Consent Agreement With Analysis To Aid Public Comment

Page 158

BILLING CODE 6760-01-™

FEDERAL TRADE COMMISSION [File No, 922 3295] White Castle System, Inc.; Proposed

Consent Agreement With Analysis To Aid Public Comment

AGENCY: Federal Trade Commission. ACTION: Proposed consent agreement.

SUMMARY: In settlement of alleged violations of federal law prohibiting unfair acts and practices and unfair methods of competition, this consent agreement, accepted subject to final Commission approval, would prohibit, among other things, an Ohio-based chain of fast-food restaurants from misrepresenting the extent to which any product or package is capable of being recycled or the extent of the availability of recycling collection programs for such products. In addition, the consent agreement would prohibit the respondent from representing the environmental benefit of any product or packaging it uses unless it possesses competent and reliable evidence to substantiate the representation.

DATES: Comments must be received on or before [Insert date 60 days after Federal Register publication date. ADDRESSES: Comments should be directed to: FTC/Office of the Secretary, room 159, 6th Street and Pennsylvania Avenue NW., Washington, DC 20580. FOR FURTHER INFORMATION CONTACT:

C. Steven Baker or Theresa McGrew, FTC/Chicago Regional Office, 55 East Monroe Street, suite 1437, Chicago, IL 60603, (312) 353-8156.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46 and 2.34 of the Commission’s Rules of Practice (16 CFR 2.34), notice is hereby given that the following consent agreement containing a consent order to cease and desist, having been filed with

and accepted, subject to final approval, by the Commission, has been placed on the public record fora period of sixty (60) days. Public comment is invited. Such comments or views will be considered by the Commission and will be available for inspection and copying at its principal office in accordance with § 4.9(b)(6)(ii) of the Commission’s Rules of Practice (16 CFR 4.9(b)(6)(ii)).

Agreement Containing Consent Order to Cease and Desist

The Federal Trade Commission having initiated an investigation of certain acts and practices of White Castle System, Inc., a corporation (“proposed respondent”), and it now appears that proposed respondent is willing to enter into an agreement containing an order to cease and desist from the acts and practices being investigated,

It is hereby agreed by and between White Castle System, Inc., by its duly authorized officer, and its attorney, and counsel] for the Federal Trade Commission that:

1. Proposed respondent White Castle System, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its principal office or place of business at 555 West Goodale Street, Columbus, Ohio 43215.

2. Proposed respondent admits all the jurisdictional facts set forth in the draft of complaint here attached.

3. Proposed respondent waives:

a. Any further procedural steps;

b. The requirement that the Commission’s decision contain a statement of findings of fact and conclusions of law;

c. All rights to seek judicial review or otherwise to challenge or contest the validity of the order entered pursuant to this agreement; and

d, All claims under the Equal Access to Justice Act.

4. This agreement shall not become a part of the public record of the proceeding unless and until it is accepted by the Commission. If this agreement is accepted by the Commission, it, together with the draft of the complaint contemplated hereby, will be place on the public record for a period of sixty (60) days and information in respect thereto publicly released. The Commission thereafter may either withdraw its acceptance of this agreement and so notify proposed respondent, in which event it will take such action as it may consider appropriate, or issue and serve its complaint (in such form as the circumstances may require) and

Page 159

Federal Register / Vol. 58, No. 204 / Monday, October

25, 1993 / Notices 55073

decision, in disposition of the proceeding.

5. This agreement is for settlement purposes only and does not constitute an admission by proposed respondent that the law has been violated as alleged in the attached draft complaint or that the facts as alleged in the attached draft complaint, other than the jurisdictional facts, are true.

6. This agreement contemplates that, if it is accepted by the Commission, and if such acceptance is not subsequently withdrawn by the Commission pursuant to the provisions of § 2.34 of the Commission’s Rules the Commission may without further notice to proposed respondent, (1) issue its complaint corresponding in form and substance with the draft of complaint here attached and its decision containing the following order to cease and desist in disposition of the proceeding, and (2) make information public in respect thereto. When so entered, the order to cease and desist shall have the same « force and effect and may be altered, modified or set aside in the same manner and within the same time provided by statute for other orders. The order shall become final upon service. Delivery by the U.S. Postal Service of the decision containing the agreed-to order to proposed respondent’s address as stated in this agreement shall constitute service. Proposed respondent waives any right it might have to any other manner of service. The complaint may be used in construing the terms of the order, and no agreement, understanding, representation, or interpretation not contained in the order or in the agreement may be used to vary or contradict the terms of the order.

