L'Oréal USA, Inc.; Analysis of Proposed Consent Order To Aid Public Comment, 39390-39392 [2014-16146]

Download as PDF 39390 Federal Register / Vol. 79, No. 132 / Thursday, July 10, 2014 / Notices mstockstill on DSK4VPTVN1PROD with NOTICES harm to consumers in the relevant generic pharmaceutical markets by eliminating current and/or future competition in concentrated existing generic markets or in future generic markets. In generic pharmaceuticals markets, price is heavily influenced by the number of participants with sufficient supply. Market participants consistently characterize generic drug markets as commodity markets in which the number of generic suppliers has a direct impact on pricing. Customers and competitors alike have confirmed that the prices of the generic pharmaceutical products at issue continue to decrease with new entry even after a number of suppliers have entered these generic markets. Further, customers generally believe that having at least four suppliers in a generic pharmaceutical market produces more competitive prices than if fewer suppliers are available to them. The evidence shows that anticompetitive effects are likely to result from the Proposed Acquisition due to a decrease in the number of independent competitors in the markets at issue. In each of the current generic prescription markets, industry participants have indicated that the presence of Forest as a competitor has allowed them to negotiate lower prices from other suppliers, including Actavis, and has allowed them to locate additional supply in times of product shortages from their existing suppliers. The evidence also shows that the Proposed Acquisition would eliminate significant future competition between Actavis and Forest in the market for lamotrigine orally disintegrating tablets because, absent the Proposed Acquisition, Actavis likely would have been the first generic supplier to enter the market. By eliminating the significant current and future competition between the parties, the Proposed Acquisition will likely cause U.S. consumers to pay significantly higher prices for these generic drugs, absent a remedy. The Consent Agreement The proposed Consent Agreement effectively remedies the Proposed Acquisition’s anticompetitive effects in each of the relevant product markets. Pursuant to the Consent Agreement, the parties are required to return all of Forest’s rights and assets related to generic diltiazem hydrochloride (AB4) to Valeant, divest all of Actavis’ rights and assets to generic ursodiol and generic lamotrigine ODT to Impax, and provide all of Forest’s rights and assets to 4 generic propranolol hydrochloride to Catalent. The parties must VerDate Mar<15>2010 18:38 Jul 09, 2014 Jkt 232001 accomplish these divestitures and relinquish their rights no later than ten days after the Proposed Acquisition is consummated. The Commission’s goal in evaluating possible purchasers of divested assets is to maintain the competitive environment that existed prior to the Proposed Acquisition. If the Commission determines that Valeant, Impax, or Catalent is not an acceptable acquirer, or that the manner of the divestiture is not acceptable, the proposed D&O requires the parties to unwind the sale and then divest the products within six months of the date the D&O becomes final to another Commission-approved acquirer or acquirers. The proposed D&O further allows the Commission to appoint a trustee in the event the parties fail to divest the products. The proposed Consent Agreement contains several provisions to help ensure that the divestitures are successful. With regard to generic diltiazem hydrochloride (AB4), the proposed Consent Agreement requires that Forest transfer to Valeant all confidential business information and requires that Actavis and Forest take all actions that are necessary to maintain the full viability and marketability of the product until Valeant commences the distribution, marketing, and sale of the product. With regard to generic ursodiol, generic lamotrigine ODT, and generic propranolol hydrochloride (termed ‘‘Contract Manufacture Products’’ in the Consent Agreement), the proposed Consent Agreement requires Actavis and Forest to manufacture and supply generic ursodiol and generic lamotrigine ODT to Impax and generic propranolol to Catalent following the divestiture while they seek the necessary FDA approval. The Commission has agreed to appoint Frank Civille to act as an interim monitor to assure that Actavis and Forest expeditiously comply with all of their obligations and perform all of their responsibilities pursuant to the Consent Agreement. In order to ensure that the Commission remains informed about the status of the transfer of rights and assets, the Consent Agreement requires Actavis and Forest to file reports with the interim monitor who will report in writing to the Commission concerning performance by the parties of their obligations under the Consent Agreement. The purpose of this analysis is to facilitate public comment on the proposed Consent Agreement, and it is not intended to constitute an official interpretation of the proposed Order or to modify its terms in any way. PO 00000 Frm 00027 Fmt 4703 Sfmt 4703 By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. 