Engineered Plastic Systems, LLC

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

VOLUME 158

Complaint

IN THE MATTER OF

ENGINEERED PLASTIC SYSTEMS, LLC

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

Docket No. C-4485; File No. 132 3204 Complaint, August 20, 2014 – Decision, August 20, 2014

This consent order addresses Engineered Plastic Systems, LLC’s green claims made while promoting its plastic lumber products. The complaint alleges that Respondent represented that some of its benches and tables are all, or virtually all, recycled plastic, but that these products contained substantially less recycled plastic than claimed. The consent order prohibits Respondent from making representations regarding the recycled content or the environmental benefit of any product or package unless they are true, not misleading, and substantiated by competent and reliable evidence.

Participants

For the Commission: Robert M. Frisby.

For the Respondent: Jack Joyce, President, pro se.

COMPLAINT

The Federal Trade Commission, having reason to believe that Engineered Plastic Systems, LLC, a corporation (“Respondent”), has violated provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges:

1. Respondent Engineered Plastic Systems, LLC is a limited liability company with its principal office or place of business at 885 Church Road, Elgin, IL 60123.

2. Respondent has advertised, offered for sale, sold, and distributed plastic lumber products, including picnic tables and benches.

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.

ENGINEERED PLASTIC SYSTEMS, LLC

Complaint

4. Since at least June 2011, Respondent has disseminated one or more advertisements and promotional materials for plastic lumber products, including but not necessarily limited to the attached Exhibits A and B. These materials contain the following statements:

a. “Sports Bench . . . Made entirely of recycled plastic lumber” (Exhibit A, brochure, p. 11)

“Eco Table . . . Made entirely of recycled plastic synthetic lumber” (Id., p. 13)

“Perennial Table . . . Made entirely of recycled plastic lumber” (Id., p. 15)

“Hexagonal Table . . . Made entirely of recycled plastic lumber” (Id., p. 16)

“Geneva Bench . . . All recycled plastic design” (Id., p. 24)

“Garden Bench . . . Constructed using 2x4 recycled plastic lumber profiles . . . Choice of recycled plastic-molded legs or ¼” steel legs” (Id., p. 8)

“Trailside Bench . . . Constructed using 2x6 recycled plastic lumber profiles . . . Choice of recycled plastic molded legs or ¼” steel legs” (Id., p. 9)

b. “Eco Table . . . All recycled plastic construction” (Exhibit B, excerpt from www.epsplasticlumber.com)

“Hexagonal Table . . . All recycled plastic construction” (Id.)

5. A consumer acting reasonably under the circumstances is likely to interpret the representations described in Paragraph 4 to mean that Respondent’s tables and benches are made from all, or virtually all, recycled plastic.

6. In fact, Respondent’s tables and benches contained substantially less recycled plastic than Respondent represented.

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Complaint

From June 2011 to early 2014, Respondent’s tables and benches, on average, contained only about 72% recycled plastic. The products also contained some non-recycled plastic and a mineral component.

False or Misleading Claims

7. In connection with the advertising, promotion, offering for sale, or sale of plastic lumber products, Respondent has represented, directly or indirectly, expressly or by implication, that its Eco, Hexagonal, and Perennial Tables and its Garden, Geneva, Sports, and Trailside Benches are all or virtually all recycled plastic.

8. In fact, Respondent’s tables and benches are not all or virtually all recycled plastic.

9. The representations set forth in Paragraph 7 are false or misleading, or were not substantiated at the time the representations were made.

Violations of Section 5

10. The acts and practices of Respondent as alleged in this complaint constitute deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.

THEREFORE, the Federal Trade Commission this twentieth day of August, 2014, has issued this Complaint against Respondent.

By the Commission.

The image has been rotated 90 degrees clockwise.The recognized content is as follows: ENGINEERED PLASTIC SYSTEMS, LLC

Complaint

Exhibit A

BENCHES

Garden Bench

One-Piece Plastic Molded Legs, Black

All plastic bench model. Molded legs easily anchor to or land. Legs do not come pre-drilled.

SIZE 4' Bench 6' Bench

DIMENSIONS 48" x 25"W x 33"H 72" x 25"W x 33"H

LEGS

WEIGHT 78 lbs 113 lbs

SHIP C C

8' Bench

96" x 25"W x 33"H

147 lbs

C

Steel Leg with Surface Mount (2)

1/4" powder-coated steel legs. Surface mount configuration may contain anchors and pre-drilled anchor holes.

