Rmed International, Inc

Volume 115 · 115 F.T.C. 572

Citation: 115 F.T.C. 572
Docket: C-3382
Complaint: 1992-05-14
Decision: 1992-05-14
Document type: consent order
Case type: consumer protection
Statutes: FTC Act (section 5)
Industry: disposable diaper manufacturing
Outcome: consent order entered
Relief: cease_and_desist; recordkeeping; compliance_reporting; notice_to_customers
Order term (years): 5
Commission counsel: Michael Dershowitz and Georgianna A. Forbes
Respondent counsel: Pro se
Source: Original volume PDF
Original PDF: This decision as a PDF

deceptive advertising product labeling environmental claims

Cite this decision

Rmed International, Inc, 115 F.T.C. 572 (1992). Consumer Law Library, https://consumerlawlibrary.org/decisions/v115-0031

Report an error in this record (decision id v115-0031)

Order status: presumptively_terminable_pre_1995. Sunset may be extended by the latest qualifying federal-court complaint alleging an order violation; complaints, dismissal/appeal outcomes, and respondent-specific extensions are not fully tracked.

Cited by 0 later FTC decisions

Cites

Text (OCR of the scan at left; may contain errors)

Complaint 115 F.T.C.

IN THE MATTER OF

RMED INTERNATIONAL, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3382. Complaint, May 14, 1992--Decision, May 14, 1992

This consent order prohibits, among other things, a Colorado-based company, that makes "TenderCare" disposable diapers, and its president from making degradability claims in the future unless they possess competent scientific evidence to substantiate such claims.

Appearances

For the Commission: Michael Dershowitz and Georgianna A. Forbes.

For the respondents: Pro se.

COMPLAINT

The Federal Trade Commission, having reason to believe that respondents RMED International, Inc., a corporation, and Edward Reiss, individually and as an officer of said corporation, hereinafter sometimes referred to as respondents, have violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, alleges:

PARAGRAPH 1. Respondent RMED International, Inc. ("RMED") is a Colorado corporation with its office and principal place of business located at 675 Industrial Drive, Delta, Colorado. Respondent Edward Reiss is an officer of the corporate respondent named herein. He formulates, directs, and controls the acts and practices of the corporate respondent. His business address is the same as that of the corporation.

RMED INTERNATIONAL, INC., ET AL. 573

572 Complaint

The aforementioned respondents cooperate and act together in carrying out the acts and practices hereinafter set forth.

PAR. 2. Respondents have, or have caused to be, advertised, offered for sale, sold, and distributed disposable diapers to the public under the trade name "TenderCare."

PAR. 3. Respondents, at all times mentioned herein, have maintained a substantial course of business, including the acts and practices alleged in this complaint, which are in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act.

PAR. 4. Respondents have disseminated or have caused to be disseminated advertisements and package labels for "TenderCare" diapers, including, but not necessarily limited to, the attached Exhibits A through H.

The aforesaid package labels contain the following statements:

BIODEGRADABLE (Exhibits A and B).

Biodegradable Outer Diaper Backing. (Exhibit B). Bag IS Biodegradable. (Exhibit B).

The aforesaid advertisements contain the following statements:

[TenderCare] is completely biodegradable. (Exhibit C) (emphasis in original).

TenderCare disposable diapers offer a new choice for parents concerned about the quality of the environment... (Exhibit D).

Most mass-marketed disposable diapers are not biodegradable, so they contribute every day to the growing environmental crisis. These non-biodegradable diapers will become a lasting problem which your children and perhaps your great-great grandchildren will have to solve. But with biodegradable TenderCare diapers, it doesn't have to be that way. (Exhibit D).

What's more, other disposable diapers do not biodegrade which means they're harmful to the environment. (Exhibit E).

Because TenderCare Diapers biodegrade, you can feel even better about using a disposable diaper. (Exhibit E).

TenderCare, America's first biodegradable, chemical-free disposable diaper is setting the standard for biodegradable products by adding POLYCLEAN to the plastic liner. (Exhibit F) (emphasis in original).

Complaint 115 F.T.C.

POLYCLEAN is currently the only biodegradable additive for plastic known to break down in America's solid waste landfills. (Exhibit F)(emphasis in original).

PolyClean has 6% corn starch contained in most biodegradable plastics, but also includes a trace element of minerals that will cause a chemical reaction in the plastic several months after it hits the solid waste disposal system which will break the plastic down into a wax residue. This residue can then be biologically attacked. (Exhibit G).

When you choose diapers for your baby, we hope that you will choose a diaper that . . . will not sit in a landfill for 200 to 500 years. (Exhibit G).

As we all know by now, disposable diapers, like many other disposable products, once discarded, remain intact and become part of what the EPA calls [the] "staggering garbage crisis" facing us today. TenderCare diapers are part of a solution to this problem. The plastic used in TenderCare diapers has FDA approved ingredients that aid in the degradation (sic) process allowing these diapers to turn into harmless carbon dioxide and water in a fraction of the time it takes conventional plastic diapers. (Exhibit H).

PAR. 5. Through the use of the statements contained in the advertisements and labels referred to in paragraph four, including but not necessarily limited to the advertisements and labels attached as Exhibits A through H, respondents have represented, directly or by implication, that:

1. "TenderCare" disposable diapers will completely break down, decompose, and return to nature in a reasonably short period of time after consumers dispose of them as trash. 2. Compared to other disposable diapers, "TenderCare" disposable diapers offer a significant environmental benefit when consumers dispose of them as trash that is buried in a landfill. 3. "TenderCare" disposable diapers will completely break down, decompose, and return to nature within 2 to 5 years.

RMED INTERNATIONAL, INC., ET AL. 575

572 Complaint

4. "TenderCare" disposable diapers will break down, decompose, and return to nature significantly faster than other disposable diapers after consumers dispose of them as trash that is buried in landfills. 5. "TenderCare" disposable diapers will completely break down, decompose, and return to nature in a short enough period of time to significantly reduce the amount of garbage in landfills.

PAR. 6. Through the statements contained in the advertisements and labels referred to in paragraph four, including but not necessarily limited to the advertisements and labels attached as Exhibits A through H, respondents have represented, directly or by implication, that at the time they made the representations set forth in paragraph five, respondents possessed and relied upon a reasonable basis that substantiated such representations. PAR. 7. In truth and in fact, at the time respondents made the representations set forth in paragraph five respondents did not possess and rely upon a reasonable basis that substantiated such representations. Therefore, the representation set forth in paragraph six was, and is, false and misleading. PAR. 8. The dissemination by respondents of the aforesaid false and misleading representations, as alleged in this complaint, constitutes unfair or deceptive acts or practices in or affecting commerce in violation of Section 5(a) of the Federal Trade Commission Act.

Complaint 115 F.T.C.

EXHIBIT A

Tender Care CHEMICAL FREE Superabsorbent Disposable Diapers

NEW! TARGET RELEASEABLE TAPE

"I'd like to tell you about our new product... We have a new disposable diaper that is superabsorbent and has a target release tape. We call it Tender Care. Tender Care is the only diaper that has a target release tape. The tape is a special kind of tape that can be used over and over again. It's a clear tape that is strong and sticky. It's also a tape that is easy to use. You just pull the tape off and stick it on the target. The target is a special area on the front of the diaper. The target is made of a special material that the tape sticks to. The tape can be stuck to the target over and over again. Tender Care is also superabsorbent. It has a special polymer in it that absorbs liquid. The polymer is a superabsorbent polymer. It can absorb many times its weight in liquid. Tender Care is also chemical free. It has no chlorine, no perfumes, no dyes, no lotions, no alcohol, no formaldehyde, no parabens, no phthalates, no PVC, no latex, no TBT, no DBT, no MBT, no heavy metals, no pesticides, no herbicides, no fungicides, no insecticides, no rodenticides, no carcinogens, no mutagens, no teratogens, no reproductive toxins, no endocrine disruptors, no neurotoxins, no immunotoxins, no allergens, no irritants, no sensitizers, no toxins, no poisons, no hazardous substances, no toxic chemicals, no harmful chemicals, no dangerous chemicals, no unsafe chemicals, no chemicals that are bad for you or the environment. Tender Care is also biodegradable. It is made of materials that break down naturally. It is compostable. It is flushable. It is also hypoallergenic. It is dermatologist tested. It is pediatrician tested. It is clinically tested. It is also affordable. It is priced right. It is available in sizes newborn, small, medium, large, and extra large. It is available at your local store. So try Tender Care today. You'll be glad you did."

MODEGRADABLE T.A.R.G.E.T.

EXHIBIT A

The image has been rotated 90 degrees clockwise.The text reads: RMED INTERNATIONAL, INC., ET AL. 577

572 Complaint

EXHIBIT B

BIODEGRADABLE Disposable Diapers TenderCare™ Special Patient Construction

TenderCare™ Special Patient Construction

The TenderCare™ Special Patient Construction is an incontinent garment designed for the special patient. The unique construction provides superior performance and comfort not available in other disposable briefs. TenderCare™ is designed to effectively manage heavy to light incontinence. The special "Patient Construction" provides the following benefits: • Superabsorbent polymer locks in fluid away from the skin, • Unique design provides a comfortable, secure fit, • Refastenable tape tabs allow for easy inspection and adjustment, • Made of a soft, nonwoven material that is gentle to the skin, • Highly absorbent cellulose fibers quickly absorb fluids, • Moisture-proof backing prevents leakage.

For more information about TenderCare™ products call toll-free 1-800-328-6284 (in MN call collect 612-884-6555).

TenderCare™ is a trademark of Humanicare International, Inc.

2050 East 230th Street Des Moines, Iowa 50317

For more information about TenderCare™ products call toll-free 1-800-328-6284 (in MN call collect 612-884-6555).

TenderCare™ is a trademark of Humanicare International, Inc.

2050 East 230th Street Des Moines, Iowa 50317

Toll 1-800-328-6284 In Minnesota call collect 612-884-6555

TenderCare™ Biodegradable Disposable Diapers

TenderCare™ Biodegradable Disposable

Complaint 115 F.T.C.

EXHIBIT C

IT'S TIME TO CHANGE YOUR BABY'S DIAPERS

Your baby will spend approximately 20,000 hours in diapers. Today's superabsorbent diapers are very convenient and do a great job of keeping your baby dry.

But here's something you may not know:

Most superabsorbent diapers, including the big, nationally-advertised brands, use chemicals to keep your baby dry. Moisture turns these chemicals into a gel that sits right next to baby's skin and genital area. And you won't find these chemicals listed on package labels because the FDA does not regulate infant diapers.

But here's the good news. Now there's chemical-free TenderCare, a new disposable, superabsorbent diaper that's soft, comfortable, free of absorbency chemicals, perfumes, deodorants and is completely biodegradable.

Instead of chemicals, new TenderCare™ keeps your baby dry with a unique design—a 100% natural "wicking" technique developed by a pediatrician and refined by a team of neo-natal specialists. This patented* design not only traps moisture, but also allows more air circulation for healthy skin and less diaper rash.

To find out how you can start using these remarkable new diapers, call toll free 1-800-34-IM DRY (1-800-344-6379).

Tender♥Care® Because babies should only be exposed to love.

EXHIBIT C

[logo: PRECIOUS] MADE IN USA

[logo: NBS GOODS] Available at NBS Good's In The New York area

RMED INTERNATIONAL, INC., ET AL. 579 Complaint

EXHIBIT D

Change the World one diaper at a time.

Introducing biodegradable, chemical-free TenderCare® disposable diapers.

Every so often, a revolutionary new product comes along that makes life better. Now, TenderCare disposable diapers offer a new choice for parents concerned about the quality of the environment and the possible risks to their children from exposure to chemicals.

Biodegradable.

Most mass-marketed disposable diapers are not biodegradable, so they contribute every day to the growing environmental crisis. These nonbiodegradable diapers will become a lasting problem which your children and perhaps your greatgrandchildren will have to solve.

But with biodegradable TenderCare diapers, it doesn't have to be that way.

Chemical-free.

TenderCare diapers use a patented* 100% natural "wicking" action to draw wetness away from babies' bottoms, keeping them dry and comfortable.

This unique design replaces acrylic and other polymers used by other diapers to keep babies dry. These chemicals work by turning wetness into a gel, which sits next to your baby's skin. Not so with TenderCare. That's why we call it chemical-free.

Changing to TenderCare is one way you can make a difference for your child, for the environment and for you and your baby. TenderCare Diapers can be delivered right to your home. Call 1-800-344-6379 to find out more and tell a friend. Together, we can change the world one diaper at a time.

Call 1-800-34-JM-DRY

Tender Care® Because babies should only be exposed to love.

EXHIBIT D

Complaint 115 F.T.C.

EXHIBIT E

Biodegradable EXHIBIT E

It's time to change your baby's diapers.

Almost all of today's "super-absorbent" diapers rely on chemicals to keep baby dry... and these chemicals are only a few millimeters away from baby's skin. What's more, other disposable diapers do not biodegrade which means they're harmful to the environment.

Our TenderCare Diapers are biodegradable. TenderCare diapers are soft, super-absorbent, comfortable and contain absolutely no chemicals to harm your baby or the world he lives in. The secret is in the patented design that drains moisture away from baby and traps it in a special reservoir. Air gets next to baby's skin instead of moisture. That helps prevent diaper rash, reduces irritation and promotes healthier skin. And since there are no perfumes or deodorants, there's less chance of skin reactions. Because TenderCare Diapers biodegrade, you can feel better about using a disposable diaper.

We'll deliver every 3 weeks automatically, if you wish. Now you'll never have to make emergency trips to the store. We'll send our diapers directly to your home every three weeks (each package contains a three week supply). If your child needs diapers at a different rate, we'll adjust your deliveries accordingly. As your child grows, just contact our Customer Service Department toll-free and we'll change the size of diapers you need to begin with your next shipment. What could be easier?

There's absolutely no obligation whatsoever. You can receive our TenderCare Diapers for three weeks or for several years. Just let us know if you wish to stop the shipments... we'll do so immediately. The whole idea is to make your shopping easier.

Here's all you do.

Call our toll-free number 1-800-LITTLE-1 (1-800-548-8531) weekdays between 9 AM and 5:30 PM. Tell our Customer Service Representative that you want to begin receiving our diapers on a regular basis. Then mention number is #K002. Specify the size, shipping address, and provide your VISA, MasterCard, or American Express Card number and expiration date. Every three weeks we'll send you more diapers and charge your credit card for $59 (California residents add 6.5% sales tax). There are no extra delivery charges for UPS deliveries in the continental United States. We only charge your credit card when we ship diapers to you! And there are no hidden or

upfront charges for this service.

Call today! Whether you want to give us a try or receive regular deliveries, you'll be taking an important step toward promoting a healthier baby and environment. We don't know of an easier way to shop for your baby. We worry about diapers so you don't have to.

Trial Size Diapers #K001, $14.95 (No additional UPS shipping) Size 1: 8-14 lbs., 40 diapers Size 2: 11-18 lbs., 36 diapers Size 3: 16-26 lbs., 32 diapers Size 4: 22-35 lbs., 28 diapers Size 5: Over 30 lbs., 20 diapers

TenderCare Diapers #K002, $59 (No additional UPS shipping) Size 1: 8-14 lbs., 192 diapers Size 2: 11-18 lbs., 168 diapers Size 3: 16-26 lbs., 144 diapers Size 4: 22-35 lbs., 120 diapers Size 5: Over 30 lbs., 112 diapers

For automatic shipments every three weeks, order #K002 and specify size. There is no extra charge for this service.

Ordinary cloth diapers are expensive too! (And you still have to wash them.) $2.00 Cloth diapers cost about $2.00 each. And you need at least 6 dozen. That's over $144. Plus the cost of washing, drying, and folding... not to mention the inconvenience. TenderCare Diapers are a better value. [illegible] Diaper Service Diaper service costs about $15.00 a week... over $780 a year. And you still have to deal with the inconvenience of a diaper pail in your nursery. TenderCare Diapers are a better value.

NEW Baby's pacifier serenades her to sleep. This merry-go-round is a musical instrument. Such a happy way for baby to relax. And when she's asleep, you can slip it out of her mouth. It's made of soft, safe plastic. Non-toxic, of course. And it's shaped to allow for easy breathing. Soothing and safe. Buy two and SAVE. (Pacifier design may vary slightly.) Musical Pacifier #C003, $7.95 Buy two, only $14.90 Buy three and save $2, $21.90 (Add shipping/handling)

RMED INTERNATIONAL, INC., ET AL. 581 Complaint

EXHIBIT F

Call 1-800-34-IM-DRY Change the World One Diaper at a Time TenderCare, America's first biodegradable, chemical-free disposable diaper is setting the standard for biodegradable products by adding POLYCLEAN™ to the plastic liner. POLYCLEAN™ is currently the only biodegradable additive for plastic known to break down in America's solid waste landfills.

TenderCare Diapers are the most absorbent, chemical-free diaper made. The natural "wicking" action draws wetness away from babies skin, keeping them dry and comfortable. Call 1-800-344-6379 for free information on Free Home Delivery.

Tender Care

EXHIBIT F

Complaint 115 F.T.C.

EXHIBIT G

Tender♥Care™ Because babies should only be exposed to love.

Chamberlains has carried Chemical-free TenderCare Biodegradable diapers for months now, but recently the credibility of biodegradable products is being questioned in the media. Unfortunately, the information is often inaccurate, incomplete or contradictory. More often than not, biodegradable and photodegradable plastics are taken to be the same, when they are actually very different. And mentions of TenderCare usually do not discuss their main feature, which is super absorbency without chemicals.

The plastic used in Tendercare is called "Poly-Clean" and was developed by Archer Daniels Midland. You may know them for their work in helping to reduce acid rain and carbon dioxide in the environment. Poly-Clean has 6% corn starch contained in most biodegradable plastics, but also includes a trace element of minerals that will cause a chemical reaction in the plastic several months after it hits the solid waste disposal system which will break the plastic down into a wax residue. This residue can then be biologically attacked.

This plastic does not require sunlight. The break down will happen more quickly with oxygen and water, since the chemical and biological processes will both be at work. But it will happen within two to five years even in low oxygen environments. This is a relatively new process, and unfortunately many journalists do not have updated information when writing their articles.

TenderCare diapers were developed and patented by a pediatrician concerned about babies wearing diapers that contain a chemical compound which has not had long term safety testing.

Even though TenderCare was the first biodegradable diaper in the U.S., the chemical issue is really our main concern. TenderCare diapers were developed and patented by a pediatrician concerned about babies wearing diapers that contain a chemical compound which has not had long term safety testing. And all of the ultra thin and absorbent diapers on the market contain these acrylic acid polymer salt chemicals to absorb wetness. Because these diapers are so absorbent, many babies diapers are not changed often enough to keep their skin healthy. TenderCare diapers unique design absorbs moisture and traps it away from babies' skin.

When you choose diapers for your baby, we hope you will choose a diaper that does not contain these absorbing chemicals, and will not sit in a landfill for 200 to 500 years. Please try TenderCare, available in four sizes.

Mandarin Orange Spice® Chicken 3 Pounds Frying Chicken 1/2 Cup Boiling Water Car Into Serving Pieces 1/2 Cup Soy Sauce 4 Mandarin Orange Spice 2 Tbsp. Honey Herb Tea Bags (non caffeine) 2 Tsp. Vegetable Oil

Open tea bags and empty contents into a bowl. Add the boiling water and let stand about 5 minutes. Stir in honey, soy sauce, and oil. Put chicken in a glass baking dish. Pour marinade over chicken. Cover and allow to marinate 3-4 hours at room temperature, turning once. (Can be marinated in refrigerator.) Bake chicken in marinade (covered) at 325° for an hour or until chicken is tender. Serve marinade over rice. Serves 4 to 6.

NATURE'S HARVEST Page 7 January 1990

EXHIBIT G

RMED INTERNATIONAL, INC., ET AL.

Complaint EXHIBIT H

[Diagram of a suction catheter with labels:] Suction opening Suction channel Suction chamber Suction opening Suction channel Suction chamber

[Text block:] by the physician. The catheter is then advanced into the trachea and bronchi, with the application of suction being controlled by the physician's finger over the suction opening. The catheter is then withdrawn, and the procedure repeated as necessary.

The prior art also discloses a "closed system" catheter which permits the catheter to be advanced and withdrawn without the physician touching the catheter. Such a system is disclosed in U.S. Patent No. 3,991,762 to Radford. The Radford patent discloses a catheter contained within a flexible, collapsible plastic envelope. The envelope is attached at one end to the endotracheal tube and at the other end to the catheter. The envelope permits the catheter to be advanced and withdrawn without the physician touching the catheter. However, the envelope must be collapsed and expanded as the catheter is advanced and withdrawn. This can be awkward and difficult to do.

The present invention is directed to an improved closed system suction catheter which overcomes the disadvantages of the prior art. The present invention provides a closed system suction catheter which is easy to use and which does not require the physician to touch the catheter.

