American Home Products Corporation
Volume 103 · 103 F.T.C. 57
deceptive advertisinghealth claims
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American Home Products Corporation, 103 F.T.C. 57 (1984). Consumer Law Library, https://consumerlawlibrary.org/decisions/v103-0012
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IN THE MATTER OF AMERICAN HOME PRODUCTS CORPORATION MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT Docket 8918. Modified Order To Cea!;e and Desu;l, April, 1983- Modifying Order, Feb. , 1984 This order modifies the Commission s Modified Order to Cease and Desist issued on April 8, 1983 (101 F. C. 698), to permit the company to substantiate superiority or freerlom-from-side-effects claims with competent and reliable scientific evidence, as is required of its competitors, Bristol-Meyers Co. and Sterling Drug Co. Previously, the company was required to substantiate such claims with two or more well-controlled clinical investigations. ORDER MODIFYING ORDER TO CEASE AND DESIST In response to the Commission s Order to Show Cause issued January 12, 1984, respondent American Home Products Corporation (AHP) and complaint counsel have consented to modify the Order of April 8, 1983 (101 F. C. 698) in this matter to allow AHP to make comparative analgesic effcacy claims under paragraph I(E) that are based on the reasonable basis standard for such claims established in the Commission s decisions in Bristol-Myers Company, Docket No. 8917 (102 F. C. 21) and Sterling Drug, Inc. Docket No. 8919 (102 C. 395). The Commission agrees that such modification should be made.
Accordingly, it is hereby ordered that the Order be reopened and paragraph I(B) thereof be modified by adding the word " " to the end of paragraph I(B)(2) and adding the following new paragraph I(B)(3): 3. Respondent, at the time such representation is made, possesses a reasonable basis for making that representation. A reasonable basis for such a representation shall consist of competent and reliable scientific evidence supporting it.
It is further ordered That with this modification, the Commission stay of paragraph I(B) is hereby lifted and the entire Order as modified shall take effect 90 days from our January 12, 1984 order, as contemplated by our Stay order of April 8, 1983. Interlocutory Order 103 F.