FTC Workshop Will Explore Debt Collection Issues October 10-11

The Federal Trade Commission staff will host a workshop on October 10-11, 2007, to explore changes in the debt collection industry and examine their impact on consumers and businesses.

Consumer advocates, industry representatives, state and federal regulators, and others with relevant expertise will provide information on a range of issues, including the effects of technological, economic, and legal changes on the industry and whether the Fair Debt Collection Practices Act and other laws have kept pace with developments.

Open to the public at no charge, the two-day workshop will be held in the FTC’s Satellite Building Conference Center, 601 New Jersey Avenue, N.W., Washington, D.C. There is no pre-registration. All attendees must show a valid form of photo identification, such as a driver’s license. To see the agenda or to view the event Webcast, visit http://www.ftc.gov/debtcollectionworkshop.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov/ftc/complaint.htm. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,600 civil and criminal law enforcement agencies in the U.S. and abroad.

FTC Workshop Will Explore Debt Collection Issues October 10-11

The Federal Trade Commission staff will host a workshop on October 10-11, 2007, to explore changes in the debt collection industry and examine their impact on consumers and businesses.

Consumer advocates, industry representatives, state and federal regulators, and others with relevant expertise will provide information on a range of issues, including the effects of technological, economic, and legal changes on the industry and whether the Fair Debt Collection Practices Act and other laws have kept pace with developments.

Open to the public at no charge, the two-day workshop will be held in the FTC’s Satellite Building Conference Center, 601 New Jersey Avenue, N.W., Washington, D.C. There is no pre-registration. All attendees must show a valid form of photo identification, such as a driver’s license. To see the agenda or to view the event Webcast, visit http://www.ftc.gov/debtcollectionworkshop.

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov/ftc/complaint.htm. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to more than 1,600 civil and criminal law enforcement agencies in the U.S. and abroad.

FTC Gets Money Back for Consumers Who Bought “Pain Relief” Adhesive Tape

Two marketers of the alleged pain relief product Biotape, Smart Inventions, Inc. and Jon Nokes, have entered into a settlement agreement that will provide up to $2.5 million in consumer refunds. In addition, a federal district court ruled that a third defendant, Darrell Stoddard – the inventor of Biotape who appeared in the product’s nationally televised infomercial – violated federal law and must give up the $86,000 he received from infomercial sales. The FTC had charged that all three defendants deceptively claimed that Biotape – an adhesive tape – provided significant, permanent relief from severe pain and that it was superior to other pain-relief products. The product infomercial claimed that Biotape was “a space age conductive mylar that connects the broken circuits that cause . . . pain.” The FTC will contact consumers regarding refunds.

The FTC’s settlement with Smart Inventions, Inc. and Jon D. Nokes, who disseminated the infomercial, bars them from claiming that Biotape, or any other substantially similar purported pain-relief product, produces significant and/or permanent relief from severe pain or is superior to other products and treatments in eliminating or relieving severe pain. The order also prohibits Smart Inventions and Nokes from making claims about the health benefits, performance, efficacy, or safety of certain products, including any drug or device, unless the claim is true and backed up by credible scientific evidence. The order additionally prohibits the defendants from claiming that a patent proves the efficacy or safety of those products.

The order against Smart Inventions, Inc. and Nokes enters a monetary judgment of $2,510,511 – the net consumer sales of Biotape. The judgment is suspended as long as they fulfill their obligations to provide funding for consumer refunds. Using information from a database, the redress administrator will send forms to all Biotape purchasers; if they return the form indicating they want redress, they will receive money back.

In addition, the defendants must either recall or repackage and re-label all of the products already in the marketplace that violate this order.

The order against Stoddard, entered after the federal district court granted the FTC’s motion for summary judgment, contains the same prohibitions against claims and the same repackaging and re-labeling requirements as in the order against Smart Inventions and Nokes. The order also requires Stoddard to give up $86,000, which represents the ill-gotten gains he received from infomercial sales of Biotape.

