act directly against the cause of arthritis, the memory T-cells in your immune system that create the attacks against your joints. Once the error in your immune system is corrected by CMO™, the attacks on your joints stop and the pain and inflammation should be relieved forever. Once the problems are corrected, they stay corrected and you no longer need CMO™ or other arthritis remedies.” Last Update: 01/31/98 Copyright ©1998 by CMO Distribution Centers of America Inc. - ALL RIGHTS RESERVED rd loft 07/14/98 16:21:1 VOLUME 129 Complaint Exhibits QVC, INC. 1851 Complaint Exhibits WHY IT'S DIFFERENT http://name.earthlink.ney~cmocure/emocure/cm00003 htm cheese and chocolate. This treatment is accepted by the modern medical community. It is natural, drug free and non-toxic.

PERMANENT TAKE CMO™ ONLY ONCE One bottle of capsules is all you should ever need for relief from the symptoms of arthritis for the rest of your life. Most affected persons need to take CMO™ for only a couple of weeks. No further treatment or medicines are needed, not even CMO™. Once CMO™ has done it's work stopping arthritis the benefits continue for long periods of time as your body repairs and reverses the damage done by arthritis. . Last Update: 01/31/98 Copyright ©1998 by CMO Distribution Centers of America Inc, - ALL RIGHTS RESERVED 2of2 07/14/98 16:12:1 VOLUME 129 Complaint Exhibits What do doctors say about CMO? lof! QVC, INC.

Complaint Exhibits What do doctors say about CMO? .

Dr. Douglass wrote in his newsletter: “A New Miracle Cure for Arthritis ...now we have a new star on the horizon that promises as much (or more) than the old sure-cures.” Dr. Muller of Ferndale, Mich. says there’s a cure. He knows, he’s taken it. Dr. wareee Muller had osteoarthritis for 30 years. Bravely he forged ahead into the tit bs naturopathic remedy and tried CMO™. Dr. Muller is no longer troubled by - arthritis.

Dr. Hunt was so impressed by CMO™ he wrote a book called “Boom, You're Well”. In that book he says: “...cheumatoid arthritis damages tissues, causes extreme suffering, and premature death. ...If you have rheumatoid arthritis, or you know someone who has it, then you know I am reporting a miracle ... A MIRACLE.”

Dr. Sands the director of the San Diego Clinic knows there’s a cure. He’s taken it and now he says, “I was rescued from arthritis”. In fact that is the name of his forthcoming book about CMO™. In that book he says, “The arthritic process can be halted. Arthritis can be reversed. The pain and " inftemumaticn can be relieved. And it’s all been done without any harmful side B effects.” .

+ Last Update: 01/31/98 Copyright ©1998 by CMO Distribution Centers of America Inc. - ALL RIGHTS RESERVED http://name.earthlink.neu~cmocure/cmocure/em0 100] herr 07/14/98 16:21:

VOLUME 129 Complaint Exhibits QVC, INC. 1855 Complaint Exhibits What are people saying about CMO? help://home.earthlink new—cmocure/cmocure/cm01003.htm What are people saying about CMO? .

“It’s a miracle! Ten years with arthritis ... three in a wheelchair ... and now I’ve got a completely normal life again. Just watch me make up for lost time.” “As crippled as I was, I hadn’t worn out a pair of shoes in seven years. Now I’m out shopping for them again all by myself. My whole life has made a complete about face.” “Even as a doctor, I find CMO™ miraculous. It cured my knee problems, and it’s performing every bit as well for my patients, too. I’ve seen several ‘miracle cures’ already.” “After nine years of crippling pain, I can’t believe I’m actually skiing again. CMO™ is truly incredible.”

“After two years in a wheelchair, I just can’t believe that I’m taking care of myself and my family again.”

“I am a trophy winning martial arts competitor and I had to quit three years ago because of my arthritis. I'm 100% now that I tried CMo™. I look forward to going to Australia next year to compete again.

, “I couldn’t even put on my own socks. My wife had to do it. Now after seven years of excruciating pain, I’m out golfing again.” “Before, I needed two hands just to lift a cup of coffee. Now I find myself rearranging furniture all by myself. Last week I even changed a flat tire on the car.”

“I didn’t even realize CMO™ had worked for me till I found myself moving a bunch of heavy junk out of the garage. The change was so smooth and natural I just took it for granted.” “Imagine my agony. I was a professional athlete all my life. CMO™ gave me back my life. Even knee surgery didn’t do that for me. It’s amazing how CMO™ ended up fixing all my joints.”

