FTC: Watch articles from October 2000

FTC: Watch archives from October 2000

Closed investigations.(Brief Article)
October 9, 2000... The FTC has closed an investigation of the merger of Yellowstone Community Health Plan and Blue Cross Blue Shield of Montana, the two largest health insurance providers in Montana. In fact the investigation was closed in July, 1999, but the...

Posner on antitrust enforcement in the dynamic "new economy".(Brief Article)
October 9, 2000... "[A]ntitrust doctrine is supple enough, and its commitment to economic rationality strong enough, to take in stride the competitive issues presented by the new economy," but there simply aren't enough disinterested high-tech experts available...

Bliley: is imposed access Constitutional? AOL & Time Warner sole guests at House "interactive TV" Hearing.(Brief Article)
October 9, 2000... America Online CEO Steve Case and Time Warner CEO Gerald Levin, the only witnesses at a September 26 House Commerce Committee hearing on "The Future of the Interactive TV Services Marketplace," objected to being forced to open their network to...

Swedish Match & FTC closing arguments.(Brief Article)
October 9, 2000... Referring to falling demand for loose leaf tobacco generally favored by older, rural consumers, U.S. Dist. Judge Thomas Hogan wryly observed that "loose leaf tobacco users are a dying breed" during closing arguments of the FTC's challenge of...

FTC closes Intel investigations.(unfair competition methods, acquisition of Chips and Technologies and equity in Real3D)(Brief Article)
October 9, 2000... The FTC has closed its three-year investigation into whether Intel engaged in "unfair methods of competition... in the development or sale of microprocessors or other computer components or related intellectual property," says a September 22...

Commissioner Thompson on B2B trends.(Brief Article)
October 9, 2000... The recent Commission decision not to challenge the Covisint B2B autoparts venture represents a cautionary flag rather than a green flag, Commissioner Mozelle Thompson cautioned high tech participants in the e=B2 Conference in Boston on October...

Kohl, Leahy ask dairy pricing investigation : Farmers need more antitrust lawyers!(Senate Antitrust Ranking Member Herb Kohl)(Brief Article)
October 9, 2000... Senate Antitrust Ranking Member Herb Kohl (D-Wisc.) and Senate Commerce Committee Ranking Member Patrick Leahy (D-Vt.) have urged Attorney General Janet Reno to investigate whether unfair business practices play a role in an alleged disparity...

Kohl and DeWine urge Monti to go merger surfing U.S.A.(European Competition Commissioner Mario Monti)(Brief Article)
October 9, 2000... Antitrust Subcommittee Chairman Mike DeWine (R-Ohio) and Ranking member Herb Kohl (D-Wisc.) urged European Competition Commissioner Mario Monti to encourage EC antitrust busters to treat American companies wanting to acquire European companies...

FTC to Congress: we're a bargain.(Brief Article)
October 9, 2000... The FTC plans to save consumers at least $4 billion by challenging anticompetitive mergers, the agency announced in its Strategic Plan for Fiscal Years 2000-2005, as required by the Government Performance and Results Act. The report was...

Watch your step: Civil penalties up.(Brief Article)
October 9, 2000... The FTC will adjust civil penalty amounts for inflation by 10% effective November 20 as required under the Federal Civil Penalties Inflation Adjustment Act of 1990 and amended by the Debt Collection Act of 1996. Civil penalty amounts for...

FTC staff: ban sale of nonpublic bankruptcy data.(Brief Article)
October 9, 2000... The commercial use of personal bankruptcy nonpublic data should be prohibited, FTC Consumer Protection Bureau staff recently advised the Justice Dept., the Treasury Dept., and the Office of Management and Budget, who are examining how...

COPA Commission gets ready to write report for Congress.(Commission on Child Online Protection)(Brief Article)
October 9, 2000... The Commission on Child Online Protection (COPA - not to be confused with COPPA, the Act) Commission has finalized its report to Congress. The report is due to Congress by October 21. Apart from FTC Advertising Practices Assistant Director...

High Tech warranty protection workshop.(Brief Article)
October 9, 2000... The Commission will hold a public Forum on Warranty Protection for High-Tech Products and Services on October 26 and 27 at the FTC Headquarters, 600 Pennsylvania Ave. NW, Washington, DC 20580. The forum will explore warranty protection for...

Pitofsky contrasts the likely face of antitrust under Bush or Gore.(Brief Article)
October 9, 2000... Would a Bush or Gore administration be better for antitrust? a reporter asked FTC Chairman Robert Pitofsky last week. Pitofsky, who had earlier declined to touch this subject publicly, said he had been an outspoken critic of antitrust...