The Commission vote to authorize staff to file the stipulated final order was 5-0. The stipulated final order for permanent injunction as to Smart Inventions, Inc. and Nokes was entered in the U.S. District Court for the Central District of California on July 12, 2007. The summary judgment against defendant Stoddard was entered in the same court on July 27, 2007.

NOTE: A stipulated final order is for settlement purposes only and does not constitute an admission by the defendant of a law violation. A stipulated final order has the force of law when signed by the judge.

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 1,600 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.

Commission Approves Comments to the FERC on the Wholesale Electric Power Market

Approval of FTC comments to the FERC on the wholesale electric power market: The Commission has provided a comment to the Federal Energy Regulatory Commission (FERC) regarding competition at the wholesale level in regions of the U.S. with organized electric power markets. The comment was developed in response to an Advance Notice of Proposed Rulemaking issued by FERC as part of the regulatory reform process designed to substitute vigorous competition for cost-based rate regulation in wholesale electric power markets.

According to the Commission’s comment, which can be found as a link to this press release on the FTC’s Web site, one of the greatest deficiencies in electric power market reform efforts has been the limited amount of decrease in consumption (or “demand response,” also referred to as DR) when wholesale prices increase. This characteristic can leave electricity markets and consumers vulnerable to the exercise of market power by electricity generators and traders. The FTC’s comment proposes a range of ways in which FERC might strengthen the role of competition in electric power markets, including a deeper acknowledgment of the costs and benefits of DR policies and, as DR grows, a greater reliance on DR (rather than wholesale price caps) to prevent the exercise of market power by electricity generators. The comment also encourages FERC to develop incentives for efficiency and improved customer service in organized electric power markets.

The Commission vote approving the filing of the comment with FERC was 5-0. (FTC File No. V070014; the staff contact is John H. Seesel, Associate General Counsel for Energy, Office of General Counsel, 202-326-2702.)

Copies of the documents mentioned in this release are available from the FTC’s Web site 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.

FTC Testifies on Identity Theft Initiatives

The FTC today told the Maryland Task Force on Identity Theft that public organizations, including federal, state, and local governments, “play a critical role in guarding against misuse and unauthorized disclosure of the personal information they collect and maintain.”

Speaking before the Maryland Task Force to Study Identity Theft, Betsy Broder, Assistant Director of the FTC’s Division of Privacy and Identity Protection said, “To succeed in the battle against identity theft, federal, state and local governments, working together with the private sector, must make it more difficult for thieves to obtain the information they need to steal identities, make it more difficult to use that information if they do obtain it, and assist victims when thefts occur.” The Maryland Task Force was established in 2005 to study the problems associated with identity theft in Maryland, consult with various entities, including the FTC, survey state agencies for compliance with laws regarding uses of Social Security numbers, and make recommendations for possible remedies to identity theft.

The testimony states that one way to combat identity theft is to assure that those who maintain sensitive personal information about consumers protect that data. “Since 2001, the Commission has brought 14 cases challenging businesses that allegedly failed to reasonably protect sensitive consumer information that they maintained.” While the cases were different and were brought under different laws enforced by the FTC, “the cases share common elements: the company’s alleged security vulnerabilities were multiple and systemic, and readily-available and often inexpensive measures were available to prevent them.”

According to the testimony, the Commission receives between 15,000 and 20,000 contacts a week from consumers who are seeking advice about how to recover from identity theft or consumers seeking advice about how to avoid becoming a victim. “The FTC’s identity theft primer and victim recovery guide are widely available in print and online. Since 2000, the Commission has distributed a total of 7 million copies of the two publications and recorded over 3.7 million visits to the Web versions.”

“The FTC also maintains the Identity Theft Data Clearinghouse, a national identity theft victim complaint database containing over a million complaints,” the testimony states. While the FTC does not have criminal authority, it “supports criminal law enforcement by making these complaints available to federal, state, and local law enforcement agencies nationwide, including over 20 agencies in Maryland alone.”