2014–16147 Filed 7–9–14; 8:45 am] BILLING CODE 6750–01–P FEDERAL TRADE COMMISSION [File No. 122 3016] ´ L’Oreal USA, Inc.; Analysis of Proposed Consent Order To Aid Public Comment Federal Trade Commission. Proposed Consent Agreement. AGENCY: ACTION: SUMMARY: The consent agreement in this matter settles alleged violations of federal law prohibiting unfair or deceptive acts or practices. The attached Analysis of Proposed Consent Order 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 July 30, 2014. ADDRESSES: Interested parties may file a comment at https://ftcpublic .commentworks.com/ftc/l’orealconsent online or on paper, by following the instructions in the Request for Comment part of the SUPPLEMENTARY INFORMATION ´ section below. Write ‘‘L’Oreal USA, Inc.—Consent Agreement; File No. 122 3016’’ on your comment and file your comment online at https:// ftcpublic.commentworks.com/ftc/ l’orealconsent by following the instructions on the web-based form. If you prefer to file your comment on paper, mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite CC–5610 (Annex D), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. FOR FURTHER INFORMATION CONTACT: Elizabeth Nach, Bureau of Consumer Protection, (202–326–2611), 600 Pennsylvania Avenue NW., Washington, DC 20580. SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, notice is hereby given that the above-captioned consent agreement containing consent order to cease and desist, having been filed with and accepted, subject to final approval, by the Commission, has been E:\FR\FM\10JYN1.SGM 10JYN1 mstockstill on DSK4VPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 132 / Thursday, July 10, 2014 / Notices 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 June 30, 2014), on the World Wide Web, at http://www.ftc.gov/ os/actions.shtm. You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or ´ before July 30, 2014. Write ‘‘L’Oreal USA, Inc.—Consent Agreement; File No. 122 3016’’ 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 http:// 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 privileged or confidential,’’ as discussed 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 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). VerDate Mar<15>2010 18:38 Jul 09, 2014 Jkt 232001 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/ l’orealconsent by following the instructions on the web-based form. If this Notice appears at http:// www.regulations.gov/#!home, you also may file a comment through that Web site. If you file your comment on paper, ´ write ‘‘L’Oreal USA, Inc.—Consent Agreement; File No. 122 3016’’ on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite CC–5610 (Annex D), Washington, DC 20580, or deliver your comment to the following address: Federal Trade Commission, Office of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex D), Washington, DC 20024. If possible, submit your paper comment to the Commission by courier or overnight service. Visit the Commission Web site at http://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 July 30, 2014. You can find more information, including routine uses permitted by the Privacy Act, in the Commission’s privacy policy, at http:// www.ftc.gov/ftc/privacy.htm. Analysis of Proposed 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 L’Oreal ´ USA, Inc. (‘‘L’Oreal’’). The proposed consent order (‘‘proposed 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. PO 00000 Frm 00028 Fmt 4703 Sfmt 4703 39391 ´ This matter involves L’Oreal’s ˆ ´ advertising for its Lancome Genifique ´ ´ (‘‘Genifique’’) and L’Oreal Paris Youth Code (‘‘Youth Code’’) facial skincare product lines. The Commission’s ´ complaint alleges that L’Oreal ´ advertised that Genifique and Youth Code provided anti-aging benefits by targeting users’ genes, and that ´ Genifique provided results to particular percentages of users. The complaint alleges that the company violated Sections 5(a) and 12 of the Federal Trade Commission Act by making unsubstantiated representations ´ that Genifique boosts the activity of genes, thereby resulting in visibly younger skin in seven days, and that Youth Code targets specific genes to make skin look younger, act younger, and respond five times faster to aggressors such as stress, fatigue, and aging. The complaint also alleges that ´ L’Oreal violated Sections 5(a) and 12 by making false representations that scientific studies prove these claims. The complaint further alleges that ´ L’Oreal violated Sections 5(a) and 12 by ´ falsely representing that Genifique is clinically proven to produce specific results for particular percentages of users, including perfectly luminous skin in 85% of women, astonishingly even skin in 82% of women, and cushiony soft skin in 91% of women, in seven days. These purported results were presented in a bar graph under the words ‘‘clinically proven.’’ The proposed order includes injunctive relief that prohibits these alleged violations and fences in similar and related violations. For purposes of the order, ‘‘Covered Product’’ means any ˆ ´ Lancome brand or L’Oreal Paris brand cosmetic, excluding hair, nail, fragrance, mascara, and sunscreen products. Part I of the proposed order prohibits ´ L’Oreal from making claims that any ˆ ´ Lancome brand or L’Oreal Paris brand facial skincare product targets or boosts the activity of genes, thereby resulting in skin that looks or acts younger, or skin that responds five times faster to aggressors, without competent and reliable scientific evidence for these claims. ‘‘Competent and reliable scientific evidence’’ is defined to mean ‘‘evidence, consisting of 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.’’ Part II of the proposed order is a fencing-in provision that prohibits ´ L’Oreal from representing that any Covered Product affects genes. The fencing-in provision provides broader product and claims coverage than Part E:\FR\FM\10JYN1.SGM 10JYN1 39392 Federal Register / Vol. 79, No. 132 / Thursday, July 10, 2014 / Notices I of the proposed order. It extends to products other than ‘‘facial skincare products,’’ such as lip products and makeup, and covers any gene claims. Part III of the proposed order ´ prohibits L’Oreal from misrepresenting the existence, contents, validity, results, conclusions, or interpretations of any test, study, or research in connection with the manufacturing, labeling, advertising, promotion, offering for sale, and sale or distribution of any Covered Product. Part IV contains recordkeeping requirements for advertisements and substantiation relevant to representations covered by Parts I through III of the order. Parts V through VII of the proposed ´ order require L’Oreal to: Deliver a copy of the order to principals, officers, and employees having responsibilities with respect to the subject matter of the order; notify the Commission of changes in corporate structure that might affect compliance obligations under the order; and file compliance reports with the Commission. Part VIII provides that the order will terminate after twenty (20) years, with certain exceptions. The purpose of this analysis is to facilitate public comment on the proposed order, and it is not intended to constitute an official interpretation of the complaint or proposed order, or to modify the proposed order’s terms in any way. By direction of the Commission. Donald S. Clark, Secretary. [FR Doc. 2014–16146 Filed 7–9–14; 8:45 am] BILLING CODE 6750–01–P FEDERAL TRADE COMMISSION Granting of Request for Early Termination of the Waiting Period Under the Premerger Notification Rules Section 7A of the Clayton Act, 15 U.S.C. 18a, as added by Title II of the Hart-Scott-Rodin Antitrust Improvements Act of 1976, requires persons contemplating certain mergers or acquisitions to give the Federal Trade Commission and the Assistant Attorney General advance notice and to wait designated periods before consummation of such plans. Section 7A(b)(2) of the Act permits the agencies, in individual cases, to terminate this waiting period prior to its expiration and requires that notice of this action be published in the Federal Register. The following transactions were granted early termination—on the dates indicated—of the waiting period provided by law and the premerger notification rules. The listing for each transaction includes the transaction number and the parties to the transaction. The grants were made by the Federal Trade Commission and the Assistant Attorney General for the Antitrust Division of the Department of Justice. Neither agency intends to take any action with respect to these proposed acquisitions during the applicable waiting period. EARLY TERMINATIONS GRANTED JUNE 1, 2014 THRU JUNE 30, 2014 06/02/2014 20140916 ...... 20140926 ...... G G Ares Owners Holdings, L.P.; Keltic Financial Partners II, LP; Ares Owners Holdings, L.P. The Guardian Life Insurance Company of America; Reza Abbaszadeh, DDS; The Guardian Life Insurance Company of America. 06/03/2014 20140903 20140904 20140954 20140961 20140964 20140965 20140966 20140967 20140969 20140975 ...... ...... ...... ...... ...... ...... ...... ...... ...... ...... G G G G G G G G G G JANA Offshore Partners, Ltd.; Walgreen Co.; JANA Offshore Partners, Ltd. JANA Nirvana Offshore Fund, Ltd.; Walgreen Co.; JANA Nirvana Offshore Fund, Ltd. GI Partners Fund IV L.P.; Welsh Carson Anderson & Stowe XI, LP; GI Partners Fund IV L.P. Gannett Co., Inc.; SunTX LBC Holdings, L.P.; Gannett Co., Inc. CCMP Capital Investors III, L.P.; Oak Hill Capital Partners III, L.P.; CCMP Capital Investors III, L.P. Gilles Martin; ViraCor-IBT Laboratories, Inc.; Gilles Martin. Acxiom Corporation; LiveRamp, Inc.; Acxiom Corporation. PAR Investment Partners, L.P.; Global Eagle Entertainment Inc.; PAR Investment Partners, L.P. ShawCor Ltd.; SCP IV Desert AIV L.P.; ShawCor Ltd. GHD Group Pty Ltd; CRA Holdings Inc.; GHD Group Pty Ltd. 06/04/2014 20140390 ...... G Meredith Corporation; Gannett Co., Inc.; Meredith Corporation. 06/05/2014 mstockstill on DSK4VPTVN1PROD with NOTICES 20140843 20140941 20140955 20140960 20140968 20140972 20140982 ...... ...... ...... ...... ...... ...... ...... G G G G G G G Cadence Design Systems, Inc.; Jasper Design Automation, Inc.; Cadence Design Systems, Inc. David A. Siegel; The Goldman Sachs Group, Inc.; David A. Siegel. Permira V L.P. 2; GFI Software S.A.; Permira V L.P. 2. Shire plc; Lumena Pharmaceuticals, Inc.; Shire plc. Golden Gate Capital Opportunity Fund, L.P.; Darden Restaurants, Inc.; Golden Gate Capital Opportunity Fund, L.P. TAC Holding Company; Global T&M Holdings LLC; TAC Holding Company. First Reserve Fund XI, L.P.; Forest Oil Corporation; First Reserve Fund XI, L.P. 06/06/2014 20140943 ...... 20140981 ...... G G 20140987 ...... 20141032 ...... G G VerDate Mar<15>2010 Radian Group Inc.; Greenfield Acquisition Partners V. L.P.; Radian Group Inc. Levine Leichtman Capital Partners V, L.P.; Transportation Resource Partners, L.P. Levine Leichtman Capital Partners V, L.P. Triton Fund IV L.P.; GEA Group Aktiengesellschaft; Triton Fund IV L.P. Daniel Gilbert; Destination Media, Inc.; Daniel Gilbert. 18:38 Jul 09, 2014 Jkt 232001 PO 00000 Frm 00029 Fmt 4703 Sfmt 4703 E:\FR\FM\10JYN1.SGM 10JYN1

