FTC: Watch articles from January 2002

FTC: Watch archives from January 2002

Advertising: two more BBB referrals to FTC.(Brief Article)
January 14, 2002... The advertising industry's self-regulation body has referred two new cases to the FTC since the Christmas holidays, bringing the total pending agency analysis to five. Victoria Vogue, Inc. sicced the Council of better Business Bureaus'...

When is antitrust disgorgement a good idea?(Brief Article)
January 14, 2002... Is disgorgement a suitable remedy for egregious, antitrust-related violations of the Hart-Scott-Rodino (HSR) Premerger Notification Act, the FTC Act, and the Clayton Act? Can profits obtained by violating federal competition laws be clearly...

FTC opposes BMS's application for Noerr-Pennington immunity.(Brief Article)
January 14, 2002... The FTC opposed Bristol-Myers-Squibb's (BMS) motion to dismiss antitrust charges that it improperly listed a patent to fend off generic competition to its branded drug, BuSpar on the grounds of Noerr-Pennington doctrine antitrust immunity, in a...

FTC urges court to slash class action legal fees in Hearst private law suit.
January 14, 2002... In a brief filed in the U.S. District Court for District of Columbia, the Commission opposes the class action plaintiffs' petition for hefty legal fees and expenses in a private antitrust lawsuit against Hearst Trust & First Data Bank ...

Supreme Court urged to deny cert to foreign oil company.(Brief Article)
January 14, 2002... Should federal courts have jurisdiction under the Sherman Act and the Foreign Trade Antitrust Improvements Act of 1992 (FTAIA) when a foreign plaintiff claims that it has been injured by a conspiracy that has direct, substantial, and reasonably...

DOJ [Department of Justice], FTC [Federal TradeCommission] urge NC [North Carolina] to reconsider opinions restricting non-lawyers.
January 14, 2002... Please consider either rescinding or revising two recent opinions that would prevent non-lawyers from competing with lawyers to perform real estate closings, both the Antitrust Division and FTC urged the North Carolina State Bar's (NCSB) Ethics...

D.C. Circuit: FTC can investigate online securities trading marketing practices.(Federal Trade Commission)(Brief Article)
January 14, 2002... The U.S. Court of Appeals for the D.C. Circuit unanimously agreed that the FTC has ample authority to investigate and regulate deceptive Internet advertising and marketing practices, even when such practices relate to securities and commodities...

EC Competition: new de minimis Notice.(Brief Article)
January 14, 2002... As part of the European Commission's review of its competition rules, the EC has adopted a new Notice on agreements of minor importance that do not appreciably restrict competition (de minimis Notice). The new Notice holds that "de minimis"...

Muris on multi-jurisdictional mergers.(Tim Muris)(Brief Article)(Statistical Data Included)
January 14, 2002... Nearly one quarter of the 1700 merger cases reviewed by the European Commission (EC) since 1990 involved at least one U.S. based firm, FTC Chairman Tim Muris said at a December 21 Brookings Institute forum. But the EC prohibited mergers of U.S....

FTC staff support FERC's proposed rule for transmission providers.(Federal Trade Commission;)(Federal Energy Regulatory Commission)(Brief Article)
January 14, 2002... Due to convergence between the natural gas and electric power industries and the growing importance of competitively sensitive information flows within and between both industries, the time is ripe for the Federal Energy Regulatory Commission...

Public hearing on U.S. petroleum industry.(Brief Article)
January 14, 2002... A second FTC public hearing on factors that affect prices of refined petroleum products is slated for May 6-9 to follow up on the first conference, held in August. The agency hopes to gain a detailed understanding of trends since 1985 in:...

Non-Profit Institutions Act staff opinions.(Federal Trade Commission advisories)(Brief Article)
January 14, 2002... The non-profit, multi-specialty medical clinic, Harvard Vanguard Medical Associates, Inc.'s (HVMA) group purchase of drugs to be dispensed by HVMA's doctors to HMVA employees is covered by the Non-Profit Institutions Act, FTC staff advised last...