Last Update: 01/31/98 Copyright ©1998 by CMO Distribution Centers of America Inc. - ALL RIGHTS RESERVED lof! 07/14/98 16:14 VOLUME 129 Complaint Exhibits FREQUENTLY ASKED QUESTIONS 2of5 QVC, INC.

Complaint Exhibits It has glso been found to relieve various types of back pain of undetermined origin (probably arthritis related) Back to Top Does CMO improve joint mobility? Yes, it can! If the joint can be moved, joint mobility may be improved. But if the bones have fused and grown together, only surgery can help those particular joints. Back to Top Does it stop arthritis pain? Arthritis pain will disappear completely in almost every instance. In a few extreme cases pain was reduced by only 70% to 90%, which was still of such major benefit that it allowed the persons to function normally again.

Back to Top Does CMO reduce inflammation? Yes, and it does so very effectively. The pressure in the joints caused by the inflammation is the major cause of stiffness and pain.

Back to Top How long before it takes effect? Most people can begin to feel relief within a couple of weeks. Others may need several months. Back to Top Will it correct deformities? 7 Yes. Deformed fingers and toes are often caused by inflammation which swells joints and pushes the bones out of place. Reduction of the alone improves appearance dramatically and often allows the dist bones to return to their n: positions. Extreme cases may require some physical erapy.

Back to Top What about really severe cases? Even most persons previously confined to bed or to wheelchairs have responded dramatically and are 07/14/98 http:/home.earthlink.ney~cmocure/cmocure/em02000 hin 16:15:

VOLUME 129 Complaint Exhibits QVC, INC. 1859 Complaint Exhibits FREQUENTLY ASKED QUESTIONS http:/name.earthlink.nev~cmocure/cmocure/ ©m02000.htm 40f5 Yes. Many people want to lose weight and or rebuild strength once they are free to do so again painlessly. But, as with all sound fitness programs, it's best to do so gradually. Your body will need time to adjust.

Back to Top in Is it expensive? The cost of treatment is very modest. Most arthritis victims are already spending more on pain and anti-inflammation medications in just a few months. Since you usually need to take only one set of CMO capsules, it actually saves thousands of dollars in the long run. Back to Top Is age a factor? Not really. All ages respond well. Although arthritis becomes far more common with advancing age, even very young children are sometimes afflicted. ne 28 Back to Top , What causes arthritis? The numerous theories about what causes arthritis have filled hundreds of volumes. But one thing we do know is that the arthritic process is regulated by Memory T Cells which have been erroneously programmed, causing attacks on your own joints and cartilage. In osteoarthritis, this faulty programming usually results from physical damage (like a fall, sports injury, vehicle accident, repeated operation of vibrating machinery, long-term strenuous physical work er sports activities, and continuous repetitive motions of certain joints) etc. The ¢ results in an immune response involving the memory T cells producing attacks against the aff joints. Unfortunately, there's no stop or end command given and the attack continues against healthy cartilage and joints as well That's why arthritis is called an autoimmune disease, our own body is attacked by our own immune Although the various forms of rheumatoid arthritis are usually caused by some ineffective microorganism. Memory T cells is again involved in the same arthritic process. Without CMO it continues to worsen.

Back to Top How does CMO work? CMO corrects the root cause of arthritis by erasing the memory of the badly programmed memory T cells. Once the destruction of your joints is halted, your body can begin its repair process without interference, and joints begin to normalize. Although the major benefits come promptly, minor __ i vernents continue even for several months after finishing CMO. With the pain and inflammation jeved, the joints can function again quite normally. Despite minor physical damage to bones as 8 07/14/98 16:15:1 VOLUME 129 Complaint Exhibits ORDERING QVC, INC. 1861 Complaint Exhibits http:/home.carthlink.nev~cmocure/cmocure/cm03000.htr ORDERING .

CMO™ now comes in 60 capsule bottles: Starting January 10th, we will offer the 60 capsule bottles of CMO™ for the introductory price of $95.00 plus shipping and handling. This price is for a limited time only. Regular suggested retail is $119.00. 100 capsule bottles: The new prices for 100 capsule bottles will be $195.00 plus shipping and handling. ' CMO™: Beware of imitations! Look for the accompanying trademark and graphic logo to be sure you are ordering from an‘ authorized distributor. The testimonials and clinical studies quoted in this web site only apply to the real CMO™, A recommended diet accompanies this product to improve it's effectiveness, consult your physician before making any dietary changes. CMO™ is inexpensive compared to the thousands of dollars it costs for any ongoing arthritis treatment. Book, Boom You’re Well: By Dr. Douglas Hunt $ 19.95. Book, Rescued From Arthritis: By Dr. Len Sands, call for availability. Feel free to call us if you have any questions about CMO™ or would like to place an order. Toll free in the US: 1-800-909-CURE | Dial direct from overseas: 941-954-2100 Cf Email Ordering To:

