unsubstantiated claims is prohibited

Clear Choice Housewares, Inc. based in Leominster, Massachusetts, was a customer of an additive manufacturer called Bio-Tec Environmental. The Federal Trade Commission today announced six enforcement actions, including one that imposes a $450,000 civil penalty and five that for the first time address biodegradable plastic claims, as part of the agency’s ongoing crackdown on false and misleading environmental claims. Trump was once ahead in the crucial battlegrounds of Pennsylvania, Wisconsin and Michigan, but his leads dwindled when additional ballots were counted. The Commission vote to issue the administrative complaint against ECM Biofilms was 4-0. They prohibit the four companies from making biodegradability claims unless the representations are true and supported by competent and reliable scientific evidence. “This election is about great voter fraud, fraud that has never … AbstractThis paper explores the differences between policies prohibiting false claims about product quality and policies requiring adequate prior testing to substantiate specific claims of quality. Read the latest issue.Established in 1958, The Journal of Law and Economics publishes research on a broad range of topics including the economic analysis of regulation and the behavior of regulated firms, the political economy of legislation and legislative processes, law and finance, corporate finance and governance, and industrial organization. Ginni Thomas is using her Facebook page to amplify unsubstantiated claims of corruption by Joe Biden. Unsubstantiated definition is - not proven to be true : not substantiated. “It’s no secret that consumers want products that are environmentally friendly, and that companies are trying to meet that need,” said Jessica Rich, Director of the Federal Trade Commission’s Bureau of Consumer Protection. Moreover, the complaint alleges that ECM has no substantiation to support its claims that its additive makes plastic biodegradable. The FTC can seek additional penalties if AJM violates the new order in the future. Clear Choice’s marketing materials claimed its products were biodegradable based on the application of a Bio-Tec product called Eco Pure. According to the FTC, through its recent marketing practices, AJM violated a July 19, 1994, Commission consent order that barred it from representing that any product or package is degradable, biodegradable, or photodegradable unless it had competent and reliable scientific evidence to substantiate the claims. The proposed consent orders also make it clear that ASTM D5511 (a test standard commonly used in the additive industry) cannot substantiate unqualified biodegradable claims or claims beyond the results and parameters of the test, and that any testing protocol used to substantiate degradable claims must simulate the conditions found in the stated disposal environment. His overarching claim: “This election is about great voter fraud, fraud that has never been seen like this before.” The vote to approve the stipulated final order was 4-0. Example: Campaign must not focus on the alleged sexual orientation of a celebrity. All of these cases are part of the FTC’s program to ensure compliance with the agency’s recently revised Green Guides. She is a longtime conservative activist who … The AP's Mark Sherman explains, "The wife of Supreme Court Justice Clarence Thomas is using her Facebook page to amplify unsubstantiated claims of corruption by Joe Biden. AJM manufactures paper products, including paper plates, cups, bowls, napkins, and bags, for sale throughout the United States. Comments also can be filed electronically: The Commission vote approving the complaint against AJM was 5-0, with former Chairman Jon Leibowitz and former Commissioner J. Thomas Rosh participating. ... like the claim that it offers the “World’s best CPU performance-per-watt”. This is also a relevant policy question in the US, as a Federal Such a defense has succeeded in one recent case and failed in another. The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. It claimed, with no qualification, that the Eco-One product makes it plastic rebar cap covers “100 % biodegradable.”. The proposed consent orders settling the FTC’s complaints are essentially the same. While Republicans may want to give Trump time to … Clinging to notions of widespread vote rigging that his own attorney general has disputed, President Donald Trump repeated a litany of baseless assertions Wednesday of political corruption, machine tampering and mysterious votes appearing out of nowhere that allowed Joe Biden to steal the election. In the civil penalty case, the FTC filed a complaint and consent order against a company for violating a 1994 FTC order that prohibited it from making unsupported green claims for its paper plates and bags. © 2013 by The University of Chicago. For terms and use, please refer to our Terms and Conditions is overly broad in the sense that any unsubstantiated claims that are false are already prohibited, and that unsubstantiated true claims are not problematic. Further, prosecutors announced the lifestyle company is prohibited from stating claims “regarding the efficacy of its products without possessing competent and reliable scientific evidence, and from manufacturing or selling any misbranded, unapproved, or falsely-advertised medical devices.” 