82 FR 32820 - ICP Construction Inc.; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

Federal Register Volume 82, Issue 136 (July 18, 2017)

Page Range		32820-32822
FR Document		2017-14974

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.

Federal Register, Volume 82 Issue 136 (Tuesday, July 18, 2017)

[Federal Register Volume 82, Number 136 (Tuesday, July 18, 2017)]
[Notices]
[Pages 32820-32822]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-14974]

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FEDERAL TRADE COMMISSION

[File No. 162 3081]

ICP Construction Inc.; Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

ACTION: Proposed consent agreement.

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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 10, 2017.

ADDRESSES: Interested parties may file a comment online or on paper, by
following the instructions in the Request for Comment part of the
SUPPLEMENTARY INFORMATION section below. Write: ``In the Matter of ICP
Construction Inc., File No. 162-3081'' on your comment, and file your
comment online at https://ftcpublic.commentworks.com/ftc/icpconstructionconsent by following the instructions on the web-based
form. If you prefer to file your comment on paper, write ``In the
Matter of ICP Construction Inc., File No. 162-3081'' 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, 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: Megan Gray (202-326-3408), Bureau of
Consumer Protection, 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

[[Page 32821]]

package can be obtained from the FTC Home Page (for July 11, 2017), on
the World Wide Web, at 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 10, 2017.
Write ``In the Matter of ICP Construction Inc., File No. 162-3081'' 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 public Commission Web site, at https://www.ftc.gov/policy/public-comments.
Postal mail addressed to the Commission is subject to delay due to
heightened security screening. As a result, we encourage you to submit
your comments online. To make sure that the Commission considers your
online comment, you must file it at https://ftcpublic.commentworks.com/ftc/icpconstructionconsent by following the instructions on the web-
based form. If this Notice appears at http://www.regulations.gov/#!home, you also may file a comment through that Web site.
If you prefer to file your comment on paper, write ``In the Matter
of ICP Construction Inc., File No. 162-3081'' 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, 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. If possible, submit your paper
comment to the Commission by courier or overnight service.
Because your comment will be placed on the publicly accessible FTC
Web site at https://www.ftc.gov, you are solely responsible for making
sure that 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 that your comment does not include
any 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 Web site--as legally required by FTC Rule
4.9(b)--we cannot redact or remove your comment from the FTC Web site,
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 Web site at http://www.ftc.gov to read this Notice
and the news release describing it. 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 10, 2017. 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 Agreement Containing 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 from ICP Construction Inc., formerly known as California Products
Corp., d/b/a/Muralo Paints, a corporation (``respondent'').
The proposed consent order has been placed on the public record for
thirty (30) days for receipt of comments by interested persons.
Comments received during this period will become part of the public
record. After thirty (30) days, the Commission will again review the
agreement and the comments received, and will decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
This matter involves respondent's marketing, sale, and distribution
of purportedly ``VOC-free'' paints. ``VOC'' is the abbreviation for
volatile organic compounds. VOC-free includes claims such as ``zero
VOCs,'' ``0 VOCs,'' and ``No VOCs.'' According to the FTC complaint,
respondent made unsubstantiated representations that its paints: (1)
Are VOC-free; (2) are VOC-free during or immediately after painting;
(3) will not emit any chemical or substance, including VOCs, that
causes material harm to consumers, including sensitive populations such
as babies; and (4) will not emit any chemical or substance, including
VOCs, during or immediately after painting, that causes material harm
to consumers, including sensitive populations such as babies. The FTC
also alleges that respondent used its ECO ASSURANCE seal without
adequately disclosing that respondent awarded the seal to its own
product. Consumers likely interpret the seal as a claim that an
independent third party certified the product. The FTC further alleges
that respondent provided independent retailers with promotional
materials containing the same claims it made to consumers. Thus, the
complaint alleges that respondent engaged in deceptive practices in
violation of Section 5(a) of the FTC Act.
The proposed consent order contains five provisions designed to
prevent respondent from engaging in similar acts and practices in the
future. Part I prohibits emission-free and VOC-free claims unless both
content and emission are actually zero or at trace level. The orders
define ``emission'' to include all emissions (not just VOC that causes
smog). This definition reflects the Commission's Enforcement Policy
Statement and consumer expectations: Consumers are likely concerned
about the potential health effects from exposure to chemical emission
found in indoor air, not just VOC that affect outdoor air quality. The
order defines ``trace level of emission'' to mean (1) no intentionally
added VOC, (2) emission of the covered product does not cause material
harm that consumers typically associate with emission, including harm
to the environment or human health, and (3) emission of the covered
product does not result in more than harmless concentrations of any
compound higher than would be found under normal conditions in the
typical residential home without interior architectural coating. Part
II prohibits misleading

