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Braswell Inc., its director, A. Glenn Braswell, and its subsidiaries are barred permanently from representing that any product or service will cure or prevent hereditary baldness, under a court-filed consent judgment with the Federal Trade Commission. The parties also agreed to pay $610,000 in civil penalties. Under the judgment, Braswell is enjoined permanently from:
The consent judgment names A. Glenn Braswell, Braswell Inc., Cosvetic Laboratories Inc., Quest Research Inc., and Standard Research Laboratories Inc. and its president, Charles L. Richardson.
The Commission explained in a statement that it was not seeking consumer redress because of the difficulty and expense in identifying those consumers injured by the alleged practices. The statement continued that the "civil penalty imposed here together with the injunctive relief obtained will assure that future consumer injury is avoided."
The Commission voted 4-1 to accept the judgment. Commissioner Patricia P. Bailey dissented from acceptance of the settlement because, in her view, the judgment's advertising substantiation requirements are inadequate to protect consumers from deceptive product performance claims.
Commissioner Michael Pertschuk voted to accept the settlement because of the civil penalty and injunctive relief obtained, but issued a statement explaining that he was not entirely satisfied with the consent. "In my judgment, the substantiation requirements are neither as tough as they ought to be for the kinds of claims made by these defendants, nor are they consistent with traditional Commission ad substantiation policy."
The FTC's Atlanta Regional Office handled the investigation. The Justice Department filed the judgment on the FTC's behalf in U.S. District Court for the Northern District of Georgia, Atlanta Division.
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This article was posted on August 6, 2000.