Gorell Enterprises, Inc.; Analysis of Proposed Consent Order To Aid Public Comment, 12584-12586 [2012-4997]

Download as PDF 12584 Federal Register / Vol. 77, No. 41 / Thursday, March 1, 2012 / Notices Intermediary licenses have been reissued by the Federal Maritime Commission pursuant to section 19 of the Shipping Act of 1984 (46 U.S.C. Chapter 409) and the regulations of the Commission pertaining to the licensing FEDERAL MARITIME COMMISSION Ocean Transportation Intermediary License Reissuance Notice is hereby given that the following Ocean Transportation of Ocean Transportation Intermediaries, 46 CFR part 515. License No. Name/address 002178F ............ 003729F ............ 022436NF ......... Leschaco, Inc., One Evertrust Plaza, Suite 304, Jersey City, NJ 07302 ................................................ Tratto International Forwarders Corporation, 801 Madrid Street, Suite 1, Miami, FL 33134 .................. RLE International, Inc., 1400 NW 96th Avenue, Suite 106, Doral, FL 33172 ......................................... Vern W. Hill, Director, Bureau of Certification and Licensing. [FR Doc. 2012–4945 Filed 2–29–12; 8:45 am] BILLING CODE P FEDERAL MARITIME COMMISSION mstockstill on DSK4VPTVN1PROD with NOTICES Ocean Transportation Intermediary License; Revocation The Federal Maritime Commission hereby gives notice that the following Ocean Transportation Intermediary license has been revoked pursuant to section 19 of the Shipping Act of 1984 (46 U.S.C. Chapter 409) and the regulations of the Commission pertaining to the licensing of Ocean Transportation Intermediaries, 46 CFR part 515, effective on the corresponding date shown below: License Number: 004621F. Name: Global Forwarding, Inc. dba Global Connection. Address: 305 Joyce Avenue, Arcadia, CA 91006. Date Revoked: February 10, 2012. Reason: Failed to maintain a valid bond. License Number: 016207N. Name: Admiral Overseas Shipping Company, Inc. Address: 323 South Swing Road, Greensboro, NC 27409. Date Revoked: January 28, 2012. Reason: Failed to maintain a valid bond. License Number: 018164N. Name: Cibao Cargo, Inc. Address: 1345 Cromwell Avenue, Bronx, NY 10452. Date Revoked: February 2, 2012. Reason: Failed to maintain a valid bond. License Number: 1900F. Name: U.S.A. Shipping Corporation. Address: 1890 NW 82nd Avenue, Suite 101, Miami, FL 33126. Date Revoked: February 4, 2012. Reason: Failed to maintain a valid bond. License Number: 020275N. VerDate Mar<15>2010 17:25 Feb 29, 2012 Jkt 226001 Date reissued Name: Global Tech Investments, L.L.C. dba Global Freight Forwarding. Address: 1851 Central Place South, Suite 122, Kent, WA 98030. Date Revoked: February 9, 2012. Reason: Failed to maintain a valid bond. License Number: 020479F. Name: Karon Jones dba Keene Machinery and Export. Address: 425 Sandy Lane, Dublin, TX 76446. Date Revoked: February 11, 2012. Reason: Failed to maintain a valid bond. License Number: 020527NF. Name: Fast Logistics, Inc. Address: 3350 SW 3rd Avenue, Suite 207, Fort Lauderdale, FL 33315. Date Revoked: February 1, 2012. Reason: Failed to maintain valid bonds. License Number: 021014N. Name: Magic Transport, Inc. Address: Pepsi Industrial Park, PR–2, KM 19.5, Interior BO Candelaria, Toa Baja, PR 00949. Date Revoked: February 2, 2012. Reason: Failed to maintain a valid bond. License Number: 021869F. Name: Merco Air & Ocean Cargo, Inc. Address: 6 Fir Way, Cooper City, FL 33026. Date Revoked: February 1, 2012. Reason: Failed to maintain a valid bond. Vern W. Hill, Director, Bureau of Certification and Licensing. [FR Doc. 2012–4944 Filed 2–29–12; 8:45 am] BILLING CODE 6730–01–P January 18, 2012. January 20, 2012. January 20, 2012. 225.41 of the Board’s Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the notices are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). The notices are available for immediate inspection at the Federal Reserve Bank indicated. The notices also will be available for inspection at the offices of the Board of Governors. Interested persons may express their views in writing to the Reserve Bank indicated for that notice or to the offices of the Board of Governors. Comments must be received not later than March 16, 2012. A. Federal Reserve Bank of Dallas (E. Ann Worthy, Vice President) 2200 North Pearl Street, Dallas, Texas 75201– 2272: 1. Jimmy Enriquez, The Woodlands, Texas, individually and as trustee for JE Trust No. 2, The Woodlands, Texas; to acquire voting shares of Uvalde Bancshares, Inc., Dover, Delaware, and thereby indirectly acquire voting shares of Uvalde National Bank, Uvalde, Texas. Board of Governors of the Federal Reserve System, February 27, 2012. Robert deV. Frierson, Deputy Secretary of the Board. [FR Doc. 2012–4956 Filed 2–29–12; 8:45 am] BILLING CODE 6210–01–P FEDERAL TRADE COMMISSION [File No. 112 3053] Gorell Enterprises, Inc.; Analysis of Proposed Consent Order To Aid Public Comment Federal Trade Commission. Proposed Consent Agreement. AGENCY: FEDERAL RESERVE SYSTEM Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company The notificants listed below have applied under the Change in Bank Control Act (12 U.S.C. 1817(j)) and PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 ACTION: 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 SUMMARY: E:\FR\FM\01MRN1.SGM 01MRN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 77, No. 41 / Thursday, March 1, 2012 / Notices draft 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 March 23, 2012. ADDRESSES: Interested parties may file a comment online or on paper, by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Write ‘‘Gorell Enterprises, File No. 112 3053’’ on your comment, and file your comment online at https:// ftcpublic.commentworks.com/ftc/ gorellenterprisesconsent, by following the instructions on the Web-based form. If you prefer to file your comment on paper, mail or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Room H–113 (Annex D), 600 Pennsylvania Avenue NW., Washington, DC 20580. FOR FURTHER INFORMATION CONTACT: James A. Kohm (202–326–2640) or Joshua S. Millard (202–326–2454), FTC, Bureau of Consumer Protection, 600 Pennsylvania Avenue NW., Washington, DC 20580. SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and § 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 February 22, 2012), 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, DC 20580, either in person or by calling (202) 326–2222. You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before March 23, 2012. Write ‘‘Gorell Enterprises, File No. 112 3053’’ on your comment. Your comment—including your name and your state—will be placed on the public record of this proceeding, including, to the extent practicable, on the public Commission Web site, at https://www.ftc.gov/os/ publiccomments.shtm. As a matter of VerDate Mar<15>2010 17:25 Feb 29, 2012 Jkt 226001 discretion, the Commission tries to remove individuals’ home contact information from comments before placing them on the Commission Web site. Because your comment will be made public, you are solely responsible for making sure that your comment does not include any sensitive personal information, like anyone’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. You are also solely responsible for making sure that your comment does not include any sensitive health information, like medical records or other individually identifiable health information. In addition, do 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 FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do not include competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names. If you want the Commission to give your comment confidential treatment, you must file it in paper form, with a request for confidential treatment, and you have to follow the procedure explained in FTC Rule 4.9(c), 16 CFR 4.9(c).1 Your comment will be kept confidential only if the FTC General Counsel, in his or her sole discretion, grants your request in accordance with the law and the public interest. Postal mail addressed to the Commission is subject to delay due to heightened security screening. As a result, we encourage you to submit your comments online. To make sure that the Commission considers your online comment, you must file it at https:// ftcpublic.commentworks.com/ftc/ gorellenterprisesconsent by following the instructions on the Web-based form. If this Notice appears at https:// www.regulations.gov/#!home, you also may file a comment through that Web site. If you file your comment on paper, write ‘‘Gorell Enterprises, File No. 112 3053’’ on your comment and on the envelope, and mail or deliver it to the following address: Federal Trade 1 In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request, and must identify the specific portions of the comment to be withheld from the public record. See FTC Rule 4.9(c), 16 CFR 4.9(c). PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 12585 Commission, Office of the Secretary, Room H–113 (Annex D), 600 Pennsylvania Avenue NW., Washington, DC 20580. If possible, submit your paper comment to the Commission by courier or overnight service. Visit the Commission Web site at https://www.ftc.gov to read this Notice and the news release describing it. The FTC Act and other laws that 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 on or before March 23, 2012. You can find more information, including routine uses permitted by the Privacy Act, in the Commission’s privacy policy, at https://www.ftc.gov/ftc/privacy.htm. 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 Gorell Enterprises, Inc., a corporation (‘‘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 respondent’s marketing and sale of replacement windows for use in residences. According to the FTC complaint, respondent represented that consumers who replace their windows with respondent’s Thermal Master III® glass system windows are likely to achieve residential energy savings of 40% or save 40% on residential heating and cooling costs. The complaint alleges that respondent did not possess and rely upon a reasonable basis substantiating these representations when it made them. Many factors determine the savings homeowners can realize by replacing their windows, including the home’s geographic location, size, insulation package, and existing windows. Consumers who replace single or double-paned wood or vinylframed windows—common residential window types in the United States— with Gorell replacement windows are not likely to achieve a 40% reduction in residential energy consumption or heating and cooling costs. The complaint also alleges that, by providing E:\FR\FM\01MRN1.SGM 01MRN1 mstockstill on DSK4VPTVN1PROD with NOTICES 12586 Federal Register / Vol. 77, No. 41 / Thursday, March 1, 2012 / Notices its independent dealers and installers with advertising and other promotional materials making the above unsubstantiated representations, respondent provided the means and instrumentalities to engage in deceptive practices. Thus, the complaint alleges that respondent engaged in unfair or deceptive practices in violation of Section 5(a) of the FTC Act. The proposed consent order contains three provisions