FTC: Watch articles from May 2002

FTC: Watch archives from May 2002

Merger watch.(Amgen Inc. divests Leukine cancer drug to satisfy Federal Trade Commission antitrust objections regarding proposed Immunex Corp. acquisition)(Brief Article)
May 6, 2002... Amgen Inc.'s proposed acquisition of Immunex Corp. moved a step closer to satisfying FTC antitrust objections last week with the sale of Immunex Corp's Leukine cancer drug to German firm Schering AG. But there's more to do. It is...

Excuse me, buddy, did you hear a gun?(Computer Associates pays civil penalty in Platinum Technology International Inc. acquisition)(Brief Article)
May 6, 2002... Leave the blocks early at a track meet, it's a foul. Act like your merger is consummated while its still under antitrust review, it could be a hefty civil penalty. The short term for both is "gun-jumping," and Computer Associates just...

Yankees network sues Cablevision.(Yankees Entertainment and Sports Network, Cablevision Systems Corp.)(Brief Article)
May 6, 2002... YES, the Yankees Entertainment & Sports Network created to televise New York Yankees' games in the New York metropolitan area, has accused cable TV provider Cablevision Systems Corp. of "attempting to monopolize the market for local sports...

California Supreme Court proclaims Nike image advertising commercial speech.(Brief Article)
May 6, 2002... "As the United States Supreme Court has explained, false and misleading speech has no constitutional value in itself and is protected only in circumstances and to the extent necessary to give breathing room for the free debate of public issues....

Senate subcommittee wants review of hospital group purchasers exemption.(Brief Article)(Statistical Data Included)
May 6, 2002... The FTC/DOJ safety zone that shields joint health care purchasing arrangements from antitrust challenge is under Congressional scrutiny. A General Accounting Office study described at a Senate subcommittee hearing on April 30 concluded that...

Muris' sneak peek for Senate: Drug company strategies are changing.(Timothy Muris testifies at Senate hearing)(Brief Article)
May 6, 2002... The types of potentially anticompetitive strategies employed by pharmaceutical companies staving off competition from generics have changed direction following the Commission's enforcement actions in the Abbott/Geneva and Hoechst/Andrx cases,...

Senate: oil consolidation a major concern 1/3 of FTC BC budget spent on energy.(Federal Trade Commission Bureau of Competition)
May 6, 2002... "If concentration in the oil industry continues to increase, higher prices can be expected." - Senate Governmental Affairs Committee's Subcommittee on Investigations, April 29 report "The importance of antitrust law enforcement is...

Senate wary of AT&T/Comcast merger.(merger raises antitrust concerns)(Brief Article)
May 6, 2002... "We have been asking ourselves over and over: how is this [AT&T/Comcast merger] good for consumers? We know it's good for the companies - but what does it do for the average consumer?" Senate Antitrust Subcommittee Chairman Herb Kohl (D-Wisc.)...

1999 review of FTC Funeral Rule goes on : States should handle funeral home criminals.(Brief Article)
May 6, 2002... The states should use their criminal authority to tackle "the recent shocking incidents" in Georgia and Florida involving cemeteries and a crematorium, FTC Marketing Practices Associate Director Eileen Harrington testified at an April 26 Senate...

Computer industry merger enforcement.(Brief Article)
May 6, 2002... Merging high tech companies should sign waivers early on that allow European Commission (EC) and U.S. antitrust officials to exchange merger information, FTC Deputy Assistant Directors for the Mergers Il Shop Morris Bloom and Rhett Krulla...

Many current documents excluded FTC drafts quality information guidelines.(Federal Trade Commission)(Brief Article)
May 6, 2002... Following a public comment period, FTC Chief Information Officer Stephen Warren will submit the Commission's "Draft Guidelines for Ensuring and Maximizing the Quality, Objectivity, Utility, and Integrity of Information Disseminated by the FTC"...

Ex Sotheby's head gets one year + one day and a $7,500,000 fine.(former Chairman A. Alfred Taubman)(Brief Article)
May 6, 2002... The U.S. District Court in the Southern District of New York sentenced former Sotheby's Chairman A. Alfred Taubman to 1 year and one day in prison and a $7.5 million criminal fine for fixing sellers' commission rates at auctions for art,...

Computer Associates settles gun jumping charges.(Computer Associates International Inc.)(Brief Article)
May 6, 2002... Computer Associates International Inc. (CA) agreed to pay $638,000 in civil penalties and avoid prematurely merging business operations before any proposed deals clear premerger review as required by the HartScott-Rodino (HSR) Act In doing so,...