SIZE 4' Bench 6' Bench

DIMENSIONS 48" x 25"W x 33"H 72" x 25"W x 33"H

LEGS

WEIGHT 74 lbs 110 lbs

SHIP C C

8' Bench

96" x 25"W x 33"H

147 lbs

C

Steel Leg with In-Ground Mount (3)

1/4" powder-coated steel legs. In-ground mount configuration. 18" of additional tube for mounting.

SIZE 4' Bench 6' Bench

DIMENSIONS 48" x 25"W x 33"H 72" x 25"W x 33"H

LEGS

WEIGHT 74 lbs 110 lbs

SHIP C C

8' Bench

96" x 25"W x 33"H

147 lbs

C

Constructed using 2x4 recycled plastic lumber profiles Choice of recycled plastic-molded legs or 1/4" steel legs Custom engraving available

www.engineeredplasticsystems.com | 800.458.3727

198 FEDERAL TRADE COMMISSION DECISIONS VOLUME 158

Complaint

Trailside Bench

One-Piece Plastic Molded Legs (1) All plastic bench model. Molded legs easily anchor to concrete or land. Legs do not come pre-drilled. Black in color.

| MODEL # | DIMENSIONS | WEIGHT | LEGS | | :--- | :--- | :--- | :--- | | 7584 | 48"L x 25"W x 33"H | 85 lbs | 2 | | 7586 | 72"L x 25"W x 33"H | 125 lbs | 3 | | 7588 | 96"L x 25"W x 33"H | 170 lbs | 4 |

Steel Leg with Surface Mount (2) 1 1/16" powder-coated steel legs. Surface mount comes with complementary cement anchors and pre-drilled anchor hole.

| MODEL # | DIMENSIONS | WEIGHT | LEGS | | :--- | :--- | :--- | :--- | | 7583 | 48"L x 25"W x 33"H | 93 lbs | 2 | | 7585 | 72"L x 25"W x 33"H | 125 lbs | 3 | | 7587 | 96"L x 25"W x 33"H | 168 lbs | 4 |

Steel Leg with In-Ground Mount (3) 1 1/16" powder-coated steel legs. In-ground mount comes w/ 18" of additional pipe for mounting.

| MODEL # | DIMENSIONS | WEIGHT | LEGS | | :--- | :--- | :--- | :--- | | 7584-IG | 48"L x 25"W x 33"H | 93 lbs | 2 | | 7586-IG | 72"L x 25"W x 33"H | 125 lbs | 3 | | 7588-IG | 96"L x 25"W x 33"H | 168 lbs | 4 |

Constructed using 2x6 recycled plastic lumber profiles Choice of recycled plastic molded legs or 1 1/16" steel legs Widest seat for added comfort

www.epjengineering.com | 800.448.2332

ENGINEERED PLASTIC SYSTEMS, LLC

Complaint

Sports Bench

Made entirely of recycled plastic lumber Black one-piece plastic molded legs plastic fastener covers included

For All Benches:

Stainless steel fasteners and all parts necessary for assembly are included.

Custom colors for plastic molded legs available with orders of 100 or more.

Custom engraving available for all benches. See p.29 for more details.

4' Sports Bench - Model # 5704 dimensions 48" x 14.75" x 30"H weight 80 lbs.

Legs Weight 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

6' Sports Bench - Model # 5706 dimensions 72" x 19.5" x 30"H weight 98 lbs.

Legs Weight 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

8' Sports Bench - Model # 5708 dimensions 96" x 19.5" x 30"H weight 128 lbs.

Legs Weight 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

12' Sports Bench - Model # 5712 dimensions 144" x 19.5" x 30"H weight 177 lbs.

Legs Weight 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000

One-Piece Plastic Molded Leg For Benches with Back (Black) Model # 5500 41.75" x 25" x 32"H | 17 lbs.

One-Piece Plastic Molded Leg For Benches with No Back Model # 5504 41" x 16" x 15"H | 12 lbs.

The image has been rotated 90 degrees clockwise.The text reads: 200 FEDERAL TRADE COMMISSION DECISIONS VOLUME 158

Complaint

Picnic Tables from Perennial Park Products are durable and easy to maintain. All parts made of our signature recycled plastic lumber are waterproof, resistant to graffiti and stains, and will not rot, crack, splinter or peel. All tabletops are non-toxic and food-safe.

