Consumer Law Library

Amerifit, Inc

Volume 123 · 123 F.T.C. 1454

Citation
123 F.T.C. 1454
Docket
C-3747
Complaint
1997-06-16
Decision
1997-06-16
Document type
consent order
Case type
consumer protection
Statutes
FTC Act (section 5)
Industry
diet supplements
Outcome
consent order entered
Relief
cease_and_desist; affirmative_disclosure; redress; compliance_reporting; notice_to_customers
Money (USD)
100000
Order term (years)
5
Commission counsel
Jeffrey Feinstein
Respondent counsel
Nancy Buc and Phillip Katz, Buc & Bearsdley, Washington, D.C
Source
Original volume PDF
Original PDF
This decision as a PDF

deceptive advertisinghealth claims

Cite this decision

Amerifit, Inc, 123 F.T.C. 1454 (1997). Consumer Law Library, https://consumerlawlibrary.org/decisions/v123-0121

Report an error in this record (decision id v123-0121)

Order status: dismissed_no_order. 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)

IN THE MATTER OF AMERIFIT, INC.

CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3747. Complaint, June 16, 1997--Decision, June 16, 1997 This consent order requires, among other things, the Connecticut-based marketer of diet supplements to pay $100,000 for disgorgement, and prohibits the use of the name Fats 1 5 1 3 5 921 987 179 40 96.235222 Burners unless it is part of the trade name, Fats 1 5 1 3 15 1942 984 161 37 96.611298 Burners4 1 5 1 4 0 549 1040 1554 51 -1 5 1 5 1 4 1 549 1044 96 44 96.109131 Diet,5 1 5 1 4 2 660 1044 171 36 96.430077 Exercises 1 5 1 4 3 846 1044 74 36 96.495323 ands 1 5 1 4 4 935 1044 240 47 96.136368 Supplements 1 5 1 4 5 1190 1042 176 47 96.465294 System, and that the material containing the name includes the specified disclosure statements clearly and prominently. The consent order also requires the respondent to possess scientific substantiation for any claim that a food, drug or dietary supplement will cause weight loss or reduce body fat.

Appearances For the Commission: Jeffrey Feinstein.

For the respondent: Nancy Buc and Phillip Katz, Buc & Bearsdley, Washington, D.C.

COMPLAINT The Federal Trade Commission, having reason to believe that Amerifit, Inc., a corporation ("respondent"), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges: 1. Respondent Amerifit, Inc., is a Delaware corporation with its principal office or place of business at 166 Highland Park Drive, Bloomfield, Connecticut.

2. Respondent has manufactured, advertised, labeled, offered for sale, sold and distributed products to the public, including Fat4 1 10 2 3 0 460 2560 1648 61 -1 5 1 10 2 3 1 460 2568 230 50 95.138702 Burners, Fast5 1 10 2 3 3 873 2568 231 50 96.398415 Burners, Improved5 1 10 2 3 5 1421 2564 206 43 96.826439 Formulas 1 10 2 3 6 1653 2565 77 41 96.308769 Fats 1 10 2 3 7 1758 2562 231 51 93.485817 Burners, and Extras 1 10 2 4 2 662 2637 204 54 96.105415 Strengths 1 10 2 4 3 910 2637 78 43 96.105415 Fats 1 10 2 4 4 1031 2637 213 41 95.447838 Burners (collectively, thes 1 10 2 4 7 1793 2634 78 41 96.135506 Fats 1 10 2 4 8 1913 2632 193 41 96.882004 Burners4 1 10 2 5 0 459 2698 1648 64 -1 5 1 10 2 5 1 459 2706 270 56 94.621452 products). These products are foods and/or drugs within the meaning of Sections 12 and 15 of the Federal Trade Commission Act. 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as commerce is defined in Section 4 of the Federal Trade Commission Act. 4, Respondent has disseminated or has caused to be disseminated advertisements and promotional materials for the products referred to AMERIFIT, INC. 1455 1454 Complaint in paragraph two, including but not necessarily limited to the attached Exhibits A and B. These advertisements and promotional materials contain the following statements:

