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



Keywords & Phrases
CaseNo: IRTI63221, CourtCode: FED, CourtName: FEDERAL TRADE COMMISSION, UniqueCaseRef: LCD>IRTI63221, State: TN Tennessee, Commission, Respondent, Trw, Agreement, Bdm, Consent Order, Federal Trade Commission, Proposed Acquisition, Complaint, Respondents, Seta Services, United States, Divest, Trustee, Laws, Seta Services Operations, Divestiture, Ballistic Missile Defense, Trendmark, Lipo-thin, Trade Commission Act, Non-public Bmdo Information, Officer, Bmd System, