Moonlight Slumber, LLC

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IN THE MATTER OF MOONLIGHT SLUMBER, LLC CONSENT ORDER, ETC. IN REGARD TO ALLEGED VIOLATIONS OF SECTION 5 OF THE FEDERAL TRADE COMMISSION ACT Docket No. C-4634; File No. 162 3128 Complaint, December 11, 2017 – Decision, December 11, 2017 This consent order addresses Moonlight Slumber, LLC’s environmental and health claims made regarding its baby mattresses. The complaint alleges that respondent made unsubstantiated representations that its mattresses are organic, natural, or plant-based and that its mattresses will not emit any substance, including volatile organic compounds, or off gas; claimed that testing proved that its mattresses do not emit volatile organic compounds; and represented that its mattresses have been certified by Green Safety Shield, yet failed to disclose that it has a material connection to the Green Safety Shield seal. The consent order prohibits misleading representations regarding whether any mattress, blanket, pillow, pad, foam-containing product, or sleep-related product is organic, natural, or plant-based; regarding the emissions from such product; and regarding the general environmental and health benefits of such product and requires respondent to possess competent and reliable evidence, including scientific evidence when appropriate, to substantiate these representations. Participants For the Commission: Jock Chung and Amanda B. Kostner. For the Respondent: Kenneth W. Vorrasi, Drinker Biddle & Reath, LLP.

COMPLAINT The Federal Trade Commission, having reason to believe that Moonlight Slumber, LLC, a corporation, has violated the provisions of the Federal Trade Commission Act, and it appearing that this proceeding is in the public interest, alleges: 1. Respondent Moonlight Slumber, LLC (“Moonlight Slumber”) is an Illinois corporation with its principal office or place of business at 300 Brook Street, Elgin, Illinois 60120. 2. Respondent has manufactured, advertised, labeled, offered for sale, sold, and distributed baby mattresses. VOLUME 164 Complaint 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. Moonlight Slumber’s Business Practices 4. Respondent has disseminated advertisements for Moonlight Slumber baby mattresses, including the attached Exhibits 1 through 12. These materials contain the following statements and depictions:

a. Respondent’s Starlight Simplicity mattress is an “Organic, hypoallergenic mattress that eliminates chemicals in your crib,” “with no chemical additives, no chemical fire retardants, no foam, no plastics, no polyesters, and no harsh chemicals.” Exhibit 1. b. Respondent’s Little Star mattress is a “Dual Firmness Organic Cotton Crib Mattress,” “a safe, organic alternative to traditional crib mattresses,” a “hypoallergenic crib mattress,” and an “organic crib mattress.” Exhibits 2 and 3.

c. Respondent’s Little Star mattress contains a “Natural Latex Core.” Exhibit 2.

d. Respondent’s mattresses are made from “BabySafe Natural Materials.” Exhibits 2, 4, 5, 6, 7, 8, and 9. e. Respondent’s Starlight Supreme, Starlight Sleepwell, Starlight Dream, Little Star, Little Dreamer, Little Dreamer Deluxe, and Little Angel mattresses are made with “eco-friendly plant-based foam,” “eco-friendly, plant based foam,” “eco-friendly plant-based, extra firm foam,” or “eco-friendlier, extra firm, plant based foam.” Exhibits 2, 3, 4, 5, 6, 7, 8, and 9. f. Respondent depicted a seal with a shield bearing a green leaf, partially encircled with the words “green safety shield.” Exhibits 1, 2, 3, 4, 5, 6, 7, 8, 9, and 10.

MOONLIGHT SLUMBER, LLC 871 Complaint g. Testing proves “that there are no VOCs (Volatile Organic Compounds, commonly known as ‘Off Gassing’) from Moonlight Slumber products. They are Green Safety Shield certified to assure no off gassing … .” Exhibits 10 and 11.

h. Respondent’s mattresses are “[f]ree of … off gassing, or indoor air pollutants.” Exhibit 12. 5. Respondent’s mattresses are comprised almost entirely of a core, fire barrier, cotton cover, and cotton ribbon. 6. The substantial majority of content in Respondent’s Starlight Simplicity and Little Star mattresses is non-organic. Neither the cores, which are the principal mattress components, nor the fire barriers for these two mattresses contain any organic content. About 70% of the cotton cover is not organic. Only the mattress ribbon, a minor component of the mattresses, is purely organic.

