FOR
RELEASE: JANUARY 5, 1998
FTC SEEKS CIVIL
PENALTIES
AGAINST OZONE-GENERATOR FIRM OVER AIR CLEANING CLAIMS IN VIOLATION
OF PRIOR ORDER
The Federal Trade Commission has filed suit in federal district court
alleging that Alpine Industries, Inc., a company based in Tennessee and
Minnesota, has violated a 1995 Commission order by continuing to claim, without
adequate substantiation, that its ozone-generating indoor "air cleaner" devices
remove numerous pollutants, do so better than other methods, and prevent or
relieve medical or health related conditions. The FTC is seeking a court order
against the firm and its president, William J. Converse, and civil penalties up
to $11,000 per order violation. Alpine and Mr. Converse are bound by the 1995
order, which requires competent and reliable scientific evidence to back up such
claims.
The case stems from a law-enforcement action the FTC announced in June 1995
against Alpine; Living Air Corporation, a predecessor company; and Converse, an
officer of both firms. Alpine is a multi-level marketing organization -- its
products are sold by distributors to whom Alpine provides promotional materials.
In the 1995 case, the FTC challenged claims that the Living Air Model XL15,
which sold for about $600, cleans the air of various indoor air pollutants and
prevents or relieves allergies, asthma and other conditions. The two companies
and Converse avoided trial by settling the FTC charges and agreeing to be bound
by the 1995 order.
Nonetheless, in a complaint filed in federal district court in Tennessee, the
FTC alleged that since September 1995, when the order became effective, Alpine
and Converse have disseminated promotional materials for ozone-generating air
cleaner products that include statements such as:
"ARE YOU LIVING IN A SICK HOUSE? And is it making you sick too? Many
otherwise unexplained physical ailments can probably be traced to dust, various
chemicals, bacteria and a host of other airborne pollutants trapped inside with
you -- inside where you spend 90% of your time. . . . Revitalize your indoor air
at home with the power of a Living Air Model 880. The 880 replicates nature by
emitting ozone and negative ions into the air. This effect, the same one created
by a thunderstorm or waterfall, freshens otherwise stale indoor air by oxidizing
airborne pollutants and knocking down floating particulate. . .
."
Through these and other statements, the FTC alleged that Alpine and Converse
have represented that their air cleaning products effectively eliminate or clean
pollutants from indoor air, that the use of ozone is more effective in cleaning
or purifying indoor air than other cleaning methods, and that their air cleaning
products prevent or provide relief from medical or health-related conditions.
The defendants did not have competent and reliable evidence to back up these
claims, the FTC charged.
The FTC staff noted that Alpine has filed suit in a Tennessee federal
district court challenging the agency's investigation and asking the court to
declare that the company is in compliance with the 1995 order. On November 10,
1997, the Commission filed a motion asking the court to dismiss Alpine's lawsuit
for lack of subject matter jurisdiction and failure to state a claim upon which
relief can be granted. That case is still pending in the Tennessee court.
The FTC complaint was filed on December 30, 1997, in U.S. District Court for
the Eastern District of Tennessee, in Greeneville, by the Department of Justice
at the FTC's request. The Commission vote to file it was 4-0.
NOTE: The Commission authorizes 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. The
complaint is not a finding or ruling that the defendant has actually
violated the law. The case will be decided by the court.
Copies of the documents
associated with this action are available from the FTC's web site at
http://www.ftc.gov and also from the FTC's Public Reference Branch,
Room 130, 6th Street and Pennsylvania Avenue, N.W., Washington, D.C. 20580;
202-326-2222; TTY for the hearing impaired 202-326-2502. To find out the latest
news as it is announced, call the FTC NewsPhone recording at 202-326-2710.
- MEDIA CONTACT:
- Office of Public Affairs
- Brenda A. Mack or Howard Shapiro
- 202-326-2182 or 202-326-2176
-
- STAFF CONTACT:
- Bureau of Consumer
Protection
- Justin Dingfelder, 202-326-3017
- Elena Paoli, 202-326-2974 or
- Carol Jennings, 202-326-3010
(FTC Docket No. C-3614)
(Civil Action No.
2:97-CV-509)
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