FOR
YOUR INFORMATION:
SEPTEMBER 26, 1997
The Federal Trade Commission today announced the
following actions.
Commission action regarding
applications for approval: Following a public
comment period, the Commission has ruled on an
application for approval of a transaction from the
following:
- The FTC has approved the application of Columbia/HCA
Healthcare Corporation, of Nashville,
Tennessee, to divest its interest in the South
Seminole Hospital Joint Venture (SSH Joint
Venture) and in the affiliated Hospital
Development Properties, Inc./Healthnet Services,
Inc. Joint Venture (HDPI/HSI Joint Venture)
to Orlando Regional Healthcare System, of
Orlando, Florida. The SSH Joint Venture operates
the South Seminole Hospital in Longwood, Florida;
the HDPI/HSI Joint Venture relates to the
development of a medical office building adjacent
to that hospital. Divestiture of
Columbia/HCAs interest in the SSH Joint
Venture was required under a 1995 consent order
settling FTC charges that Columbia/HCAs
acquisition of Healthtrust, Inc. would
substantially reduce hospital competition in
areas of Florida, Louisiana, Texas and Utah. (See
Aug. 28, 1997, Oct. 5, 1995 and June 7, 1996
news releases for more details regarding this
case; Docket No. C-3619; Commission vote to
approve the divestiture was 4-0.) Staff contact
is Daniel Ducore, 202-326-2526.
- The FTC has approved the application of Schwegmann
Giant Super Markets, Inc., of New Orleans,
Louisiana, to divest the That Stanley
supermarket at 4223 Chef Menteur Highway in New
Orleans to J. Edward Lamb & Co., owned
by Edward and Beverly Lamb of Metairie,
Louisiana. The Lambs will operate the supermarket
under the Community Supermarket name.
Divestiture of this and six other stores was
required under a 1995 consent order designed to
restore competition allegedly injured when
Schwegmann acquired the New Orleans supermarkets
formerly owned by National Holdings, Inc. from
Schnuck Markets, Inc. The other six divestitures
have been completed. (The Commission vote to
approve the divestiture was 4-0. See March 8,
1995 news release for more details regarding the
consent order; Docket No. C-3584.) FTC staff
contact is Roberta Baruch, 202-326-2861.
Consent agreements given
final approval: Following a public comment
period, the Commission has made final consent agreements
with the following entities. The Commission action makes
the consent orders binding on the respondents.
- The consent order with Abflex, U.S.A., Inc.,
of Carlsbad, California, and company officer Martin
Van Der Hoeven, settles charges that their
infomercial and other advertising for the Abflex
abdominal exerciser contained unsubstantiated
weight-loss and spot-reduction claims. The
consent order requires them to have competent and
reliable evidence for a variety of future claims
regarding any exercise equipment, including
claims about the pounds users can lose, the rate
of weight loss, or the benefits, efficacy or
performance of such a product in promoting weight
loss. In addition, any testimonials used in their
ads either must represent the typical experience
of consumers, or be accompanied by a disclosure
of the generally expected results or a statement
making clear that consumers should not expect
similar results. This case was brought as part of
Project Workout, a crackdown on
marketers of exercise equipment who use false or
unsubstantiated weight-loss claims in promoting
their products. (See June 17, 1997 news
release for more details; Docket No. C-3771;
Commission vote on Sept. 18 to approve the order
as final was 4-0.) Staff contact is Jeffrey
Klurfeld, San Francisco Regional Office,
415-356-5270.
- The consent order with Kent & Spiegel
Direct, Inc., an infomercial company based in
Culver city, California, and its principals, Marsha
Kent and Peter Spiegel, who also
marketed the Abflex product discussed above,
settles related charges and includes the same
provisions. (Docket No. C-3769, Commission vote
on Sept. 18 to approve the order as final was
4-0.) Staff contact is Jeffrey Klurfeld, San
Francisco Regional Office, 415-356-5270.
- The consent order with Kave Elahie, doing
business as M.E.K. International and based
in Simi Valley, California, settles charges that
their Spanish-language adver tisements included
unsubstantiated claims that NutraTrim Bio-Active
Cellulite Control Cream reduces or eliminates
cellulite and fat, and that NutraTrim Weight Loss
Tablets (which contain chromium picolinate) will
cause weight loss, reduce cholesterol, reduce
body fat and cellulite, reduce appetite, and
increase metabolism. The order requires the
respondents to have competent and reliable
scientific evidence for similar claims, as well
as any other claims about the performance,
benefits, efficacy or safety, of any food, drug
or dietary supplement in the future. The order
also prohibits them from misrepresenting the
existence or results of any test or study, and
requires any testimonials used in their ads
either to represent the typical experience of
consumers, or be accompanied by a disclo sure of
the generally expected results or a statement
making clear that consumers should not expect
similar results. This case was brought as part of
Campana Alerta, a U.S.- Mexico
effort to prevent deceptive health-related
advertisements directed at Spanish- speaking
consumers. (See June 26, 1997 news
release for more details; Docket No. C- 3770;
Commission vote on Sept. 19 to approve the order
as final was 4-0.) Staff contact is Jeffrey
Klurfeld, San Francisco Regional Office,
415-356-5270.
Copies of
the documents referenced above
are available from the FTCs web site at
http://www.ftc.gov and also from the FTCs
Public Reference Branch, Room 130, 6th Street and
Pennsylvania Avenue, N.W., Washington, D.C. 20580;
202-326-2222; TTY for the hearing impaired 1-866-653-4261.
To find out the latest news as it is announced, call the
FTC NewsPhone recording at 202-326-2710.
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