Hollings will be back, later.
May 6, 2002... Hollings will be back, later: A Senate Commerce Comittee hearing on the FTC-DOJ antitrust market division agreement, scheduled for Tuesday, May 7, has been postponed. Committee Chairman Ernest Hollings (D.S.C.) is leading the opposition to the...

Another kids' web site referral.(children's web site found to be violating privacy laws)(Brief Article)
May 6, 2002... Another kids' web site referral: The Children's Advertising Review Unit of BBB's National Advertising Review Council has told the FTC that quartermidgets.com is violating the Children's Online Privacy Protection Act. according to...

Microsoft once, Microsoft for life?(keeping operating systems with personal computer)(Brief Article)(Editorial)
May 6, 2002... Microsoft once, Microsoft for life? Thinking of donating a personal computer of the Wintel persuasion to a school, say, or a charity? Careful. Microsoft has been telling recipients of these used machines that they can't remove the operating...

New York Bar sues FTC.(Federal Trade Commission)(Brief Article)
May 6, 2002... New York Bar sues FTC: Are law firms and lawyers now so prosperous that they are to be considered "financial institutions"? However it arrived at its decision, the agency says it doesn't have authority to exempt lawyers from the privacy...

And then he said ...
May 6, 2002... And then he said...: "Europe's competition regime has reached maturity at the very time that U.S. antitrust regulation has returned to a more pro-business stance. Seizing the moment, EU Competition Commissioner Mario Monti has stepped forward...

Libbey/Anchor deal blocked; 2nd deal still harms competition.(Anchor Hocking)(Brief Article)
May 6, 2002... The first and third largest makers of food service glassware in the U.S. will not be allowed to consummate the $330 million acquisition by Libbey of Newell Rubbermaid Inc.'s Anchor Hocking subsidiary first proposed last June. Well, more...

Thompson favors `zero delta' divestitures FTC approves Golden Eagle divestiture.(Brief Article)
May 6, 2002... The FTC has approved Valero Energy Corp.'s divestiture of Ultramar Diamond Shamrock Corp.'s former "Golden Eagle GARB Refining and Marketing Assets" (one refinery, 70 California gas stations and related assets) for $1.1 billion to Tesoro...

FTC celebrates COPPA's second birthday.(Federal Trade Commission, Children's Online Privacy Protection Act)(Brief Article)
May 6, 2002... It's the FTC's Children's Online Privacy Protection (COPPA) Rule's second birthday -- and to celebrate the FTC announced that Ohio Art Co., maker of the Etch-A-Sketch drawing toy, frosted the cake with $35,000 to settle FTC allegations that its...

"You've won play station 2" spam allegedly drew kids to porn site.(Brief Article)
May 6, 2002... At the request of the FTC, the U.S. District Court for the District of Nevada invoked a temporary restraining order (TRO) against three companies and three individuals who allegedly deceptively lured hopeful winners of play stations to an...

Alleged credit card protection racket hands over $700,000.(Advanced Consumer Services)(Brief Article)
May 6, 2002... Advanced Consumer Services (ACS) agreed to hand over $700,000 for consumer redress to resolve FTC allegations that their telemarketing practices misrepresented humbug credit card "protection" packages. This is the largest redress settlement...

Toronto telemarketer down $111,000 for allegedly swindling U.S. consumers.(Reuben Ross)(Brief Article)
May 6, 2002... A Canadian telemarketer agreed to hand over more than $111,000 for consumer redress and find a new job to settle FTC charges that he and his businesses phoned tens of thousands of U.S. consumers to peddle bogus identity theft protection...

Online auctioneers forfeit $10,000.(Auctionsaver L.L.C.)(Brief Article)
May 6, 2002... Internet auctioneers vending computer-related products will relinquish $10,000 for consumer redress to resolve FTC allegations that they violated the Mail and Telephone Order Merchandise Rule by consistently failing to deliver computer-related...

Domain name masquerade.(Brief Article)
May 6, 2002... A Canadian company and its principal will pay $375,000 in consumer redress to resolve FTC charges that they violated the Telemarketing Sales Rule (TSR) by deluding consumers via unsolicited faxes that they needed to register variations of their...

Commission pretexting report to Congress.(Federal Trade Commission)(Brief Article)
May 6, 2002... As required by the Gramm-Leach-Bliley Act, the Commission's second annual report on FTC enforcement actions against "pretexting" -- obtaining financial information from financial institutions under false pretenses -- informed Congress that the...