7. Most of Respondent’s mattresses contain cores made wholly or substantially of polyurethane, a non-natural material made almost entirely from isocyanates and polyols derived from petrochemicals. In addition, the latex used in the core for the Little Star mattress is not a natural material, but is synthetic. 8. The foams used in Respondent’s Starlight Supreme, Starlight Sleepwell, Starlight Dream, Little Star, Little Dreamer, Little Dreamer Deluxe, and Little Angel mattresses contain little or no plant-based material.

9. Respondent displayed the Green Safety Shield on its website and packaging near certifications from independent third parties.

10. Respondent did not disclose on its website and packaging that it awarded the Green Safety Shield to its own mattresses. The Green Safety Shield is not a certification by an independent third party.

VOLUME 164 Complaint 11. Respondent did not possess testing that proves there are no VOCs (Volatile Organic Compounds) from its mattresses. Count I False or Unsubstantiated Representations 12. In connection with the advertising, promotion, offering for sale, or sale of baby mattresses, Respondent has represented, directly or indirectly, expressly or by implication, that: a. Respondent’s Starlight Simplicity and Little Star mattresses are organic;

b. The materials in Respondent’s mattresses are natural; c. Respondent’s Little Star mattress contains a natural latex core; and d. Respondent’s Starlight Supreme, Starlight Sleepwell, Starlight Dream, Little Dreamer, Little Dreamer Deluxe, and Little Angel mattresses, and the infant side of the Little Star mattress, are made with foam that is derived wholly or almost wholly from plants. 13. In fact:

a. Respondent’s Starlight Simplicity and Little Star mattresses are not organic. Indeed, a substantial majority of the content in these mattresses is not organic.

b. A substantial majority of materials in several of Respondent’s mattresses is not natural. c. Respondent’s Little Star mattress does not contain a natural latex core.

d. Respondent’s Starlight Supreme, Starlight Sleepwell, Starlight Dream, Little Dreamer, Little Dreamer Deluxe, and Little Angel mattresses, and the infant side of the Little Star mattress, are not made with foam derived wholly or almost wholly from plants. Indeed, MOONLIGHT SLUMBER, LLC 873 Complaint little or no plant-based material is used to make the foam in these mattresses.

Therefore, the representations set forth in Paragraph 12 were false or misleading, or were unsubstantiated at the time the representations were made.

Count II Unsubstantiated Representations 14. In connection with the advertising, promotion, offering for sale, or sale of baby mattresses, Respondent has represented, directly or indirectly, expressly or by implication, that Respondent’s mattresses will not emit any substance, including volatile organic compounds.

15. In fact, Respondent did not possess and rely upon a reasonable basis to substantiate that its mattresses will not emit any substance, including volatile organic compounds. Therefore, the representations set forth in Paragraph 14 were unsubstantiated at the time the representations were made. Count III False Establishment Claim 16. In connection with the advertising, promotion, offering for sale, or sale of baby mattresses, Respondent has represented, directly or indirectly, expressly or by implication, that testing proves that Respondent’s mattresses do not emit volatile organic compounds.

17. In fact, testing did not prove that Respondent’s mattresses do not emit volatile organic compounds. Therefore, the representation set forth in Paragraph 16 is false or misleading. Count IV Deceptive Failure to Disclose—Material Connection with Green Safety Shield 18. In connection with the advertising, promotion, offering for sale, or sale of baby mattresses, Respondent has represented, VOLUME 164 Complaint directly or indirectly, expressly or by implication, that its mattresses have been certified by Green Safety Shield. 19. In these instances, Respondent has failed to disclose or disclose adequately that the Green Safety Shield is its own designation.

20. Respondent’s failure to disclose or disclose adequately the material information described in Paragraph 19, in light of the representation set forth in Paragraph 18, is a deceptive act or practice.

Violations of Section 5 21. The acts and practices of Respondent as alleged in this complaint constitute unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.

THEREFORE, the Federal Trade Commission, this eleventh day of December 2017, has issued this Complaint against Respondent.

By the Commission.

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Are all Mc Slu er Yes. All Moonlight Slunvber matte Halegens, Tris, Naroparticles, PC, % Phthalates, Phosphorous, Arsenic, y other harsh and dangerous chemica’ are monly used in crip mattresses, We offer the best Blend of safe, natural products using advanced manafacturing technology.