Eco Table Made entirely of recycled plastic synthetic lumber Your choice of color for tabletop and benches, black legs Rounded edges for added safety

SIZE DIMENSIONS SEAT LEGS WEIGHT MODEL # 6' Table 72"L x 69"W x 32.5"H 72"L x 16"H 2 250 lbs. EC08 8' Table 96"L x 69"W x 32.5"H 96"L x 16"H 2 306 lbs. EC08

www.perennialparkproducts.com | 800.460.2257

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Complaint

Perennial Table with Single Overhang MODEL # P8P-H1 Wheelchair accessible & ADA compliant 8' tabletop, 6' benches

\[\begin{array}{|c|c|c|c|} \hline \text{SIZE} & \text{DIMENSIONS} & \text{SEAT} & \text{LEGS} & \text{WEIGHT} \\ \hline 8' Table & 96"L \times 68"W \times 32"H & 72"L \times 18"H & 2 & 368 lbs \\ \hline \end{array}\]

Perennial Table with Dual Overhang MODEL # P8P-H2 Wheelchair accessible & ADA compliant 8' tabletop, 6' benches

\[\begin{array}{|c|c|c|c|} \hline \text{SIZE} & \text{DIMENSIONS} & \text{SEAT} & \text{LEGS} & \text{WEIGHT} \\ \hline 8' Table & 96"L \times 68"W \times 32"H & 72"L \times 18"H & 2 & 368 lbs \\ \hline \end{array}\]

Perennial Table

Made entirely of recycled plastic lumber Step-over design with A shaped frame Round, smooth edges for added safety

\[\begin{array}{|c|c|c|c|c|} \hline \text{SIZE} & \text{DIMENSIONS} & \text{SEAT} & \text{LEGS} & \text{WEIGHT} & \text{MODEL #} \\ \hline 4' Table & 48"L \times 58"W \times 32"H & 48"L \times 18"H & 2 & 300 lbs & P14 \\ \hline 6' Table & 72"L \times 58"W \times 32"H & 72"L \times 18"H & 2 & 375 lbs & P16 \\ \hline 8' Table & 96"L \times 58"W \times 32"H & 96"L \times 18"H & 2 & 428 lbs & P18 \\ \hline \end{array}\]

www.engineeredplasticsystems.com | 800.338.1432

H PICNIC TABLES

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15 PICNIC TABLES

Square Table

MODEL #:C4 4' square table with four easily to walk-through benches Seats up to 8 adults Black powder-coated steel legs Frame will support an umbrella

DIMENSIONS | SEAT | LBS | WEIGHT 72"L x 72"W x 29"H | 19"H | 8 | 320 lbs

A + D Custom Furniture.com | 1.800.488.2833

Hexagonal Table

MODEL #:PT-HEX45 6-sided hexagonal table with three angled benches Seats up to 6 adults Made entirely of recycled plastic lumber Pre-assembled legs and tabletop

DIMENSIONS | SEAT | LBS | WEIGHT 72"L x 72"W x 32"H | 19"H | 9 | 250 lbs

Mix and match seat and tabletop colors!

Courtyard Table

MODEL #:CT-OCT Pedestal feet and rounded ed help create unique design Four angled benches seat up eight adults Choose a combination of two colors or a one-color design

DIMENSIONS | SEAT | LBS | WEIGHT 82"L x 82"W x 32"H | 19"H | 8 | 1

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Complaint

OUTDOOR LIVING

Outdoor Living is what we're all about. Whether for homes, recreation areas, businesses public use, these accessories let you incorporate eco-friendly furnishings into your der and landscaping. All pieces are built for comfort and feature stylish, classic designs.

The Geneva Collection - All New!

Geneva Bench NEW!

MODEL # GENBENCH

Curved seat for added comfort All recycled plastic design.