Amplifier rulemaking delayed.(Brief Article)
January 14, 2002... The Commission deferred action on the proposed Trade Regulation Rule on Power Output Claims for Amplifiers Used at Home (Amplifier Rule), after an industry trade association asked the Commission to hold off until the trade association...

FTC-obtained court orders violators beware.(report on 'Operation Scofflaw')(Brief Article)(Statistical Data Included)
January 14, 2002... "Operation Scofflaw" -- an ongoing 1996 FTC project designed to detect and prosecute violators of FTC-obtained court orders -- has produced 27 civil and/or criminal contempt prosecutions, according to a recent FTC report. Those...

Microsoft's request for 4 month delay of remedy hearing denied.(Brief Article)
January 14, 2002... U.S. District Court Judge Colleen Kollar-Kotelly has denied Microsoft's bid for a four-month delay of the remedy hearing in U.S. v. Microsoft slated to commence before the Federal District Court of Columbia on March 11. Microsoft had cited the...

DOJ OKs uniform buying format for suppliers of non-profit fundraising.(Association of Fund-Raising Distributors)(and Suppliers)(Brief Article)
January 14, 2002... The Association of Fund-Raising Distributors and Suppliers ("AFRDS") can go ahead with a proposal to institute a uniform numbering system for product ordering, according to a business review letter from the Justice Department. The...

DOJ to FCC: Verizon application to enter R.I. long distance market should be OK'd.(Brief Article)
January 14, 2002... Verizon has done a credible enough job in opening up its local markets to competition that the Federal Communications Commission should approve the firm's application to provide long distance service to telephone consumers in Rhode Island. That...

Antitrust Division makeover.(Department of Justice overhaul of division)(Brief Article)
January 14, 2002... The Antitrust Division is being revamped to enhance its ability to respond more effectively to competition concerns in new industries, network markets and to other emerging economic trends, Assistant Attorney General (AAG) Charles A. James...

Senators, DOJ urge DOT to order AA/BA to divest slots before allying.(American Airlines Inc.; British Airways PLC)(Brief Article)
January 14, 2002... The Transportation Dept. (DOT) should require American Airlines and British Airways to divest slots to new entrants at London's Heathrow airport before approving their proposed alliance and accompanying request for antitrust immunity, Senate...

Suiza & Dean agree to divest 11 dairies.(Brief Article)
January 14, 2002... Suiza Foods Corp. and Dean Foods Co. will divest seven Suiza and four Dean dairy processing plants in Alabama, Florida, Indiana, Kentucky, Ohio, South Carolina, Virginia, and Utah to resolve Antitrust Division concerns about the merger....

Merger watch.(Brief Article)
January 14, 2002... Merger watch: Monster.com has lost its bid for hotjobs.com to Yahoo!, but the FTC's investigation of alleged premature commingling of assets ("gun-jumping") lingers on. [FTC:WATCH No. 579, December 17, 2001] Some day, rumors that Tyco has...

Privacy.(consent agreement with Eli Lilly)(Brief Article)
January 14, 2002... Privacy: the FTC has negotiated a consent agreement with Eli Lilly, resolving charges that Lilly promised customers privacy and then let their identities slip out over the Internet. This is the FTC's privacy case and will require Lilly to...

Courts toss economists.(as expert testimony)(Brief Article)
January 14, 2002... Courts toss economists: What's this... federal courts rejecting economists' testimony as not necessarily "expert"? A study by Robert Badal and Edward Slizewski in Heller Ehrman White & McAuliffe's Los Angeles office says that federal...

Get the quacks, get the guns.(Federal Trade Commission to observe Internet sites)(Brief Article)
January 14, 2002... Get the quacks, get the guns: Gun Industry Watch, a project of Alliance for Justice, citing the FTC's announcment that it is keeping close watch on Internet sites that offer anti-terrorist biolgic products of dubious value, has asked the agency...

Location, location, location.(FTC moving office)(Brief Article)
January 14, 2002... Location, location, location: The FTC is being kicked out of its office space at 601 Pennsylvania Ave. NW and moving to considerably more expansive digs just up the street at 601 New Jersey Ave. Problem: The Penn Ave. lease expires at the end...