designed to prevent respondent from engaging in similar acts and practices in the future. Part I addresses the marketing of windows. It prohibits respondent from making any representation that: (A) Consumers who replace their windows with respondent’s windows achieve up to or a specified amount or percentage of energy savings or reduction in heating and cooling costs; or (B) respondent guarantees or pledges that consumers who replace their windows with respondent’s windows will achieve up to or a specified amount or percentage of energy savings or reduction in heating and cooling costs; unless the representation is non-misleading and, at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence to substantiate that all or almost all consumers are likely to receive the maximum represented savings or reduction. Further, if respondent represents, guarantees, or pledges that consumers achieve such energy savings or heating and cooling cost reductions under specified circumstances, it must: Disclose those circumstances clearly and prominently in close proximity to such representation, guarantee, or pledge; and substantiate that all or almost all consumers are likely to receive the maximum represented, guaranteed, or pledged savings or reduction under those circumstances (e.g., when replacing a window of a specific composition in a building having a specific level of insulation in a specific region). The performance standard imposed under this Part constitutes fencing-in relief reasonably necessary to ensure that any future energy savings or reduction claims are not deceptive. Part I of the order requires substantiation for representations including the words ‘‘up to’’ because the respondent may elect to make such representations in the future. The words ‘‘up to’’ do not effectively qualify representations regarding the energy savings or cost reductions likely to be achieved through replacement windows. Therefore, Part I requires the same level of substantiation regardless of whether the covered representation VerDate Mar<15>2010 17:25 Feb 29, 2012 Jkt 226001 includes the words ‘‘up to.’’ The FTC’s proposed consent order should not be interpreted as a general statement of how the Commission may interpret or take other action concerning representations including the words ‘‘up to’’ for other products or services in the future. Parts II and III address any product or service for which respondent makes any energy-related efficacy representation. Part II prohibits respondent from making any representation: (A) That any specific number or percentage of consumers who replace their windows with respondent’s windows achieve energy savings or reduction in heating and cooling costs; or (B) about energy consumption, energy savings, energy costs, heating and cooling costs, Ufactor, solar heat gain coefficient, Rvalue, K-value, insulating properties, thermal performance, or energy-related efficacy; unless the representation is non-misleading and substantiated by competent and reliable scientific evidence. Part III prohibits respondent from providing to others the means and instrumentalities with which to make any false, unsubstantiated, or otherwise misleading representation of material fact. It defines ‘‘means and instrumentalities’’ to mean any information, including any advertising, labeling, or promotional, sales training, or purported substantiation materials, for use by trade customers in their marketing of any such product or service. Parts IV though VII require respondent to: Keep copies of advertisements and materials relied upon in disseminating any representation covered by the order; provide copies of the order to certain personnel, agents, and representatives having responsibilities with respect to the subject matter of the order; notify the Commission of changes in its structure that might affect compliance obligations under the order; and file a compliance report with the Commission and respond to other requests from FTC staff. Part VIII 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 complaint or the proposed order, or to modify the proposed order’s terms in any way. PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 By direction of the Commission, Commissioner Rosch abstaining. Donald S. Clark, Secretary. [FR Doc. 2012–4997 Filed 2–29–12; 8:45 am] BILLING CODE 6750–01–P FEDERAL TRADE COMMISSION [File No. 112 3001] Serious Energy, Inc.; Analysis of Proposed Consent Order To Aid Public Comment Federal Trade Commission. Proposed consent agreement. AGENCY: ACTION: 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 draft 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 March 23, 2012. ADDRESSES: Interested parties may file a comment online or on paper, by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION section below. Write ‘‘Serious Energy, File No. 112 3001’’ on your comment, and file your comment online at https:// ftcpublic.commentworks.com/ftc/ seriousenergyconsent, by following the instructions on the web-based form. If you prefer to file your comment on paper, mail or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Room H–113 (Annex D), 600 Pennsylvania Avenue NW., Washington, DC 20580. FOR FURTHER INFORMATION CONTACT: James A. Kohm (202–326–2640) or Joshua S. Millard (202–326–2454), FTC, Bureau of Consumer Protection, 600 Pennsylvania Avenue NW., Washington, DC 20580. SUPPLEMENTARY INFORMATION: Pursuant to section 6(f) of the Federal Trade Commission Act, 38 Stat. 721, 15 U.S.C. 46(f), and § 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 SUMMARY: E:\FR\FM\01MRN1.SGM 01MRN1

