82 FR 32823 - YOLO Colorhouse, LLC; Analysis To Aid Public Comment

FEDERAL TRADE COMMISSION

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

Page Range		32823-32825
FR Document		2017-14973

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 32823-32825]
From the Federal Register Online [www.thefederalregister.org]
[FR Doc No: 2017-14973]

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FEDERAL TRADE COMMISSION

[File No. 162 3082]

YOLO Colorhouse, LLC; Analysis To Aid Public Comment

AGENCY: Federal Trade Commission.

[[Page 32824]]

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 YOLO
Colorhouse, LLC, File No. 162-3082'' on your comment, and file your
comment online at https://ftcpublic.commentworks.com/ftc/yolocolorhouseconsent by following the instructions on the web-based
form. If you prefer to file your comment on paper, write ``In the
Matter of YOLO Colorhouse, LLC, File No. 162-3082'' 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: Katherine E. Johnson (202-326-2185),
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 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 YOLO Colorhouse, LLC, File No. 162-3082'' 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/yolocolorhouseconsent 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 YOLO Colorhouse, LLC, File No. 162-3082'' 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 YOLO Colorhouse, LLC, a limited liability company
(``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

[[Page 32825]]

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 children; 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 children. 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 three 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 emissions are actually zero or at trace levels. The orders
define ``emission'' to include all emissions (not just VOCs that cause
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 emissions
found in indoor air, not just VOCs 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 and
compound higher than would be found under normal conditions in the
typical residential home without interior architectural coating. Part
II prohibits misleading representations regarding emission, VOC levels,
odor, and any general environmental and health benefit of paints. The
order requires competent and reliable scientific evidence to
substantiate these representations. Part IV 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 or II.
To correct existing unsubstantiated zero emission and VOC claims,
Part III requires the respondent to send letters to its dealers and
distributors, instructing them to put stickers on paint cans to obscure
allegedly unsubstantiated emission and VOC claims.
Parts V through IX are reporting and compliance provisions. Part V
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 VI 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
VII requires that respondent must create and retain certain records for
five (5) years. Part VIII provides for the FTC's continued compliance
monitoring of respondent's activity during the order's effective dates.
Part IX 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. 2017-14973 Filed 7-17-17; 8:45 am]
BILLING CODE 6750-01-P

