London International Group, Inc

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LONDON INTERNATIONAL GROUP, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLA TIOJ\ OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3800. Complaint, April 1998--Decision, April, 1998 This consent order prohibits, among other things, the Georgia based condom manufactuer from making any comparative ciaims about the strength, efficacy or risk of breakage of any condom in the future, unless the respondent possesses and relies upon competent and reliable scientific evidence to substantiate the claims.

Appearances For the Commission: Linda Badger, Kerry Brien and Jeffrey Klurfeld.

For the respondent: Wayne H. Matelski, Arent, Fox, Kintner Plotkin Kahn Washington, D.

COMPLAINT The Federal Trade Commission, having reason to believe that London International Group, Inc., a corporation, 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 London International Group, Inc. is a New Jersey corporation with its principal offce or place of business at 3585 Engineering Drive, Norcross, Georgia.

2. Respondent has manufactured, advertised, labeled, offered for sale, sold, and distributed products to the public, including "Ramses brand condoms. Ramses brand condoms are "devices " within the meaning of Sections 12 and 15 ofthe 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 for Ramses brand condoms, including but not necessarily limited to the attached Exhibits A through C. These advertisements contain the following statements and depictions: A. "it won t give you X-ray vision or bionic strength. but it wil make you a hero tonight.

LONDON INTERNATIONAL GROUP, INC. 727 726 Complaint Ramses* gives you the sensitivity and natural feeling you want. and because s 30% stronger than the leading brand, it performs like a champ. so you can too. RamsesCI. a trusted companion.

*RamsesQD regular strength condoms.

(The advertisement depicts an individual condom wrapper labeled: RAMSES CONDOM") (Exhibit A).

B. "WOMEN PREFER THE STRONG SENSITIVE TYPE. Ramses provides both strength and sensitivity with that exquisite natural feel. And 30% more strength* than the leading brand. Now all you need to do is learn to cry. Ramses. A Trusted Companion.

*Ramses regular strength condoms.

(The advertisement depicts an individual condom wrapper labeled: "durex RAMSES I PREMIUM CONDOM LATEX") (Exhibit B). C. "IT'S TRUE. WOMEN WANT WHAT'S IN YOUR WALLET. It' s not the money they re after. It's the sensitivity. The natural feel. All that added strength* (30% more than the leading brand). An empty wallet can be a beautiful thing. Ramscs. A Trusted Companion.

*Ramses regular strength condoms.

(The advertisement depicts an individual condom wrapper labeled: "durex RAMSES I PREMIUM CONDOM LA TEX"J (Exhibit C). 5. Through the means described in paragraph four, respondent has represented, expressly or by implication, that: A. Ramses brand condoms are thirty percent stronger than the leading brand.

B. Ramses brand condoms break thirty percent less often than the leading brand.

6. Through the means described in paragraph four, 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. Respondent submitted inadequate data to substantiate its claim that Ramses brand condoms are thirty percent stronger than other condoms. Respondent also submitted inadequate substantiation for the claim that Ramses brand condoms break thirty percent less often than other condoms. 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 125 FTC. EXHIBIT A JD R.....e.

!!'Ve. YO'" t.e ......II;I_l;y .:nd ...It.....1 If........ yo.. -..It. ...d .......... 11t" . 80"" .t,ro"' ep It..... Ith.. I..."'I.. ......,01. lit per'-"'''''. ...... .. ..h. "p. 100 yo.. .... too. t. n'P..Iot1. LONDON INTERNA TJONAL GROUP, INC. 729 726 Complaint EXHIBIT B ., .

Complaint 125 F.T.C. EXHIBIT C LONDON INTERNATIONAL GROUP, INC. 731 726 Decision and Order DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished thereafter with a copy of a draft of complaint which the San Francisco Regional Office proposed to present to the Commssion for its consideration and which, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act; and The respondent and counsel for the Commssion having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the aforesaid draft of 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, or that the facts as alleged in such complaint, other than jurisdictional facts, are true and waivers and other provisions as required by the Commssion 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 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, and having duly considered the comments filed thereafter by interested persons pursuant to Section 2. 34 of its Rules, 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:

1. Respondent London International Group, Inc. , is a corporation organized, existing, and doing business under and by virtue of the laws of the State of New Jersey, with its office and principal place of business located at 3585 Engineering Drive, in the City of Norcross State of Georgia.

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

ORDER DEFINITONS For purposes of this order, the following definitions, shall apply: Decision and Order 125 FTC. 1. Competent and reliable scientific 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 in the profession to yield accurate and reliable results.

respondent" shall mean London 2. Unless otherwise specified International Group, Inc" a corporation, its successors and assigns and its officers, agents, representatives and employees. 3. "In or affecting commerce shall mean as defined in Section 4 c. 44.of the Federal Trade Commssion Act, 15 U. 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 "Ramses " brand condoms or any other condom in or affecting commerce, shall not make any representation, in any manner, expressly or by implication, about: A. The comparative or quantifiable strength of any condom; B. The comparative or quantifiable risk of breakage of any condom; or C. The comparative or quantifiable efficacy of any condom unless, at the time it is made, respondent possesses and relies upon substantiates thecompetent and reliable scientific evidence that representation.

Provided, that respondent shall not be deemed in violation of Part I of this order for any representation if the Food and Drug Administration has approved such representation pursuant to 21 c. 352 or 360. Provided, however, that clearance of a report submitted under 21 U. c. 360(k) ("pre-market notification ) shall not be deemed an approval of a representation under this paragraph unless the Food and Drug Administration clears such representation based on its review and evaluation of substantiation submitted with such report.

II.

It is further ordered That respondent London International Group, Inc. and its successors and assigns 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: LONDON INTERNATIONAL GROUP, INC. 733 726 Decision and Order A. All advertisements 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.

It is further ordered That respondent London International Group, Inc. and its successors and assigns 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. 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. IV.

It is further ordered That respondent London International Group, Inc. and its successors and assigns shall notify the Commssion at least thirty (30) days prior to any change in the corporation(s) 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 Commssion 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 Commssion, Washington, D.

Decision and Order 125 F.T. /t is further ordered That respondent London International Group, Inc. and its successors and assigns shall, within sixty (60) days after the date of service of this order, and at such other times as the Federal Trade Commssion may require, fie with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order. VI.

This order wil termnate on April 7, 2018, or twenty (20) years from the most recent date that the United States or the Federal Trade Commssion fies 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 C. This order if such complaint is filed after the order has termnated 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 wil not terminate between the date such complaint is filed and the later ofthe deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

GUINNESS PLC, ET AL. 735 735 Complaint