Weatherproof, resistant to fading, easy to cle Will not blow in wind Choose two-tone colors or one color design

DIMENSIONS SEAT LEGS WEIG 51"L x 25"W x 38"H 45"L x 18"H 4 81.5 l

A www.engineeredplasticsystems.com | 800.338.1837

VOLUME 158

Complaint

Exhibit B

Eco Table (6ft)

Perennial PARK PRODUCTS 800-480-2327

SEARCH Customer Service | My Account | Shopping Cart | Contact Us

RECYCLED PLASTIC FURNITURE Picnic Tables Benches Outdoor Living Trash & Recycling Centers Children's Furniture Accessories Custom Opportunities COLORS CUSTOM ENGRAVING OWNERSHIP Cleaning Warranty THE PLASTIC ADVANTAGE Benefits Product Comparison GSA ABOUT US Our Company Green Initiative Satisfied Customers REQUEST A SAMPLE CATALOG FAQ SHIPPING / FREIGHT RESOURCES & LINKS

OUR OTHER BRANDS FOREVER FOLLOW US ON

Eco Table (6ft) click for large view

Product #: EC06 Weight: 252lb.

Length: 72"

Width: 58"

Height: 32.5"

Seat: 17.5"

Legs: 2

Price: $670.00

FREE SHIPPING ON ALL ORDERS!

PRODUCT INFORMATION • 6 foot table and benches • All recycled plastic construction • Weatherproof, resistant to fading, easy to clean • Choose your tabletop and bench color • Legs come in black • Umbrella hole is pre-drilled to 1.5" • Rounded edges for added safety • Stainless steel fasteners included

ENGRAVING Custom engraving is available for this product. Epoxy fill available in white or black.

COLORS TABLETOP & BENCH COLORS: White, Gray, Putty, Tan, Cedar, Weathered Wood, Redwood, Green, Chocolate Brown, Black LEG COLOR: Black

UMBRELLA HOLE Umbrella hole available for a drilling fee of $1. Umbrella holes will be placed slightly off-center to accommodate the structure of the table.

BUY MORE AND SAVE! Quantity Discounts Applied to Entire Order From To Discounted Price 3 4 $650.00 5 9 $635.00 10 And Above $623.00

Clear Engraving Epoxy Fill Color Image Engraving Upload Custom Engraved Text Umbrella Hole Quantity 1

White Gray Putty Cedar Tan Black Redwood Chocolate Brown Green

ADD TO CART

SHIPPING & FREIGHT INCLUDED IN ALL ORDERS!

STAINLESS STEEL FASTENERS INCLUDED!

QUANTITY & GROUP DISCOUNTS CLICK HERE TO SIGN UP

May we also suggest

http://www.epiplasticlumber.com/index.cfm?productID=2&eco-table-6ft.cfm[6/17/2011 11:14:56 AM]

ENGINEERED PLASTIC SYSTEMS, LLC

Complaint

Hexagonal Table

Perennial PARK PRODUCTS 800-480-2327

SEARCH Customer Service | My Account | Shopping Cart | Contact Us

RECYCLED PLASTIC FURNITURE Picnic Tables Benches Outdoor Living Trash & Recycling Centers Children's Furniture Accessories Custom Opportunities COLORS CUSTOM ENGRAVING OWNERSHIP Cleaning Warranty THE PLASTIC ADVANTAGE What is HDPE? Benefits Product Comparison GSA ABOUT US Our Company Green Initiative REQUEST A SAMPLE CATALOG FAQ SHIPPING / FREIGHT RESOURCES & LINKS

Hexagonal Table

Price: $2620.00

FREE SHIPPING ON ALL ORDERS!

PRODUCT INFORMATION • 6-sided hexagonal table with three angled benches • All recycled plastic, colorfast ink • Seats up to 6 adults • Walk-through design • Ground to seat: 18", ground to top: 32" • 1-5/8" oversized legs and framing • Rounded edges for added safety • Stainless steel fasteners included

ENGRAVING Custom engraving is available for this product. Epoxy fill available in white or black.

COLORS White, Gray, Putty, Tan, Cedar, Weathered Wood, Redwood, Green, Chocolate Brown, Black

UMBRELLA HOLE Umbrella hole available for a drilling fee of $0. Umbrella hole will be placed slightly off-center to accommodate the structure of the table.

SHIPPING & FREIGHT INCLUDED IN ALL ORDERS!

STAINLESS STEEL FASTENERS INCLUDED!