A. WHEN5 1 4 1 1 3 806 665 35 28 93.661041 IT5 1 4 1 1 4 851 664 135 29 96.292259 COMES5 1 4 1 1 5 997 664 50 29 96.949165 TO5 1 4 1 1 6 1058 664 154 29 96.644409 WEIGHTS 1 4 1 1 7 1222 663 94 29 96.671509 LOSS5 1 4 1 1 8 1326 654 158 37 94.231651 THERE'S5 1 4 1 1 9 1494 660 184 29 96.493980 NOTHING5 1 4 1 1 10 1689 660 87 28 90.779175 LIKES 1 4 1 1 11 1787 652 47 36 90.779175 IT!5 1 4 1 1 12 1851 660 72 27 96.216431 FATS 1 4 1 1 13 1934 643 212 44 48.766312 BURNERS4 1 4 1 2 0 507 708 1644 54 -1 5 1 4 1 2 1 507 715 30 36 96.585289 is5 1 4 1 2 2 565 726 8 25 96.574677 a5 1 4 1 2 3 593 716 113 36 96.574677 100%5 1 4 1 2 4 721 715 140 36 93.295143 natural5 1 4 1 2 5 876 714 192 48 92.944695 lipotropic5 1 4 1 2 6 1084 714 159 37 96.312622 formulas 1 4 1 2 7 1258 711 178 48 97.000298 designed5 1 4 1 2 8 1449 716 39 32 97.014450 to5 1 4 1 2 9 1503 710 87 46 96.993546 helps 1 4 1 2 10 1604 709 136 47 96.952713 peoples 1 4 1 2 11 1757 709 99 37 96.627350 from5 1 4 1 2 12 1868 721 111 35 96.594055 every5 1 4 1 2 13 1992 709 100 36 96.655052 walks 1 4 1 2 14 2106 708 45 37 96.317596 of4 1 4 1 3 0 507 766 1638 53 -1 5 1 4 1 3 1 507 772 62 37 96.834358 life5 1 4 1 3 2 583 772 151 37 96.626999 achieves 1 4 1 3 3 748 772 59 36 97.011856 thes 1 4 1 3 4 821 772 181 47 96.982803 physique5 1 4 1 3 5 1016 771 85 47 97.021019 they5 1 4 1 3 6 1115 771 130 37 96.888329 desire.5 1 4 1 3 7 1274 771 63 36 96.875648 Fats 1 4 1 3 8 1349 769 76 37 96.875648 that5 1 4 1 3 9 1439 780 96 25 96.921944 once5 1 4 1 3 10 1549 766 148 38 97.011063 created5 1 4 1 3 11 1710 766 172 47 96.549217 personal5 1 4 1 3 12 1896 766 249 47 96.732895 unhappiness4 1 4 1 4 0 506 824 1640 52 -1 5 1 4 1 4 1 506 830 73 36 96.712555 ands 1 4 1 4 2 595 830 121 46 96.656418 posed5 1 4 1 4 3 722 820 20 60 96.892143 a5 1 4 1 4 4 768 829 135 37 96.892143 hazards 1 4 1 4 5 919 835 38 31 97.010315 to5 1 4 1 4 6 973 830 99 36 92.738098 one's5 1 4 1 4 7 1088 829 124 37 96.837830 health5 1 4 1 4 8 1228 840 68 25 96.975044 cans 1 4 1 4 9 1311 838 87 26 96.439087 now5 1 4 1 4 10 1413 825 48 38 96.788284 be5 1 4 1 4 11 1478 825 154 37 96.788284 utilized5 1 4 1 4 12 1649 830 37 31 96.992607 to5 1 4 1 4 13 1704 825 99 36 96.539650 one's5 1 4 1 4 14 1822 824 214 46 90.598763 advantage.5 1 4 1 4 15 2072 831 74 29 95.997169 FAT4 1 4 1 5 0 506 880 1640 54 -1 5 1 4 1 5 1 506 880 222 44 61.806946 BURNERS”5 1 4 1 5 2 746 898 87 35 96.210236 may5 1 4 1 5 3 849 886 85 48 94.578667 helps 1 4 1 5 4 954 886 116 37 97.011154 active5 1 4 1 5 5 1089 885 221 38 96.616127 individuals5 1 4 1 5 6 1329 885 79 36 96.527496 loses 1 4 1 5 7 1426 883 140 47 96.805855 weights 1 4 1 5 8 1583 882 73 36 96.849075 ands 1 4 1 5 9 1676 882 163 36 96.752838 increases 1 4 1 5 10 1856 880 223 47 96.334122 vascularity5 1 4 1 5 11 2095 880 51 47 96.999451 by4 1 4 1 6 0 506 939 1640 52 -1 5 1 4 1 6 1 506 945 207 46 55.387413 inicreasing5 1 4 1 6 2 731 944 60 36 96.480888 thes 1 4 1 6 3 806 943 129 47 96.480888 body's5 1 4 1 6 4 951 943 127 48 96.982170 ability5 1 4 1 6 5 1093 949 38 31 96.934471 to5 1 4 1 6 6 1146 943 95 37 96.686089 burns 1 4 1 6 7 1256 943 52 37 96.686089 fats 1 4 1 6 8 1323 942 58 36 96.755173 for5 1 4 1 6 9 1396 952 149 35 93.041199 energy.5 1 4 1 6 10 1566 969 6 6 91.908531 .5 1 4 1 6 11 1594 969 7 7 91.152390 .5 1 4 1 6 12 1632 969 1 6 86.239006 .5 1 4 1 6 13 1653 939 112 37 96.417992 100%5 1 4 1 6 14 1780 946 194 29 95.196053 NATURAL5 1 4 1 6 15 1988 945 158 29 95.196053 WEIGHT4 1 4 1 7 0 507 1000 567 48 -1 5 1 4 1 7 1 507 1009 94 29 96.517235 LOSS5 1 4 1 7 2 615 1001 192 37 94.844406 SYSTEM. (Exhibit A).