Agencies

[Federal Register Volume 79, Number 132 (Thursday, July 10, 2014)]
[Notices]
[Pages 39390-39392]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16146]


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

FEDERAL TRADE COMMISSION

[File No. 122 3016]


L'Or[eacute]al USA, 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. The attached Analysis of Proposed Consent Order 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 July 30, 2014.

ADDRESSES: Interested parties may file a comment at https://ftcpublic.commentworks.com/ftc/l'orealconsent online or on paper, by following 
the instructions in the Request for Comment part of the SUPPLEMENTARY 
INFORMATION section below. Write ``L'Or[eacute]al USA, Inc.--Consent 
Agreement; File No. 122 3016'' on your comment and file your comment 
online at https://ftcpublic.commentworks.com/ftc/l'orealconsent by 
following the instructions on the web-based form. If you prefer to file 
your comment on paper, mail your comment to the following address: 
Federal Trade Commission, Office of the Secretary, 600 Pennsylvania 
Avenue NW., Suite CC-5610 (Annex D), Washington, DC 20580, or deliver 
your comment to the following address: Federal Trade Commission, Office 
of the Secretary, Constitution Center, 400 7th Street SW., 5th Floor, 
Suite 5610 (Annex D), Washington, DC 20024.

FOR FURTHER INFORMATION CONTACT: Elizabeth Nach, Bureau of Consumer 
Protection, (202-326-2611), 600 Pennsylvania Avenue NW., Washington, DC 
20580.

SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal 
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34, 
notice is hereby given that the above-captioned consent agreement 
containing consent order to cease and desist, having been filed with 
and accepted, subject to final approval, by the Commission, has been

[[Page 39391]]

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 June 30, 2014), on the World Wide Web, at 
http://www.ftc.gov/os/actions.shtm.
    You can file a comment online or on paper. For the Commission to 
consider your comment, we must receive it on or before July 30, 2014. 
Write ``L'Or[eacute]al USA, Inc.--Consent Agreement; File No. 122 
3016'' 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 http://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 privileged or confidential,'' as discussed 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/l'orealconsent by following the instructions on the web-based form. 
If this Notice appears at http://www.regulations.gov/#!home, you also 
may file a comment through that Web site.
    If you file your comment on paper, write ``L'Or[eacute]al USA, 
Inc.--Consent Agreement; File No. 122 3016'' on your comment and on the 
envelope, and mail your comment to the following address: Federal Trade 
Commission, Office of the Secretary, 600 Pennsylvania Avenue NW., Suite 
CC-5610 (Annex D), Washington, DC 20580, or deliver your comment to the 
following address: Federal Trade Commission, Office of the Secretary, 
Constitution Center, 400 7th Street SW., 5th Floor, Suite 5610 (Annex 
D), Washington, DC 20024. If possible, submit your paper comment to the 
Commission by courier or overnight service.
    Visit the Commission Web site at http://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 July 30, 2014. You can find more information, 
including routine uses permitted by the Privacy Act, in the 
Commission's privacy policy, at http://www.ftc.gov/ftc/privacy.htm.