Federal Register / Vol. 82, No. 136 / Tuesday, July 18, 2017 / Notices 32823

commercial or financial information and will decide whether it should substantiate these representations. Part
which . . . is privileged or withdraw from the agreement or make IV prohibits respondent from providing
confidential’’—as provided by Section final the agreement’s proposed order. third parties with the means and
6(f) of the FTC Act, 15 U.S.C. 46(f), and This matter involves respondent’s instrumentalities to make false,
FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)— marketing, sale, and distribution of unsubstantiated, or otherwise
including in particular competitively purportedly ‘‘VOC-free’’ paints. ‘‘VOC’’ misleading representations of material
sensitive information such as costs, is the abbreviation for volatile organic fact regarding paints, including any
sales statistics, inventories, formulas, compounds. VOC-free includes claims representation prohibited by Parts I or
patterns, devices, manufacturing such as ‘‘zero VOCs,’’ ‘‘0 VOCs,’’ and II.
processes, or customer names. ‘‘No VOCs.’’ According to the FTC To correct existing unsubstantiated
Comments containing material for complaint, respondent made zero emission and VOC claims, Part III
which confidential treatment is unsubstantiated representations that its requires the respondent to send letters
requested must be filed in paper form, paints: (1) Are VOC-free; (2) are VOC- to its dealers and distributors,
must be clearly labeled ‘‘Confidential,’’ free during or immediately after instructing them to put stickers on paint
and must comply with FTC Rule 4.9(c). painting; (3) will not emit any chemical cans to obscure allegedly
In particular, the written request for or substance, including VOCs, that unsubstantiated emission and VOC
confidential treatment that accompanies causes material harm to consumers, claims.
the comment must include the factual including sensitive populations such as Part V through IX are reporting and
and legal basis for the request, and must babies, pregnant women, and allergy compliance provisions. Part V mandates
identify the specific portions of the and asthma sufferers; and (4) will not that respondent acknowledge receipt of
comment to be withheld from the public emit any chemical or substance, the order, distribute the order to certain
record. See FTC Rule 4.9(c). Your including VOCs, during or immediately employees and agents, and secure
comment will be kept confidential only after painting, that causes material harm acknowledgments from recipients of the
if the General Counsel grants your to consumers, including sensitive order. Part VI requires that respondent
request in accordance with the law and populations such as babies, pregnant submit compliance reports to the FTC
the public interest. Once your comment women, and allergy and asthma within sixty (60) days of the order’s
has been posted on the public FTC Web sufferers. The FTC further alleges that issuance and submit additional reports
site—as legally required by FTC Rule respondent provided independent when certain events occur. Part VII
4.9(b)—we cannot redact or remove retailers with promotional materials requires that respondent must create
your comment from the FTC Web site, containing the same claims it made to and retain certain records for five (5)
unless you submit a confidentiality consumers. Thus, the complaint alleges years. Part VIII provides for the FTC’s
request that meets the requirements for that respondent engaged in deceptive continued compliance monitoring of
such treatment under FTC Rule 4.9(c), practices in violation of Section 5(a) of respondent’s activity during the order’s
and the General Counsel grants that the FTC Act. effective dates. Part IX is a provision
request. The proposed consent order contains ‘‘sunsetting’’ the order after twenty (20)
Visit the FTC Web site at http:// three provisions designed to prevent years, with certain exceptions.
www.ftc.gov to read this Notice and the respondent from engaging in similar If the Commission finalizes the
news release describing it. The FTC Act acts and practices in the future. Part I agreement’s proposed order, it plans to
and other laws that the Commission prohibits emission-free and VOC-free propose harmonizing with this order the
administers permit the collection of claims unless both content and consent orders issued in the PPG
public comments to consider and use in emissions are actually zero or at trace Architectural Finishes, Inc. (Docket No.
this proceeding, as appropriate. The levels. The orders define ‘‘emission’’ to C–4385) and The Sherwin-Williams
Commission will consider all timely include all emissions (not just VOCs Company (Docket No. C–4386) matters.
and responsive public comments that it that cause smog). This definition reflects
Specifically, the Commission plans to
receives on or before August 10, 2017. the Commission’s Enforcement Policy
issue orders to show cause why those
For information on the Commission’s Statement and consumer expectations:
matters should not be modified
privacy policy, including routine uses consumers are likely concerned about
pursuant to Section 3.72(b) of the
permitted by the Privacy Act, see the potential health effects from
Commission Rules of Practice, 16 CFR
https://www.ftc.gov/site-information/ exposure to chemical emissions found
3.72(b).
privacy-policy. in indoor air, not just VOCs that affect
The purpose of the analysis is to aid
outdoor air quality. The order defines
Analysis of Agreement Containing public comment on the proposed order.
‘‘trace level of emission’’ to mean (1) no
Consent Order To Aid Public Comment It is not intended to constitute an
intentionally added VOC, (2) emission
The Federal Trade Commission official interpretation of the proposed
of the covered product does not cause
(‘‘FTC’’ or ‘‘Commission’’) has accepted, order or to modify its terms in any way.
material harm that consumers typically
subject to final approval, an agreement associate with emission, including harm By direction of the Commission.
containing a consent order from to the environment or human health, Donald S. Clark,
Imperial Paints, LLC, a limited liability and (3) emission of the covered product Secretary.
company (‘‘respondent’’), doing does not result in more than harmless [FR Doc. 2017–14975 Filed 7–17–17; 8:45 am]
business as Lullaby Paints and Ecos concentrations of any compound higher BILLING CODE 6750–01–P
Paints. than would be found under normal
The proposed consent order has been
sradovich on DSK3GMQ082PROD with NOTICES

conditions in the typical residential
placed on the public record for thirty home without interior architectural FEDERAL TRADE COMMISSION
(30) days for receipt of comments by coating. Part II prohibits misleading
interested persons. Comments received representations regarding emission, [File No. 162 3082]
during this period will become part of VOC levels, odor, and any general YOLO Colorhouse, LLC; Analysis To
the public record. After thirty (30) days, environmental and health benefit of Aid Public Comment
the Commission will again review the paints. The order requires competent
agreement and the comments received, and reliable scientific evidence to AGENCY: Federal Trade Commission.

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Federal Register / Vol. 82, No. 136 / Tuesday, July 18, 2017 / Notices 32825