B. LOSES 1 4 2 1 3 794 1066 158 29 96.754906 WEIGHTS 1 4 2 1 4 964 1059 107 36 93.225334 NOW!5 1 4 2 1 5 1076 1049 20 58 79.940887 .5 1 4 2 1 6 1120 1089 7 6 75.736671 .5 1 4 2 1 7 1146 1089 6 6 75.736671 .5 1 4 2 1 8 1171 1056 230 47 96.456726 introducing5 1 4 2 1 9 1418 1062 76 29 95.558456 FATS 1 4 2 1 10 1508 1060 199 37 95.558456 BURNERS,5 1 4 2 1 11 1724 1053 201 36 96.497673 America's5 1 4 2 1 12 1941 1053 133 36 96.811974 choices 1 4 2 1 13 2090 1053 57 36 96.697510 fora 1 4 2 2 0 506 1110 1641 53 -1 5 1 4 2 2 1 506 1116 205 36 96.851051 nutritional5 1 4 2 2 2 722 1116 136 45 95.227348 weights 1 4 2 2 3 869 1116 73 36 95.227348 loss5 1 4 2 2 4 957 1122 153 41 95.117615 support.5 1 4 2 2 5 1139 1116 37 36 95.923248 If5 1 4 2 2 6 1182 1126 93 35 96.939217 yours 1 4 2 2 7 1287 1113 83 48 96.669685 goals 1 4 2 2 8 1383 1113 30 37 96.139435 is5 1 4 2 2 9 1427 1125 21 24 96.139435 a5 1 4 2 2 10 1461 1112 153 43 94.571587 thinner,5 1 4 2 2 11 1628 1123 102 23 96.934601 more5 1 4 2 2 12 1743 1111 181 36 96.975967 attractive5 1 4 2 2 13 1936 1110 112 45 96.835960 body,5 1 4 2 2 14 2064 1110 83 35 96.635948 then4 1 4 2 3 0 507 1170 900 50 -1 5 1 4 2 3 1 507 1173 49 36 96.543694 lets 1 4 2 3 2 569 1180 76 28 96.245316 FATS 1 4 2 3 3 657 1180 184 29 96.245316 BURNERS5 1 4 2 3 4 858 1173 82 36 96.934433 leads 1 4 2 3 5 954 1173 60 36 96.238907 thes 1 4 2 3 6 1028 1173 113 47 87.765961 way. (Exhibit B).

