FTC Appoints Monitor to Ensure that Dow Chemical Meets all Conditions of its 2009 Acquisition of Rohm & Haas; FTC Mails Redress Checks to Invention Promotion Scam Victims

FTC Appoints Monitor to Ensure that Dow Chemical Meets all Conditions of its 2009 Acquisition of Rohm & Haas

The FTC has appointed an Interim Monitor to ensure that Dow Chemical Company follows through on all the requirements of a March 2009 agency settlement that resolved competition concerns raised by the merger of Dow and Rohm & Haas.

The settlement order requires Dow to sell assets related to its acrylic acid monomers, latex polymers, latex traffic paint, and hollow sphere particles businesses. The Commission approved divestitures of these businesses to Arkema Inc. and to OMNOVA Solutions Inc., and those transactions have closed. Under the terms of the divestiture agreements, Dow will supply critical raw materials and three of the divested products to Arkema and OMNOVA for up to five years. The Interim Monitor, Richard M. Klein, will oversee Dow’s compliance with its obligations under the settlement order and divestiture agreements, and keep Commission staff apprised of any technical or other problems that might arise.

The FTC votes approving the appointment of the Interim Monitor and the Monitor Agreement were each 5-0. (FTC Docket No. C-4243; the staff contact is Roberta S. Baruch, Bureau of Competition, 202-326-2861; see press release dated January 23, 2009, at http://www.ftc.gov/opa/2009/01/dow.shtm.)

FTC Mails Redress Checks to Invention Promotion Scam Victims

The Federal Trade Commission is mailing more than 17,000 checks to amateur inventors defrauded by a group of swindlers who falsely promised to evaluate their ideas and help them earn substantial income from their inventions.

At FTC’s request, in 2007 a federal court found Julian Gumpel, Darrell Mormando, Michael Fleisher, Greg Wilson, and the Patent & Trademark Institute in contempt for violating a 1998 court order that prohibited false claims for invention promotion services and ordered them to pay $60 million. The redress fund represents the defendants’ available assets. (See September 6, 2007 press release at http://www.ftc.gov/opa/2007/09/inventionswindle.shtm)

Consumers who paid to have their ideas evaluated will receive $24.83; those who also paid for other services will receive $323.29. Consumers who receive checks should cash them on or before August 31, 2010. Checks are being mailed by the redress administrator. Consumers with questions should call the administrator at 1-877-678-0735.

Copies of the documents mentioned in this release are available from the FTC’s website at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

(FYI 29.2010.wpd)

FTC Warns of Gulf Oil Spill Job Scams

Scammers who prey on people eager for work have turned their attention to the Gulf oil spill.  Bogus ads for oil spill clean-up jobs in the Gulf are appearing in newspapers, online, and in e-mail inboxes.  Con artists may try to get up-front payment from job seekers, or gain access to their sensitive personal or financial information.  Fake job promoters also may claim they have been authorized by BP to hire clean-up crews.

There are legitimate opportunities – some volunteer and some paid – to get involved in the oil spill clean-up efforts.  The FTC has issued a new consumer alert that warns consumers about the tell-tale signs of job scams and lists sources of legitimate employment and volunteer opportunities.  To learn more, go to FTC Warns of Oil Spill Job Scams

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.  To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357).  The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad.  The FTC’s website provides free information on a variety of consumer topics.

(FYI oil spill job scams)

FTC Staff Opinion: Community CarePartners, Inc.’s Proposed Discount Rx Program Exempt From the Robinson-Patman Act

In a letter issued today, the staff of the Federal Trade Commission advised Community CarePartners, Inc. that its proposal to provide pharmaceuticals purchased at a discount to in-home hospice patients is exempt from the Robinson-Patman Act, a U.S. antitrust law that prohibits anticompetitive price discrimination.

CarePartners asked the FTC whether it may provide discounted pharmaceuticals available to eligible non-profit entities to hospice patients receiving treatment in their homes and still qualify for the exemption.

The Non-Profit Institutions Act, or NPIA, exempts from the Robinson-Patman Act certain eligible non-profit entities that purchase supplies for their own use.

According to the FTC staff opinion letter, the proposed program meets the requirements of the NPIA. First, CarePartners is an eligible institution under the NPIA. Second, consistent with existing case law, the use of the NPIA-discounted pharmaceuticals in connection with treatment of in-home hospice patients admitted to CarePartners’ Hospice Program falls within the “own use” requirement of the statute. Therefore, according to staff, the proposed program appears to fall within the NPIA.

NOTE: This letter sets out the views of the staff of the FTC’s Bureau of Competition, as authorized by the Commission’s Rules of Practice. It has not been reviewed or approved by the Commission. As the Commission’s Rules explain, the staff’s advice is rendered “without prejudice to the right of the Commission later to rescind the advice and, where appropriate, to commence an enforcement proceeding.”

Copies of the staff comment can be found on the FTC’s Web site. The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Room 394, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, N.W., Washington, DC 20580. To learn more about the Bureau of Competition, read “Competition Counts” at http://www.ftc.gov/competitioncounts.

(NPIA Opinion.final)

FTC Seeks Public Comments on El Paso Energy Corp.s Request to Modify Final Commission Order Regarding its Acquisition of Coastal Corporation

The Federal Trade Commission is seeking public comments on a request by El Paso Energy Corporation that the FTC modify a final consent order issued in 2001 that required El Paso to sell certain assets and enter other arrangements to settle the Commission’s challenge to its acquisition of Coastal Corporation.

In the request, which can be found on the FTC’s website and as a link to this press release, El Paso has asked the FTC to remove the requirement that El Paso establish and maintain a $40 million “Development Fund.” Under the terms of the FTC’s Order, El Paso sold certain pipelines to Williams Field Services and established the required Fund for Williams to use to build a natural gas pipeline or related facility that would serve natural gas producers. Under the Commission’s Order, the Fund expires in 2021, and any unused portions are to be returned to El Paso.

According to El Paso’s request, changes within the industry after its merger, including improvements in drilling technology, have increased competition in the area covered by the Development Fund. Based on these changes, El Paso believes it should no longer be required to maintain the Fund, and has asked the FTC to remove that provision from the Final Order and return the $40 million to the company. El Paso states its belief that Williams has not used the Fund and supports the request to terminate it.

The FTC is seeking public comments on the request for 30 days, until August 2, 2010, after which it will decide whether to approve it. Comments should be sent to: FTC Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580. (FTC Docket No. C-3996; the staff contact is Daniel P. Ducore, Bureau of Competition, 202-326-2526; see press release dated January 29, 2001 at http://www.ftc.gov/opa/2001/01/elpasocoastal.shtm.)

Copies of the documents mentioned in this release are available from the FTC’s website at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. Call toll-free: 1-877-FTC-HELP.

(FYI 28.2010.wpd)

FTC Extends Public Comment Period for COPPA Rule Review until July 12, 2010

The Federal Trade Commission today announced that it is extending the deadline for public comments relating to its review of the Children’s Online Privacy Protection Act (COPPA) Rule until July 12. On March 24, the Commission announced that it was seeking comment on the costs and benefits of the FTC’s COPPA Rule, which requires that website operators notify parents and obtain their consent before collecting personal information from children under 13. At the time, the Commission announced a 90-day comment period that would end on June 30, 2010.

Due to a technical error, at least for some period of time, the website form where comments can be electronically submitted mistakenly stated that comments would be accepted until July 12, 2010. In fairness to anyone who might have relied upon that information, the Commission has extended the comment period through July 12.

Interested parties can submit written comments electronically or in paper form by following the instructions in the Invitation To Comment part of the “Supplementary Information” section of the Commission’s Federal Register Notice announcing review of the Rule. Comments in electronic form should be submitted using the following Web link:
https://public.commentworks.com/ftc/2010copparulereview (and following the instructions on the web-based form). Comments in paper form should be mailed or delivered to: Federal Trade Commission, Office of the Secretary, Room H-135 (Annex E), 600 Pennsylvania Avenue, N.W., Washington, DC 20580.

The Commission vote approving extending the deadline for public comments related to the COPPA Rule review was 5-0.

(3/24/2010 release http://www.ftc.gov/opa/2010/03/coppa.shtm; Federal Register Notice http://www.ftc.gov/os/2010/03/100324coppa.pdf)

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

FTC Mails Redress Checks to Borrowers Misled By Chase Financial Funding, Inc.’s Allegedly Deceptive Mortgage Ads

The Federal Trade Commission is distributing refund checks to borrowers lured by a firm charged with deceptively advertising that it offered 3.5 percent, fixed-payment, 30-year mortgage loans. According to the FTC’s federal court complaint filed in 2004, the firm allegedly duped consumers into signing up for adjustable rate mortgages in which the principal balance would increase if they made payments at the advertised rates.

The FTC mailed 261 checks on June 30, with each one totaling $1,238.35. The refund checks are valid for 60 days from the date they are issued. The refunds are the result of a settlement between the FTC and the defendants and the recent distribution of the defendants’ assets by the Bankruptcy court.

Consumers who were victimized by the company, Chase Financial Funding Inc., but did not complain to the agency may still qualify to receive refunds. A special phone line has been set up to handle questions. Consumers who think they may be eligible for a refund or have questions can contact the claims administrator on its hotline at 1-877-789-9498.

For more information about the case, see the court documents and news release at: http://www.ftc.gov/opa/2004/06/chasefinancial.shtm.

NOTE: The settlement in this case does not constitute an admission by the defendant of a law violation. Consent decrees have the force of law when signed by the judge.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s Web site provides free information on a variety of consumer topics.

Many Americans Snared by International Frauds; FTC Publication Tells Consumers How to Steer Clear

Americans report losses of more than a billion dollars a year to international scam artists, according to the Federal Trade Commission, the nation’s consumer protection agency.  Con artists can reach out across the globe to victimize people using the phone, email, postal mail, and the Internet, tricking them into sending their cash or revealing their personal information.

The FTC has tips for avoiding these scams.  For example, with VoIP and other internet-based telephone services, it’s often hard to tell who is contacting you and where they are calling from.  However, there are steps you can take to check out the offers you may receive, and the companies behind them.

To learn more, go to Putting a Lid on International Scams:  10 Tips for Being a Canny Consumer, at http://www.ftc.gov/bcp/edu/pubs/consumer/general/gen22.shtm.

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them.  To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357).  The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad.  The FTC’s Web site provides free information on a variety of consumer topics.

(FYI intl fraud)

Statement by FTC Chairman Jon Leibowitz Regarding House Passage of Legislation To Stop Costly Pay-for-Delay Drug Settlements

Federal Trade Commission Chairman Jon Leibowitz issued the following statement regarding the House of Representatives’ approval of legislation to stop anticompetitive drug patent settlements. FTC economists estimate that these collusive deals between brand name and generic drug companies cost consumers about $3.5 billion a year by delaying consumers’ access to lower-cost generic drugs.

“Congress has taken a critical step towards ending a practice that is dramatically increasing the cost of prescription drugs. This bipartisan legislation would save American consumers and taxpayers billions of dollars by stopping sweetheart deals that delay the entry of low-cost generics, while at the same time allowing settlements that benefit consumers,” Leibowitz said.

FTC Requires Conditions for Pilot Corporation’s Takeover of Flying J Inc.’s Travel Center Business

The Federal Trade Commission is requiring Pilot Corporation, owner of the largest travel center network in the United States, to sell 26 locations as part of a settlement that will replace the competition lost because of Pilot’s proposed $1.8 billion acquisition of Flying J Inc.’s travel center network. Pilot has agreed to sell the travel centers, which provide diesel, food, parking, and other amenities for truckers, to Love’s Travel Stops and Country Stores, the smallest national travel center operator, currently concentrated in the South.

“The proposed settlement will resolve the competitive concerns resulting from Pilot’s acquisition of Flying J’s travel center business, which would have likely resulted in higher diesel fuel prices for long-haul trucking fleets,” said Richard A. Feinstein, Director of the FTC’s Bureau of Competition.

According to the FTC’s complaint, the deal between Pilot and Flying J would have reduced competition for certain long-haul trucking fleets for which Pilot and Flying J were the first and second best choices for their diesel needs.

The divestiture to Love’s, along with Love’s aggressive expansion plans, will allow it to compete better for long-haul fleets that otherwise would be harmed by Pilot’s acquisition of Flying J.

The settlement order contains several provisions designed to ensure that Love’s can become a successful competitor to the newly formed Pilot/Flying J. The order requires Pilot to:

  • Provide Love’s, at its request, access to and use of a fuel purchase card system that Pilot is acquiring (and maintain appropriate firewalls during this access and use);
  • Continue operating Wendy’s restaurants affiliated with certain divested travel centers for one year;
  • Not interfere with the transfer of any employees who choose to work with Love’s after it acquires the travel centers; and
  • Provide Love’s with business information related to the 26 travel centers being sold, and maintain the travel centers as viable businesses until they can be transferred to Love’s.