7. Proposed respondent has read the complaint and the order contemplated hereby. It understands that once the order has been issued, it will be required to file one or more compliance reports showing it has fully complied with the order. Proposed respondent further understands that it may be liable for civil penalties in the amount provided by law for each violation of the order after it becomes final.

Order Definitions

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

The term ‘product or package” means any product or package, including, but not limited to, any item used by respondent to contain, serve, or package goods, offered for sale, sold or distributed to the public by respondent, its successors and assigns, under the White Castle brand name or any other

brand name of respondent, its successors and assigns; and, also means any product or package sold or distributed to the public by third parties under private labeling agreements with respondent, its successors and assigns.

he term “‘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.

It is ordered, That respondent, White Castle System, Inc., a corporation, its successors and assigns, and its officers, agents, representatives, and employees, directly or through any corporation, ~ subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, distribution, or use of any product or package in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting, in any manner, directly or by implication, the extent to which any such product or package is capable of being recycled or the extent to which recycling collection programs for such product or package are available.

i

It is further ordered, That respondent, White Castle System, Inc., a corporation, its successors and assigns, and its officers, agents, representatives, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, distribution, or use of any product or package in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, in any manner, directly or by implication, that any product or package offers any environmental benefit, unless at the time of making such representation, respondent possesses and relies upon competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, that substantiates such representation.

i

It is further ordered, That for five (5) years after the last date of dissemination of any representation covered by this Order, respondent, or its successors and assigns, shall maintain and upon

request make available to the Federal Trade Commission for inspection and copying:

A. All materials that were relied upon in disseminating such representations; and

B. All tests, reports, studies, surveys, demonstrations, or other evidence in its possession or control that contradict, qualify, or call into question such representation, or the basis relied upon for such representation, including complaints from consumers.

IV

It is further ordered, That the respondent shall distribute a copy of this Order to each of its operating divisions and to each of its officers, agents, representatives, or employees engaged in the preparation and placement of advertisements, promotional materials, product labels or other such sales materials covered by this Order.

V.

It is Further Ordered, That respondent shall notify the Commission at least thirty (30) days prior to any proposed change in the corporation such as a dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other change in the corporation which may affect compliance obligations under this Order.

VI

It is Further Ordered, That respondent shall, within sixty (60) days after service of this Order upon it, and at such other times as the Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this Order.

Analysis of Proposed Consent Order To Aid Public Comment

The Federal Trade Commission has accepted an agreement, subject to final approval, to a proposed consent order from respondent White Castle System, Inc.

The proposed consent order has been placed on the public record for sixty (60) days for reception of comments by interested persons. Comments received during this period will become part of the public record. After sixty (60) days, the Commission will again review the agreement and the comments received and will decide whether it should withdraw from the agreement and take other appropriate action or make final the agreement’s proposed order.

Page 160

35074

Federal Register / Vol. 58, No. 204 / Monday, October 25, 1993 / Notices

This matter concerns environmenta} claims made on the labels of packaging used to contain respondent's food products. The Commission's compliant charges that respondent made false and unsubstantiated claims that its packaging was recyclable after ordinary use. In fact, the complaint alleges, while the respondent's packaging is capable of being recycled, the vast majority of consumers cannot recycle it because there are virtually no collection facilities that accept food contaminated paper packaging for recycling.

The proposed consent order contains provisions. designed. to remedy the violations charged and to prevent the respondent from engaging in similar acts and practices in future. The proposed order extends to all products or packages that are used by the respondent to package its food products or that are sold to the public.

Part I of the proposed consent order prohibits the respondent from misrepresenting the extent to which any product or packaging is capable of being recycled or the extent to which recycling collection programs for such products or packaging are available. Part II of the proposed order prohibits the respondent from misrepresenting the environmental benefit of any product or packaging it uses unless at the time such representation is made the respondent possesses and relies upon competent and reliable evidence that substantiates the representation.