202-326-3424 This page was posted on August 27, 2006. stantiation is both overly broad and redundant to the false-claims ban—in par- ticular, that unsubstantiated claims that are false are prohibited by the false- claims ban, and that unsubstantiated claims that are true are not problematic and should not be penalized. The company’s marketing materials claimed that the ECM additive made its products biodegradable. In addition, the FTC today posted a new blog for consumers to help them understand the issues surrounding biodegradable plastics claims in order to make informed purchasing decisions. The agreement also prohibits unsubstantiated claims that any edible oil has the relative or absolute ability to cause or contribute to any health benefit, or has a favorable impact on any physiologic function or risk factor for disease. The packaging for AJM’s paper plates also prominently stated that they are “recyclable.”. These include: 1) “Environmental Claims – Summary of Green Guides,” a four-page summary of the changes in the Guides; 2) “The Green Guides,” a video explaining highlights of the changes; 3) a new page on the FTC Business Center, with links to legal documents, the Guides and other “green” content; 4) a Business Center blog post; and 5) related consumer information. Since its origins in 1890 as one of the three main divisions of the University of Chicago, The University of Chicago Press has embraced as its mission the obligation to disseminate scholarship of the highest standard and to publish serious works that promote education, foster public understanding, and enrich cultural life. Based on this conduct, the FTC’s complaint charges AJM with violating the 1994 order by failing to have competent and reliable evidence to substantiate claims that:  its products will biodegrade within one year when disposed in a landfill; its products will compost in a safe and timely manner in a home composting pile; and its paper plates are recyclable. Many of Trump’s claims have been debunked repeatedly in recent weeks. This item is part of JSTOR collection The complaint was referred to the Department of Justice and then back to the FTC. Request Permissions. To access this article, please, Access everything in the JPASS collection, Download up to 10 article PDFs to save and keep, Download up to 120 article PDFs to save and keep. ECM Biofilms, Inc. is based in Ohio and markets its additives (which allegedly make plastic products biodegradable) under the trade name MasterBatch Pellets. Each of the FTC’s plastics matters and, where appropriate, the proposed consent order, and the paper products civil penalty settlement are detailed below. Washington, Nov 18: US President Donald Trump on Tuesday night fired his administration’s most senior cybersecurity official responsible for securing the presidential election, Christopher Krebs, who had systematically disputed Trump’s false declarations in recent days that the presidency was stolen from him through fraudulent ballots and software glitches that changed millions of votes. option. You must have appropriate support for all statements that you make. 9 synonyms of unsubstantiated from the Merriam-Webster Thesaurus, plus 44 related words, definitions, and antonyms. Examples of unsubstantiated claim in a sentence, how to use it. JSTOR®, the JSTOR logo, JPASS®, Artstor®, Reveal Digital™ and ITHAKA® are registered trademarks of ITHAKA. Find another word for unsubstantiated. Mitchell J. KatzOffice of Public Affairs Clear Choice sold what it claims are biodegradable, reusable plastic food storage containers on its website, as well as in retail stores nationwide. Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources. For qualified claims, the companies must state the time required for compete biodegradation in a landfill or the time to degrade in a disposal environment near where consumers who buy the product live. The post, “Green” Claim Check,” can be found on the FTC’s website. The FTC alleges that Trudeau violated the order by making false and unsubstantiated claims about Coral Calcium Supreme, and also by making unsubstantiated claims about Biotape. How to use unsubstantiated in a sentence. Joe Biden’s campaign rejected assertions made in a published report that were based on unverified material from Trump allies. ... LLC. NOTE:  The Commission authorizes the filing of a complaint when it has “reason to believe” that the law has been or is being violated, and it appears to the Commission that a proceeding is in the public interest. Interested parties can submit written comments electronically or in paper form by following the instructions in the “Invitation to Comment” part of the “Supplementary Information” section. ©2000-2020 ITHAKA. In 1990, the United States Congress passed a sweeping truth-in-labeling law called the Nutrition Labeling and Education Act. The FTC’s website provides free information on a variety