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IN RE HAVAMPTA INC Click to find out why . . .



Keywords & Phrases
CaseNo: IRHI86512, CourtCode: FED, CourtName: FEDERAL TRADE COMMISSION, State: DE Delaware, UniqueCaseRef: LCD>IRHI86512, Respondent, Warning Statement, Federal Trade Commission, Cigar, Advertising, Package, Advertisement, Display, United States, Act, Warnings, Square Inches, Agreement, Proposed Respondent, Surface Area, Draft Complaint, Consumer, Jurisdictional Facts, Distribution, Total Area, Havatampa, Representation, Practices, Dimensions, Principals, Health, Complaint, Proposed Orders, Label, Utilitarian Items, Materials, Principal Display Panel, Brand, Dissemination, Commission, Nationwide, Consumers , ContentID: 120247801

Case Documents
1   DECISION & ORDER
[ see first page and extracted highlights below  ] ItemID: 118847
23 pages
HTML
2   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 118846
2 pages
HTML
3   AGREEMENT CONTAINING CONSENT
[ see first page and extracted highlights below  ] ItemID: 118844
24 pages
HTML
4 1999-07 ANALYSIS
[ see first page and extracted highlights below  ] ItemID: 118845
5 pages
HTML
Total Documents: 4 documents , 54 pages
Price: $ 34.95


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1 . DECISION & ORDER

EXTRACTED KEY WORDS
WARNING STATEMENT
FEDERAL TRADE COMMISSION
CIGAR
ADVERTISING
PACKAGE
ADVERTISEMENT
UNITED STATES
DISPLAY
CONSUMER
ACT
SQUARE INCHES
SURFACE AREA
LABEL
COMPLAINT
BRAND
JURISDICTIONAL FACTS
DISTRIBUTION
TOTAL AREA
AGREEMENT
DIMENSIONS
HAVATAMPA
DULY AUTHORIZED OFFICERS
PRACTICES
THEREAFTER
UTILITARIAN ITEMS
MATERIALS
PRINCIPAL DISPLAY PANEL
DISSEMINATION
SQUARE FEET
                                                                 002 3204

                          UNITED STATES OF AMERICA
                          FEDERAL TRADE COMMISSION

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

                             In the Matter of

                      HAVATAMPA, INC., a corporation.

                             Docket No. C-3965

                             DECISION AND ORDER

   IT IS HEREBY AGREED by and between, by its duly authorized officers,
   and counsel for the Federal Trade Commission that:

   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 that the Bureau of Consumer Protection
   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 thirty (30) days, and having duly considered the comments
   received from interested persons pursuant to Section 2.34 of its
SNIPPETS:
  • HAVATAMPA, INC., a corporation.
  • IT IS HEREBY AGREED by and between, by its duly authorized officers, and counsel for the
  • The Federal Trade Commission having initiated an investigation of certain acts and practices
  • The Commission having thereafter considered the matter and having determined that it had ormity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its
  • "Cigar" shall mean any roll of tobacco wrapped in leaf tobacco or wrapped in any other
  • "Package" shall mean any pack, box, carton, tube, can, jar, container or wrapping in which no written, printed or graphic matter.
  • Any package that is also used as a point-of-sale display item shall also constitute
  • "Label" shall mean any written, printed or graphic matter affixed to or appearing on any
  • "Utilitarian item" shall mean any item, other than cigars, that is sold or given or caused to
  • Unless otherwise exempted by specific provision of this order, "advertisement" shall include etter, coupon, catalog, poster, chart, billboard, transit advertisement, utilitarian item,
  • Provided, however, that the warning statement requirements shall not apply to company and not for public display or consumer exposure.
  • these warning statement requirements do not apply to shelf-talkers and similar product
  • The principal display panel is the part of a label that is likely to be displayed, presented,
  • In the case of any cigar that is imported, the warning statements may be affixed in the
  • The size of the warning statement shall be clear and conspicuous and shall be in Univers 57
  • Total area of 15 to less than 65 square inches
  • Total area of 10 to less than 20 square feet
  • For those utilitarian items under eight square inches that are viewed predominantly by the
  • consistent with customary business practices.
  • A plan for the rotation, display, and dissemination of warning statements in cigar

  • 2 . COMPLAINT

    EXTRACTED KEY WORDS
    ACT
    RESPONDENT
    PRACTICES
    CONSUMERS
    HAVATAMPA
    ALLEGES
    CIGARS
    COMPLAINT
    AFFECTING COMMERCE
    DISCLOSE
    FACTS
    REASON
    VIOLATION
    ADVERTISING
    SALE
    FAILURE
    UNFAIR
    MOUTH
    ORAL CAVITY
    THROAT
    ESOPHAGUS
    LARYNX
    LUNGS
    PURCHASE
    SUBSTANTIAL INJURY
    COUNTERVAILING BENEFITS
    COMPETITION
    DONALD
    CLARK
    
                                                                     002 3204
    
                              UNITED STATES OF AMERICA
                              FEDERAL TRADE COMMISSION
    
                                 In the Matter of
    
                          HAVATAMPA, INC., a corporation.
    