In May 2006, the President established an Identity Theft Task Force, co-chaired by the Attorney General and FTC Chairman Deborah Platt Majoras, to develop a comprehensive, national strategy to combat identity theft and recommend ways “to improve the effectiveness and efficiency of the federal government’s activities in the areas of identity theft awareness, prevention, detection, and prosecution.” The Task Force recommended 31 initiatives to reduce the incidence and impact of identity theft. “The recommendations focus on prevention through improvements in data security and more effective customer authentication procedures, victim assistance by ensuring victims have the means and support to restore their identity, and deterrence through stronger tools to punish the criminals to perpetrate this crime,” the testimony states.

The Task Force noted that both the public and private sectors should take proactive steps to improve their data security practices. The Task Force will “work with state and local governments . . . to highlight and discuss the vulnerabilities created by the use of SSNs and to explore ways to eliminate unnecessary use and displays of SSNs.”

According to the testimony, the Task Force report also recommended a number of steps
to assist consumers who have become victims of identity theft, including development of easy-to-use reference materials for law enforcers, implementation of a standard police report, and nationwide training for counselors at federal and state-sponsored victim assistance programs.

Finally the Task Force report “includes a host of recommendations for strengthening law enforcement’s ability to detect and punish identity thieves, including several aimed at providing assistance to state and local governments.”

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 1,600 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 Testifies on Identity Theft Initiatives

The FTC today told the Maryland Task Force on Identity Theft that public organizations, including federal, state, and local governments, “play a critical role in guarding against misuse and unauthorized disclosure of the personal information they collect and maintain.”

Speaking before the Maryland Task Force to Study Identity Theft, Betsy Broder, Assistant Director of the FTC’s Division of Privacy and Identity Protection said, “To succeed in the battle against identity theft, federal, state and local governments, working together with the private sector, must make it more difficult for thieves to obtain the information they need to steal identities, make it more difficult to use that information if they do obtain it, and assist victims when thefts occur.” The Maryland Task Force was established in 2005 to study the problems associated with identity theft in Maryland, consult with various entities, including the FTC, survey state agencies for compliance with laws regarding uses of Social Security numbers, and make recommendations for possible remedies to identity theft.

The testimony states that one way to combat identity theft is to assure that those who maintain sensitive personal information about consumers protect that data. “Since 2001, the Commission has brought 14 cases challenging businesses that allegedly failed to reasonably protect sensitive consumer information that they maintained.” While the cases were different and were brought under different laws enforced by the FTC, “the cases share common elements: the company’s alleged security vulnerabilities were multiple and systemic, and readily-available and often inexpensive measures were available to prevent them.”

According to the testimony, the Commission receives between 15,000 and 20,000 contacts a week from consumers who are seeking advice about how to recover from identity theft or consumers seeking advice about how to avoid becoming a victim. “The FTC’s identity theft primer and victim recovery guide are widely available in print and online. Since 2000, the Commission has distributed a total of 7 million copies of the two publications and recorded over 3.7 million visits to the Web versions.”

“The FTC also maintains the Identity Theft Data Clearinghouse, a national identity theft victim complaint database containing over a million complaints,” the testimony states. While the FTC does not have criminal authority, it “supports criminal law enforcement by making these complaints available to federal, state, and local law enforcement agencies nationwide, including over 20 agencies in Maryland alone.”

In May 2006, the President established an Identity Theft Task Force, co-chaired by the Attorney General and FTC Chairman Deborah Platt Majoras, to develop a comprehensive, national strategy to combat identity theft and recommend ways “to improve the effectiveness and efficiency of the federal government’s activities in the areas of identity theft awareness, prevention, detection, and prosecution.” The Task Force recommended 31 initiatives to reduce the incidence and impact of identity theft. “The recommendations focus on prevention through improvements in data security and more effective customer authentication procedures, victim assistance by ensuring victims have the means and support to restore their identity, and deterrence through stronger tools to punish the criminals to perpetrate this crime,” the testimony states.

The Task Force noted that both the public and private sectors should take proactive steps to improve their data security practices. The Task Force will “work with state and local governments . . . to highlight and discuss the vulnerabilities created by the use of SSNs and to explore ways to eliminate unnecessary use and displays of SSNs.”

According to the testimony, the Task Force report also recommended a number of steps
to assist consumers who have become victims of identity theft, including development of easy-to-use reference materials for law enforcers, implementation of a standard police report, and nationwide training for counselors at federal and state-sponsored victim assistance programs.

Finally the Task Force report “includes a host of recommendations for strengthening law enforcement’s ability to detect and punish identity thieves, including several aimed at providing assistance to state and local governments.”

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 1,600 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 Testifies on Identity Theft Initiatives

The FTC today told the Maryland Task Force on Identity Theft that public organizations, including federal, state, and local governments, “play a critical role in guarding against misuse and unauthorized disclosure of the personal information they collect and maintain.”

Speaking before the Maryland Task Force to Study Identity Theft, Betsy Broder, Assistant Director of the FTC’s Division of Privacy and Identity Protection said, “To succeed in the battle against identity theft, federal, state and local governments, working together with the private sector, must make it more difficult for thieves to obtain the information they need to steal identities, make it more difficult to use that information if they do obtain it, and assist victims when thefts occur.” The Maryland Task Force was established in 2005 to study the problems associated with identity theft in Maryland, consult with various entities, including the FTC, survey state agencies for compliance with laws regarding uses of Social Security numbers, and make recommendations for possible remedies to identity theft.

The testimony states that one way to combat identity theft is to assure that those who maintain sensitive personal information about consumers protect that data. “Since 2001, the Commission has brought 14 cases challenging businesses that allegedly failed to reasonably protect sensitive consumer information that they maintained.” While the cases were different and were brought under different laws enforced by the FTC, “the cases share common elements: the company’s alleged security vulnerabilities were multiple and systemic, and readily-available and often inexpensive measures were available to prevent them.”

According to the testimony, the Commission receives between 15,000 and 20,000 contacts a week from consumers who are seeking advice about how to recover from identity theft or consumers seeking advice about how to avoid becoming a victim. “The FTC’s identity theft primer and victim recovery guide are widely available in print and online. Since 2000, the Commission has distributed a total of 7 million copies of the two publications and recorded over 3.7 million visits to the Web versions.”

“The FTC also maintains the Identity Theft Data Clearinghouse, a national identity theft victim complaint database containing over a million complaints,” the testimony states. While the FTC does not have criminal authority, it “supports criminal law enforcement by making these complaints available to federal, state, and local law enforcement agencies nationwide, including over 20 agencies in Maryland alone.”

In May 2006, the President established an Identity Theft Task Force, co-chaired by the Attorney General and FTC Chairman Deborah Platt Majoras, to develop a comprehensive, national strategy to combat identity theft and recommend ways “to improve the effectiveness and efficiency of the federal government’s activities in the areas of identity theft awareness, prevention, detection, and prosecution.” The Task Force recommended 31 initiatives to reduce the incidence and impact of identity theft. “The recommendations focus on prevention through improvements in data security and more effective customer authentication procedures, victim assistance by ensuring victims have the means and support to restore their identity, and deterrence through stronger tools to punish the criminals to perpetrate this crime,” the testimony states.

The Task Force noted that both the public and private sectors should take proactive steps to improve their data security practices. The Task Force will “work with state and local governments . . . to highlight and discuss the vulnerabilities created by the use of SSNs and to explore ways to eliminate unnecessary use and displays of SSNs.”

According to the testimony, the Task Force report also recommended a number of steps
to assist consumers who have become victims of identity theft, including development of easy-to-use reference materials for law enforcers, implementation of a standard police report, and nationwide training for counselors at federal and state-sponsored victim assistance programs.

Finally the Task Force report “includes a host of recommendations for strengthening law enforcement’s ability to detect and punish identity thieves, including several aimed at providing assistance to state and local governments.”

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 1,600 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.

Providers of Consumers Medical Profiles Agree to Comply with Fair Credit Reporting Act

Two providers of consumers’ medical profiles used in determining eligibility for life and health insurance have agreed to settle Federal Trade Commission charges that, as consumer reporting agencies (CRAs), they failed to provide insurance companies with the Notice to Users of Consumer Reports required by the Fair Credit Reporting Act (FCRA).

“Consumer reporting companies sell information that can play a critical role in the price consumers pay for a variety of products and services – or even whether they’re eligible for them,” said Lydia Parnes, Director of the FTC’s Bureau of Consumer Protection. “These cases make clear that all consumer reporting companies must comply with the laws that protect consumers’ rights.”

The proposed respondents, Ingenix, Inc. and Milliman, Inc., provide individual medical profiles, including prescription drug purchase histories of insurance policy applicants, to insurance companies that use them in making underwriting decisions. With applicants’ consent, Ingenix and Milliman obtain five-year prescription drug histories from Pharmacy Benefit Mangers and create prescription medical profiles. Based on their analysis of the information, they report potential medical conditions that may be present.

According to the Commission, the medical profiles are consumer reports because they include information that bears on an individual’s personal characteristics and are used to determine their eligibility for insurance. Ingenix and Milliman are CRAs because they assemble and evaluate consumer report information for the purpose of furnishing it to third parties.

The FTC’s complaint alleges that the proposed respondents failed to provide to the users of the consumer reports the “Notice to Users of Consumer Reports: Obligations of Users Under the FCRA”(“Notice to Users”), which describes their FCRA responsibilities and obligations, including, but not limited to, notifying consumers if adverse action is taken, based in whole or in part, on information contained in the consumer report.

Under the proposed consent agreements, Ingenix and Milliman will provide to users of their consumer reports the Notice to Users and continue to follow procedures that ensure that consumer reports are furnished only to those with a permissible purpose, that reports are accurate, that accuracy disputes are handled appropriately, and that consumer records are disposed of properly, all in compliance with the FCRA.

The Commission votes approving the complaints and consent orders were 5-0. The orders will be subject to public comment for 30 days, until October 12, after which the Commission will decide whether to make them final. Comments should be sent to: FTC, Office of the Secretary, 600 Pennsylvania Ave., N.W., Washington, DC 20580.

NOTE: 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 $11,000.

Copies of the complaint, consent order, and analysis to aid public comment are available now on the FTC’s Web site. 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 1,600 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: Marketer Kevin Trudeau Violated Prior Court Order

The Federal Trade Commission has charged Kevin Trudeau with violating a court order by allegedly misrepresenting the contents of his book, “The Weight Loss Cure ‘They’ Don’t Want You to Know About,” in several infomercials. During the ads, Trudeau claims that the weight loss plan outlined in the book is easy to do, can be done at home, and ultimately allows readers to eat whatever they want. However, when consumers purchase the book, they find it describes a complex, grueling plan that requires severe dieting, daily injections of a prescription drug that consumers cannot easily get, and lifelong dietary restrictions. In a 2004 order settling FTC charges that he had falsely claimed that his calcium product could cure cancer and other serious diseases, and that a purported analgesic called Biotape could permanently cure or relieve severe pain, Trudeau was banned from using infomercials to sell any product, service, or program. The ban contained a narrow exemption for infomercials for books and other publications, but specifically required that Trudeau not misrepresent the content of the books. The FTC is now charging that he violated that narrow exemption.

Kevin Trudeau is a well-known marketer who has appeared in or produced more than 100 infomercials. To sell his newest book, which outlines a weight-loss plan, he appeared in three infomercials, which were widely disseminated. During the ads, Trudeau describes the weight-loss plan that the book is about, stating that:

“…it’s easy to do, you can do it at home…”

“I can attest, it was the easiest, simplest, most effective thing I’ve ever done.”

“And when you’re done with the protocol, eat whatever you want and you don’t gain the weight back.”

“I can eat whatever I want now, anything and as much as I want any time I want. No restrictions now. And the weight’s not coming back. You don’t gain the weight back.”

According to the FTC, when consumers buy and read the book, they find it actually describes a complicated, expensive system involving daily injections, specialized cleanses and supplements, and severe food restrictions, followed by a “fourth phase” of the protocol, which requires dietary restrictions and never ends. The FTC alleged that Trudeau deceptively claimed that the book establishes a weight-loss protocol that is “easy” to follow and that once the protocol ends, consumers can eat what they want without regaining weight.