[Text block:] SUMMARY OF THE INVENTION

The present invention is directed to a closed system suction catheter comprising a catheter, a flexible collapsible envelope surrounding the catheter, and a valve means. The valve means is connected to one end of the envelope and includes a first port for connection to a patient and a second port for connection to a vacuum source. The catheter is slidably received within the valve means. The valve means includes means for preventing the flow of fluid through the valve means when the catheter is withdrawn from the patient.

[Text block:] BRIEF DESCRIPTION OF THE DRAWINGS

Figure 1 is a perspective view of the closed system suction catheter of the present invention.

Figure 2 is a cross-sectional view of the valve means of the present invention.

Figure 3 is a cross-sectional view of the valve means of the present invention showing the catheter in a withdrawn position.

[Text block:] DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENT

Referring now to Figure 1, there is shown a closed system suction catheter 10 of the present invention. The catheter 10 includes a catheter 12, a flexible, collapsible envelope 14, and a valve means 16. The catheter 12 is an elongated, flexible tube having a proximal end 18 and a distal end 20. The distal end 20 is provided with a suction opening 22. The catheter 12 is preferably made of a flexible plastic material such as polyvinyl chloride.

The envelope 14 surrounds the catheter 12 and is attached at one end to the valve means 16 and at the other end to the catheter 12. The envelope 14 is preferably made of a flexible, transparent plastic material. The envelope 14 permits the catheter 12 to be advanced and withdrawn without the physician touching the catheter.

The valve means 16 is connected to the proximal end of the envelope 14. The valve means 16 includes a first port 24 for connection to a patient and a second port 26 for connection to a vacuum source. The catheter 12 is slidably received within the valve means 16.

[Text block:] Referring now to Figure 2, there is shown a crosssectional view of the valve means 16. The valve means 16 includes a housing 28 having a first end 30 and a second end 32. The first port 24 is located at the first end 30 of the housing 28. The second port 26 is located at the second end 32 of the housing 28. The housing 28 includes a central passageway 34 which extends from the first port 24 to the second port 26.

The catheter 12 extends through the central passageway 34. A seal 36 is provided between the catheter 12 and the housing 28 to prevent the flow of fluid through the valve means 16 when the catheter is withdrawn from the patient. The seal 36 is preferably an annular ring made of a flexible material such as rubber.

[Text block:] Referring now to Figure 3, there is shown a crosssectional view of the valve means 16 with the catheter 12 in a withdrawn position. As can be seen, the seal 36 engages the catheter 12 to prevent the flow of fluid through the valve means 16. The seal 36 also wipes the catheter 12 as it is withdrawn to remove any secretions therefrom.

[Text block:] The present invention provides a closed system suction catheter which is easy to use and which does not require the physician to touch the catheter. The catheter is advanced and withdrawn through the valve means, and the seal prevents the flow of fluid through the valve means when the catheter is withdrawn.

[Text block:] What is claimed is:

1. A closed system suction catheter comprising: a catheter having a proximal end and a distal end; a flexible, collapsible envelope surrounding said catheter; and valve means connected to one end of said envelope, said valve means including a first port for connection to a patient and a second port for connection to a vacuum source, said catheter being slidably received within said valve means, and said valve means including means for preventing the flow of fluid through said valve means when said catheter is withdrawn from the patient.

2. The closed system suction catheter of claim 1 wherein said valve means includes a housing having a central passageway extending therethrough.

3. The closed system suction catheter of claim 2 wherein said means for preventing the flow of fluid comprises a seal located between said catheter and said housing.

4. The closed system suction catheter of claim 3 wherein said seal is an annular ring made of a flexible material.

5. The closed system suction catheter of claim 4 wherein said seal wipes said catheter as it is withdrawn.

[Table:] H 1 5 1 5 1 5 Inventor Patent Issue Date Filing Date Rusch 3,991,762 Nov. 16, 1976 Oct. 28, 1974 Rusch 4,027,510 June 7, 1977 Oct. 28, 1974 Rusch 4,033,331 July 5, 1977 Oct. 28, 1974 Rusch 4,059,109 Nov. 22, 1977 Oct. 28, 1974

[Text block:] UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

RMED INTERNATIONAL, INC., ET AL., Plaintiffs, vs.

RUSCH, INC., ET AL., Defendants.