"Our customers are the enemy".(book by John M. Connor of Purdue University)(Brief Article)
January 14, 2002... "Our customers are the enemy": John M. Connor of Purdue University's Agricultural Economics Dept. has penned a 624-page history and analysis of recent global cartels in the markets for lysine, citric acid, and vitamins as well as "selected"...

Canada's draft guidelines on abuse of dominance for grocery retailers.
January 14, 2002... In December, 2001, the Canadian Competition Bureau released for public comment its draft guidelines on the enforcement of the Competition Act's abuse of dominance provisions in the Canadian retail grocery sector. These are the latest in a...

Valero divests refinery, 70 gasoline stations.(Brief Article)
January 14, 2002... The petroleum refiners Valero Energy Corp. and Ultramar Diamond Shamrock Corp. closed their $6 billion merger on December 31 -- after Valero agreed to divest Ultramar's Golden Eagle Refinery, bulk gasoline supply contracts, and 70 Ultramar...

Diageo agrees to divest Malibu Rum FTC drops PI challenge to Seagram deal.(Brief Article)
January 14, 2002... The FTC is no longer seeking a preliminary injunction to halt Diageo's and Pernod Ricard S.A.'s joint $8.15 billion purchase of Vivendi Universal S.A.'s Seagram Spirits & Wine Business now that Diageo has agreed to divest its worldwide Malibu...

Canadian telemarketers' TRO.(Brief Article)
January 14, 2002... At the behest of the FTC, a U.S. District Court has slapped a temporary restraining order on Canadian telemarketers who allegedly duped elderly U.S. citizens into disclosing credit card numbers and then used legitimate Web site payment services...

The following orders are final.
January 14, 2002... Chevron Corp. and Texaco, Inc. Docket No C-4023 Contact: Phillip L. Broyles, 202-326-2805 Esrim Ve Sheva Holding Corp File No. 012-3116 Contact: Jonathan Cowen, 202-326-2533 Airgas, Inc. File No. 001-0040 Contact: Christina...

Chevron/Texaco seek to divest Equilon & Motiva.(Brief Article)
January 14, 2002... Chevron Corp. and Texaco Inc. requested approval to divest Texaco's interests in Equilon Enterprises LLC and Motiva Enterprises LLC to Shell Oil Company and Saudi Refining, Inc. FTC approval is required by a September 7 consent order. ...

AOL/TW cable agreements.(Brief Article)
January 14, 2002... 1. America Online/Time Warner, Inc. has requested FTC approval for: (a) a non-affiliated Internet Service Provider (ISP) agreement with Web One, Inc. (Web One); and (b) an alternative cable broadband service agreement between Time Warner Cable...

FTC adds "PLA" name to Textile Rules.(Brief Article)
January 14, 2002... The FTC approved Cargill Dow, LLC's request to add the new textile fiber generic name and definition "PLA" to the Textile Fiber Products Identification Act Rules - for a fiber that Cargill Dow makes and designates under the registered name...

FTC adds defendant to credit card fraud complaint.(Brief Article)
January 14, 2002... The Commission filed an amended complaint in the FTC's October complaint against Icon America that alleged credit card protection fraud. The amended complaint names 9066-3451 Quebec Inc. d/b/a Sierra Enterprises as an additional corporate...

Supermarket transfer OK.(United States Federal Trade Commission approves application)(Brief Article)
January 14, 2002... The Commission approved Unified, (formerly Certified Grocers of California, Ltd.), application to transfer SavMax Store No. 309, located at 1375 N. Citrus Ave., Covina, California to Super Center Concepts, Inc., d/b/a Superior Super Warehouse...

CVS acquisition approved.(Brief Article)
January 14, 2002... The Commission has approved CVS Corp.'s request for assets of Horizon Pharmacies, Inc. store in Covington, Virginia as required by a 1994 FTC consent order that concerned the merger of Revco D.S., Inc. and Hook-SupeRx, Inc. (HSI). CVS bought...

Final judgment for bankrupt Megasystems.(Brief Article)
January 14, 2002... The Commission approved a stipulated final judgment in the bankruptcy court action for Mega Systems and Jeffrey Salberg. The judgment awards the Commission $30,000 and a share in any distribution of assets at the conclusion of the bankruptcy...