QUANTITY & GROUP DISCOUNTS CLICK HERE TO BUY IN BULK

Product #: 97-Hex45 Weight: 2200 Length: 72"

Width: 72"

Height: 32"

Seat: 18"

Legs: 3

click for larger view

BUY MORE AND SAVE! - Quantity Discounts Applied to Entire Order

From To Discounted Price 3 4 $2515.00 5 9 $2510.00 10 And Above $2505.00

Color Engraving Epoxy Fill Color Image Engraving Upload Custom Engraved Text Umbrella Hole Quantity 1

White Gray Putty Cedar Tan Black Redwood Chocolate Green Brown

ADD TO CART

OUR OTHER BRANDS FLEX PARK FOLLOW US ON

Picnic Tables Wheelchair Accessible All Plastic Models

BACK | NEXT

http://www.epiplasticlumber.com/order.cfm?product=97_2hexagonal-table.cfm[9/17/2013 11:15:43 AM]

VOLUME 158

Decision and Order

DECISION AND ORDER

The Federal Trade Commission, having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of a Complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued, would charge the respondent with violations of the Federal Trade Commission Act; and

The respondent and counsel for the Commission having thereafter executed an Agreement Containing Consent Order ("Consent Agreement"), which includes: a statement by respondent that it neither admits nor denies any of the allegations in the draft complaint, except as specifically stated in the Consent Agreement, and, only for purposes of this action, admits the facts necessary to establish jurisdiction; and waivers and other provisions as required by the Commission's Rules; and

The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the Federal Trade Commission 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 thirty (30) days for the receipt and consideration of public comments, pursuant to Commission Rule 2.34, 16 C.F.R. § 2.34, now in further conformity with the procedure prescribed in Commission Rule 2.34, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent Engineered Plastic Systems, LLC, a limited liability company, has its principal office or place of business at 885 Church Road, Elgin, IL 60123.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

ENGINEERED PLASTIC SYSTEMS, LLC 207

Decision and Order

ORDER

DEFINITIONS

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

A. “Commerce” means as defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44.

B. “Competent and reliable scientific evidence” means tests, analyses, research, or studies that have been conducted and evaluated in an objective manner by qualified persons, that are generally accepted in the profession to yield accurate and reliable results, and that are sufficient in quality and quantity based on standards generally accepted in the relevant scientific fields, when considered in light of the entire body of relevant and reliable scientific evidence, to substantiate that a representation is true.

C. Unless otherwise specified, “respondent” means Engineered Plastic Systems, LLC, a limited liability company, and its successors and assigns.

I.

IT IS ORDERED that respondent, its officers, agents, servants, employees, and attorneys, and all other persons in active concert or participation with any of them, who receive actual notice of this order, whether acting directly or indirectly, in connection with promoting or offering for sale any product or package, shall not make any representation, in any manner, expressly or by implication, about:

A. The recycled content of any product or package; or

B. The environmental benefit of any product or package;

unless such representation is true, not misleading, and, at the time it is made, respondent possesses and relies upon competent and reliable evidence that substantiates that the representation is true.

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Decision and Order

If, in general, experts in the relevant scientific fields would conclude it is necessary, such evidence must be competent and reliable scientific evidence. For any representation that a product or package contains recycled content, such evidence must show that any recycled content in such product or package is composed of materials that have been recovered or otherwise diverted from the waste stream.

II.

IT IS FURTHER ORDERED that respondent 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;

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.

III.

IT IS FURTHER ORDERED that respondent 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 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 must maintain and upon request make available to the Federal Trade

ENGINEERED PLASTIC SYSTEMS, LLC 209

Decision and Order

Commission for inspection and copying all acknowledgments of receipt of this order obtained pursuant to this Part.

IV.

IT IS FURTHER ORDERED that respondent 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. Unless otherwise directed by a representative of the Commission in writing, all notices required by this Part shall be emailed to [email protected] or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject line must begin: “Engineered Plastic Systems, LLC, Docket No. C-4485.”

V.

IT IS FURTHER ORDERED that respondent, within sixty (60) days after the date of service of this order, shall file with the Commission a true and accurate report, in writing, setting forth in detail the manner and form in which respondent has complied with this order. Within ten (10) days of receipt of written notice from a representative of the Commission, respondent shall submit additional true and accurate written reports. Unless otherwise directed by a representative of the Commission in writing, all reports required by this Part shall also be emailed to [email protected] or sent by overnight courier (not the U.S. Postal Service) to: Associate Director for Enforcement, Bureau of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. The subject

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Analysis to Aid Public Comment

line must begin: “Engineered Plastic Systems, LLC, Docket No. C-4485.”