Case No. CV 83-7711 AWT (Tx) EXHIBIT H Complaint

[Text block:] I, [illegible], declare:

1. I am the [illegible] of [illegible] and have personal knowledge of the facts set forth herein.

2. Attached hereto as Exhibit H is a true and correct copy of [illegible] United States Patent No. 3,991,762.

3. Attached hereto as Exhibit I is a true and correct copy of [illegible] United States Patent No. 4,027,510.

4. Attached hereto as Exhibit J is a true and correct copy of [illegible] United States Patent No. 4,033,331.

5. Attached hereto as Exhibit K is a true and correct copy of [illegible] United States Patent No. 4,059,109.

I declare under penalty of perjury that the foregoing is true and correct.

Executed on [illegible], 1983.

[illegible] [illegible]

Decision and Order 115 F.T.C.

DECISION AND ORDER

The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furnished thereafter with a copy of a draft complaint which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act; and

The respondents and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission's Rules; and

The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents have violated the Act, and that a complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby makes the following jurisdictional findings and enters the following order:

1. Respondent RMED International, Inc. is a Colorado corporation, with its office and principal place of business located at 675 Industrial Drive, Delta, Colorado.

Respondent Edward Reiss is an officer of said corporation. He formulates, directs, and controls the acts and practices of said corporation, and his business address is the same as that of said corporation.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

RMED INTERNATIONAL, INC., ET AL. 585

572 Decision and Order

ORDER

DEFINITION

For purposes of this order, the following definition shall apply:

"RMED plastic product" means any product or product packaging composed of plastic, in whole or in part, that is offered for sale, sold, or distributed to the public by respondents, their successors and assigns, under the "TenderCare" brand name or any other brand name; and also means any plastic product or product packaging that is sold or distributed to the public by third parties under private labeling agreements with respondents, their successors and assigns.

A. It is ordered, That respondents RMED International, Inc., a corporation, its successors and assigns, and its officers, and Edward Reiss, individually and as an officer of said corporation, and respondents' representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, labeling, offering for sale, sale, or distribution of any RMED plastic product, including, but not limited to, disposable diapers and their plastic packaging, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, by words, depictions, or symbols:

(1) That any such plastic product is "degradable," "biodegradable," or "photodegradable;" or,

(2) Through the use of such terms as "degradable," "biodegradable," "photodegradable," or any other similar term or expression, that any such plastic product offers any environmental benefits compared to other products when consumers dispose of them as trash that is ordinarily buried in a sanitary landfill or incinerated,

unless, at the time of making such representation, respondents possess and rely upon a reasonable basis, consisting of competent and

Decision and Order 115 F.T.C.

reliable scientific evidence that substantiates such representation. For the purposes of this order, to the extent such evidence of a reasonable basis consists of scientific or professional tests, analyses, research, studies, or any other evidence based on expertise of professionals in the relevant area, such evidence shall be "competent and reliable" only if those tests, analyses, research, studies, or other evidence are conducted and evaluated in an objective manner by persons qualified to do so, and using procedures generally accepted in the profession to yield accurate and reliable results.

B. Provided, however, respondents will not be in violation of this order, in connection with the advertising, labeling, offering for sale, sale, or distribution of RMED plastic products, if they truthfully represent that their plastic products will compost, degrade into usable compost, or otherwise be converted into usable compost, when disposed of in facilities that collect municipal solid waste for composting (that is, the accelerated breakdown of waste into soil-conditioning material), provided that the labeling of such products and any advertising referring to the degradability of such products discloses clearly, prominently, and in close proximity to such representation:

(1) That such products are not designed to degrade in landfills; and either (2)(a) That facilities to compost such products are generally unavailable in the U.S., or (2)(b) The approximate percentage of the U.S. population having access to composting programs for such products.

If the advertising and labeling of respondents plastic products otherwise complies with Subpart A of Part I of this order, respondents will not be in violation of this order if they do not make the disclosures in this proviso (Subpart B).

II.