5. Through the means described in paragraph four, and through the use of the trade names Fats 1 5 1 2 8 1385 1354 216 44 95.694633 Burners and Fast5 1 5 1 2 11 1916 1351 228 51 96.760818 Burners, respondent has represented, expressly or by implication, that the Fat Burners products cause weight loss or reduce body fat. 6. Through the means described in paragraph four, and through the use of the trade names Fats 1 5 2 2 8 1385 1633 216 43 96.238007 Burners and Fast5 1 5 2 2 11 1917 1629 228 51 91.728622 Burners, respondent has represented, expressly or by implication, that it possessed and relied upon a reasonable basis that substantiated the representations set forth in paragraph five at the time the representations were made.

7. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representations set forth in paragraph five at the time the representations were made. Therefore, the representation set forth in paragraph six was, and is, false or misleading.

8. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices and the making of false advertisements in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act. Complaint EXHIBIT A ae USh Por SWAISKS - - HIONIYIS i) Ee re I | usnl SWAISAS HISHIHIS ouINuna ~ WAUSIS SOOT LHR TRULEY X04 —se t- Morty EXHIBIT aA “ATUL BURNERS CAFFEINE: FREF WEIGHT LOSS SYSTEM EXHIBIT B O G . «a wo 2 & ae a 8 & = jaa a Anis LOSE WEIGHT NOW! LOSE WEIGHT NOW! w:yay 100 “HATUAAE it} TiATURAL , .

BURNERS BURNERS [mm + ons - CAFFEINE FREE WEIGHT LOSS SYSTEM = = “St 10 Sivatculy FASY 10 SIVALLOLY 50 GAPLETS : a wt . . .

IME Peete Decision and Order 123 F.T.C.

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 which the Bureau of Consumer Protection proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act; and Respondent, its attorneys, 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 of complaint, a statement that the signing of the 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, or that the facts as alleged in such complaint, other than jurisdictional facts, are true, and waivers and other provisions as required by the Commission's Rules; and The Commission having thereafter considered the matter and determined that it had reason to believe that respondent has violated the said 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 described in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent Amerifit, Inc., is a Delaware corporation with its principal office or place of business at 166 Highland Park Drive, Bloomfield, Connecticut.

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 DEFINITIONS For purposes of this order, the following definitions shall apply: AMERIFIT, INC. 1459 1454 Decision and Order 1. Competent5 1 3 1 1 3 914 408 88 42 96.979057 ands 1 3 1 1 4 1015 406 188 44 96.928017 reliable5 1 3 1 1 5 1217 405 219 56 96.705757 scientific5 1 3 1 1 6 1453 402 238 46 92.437828 evidence shall mean tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area that has been conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted by others in the profession to yield accurate and reliable results.

2. Unless otherwise specified, respondent shall mean Amerifit, Inc., a corporation, its successors and assigns, and its officers, agents, representatives and employees. 3. In5 1 3 3 1 3 705 1047 53 27 96.972923 or5 1 3 3 1 4 771 1032 208 56 96.534782 affecting5 1 3 3 1 5 993 1045 242 29 92.964890 commerce shall mean as defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. 44. 4. Thes 1 3 4 1 3 764 1173 85 41 96.360855 Fats 1 3 4 1 4 870 1173 194 41 96.706154 Burners5 1 3 4 1 5 1081 1168 248 58 96.457352 products shall mean products using the terms fats 1 3 4 2 3 711 1240 199 43 41.626873 burners and fast5 1 3 4 2 6 1152 1239 197 44 95.817871 burners in their trade names, including but not limited to, Fat Burners, Fast Burners, Improved Formula Fat Burners, and Extra Strength Fat Burners.

I.