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What is the best way to clean a Moonlight Slumteer mattress? Moonlight Slumber renammends the following method to clean a mattress: simply use a damp feange and warm soapy water when necesiary be clean a mattress. Qvaid harsh chemicals. Starlight Support Supreme (all foam) - 10.5 Ibs Starlight Support Supreme (linerspeing) - 1 lbs Starlight Support fall foam) - 9.5 lbs Starlight Support (Innersoring) - 12 Ibs Little Dreamer - 8 lbs © Cenyeigint 20g . Mooeespet diembee if ¥ P Shan up bev Pe iran Email Address VOLUME 164 Complaint Exhibit 12 MOONLIGHT SLUMBER, LLC 891 Complaint £65 out there, Learn more » VOLUME 164 Complaint *| purchased the Starlight “Our 2 yr old daughter “| retened my pillow last Supreme cb mattress for immediately began sleaping week and | LOVE IT 1 am my one year old son and he through the night for the finally gatting good night has never slept better! first tine ever! So thanks so sleep - in between bathroom Thanks Moonlight!" much for such a wonderful breaks that is. Well done on Tim, WI broguct.” a great oroguct™ Carla, WY Cindy, CA fa Seem Gal MORNING TODAY PRACTICE AMERICA pled Greenhealth Starlight Supreme MLS is a member of ABC Good Morning Path hd abde ee ieee Rien atin Aeeeeties cee tel MOONLIGHT SLUMBER, LLC 893 Complaint hel ULE (PII LS Wide PIduLe AUPE SREY recently featured Greenhealth, an extolling the on NBC's Today organization benefits of Show, in their dedicated to Moonlight Slumber "Germ Free environmental crib mattresses. Nursery” segment. excellence and ecofriendly practices.

Vit Elie ———— with denice camponrris amd limported falc Sign up for Moonlight news Email Address night Stumiber wall not thao party gr or represent @ Copyright 2016 - Moonlight Sumber hitp:imoonlightslumber.com! VOLUME 164 Decision and Order DECISION The Federal Trade Commission (“Commission”) initiated an investigation of certain acts and practices of the Respondent named above in the caption. The Commission’s Bureau of Consumer Protection (“BCP”) prepared and furnished to Respondent a draft Complaint. BCP proposed to present the draft Complaint to the Commission for its consideration. If issued by the Commission, the draft Complaint would charge the Respondent with violations of the Federal Trade Commission Act. Respondent and BCP thereafter executed an Agreement Containing Consent Order (“Consent Agreement”). The Consent Agreement includes: 1) statements by Respondent that it neither admits nor denies any of the allegations in the Complaint, except as specifically stated in this Decision and Order, and that only for purposes of this action, Respondent admits the facts necessary to establish jurisdiction; and 2) waivers and other provisions as required by the Commission’s Rules.

The Commission considered the matter and determined that it had reason to believe that Respondent has violated the Federal Trade Commission Act, and that a Complaint should issue stating its charges in that respect. The Commission accepted the executed Consent Agreement and placed it on the public record for a period of 30 days for the receipt and consideration of public comments. The Commission duly considered the comment received from an interested person 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 issues its Complaint, makes the following Findings, and issues the following Order:

Findings 1. The Respondent Moonlight Slumber, LLC is an Illinois corporation with its principal office or place of business at 300 Brook Street, Elgin, Illinois 60120. 2. The Commission has jurisdiction over the subject matter of this proceeding and over the Respondent, and the proceeding is in the public interest. MOONLIGHT SLUMBER, LLC 895 Decision and Order ORDER Definitions For purposes of this Order, the following definitions apply: A. “Certification” means any seal, logo, emblem, shield, or other insignia that expresses or implies approval or endorsement of any product, package, service, practice, or program, or any attribute thereof. B. “Clearly and conspicuously” means that a required disclosure is difficult to miss (i.e., easily noticeable) and easily understandable by ordinary consumers, including in all of the following ways: 1. In any communication that is solely visual or solely audible, the disclosure must be made through the same means through which the communication is presented. In any communication made through both visual and audible means, such as a television advertisement, the disclosure must be presented simultaneously in both the visual and audible portions of the communication even if the representation requiring the disclosure is made through only one means. 2. A visual disclosure, by its size, contrast, location, the length of time it appears, and other characteristics, must stand out from any accompanying text or other visual elements so that it is easily noticed, read, and understood. 3. An audible disclosure, including by telephone or streaming video, must be delivered in a volume, speed, and cadence sufficient for ordinary consumers to easily hear and understand it. 4. In any communication using an interactive electronic medium, such as the Internet or software, the disclosure must be unavoidable. VOLUME 164 Decision and Order 5. On a product label, the disclosure must be presented on the principal display panel. 6. The disclosure must use diction and syntax understandable to ordinary consumers and must appear in each language in which the representation that requires the disclosure appears. 7. The disclosure must comply with these requirements in each medium through which it is received, including all electronic devices and faceto-face communications.

