[Federal Register Volume 85, Number 137 (Thursday, July 16, 2020)]
[Notices]
[Pages 43238-43239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15316]
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FEDERAL TRADE COMMISSION
[File No. 202 3110]
Marc Ching; Analysis To Aid Public Comment
AGENCY: Federal Trade Commission.
ACTION: Proposed consent agreement; request for comment.
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SUMMARY: The consent agreement in this matter settles alleged
violations of federal law prohibiting unfair or deceptive acts or
practices. The attached Analysis to Aid Public Comment describes both
the allegations in the complaint and the terms of the consent order--
embodied in the consent agreement--that would settle these allegations.
DATES: Comments must be received on or before August 17, 2020.
ADDRESSES: Interested parties may file comments online or on paper by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write ``Marc Ching; File No.
202 3110'' on your comment, and file your comment online at https://www.regulations.gov by following the instructions on the web-based
form. If you prefer to file your comment on paper, mail your comment to
the following address: Federal Trade Commission, Office of the
Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex D),
Washington, DC 20580, or deliver your comment to the following address:
Federal Trade Commission, Office of the Secretary, Constitution Center,
400 7th Street SW, 5th Floor, Suite 5610 (Annex D), Washington, DC
20024.
FOR FURTHER INFORMATION CONTACT: Tawana E. Davis (202-326-2755), Bureau
of Consumer Protection, Federal Trade Commission, 600 Pennsylvania
Avenue NW, Washington, DC 20580.
SUPPLEMENTARY INFORMATION: Pursuant to Section 6(f) of the Federal
Trade Commission Act, 15 U.S.C. 46(f), and FTC Rule 2.34, 16 CFR 2.34,
notice is hereby given that the above-captioned consent agreement
containing a consent order to cease and desist, having been filed with
and accepted, subject to final approval, by the Commission, has been
placed on the public record for a period of thirty (30) days. The
following Analysis to Aid Public Comment describes the terms of the
consent agreement and the allegations in the complaint. An electronic
copy of the full text of the consent agreement package can be obtained
from the FTC website (for July 10, 2020), at this web address: https://www.ftc.gov/news-events/commission-actions.
You can file a comment online or on paper. For the Commission to
consider your comment, we must receive it on or before August 17, 2020.
Write ``Marc Ching; File No. 202 3110'' on your comment. Your comment--
including your name and your state--will be placed on the public record
of this proceeding, including, to the extent practicable, on the
https://www.regulations.gov website.
Due to the public health emergency in response to the COVID-19
outbreak and the agency's heightened security screening, postal mail
addressed to the Commission will be subject to delay. We strongly
encourage you to submit your comments online through the https://www.regulations.gov website.
If you prefer to file your comment on paper, write ``Marc Ching;
File No. 202 3110'' on your comment and on the envelope and mail your
comment to the following address: Federal Trade Commission, Office of
the Secretary, 600 Pennsylvania Avenue NW, Suite CC-5610 (Annex D),
Washington, DC 20580. If possible, submit your paper comment to the
Commission by overnight service.
Because your comment will be placed on the publicly accessible
website at https://www.regulations.gov, you are solely responsible for
making sure your comment does not include any sensitive or confidential
information. In particular, your comment should not include any
sensitive personal information, such as your or anyone else's Social
Security number; date of birth; driver's license number or other state
identification number, or foreign country equivalent; passport number;
financial account number; or credit or debit card number. You are also
solely responsible for making sure your comment does not include
sensitive health information, such as medical records or other
individually identifiable health information. In addition, your comment
should not include any ``trade secret or any commercial or financial
information which . . . is privileged or confidential''--as provided by
Section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2),
16 CFR 4.10(a)(2) including in particular competitively sensitive
information such as costs, sales statistics, inventories, formulas,
patterns, devices, manufacturing processes, or customer names.
Comments containing material for which confidential treatment is
requested must be filed in paper form, must be clearly labeled
``Confidential,'' and must comply with FTC Rule 4.9(c). In particular,
the written request for confidential treatment that accompanies the
comment must include the factual and legal basis for the request, and
must identify the specific portions of the comment to be withheld from
the public record. See FTC Rule 4.9(c). Your comment will be kept
confidential only if the General Counsel grants your request in
accordance with the law and the public interest. Once your comment has
been posted on the public FTC website--as legally required by FTC Rule
4.9(b)--we cannot redact or remove your comment from the FTC website,
unless you submit a confidentiality request that meets the requirements
for such treatment under FTC Rule 4.9(c), and the General Counsel
grants that request.
Visit the FTC website at http://www.ftc.gov to read this Notice and
the news release describing the proposed settlement. The FTC Act and
other laws that the Commission administers permit the collection of
public comments to consider and use in this proceeding, as appropriate.
The Commission will consider all timely and responsive public comments
that it receives on or before August 17, 2020. For information on the
Commission's privacy policy, including routine uses permitted by the
Privacy Act, see https://www.ftc.gov/site-information/privacy-policy.
