NOTE: Here is where you can find advertising law information based on news briefs that appeared in past issues of Advertising Compliance Service, "Your Single Essential Advertising Law Resource," during the month of October 1998.
FTC's final order against Fair Allocation System, Inc. will bar this association of 25 car dealerships in five Northwest states from boycotting or threatening to boycott car manufacturers or consumers. The order settles charges that the dealers had collectively threatened to boycott Chrysler Corporation and Chrysler owners seeking warranty service unless Chrysler modified its distribution system. In particular, the dealers sought restrictions on the number of vehicles available to competing dealers offering low prices and marketing on the Internet. (Note: This final order shows the increasing willingness of FTC to examine the Internet and marketing in its rulings.)
NOTE: A consent agreement is for settlement purposes only and does not constitute an admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of $11,000.
(Fair Allocation System, Inc., FTC File No. 971 0065, October 30, 1998; materials relating to this FTC matter are available on the Internet at FTC's World Wide Web site at: http://www.ftc.gov.)
FDA HAS NEW COMMISSIONER
On October 21, 1998, the U.S. Senate overwhelmingly voted to confirm Dr. Jane E. Henney to be the next Commissioner of the Food and Drug Administration (FDA). In his statement following the vote, President Clinton said: "I am extremely pleased that today the Senate, with strong bipartisan support, overwhelmingly voted to confirm Dr. Jane E. Henney to be the next Commissioner of the Food and Drug Administration. I am confident that as the first woman and first oncologist to be confirmed as FDA Commissioner, Dr. Henney will live up to the trust the Senate has placed in her."
(See also: Statement By The President, October 21, 1998.)
FDA announced that it will consider giving citrus juice manufacturers who agree to meet specific conditions towards ensuring the safety of their products, up to an additional eight months to comply with new requirements for carrying warning labels on packaged fresh citrus juices.
Earlier this summer, FDA established a requirement that packaged juice products that are not pasteurized or otherwise processed to prevent, reduce or eliminate illness-causing microbes (pathogens) must carry a warning statement to inform consumers of the risk of food borne illness to children, the elderly and persons with weakened immune systems. The effective date for displaying the warning was September 8, 1998, for apple juice and cider, and will be November 5, 1998, for all other juices.
(FDA Talk Paper, T98-77, October 23, 1998.)
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