Calendar.
January 14, 2002... January 17 - FTC Commissioner Thomas Leary "The essential Stability of Merger Policy in the U.S. opening remarks at Guidelines for Merger Remedies: Prospects and Principles Joint U.S./E.U. conference; Paris; Sponsored by: University of...

Antitrust jurisdiction agreement crashes.
January 28, 2002... Oops. For decades, commentators and antitrust lawyers have debated, discussed, argued and generally complained about the perceived problems associated with the shared antitrust enforcement jurisdiction between the Justice Dept. and the FTC...

Leary on continuity of U.S. merger policy.(FTC Commissioner Thomas B. Leary)(Brief Article)
January 28, 2002... "Policymakers, critics, commentators and journalists of all kinds are only heard in a noisy world when they say something different," FTC Commissioner Thomas B. Leary "Merger policies in the 1990s do not represent a counter-reaction to, or...

Starr & CATO debate Microsoft breakup.(Brief Article)
January 28, 2002... Progress & Freedom Foundation President Jeffrey Eisenach thinks that a court-ordered breakup of Microsoft is a very real possibility. Speaking at a January 16 CATO Institute forum, ProComp Counsel Kenneth Starr dittoed Eisenach's, and...

June workshop for "Do Not Call List," other Telemarketing Rule changes.(Brief Article)
January 28, 2002... The FTC will hold a public forum in June to thrash out the details for creating a centralized national "Do Not Call" registry and expanding the Telemarketing Sales Rule to cover calls made to solicit charitable donations. In October, FTC...

Trial lawyers' boycott petition denied.(to limit scope of order banning collective action to price fixing)(Brief Article)
January 28, 2002... The FTC has denied a petition by the D.C. Superior Court Trial Lawyers' Association to limit the scope of a fifteen-year-old order banning collective action to price-fixing, so that trial lawyers would be allowed to boycott courts that fail to...

Land down under gets broader access to Consumer Sentinel.(Australian law enforcement authorities can now access information)(Brief Article)
January 28, 2002... Australian law enforcement authorities can now access non-public consumer complaints and consumer protection law enforcement information in the FTC's Consumer Sentinel database. The agency already shares the information with hundreds of law...

Report from Canada.(amending Competition Act)
January 28, 2002... Von Finckenstein reappointed to a second term: On December 7, 2001, the current Commissioner of Competition, Konrad von Finckenstein, was reappointed to a second five year term. The effective date of the appointment is January 28, 2002. Those...

Phillips/Conoco 2nd request.(FTC asks for more information about proposed merger)(Brief Article)
January 28, 2002... Phillips/Conoco 2nd request: On January 17, Phillips Petroleum Co. said that the FTC has asked it for more information about its proposed merger with Conoco Inc. Phillips said that it is working closely with FTC staff and still expects the...

Newport News deal complete.(Northrop Grumman Corp. acquires Newport News Shipbuilding)(Brief Article)
January 28, 2002... Newport News deal complete: Northrop Grumman Corp. now owns 100% of the ship building company Newport News after buying all the common stock that it had not previously purchased in its tender offer that expired last Nov. 29. In October, General...

Seeing double.(FTC's top consumer fraud complaints for 2001)(Brief Article)(Statistical Data Included)
January 28, 2002... Seeing double: Identity theft accounted for 42% of the 204,000 consumer complaints entered into the FTC's Consumer Sentinel database last year. The FTC's Top Ten Hit Parade of consumer fraud complaints for 2001 also includes: Internet Auctions...

Landlords & the FCRA.(new FTC guide helps landlords comply with Fair Credit Reporting Act)(Brief Article)
January 28, 2002... Landlords & the FCRA: Landlords will better understand how to comply with the Fair Credit Reporting Act (FCRA) if they take the time to read a new FTC E"Facts for Business" guide, "Using Consumer Reports: What Landlords Need to Know."...