[[Page 32822]]

representations regarding emission, VOC level, odor, and any general
environmental and health benefit of paints. The order requires
competent and reliable scientific evidence to substantiate these
representations. Parts IV and V prohibit respondent from
misrepresenting third-party certifications and failing to adequately
disclose a material connection. Part VI prohibits respondent from
providing third parties with the means and instrumentalities to make
false, unsubstantiated, or otherwise misleading representations of
material fact regarding paints, including any representation prohibited
by Parts I, II, IV, or V.
To correct existing unsubstantiated zero-VOC claims and deceptive
certification claims, Part III requires the respondent to send letters
to its dealers and distributors, instructing them to post placards next
to paint cans and at point of sale.
Parts VII through XI are reporting and compliance provisions. Part
VII mandates that respondent acknowledge receipt of the order,
distribute the order to certain employees and agents, and secure
acknowledgments from recipients of the order. Part VIII requires that
respondent submit compliance reports to the FTC within sixty (60) days
of the order's issuance and submit additional reports when certain
events occur. Part IX requires that respondent must create and retain
certain records for five (5) years. Part X provides for the FTC's
continued compliance monitoring of respondent's activity during the
order's effective dates. Part XI is a provision ``sunsetting'' the
order after twenty (20) years, with certain exceptions.
If the Commission finalizes the agreement's proposed order, it
plans to propose harmonizing with this order the consent orders issued
in the PPG Architectural Finishes, Inc. (Docket No. C-4385) and The
Sherwin-Williams Company (Docket No. C-4386) matters. Specifically, the
Commission plans to issue orders to show cause why those matters should
not be modified pursuant to Section 3.72(b) of the Commission Rules of
Practice, 16 CFR 3.72(b).
The purpose of the analysis is to aid public comment on the
proposed order. It is not intended to constitute an official
interpretation of the proposed order or to modify its terms in any way.

By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 2017-14974 Filed 7-17-17; 8:45 am]
BILLING CODE 6750-01-P