It is ordered, That respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of the Fat Burners products or any other food, drug, or dietary supplement, as food and drug are defined in Section 15 of the Federal Trade Commission Act, in or affecting commerce, shall not make any representation, in any manner, expressly or by implication:

A. That such product can or will cause weight loss; or B. That such product can or will reduce body fat, unless, at the time the representation is made, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation.

Il.

It is further ordered, That respondent, directly or though any partnership, corporation, subsidiary, division or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale or distribution of Fat Burners or any substantially similar product in or affecting commerce, as Decision and Order 123 F.T.C.

commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from employing the name Fats 1 3 1 2 10 1869 484 205 43 96.344315 Burners or any other name that communicates the same or similar meaning for such product; provided, however, that nothing in this order shall prevent the use of the name Fats 1 3 1 5 8 1423 693 192 41 96.708633 Burners5 1 3 1 5 9 1650 689 117 53 96.528572 Diet,5 1 3 1 5 10 1803 690 216 53 96.238358 Exercise,5 1 3 1 5 11 2055 694 83 43 96.961113 anda 1 3 1 6 0 519 759 1620 62 -1 5 1 3 1 6 1 519 766 283 55 96.520035 Supplements 1 3 1 6 2 818 763 249 57 95.595123 System if the material containing the name clearly and prominently contains the following disclosure: THES 1 4 1 1 2 654 957 220 37 96.174736 DIETARY5 1 4 1 1 3 891 954 314 38 96.027145 SUPPLEMENTS 1 4 1 1 4 1221 953 50 36 95.389420 IN5 1 4 1 1 5 1287 952 107 36 95.389420 THIS5 1 4 1 1 6 1414 952 198 36 95.954208 SYSTEMS 1 4 1 1 7 1629 951 42 36 96.680878 IS5 1 4 1 1 8 1689 951 98 36 96.820312 FOR5 1 4 1 1 9 1801 952 337 37 95.943352 NUTRITIONAL4 1 4 1 2 0 516 1008 1622 44 -1 5 1 4 1 2 1 516 1016 94 36 95.581467 USES 1 4 1 2 2 623 1015 136 37 95.581467 ONLY5 1 4 1 2 3 770 1015 106 36 96.108078 ANDS 1 4 1 2 4 889 1012 122 37 95.972313 DOES5 1 4 1 2 5 1022 1011 101 36 96.241417 NOT5 1 4 1 2 6 1134 1009 306 38 96.241417 CONTRIBUTES 1 4 1 2 7 1452 1009 65 36 96.584930 TO5 1 4 1 2 8 1529 1008 198 36 96.498825 WEIGHTS 1 4 1 2 9 1738 1009 116 35 96.664429 LOSS5 1 4 1 2 10 1868 1009 68 35 96.618042 OR5 1 4 1 2 11 1946 1009 117 37 96.457855 LOSS5 1 4 1 2 12 2076 1011 62 35 95.887840 OF2 1 5 0 0 0 517 1072 281 38 -1 3 1 5 1 0 0 517 1072 281 38 -1 4 1 5 1 1 0 517 1072 281 38 -1 5 1 5 1 1 1 517 1074 143 36 96.781738 BODY5 1 5 1 1 2 674 1072 124 37 95.682838 FAT. For purposes of this order, clearly5 1 6 1 1 7 1374 1182 85 44 96.279518 ands 1 6 1 1 8 1476 1182 320 56 96.279518 prominently shall mean as follows:

A. In a television or video advertisement less than fifteen (15) minutes in length, the disclosure shall be presented simultaneously in both the audio and visual portions of the advertisement, accompanying the first presentation of the name. When the first presentation of the name appears in the audio portion of the advertisement, the disclosure shall immediately follow the name. When the first presentation of the name appears in the visual portion of the advertisement, the disclosure shall appear immediately adjacent to the name. The audio disclosure shall be delivered in a volume and cadence sufficient for an ordinary consumer to hear and comprehend it. The video disclosure shall be of such a size and shade, and shall appear on the screen for a duration, sufficient for an ordinary consumer to read and comprehend it;