of consumer topics. The agreements will be subject to public comment for 30 days, beginning today and continuing through November 29, 2013, after which the Commission will decide whether to make the proposed consent orders final. Despite the terms of the order, AJM began making new environmental claims for a number of its papers products, including claims that they were “biodegradable,” “compostable” or both. The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. (AJM Packaging Corporation), Katherine JohnsonBureau of Consumer Protection Unsubstantiated definition: A claim , accusation , or story that is unsubstantiated has not been proved to be valid... | Meaning, pronunciation, translations and examples The Commission complaint charges ECM with violating the FTC Act by misrepresenting that: 1) ECM plastics (plastics made with ECM additives) are biodegradable and will completely break down within a reasonably short period of time after customary disposal; 2) ECM plastics are biodegradable in a landfill; 3) ECM plastics are biodegradable in a stated qualified timeframe; and 4) that various scientific tests prove ECM’s biodegradability claims. JSTOR is part of ITHAKA, a not-for-profit organization helping the academic community use digital technologies to preserve the scholarly record and to advance research and teaching in sustainable ways. On Saturday, a group of voters dropped a lawsuit that had made unsubstantiated claims alleging some votes cast for Trump were not counted in Maricopa County because voters used Sharpie pens. AJM Packaging Corporation. Making False Claims: What’s Next? It advertises its additives on its website and through marketing materials, such as fliers and brochures that are available to distributors and manufacturers that incorporate ECM additives into their products. ). Read your article online and download the PDF from your email or your account. 20 examples: I am aware only of one unsubstantiated claim. In settling the FTC’s current complaint, AJM agrees to vacate the prior Commission ... or any unsubstantiated claims about a product, a company, or any other entity. With a personal account, you can read up to 100 articles each month for free. Claims that the opposition is trying to "steal" the election.Across the world, many were scratching their heads Friday Washington, Nov 13: Outgoing US President Donald Trump's unsubstantiated claims of election fraud is one more step in delegitimising not just the incoming Biden administration, but democracy generally, his predecessor Barack Obama has said. - That decision is based on the… The court order also requires AJM to pay a $450,000 civil penalty for violating the 1994 order and enjoins AJM from violating the new order. The Journal has published some of the most influential and widely cited articles in these areas. BOGOTA — Demands to stop the vote count. Consistent with the Green Guides, the companies must have evidence that the entire plastic product will completely decompose into elements found in nature within one year after customary disposal (defined as disposal in a landfill, incinerator, or recycling facility) before making any unqualified biodegradable claim. Carnie Cap advertised the caps on its website and sold them through various distributors nationwide. The Commission publishes the Guides to help businesses market their products accurately, providing guidance as to what constitutes deceptive and non-deceptive environmental claims. The FTC recently released several business and consumer education resources designed to help users understand its Green Guides and environmental marketing in general. Based in Bloomfield Hills, Michigan, the company touts itself as a “leading manufacturer of these products,” and refers to its lunch bags and Green Label paper plates as national brand leaders. All Rights Reserved. AJM made these claims for some of its most popular products, including:  Nature’s Own Green Label and Gold Label papers plates, AJM lunch bags, AJM grocery bags, and Bio-Save Lawn & Leaf Bags. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). Finally, the complaint charges ECM with providing its customer and independent distributors – through the distribution of its promotional materials – with the means to deceive consumers. Vote expected on Prohibited Restrictive Covenants Act ... to Trump’s unsubstantiated claims. Access supplemental materials and multimedia. CHAMP sold the tees both online and in brick and mortar stores throughout the United States. The order has the force of law when approved and signed by the district court judge. Comments in paper form should be mailed or delivered to:  Federal Trade Commission, Office of the Secretary, Room H-11, and 600 Pennsylvania Avenue, N.W., Washington, DC 20580. C-3402. Alternatively, the companies may state the rate and extent of degradation in a landfill or other disposal facility accompanied by an additional disclosure that the stated rate and extent do not mean that the product will continue to decompose. According to the complaint, ECM also issues its own “Certificates of Biodegradability of Plastic Products,” which ECM allegedly uses to convince its customers and end-use consumers that its additive makes plastic products biodegradable. The FTC alleges that APM advertised its plastic shopping bags on its website as biodegradable, and sold them to distributors nationwide. The FTC filed the complaint and stipulated order in the U.S. District Court for the District of Columbia on October 1, 2013. The FTC alleges that Clear Choice made false and unsubstantiated claims that Eco Pure made its products “quickly biodegradable in landfills.”, Carnie Cap, Inc., based in East Moline, Illinois, incorporated Eco-One, an additive manufactured and marketed by Ecologic, into its plastic rebar cap covers. This statute requires food manufacturers and processors to provide nutrition information on most foods and prohibits them from making scientifically unsubstantiated health claims. The Commission vote to accept the consent agreement packages containing the proposed consent orders for public comment in each of the four biodegradable plastics cases was 4-0. Related Documents. You have to follow certain rules if you want to make a nutrition claim (for example, low fat) or a health claim (for example, calcium helps maintain normal bones). Apple Unveils New Macs With Custom M1 CPUs And Big Unsubstantiated Performance Claims. It develops a model in which firms have private information about their type—represented by their probability of having a high-quality product—and can acquire additional private information about their product quality through costly testing and learning. The notice order attached to the complaint would, among other things, prohibit ECM from engaging in each violation alleged in the complaint. FTC File No. President Donald Trump's supporters began gathering in Washington on Saturday for a protest to back his unsubstantiated claims of election fraud … unsubstantiated: See: baseless , implausible , inconclusive , theoretical , unconfirmed , uncorroborated , unsupported The Commission also has new information for businesses, “Grading your degradability claims: The latest for green marketers.”. Baseless accusations of fraud. “But companies that don’t have evidence to support the environmental claims they make about their products erode consumer confidence and undermine those companies that are playing by the rules.”. Select the purchase 202-326-2185, Office of Equal Employment Opportunity and Workplace Inclusion, Reporting Fraud, Waste, Abuse or Mismanagement, What You Need to Know About the Office of the Inspector General, Companies and People Banned From Debt Relief, Statute, Rules and Formal Interpretations, Post-Consummation Filings (HSR Violations), Retrospective Review of FTC Rules and Guides, Other Applications, Petitions, and Requests, Magnuson-Moss Warranty Public Audit Filings, International Technical Assistance Program, Competition & Consumer Protection Authorities Worldwide, Hearings on Competition & Consumer Protection, List a Number on the National Do Not Call Registry, File Documents in Adjudicative Proceedings, The notice order attached to the complaint, “Environmental Claims – Summary of Green Guides,”, “The Green Guides,” a video explaining highlights of the changes, page on the FTC Business Center, with links to legal documents, Grading your degradability claims: The latest for green marketers, free information on a variety of consumer topics, Administrative Law Judge Issues Initial Decision in the ECM Biofilms, Inc. Case, MacNeill Engineering Company, Inc., d/b/a CHAMP, In the Matter of, Clear Choice Housewares, Inc., also d/b/a FARBERWARE® EcoFresh, In the Matter of, American Plastic Manufacturing, Inc., In the Matter of, ECM BioFilms, Inc., also d/b/a Enviroplastics International, In the Matter of, Blog: Grading your degradability claims: The latest for green marketers, FTC Cracks Down on Misleading and Unsubstantiated Environmental Marketing Claims. Specifically, the updated order bars AJM from making unsubstantiated claims that a product or package is biodegradable, compostable, recyclable, or offers an environmental benefit and requires AJM to disclose information needed to qualify certain green claims to avoid deception. I show that the two kinds of penalties affect the possibility of signaling in different ways and that the mandatory substantiation requirement in many circumstances improves buyer information and social welfare beyond what is achieved by a ban on false claims alone. order and enter into a new order that contains new language and definitions that reflect updates to the Green Guides that were finalized last year. In this article we’re going to outline reasons why making unsubstantiated claims is false advertising which is not only illegal, it’s harmful to your credibility, creates a bad reputation for your brand, and leads to a significant loss in customer loyalty. American Plastic Manufacturing is based in Seattle, Washington, and was an ECM customer until at least December 2012. Online complaint Assistant or call 1-877-FTC-HELP ( 1-877-382-4357 ) consumer topics among other things, prohibit ECM from engaging each... 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