32820 Federal Register / Vol. 82, No. 136 / Tuesday, July 18, 2017 / Notices

This matter involves respondent’s environmental and health benefit of FEDERAL TRADE COMMISSION
marketing, sale, and distribution of paints. The order requires competent
[File No. 162 3081]
purportedly ‘‘emission-free’’ paints. and reliable scientific evidence to
Emission is any compound emitted from substantiate these representations. Parts ICP Construction Inc.; Analysis To Aid
paint during application or thereafter IV and V prohibit respondent from Public Comment
and includes volatile organic misrepresenting third-party
compounds (or VOCs). According to the certifications and failing to adequately AGENCY: Federal Trade Commission.
FTC complaint, respondent made disclose a material connection. Part VI ACTION: Proposed consent agreement.
unsubstantiated representations that prohibits respondent from providing
Natura paints: (1) Are emission-free; (2) third parties with the means and SUMMARY: The consent agreement in this
are emission-free during or immediately instrumentalities to make false, matter settles alleged violations of
after painting; (3) will not emit any unsubstantiated, or otherwise federal law prohibiting unfair or
chemical or substance, including VOCs, misleading representations of material deceptive acts or practices. The attached
Analysis to Aid Public Comment
that causes material harm to consumers, fact regarding paints, including any
describes both the allegations in the
including sensitive populations such as representation prohibited by Parts I, II,
complaint and the terms of the consent
babies and allergy and asthma sufferers; IV or V.
order—embodied in the consent
and (4) will not emit any chemical or To correct allegedly existing agreement—that would settle these
substance, including VOCs, during or unsubstantiated zero emission and VOC allegations.
immediately after painting, that causes claims and deceptive certification
material harm to consumers, including claims, Part III requires the respondent DATES: Comments must be received on
sensitive populations such as babies and to send letters to its dealers and or before August 10, 2017.
allergy and asthma sufferers. The FTC distributors, instructing them to place ADDRESSES: Interested parties may file a
also alleges that respondent used its placards next to paint cans and at point comment online or on paper, by
Green Promise seal without adequately of sale. following the instructions in the
disclosing that respondent awarded the Parts VII through XI are reporting and Request for Comment part of the
seal to its own product. Consumers compliance provisions. Part VII SUPPLEMENTARY INFORMATION section
likely interpret such seals as a claim mandates that respondent acknowledge below. Write: ‘‘In the Matter of ICP
that an independent third party certified receipt of the order, distribute the order Construction Inc., File No. 162–3081’’
the product. The FTC further alleges to certain employees and agents, and on your comment, and file your
that respondent provided independent secure acknowledgments from comment online at https://
retailers with promotional materials recipients of the order. Part VIII requires ftcpublic.commentworks.com/ftc/
containing the same claims it made to that respondent submit compliance icpconstructionconsent by following the
consumers. Thus, the complaint alleges reports to the FTC within sixty (60) days instructions on the web-based form. If
that respondent engaged in deceptive of the order’s issuance and submit you prefer to file your comment on
practices in violation of Section 5(a) of additional reports when certain events paper, write ‘‘In the Matter of ICP
the FTC Act. occur. Part IX requires that respondent Construction Inc., File No. 162–3081’’
The proposed consent order contains must create and retain certain records on your comment and on the envelope,
five provisions designed to prevent for five (5) years. Part X provides for the and mail your comment to the following
respondent from engaging in similar FTC’s continued compliance monitoring address: Federal Trade Commission,
acts and practices in the future. Part I of respondent’s activity during the Office of the Secretary, 600
prohibits emission-free and VOC-free order’s effective dates. Part XI is a Pennsylvania Avenue NW., Suite CC–
claims unless both content and emission provision ‘‘sunsetting’’ the order after 5610 (Annex D), Washington, DC 20580,
are actually zero or at trace levels. The twenty (20) years, with certain or deliver your comment to the
orders define ‘‘emission’’ to include all exceptions. following address: Federal Trade
emissions (not just VOCs that cause If the Commission finalizes the Commission, Office of the Secretary,
smog). This definition reflects the agreement’s proposed order, it plans to Constitution Center, 400 7th Street SW.,
Commission’s Enforcement Policy propose harmonizing with this order the 5th Floor, Suite 5610 (Annex D),
Statement and consumer expectations: consent orders issued in the PPG Washington, DC 20024.
Consumers are likely concerned about Architectural Finishes, Inc. (Docket No. FOR FURTHER INFORMATION CONTACT:
the potential health effects from C–4385) and The Sherwin-Williams Megan Gray (202–326–3408), Bureau of
exposure to chemical emissions found Company (Docket No. C–4386) matters. Consumer Protection, 600 Pennsylvania
in indoor air, not just VOCs that affect Specifically, the Commission plans to Avenue NW., Washington, DC 20580.
outdoor air quality. The order defines issue orders to show cause why those SUPPLEMENTARY INFORMATION: Pursuant
‘‘trace level of emission’’ to mean (1) no matters should not be modified to Section 6(f) of the Federal Trade
intentionally added VOC, (2) emission pursuant to Section 3.72(b) of the Commission Act, 15 U.S.C. 46(f), and
of the covered product does not cause Commission Rules of Practice, 16 CFR FTC Rule 2.34, 16 CFR 2.34, notice is
material harm that consumers typically 3.72(b). hereby given that the above-captioned
associate with emission, including harm The purpose of the analysis is to aid consent agreement containing a consent
to the environment or human health, public comment on the proposed order. order to cease and desist, having been
and (3) emission of the covered product It is not intended to constitute an filed with and accepted, subject to final
does not result in more than harmless approval, by the Commission, has been
sradovich on DSK3GMQ082PROD with NOTICES

official interpretation of the proposed
concentrations of any compound higher order or to modify its terms in any way. placed on the public record for a period
than would be found under normal of thirty (30) days. The following
conditions in the typical residential By direction of the Commission. Analysis to Aid Public Comment
home without interior architectural Donald S. Clark, describes the terms of the consent
coating. Part II prohibits misleading Secretary. agreement, and the allegations in the
representations regarding emission, [FR Doc. 2017–14972 Filed 7–17–17; 8:45 am] complaint. An electronic copy of the
VOC levels, odor, and any general BILLING CODE 6750–01–P full text of the consent agreement

VerDate Sep<11>2014 17:47 Jul 17, 2017 Jkt 241001 PO 00000 Frm 00036 Fmt 4703 Sfmt 4703 E:\FR\FM\18JYN1.SGM 18JYN1

Document Created: 2018-10-24 11:26:36
Document Modified: 2018-10-24 11:26:36

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Proposed consent agreement.
Dates		Comments must be received on or before August 10, 2017.
Contact		Megan Gray (202-326-3408), Bureau of Consumer Protection, 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation		82 FR 32820