VI.

This order will terminate on August 20, 2034, or twenty 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.

ANALYSIS OF CONSENT ORDER TO AID PUBLIC COMMENT

The Federal Trade Commission (“FTC” or “Commission”) has accepted, subject to final approval, an agreement containing a

ENGINEERED PLASTIC SYSTEMS, LLC 211

Analysis to Aid Public Comment

consent order from Engineered Plastic Systems, LLC, a limited liability company (“Respondent”).

The proposed consent order has been placed on the public record for thirty (30) days for receipt of comments by interested persons. Comments received during this period will become part of the public record. After thirty (30) days, the Commission will again review the agreement and the comments received, and will decide whether it should withdraw from the agreement or make final the agreement’s proposed order.

This matter addresses allegedly deceptive green claims that Respondent made while promoting its plastic lumber products. According to the FTC complaint, Respondent represented that some of its benches and tables are all, or virtually all, recycled plastic. The complaint also alleges that these products contained substantially less recycled plastic than Respondent represented. According to the complaint, from June 2011 to early 2014, Respondent’s tables and benches, on average, contained only about 72% recycled plastic. Thus, the complaint alleges that the above claims were false, misleading, or unsubstantiated in violation of Section 5(a) of the FTC Act.

The proposed consent order contains several provisions designed to prevent Respondent from engaging in similar acts and practices in the future. Part I prohibits Respondent from making representations regarding the recycled content or the environmental benefit of any product or package unless they are true, not misleading, and substantiated by competent and reliable evidence. Part I further provides that if, in general, experts in the relevant scientific field would conclude it necessary, such evidence must be competent and reliable scientific evidence. Consistent with the Guides for the Use of Environmental Marketing Claims (“Green Guides”), 16 C.F.R. § 260.13(b), Part I specifically requires Respondent to substantiate recycled content claims by demonstrating that such content is composed of materials that were recovered or otherwise diverted from the waste stream.

Parts II through VI are reporting and compliance provisions. Part II requires Respondent to keep (and make available to the Commission on request): copies of advertisements and

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Analysis to Aid Public Comment

promotional materials containing the representations covered by the order; materials relied upon in disseminating those representations; and evidence that contradicts, qualifies, or calls into question the representations, or the basis relied upon for the representations. Part III requires dissemination of the order now and in the future to principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities relating to the subject matter of the order. It also requires Respondent to maintain and make available to the FTC all acknowledgments of receipt of the order. Part IV requires notification to the FTC of changes in corporate status. Part V mandates that Respondent submit an initial compliance report to the FTC and subsequent reports requested by the FTC. Part VI is a provision terminating the order after twenty (20) years, with certain exceptions.

The purpose of this analysis is to aid public comment on the proposed consent order. It is not intended to constitute an official interpretation of the proposed order or to modify its terms in any way.

JACOB J. ALIFRAGHIS 213

Complaint

IN THE MATTER OF

JACOB J. ALIFRAGHIS D/B/A INSTANTUPCCODES.COM

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

Docket No. C-4483; File No. 141 0036 Complaint, August 20, 2014 – Decision, August 20, 2014

This consent order addresses Jacob J. Alifraghis’s invitation to certain competitors in the sale of barcodes to join together in a collusive scheme to raise prices. The complaint alleges that Mr. Alifraghis sent messages proposing that all three competitors raise their prices to meet the higher prices charged by another competitor. The consent order prohibits Respondent from entering into, participating in, maintaining, organizing, implementing, enforcing, inviting, offering, or soliciting an agreement with any competitor to divide markets, to allocate customers, or to fix prices.

Participants

For the Commission: Dana Abrahamsen and Matthew Accornero.

For the Respondent: David Balto, Solo Practitioner.

COMPLAINT

Pursuant to the provisions of the Federal Trade Commission Act, as amended, 15 U.S.C. § 41, et seq., and by virtue of the authority vested in it by said Act, the Federal Trade Commission (“Commission”), having reason to believe that Jacob J. Alifraghis, also doing business as InstantUPCCodes.com (hereinafter sometimes referred to as “Respondent”), has violated the provisions of Section 5 of the Federal Trade Commission Act, 15 U.S.C. § 45, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, hereby issues this Complaint stating its charges as follows: