FTC Challenges Deal Between Enterprise Products Partners and TEPPCO
To Restore Competition, TEPPCO Must Sell Natural Gas Liquids Storage Assets in Mont Belvieu, Texas
The Federal Trade Commission today announced a law enforcement action challenging a 2005 acquisition that combined the natural gas liquids (NGL) storage businesses of Enterprise Product Partners, L.P. and TEPPCO Partners, L.P. under common ownership. The FTC’s complaint alleges that the transaction likely would result in higher prices and service degradations by reducing the number of commercial salt dome NGL storage providers in Mont Belvieu, Texas, from four to three.
In settling the Commission’s charges, TEPPCO is required to sell its interest in an NGL storage facility and associated assets to a Commission-approved buyer no later than December 31, 2006. Both of the NGL storage facilities involved in the transaction, which are operated by TEPPCO Partners, L.P. and Enterprise Products Partners, L.P., ultimately are owned and controlled by Dan L. Duncan. Read more
FDA Statement on Tenth Circuit Ruling to Uphold FDA Decision Banning Dietary Supplements Containing Ephedrine Alkaloids
Background: On Aug. 17, the U.S. Court of Appeals for the Tenth Circuit in Denver upheld the Food and Drug Administration's (FDA) final rule declaring all dietary supplements containing ephedrine alkaloids adulterated, and therefore illegal for marketing in the United States, reversing a decision by the District Court of Utah.
The Tenth Circuit Court of Appeals' ruling demonstrates the soundness of FDA's decision to ban dietary supplements containing ephedrine alkaloids, consistent with the Dietary Supplement Health and Education Act (DSHEA) of 1994. The Tenth Circuit Court of Appeals also found that Congress clearly required FDA to conduct a risk-benefit analysis under DSHEA.
FDA conducted an exhaustive and highly resource-intensive evaluation of the relevant scientific data evidence on ephedrine alkaloids before issuing its final rule, which became effective in 2004. The court found that the 133,000-page administrative record compiled by FDA supports the agency's findings that dietary supplements containing ephedrine alkaloids pose an unreasonable risk of illness or injury to users, especially those suffering from heart disease and high blood pressure. Read more
FDA Orders Donor Referral Services and Philip Guyett to Cease Manufacturing Human Cells
The U.S. Food and Drug Administration (FDA) today ordered Donor Referral Services (DRS), a human tissue-recovery firm, of Raleigh, NC, and its owner, Philip Guyett, to immediately cease all manufacturing operations, and to retain human cells, tissues, and cellular and tissue-based products (HCT/Ps) after an inspection found serious deficiencies in its manufacturing practices, including those governing donor screening and record keeping.
The order to cease manufacturing and retain HCT/Ps requires DRS and Philip Guyett to immediately suspend any and all manufacturing steps, including but not limited to the recovery and shipment of HCT/Ps. FDA's inspection identified serious violations of the regulations, including the failure to establish and maintain procedures for manufacturing steps performed by DRS. In addition to the above stated violations, FDA also found several instances where records provided by DRS to another HCT/P establishment were at variance with the official death certificates FDA had obtained from the state where the death occurred. Read more
FDA Notifies Consumers of Restitution Program for Purchases of Lane Labs Products
The Food and Drug Administration (FDA) is notifying consumers of a restitution (refund) program for purchasers of three of Lane Labs-USA, Inc.'s products. The products are BeneFin, MGN-3 and SkinAnswer. Consumers who purchased those products between September 22, 1999 and July 12, 2004 are eligible for a partial refund of the purchase price and any shipping and handling costs.
A federal District Court in Newark, New Jersey has ruled that Lane Labs marketed BeneFin, MGN-3 and SkinAnswer as treatments for cancer, HIV, and skin cancer without FDA approval. See http://www.fda.gov/bbs/topics/news/2004/NEW01086.html . The Court ordered Lane Labs to pay restitution to persons who purchased the products between September 22, 1999 and July 12, 2004. The Court also appointed Newark, New Jersey attorney Donald A. Robinson as Special Master to oversee the restitution process. Gilardi & Co., LLC has been retained to assist with the restitution process. Read more
Dollar Tree Stores 6 Foot Power Xtension Cord Recall
Name of Product: 6-foot Power Xtension
Units: About 600,000
Importer: Greenbrier International Inc., of Chesapeake, Va.