Agencies

[Federal Register Volume 77, Number 41 (Thursday, March 1, 2012)]
[Notices]
[Pages 12584-12586]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-4997]


=======================================================================
-----------------------------------------------------------------------

FEDERAL TRADE COMMISSION

[File No. 112 3053]


Gorell Enterprises, Inc.; Analysis of Proposed Consent Order To 
Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed Consent Agreement.

-----------------------------------------------------------------------

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

[[Page 12585]]

draft 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 March 23, 2012.

ADDRESSES: Interested parties may file a comment online or on paper, by 
following the instructions in the Request for Comment part of the 
SUPPLEMENTARY INFORMATION section below. Write ``Gorell Enterprises, 
File No. 112 3053'' on your comment, and file your comment online at 
https://ftcpublic.commentworks.com/ftc/gorellenterprisesconsent, by 
following the instructions on the Web-based form. If you prefer to file 
your comment on paper, mail or deliver your comment to the following 
address: Federal Trade Commission, Office of the Secretary, Room H-113 
(Annex D), 600 Pennsylvania Avenue NW., Washington, DC 20580.

FOR FURTHER INFORMATION CONTACT: James A. Kohm (202-326-2640) or Joshua 
S. Millard (202-326-2454), FTC, Bureau of Consumer Protection, 600 
Pennsylvania Avenue NW., Washington, DC 20580.

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 February 22, 2012), 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, DC 
20580, either in person or by calling (202) 326-2222.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before March 23, 2012. 
Write ``Gorell Enterprises, File No. 112 3053'' on your comment. Your 
comment--including your name and your state--will be placed on the 
public record of this proceeding, including, to the extent practicable, 
on the public Commission Web site, at https://www.ftc.gov/os/publiccomments.shtm. As a matter of discretion, the Commission tries to 
remove individuals' home contact information from comments before 
placing them on the Commission Web site.
    Because your comment will be made public, you are solely 
responsible for making sure that your comment does not include any 
sensitive personal information, like anyone'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. You are also solely 
responsible for making sure that your comment does not include any 
sensitive health information, like medical records or other 
individually identifiable health information. In addition, do 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 FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2). In particular, do 
not include competitively sensitive information such as costs, sales 
statistics, inventories, formulas, patterns, devices, manufacturing 
processes, or customer names.
    If you want the Commission to give your comment confidential 
treatment, you must file it in paper form, with a request for 
confidential treatment, and you have to follow the procedure explained 
in FTC Rule 4.9(c), 16 CFR 4.9(c).\1\ Your comment will be kept 
confidential only if the FTC General Counsel, in his or her sole 
discretion, grants your request in accordance with the law and the 
public interest.
---------------------------------------------------------------------------

    \1\ In particular, the written request for confidential 
treatment that accompanies the comment must include the factual and 
legal basis for the request, and must identify the specific portions 
of the comment to be withheld from the public record. See FTC Rule 
4.9(c), 16 CFR 4.9(c).
---------------------------------------------------------------------------

    Postal mail addressed to the Commission is subject to delay due to 
heightened security screening. As a result, we encourage you to submit 
your comments online. To make sure that the Commission considers your 
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/gorellenterprisesconsent by following the instructions on the Web-
based form. If this Notice appears at https://www.regulations.gov/#!home, you also may file a comment through that Web site.
    If you file your comment on paper, write ``Gorell Enterprises, File 
No. 112 3053'' on your comment and on the envelope, and mail or deliver 
it to the following address: Federal Trade Commission, Office of the 
Secretary, Room H-113 (Annex D), 600 Pennsylvania Avenue NW., 
Washington, DC 20580. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Visit the Commission Web site at https://www.ftc.gov to read this 
Notice and the news release describing it. The FTC Act and other laws 
that 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 on or before March 23, 2012. You can find more information, 
including routine uses permitted by the Privacy Act, in the 
Commission's privacy policy, at https://www.ftc.gov/ftc/privacy.htm.

