9723063
                                                                  B253447

                          UNITED STATES OF AMERICA
                      BEFORE FEDERAL TRADE COMMISSION

   COMMISSIONERS:
          Robert Pitofsky, Chairman
          Sheila F. Anthony
          Mozelle W. Thompson
          Orson Swindle

                             In the Matter of

             GENERAL SIGNAL POWER SYSTEMS, INC., a corporation.

                             DOCKET NO. C-3860

                             DECISION AND ORDER

   The Federal Trade Commission having initiated an investigation of
   certain acts and practices of the respondent named in the caption
   hereof, and the respondent having been furnished thereafter with a
   copy of a draft of complaint which the San Francisco Regional Office
   proposed to present to the Commission for its consideration and which,
   if issued by the Commission, would charge respondent with violation of
   the Federal Trade Commission Act; and

   The respondent, its attorney, and counsel for the Commission having
   thereafter executed an agreement containing a consent order, an
   admission by the respondent of all the jurisdictional facts set forth
   in the aforesaid draft of complaint, a statement that the signing of
   said agreement is for settlement purposes only and does not constitute
   an admission by respondent that the law has been violated as alleged
   in such complaint, or that the facts as alleged in such complaint,
   other than jurisdictional facts, are true and waivers and other
   provisions as required by the Commission's Rules; and

   The Commission having thereafter considered the matter and having
   determined that it had reason to believe that the respondent has
   violated the said Act, and that a complaint should issue stating its
   charges in that respect, and having thereupon accepted the executed
   consent agreement and placed such agreement on the public record for a
   period of sixty (60) days, now in further conformity with the
   procedure prescribed in § 2.34 of its Rules, the Commission hereby
   issues its complaint, makes the following jurisdictional findings and
   enters the following order:

                                                                  9723063
                                                                  B253447

                          UNITED STATES OF AMERICA
                         FEDERAL TRADE COMMISSION

                             In the Matter of

             GENERAL SIGNAL POWER SYSTEMS, INC., a corporation.

                             DOCKET NO. C-3860

                                 COMPLAINT

   The Federal Trade Commission, having reason to believe that General
   Signal Power Systems, Inc., a corporation ("respondent"), has violated
   the provisions of the Federal Trade Commission Act, and it appearing
   to the Commission that a proceeding by it in respect thereof would be
   in the public interest, alleges:

   1. Respondent General Signal Power Systems, Inc., is a Wisconsin
   corporation with its principal office or place of business at N. 9246
   Highway 80, Necedah, Wisconsin 54646.

   2. Respondent, through its division, Best Power, has manufactured,
   advertised, labeled, offered for sale, sold, and distributed computer
   products to the public, including the "Patriot" and "Fortress"
   uninterruptible power systems. Uninterruptible power systems are
   devices that protect consumer appliances, such as personal computers,
   from damage resulting from power disturbances or power failures.

   3. The acts and practices of respondent alleged in this complaint have
   been in or affecting commerce, as "commerce" is defined in Section 4
   of the Federal Trade Commission Act.

   4. Respondent has disseminated or has caused to be disseminated
   advertisements for Patriot uninterruptible power systems and Fortress
   uninterruptible power systems, including but not necessarily limited
   to the attached Exhibits A through D. These advertisements contain the
   following statements and depictions:

     A. "T¥his is#n't a mod+.em problem. This is a power problem.

     . . . .The results are crashed networks and hard drives, faulty
     data transmissions, read/write errors, premature failure of
     components, system lockups, corrupted or lost data and more.

     Best Power products are the answer. They clean up dirty power

                     Analysis of Proposed Consent Order
                           to Aid Public Comment
     _________________________________________________________________

   The Federal Trade Commission has accepted an agreement, subject to
   final approval, to a proposed consent order from General Signal Power
   Systems, Inc., a Wisconsin corporation.

   The proposed consent order has been placed on the public record for
   sixty (60) days for reception of comments by interested persons.
   Comments received during this period will become part of the public
   record. After sixty (60) 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.

   General Signal Power Systems, Inc. ("GSPS"), through its division,
   Best Power, manufactures and markets computer-related products,
   including the "Patriot" and "Fortress" uninterruptible power systems
   ("UPS"). Uninterruptible power systems are devices that protect
   consumer appliances, such as personal computers, from damage resulting
   from power disturbances or power failures.

   The Commission's complaint charges that GSPS's advertising contained
   false and unsubstantiated claims regarding the extent to which these
   devices can reduce a consumer's computer problems. Specifically, the
   complaint alleges that GSPS made unsubstantiated claims that: 1) Best
   Power products can reduce computer problems, such as crashed networks,
   crashed hard drives, faulty data transmissions, read/write errors,
   premature failure of components, system lockups, corrupted or lost
   data, by up to 80%; 2) Best Power products can reduce computer and
   network downtime up to 80%; 3) 80% of a typical computer's downtime is
   due to power problems, rather than to hardware or software problems;
   and 4) a Patriot or Fortress UPS can reduce the number of calls for
   computer service by 82%.

   The Commission's complaint also alleges that GSPS made a false claim
   that a five-year power quality study showed that the number of calls
   for computer service dropped 82% after installation of a UPS. In fact,
   the complaint states that the 82% figure cited in the advertisements
   was taken from a one-time customer survey. Moreover, the complaint
   alleges that the underlying consumer survey offered to support the
   claim that consumers experienced an 82% reduction in computer problems
   after the installation of a Patriot or Fortress UPS was not competent
   and reliable. As an example, the complaint alleges that this consumer
   survey only considered the experience of purchasers of UPSs which
   feature a "ferroresonant transformer." UPSs which include this feature
   provide a higher degree of protection from power disturbances than do

                          UNITED STATES OF AMERICA
                          FEDERAL TRADE COMMISSION

                              In the Matter of
            GENERAL SIGNAL POWER SYSTEMS, INC., a corporation.

                             FILE NO. 972-3063

                     AGREEMENT CONTAINING CONSENT ORDER

   The Federal Trade Commission has conducted an investigation of certain
   acts and practices of General Signal Power Systems, Inc., a
   corporation ("proposed respondent"). Proposed respondent, having been
   represented by counsel, is 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 General Signal Power Systems, Inc.,
   and counsel for the Federal Trade Commission that:

   1. Proposed respondent General Signal Power Systems, Inc., is a
   Wisconsin corporation with its principal office or place of business
   at N. 9246 Highway 80, Necedah, Wisconsin 54646.

   2. Proposed respondent admits all the jurisdictional facts set forth
   in the draft complaint.

   3. Proposed respondent waives:

          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 pursuant to this
          agreement.

   4. This agreement shall not become part of the public record of the
   proceeding unless and until it is accepted by the Commission. If this
   agreement is accepted by the Commission, it, together with the draft
   complaint, will be placed on the public record for a period of sixty
   (60) days and information about it publicly released. The Commission
   thereafter may either withdraw its acceptance of this agreement and so
   notify proposed respondent, in which event it will take such action as
   it may consider appropriate, or issue and serve its complaint (in such