B. In a video advertisement fifteen (15) minutes in length or longer, the disclosure shall be presented simultaneously in both the audio and visual portions of the advertisement, accompanying the first presentation of the name and immediately before each presentation of ordering instructions for the product. When the name that triggers the disclosure appears in the visual portion of the advertisement, the disclosure shall appear immediately adjacent to the name. The audio disclosure shall be delivered in a volume and cadence sufficient for an ordinary consumer to hear and comprehend it. The video disclosure shall be of a size and shade, and shall appear on the screen for a duration, sufficient for an ordinary consumer to read and comprehend it. Provided that, for the purposes of this provision, the oral or visual presentation of a telephone number or AMERIFIT, INC. 1461 1454 Decision and Order address for viewers to contact to place an order for the product in conjunction with the name shall be deemed a presentation of ordering instructions so as to require the presentation of the disclosure provided herein;

C. In a radio advertisement, the disclosure shall immediately follow the first presentation of the name and shall be delivered in a volume and cadence sufficient for an ordinary consumer to hear and comprehend it;

D. In a print advertisement, the disclosure shall be in close proximity to the largest presentation of the name, in a prominent type thickness and in a type size no smaller than twelve (12) point type. The disclosure shall be of a color or shade that readily contrasts with the background of the advertisement; and E. On a product label, the disclosure shall be on the front panel of the label in immediate proximity to the largest presentation of the name, in a prominent type thickness and in a type size no smaller than twelve (12) point type. The disclosure shall be of a color or shade that readily contrasts with the background of the label. Nothing contrary to, inconsistent with, or in mitigation of the aboverequired language shall be used in any advertising or labeling. IIL.

It is further ordered, That respondent shall pay to the Federal Trade Commission, by cashier's check or certified check made payable to the Federal Trade Commission and delivered to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C., the sum of one hundred thousand dollars ($100,000). Respondent shall make this payment on or before the thirtieth day following the date of issuance of this order. In the event of any default of any obligation to make payment under this section, interest, computed pursuant to 28 U.S.C. 1961(a), shall accrue from the date of default to the date of payment.

IV.

Nothing in this order shall prohibit respondent from making any representation for any drug that is permitted in labeling for such drug under any tentative final or final standard promulgated by the Food Decision and Order 123 F.T.C.

and Drug Administration, or under any new drug application approved by the Food and Drug Administration. V.

Nothing in this order shall prohibit respondent from making any representation for any product that is specifically permitted in labeling for such product by regulations promulgated by the Food and Drug Administration pursuant to the Nutritional Labeling and Education Act of 1990.

VI.

_ It is further ordered, That respondent shall, for five (5) years after the last date of dissemination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commission for inspection and copying:

A. All advertisements, labeling, and promotional. materials containing the representation;

B. All materials that were relied upon in disseminating the representation; and C. All tests, reports, studies, surveys, demonstrations, or other evidence in their possession or control that contradict, qualify, or call into question the representation, or the basis relied upon for the representation, including complaints and other communications with consumers or with governmental or consumer protection organizations.

VIL.

It is further ordered, That, for a period of five years commencing with the date of issuance of this order, respondent shall deliver a copy of this order to all current and future principals, officers, directors, and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt of this order. Respondent shall deliver this order to current personnel within thirty (30) days after the date of service of this order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities.

AMERIFIT, INC. 1463 1454 Decision and Order VII.

It is further ordered, That respondent shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including but not limited to a dissolution, assignment, sale, merger, or other action that would result in the emergence of a successor corporation; the creation or dissolution of a subsidiary, parent, or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C.

IX.

It is further ordered, That respondent shall, within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.

X.

This order will terminate on June 16, 2017, or twenty years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of: A. Any Part in this order that terminates in less than twenty (20) years;

B. This order's application to any respondent that is not named as a defendant in such complaint; and Decision and Order 123 F.T.C.

C. This order if such complaint is filed after the order has terminated pursuant to this Part.

Provided, further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

2943174 CANADA INC., ET AL. 1465 1465 Complaint

← 123 F.T.C. 1454 · 123 F.T.C. 1465 →