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1
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EXHIBITS A-C
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EXTRACTED KEY WORDS
SUPER EXHIBIT SUPER FUELMAX COSTS VIE VERKIGN GADGET UNIVERSE COWRISHT FAVORITES E2ZILFAP SUBSCFIBETOGEDGETA CART ITARNS HAGA EMI INSTOCK MONEY REFUND MIDDLE EAST TOMORROK PRICES RAKE WORRYING TOLEDUCE AMUND DRE TRANSPORTATION TRUCKING FLEETS TTIE SUPER FUELMAX HARMFUL POLLUTANTS REDUCTION LNCNSSED MILEAGE |
EXHIBIT A
EXHIBIT B
9408 Owensmouth Ave.
Cliatsworth,CA 9131 I
I To order call l-800-478-4703 24 hours.
`For Customer Service and Product Information call 1-800-872-8280
0
EXHIBIT C
. :...' .: ~adget&$- 1;800 4784703 . '
.Pw 1 of I
I-Hnme I Srib&ihe I About GU. .I Sirpport
.
A&AV&ble:
$49.95
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2
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DECISION & ORDER
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT FEDERAL TRADE COMMISSION REPRESENTATION CONSUMER SALE RESPONDENT ESRIM SHEVA HOLDING ALEXANDER ELNEKAVEH OFFICER ACTS BUSINESS DIRECTS PRACTICES VIOLATION EVIDENCE MANNER SUCCESSORS AFFECTING COMMERCE MATTER CONSUMER PROTECTION AGREEMENT JURISDICTION RELIABLE SCIENTIFIC EVIDENCE EMPLOYMENT ADVERTISING PROMOTION TERMINATE APPEALING |
012 3116
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
COMMISSIONERS:
Timothy J. Muris, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
Thomas B. Leary
In the Matter of
ESRIM VE SHEVA HOLDING
CORPORATION,
a corporation, sometimes doing business as DOCKET NO. C-4030
GADGET UNIVERSE, and
ALEXANDER ELNEKAVEH,
individually and as an officer
of the corporation.
DECISION AND ORDER
The Federal Trade Commission having initiated an investigation of certain acts and practices of
respondents named in the caption hereof, and the respondents having been furnished thereafter with a
copy of a draft complaint which the Bureau of Consumer Protection proposed to present to the
Commission for its consideration and which, if issued by the Commission, would charge respondents
with violation of the Federal Trade Commission Act; and
Page 1 of 6
The respondents, their attorneys, and counsel for the Commission having thereafter executed an
agreement containing a consent order, an admission by the respondents of all the jurisdictional
forth in the draft complaint, a statement that the signing of said agreement is for settlement
only and does not constitute an admission by respondents that the law has been violated as alleged
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3
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COMPLAINT
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EXTRACTED KEY WORDS
FUEL SUPER FUELMAX REPRESENTATIONS PARAGRAPH FEDERAL TRADE COMMISSION ACTS HARMFUL ALEXANDER ELNEKAVEH OFFICER PRACTICES ADVERTISEMENTS ESRIM SHEVA HOLDING BUSINESS ALLEGES COMPLAINT EXHIBITS HARMFUL POLLUTANTS REPRESENTATIONS SET IMPLICATION GADGET UNIVERSE REASON PRINCIPAL OFFICE MAGNET AFFECTING COMMERCE FINDINGS FUEL COSTS HARMFUL EMISSIONS CATALOG |
012 3116
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
In the Matter of
ESRIM VE SHEVA HOLDING CORPORATION, a corporation, sometimes doing
business as GADGET UNIVERSE, and
ALEXANDER ELNEKAVEH, individually and as an officer of the
corporation.
DOCKET NO.
COMPLAINT
The Federal Trade Commission, having reason to believe that Esrim Ve
Sheva Holding Corporation, sometimes doing business as Gadget
Universe, and Alexander Elnekaveh, individually and as an officer of
the corporation ("respondents"), have violated the provisions of the
Federal Trade Commission Act, and it appearing to the Commission that
this proceeding is in the public interest, alleges:
1a. Respondent Esrim Ve Sheva Holding Corp. is a New York corporation
with its principal office or place of business at 9408 Owensmouth
Ave., Chatsworth, California 91311.
1b. Respondent Alexander Elnekaveh is an officer of the corporate
respondent. Individually or in concert with others he formulates,
directs, or controls the policies, acts, or practices of the
corporation, including the acts or practices alleged in this
complaint. His principal office or place of business is the same as
that of Esrim Ve Sheva Holding Corp.
2. Respondents have advertised, offered for sale, sold, and
distributed products to the public, including Super FuelMAX, an
automotive aftermarket fuel-line magnet device.
3. The acts and practices of respondents alleged in this complaint
have been in or affecting commerce, as "commerce" is defined in
Section 4 of the Federal Trade Commission Act.
4. Respondents have disseminated or have caused to be disseminated
advertisements for the Super FuelMAX, including but not necessarily
limited to the attached Exhibits A, B, and C. These advertisements
contain the following statements:
A. Finding the world's most extraordinary products for you is
not my job - it's my mission. . . . No matter where you see our
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4
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ANALYSIS
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EXTRACTED KEY WORDS
RESPONDENTS PROPOSED CONSENT ORDER REPRESENTATION FUEL COMPLAINT AGREEMENT FUEL CONSUMPTION EMISSIONS POLLUTANTS EVIDENCE FEDERAL TRADE COMMISSION ACTS ALLEGES COMPETENT RELIABLE SCIENTIFIC EVIDENCE PUBLIC RECORD SUPER FUELMAX FUEL-LINE MAGNET HARMFUL EMISSIONS PRACTICES VIOLATION ADVERTISING FUEL MOLECULES FUEL BURN POSSESS FINDINGS ORDINARY EXPERIENCE MEMBERS PROVISIONS |
012 3116
Analysis of Proposed Consent Order
To Aid Public Comment
The Federal Trade Commission has accepted, subject to final approval,
an agreement for entry of a consent order from Esrim Ve Sheva Holding
Corp., a corporation sometimes doing business as Gadget Universe, and
its CEO, Alexander Elnekaveh, individually and as an officer of the
corporation (referred to collectively as "respondents"). The agreement
would settle a complaint by the Federal Trade Commission that
respondents engaged in deceptive acts or practices in violation of
Section 5(a) of the Federal Trade Commission Act.
The proposed consent order has been placed on the public record for
thirty (30) days for receipt of comments by interested persons.
Comments received during this period will become part of the public
record. After thirty (30) days, the Commission will again review the
agreement and the comments received and will decide whether it should
withdraw from the agreement or make final the agreement's proposed
order.
This matter concerns advertising representations made about Super
FuelMAX, an automotive fuel-line magnet. The administrative complaint
alleges that respondents violated the FTC Act by disseminating
advertisements that made unsubstantiated performance claims about
Super FuelMAX. The Complaint alleges that respondents represented that
Super FuelMAX: (1) causes fuel molecules to line up in straight
columns and rows; (2) improves fuel burn through magnetic resonance;
(3) reduces fuel consumption; (4) reduces fuel consumption by 27% or
up to 27%; (5) reduces harmful emissions or pollutants; and (6)
reduces harmful emissions or pollutants by 42% or up to 40%. The
Complaint further alleges that respondents represented that they had a
reasonable basis for making these claims, but in fact did not possess
competent evidence supporting them. Additionally, the Complaint
challenges, as false, claims that tests performed at a certified U.S.
Environmental Protection Agency prove that: (a) increases mileage by
27%; and (b) reduces harmful pollutants by 42%.
The Complaint also alleges that respondents falsely represented that a
testimonial from respondent Alexander Elnekaveh reflected: (a)
Elnekaveh's actual findings and experience with the product; and (b)
the typical or ordinary experience of members of the public who use
the product.
The proposed consent order contains provisions designed to prevent
respondents from engaging in similar acts and practices in the future.
Part I of the proposed consent order prohibits respondents from making
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5
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AGREEMENT
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT REPRESENTATION PROPOSED RESPONDENTS FEDERAL TRADE COMMISSION OFFICER ESRIM SHEVA HOLDING AGREEMENT ALEXANDER ELNEKAVEH BUSINESS SALE CONSUMER MANNER DRAFT COMPLAINT DIRECTS ACCEPTANCE ACTS PRACTICES EVIDENCE SUCCESSORS AFFECTING COMMERCE LAW NOTIFY RELIABLE SCIENTIFIC EVIDENCE EMPLOYMENT ADVERTISING PROMOTION TERMINATE |
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
In the Matter of
ESRIM VE SHEVA HOLDING CORPORATION, a corporation, sometimes doing
business as GADGET UNIVERSE, and
ALEXANDER ELNEKAVEH, individually and as an officer of the
corporation.
FILE NO. 012-3116
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain
acts and practices of Esrim Ve Sheva Holding Corporation, sometimes
doing business as Gadget Universe, and Alexander Elnekaveh,
individually and as an officer of the corporation ("proposed
respondents"). Proposed respondents, having been represented by
counsel, are willing to enter into an agreement containing a consent
order resolving the allegations contained in the attached draft
complaint. Therefore,
IT IS HEREBY AGREED by and between Esrim Ve Sheva Holding Corporation,
by its duly authorized officers, and Alexander Elnekaveh, individually
and as an officer of the corporation, and counsel for the Federal
Trade Commission that:
1a. Proposed respondent Esrim Ve Sheva Holding Corp. is a New
York corporation with its principal office or place of business
at 9408 Owensmouth Ave., Chatsworth, California 91311.
1b. Proposed respondent Alexander Elnekaveh is an officer of
the corporate respondent. Individually or in concert with
others he formulates, directs, or controls the policies, acts,
or practices of the corporation, including the acts or
practices alleged in this complaint. His principal office or
place of business is the same as that of Esrim Ve Sheva Holding
Corp.
2. Proposed respondents admit all of the jurisdictional facts
set forth in the draft complaint.
3. Proposed respondents waive:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain
a statement of findings of fact and conclusions of law;
and
c. All rights to seek judicial review or otherwise to
challenge or contest the validity of the order entered
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