Merger watch.(Dow Chemical Co.)(Brief Article)
October 9, 2000... Merger watch: The FTC staff is preparing to litigate to block Dow Chemical's pending acquisition of Union Carbide Corp. if Dow can't settle its differences with BP Amoco, FTC:WATCH has learned. The antitrust staff wants Dow to divest its half...

Casket wars.(National Casket Retailer's Association)(Brief Article)
October 9, 2000... Casket wars: The National Casket Retailer's Association, self-described as a non-profit organization that "acts as a funeral industry watchdog to ensure consumers' rights are upheld when planning funerals," says it is locked in combat with...

Milk wars.(Brief Article)
October 9, 2000... Milk wars: A class-action suit filed in Cook County, Ill. claims that the defendants, Jewel Food Stores and Dominicks Supermarkets, "charge substantially higher prices and enjoy substantially larger profit margins on milk sales in the...

It's my party ... and you're probably not invited.(Brief Article)
October 9, 2000... It's my party... and you're probably not invited: The October 9 New York Times reported that Microsoft will host a 25th anniversary party in Washington on October 10. On Pennsylvania Ave. NW. According to the Times, no one from the...

Correction.(Correction Notice)
October 9, 2000... The FTC has closed its investigation of Barr Laboratories, Inc. and DuPont Pharmaceuticals in connection with Barr's anticoagulant Warfarin, which competes with DuPont's Coumadin brand. [FTC:WATCH No. 551]

Diamond Products order eased.(Brief Article)
October 9, 2000... Over the objections of the Halliburton Company, the Antitrust Division has persuaded a federal court to modify an April 12, 1994 order against Diamond Products International, relieving Diamond of a ban on certain acquisitions. In place of...

Graphite electrode cartel trial: Government alleges counsel interest conflict.(Brief Article)
October 9, 2000... The Justice Dept. is objecting to the Mitsubishi Corp.'s employment of lawyers from Paul Weiss Rifkind Wharton & Garrison in defending against charges that Mitsubishi participated in a cartel to fix the price of graphite electrodes. The...

ADM executives resentenced to serve additional jail time.(Archer Daniels Midland, Michael D. Andreas, Terrance S. Wilson)(Brief Article)
October 9, 2000... U.S. District Judge Blanche M. Manning has resentenced former Archer Daniels Midland executives Michael D. Andreas and Terrance S. Wilson for their roles in a conspiracy to fix prices and allocate sales in the lysine market worldwide. ...

Republic to sell waste collection assets.(Republic Services Inc.)(Brief Article)
October 9, 2000... Republic Services Inc. will sell its Akron/Canton, Ohio small container commercial waste collection assets in order to proceed unchallenged with its $55 million acquisition of Allied Waste Industries Inc.'s Akron/Canton hauling assets and...

Sotheby's to pay $45 million fine to settle auction commission price-fixing charges.(Brief Article)
October 9, 2000... Sotheby's Holdings Inc. -- one of the world's largest auction houses -- has agreed to plead guilty and pay a $45 million fine for fixing the price of commission rates charged to sellers of art, antiques, and other collectibles at auctions....

Business Review Letter: Protecting the power grid from cyber terrorists.(Assistant Attorney General Joel I. Klein)(Brief Article)
October 9, 2000... On his way out the door, Assistant Attorney General Joel I. Klein approved the Electric Power Research Institute, Inc.'s plan for "a proposed information exchange designed to reduce security risks in the energy industries presented by the...

Boeing gets Hughes.(Brief Article)
October 9, 2000... Boeing will establish firewalls to ensure the confidentiality of launch vehicle and satellite information to win antitrust approval from the FTC, Defense Dept. and European Commission for its proposed $3.75 billion acquisition of Hughes Space &...

1996 transaction challenged : Manheim to divest 9 auctions.(Manheim Auctions Inc.)(Brief Article)
October 9, 2000... The leading U.S. wholesale motor vehicle auction operator, Manheim Auctions, Inc., and the third largest, ADT Automotive Holdings, Inc. will divest nine auctions in seven geographic markets to ADESA Corp to win antitrust clearance for their...

Agrium divests deepwater terminals to grow with Unocal's fertilizers.(Brief Article)
October 9, 2000... Agrium will divest deepwater terminals and terminal leases in Oregon, Idaho, and Washington to J.R. Simplot Company to win FTC approval for its proposed $325 million purchase of Union Oil Co. of California's (Unocal) two nitrogen fertilizer...