The remaining parts of the proposed consent order require the respondent to maintain materials relied upon to substantiate claims covered by the order, to distribute copies of the order to each of its operating divisions and to certain company officials, to notify the Commission of any changes in corporate structure that might affect compliance with the Order, and to file one or more compliance reports.

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

Donald S. Clark,

Secretary.

{FR Doc. 93—26196 Filed 10-22-93; 8:45 am] BILLING CODE 6750-01-4

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Disease Controt and Prévention

{Announcement Number 408}

Data-Management Capacity-Building Grants for Preventive Heaith and Health Services Block Grant Recipients

Introduction

The Centers. for Disease Control and Prevention (CDC) announces the : availability of funds in fiscal year (FY) 1994 for grants to build capacity for data collection, analysis, evaluation, and utilization within governmental agencies designated as recipients of Preventive Health and Health Services (PHHS) Block Grants.

The Public Health Service (PHS) is committed to achieving the health promotion and disease prevention objectives of Healthy People 2000, a PHS-led national activity to reduce morbidity and mortality and improve the quality of life. This announcement is related, generally, to all the priority areas of Health Promotion and Preventive Services and, specifically, to the priority area of Surveillance and Data Systems. (For ordering a copy of Healthy People 2000, see the Section Where to Obtain Additional Information.)

Authority This grant program is authorized under sections 301(a) and 317(a) of the

Public Health Service Act (42 U.S.C. 241(a) and 247b{a)), as amended.

Eligible Applicants

Assistance will be provided only to the 21 recipients of PHHS Block Grants under title XIX, part A, section 1902 of the Public Health Service Act that were not previously funded for datamanagement capacity-building grants by the CDC in FY 1992 and FY 1993 under Program Announcement Number 255, entitled: Data-Management Capacity- Building Grants For Preventive Health And Health Services Block Grant Recipients (minigrants}, or by the Public Health Foundation in FY 1990 or FY 1991. The eligible applicants include: American Samoa, Arizona, Connecticut, Delaware, District of Columbia, Florida, Kansas, the Kickapoo Tribe of Kansas, the Santee Sioux Tribe of Nebraska, Marshall Islands, Maryland, Minnesota, Montana, New Jersey, North Dakota, ° Northern Mariana Islands, Pennsylvania, the Commonwealth of Puerto Rico, South Dakota, Vermont,

\

and the Virgin Islands. No other applications will be solicited.

Availability of Funds

Approximately $300,000 will be available in FY 1994 to fund approximately 10 grants. It is expected that the average award will be $30,000 ranging from $29,000 to $31,000. It is expected that the awards will begin on or about April 1, 1994, for one 12-month budget period within a project period of one year. Funding estimates may vary and are subject to change.

Purpose

The purpose of these grants is to assist recipients of PHHS Block Grant funds in building the capacity to systematically collect, analyze, interpret, disseminate, and use health data as specifically addressed by Objectives 22.1 through 22.7 of Healthy Peaple 2000: National Health Promotion and Disease Prevention Objectives.

Program Requirements

Activities supported through this program announcement must be directly related to the improvement of datamanagement systems for monitoring and evaluating PHHS Block Grant funded programs and activities. Grantees must propose to carry out one or more of the following activities:

A. Design and implement methods for identifying and using systemwide (state and local) program data.

B. Conduct surveys and establish datacollection procedures.

C. Develop protocols for the analysis of data and the evaluation of programspecific accomplishments.

D. Develop referral and tracking systems of patients identified with risk factors of chronic disease (e.g., smoking, hypertension, poor nutrition).

E. Develop new surveillance systems to monitor service delivery and impact. Grantees may purchase computer hardware and software to assist in the surveillance and analysis activity.