                                 Docket No. C-3965
    
                                     COMPLAINT
    
       The Federal Trade Commission, having reason to believe that Havatampa,
       Inc., a corporation ("respondent"), has violated the provisions of the
       Federal Trade Commission Act, and it appearing to the Commission that
       this proceeding is in the public interest, alleges:
    
              1. Respondent Havatampa, Inc., is a Delaware corporation with
              its principal office or place of business at 3901 Riga
              Boulevard, Tampa, FL 33601.
    
              2. Respondent has manufactured, advertised, labeled, offered
              for sale, sold, and distributed products to the public,
              including cigars.
    
              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. In its advertising, labeling, and sale of cigars, respondent
              has failed to disclose that regular cigar smoking can cause
              several serious adverse health conditions including, but not
              limited to, cancers of the mouth (oral cavity), throat
              (esophagus and larynx), and lungs. These facts would be
              material to consumers in their purchase and use of the product.
              Respondent's failure to disclose these facts has caused or is
              likely to cause substantial injury to consumers that is not
              outweighed by countervailing benefits to consumers or
              competition and is not reasonably avoidable by consumers.
              Therefore, the failure to disclose these facts was, and is, an
              unfair or deceptive practice.
    
              5. The acts and practices of respondent as alleged in this
              complaint constitute unfair or deceptive acts or practices in
              or affecting commerce in violation of Section 5 of the Federal
              Trade Commission Act.
    
    
    SNIPPETS:
  • HAVATAMPA, INC., a corporation.
  • The Federal Trade Commission, having reason to believe that Havatampa, Inc., a corporation,
  • Respondent Havatampa, Inc., is a Delaware corporation with its principal office or place of
  • The acts and practices of respondent alleged in this complaint have been in or affecting
  • In its advertising, labeling, and sale of cigars, respondent has failed to disclose that
  • These facts would be material to consumers in their purchase and use of the product.
  • Respondent's failure to disclose these facts has caused or is likely to cause substantial
  • The acts and practices of respondent as alleged in this complaint constitute unfair or
  • Donald S. Clark

  • 3 . AGREEMENT CONTAINING CONSENT

    EXTRACTED KEY WORDS
    WARNING STATEMENT
    FEDERAL TRADE COMMISSION
    CIGAR
    ADVERTISING
    PACKAGE
    ADVERTISEMENT
    UNITED STATES
    PROPOSED RESPONDENT
    DISPLAY
    AGREEMENT
    DRAFT COMPLAINT
    REPRESENTATION
    SQUARE INCHES
    ACT
    PRINCIPALS
    SURFACE AREA
    HAVATAMPA
    JURISDICTIONAL FACTS
    DISTRIBUTION
    TOTAL AREA
    PRACTICES
    DIMENSIONS
    CONSENT ORDER
    DULY AUTHORIZED OFFICER
    UTILITARIAN ITEMS
    MATERIALS
    PRINCIPAL DISPLAY PANEL
    DISSEMINATION
    RECTANGULAR
    
                              UNITED STATES OF AMERICA
                              FEDERAL TRADE COMMISSION
    
                                  In the Matter of
    
                          HAVATAMPA, INC., a corporation.
    
                                 FILE NO. 002-3204
    
                         AGREEMENT CONTAINING CONSENT ORDER
    
       The Federal Trade Commission has conducted an investigation of certain
       acts and practices of Havatampa, Inc. ("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 Havatampa, Inc., by its duly
       authorized officer, and counsel for the Federal Trade Commission that:
    
              1. Proposed respondent Havatampa, Inc., is a Delaware
              corporation with its principal office or place of business at
              3901 Riga Boulevard, Tampa, FL 33601.
    
              2. Proposed respondent admits all the jurisdictional facts set
              forth in Paragraphs 1 through 3 of 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. The agreement shall not become part of the public record of
              the proceeding unless and until it is accepted by the
    
    SNIPPETS:
  • The Federal Trade Commission has conducted an investigation of certain acts and practices of
  • Proposed respondent, having been represented by counsel, is willing to enter into an
  • IT IS HEREBY AGREED by and between Havatampa, Inc., by its duly authorized officer, and
  • This agreement is for settlement purposes only and does not constitute an admission by
  • No agreement, understanding, representation, or interpretation not contained in the order or
  • "Commerce" shall mean as defined in Section 4 of the Federal Trade Commission Act,
  • "Cigar" shall mean any roll of tobacco wrapped in leaf tobacco or wrapped in any other
  • "Package" shall mean any pack, box, carton, tube, can, jar, container or wrapping in which no written, printed or graphic matter.
  • Any package that is also used as a point-of-sale display item shall also constitute
  • "Label" shall mean any written, printed or graphic matter affixed to or appearing on any
  • Unless otherwise exempted by specific provision of this order, "advertisement" shall include etter, coupon, catalog, poster, chart, billboard, transit advertisement, utilitarian item,
  • Provided, however, that the warning statement requirements shall not apply to company and not for public display or consumer exposure.
  • these warning statement requirements do not apply to shelf-talkers and similar product
  • The principal display panel is the part of a label that is likely to be displayed, presented,
  • In the case of a rectangular or square cigar package, the principal display panel shall mean
  • In the case of any cigar that is imported, the warning statements may be affixed in the
  • The size of the warning statement shall be clear and conspicuous and shall be in Univers 57
  • Total area of 15 to less than 65 square inches
  • For those utilitarian items under eight square inches that are viewed predominantly by the
  • A plan for the rotation, display, and dissemination of warning statements in cigar
  • IT IS FURTHER ORDERED that respondent and its successors and assigns shall deliver a copy of