Commission adds defendants to two complaints.(Federal Trade Commission, Ecommex Corp.)(Brief Article)
May 6, 2002... 1. The Commission added Ecommex Corp. as a defendant to its complaint against Capital Choice Consumer Credit, Inc., et al. alleging fraudulent telemarketing of advance-fee credit services. A named defendant in the complaint, Ricardo Martinez,...

Calendar.
May 6, 2002... May 8-9 - Second FTC public hearing on factors that affect prices of refined petroleum products; FTC Headquarters - Room 432, 600 Pennsylvania Ave. NW; May 8 - 10:00am-11:30am - Crude Oil and Supply Issues; 1:00pm-4:00pm - Refining, Bulk...

Justice Dept.-FTC antitrust clearance agreement: does it matter?[*].(U.S. Federal Trade Commission)(Brief Article)
May 20, 2002... The Senate Commerce Committee has not yet set a new date for the merger jurisdiction agreement hearing that was scheduled for May 7. Likewise, Committee Chairman Ernest "Fritz" Hollings (D-S.C.) has not yet met with FTC Chairman Timothy Muris...

How the agencies' clearance agreement can affect merger review outcomes.(U.S. Federal Trade Commission and Department of Justice)
May 20, 2002... The controversy over the recently announced clearance agreement and its allocation of industries between the two agencies has revolved around inflammatory issues of Congressional prerogative and the process under which the agreement evolved....

Should there be differences between the FTC and DOJ.(Federal Trade Commission, Department of Justice)
May 20, 2002... Should there be Differences between the FTC and DOJ ? Mr. Skitol's article sets forward three differences between the way that the FTC and DOJ approach mergers and suggests why these differences may be of "substantive significance." Whether...

Sixth Circuit backs $1.05 billion award in Sherman Act Sect. 2 snuff case.(United States Tobacco Co. vs. Conwood Company L.P., legal case)(Statistical Data Included)
May 20, 2002... "In Brook Group Ltd. v. Brown & Williamson Tobacco Corp., 509 U.S. 209 (1993), the evidence showed that following the defendant's alleged predation, output in the relevant market and market shares for others grew. Id. at 23334. The Court...

Foiled twice, Libbey tries again to escape a merger injunction.(Twice, Libbey, Inc., case with U.S. Federal Trade Commission)
May 20, 2002... Twice, Libbey, Inc. has faced the FTC in federal district court, trying to persuade Judge Reggie Walton that it should be allowed to consummate its proposed acquisition of rival glassware maker Anchor Hocking from Newell Rubbermaid Corp.,...

3rd Circuit panel says "false" ads warrant a preliminary injunction.(Johnson and Johnson Merck Consumer Pharmaceuticals Co., Novartis Consumer Health Inc. case)(Brief Article)
May 20, 2002... A U.S. district court found, and a 3-judge panel of the Third Circuit Court of Appeals agrees, that when Johnson & Johnson-Merck Consumer Pharmaceuticals Co. named an over-the-counter heartburn product Mylanta Night Time Strength, it made a...

Schumer asks new drug firm probe; Pharmacy groups spar on new tactic, Bush II.(Senator Charles Schumer)
May 20, 2002... Senator Charles Schumer (D-N.Y) wants the FTC to investigate whether drug makers pay pharmacies to send letters to patients encouraging them to switch to newer, more expensive versions of brand-name drugs. According to a recent Wall Street...

Hollings' privacy bill marked up: FTC would make rules to protect offline privacy.(Ernest F. Hollings, Online Personal Privacy Act, Srnate Commerce Committee approves bill)(Brief Article)
May 20, 2002... The Senate Commerce Committee voted 15-8 to approve Chairman Ernest "Fritz" Hollings' (D-S.C.) Online Personal Privacy Act (S.2201), and it now goes for a vote before the full Senate. To appease worried Committee Members, Hollings amended...

Final Financial Information Safeguards Rule.(U.S. Federal Trade Commission, changes to Gramm-Leach-Biley Act)(Brief Article)
May 20, 2002... As required by the Gramm-Leach-Bliley Act (GLB Act), the FTC completed a final Rule for safeguarding customer records and information that applies to the non-traditional financial institutions that are subject to its jurisdiction. The GLB...

EC/US antitrust convergence efforts: Remedies done; merger process, conglomerate mergers, efficiencies now on deck.(European Commission, U.S. antitrust agencies)(Brief Article)
May 20, 2002... The U.S. antitrust agencies and the European Commission (EC) are honoring a pledge they made last September to reinvigorate the process of convergence, Assistant Attorney General for Antitrust Charles James said at a forum sponsored by the...