8. The disclosure must not be contradicted or mitigated by, or inconsistent with, anything else in the communication.

9. When the representation or sales practice targets a specific audience, such as children, the elderly, or the terminally ill, “ordinary consumers” includes reasonable members of that group.

C. “Competent and reliable scientific evidence” means tests, analyses, research, or studies that have been conducted and evaluated in an objective manner by qualified persons, and are generally accepted in the profession to yield accurate and reliable results. D. “Covered product” means any mattress, blanket, pillow, pad, foam-containing product, or sleep-related product.

E. “Emission” means any substance that is emitted by or produced during any normal use of a covered product. F. “Respondent” means Moonlight Slumber, LLC and its successor and assigns.

G. “Trace level of emissions” means: 1. Emissions of the substance about which the claim is made do not result in inhalation concentrations MOONLIGHT SLUMBER, LLC 897 Decision and Order of that substance higher than background levels in the typical residential home.

2. Emissions of the substance about which the claim is made do not cause material harm that consumers typically associate with that substance, including harm to the environment or human health; and 3. The substance about which the claim is made has not been added intentionally to the covered product;

H. “Volatile Organic Compound” (“VOC”) means any carbon-containing compound that evaporates at temperatures of 20 degrees to 25 degrees centigrade at air pressure of 101.3 kPa.

I. Prohibited Misleading and Unsubstantiated Representations Regarding Environmental and Health Claims IT IS ORDERED that Respondent, and Respondent’s officers, agents, 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 the manufacturing, labeling, advertising, promotion, offering for sale, or sale of any covered product must not make any representation, expressly or by implication, including through the use of a product name, regarding: A. whether such product is in whole or part organic; B. whether such product is in whole or part natural; C. whether such product is in whole or part plant-based; D. the content of such product;

E. the emissions from such product; or F. the environmental or health benefits of such product, VOLUME 164 Decision and Order unless the representation is non-misleading, including that, at the time such representation is made, Respondent possesses and relies upon competent and reliable evidence, which when appropriate based on the expertise of professionals in the relevant area must be competent and reliable scientific evidence, that is sufficient in quality and quantity based on standards generally accepted in the relevant fields when considered in light of the entire body of relevant and reliable evidence, to substantiate that the representation is true.

II. Prohibited Misleading and Unsubstantiated Representations Regarding Emissions From Covered Products IT IS FURTHER ORDERED that Respondent, and Respondent’s officers, agents, 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 the manufacturing, labeling, advertising, promotion, offering for sale, or sale of any covered product must not make any representation, expressly or by implication, that:

A. the emissions from a covered product are zero; B. the VOC emissions from a covered product are zero; C. the emissions of any individual substance or substances from a covered product are zero; or D. the emissions, VOC emissions, or emissions of any individual substance or substances from a covered product are zero in a particular circumstance, including at or after a particular point in time; unless the representation is non-misleading, including that, at the time such representation is made, Respondent possesses and relies upon competent and reliable scientific evidence that is 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 the covered product does not emit more than a trace level of MOONLIGHT SLUMBER, LLC 899 Decision and Order emissions of the substance or substances about which the claim is made in the represented circumstance.