  • 4 . ANALYSIS

    EXTRACTED KEY WORDS
    CIGAR
    ADVERTISING
    HEALTH
    PROPOSED ORDERS
    COMMISSION
    NATIONWIDE
    TOBACCO
    PACKAGES
    DISPLAY
    LABELING
    CONSENT ORDERS
    WARNING STATEMENTS
    CONSUMERS
    REPORT
    REGULAR
    RESPONDENTS
    DISCLOSURE
    AGREEMENTS
    MATTER
    SURGEON GENERAL WARNING
    CIGAR SMOKING
    HEALTH RISKS
    SMOKELESS TOBACCO
    ACT
    FTC
    PUBLICATION
    CIGARETTES
    CANCER
    FORMAT
    
         _________________________________________________________________
    
                        ANALYSIS OF PROPOSED CONSENT ORDERS
                               TO AID PUBLIC COMMENT
         _________________________________________________________________
    
       The Federal Trade Commission has accepted, subject to final approval,
       agreements containing consent orders from the following cigar
       manufacturers, importers or marketers:
    
                 Swisher International, Inc. (Matter No. 002-3199);
               Consolidated Cigar Corporation (Matter No. 002-3200);
                       Havatampa, Inc. (Matter No. 002-3204);
                General Cigar Holdings, Inc. (Matter No. 002-3202);
                    John Middleton, Inc. (Matter No. 002-3205);
                      Lane Limited (Matter No. 002-3203); and
              Swedish Match North America, Inc.(Matter No. 002-3201).
    
       The proposed consent orders have been placed on the public record for
       thirty (30) days for the 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
       agreements and comments received and will decide whether it should
       withdraw from the agreements and take appropriate action or make final
       the agreements' proposed orders.
    
                                     Background
    
       In July 1999, the Federal Trade Commission provided a Report to
       Congress, entitled Cigar Sales and Advertising and Promotional
       Expenditures for Calendar Years 1996 and 1997 ("Commission Report").
       The Commission Report recommended that, given the significant increase
       in cigar smoking prevalence in recent years and the serious health
       risks posed by cigar smoking, cigars should be regulated in a manner
       consistent with the current regulation of cigarettes and smokeless
       tobacco. See Federal Cigarette Labeling and Advertising Act, 15 U.S.C.
       § 1331 et seq.; Comprehensive Smokeless Tobacco Health Education Act
       of 1986, 15 U.S.C. § 4401 et seq. The Commission Report recommended
       that Congress either enact legislation to require federal health
       warnings on cigar labeling and advertising or direct the Commission to
       use its existing authority, under Section 5 of the Federal Trade
       Commission Act, to require cigar health warnings.
    
       In November 1999, in the Joint Explanatory Note of the Conferees to
       H.R. 3421 Appropriations Bill, the Congressional Appropriations
       Committees responded to the Commission Report by directing the FTC to
       report back to the Committees on Commission plans to establish
       "uniform Federal health warning label(s)."
    
    SNIPPETS:
  • The Federal Trade Commission has accepted, subject to final approval, agreements containing
  • Inc. (Matter No. 002-3199); Consolidated Cigar Corporation;
  • the Commission will again review the agreements and comments received and will decide whether
  • In July 1999, the Federal Trade Commission provided a Report to Congress, entitled Cigar
  • The Commission Report recommended that, given the significant increase in cigar smoking
  • See Federal Cigarette Labeling and Advertising Act, 15 U.S.C. § 1331 et seq.; Comprehensive
  • The Commission Report recommended that Congress either enact legislation to require federal
  • After consideration of the National Cancer Institute's findings in its Cigar Monograph on the
  • The proposed complaints each allege that the failure to disclose that regular cigar smoking
  • SURGEON GENERAL WARNING: Cigar Smoking Can Cause Cancers Of The
  • Part II of the proposed orders sets out specific format requirements for the warnings, which
  • Part II also requires that the warning statements on labeling and advertising be printed in
  • Part III specifies the location and size requirements for the disclosure of the health
  • For the majority of cigar boxes, the orders define the principal display panel to be the
  • The orders make an exception for boxes of premium cigars, providing that the warning can
  • Part IV specifies how to calculate the size of the warning and where to place the warning in
  • For each cigar brand, respondents must display each of the five required warning statements
  • See U.S. Department of Health and Human Services, National Cancer Institute, Smoking and
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