Overhauling merger review.(U.S. Federal Trade Commission, regulations of mergers)(Brief Article)
May 20, 2002... "The Antitrust Division has begun a top-to-bottom review of its practices and policies with respect to seeking and securing remedies in merger enforcement, whether in litigation or through consent decree," Deputy Assistant Attorney General...

But is convergence possible?(William J. Kolasky addresses legal audience in England)(Brief Article)
May 20, 2002... The C-word was also on the mind of Deputy Assistant Attorney General for Antitrust William J. Kolasky who started it all in the first place. Kolasky told a British legal audience last week that while there had been many advances towards each...

Belgium's Solvay will divest U.S. assets to win OK for buying Italy's Ausimont.(Brief Article)
May 20, 2002... The Belgian chemical/drug company Solvay will divest its U.S. polyvinylidene fluoride (PVDF) operations, including a plant in Alabama and its interest in the Alventia joint venture that makes the main raw ingredient for PVDF, to resolve FTC...

Doctors' groups agree to do no harm.(Physician Integrated Services of Denver, Aurora Associated Primary Care Physicians)(Brief Article)
May 20, 2002... Two Denver-based physicians' groups, their physician leaders and agent have agreed to refrain from entering into fee-setting agreements and to refuse to deal with payors who don't accept collectively arranged terms. The settlement resolves FTC...

Rock hard abs with no sweat.(three complaints filed against marketers of electronic muscle stimulation devices)(Brief Article)
May 20, 2002... Alas, attaining "six pack" or "washboard" abs without exercise remains as likely as winning a marathon after adhering to a couch potato lifestyle. Hence, the FTC asked federal district courts to permanently enjoin companies and principals...

Three AOL/TW ISP agreements approved.(AOL Time Warner Inc.)(Brief Article)
May 20, 2002... As required by an April 2001 merger order, the Commission approved applications by America Online/Time Warner, Inc. (AOL/TW) to enter into agreements with three non-affiliated Internet Service Providers 1 cable divisions. They are: (1) Athena...

AOL/TW seek OK for ISP/cable agreement.(AOL Time Warner Inc.)(Brief Article)
May 20, 2002... AOL/TW requested FTC approval of a non-affiliated Internet Service Provider (ISP) and alternative cable broadband service agreement between Time Warner Cable (TWC) and Applied Technology Group (ATG) to provide cable broadband ISP service in...

Diageo divests Malibu rum assets.(Brief Article)
May 20, 2002... The Commission approved Diageols application to divest "Malibu Rum Assets" to Allied Domecq. FTC approval of the buyer is required by the December 21 FTC order for Diageo and Pernod Richard S.A.'s acquisition of Vivendi Universal S.A.'s Seagram...

Valero/UDS amends Golden Eagle divestiture.(Valero Energy Corp., Tesoro Petroleum Corp.)(Brief Article)
May 20, 2002... The FTC approved Valero Energy Corp.'s petition to amend its previously-approved divestiture of the "Golden Eagle Refinery Assets" to Tesoro Petroleum Corp [FTC: WATCH No. 588, May 6]. Since the divestiture was approved in April, Valero and...

Chevron/Texaco divestiture approved.(sale of Enterprise Fractionating Plant)(Brief Article)
May 20, 2002... The Commission OKled Chevron Corp. and Texaco 1s request to divest Texaco's interests in the Enterprise Fractionating Plant to Enterprise Products Operation, L.P, the present majority owner of the plant and its current operator. The FTC's...

Defendant added to Stock Value 1 case.
May 20, 2002... The Commission added Meristar International, Inc. as a defendant in its complaint against Stock Value 1 and Deborah Jenkins regarding allegedly fraudulent claims about devices to reduce electromagnetic radiation made by cell phones. At the time...

The following orders are final ...
May 20, 2002... Eli Lilly and Company File No. 012-3214 Contact: Mamie Kresses, 202-326-2070 Gynecology Medical Corporation of Napa Valley, et al. File No. 011-0153 Contact: Sylvia Kundig, 415-848-5188

Calendar.
May 20, 2002... May 22 - FTC Consumer Protection Bureau Director J. Howard Beales will testify before the House Judiciary Committee, Subcommittee on Courts, the Internet, and Intellectual Property on, "WHOIS Database"; Rayburn House Office Building, Room 2141,...