Analysis of Proposed 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 L'Or[eacute]al USA, Inc. (``L'Or[eacute]al'').
    The proposed consent order (``proposed 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 L'Or[eacute]al's advertising for its 
Lanc[ocirc]me G[eacute]nifique (``G[eacute]nifique'') and 
L'Or[eacute]al Paris Youth Code (``Youth Code'') facial skincare 
product lines. The Commission's complaint alleges that L'Or[eacute]al 
advertised that G[eacute]nifique and Youth Code provided anti-aging 
benefits by targeting users' genes, and that G[eacute]nifique provided 
results to particular percentages of users.
    The complaint alleges that the company violated Sections 5(a) and 
12 of the Federal Trade Commission Act by making unsubstantiated 
representations that G[eacute]nifique boosts the activity of genes, 
thereby resulting in visibly younger skin in seven days, and that Youth 
Code targets specific genes to make skin look younger, act younger, and 
respond five times faster to aggressors such as stress, fatigue, and 
aging. The complaint also alleges that L'Or[eacute]al violated Sections 
5(a) and 12 by making false representations that scientific studies 
prove these claims.
    The complaint further alleges that L'Or[eacute]al violated Sections 
5(a) and 12 by falsely representing that G[eacute]nifique is clinically 
proven to produce specific results for particular percentages of users, 
including perfectly luminous skin in 85% of women, astonishingly even 
skin in 82% of women, and cushiony soft skin in 91% of women, in seven 
days. These purported results were presented in a bar graph under the 
words ``clinically proven.''
    The proposed order includes injunctive relief that prohibits these 
alleged violations and fences in similar and related violations. For 
purposes of the order, ``Covered Product'' means any Lanc[ocirc]me 
brand or L'Or[eacute]al Paris brand cosmetic, excluding hair, nail, 
fragrance, mascara, and sunscreen products.
    Part I of the proposed order prohibits L'Or[eacute]al from making 
claims that any Lanc[ocirc]me brand or L'Or[eacute]al Paris brand 
facial skincare product targets or boosts the activity of genes, 
thereby resulting in skin that looks or acts younger, or skin that 
responds five times faster to aggressors, without competent and 
reliable scientific evidence for these claims. ``Competent and reliable 
scientific evidence'' is defined to mean ``evidence, consisting of 
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.''
    Part II of the proposed order is a fencing-in provision that 
prohibits L'Or[eacute]al from representing that any Covered Product 
affects genes. The fencing-in provision provides broader product and 
claims coverage than Part

[[Page 39392]]

I of the proposed order. It extends to products other than ``facial 
skincare products,'' such as lip products and makeup, and covers any 
gene claims.
    Part III of the proposed order prohibits L'Or[eacute]al from 
misrepresenting the existence, contents, validity, results, 
conclusions, or interpretations of any test, study, or research in 
connection with the manufacturing, labeling, advertising, promotion, 
offering for sale, and sale or distribution of any Covered Product.
    Part IV contains recordkeeping requirements for advertisements and 
substantiation relevant to representations covered by Parts I through 
III of the order.
    Parts V through VII of the proposed order require L'Or[eacute]al 
to: Deliver a copy of the order to principals, officers, and employees 
having responsibilities with respect to the subject matter of the 
order; notify the Commission of changes in corporate structure that 
might affect compliance obligations under the order; and file 
compliance reports with the Commission.
    Part VIII provides that the order will terminate after twenty (20) 
years, with certain exceptions.
    The purpose of this analysis is to facilitate public comment on the 
proposed order, and it is not intended to constitute an official 
interpretation of the complaint or proposed order, or to modify the 
proposed order's terms in any way.

    By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2014-16146 Filed 7-9-14; 8:45 am]
BILLING CODE 6750-01-P