III. Prohibited Misrepresentations Regarding Tests, Studies, or Other Research IT IS FURTHER ORDERED that Respondent and Respondent’s officers, agents, 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 the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any covered product must not make any misrepresentation, expressly or by implication, concerning: A. the existence, contents, validity, results, conclusions, or interpretations of any test, study, or other research, including that studies, research, or trials prove that Respondent’s mattresses do not emit volatile organic compounds or off-gas; or B. any benefit of such product is scientifically or clinically proven or otherwise established. IV. Prohibited Misleading Certifications IT IS FURTHER ORDERED that Respondent and Respondent’s officers, agents, 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 the manufacturing, labeling, advertising, promotion, offering for sale, or sale of any covered product must not misrepresent, expressly or by implication: A. Whether, or the degree to which, a third party has evaluated a product, package, service, practice, or program based on its environmental or health benefits or attributes; or B. Whether, or the degree to which, a certification is made by an independent person or organization. VOLUME 164 Decision and Order V. Disclosure of Material Connection IT IS FURTHER ORDERED that Respondent and Respondent’s officers, agents, 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 the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any product or service, must not make any representation, expressly or by implication, about any consumer, certifier, or other endorser of such product or service without disclosing, clearly and conspicuously, and in close proximity to the representation, any unexpected material connection between such endorser and (1) the Respondent or (2) any other individual or entity affiliated with the product or service. For purposes of this Provision, “unexpected material connection” means any relationship that might materially affect the weight or credibility of the testimonial, certification, or other endorsement and that would not reasonably be expected by consumers. Any certification that is awarded by Respondent to its own product creates an “unexpected material connection.” VI. Acknowledgments of the Order IT IS FURTHER ORDERED that Respondent obtain acknowledgments of receipt of this Order: A. Respondent, within 10 days after the effective date of this Order, must submit to the Commission an acknowledgment of receipt of this Order. B. Respondent must deliver a copy of this Order to: (1) all principals, officers, directors, and LLC managers and members; (2) all employees, agents, and representatives who participate in conduct related to the subject matter of the Order; and (3) any business entity resulting from any change in structure as set forth in the Provision titled Compliance Report and Notices. Delivery must occur within 10 days after the effective date of this Order for current personnel. For all others, delivery must occur before they assume their responsibilities.

MOONLIGHT SLUMBER, LLC 901 Decision and Order C. From each individual or entity to which Respondent delivered a copy of this Order, Respondent must obtain, within 30 days after delivery, a signed and dated acknowledgment of receipt of this Order. VII. Compliance Report and Notices IT IS FURTHER ORDERED that Respondent make timely submissions to the Commission:

A. Ninety days after the issuance date of this Order, Respondent must submit a compliance report, sworn under penalty of perjury, in which Respondent must: (1) identify the primary physical, postal, and email address and telephone number, as designated points of contact, which representatives of the Commission may use to communicate with Respondent; (2) identify all of Respondent’s businesses by all of their names, telephone numbers, and physical, postal, email, and Internet addresses; (3) describe the activities of each business; (4) describe in detail whether and how Respondent is in compliance with each Provision of this Order, including a discussion of all of the changes the Respondent made to comply with the Order; and (5) provide a copy of each Acknowledgment of the Order obtained pursuant to this Order, unless previously submitted to the Commission. B. Respondent must submit a compliance notice, sworn under penalty of perjury, within 14 days of any change in any designated point of contact or the structure of Respondent or any entity that Respondent has any ownership interest in or controls directly or indirectly that may affect compliance obligations arising under this Order, including the creation, merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate that engages in any acts or practices subject to this Order.

C. Respondent must submit notice of the filing of any bankruptcy petition, insolvency proceeding, or similar VOLUME 164 Decision and Order proceeding by or against Respondent within 14 days of its filing.

D. Any submission to the Commission required by this Order to be sworn under penalty of perjury must be true and accurate and comply with 28 U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under the laws of the United States of America that the foregoing is true and correct. Executed on: _____” and supplying the date, signatory’s full name, title (if applicable), and signature.

E. Unless otherwise directed by a Commission representative in writing, all submissions to the Commission pursuant to this Order must 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: Moonlight Slumber, C-.

VIII. Recordkeeping IT IS FURTHER ORDERED that Respondent must create certain records and retain each such record for 5 years. Specifically, Respondent must create and retain the following records:

A. Accounting records showing the revenues from all goods or services sold;

B. Personnel records showing, for each person providing services, whether as an employee or otherwise, that person’s: name; addresses; telephone numbers; job title or position; dates of service; and (if applicable) the reason for termination;

C. Records of all consumer complaints concerning the subject matter of the Order, including complaints involving representations covered by Parts I, II, III, IV, MOONLIGHT SLUMBER, LLC 903 Decision and Order or V of the Order, whether received directly or indirectly, such as through a third party, and any response;

D. A copy of each unique advertisement or other marketing material making a representation subject to this Order;

E. For 5 years from the date of the last dissemination of any representation covered by this Order: 1. All materials that were relied upon in making the representation; and 2. All tests, analyses, research, studies, or other evidence in Respondent’s possession, custody, or control that contradicts, qualifies, or otherwise calls 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; and F. All records necessary to demonstrate full compliance with each provision of this Order, including all submissions to the Commission.

