UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
COMMISSIONERS:
Robert Pitofsky, Chairman
Mary L. Azcuenaga
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
In the Matter of
VENEGAS INC., a corporation, and ANGEL VENEGAS, individually and as an
officer and director of said corporation.
DOCKET NO. C-3781
DECISION AND ORDER
The Federal Trade Commission having initiated an investigation of certain acts and
practices of the respondents named in the caption hereof, and the respondents having been
furnished thereafter with a copy of a draft of complaint which the New York Regional
Office proposed to present to the Commission for its consideration and which, if issued by
the Commission, would charge respondents with violation of the Federal Trade Commission
Act; and
The respondents, their attorney, and counsel for the Commission having thereafter
executed an agreement containing a consent order, an admission by the respondents 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 respondents 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 having determined that it
had reason to believe that the respondents have 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 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 Venegas Inc. is a corporation organized, existing and doing business
under and by virtue of the laws of the State of New York, with its office and principal
place of business located at 500 Grand Street, Brooklyn, New York 11211.
Respondent Angel Venegas is an officer and director of the corporate respondent. Mr.
Venegas, individually or in concert with others, formulates, directs, and controls the
policies, acts, and practices of said corporation, and his business address is the same as
that of the said corporate respondent.
2. The Federal Trade Commission has jurisdiction of the subject matter of this
proceeding and of the respondents, and the proceeding is in the public interest.
ORDER
DEFINITIONS
For purposes of this order, the following definitions shall apply:
- "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.
- Unless otherwise specified, "respondents" shall mean Venegas Inc., a
corporation, its successors and assigns and its officers; Angel Venegas, individually and
as an officer of the corporation; and each of the aboves agents, representatives and
employees.
- "Commerce" shall mean as defined in Section 4 of the Federal Trade Commission
Act, 15 U.S.C. § 44.
I.
IT IS ORDERED that respondents, 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 Alen or any other product in or
affecting commerce, shall not make any representation, in any manner, expressly or by
implication, that such product:
A. increases life expectancy;
B. delays the aging process;
C. eliminates anemia;
D. increases the immune systems defenses;
E. increases memory or scholastic performance;
F. helps diabetics naturally produce insulin;
G. reduces the pain of rheumatism or migraines;
H. lowers blood pressure;
I. helps heal ulcers;
J. increases muscle bulk;
K. controls addictions to excess fat and sweets; or
L. protects against infections and increases and enhances the healing process;
unless, at the time the representation is made, respondents possess and rely upon
competent and reliable scientific evidence that substantiates the representation.
II.
IT IS FURTHER ORDERED that respondents, directly or through any corporation,
partnership, subsidiary, division, or other device, in connection with the manufacturing,
labeling, advertising, promotion, offering for sale, sale, or distribution of Alen or any
food, dietary supplement, or drug, 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, about the benefits,
performance, or efficacy of such product, unless, at the time the representation is made,
respondents possess and rely upon competent and reliable scientific evidence that
substantiates the representation.
III.
Nothing in this order shall prohibit respondents from making any representation for any
product that is specifically permitted in the labeling for such product by regulations
promulgated by the Food and Drug Administration pursuant to the Nutrition Labeling and
Education Act of 1990.
IV.
Nothing in this order shall prohibit respondents from making any representation for any
drug that is permitted in the labeling for such drug under any tentative final or final
standard promulgated by the Food and Drug Administration, or under any new drug
application approved by the Food and Drug Administration.
V.
IT IS FURTHER ORDERED that respondent Venegas Inc., and its successors and assigns, and
respondent Angel Venegas 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 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.
VI.
IT IS FURTHER ORDERED that respondent Venegas Inc., and its successors and assigns, and
respondent Angel Venegas, 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 the order. Respondents 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.
VII.
IT IS FURTHER ORDERED that respondent Venegas Inc., and its successors and assigns
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. 20580.
VIII.
IT IS FURTHER ORDERED that respondent Angel Venegas, for a period of five (5) years
after the date of issuance of this order, shall notify the Commission of the
discontinuance of his current business or employment, or of his affiliation with any new
business or employment. The notice shall include respondent's new business address and
telephone number and a description of the nature of the business or employment and his
duties and responsibilities. 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. 20580.
IX.
IT IS FURTHER ORDERED that respondent Venegas Inc., and its successors and assigns, and
respondent Angel Venegas 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 they
have complied with this order.
X.
This order will terminate on January 23, 2018, or twenty (20) 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
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.
By the Commission, Commissioner Thompson and Commissioner Swindle not participating.
Donald S. Clark
Secretary
ISSUED: January 23, 1998
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