Consumer Sentinel helps swift response to illegal billing by British net porn scammers.(Brief Article)
October 9, 2000... A British company received an order freezing its assets and halting its operations pending trial, after the FTC charged that it billed more than 110,000 U.S. consumers an average of $225 for unauthorized long-distance charges connected to...

Swindle & Leary dissent: why not name the guy who is the company? Stock market investment companies settle.(Brief Article)
October 9, 2000... Two companies founded by a former cab driver turned stock market advisor have agreed to refund millions of dollars and disclose actual rates of return in future to settle FTC charges that their investment advice was bogus. The FTC's...

Herbal dietary supplements sheds weight.(Brief Article)
October 9, 2000... Weider Nutrition International Inc. has agreed to pay $400,000 to FTC settle charges that it made unsubstantiated claims about two weight-loss diet supplements, PhenCal and PhenCal 106. Weider agreed to provide competent and reliable...

FTC pulls plug on more office supply scams.(Brief Article)
October 9, 2000... Under "Operation Copy Con," the FTC filed suits in federal district courts against three more companies accused of violating the FTC Act and Telemarketing Sales Rule by office supply fraud. All the cases involved allegations of "toner-phoner"...

The following orders are final:.(Brief Article)
October 9, 2000... QBI, Inc. and its owner Jeffrey Allen Donohue -- The Commission approved a stipulated final judgment requiring QBI to disclose the terms, conditions and fees needed to redeem its travel vouchers. And, if the company uses the terms "standard" or...

FTC approved divestitures:.(Brief Article)
October 9, 2000... Dominion Resources will divest Consolidated Natural Gas Co.'s subsidiary, Virginia Natural Gas Company, Inc., to AGL Resources Inc. (AGL). Commissioner Thomas B. Leary did not participate. Docket No. C-3901; Contact: Roberta Baruch,...

Public comment periods are extended for:.(Brief Article)
October 9, 2000... Privacy Safeguards Rule -- for implementing relevant sections of the Gramm-Leach-Bliley Act -- until October 24. Label comments "Gramm-Leach-Bliley Act Privacy Safeguards Rule, 16 CFR Part 3 -Comment" and send to the Secretary, FTC, Room H-159,...

Epic Resorts complaint amended TILA.(Brief Article)
October 9, 2000... The FTC has amended its complaint with Epic Resorts, et al., brought under "Operation Travel Unravel," to allege that the defendants violated the Truth in Lending Act (TILA) and its implementing Regulation Z by failing to issue credits to...

Alliant order modified to say prior notice sufficient.(Brief Article)
October 9, 2000... The Commission has approved a request by Alliant Techsystems, Inc. to reopen and modify a 1993 FTC order that prohibited Alliant from buying or selling interests or assets of a system contractor for 30mm lightweight ammunition or 120mm tank...

Calendar.
October 9, 2000... October 11 - FTC Chairman Robert Pitofsky will testify about "Recent Developments In Privacy Protections For Consumers" at the House Commerce Committee's Telecommunications Subcommittee, 2123 Rayburn House Office Bldg., Washington FTC...

After five and a half years at the helm, Assistant Attorney General for Antitrust Joel I. Klein has announced his departure.(Brief Article)
October 9, 2000... After five and a half years at the helm, Assistant Attorney General for Antitrust Joel I. Klein has announced his departure from the Antitrust Division at the end of this month. Klein's Principal Deputy Doug Melamed will become acting assist...

Melamed has named John M. Nannes.(Doug Melamed, Federal Trade Commission)(Brief Article)
October 9, 2000... Melamed has named John M. Nannes acting principal deputy assistant attorney general beginning immediately. Nannes has been serving as deputy assistant attorney general since February 1998, supervising the Civil Task Force, the Computers and...

That out of the way, Melamed named Jeffrey H. Blattner.(Doug Melamed, Federal Trade Commission)(Brief Article)
October 9, 2000... That out of the way, Melamed named Jeffrey H. Blattner a deputy assistant attorney general. Blattner has been special counsel for information technology in the Division since 1998, advising Klein on the Microsoft case. As a deputy at the...

FTC annual awards.(Federal Trade Commission)(Brief Article)
October 9, 2000... FTC annual awards : Ninety-five FTC staff members who worked on the Exxon-Mobil/ BPARCO case -- from the Competition, Economics and Consumer Protection Bureaus, and Offices of the Executive Director, General Counsel, Northwest and Western...

District court denies FTC P.I. motion in Heinz/Beech-Nut merger.(Brief Article)
October 23, 2000... According to U.S. District Judge James Robertson (D.D.C.), who denied the FTC's Complaint for a preliminary injunction blocking H.J. Heinz Co.'s acquisition of Beech-Nut baby food: * Gerber Products Co.'s "65 percent market share results...