IX. Compliance Monitoring IT IS FURTHER ORDERED that, for the purpose of monitoring Respondent’s compliance with this Order: A. Within 10 days of receipt of a written request from a representative of the Commission, Respondent must submit additional compliance reports or other requested information, which must be sworn under penalty of perjury, and produce records for inspection and copying.

B. For matters concerning this Order, representatives of the Commission are authorized to communicate VOLUME 164 Decision and Order directly with Respondent. Respondent must permit representatives of the Commission to interview anyone affiliated with Respondent who has agreed to such an interview. The interviewee may have counsel present. C. The Commission may use all other lawful means, including posing through its representatives as consumers, suppliers, or other individuals or entities, to Respondent or any individual or entity affiliated with Respondent, without the necessity of identification or prior notice. Nothing in this Order limits the Commission’s lawful use of compulsory process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49, 57b-1.

X. Order Effective Dates IT IS FURTHER ORDERED that this Order is final and effective upon the date of its publication on the Commission’s website (ftc.gov) as a final order. This Order will terminate on December 11, 2037, or 20 years from the most recent date that the United States or the Commission files a complaint (with or without an accompanying settlement) in federal court alleging any violation of this Order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any provision in this Order that terminates in less than 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 provision. 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 provision 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 MOONLIGHT SLUMBER, LLC 905 Analysis to Aid Public Comment 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 consent order from Moonlight Slumber, LLC (“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 involves the deceptive environmental and health claims respondent made regarding its baby mattresses. According to the FTC complaint, respondent made unsubstantiated representations that its mattresses are organic, natural, or plantbased and that its mattresses will not emit any substance, including volatile organic compounds, or off gas; claimed that testing proved that its mattresses do not emit volatile organic compounds; and represented that its mattresses have been certified by Green Safety Shield, yet failed to disclose that it has a material connection to the Green Safety Shield seal. Consumers likely interpret such seals as a claim that an independent third party certified the product. The complaint alleges that all of these claims are deceptive in violation of Section 5(a) of the FTC Act. The proposed consent order contains five provisions designed to prevent respondent from engaging in similar acts and practices in the future. Part I prohibits misleading representations VOLUME 164 Analysis to Aid Public Comment regarding whether any mattress, blanket, pillow, pad, foamcontaining product, or sleep-related product is organic, natural, or plant-based; regarding the emissions from such product; and regarding the general environmental and health benefits of such product. The order requires respondent to possess competent and reliable evidence, including scientific evidence when appropriate, to substantiate these representations. Part II prohibits misleading representations regarding emissions-free and VOC-free claims. The order requires competent and reliable scientific evidence to substantiate that a product does not emit more than a trace level of emissions of the substance about which the claim is made. The order defines “emission” to include all emissions (not just VOCs that cause smog). This definition reflects the Commission’s Enforcement Policy Statement and consumer expectations: consumers are likely concerned about the potential health effects from exposure to chemical emissions found in indoor air, not just VOCs that affect outdoor air quality. Consistent with the Green Guides, the order defines “trace level of emissions” for claims for a substance to mean that (1) emissions of the substance do not result in inhalation concentrations of that substance higher than background levels in the typical residential home; (2) emissions of the substance do not cause material harm that consumers typically associate with that substance, including harm to the environment or human health; and (3) the substance has not been added intentionally to the covered product.

Part III prohibits respondent from mispresenting the results of any tests or studies, or from misrepresenting that any product benefit is scientifically or clinically proven. Parts IV and V prohibit respondent from misrepresenting certifications or failing to adequately disclose a material connection to a party making a representation, e.g., an endorser.

Parts VI through X are reporting and compliance provisions. Part VI mandates that respondent acknowledge receipt of the order, distribute the order to certain employees and agents, and secure acknowledgments from recipients of the order. Part VII requires that respondent submit compliance reports to the FTC within ninety (90) days of the order’s issuance and submit additional reports when certain events occur. Part VIII requires MOONLIGHT SLUMBER, LLC 907 Analysis to Aid Public Comment that respondent create and retain certain records for five (5) years. Part IX provides for the FTC’s continued compliance monitoring of respondent’s activity during the order’s effective dates. Part X is a provision “sunsetting” the order after twenty (20) years, with certain exceptions.

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

VOLUME 164 Complaint