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 Gorell Enterprises, Inc., a corporation (``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 respondent's marketing and sale of replacement 
windows for use in residences. According to the FTC complaint, 
respondent represented that consumers who replace their windows with 
respondent's Thermal Master III[supreg] glass system windows are likely 
to achieve residential energy savings of 40% or save 40% on residential 
heating and cooling costs. The complaint alleges that respondent did 
not possess and rely upon a reasonable basis substantiating these 
representations when it made them. Many factors determine the savings 
homeowners can realize by replacing their windows, including the home's 
geographic location, size, insulation package, and existing windows. 
Consumers who replace single or double-paned wood or vinyl-framed 
windows--common residential window types in the United States--with 
Gorell replacement windows are not likely to achieve a 40% reduction in 
residential energy consumption or heating and cooling costs. The 
complaint also alleges that, by providing

[[Page 12586]]

its independent dealers and installers with advertising and other 
promotional materials making the above unsubstantiated representations, 
respondent provided the means and instrumentalities to engage in 
deceptive practices. Thus, the complaint alleges that respondent 
engaged in unfair or deceptive practices in violation of Section 5(a) 
of the FTC Act.
    The proposed consent order contains three provisions designed to 
prevent respondent from engaging in similar acts and practices in the 
future. Part I addresses the marketing of windows. It prohibits 
respondent from making any representation that: (A) Consumers who 
replace their windows with respondent's windows achieve up to or a 
specified amount or percentage of energy savings or reduction in 
heating and cooling costs; or (B) respondent guarantees or pledges that 
consumers who replace their windows with respondent's windows will 
achieve up to or a specified amount or percentage of energy savings or 
reduction in heating and cooling costs; unless the representation is 
non-misleading and, at the time of making such representation, 
respondent possesses and relies upon competent and reliable scientific 
evidence to substantiate that all or almost all consumers are likely to 
receive the maximum represented savings or reduction. Further, if 
respondent represents, guarantees, or pledges that consumers achieve 
such energy savings or heating and cooling cost reductions under 
specified circumstances, it must: Disclose those circumstances clearly 
and prominently in close proximity to such representation, guarantee, 
or pledge; and substantiate that all or almost all consumers are likely 
to receive the maximum represented, guaranteed, or pledged savings or 
reduction under those circumstances (e.g., when replacing a window of a 
specific composition in a building having a specific level of 
insulation in a specific region). The performance standard imposed 
under this Part constitutes fencing-in relief reasonably necessary to 
ensure that any future energy savings or reduction claims are not 
deceptive.
    Part I of the order requires substantiation for representations 
including the words ``up to'' because the respondent may elect to make 
such representations in the future. The words ``up to'' do not 
effectively qualify representations regarding the energy savings or 
cost reductions likely to be achieved through replacement windows. 
Therefore, Part I requires the same level of substantiation regardless 
of whether the covered representation includes the words ``up to.'' The 
FTC's proposed consent order should not be interpreted as a general 
statement of how the Commission may interpret or take other action 
concerning representations including the words ``up to'' for other 
products or services in the future.
    Parts II and III address any product or service for which 
respondent makes any energy-related efficacy representation. Part II 
prohibits respondent from making any representation: (A) That any 
specific number or percentage of consumers who replace their windows 
with respondent's windows achieve energy savings or reduction in 
heating and cooling costs; or (B) about energy consumption, energy 
savings, energy costs, heating and cooling costs, U-factor, solar heat 
gain coefficient, R-value, K-value, insulating properties, thermal 
performance, or energy-related efficacy; unless the representation is 
non-misleading and substantiated by competent and reliable scientific 
evidence. Part III prohibits respondent from providing to others the 
means and instrumentalities with which to make any false, 
unsubstantiated, or otherwise misleading representation of material 
fact. It defines ``means and instrumentalities'' to mean any 
information, including any advertising, labeling, or promotional, sales 
training, or purported substantiation materials, for use by trade 
customers in their marketing of any such product or service.
    Parts IV though VII require respondent to: Keep copies of 
advertisements and materials relied upon in disseminating any 
representation covered by the order; provide copies of the order to 
certain personnel, agents, and representatives having responsibilities 
with respect to the subject matter of the order; notify the Commission 
of changes in its structure that might affect compliance obligations 
under the order; and file a compliance report with the Commission and 
respond to other requests from FTC staff. Part VIII 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 complaint or the proposed order, or to modify the 
proposed order's terms in any way.


    By direction of the Commission, Commissioner Rosch abstaining.
Donald S. Clark,
Secretary.
[FR Doc. 2012-4997 Filed 2-29-12; 8:45 am]
BILLING CODE 6750-01-P
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