Hazard: The counterfeit extension cords could have undersized wire and substandard insulation, which can cause overheating, resulting in a possible shock hazard.
Incidents/Injuries: None reported. Read more
Quiksilver and Roxy Girl Lounge Pants Recall
Name of Product: Quiksilver and Roxy Girl lounge pants
Units: About 48,000
Distributors: Quiksilver Inc., of Huntington Beach, Calif.
Hazard: These lounge pants fail to meet the children’s sleepwear flammability standards, posing a risk of burn injury to children, due to the possible ignition of the garment. These garments were not labeled or marketed as sleepwear, but because they are children’s loungewear, they must meet the children’s sleepwear flammability standards.
Accidents/Injuries: None reported. Read more
JC Penney Electronic Motion Shade Lamp Recall
Name of Product: Crazy Daisy 3-in-1 Electronic Motion Shade Lamps
Units: About 3,000
Importer: J.C. Penney Corporation Inc., of Plano, Texas
Hazard: The lamp’s electrical circuit board can spark and overheat due to an electrical problem, posing a fire hazard to consumers.
Incidents/Injuries: J.C. Penney has received one report of the electric circuit board overheating and melting the wires in a lamp. No injuries have been reported. Read more
Spencer Gifts ElectroPlasma Lamp Recall
Name of Product: Mars Lightning ElectroPlasma Lamps
Units: About 1,500
Retailer: Spencer Gifts LLC, of Egg Harbor Township, N.J.
Hazard: Arcing between an object and the removable cover of the lamp can pose a fire hazard.
Incidents/Injuries: Spencer Gifts has experienced two fire incidents at two of their stores. One of these fires caused fire, smoke, and water damage. Read more
Repeat Offenders Banned From Claiming Products Treat or Cure Diseases
August 14, 2006 by Bill
Filed under Scams & Frauds
Most Recent Claim: Pill Would Prevent, Treat, and Cure Diabetes
An operation selling Chinese herbal supplements is banned from claiming its products treat or cure diseases, to settle Federal Trade Commission charges it violated a previous court order. The FTC alleged the sellers of Dia-Cope, a pill claimed to prevent, treat, and cure diabetes, violated the order by misrepresenting the health benefits of their product and misrepresenting that clinical trials proved their claims. The defendants will give up their ill-gotten gains – all of the assets they received from the sale of Dia-Cope.
The defendants originally sold “Sagee,” a Chinese herbal supplement that they claimed could improve memory and concentration, repair damaged brain cells, slow the aging of the brain, increase the learning ability of people with mental handicaps, and treat various diseases and conditions related to brain function, including Alzheimer’s disease, senile dementia, schizophrenia, autism, cerebral hemorrhage, stroke, epilepsy, and Parkinson’s disease. They advertised Sagee mainly in Chinese-language media; some ads also appeared in Vietnamese and English. The supplements were sold by distributors on the Internet and in some stores. Read more
Court Order Shuts Door on Advance-Fee Credit Card Fraudsters
August 14, 2006 by Bill
Filed under Scams & Frauds
Under the terms of a U.S. district court judgment and order announced today, two defendants in an FTC cross-border telemarketing fraud case have been barred from engaging in deceptive marketing in the future and will pay $15,000 for consumer redress. The court action closes the case against Mishele Wells and her company, Simax Corporation, which allegedly targeted U.S. consumers with no credit or poor credit histories with promises of advance-fee credit cards that were never provided. The FTC brought the case in November 2004 as part of a major multi-jurisdictional cross-border fraud law enforcement initiative.
The FTC’s Complaint: Coordinated closely with U.S. and Canadian law enforcers, including members of the Toronto Strategic Partnership, the FTC’s complaint alleged that three individuals and their companies falsely claimed that consumers who paid a fee ranging from $159 to $236 would be guaranteed a low-interest rate, high-credit limit, and no-annual-fee MasterCard or Visa card. The Commission charged that since August 1999, the defendants had operated boiler rooms in Toronto, targeting U.S. consumers with no credit or poor credit histories. After paying for the promised cards, however, consumers did not receive them. Instead, they got packages containing coupons and discounts for travel, recreation, automobile services, medical plans, satellite service, and cellular telephones. Read more