In court documents, the FTC pointed out that one required phase of the protocol requires that consumers get daily injections of a prescription drug that is not approved by the United States Food and Drug Administration for weight loss. To obtain the drug, a consumer would need to either go overseas, or find a doctor in the U.S. who will prescribe the drug for off-label use. The injections must be intramuscular, and Trudeau even instructs the dieter to do the injections under the care of a licensed physician. Besides the injections, this phase also requires a 500 calorie/day diet for 21 to 45 days, and the consumer cannot use any medicines, including over-the-counter and prescription drugs, most cosmetics, and no creams, lotions, or moisturizers.

During the required third phase, the consumer can eat as much as they want for 21 days, but the foods must be only 100% organic, with no sweeteners (natural or artificial), no starches (bread, pasta, potatoes, white flour, etc.), no nitrites, and no trans fats. In addition, the book strongly recommends that consumers get massages, take saunas often, take homeopathic human growth hormone, and limit their exposure to air conditioning and fluorescent lighting.

The “highly recommended” first phase includes getting 15 “colonics” from a licensed colon therapist during a 30-day period, walking outside for one continuous hour each day, taking saunas as often as possible, eating six times a day, eating only organic meat and dairy, and eating 100 grams of organic meat right before bed.

Finally, the FTC’s court documents state that the protocol is never actually completed. Consumers must follow the fourth phase of the protocol for the rest of their lives, with severe dietary prohibitions, including: no “brand name” food; no fast food, regional, or national chain restaurants; no food that is not 100% organic; no super highly refined sugars; no artificial sweeteners; no trans fats; no monosodium glutamate; no food with nitrites; no meat, poultry, or dairy that is not 100% organic; no farm-raised fish; and no food cooked in a microwave.

The FTC first sued Trudeau in 1998, alleging that he made false and unsubstantiated claims for hair growth, memory, and weight loss products sold through infomercials. In 2003, the FTC challenged Trudeau’s marketing of Coral Calcium Supreme and Biotape, a purported pain-relief product. To settle the FTC’s charges, in 2004 Trudeau paid $2 million and agreed to a court order banning him from infomercials, with a narrow exemption for infomercials for books and other publications that specifically required that Trudeau not misrepresent the contents of the books or publications. The contempt action announced today alleges that Trudeau violated that court order by deceptively claiming in his infomercials that the book being advertised establishes a weight-loss protocol that is “easy” to follow, and that once the protocol ends, consumers can eat what they want without regaining weight.

The contempt action was filed in the U.S. District Court for the Northern District of Illinois.

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 1,600 civil and criminal law enforcement agencies in the U.S. and abroad. For free information on a variety of consumer topics, click http://www.ftc.gov/bcp/consumer.shtm.

FTC Warns Ten Contact Lens Prescribers to Provide Patients with Prescriptions

Federal Trade Commission staff sent ten warning letters to prescribers of contact lenses for allegedly failing to release prescription information to their patients, requiring their patients to purchase contact lenses from them, or imposing additional fees on their patients before releasing the prescriptions. Staff sent the letters on August 15, 2007, in response to consumer complaints filed with the FTC.

Under the Contact Lens Rule, contact lens prescribers must provide their patients with a copy of their contact lens prescriptions and verify the prescriptions to any contact lens seller chosen by the patient. Prescribers cannot require a patient to purchase contact lenses from the prescriber nor require the patient to pay an additional fee to receive his or her prescription.

The letters include guidance for the prescribers on their obligations under the Contact Lens Rule, pointing them to The Contact Lens Rule: A Guide for Prescribers and Sellers, and Complying With the Contact Lens Rule. Consumers can learn about their rights under federal law in The Eyes Have It – Get Your Prescription.

In 2003, Congress enacted the Fairness to Contact Lens Consumers Act, which requires prescribers of contact lenses to release contact lens prescriptions to patients. The Act also requires sellers of contact lenses to verify contact lens prescriptions with prescribers. In July 2004, the Commission issued the Contact Lens rule to implement the Act.

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 1,600 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.