purportedly ‘‘VOC-free’’ paints. ‘‘VOC’’ representation prohibited by Parts I or DEPARTMENT OF HEALTH AND
is the abbreviation for volatile organic II. HUMAN SERVICES
compounds. VOC-free includes claims To correct existing unsubstantiated
such as ‘‘zero VOCs,’’ ‘‘0 VOCs,’’ and Food and Drug Administration
zero emission and VOC claims, Part III
‘‘No VOCs.’’ According to the FTC requires the respondent to send letters [Docket No. FDA–2017–D–0040]
complaint, respondent made
to its dealers and distributors,
unsubstantiated representations that its Agency Information Collection
instructing them to put stickers on paint
paints: (1) Are VOC-free; (2) are VOC- Activities; Submission for Office of
free during or immediately after cans to obscure allegedly
unsubstantiated emission and VOC Management and Budget Review;
painting; (3) will not emit any chemical Comment Request; Draft Guidance for
or substance, including VOCs, that claims.
Industry; How To Prepare a Pre-
causes material harm to consumers, Parts V through IX are reporting and Request for Designation
including sensitive populations such as compliance provisions. Part V mandates
children; and (4) will not emit any that respondent acknowledge receipt of AGENCY: Food and Drug Administration,
chemical or substance, including VOCs, the order, distribute the order to certain HHS.
during or immediately after painting, employees and agents, and secure ACTION: Notice.
that causes material harm to consumers, acknowledgments from recipients of the
including sensitive populations such as order. Part VI requires that respondent SUMMARY: The Food and Drug
children. The FTC further alleges that submit compliance reports to the FTC Administration (FDA) is announcing
respondent provided independent that a proposed collection of
within sixty (60) days of the order’s
retailers with promotional materials information has been submitted to the
issuance and submit additional reports
containing the same claims it made to Office of Management and Budget
when certain events occur. Part VII (OMB) for review and clearance under
consumers. Thus, the complaint alleges requires that respondent must create
that respondent engaged in deceptive the Paperwork Reduction Act of 1995.
and retain certain records for five (5)
practices in violation of Section 5(a) of DATES: Fax written comments on the
years. Part VIII provides for the FTC’s
the FTC Act. collection of information by August 17,
continued compliance monitoring of
The proposed consent order contains 2017.
respondent’s activity during the order’s
three provisions designed to prevent effective dates. Part IX is a provision ADDRESSES: To ensure that comments on
respondent from engaging in similar ‘‘sunsetting’’ the order after twenty (20) the information collection are received,
acts and practices in the future. Part I OMB recommends that written
years, with certain exceptions.
prohibits emission-free and VOC-free comments be faxed to the Office of
claims unless both content and If the Commission finalizes the Information and Regulatory Affairs,
emissions are actually zero or at trace agreement’s proposed order, it plans to OMB, Attn: FDA Desk Officer, FAX:
levels. The orders define ‘‘emission’’ to propose harmonizing with this order the 202–395–7285, or emailed to oira_
include all emissions (not just VOCs consent orders issued in the PPG submission@omb.eop.gov. All
that cause smog). This definition reflects Architectural Finishes, Inc. (Docket No. comments should be identified with the
the Commission’s Enforcement Policy C–4385) and The Sherwin-Williams OMB control number 0910—NEW and
Statement and consumer expectations: Company (Docket No. C–4386) matters. title ‘‘Draft Guidance for Industry; How
consumers are likely concerned about Specifically, the Commission plans to to Prepare a Pre-Request for Designation
the potential health effects from issue orders to show cause why those (Pre-RFD).’’ Also include the FDA
exposure to chemical emissions found matters should not be modified docket number found in brackets in the
in indoor air, not just VOCs that affect pursuant to Section 3.72(b) of the heading of this document.
outdoor air quality. The order defines Commission Rules of Practice, 16 CFR FOR FURTHER INFORMATION CONTACT:
‘‘trace level of emission’’ to mean (1) no 3.72(b). Amber Sanford, Office of Operations,
intentionally added VOC, (2) emission Food and Drug Administration, Three
of the covered product does not cause The purpose of the analysis is to aid
public comment on the proposed order. White Flint North 10A–12M, 11601
material harm that consumers typically Landsdown St., North Bethesda, MD
associate with emission, including harm It is not intended to constitute an
20852, 301–796–8867, PRAStaff@
to the environment or human health, official interpretation of the proposed
fda.hhs.gov.
and (3) emission of the covered product order or to modify its terms in any way.
does not result in more than harmless SUPPLEMENTARY INFORMATION: In
By direction of the Commission.
concentrations of and compound higher compliance with 44 U.S.C. 3507, FDA
Donald S. Clark, has submitted the following proposed
than would be found under normal
Secretary. collection of information to OMB for
conditions in the typical residential
home without interior architectural [FR Doc. 2017–14973 Filed 7–17–17; 8:45 am] review and clearance.
coating. Part II prohibits misleading BILLING CODE 6750–01–P
Draft Guidance for Industry; How To
representations regarding emission, Prepare a Pre-Request for Designation
VOC levels, odor, and any general (Pre-RFD)
environmental and health benefit of
paints. The order requires competent OMB Control Number 0910—NEW
and reliable scientific evidence to Since its establishment on December
sradovich on DSK3GMQ082PROD with NOTICES

substantiate these representations. Part 24, 2002, the FDA Office of
IV prohibits respondent from providing Combination Products (OCP) has served
third parties with the means and as a resource for sponsors at various
instrumentalities to make false, stages of development of their product.
unsubstantiated, or otherwise Sponsors often seek OCP feedback on
misleading representations of material whether their medical product will be
fact regarding paints, including any regulated as a drug, a device, a biologic,

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Document Created: 2018-10-24 11:25:26
Document Modified: 2018-10-24 11:25:26

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		Katherine E. Johnson (202-326-2185), Bureau of Consumer Protection, 600 Pennsylvania Avenue NW., Washington, DC 20580.
FR Citation		82 FR 32823