In addition, the order allows the FTC to appoint an interim monitor to oversee the sale of the assets, if necessary, and contains reporting and other terms to ensure Pilot’s compliance.

The FTC vote approving the complaint and proposed settlement order was 4-0-1, with Commissioner Julie Brill not participating. The order will be subject to public comment for 30 days, until July 30, 2010, after which the Commission will decide whether to make it final. Comments should be sent to: FTC, Office of the Secretary, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. To submit a comment electronically, please click on: https://public.commentworks.com/ftc/pilot-flyingj.

NOTE: The Commission issues a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The issuance of a complaint is not a finding or ruling that the respondent has violated the law. A consent agreement is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $16,000.

Copies of the complaint, consent order, and an analysis to aid in public comment can be found on the FTC’s Web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, DC 20580. The FTC’s Bureau of Competition works with the Bureau of Economics to investigate alleged anticompetitive business practices and, when appropriate, recommends that the Commission take law enforcement action. To inform the Bureau about particular business practices, call 202-326-3300, send an e-mail to [email protected], or write to the Office of Policy and Coordination, Room 383, Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Ave, N.W., Washington, DC 20580. To learn more about the Bureau of Competition, read “Competition Counts” at http://www.ftc.gov/competitioncounts.

(FTC File No.: 091-0125)
(Flying J.final)

‘Telefunder’ to Pay $300,000 for Abandoning Millions of Telemarketing Calls to Potential Charity Donors

The president of a Georgia-based telemarketing company will pay $300,000 to settle Federal Trade Commission charges that his company “abandoned” millions of calls when consumers answered their telephones. The FTC also alleged that the defendants made thousands of illegal calls to consumers who had told the company that they did not wish to be called.

According to the FTC’s complaint, JAK Productions, Inc. and its president John Keller, worked as “telefunders” – for-profit telemarketers who call potential donors seeking donations on behalf of charities. JAK operates out of Atlanta, Georgia, and has used call centers in West Virginia.

It is not illegal for telefunders to call telephone numbers on the FTC’s Do Not Call Registry, but consumers can stop such calls by telling telefunders and charities to place their number on the charity’s internal do-not-call list. All telemarketers, including telefunders like JAK, are required to honor such requests.

Telefunders and other telemarketers are also required to limit their use of automated “predictive” dialers. Such dialers can place calls so rapidly that there are not enough telemarketing representatives to handle the calls when they are answered. When an automated dialer fails to connect a call answered by a person to a live representative of the telemarketer within two seconds, the call is “abandoned.” The FTC’s Telemarketing Sales Rule requires that telemarketers limit the use of these dialers so that they do not abandon more than three percent of the calls that are answered by a person. The Rule also requires that telemarketers connect any calls that are not connected to a live operator to a recording that identifies the caller by name and telephone number.

The FTC’s complaint alleges that JAK violated the Telemarketing Sales Rule by abandoning more than two million calls. The agency also contends that the defendants violated the Telemarketing Sales Rule by making thousands of calls to consumers who had previously asked for their numbers to be placed on the do-not-call list of the charity for which JAK was calling.

The settlements with JAK and Keller prohibit them from violating the Telemarketing Sales Rule and include reporting and monitoring provisions to ensure they comply with the stipulated orders. The order against JAK also imposes a civil penalty of $1.45 million, which has been suspended due to the company’s inability to pay. If it is later found, however, that JAK misrepresented its financial condition, the full amount would immediately become due. The order against Keller requires him to pay a $300,000 civil penalty.

The FTC vote approving the complaint and proposed settlement orders, which took place before Commissioners Ramirez and Brill joined the agency, was 4-0. The complaint and orders were filed by the Department of Justice on the FTC’s behalf on June 29, 2010, in the U.S. District Court for the Northern District of Georgia.

NOTE: The Commission issues a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. The issuance of a complaint is not a finding or ruling that the respondent has violated the law. Stipulated final orders are for settlement purposes only and do not constitute an admission by the defendant of a law violation. Stipulated orders have the force of law when signed by the judge.

Copies of the complaint and final orders are available from the FTC’s website at http://www.ftc.gov and from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, click: http://www.ftc.gov/ftc/complaint.shtm or call 1-877-382-4357. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,800 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://ftc.gov/bcp/consumer.shtm.

(FTC File No. 072-3245; Civ. No. 1-10-cv-2008)
(JAK Productions.final.wpd)