Free Pamphlets: We invite you to order any of our free pamphlets for you or your friends. There are email versions of the Clinical Studies, Case Histories and Questions & Answers. This web site is an electronic version of the “Arthritis Treatment Breakthrough” pamphle which is only available through standard mail. . Free Tape: We invite you to order our free CMO™ Information Tape for you or your friends. This tape features interviews with Dr. Sands. [email protected] Name:

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lof2 ! 07/14/98 16:15 VOLUME 129 Complaint Exhibits QVC, INC. 1863 Decision and Order DECISION & 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 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 the 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 draft 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 or that the facts, as alleged in the complaint, other than jurisdictional facts, are true; and The Commission having considered the matter and having determined that it had reason to believe that the respondent has violated the 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, and having duly considered the comment filed thereafter by an interested person pursuant to ' 2.34 of its Rules, now in further conformity with the procedure prescribed in ' 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional finding and enters the following order: 1. Respondent QVC, Inc. is a Delaware corporation with its principal office or place of business at 1200 Wilson Drive, West Chester, PA 19380.

VOLUME 129 Decision and Order ORDER DEFINITIONS For purposes of this order, the following definitions shall apply:

1. "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. 2. Unless otherwise specified, Arespondent@ shall mean QVC, Inc., its successors and assigns and its officers, agents, representatives, and employees.

3. ACommerce@ shall mean as defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. ' 44.

I.

IT IS ORDERED that respondent, 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 Cold-Eeze Zinc Lozenges, or any other food, drug or dietary supplement, as "food" and "drug" are defined in Section 15 of the Federal Trade Commission Act, in or affecting commerce, shall not make any representation, in any manner, expressly or by implication, that such product: A. will prevent users from contracting colds; B. will reduce the risk of contracting pneumonia; QVC, INC. 1865 Decision and Order C. will relieve or reduce the symptoms of hay fever or allergies;

D. will reduce the severity of cold symptoms in children; or E. will prevent children from contracting colds; unless, at the time the representation is made, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation. II.

IT IS FURTHER ORDERED that respondent, 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 any dietary supplement, in or affecting commerce, shall not make any representation, in any manner, expressly or by implication, that such product can or will cure, treat, or prevent any disease, or have any effect on the structure or function of the human body unless, at the time the representation is made, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation. III.

Nothing in this order shall prohibit respondent from making any representation for any drug that is permitted in labeling for such drug under any tentative final or final standard promulgated by the Food and Drug Administration, or under any new drug application approved by the Food and Drug Administration. VOLUME 129 Decision and Order IV.

Nothing in this order shall prohibit respondent from making any representation for any product that is specifically permitted in labeling for such product by regulations promulgated by the Food and Drug Administration pursuant to the Nutrition Labeling and Education Act of 1990.

V.

IT IS FURTHER ORDERED that respondent QVC, Inc., and its successors and assigns, shall, for five (5) years after the last date of dissemination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commission for inspection and copying:

A. All advertisements and promotional materials containing the representation, including videotapes of all such broadcast advertisements;

B. All materials that were relied upon in disseminating the representation; and C. All tests, reports, studies, surveys, demonstrations, or other evidence in their possession or control that contradict, qualify, or call into question the representation, or the basis relied upon for the representation, including complaints and other communications with consumers or with governmental or consumer protection organizations. VI.

IT IS FURTHER ORDERED that respondent QVC, Inc., and its successors and assigns, shall deliver a copy of this order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each such person a QVC, INC. 1867 Decision and Order signed and dated statement acknowledging receipt of the order. Respondent shall deliver this order to current personnel within thirty (30) days after the date of service of this order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities. Respondent shall maintain and upon request, make available to the Federal Trade Commission for inspection and copying, a copy of each signed statement acknowledging receipt of the order.

VII.

IT IS FURTHER ORDERED that respondent QVC, Inc., and its successors and assigns, shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580.

VIII.

IT IS FURTHER ORDERED that respondent QVC, Inc., and its successors and assigns, shall, within sixty (60) days after the date of service of this order, and at such other times as the Federal VOLUME 129 Decision and Order Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order. IX.

This order will terminate on June 14, 2020, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any Part in this order that terminates in less than twenty (20) years;

B. This order's application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has terminated pursuant to this Part.

Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal. By the Commission, Commissioner Leary not participating. ALTERNATIVE CIGARETTES, INC. 1869 Complaint