Carpentier, Sallye B., D/B/A Brown-Potter Hearing Aid

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

IN THE MATTER OF SALLYE B. CARPENTIER CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3438. Complaint, June 15, 1993--Decision, June 15, 1993 This consent order requires, among other things, the California hearing aid seller to. correct false and deceptive claims in Yellow Pages advertisements, prominently post corrected information about Medicare coverage in her office or provide it to consumers prior to purchase, and prohibits her from misrepresenting the coverage provided by any medical insurance for any hearing-related device or service she offers in the future. Appearances For the Commission: Collot Guerard and Eileen Harrington. For the respondent: Stuart Wallach, Orange, CA. COMPLAINT The Federal Trade Commission, having reason to believe that Sallye B. Carpentier, individually and d/b/a Brown-Potter Hearing Aid Center, ("respondent"), has violated certain provisions of the Federal Trade Commission Act, 15 U.S.C. 41 et seg., and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, alleges: PARAGRAPH 1. Respondent Sallye B. Carpentier, individually and d/b/a Brown-Potter Hearing Aid Center, is a resident of California. Respondent's office and principal place of business is located at 3740 E. 7th Street, Long Beach, California. PAR. 2. Respondent is a hearing aid dealer who is, and has been, selling hearing aids and offering hearing tests to the public. Hearing aids are a device within the meaning of Sections 12 and 15 of the Federal Trade Commission Act, 15 U.S.C. 52 and 55. SALLYE B. CARPENTIER 487 486 Complaint PAR. 3. Respondent is the owner of Brown-Potter Hearing Aid Center and she formulates, directs and controls the policies, acts and practices of Brown-Potter Hearing Aid Center. PAR. 4. The acts and practices of respondent alleged in this complaint are, and have been, in or affecting commerce, as commerce is defined by the Federal Trade Commission Act. PAR. 5. Respondent has placed, or caused to be placed, advertising for hearing aids in various Yellow Pages directories distributed to the general public, as a means of inducing the public to buy respondent's products and services.

PAR. 6. Respondent's advertising includes, but is not necessarily limited to, the attached Exhibit A. This advertising contains the following statement:

“Hearing Aid Center ... U.S. Government Plans Accepted" PAR. 7. Through the use of the statement contained in the advertisement referred to at paragraph six, including but not necessarily limited to the advertisement attached as Exhibit A, respondent has represented, directly or by implication, that U.S. Government Plans, including Medicare, will pay for the costs of hearing aids purchased from respondent.

PAR. 8. In truth and fact, Medicare will not pay for the costs of hearing aids purchased from respondent. Therefore, the representation made in paragraph seven was, and is, false and misleading. PAR. 9. The dissemination by respondent of the aforesaid false and misleading representation as alleged in this complaint constituted, and now constitutes, an unfair or deceptive act or practice and the making of false advertisements in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act, 15 U.S.C. 45(a) and 52.

Complaint EXHIBIT A amr emiennitaitn seme abshan da tA NAT A AE A ES OE T, 118 Keariag LA-S beng Reach 9/140 YELLOW PAGES “Tells Whera To Buy It’ T i] i] Y 1 4 Hearing Aids ARTESIA CERRITOS i e \\ i a5 1 21 1 4 6 1403 832 92 48 0.000000 peortsuonat5 1 21 1 4 7 1507 847 92 13 0.000000 gowns5 1 21 1 4 8 1607 845 20 12 0.000000 w~5 1 21 1 4 9 1669 830 81 24 96.013107 HEARINGS 1 21 1 4 10 1762 830 30 23 87.452538 AID4 1 21 1 5 0 893 860 849 56 -1 5 1 21 1 5 1 893 889 14 27 15.983368 }5 1 21 1 5 2 1252 860 13 42 25.487068 J5 1 21 1 5 3 1669 862 73 25 95.990135 CENTER4 1 21 1 6 0 1384 863 499 60 -1 5 1 21 1 6 1 1384 902 2 19 50.897545 i5 1 21 1 6 2 1432 895 159 22 95.788864 EMERGENCY5 1 21 1 6 3 1650 891 81 20 0.000000 Hernan5 1 21 1 6 4 1734 884 67 31 0.000000 Alesis5 1 21 1 6 5 1806 863 77 60 21.431091 e077,4 1 21 1 7 0 895 921 988 34 -1 5 1 21 1 7 1 895 924 130 31 63.915817 PECIF5 1 21 1 7 2 1459 923 107 21 96.185249 DENTISTS 1 21 1 7 3 1825 916 58 30 26.569435 anos4 1 21 1 8 0 1384 944 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SALLYE B. CARPENTIER 489 486 Decision and Order DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of respondent named in the caption hereof, and respondent having been furnished thereafter with a copy of a draft complaint that the Bureau of Consumer Protection proposed to present to the Commission for its consideration and that, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act; and Respondent, her attorney, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by respondent 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 respondent 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 respondent has violated the said Act, and that the 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 issues its complaint, makes the following jurisdictional findings and enters the following order: ]. Respondent Sallye B. Carpentier is a resident of California doing business as Brown-Potter Hearing Aid Center, a sole proprietorship. Respondent's office and principal place of business is located at 3740 E. 7th Street, Long Beach, California. Respondent Sallye B. Carpentier is a hearing aid dealer who is, and has been, selling hearing aids and offering hearing tests to the public. Respondent is the owner of Brown-Potter Hearing Aid Center and she formulates, directs and controls the policies, acts, and practices of said Brown-Potter Hearing Aid Center. Decision and Order 116 F.T.C.