Evaluation Criteria

Applications will be reviewed and evaluated according to the following criteria:

A. The degree to which the applicant demonstrates an understanding of the purpose for this program announcement, the data-management needs, and problems to be addressed. (20 points)

B. The degree to which the applicant’s objectives are measurable, specific, time framed, and consistent with the stated purpose of this announcement. (20 points}

Page 161

‘Federal Register / Vol.'58, No. 204 / Monday, October 25, 1993 / Notices

55075,

C. The adequacy of the applicant’s plan to carry out the activities proposed and meet the stated objectives within the time periods specified. (20 points)

D. The adequacy of the applicant's plan to monitor progress toward meeting the objectives of the project. (20 points)

E. The adequacy of the applicant's plan to provide the appropriate, qualified staff and resources necessary to achieve the program objectives. (20 points)

F. The extent to which the budget is reasonable, adequately justified, and consistent with the intended use of grant funds. (Not scored)

Executive Order 12372 Review

Applications are subject to Intergovernmental Review of Federal Programs as governed by Executive Order 12372. E.O. 12372 sets up a system for state and local government review of proposed Federal assistance applications. Applicants (other than federally-recognized Indian tribal governments) should contact their state Single Point of Contact (SPOC) as early as possible to alert them to the prospective applications and receive any necessary instructions on the state process. For proposed projects serving more than one state, the applicant is advised to contact the SPOC for each affected state. A current list of SPOCs is included in the application kit. If SPOCs have any state process recommendations on applications submitted to CDC, they should reference this announcement number (408) and forward recommendations to Edwin L. Dixon, Grants Management Officer, Grants Management Branch, Procurement and Grants Office, Centers for Disease Control and Prevention (CDC), 255 East Paces Ferry Road, NE., room 300, Mailstop E—18, Atlanta, Georgia 30305. The due date for state process recommendations is 60 days after the application deadline date for new and competing continuation awards. CDC does not guarantee to “accommodate or explain” state process Preeti en: it receives after that

ate.

Public Health System Reporting Requirements

This program is not subject to the Public Health System Reporting Requirements.

Catalog of Federal Domestic Assistance Number

The Catalog of Federal Domestic Assistance number assigned to this program is 93.283.

Other Requirements Paperwork Reduction Act

Data collection initiated under this grant has been approved by the Office of Management and Budget under number 0920-0106, “‘Preventive Health and Health Services Grant Reporting Requirements’, Expiration date 9/30/94.

Application Submission and Deadline

The original and two copies of the application PHS Form 5161-1 (Revised 7/92) must be submitted to Edwin L. Dixon, Grants Management Officer, Grants Management Branch, Procurement and Grants Office, Centers For Disease Control and Prevention (CDC), 255 East Paces Ferry Road, NE., room 314, Mailstop E-18, Atlanta, Georgia 30305, on or before February 1, 1994.

1. Deadline: Applications shall be considered as meeting the deadline if they are either:

(a) Received on or before the deadline date; or

(b) Sent on or before the deadline date and received in time for submission to the objective review group. Applicants must request a legibly dated U.S. Postal Service postmark or obtain a legibly dated receipt from a commercial carrier or U.S. Postal Service. Private metered postmarks shall not be accepted as proof of timely mailing.

2. Late Applications: Applications which do not meet the criteria on 1.{a) or 1.(b) above are considered late applications, Late applications will not be considered in the current competition and will be returned to the applicant.

Where To Obtain Additional Information

A complete program description and information on application procedures are contained in the application package. Business management technical assistance may be obtained from Locke Thompson, Grants Management Specialist, Grants Management Branch, Procurement and Grants Office, Centers For Disease Control and Prevention (CDC), 255 East Paces Ferry Road, NE., room 314, Mailstop E-18, Atlanta, Georgia 30305, telephone (404) 842-6595. Programmatic technical assistance may be obtained from C. Joseph Webb, Office of Surveillance and Analysis, National Centers for Chronic Disease Prevention and Health Promotion, Mailstop K-30, Centers for Disease Control and Prevention (CDC), 4770 Buford Highway, NE., Atlanta, Georgia 30341- 3724, telephone (404) 488-5299.

. Please refer to Announcement Number 408 when requesting information and submitting an application.

otential applicants may obtain a copy of Healthy People 2000 (Full Report: Stock No. 017-001-00474—0) or Healthy People 2000 (Summary Report: Stock No. 017-001-00473-1) referenced in the Introduction through the

Superintendent of Documents, Government Printing Office, Washington, DC 20402-9325, telephone (202) 783-3238.

Dated: October 18, 1993. Robert L. Foster,

Acting Associate Director for Management and Operations, Centers for Disease Control and Prevention (CDC).

[FR Doc. 93-26125 Filed 10-22-93; 8:45 am]