HSR reform showtime on Capitol Hill.(Brief Article)
October 23, 2000... Late last week, the Senate unanimously passed a hotlined version of the Hart-Scott-Rodino (HSR) Improvement Act of 1999 (S. 1854) that would, if enacted, raise the HSR premerger filing thresholds from $15 million to $50 million. The HSR filing...

FTC seeks OMB nod to study generic drug competition & Hatch-Waxman Act reform.(Brief Article)
October 23, 2000... Is the 1984 Hatch-Waxman Act due for an overhaul? Jumping into the thick of yet another high-profile issue -- in addition to marketing media violence to kids and gasoline prices --, the FTC wants to study just how well competition in the lower...

FTC: parties should do their bit to speed up cross border merger approval.(Brief Article)
October 23, 2000... Parties seeking antitrust approval for cross border mergers can do an awful lot to help cooperation among transjurisdictional antitrust authorities, FTC Assistant to the Competition Director Geoffrey D. Oliver advised antitrust counsel last...

Pitofsky wishes Indonesia good luck with ambitious new competition law.(Brief Article)
October 23, 2000... "I wish you good luck," FTC Chairman Robert Pitofsky told Indonesian antitrust officials attending a Georgetown University Law Center program on Indonesia's new competition law last week. The law gives Indonesian authorities 90 days to...

Broadband ISP competition: DeWine, Kohl concerned, GAO finds regulatory conundrum.(Internet service providers)(Michael DeWine, Herb Kohl)(General Accounting Office)(Brief Article)
October 23, 2000... Senate Antitrust Chairman Mike DeWine (R-Ohio) and Ranking Member Herb Kohl (D-Wisc.) expressed concern about reduced competitive options for growing numbers of broadband internet users in response to a General Accounting Office (GAO) study...

DOJ eyes technology licensing practices of world's biggest semiconductor supplier.(Department of Justice)(Applied Materials Inc.)(Brief Article)
October 23, 2000... The Justice Department is scrutinizing the way the world's largest supplier of products and services to the global semiconductor industry, Applied Materials, Inc.'s licenses technology. Company spokesmen said that they did not know what had...

Hyde wants FTC to investigate natural gas prices.(Henry Hyde)(Brief Article)
October 23, 2000... House Judiciary Committee Chairman Henry Hyde (R-Ill) wants the FTC to investigate natural gas prices and asked the agency to do so, stacking another antitrust probe on top of an investigation into high gasoline prices in the MidWest that he...

Survey: most B2B execs back FTC scrutiny B2B'ers emphasize achieving critical mass.(business-to-business)(Federal Trade Commission)(Brief Article)(Polling Data)(Statistical Data Included)
October 23, 2000... The trend towards consolidation within e-marketplaces will continue, and the FTC needs to keep on top of it, according to half of the business-to-business (B2B) executives surveyed by Ernst & Young LLP recently. A comfortable majority --...

Merger watch.(Brief Article)
October 23, 2000... Merger watch: Transocean Sedco Forex Inc. and R&B Falcon Corp. have received second requests from the Justice Dept for more information about Transocean's proposed acquisition of R&B. Both companies pledged to "respond promptly to the...

FTC FY 2001 funding.(Federal Trade Commission)(fiscal year)(Brief Article)
October 23, 2000... FTC FY 2001 funding: It is still not certain if the Senate FY 2001 Commerce, Justice, State appropriations bill (S.4690) will fully include the FTC's requested 30% increase to $159.5 million. The agency asked for an extra 150 staff -- 85 for...

Speaking of supermarkets.(Giant Super Markets Inc. letter demanding help from suppliers may launch extortion investigation)(Brief Article)
October 23, 2000... Speaking of supermarkets: The Giant Supermarket chain has written to small and large manufacturers/suppliers demanding help in revamping their stores, FTC: WATCH has learned. Sources say Giant congenially suggests that donations of either...

Drug wars and IP.(intellectual property)(Brief Article)
October 23, 2000... Drug wars and IP: In June, FTC Commissioner Sheila F. Anthony discussed prescription drugs and the antitrust implications of agreements involving intellectual property at an ABA "Antitrust and Intellectual Property: The Crossroads" program,...

Y2k -- a very good year for antitrust.(merger policies saved $1 billion for consumers)(Brief Article)(Statistical Data Included)
October 23, 2000... Y2k -- a very good year for antitrust: The FTC noted on October 13 that it wrapped up "a record year in antitrust enforcement" and reiterated estimations that its actions in merger and non merger areas saved U.S. consumers $1 billion during the...