It is further ordered, That respondents RMED International, Inc., a corporation, its successors and assigns, and its officers, and Edward

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572 Decision and Order

Reiss, individually and as an officer of said corporation, and respondents' representatives, agents, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, labeling, offering for sale, sale, or distribution of any RMED plastic product, including, but not limited to, disposable diapers and their plastic packaging, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, by words, depictions, or symbols, that any such product offers any environmental benefit, unless the specific nature of that benefit is clear from the context or is disclosed clearly, prominently, and in close proximity thereto; and, at the time of making such representation, respondents possess and rely upon a reasonable basis, consisting of competent and reliable scientific evidence that substantiates such representation. For purposes of this provision, a disclosure elsewhere on the product package shall be deemed to be "in close proximity" to such terms if there is a clear and conspicuous cross-reference to the disclosure. The use of an asterisk or other symbol shall not constitute a clear and conspicuous crossreference. A cross-reference shall be deemed clear and conspicuous if it is of sufficient prominence to be readily noticeable and readable by the prospective purchaser when examining the principal display panel of the package. The principal display panel of the package is that part of the package that faces the consumer when presented under normal and customary conditions of display for retail sale.

III.

It is further ordered, That for three (3) years from the date that the representations to which they pertain are last disseminated, respondents shall maintain and upon request make available to the Federal Trade Commission for inspection and copying:

A. All materials relied upon to substantiate any representation covered by this order; and B. All tests, reports, studies, surveys, or other materials in their possession or control that contradict, qualify, or call into question

Decision and Order 115 F.T.C.

such representation or the basis upon which respondents relied for such representation.

IV.

It is further ordered, That respondent RMED International, Inc. shall distribute a copy of this order to each of its operating divisions and to each of its officers, agents, representatives, or employees engaged in the preparation and placement of advertisements or other such sales materials covered by this order.

It is further ordered, That respondents shall notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondent, such as a dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries, or any other change in the corporation which may affect compliance obligations under this order.

VI.

It is further ordered, That the individual respondent shall promptly notify the Commission of the discontinuance of his present business or employment and of his affiliation with a new business or employment. In addition, for a period of five (5) years, from the service date of this order, he shall promptly notify the Commission of each affiliation with a new business or employment whose activities relate to the manufacture, sale, or distribution of plastic products, or of his affiliation with a new business or employment in which his own duties and responsibilities relate to the manufacture, sale, or distribution of plastic products. When so required under this paragraph, each such notice shall include the individual respondent's new business address and a statement of the nature of the business or employment in which the respondent is newly engaged, as well as a description of the respondent's duties and responsibilities in connection with the business or employment. The expiration of the

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notice provision of this paragraph shall, not affect any other obligation arising under this order.

VII.

It is further ordered, That respondents shall, within sixty (60) days after service of this order upon them, and at such other times as the Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.

Modifying Order 115 F.T.C.

IN THE MATTER OF

U.S. PIONEER ELECTRONICS CORP.

MODIFYING ORDER IN REGARD TO ALLEGED VIOLATION OF SEC. 5 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-2755. Consent Order, Oct. 24, 1975 -- Modifying Order, May 19, 1992

This order reopens the proceeding and modifies the Commission's consent order issued in 1975 (86 FTC 1002) with Pioneer Electronics (USA) Inc. so that Pioneer is no longer prohibited from unilaterally terminating a dealer who sells Pioneer home-electronics products at a price other than the suggested retail price.

ORDER REOPENING AND MODIFYING ORDER ISSUED OCTOBER 24, 1975

On December 6, 1991, Pioneer Electronics (USA) Inc., the successor corporation to U.S. Pioneer Electronics ("Pioneer"), filed a "Petition to Reopen Proceedings and to Modify Consent Order" ("Petition") in Docket No. C-2755, pursuant to Section 5(b) of the Federal Trade Commission Act, 15 U.S.C. 45(b), and Section 2.51 of the Federal Trade Commission's Rules of Practice, 16 CFR 2.51. The Petition requested that the Federal Trade Commission ("Commission") reopen the consent order issued on October 24, 1975, U.S. Pioneer Electronics Corp., 86 FTC 1002 (1975), and previously modified on March 18, 1983, 101 FTC 372 (1983), to set aside and modify several provisions contained in paragraph I of the order. On April 8, 1992, the Commission issued an "Order Granting in Part and Denying in Part Request to Reopen and Modify Order Issued October 24, 1975, and Order to Show Cause" ("Order Modifying Order and Show Cause") which granted part of Pioneer's Petition by deleting paragraph I.6., relating to restrictions on Pioneer withholding cooperative advertising allowances, and partially modifying paragraph I.10. to remove the restrictions on Pioneer's right to terminate a dealer unilaterally because the dealer has advertised Pioneer products at prices other than those Pioneer deemed appropriate or approved. The Commission, however, denied Pioneer's request to

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