CSE, Inc., et al.; Analysis of Proposed Consent Order To Aid Public Comment, 41908-41910 [09-19806]

Agencies

• FEDERAL TRADE COMMISSION

[Federal Register Volume 74, Number 159 (Wednesday, August 19, 2009)]
[Notices]
[Pages 41908-41910]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 09-19806]


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FEDERAL TRADE COMMISSION

[File No. 082 3181]


CSE, Inc., et al.; Analysis of Proposed Consent Order To Aid 
Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

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SUMMARY: The consent agreement in this matter settles alleged 
violations of federal law prohibiting unfair or deceptive acts or 
practices or unfair methods of competition. The attached Analysis to 
Aid Public Comment describes both the allegations in the complaint and 
the terms of the consent order -- embodied in the consent agreement -- 
that would settle these allegations.

DATES: Comments must be received on or before September 10, 2009.

ADDRESSES: Interested parties are invited to submit written comments 
electronically or in paper form. Comments should refer to ``CSE, Inc., 
File No. 082 3181'' to facilitate the organization of comments. Please 
note that your comment -- including your name and your state -- will be 
placed on the public record of this proceeding, including on the 
publicly accessible FTC website, at (https://www.ftc.gov/os/publiccomments.shtm).
    Because comments will be made public, they should not include any 
sensitive personal information, such as an individual's Social Security 
Number; date of birth; driver's license number or other state 
identification number, or foreign country equivalent; passport number; 
financial account number; or credit or debit card number. Comments also 
should not include any sensitive health information, such as medical 
records or other individually identifiable health information. In 
addition, comments should not include any ``[t]rade secret or any 
commercial or financial information which is obtained from any person 
and which is privileged or confidential. . . .,'' as provided in 
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and Commission Rule 
4.10(a)(2), 16 CFR 4.10(a)(2). Comments containing material for which 
confidential treatment is requested must be filed in paper form, must 
be clearly labeled ``Confidential,'' and must comply with FTC Rule 
4.9(c), 16 CFR 4.9(c).\1\
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    \1\ The comment must be accompanied by an explicit request for 
confidential treatment, including the factual and legal basis for 
the request, and must identify the specific portions of the comment 
to be withheld from the public record. The request will be granted 
or denied by the Commission's General Counsel, consistent with 
applicable law and the public interest. See FTC Rule 4.9(c), 16 CFR 
4.9(c).
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    Because paper mail addressed to the FTC is subject to delay due to 
heightened security screening, please consider submitting your comments 
in electronic form. Comments filed in electronic form should be 
submitted by using the following weblink: (https://secure.commentworks.com/ftc-CSE) and following the instructions on the 
web-based form). To ensure that the Commission considers an electronic 
comment, you must file it on the web-based form at the weblink: 
(https://secure.commentworks.com/ftc-CSE). If this Notice appears at 
(https://www.regulations.gov/search/index.jsp), you may also file an 
electronic comment through that website. The Commission will consider 
all comments that regulations.gov forwards to it. You may also visit 
the FTC website at (https://

[[Page 41909]]

www.ftc.gov/) to read the Notice and the news release describing it.
    A comment filed in paper form should include the ``CSE, Inc., File 
No. 082 3181'' reference both in the text and on the envelope, and 
should be mailed or delivered to the following address: Federal Trade 
Commission, Office of the Secretary, Room H-135 (Annex D), 600 
Pennsylvania Avenue, NW, Washington, DC 20580. The FTC is requesting 
that any comment filed in paper form be sent by courier or overnight 
service, if possible, because U.S. postal mail in the Washington area 
and at the Commission is subject to delay due to heightened security 
precautions.
    The Federal Trade Commission Act (``FTC Act'') and other laws the 
Commission administers permit the collection of public comments to 
consider and use in this proceeding as appropriate. The Commission will 
consider all timely and responsive public comments that it receives, 
whether filed in paper or electronic form. Comments received will be 
available to the public on the FTC website, to the extent practicable, 
at (https://www.ftc.gov/os/publiccomments.shtm). As a matter of 
discretion, the Commission makes every effort to remove home contact 
information for individuals from the public comments it receives before 
placing those comments on the FTC website. More information, including 
routine uses permitted by the Privacy Act, may be found in the FTC's 
privacy policy, at (https://www.ftc.gov/ftc/privacy.shtm).

FOR FURTHER INFORMATION CONTACT: Korin Ewing or Melinda Claybaugh, 
Bureau of Consumer Protection, 600 Pennsylvania Avenue, NW, Washington, 
D.C. 20580, (202) 326-2203.

SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal 
Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and Sec.  2.34 the 
Commission Rules of Practice, 16 CFR 2.34, notice is hereby given that 
the above-captioned 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 for a 
period of thirty (30) days. The following Analysis to Aid Public 
Comment describes the terms of the consent agreement, and the 
allegations in the complaint. An electronic copy of the full text of 
the consent agreement package can be obtained from the FTC Home Page 
(for August 11, 2009), on the World Wide Web, at (https://www.ftc.gov/os/actions.shtm). A paper copy can be obtained from the FTC Public 
Reference Room, Room 130-H, 600 Pennsylvania Avenue, NW, Washington, 
D.C. 20580, either in person or by calling (202) 326-2222.
    Public comments are invited, and may be filed with the Commission 
in either paper or electronic form. All comments should be filed as 
prescribed in the ADDRESSES section above, and must be received on or 
before the date specified in the DATES section.

Analysis of Agreement Containing 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 CSE, Inc., d/b/a Mad Mod, a corporation, and Chris and Cyndi 
Saetveit, individually and as owners of the corporation (together, 
``respondents'').
    The proposed consent order has been placed on the public record for 
thirty (30) days for reception 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 respondents' marketing and sale of textile 
fiber products purportedly made of bamboo fiber. The FTC complaint 
alleges that respondents violated Section 5(a) of the FTC Act by making 
false claims that their textile fiber products are bamboo fiber; retain 
the anti-microbial properties of the bamboo plant; and are manufactured 
using an environmentally-friendly process. The complaint alleges that 
respondents' textile fiber products are made of rayon and do not retain 
the anti-microbial properties of the bamboo plant, and that their 
manufacturing process involves the use of toxic chemicals and results 
in the emission of hazardous air pollutants. The complaint further 
alleges that the respondents failed to have substantiation for the 
foregoing claims.
    The complaint also alleges that the proposed respondents have 
violated the Textile Fiber Products Identification Act (``Textile 
Act'') and the Rules and Regulations promulgated thereunder (``Textile 
Rules'') by falsely and deceptively labeling and advertising their 
textile fiber products as bamboo; by advertising their products without 
including in the description of each product a statement that the 
product was made in the U.S.A., imported, or both; and by failing to 
properly label their textile fiber products with the name of the 
country where each such product was processed or manufactured.
    The proposed consent order contains provisions designed to prevent 
respondents from engaging in similar acts and practices in the future. 
Part I.A of the proposed order prohibits respondents from representing 
that any textile fiber product (1) is made of bamboo or bamboo fiber; 
(2) is manufactured using an environmentally friendly process; or (3) 
is anti-microbial or retains the anti-microbial properties of any 
material from which it is made, unless such representations are true, 
not misleading, and substantiated by competent and reliable scientific 
evidence. Part I.B prohibits respondents from making claims about the 
benefits, performance, or efficacy of any textile fiber product, unless 
at the time the representation is made, it is truthful and not 
misleading, and is substantiated by competent and reliable evidence, 
which when appropriate must be competent and reliable scientific 
evidence. Part II makes clear that, although Part I prohibits 
respondents from making false and unsubstantiated representations that 
their textile fiber products are made of bamboo or bamboo fiber as 
opposed to rayon, the respondents nonetheless may describe such 
products using the generic name of any manufactured fiber and 
identifying bamboo as the cellulose source for such fiber (e.g., rayon 
made from bamboo), so long as such representation is true and 
substantiated. Part III of the proposed order prohibits respondents 
from failing to comply with the Textile Act or the Textile Rules.
    Parts IV through VIII require respondents to keep copies of 
relevant advertisements and materials substantiating claims made in the 
advertisements; to provide copies of the order to certain of their 
personnel; to notify the Commission of changes in corporate structure 
that might affect compliance obligations under the order; to notify the 
Commission of changes in individual respondents' current business or 
employment; and to file compliance reports with the Commission and 
respond to other requests from FTC staff. Part IX provides that the 
order will terminate after twenty (20) years under certain 
circumstances.
    The purpose of this analysis is to facilitate public comment on the 
proposed order. It is not intended to constitute an official 
interpretation of the agreement and proposed order or to modify in any 
way their terms.

[[Page 41910]]

    By direction of the Commission.

Richard C. Donohue
Acting Secretary.
[FR Doc. 09-19806 Filed 8-18-09: 1:15 pm]
BILLING CODE 6750-01-S