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

ORDER It is ordered, That respondent Sallye B. Carpentier, individually and d/b/a Brown-Potter Hearing Aid Center, respondent's successors and assigns, and respondent's agents, representatives, and employees, directly or through any corporation, subsidiary, division, affiliate, partnership, sole proprietorship, or other device, in connection with the advertising, promotion, sale, distribution or offering for sale of any hearing-related device or service, in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from: A. Misrepresenting, directly or by implication, in any manner that Medicare will pay for the costs of such device or service. B. Misrepresenting, directly or by implication, in any manner that other types of medical insurance, whether federal, state, or private, will cover the costs of such device or service. II.

It is further ordered, That respondent Sallye B. Carpenter, individually and d/b/a Brown-Potter Hearing Aid Center, and respondent's successors and assigns, within fifteen (15) days after this order becomés final, send a certified letter to the publishers of all Yellow Pages directories that contain the representation in paragraph seven of the complaint. The letter shall state that any statements representing, directly or by implication, that U.S. Government Plans will pay for the costs of hearing aids are to be eliminated from the next appearing edition in which it is possible to SALLYE B. CARPENTIER 49] 486 Decision and Order make changes, and in all subsequent editions. Respondent shall include a copy of this order with the letter. I.

It is further ordered, That respondent Sallye B. Carpentier, individually and d/b/a Brown-Potter Hearing Aid Center, and respondent's successors and assigns, within fifteen (15) days after this order becomes final, either:

A. Post in each of the locations in which respondent does business, a prominent notice that is at least 12" by 15" in size that states clearly and conspicuously the following: MEDICARE DOES NOT COVER THE COSTS OF HEARING AIDS. MEDICARE ALSO DOES NOT COVER THE COSTS OF HEARING TESTS CONDUCTED IN THIS OFFICE.

This notice shall be clearly and conspicuously posted in the reception area so that it is visible to consumers as they enter the business location, and in each of the rooms where the hearing tests are conducted; or B. Provide each consumer prior to any discussion about the consumer's hearing problem a notice that is at least 8 %" by 11" in size that states clearly and conspicuously the following: MEDICARE DOES NOT COVER THE COSTS OF HEARING AIDS. MEDICARE ALSO DOES NOT COVER THE COSTS OF HEARING TESTS CONDUCTED IN THIS OFFICE.

Respondent shall obtain the consumer's signature on the notice. The signed notices shall be available to representatives of the Federal Trade Commission for inspection for a period of three (3) years from the date of service of this order.

Decision and Order 116 F.T.C.

C. The requirements described in (A) and (B) of this paragraph shall be followed for no less than two (2) years after the last date of distribution by the publisher to the general public of the Yellow Pages directories containing the representation in paragraph seven of the complaint.

IV.

It is further ordered, That respondent, Sallye B. Carpentier, individually and d/b/a Brown-Potter Hearing Aid Center, and respondent's successors and assigns, shall, for three (3) years after the date of this order, maintain and upon request make available to representatives of the Federal Trade Commission for inspection and copying all records demonstrating compliance with this order, including but not necessarily limited to: (1) Communications with publishers of the Yellow Page directories regarding the representation in paragraph seven of the complaint, and (2) The notices required by paragraph III(A) and (B) above. V.

It is further ordered, That respondent shall, within thirty (30) days after service upon respondent of this order, distribute a copy of the order to each of respondent's operating divisions subsidiaries, and related offices, to each of respondent's managerial employees, to each of respondent's employees responsible for advertising, and to each of respondent's officers, agents, representatives or employees selling hearing aids and/or offering hearing tests. SALLYE B. CARPENTIER 493 486 Decision and Order VI.

It is further ordered, That respondent shall hereafter promptly notify the Commission in the event of the discontinuance of respondent's present business or employment and, for a period of five (5) years from the date of service of this order, shall promptly notify the Commission of each affiliation with a new business or a new employment whose activities would or might include the sale of hearing aids, and/or the offering of hearing tests, each such notice to include respondent's new business address and a statement of the nature of such business or employment and a description of — respondent's expected duties and responsibilities. Vi.

It is further ordered, That respondent shall, within sixty (60) days after service of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which respondent has complied with all requirements of this order. Complaint 116 F.T.C,