Analysis of Proposed Consent Order To Aid Public Comment
The Federal Trade Commission (``FTC'' or ``Commission'') has
accepted, subject to final approval, an agreement containing a consent
order with Marc Ching, individually and doing business as Whole Leaf
Organics (``respondent''). The proposed consent order (``order'') has
been placed on the public record for 30 days for receipt of comments by
interested persons. Comments received during this period will become
part of the public record. After 30 days, the Commission will again
review the order and the comments received, and will decide whether it
should withdraw the order or make it final.
[[Page 43239]]
This matter involves the respondent's advertising for Thrive, CBD-
EX, CBD-RX, and CBD-Max. The complaint alleges that respondent violated
Sections 5(a) and 12 of the FTC Act by disseminating false and
unsubstantiated advertisements claiming that: (1) Thrive treats,
prevents, or reduces the risk of COVID-19; (2) CBD-EX, CBD, RX, and
CBD-Max treat cancer; (3) Thrive is clinically or scientifically proven
to treat, prevent, or reduce the risk of COVID-19; and (4) CBD-EX, CBD,
RX, and CBD-Max are clinically or scientifically proven to treat
cancer.
The order includes injunctive relief that prohibits these alleged
violations and fences in similar and related conduct. The product
coverage would apply to any dietary supplement, drug, or food the
respondent sells, markets, promotes, or advertises.
Part I prohibits respondent from making any representation about
the efficacy of any covered product, including that such product will:
(1) Treat, prevent or reduce the risk of COVID-19; (2) treat cancer; or
(3) cure, mitigate or treat any disease in humans, unless the
representation is non-misleading, including that, at the time such
representation is made, he possesses and relies upon competent and
reliable scientific evidence that substantiates that the representation
is true. For purposes of this Provision, ``competent and reliable
scientific evidence'' means human clinical testing of the covered
product or of an essentially equivalent product that is sufficient in
quality and quantity, based on standards generally accepted by experts
in the relevant disease, condition, or function to which the
representation relates, when considered in light of the entire body of
relevant and reliable scientific evidence, to substantiate that the
representation is true.
Part II prohibits respondent from making any representation, other
than representations covered under the Provision titled Prohibited
Disease Claims, expressly or by implication, about the health benefits,
performance, or efficacy of any covered product, unless the
representation is non-misleading, including that, at the time such
representation is made, he possesses and relies upon competent and
reliable scientific evidence that is sufficient in quality and quantity
based on standards generally accepted by experts in the relevant
disease, condition, or function to which the representation relates,
when considered in light of the entire body of relevant and reliable
scientific evidence, to substantiate that the representation is true.
For purposes of this Provision, ``competent and reliable scientific
evidence'' means tests, analyses, research, or studies that (1) have
been conducted and evaluated in an objective manner by experts in the
relevant disease, condition, or function to which the representation
relates; (2) that are generally accepted by such experts to yield
accurate and reliable results; and (3) that are randomized, double-
blind, and placebo-controlled human clinical testing of the covered
product, or of an essentially equivalent product, when such experts
would generally require such human clinical testing to substantiate
that the representation is true.
Part III requires that with regard to any human clinical test or
study (``test'') upon which the respondent relies to substantiate any
claim covered by the order, the respondent must secure and preserve all
underlying or supporting data and documents generally accepted by
experts in the field as relevant to an assessment of a test.
Part IV prohibits respondent from misrepresenting the existence,
contents, validity, results, conclusions, or interpretations of any
test, study, or other research or that any benefit of any covered
product is scientifically or clinically proven. Part V provides
respondent a safe harbor for making claims approved by the Food and
Drug Administration (``FDA'').
Part VI requires respondent to send notices to consumers who
purchased Thrive, CBD-EX, CBD-RX, and CBD-Max informing them about the
settlement. Part VII requires respondent to send notices to resellers
and retailers informing them about the settlement.
Part VIII requires respondent to submit an acknowledgement of
receipt of the order, to serve the order on certain individuals,
including all officers or directors of any business respondent controls
and employees having managerial responsibilities for conduct related to
the subject matter of the order, and to obtain acknowledgements from
each individual or entity to which respondent has delivered a copy of
the order.
Part IX requires respondent to file compliance reports with the
Commission, and to notify the Commission of bankruptcy filings or
changes in corporate structure that might affect compliance
obligations. Part X contains recordkeeping requirements for accounting
records, personnel records, consumer correspondence, advertising and
marketing materials, and claim substantiation, as well as all records
necessary to demonstrate compliance or non-compliance with the order.
Part XI contains other requirements related to the Commission's
monitoring of the respondent's order compliance. Part XII provides the
effective dates of the order, including that, with exceptions, the
order will terminate in 20 years.
The purpose of this analysis is to facilitate public comment on the
order, and it is not intended to constitute an official interpretation
of the complaint or order, or to modify the order's terms in any way.
By direction of the Commission, Commissioner Chopra dissenting,
Commissioner Slaughter not participating.
April J. Tabor,
Secretary.
[FR Doc. 2020-15316 Filed 7-15-20; 8:45 am]
BILLING CODE 6750-01-P