Now, that's innovation.(rising computer use costs)(Brief Article)
October 23, 2000... Now, that's innovation: The October 18 issue of eWEEK reports that Gartner Group analysts have concluded that "Microsoft's licensing terms over the last five years have driven up per-user costs by 300 percent." This revelation surfaced at a...

During the 1998 presidential election campaign.(Federal Trade Commission's political statements)(Brief Article)
October 23, 2000... During the 1998 presidential election campaign, the FTC issued a press release attacking Massachusetts Gov. Michael Dukakis' policy positions, producing an uproar in Congress, particularly from the House Commerce Committee's Oversight and...

Speedy antitrust trials.(Brief Article)
October 23, 2000... Speedy antitrust trials: Several years ago (make that many years ago), in answer to the question at an Antitrust Section Spring Meeting, "What should be done about dual federal enforcement of the antitrust laws?", former Assistant Attorney...

Words to remember.
October 23, 2000... Words to remember: "It would be a rarity for the FTC to go to court - and it usually only takes that approach when it think it will win." [emphasis added] - Alec Klein, Washington Post Oct. 14 (FTC, AOL remain divided on merger; Both sides dig...

Wells Fargo sacrifices 3 branches, promises not to block other banks from acquiring any branches it closes.(Brief Article)
October 23, 2000... Wells Fargo & Company will divest three Brenton Banks Inc. branches with $129 million in deposits in Des Moines to avoid a Justice Dept. challenge to its acquisition of Brenton. Wells Fargo will also bundle the commercial loans associated...

That new Global Competition Initiative in increasing economic globalization.(Brief Article)
October 23, 2000... According to Acting Assistant Attorney General A. Douglas Melamed, in today's world economy, "roughly 60,000 multinational companies and their 500,000 foreign (including U.S.) affiliates account for about one fourth of total global output." And...

Report from Canada : Final Canadian IP Guidelines released.(intellectual property)
October 23, 2000... The Canadian Competition Bureau (the "Bureau") released the final Intellectual Property Enforcement Guidelines (the "Guidelines") on September 21, 2000. This followed the publication of two drafts of the Guidelines, which were circulated for...

Tyco to divest endotracheal tube business to win Mallinckrodt.(business sold to Hudson RCI)(Brief Article)
October 23, 2000... Tyco International Ltd., a diversified manufacturing and service company agreed to divest its endotracheal tube business to Hudson RCI with 'crown jewel' divestiture provisions, to win the FTC's approval of its proposed $4.2 billion acquisition...

Another blow to freedom to innovate : FTC slaps Microsoft's Web-TV with deceptive ad charges.(Brief Article)
October 23, 2000... Microsoft's Web TV subsidiary has settled FTC charges that it engaged in deceptive advertising by promoting its Internet appliance as the rough equivalent of a personal computer able to access Internet content just like a real computer. ...

Canadian cross-border lottery scam FTC may get $19.7 million for consumers.(Windermere Big Win International Inc.)(Brief Article)
October 23, 2000... U.S. District Judge James B. Zagel N. D. of Ill.) has ordered Windermere Big Win International, Inc. and assorted associates to stay out of the U.S. telemarketing business in any form and to hand the FTC $19.7 to be used for consumer redress....

Hard-sell, home-based biz-op sellers cough up $22,000.(SOHO Technologies, Inc.)(Brief Article)
October 23, 2000... Two companies and their principals -- who allegedly invited consumers to transform their "lives, income, and future" by investing in their questionable home-based business opportunities -- agreed to cough up $22,000 to settle FTC charges that...

Calendar.(Brief Article)
October 23, 2000... October 26-27 - FTC Public Forum on Warranty Protection for High-Tech Products, FTC headquarters; contact: Daniel R. Salsburg, Consumer Protection Bureau, 202-326-3402 Friday, October 26, 6:00-7:15pm - Commissioner Mozelle W. Thompson will...

Key Investment, Inc.(Vance K. Opperman)(Brief Article)
October 23, 2000... Key Investment, Inc. CEO Vance K. Opperman has joined the American Antitrust Institute's Advisory Board. Opperman is a former president of West Publishing Co. and a veteran antitrust attorney

Correction.(Brief Article)
October 23, 2000... Last issue we told you that Mike McFalls had departed FTC Chairman Robert Pitofsky's office "leaving attorney advisors Gregg H. Vicinanza and Simon A. Steel to man the ship." Let us note with an apology that Lois C. Greisman has been womaning...