DOJ, Sprint & Equant move to drop Sprint from 1996 order.(Department of Justice)(Brief Article)
January 28, 2002... Together with Sprint Corp. and Equant N.V. (formerly Joint Venture Co.), the Antitrust Division has moved to modify a 1996 Final Judgment -- dropping Sprint as a named defendant and identifying Equant as a defendant -- following public notice...

DOJ defends Premdor/Masonite order.(Department of Justice's Proposed Final Judgment to resolve antitrust issues surrounding Premdor's acquisition of Masonite Corp.)(Brief Article)
January 28, 2002... On August 30, Lifetime Doors Inc. informed the Antitrust Division that it did not think that the Division's August 3, 2001 Proposed Final Judgment to resolve antitrust concerns around Premdor's acquisition of Masonite Corp. would really do much...

FTC challenges off-shore gelatin merger.(Deutsche Gelatine-Fabriken Stoess AG's acquisition of Leiner Davis Gelatin Corp.)(Brief Article)
January 28, 2002... The Commission has voted to file a motion for a preliminary injunction to block Germany's Deutsche Gelatine-Fabriken Stoess AG's proposed $170 million acquisition of Australia's Leiner Davis Gelatin Corp. The agency's concern, according to FTC...

Libbey drops food service business.(Brief Article)(Statistical Data Included)
January 28, 2002... On January 14, the FTC filed a complaint for a preliminary injunction (PI) in the U.S. District Court for the District of Columbia to block the largest U.S. glassware maker Libbey's proposed $332 million acquisition of Newell Rubbermaid's...

Lilly swallows online privacy plan pill.
January 28, 2002... Eli Lilly and Co. (Lilly) agreed to implement a stringent online privacy and data security plan to settle FTC charges that they violated the Federal Trade Commission Act by being sloppy with sensitive personal information. Lilly allegedly...

Court rejects immunity for offshore affiliate.(Skybiz International)
January 28, 2002... U.S. District Judge Claire Eagan did not buy Skybiz's arguments that an August Preliminary Injunction halting an alleged online pyramid scheme did not include the assets of its offshore affiliate, Skybiz International. Judge Eagan has...

Candy vendor biz op marketer settles.
January 28, 2002... Michael Cavallo will hand over $44,267 for consumer redress, and post a $1 million performance bond, before marketing business ventures, settling FTC charges that his company, Marketing & Vending Concepts, sold a candy vending machine business...

For the record.(Royal Ahold NV, Bruno's Supermarkets)
January 28, 2002... The following consent order is final Royal Ahold NV and Bruno's Supermarkets, Inc. E File No. 011-0247 Contact: Susan Huber, 202-326-3331

Calendar.
January 28, 2002... January 30 - Economics Bureau Director David Scheffman and chairman's office Chief of Staff Christine Wilson will discuss the FTC's initiatives involving trade associations under Chairman Tim Muris at a brown bag lunch event sponsored by the...

European Commission Competition Commissioner Mario Monti.
January 28, 2002... European Commission Competition Commissioner Mario Monti will speak at the American Antitrust Institute's (AAI) 2002 annual forum on July 1.

Florida Antitrust Chief Patricia Connors.(joins AAI's Advisory Board)(Brief Article)
January 28, 2002... Florida Antitrust Chief Patricia Connors, former Deputy Assistant Attorney General John M. Nannes and Sonnenschein, Nath & Rosenthal partner Douglas Rosenthal have joined AAI's Advisory Board. Connors also heads the National Association of...

Former Antitrust Division National Criminal Enforcement Section.(Anthony V. Nanni appointed to firm)(Brief Article)
January 28, 2002... Former Antitrust Division National Criminal Enforcement Section (previously known as Litigation I) Chief Anthony V. Nanni has joined Fried, Frank, Harris, Shriver & Jacobson in Washington D.C.

Former Consumer Protection Bureau Assistant Director and Attorney Advisor.(Dana B. Rosenfeld appointed to Bryan Cave L.L.P.)(Brief Article)
January 28, 2002... Former Consumer Protection Bureau Assistant Director and Attorney Advisor to former FTC Chairman Robert Pitofsky Dana B. Rosenfeld is now counsel at Bryan Cave LLP.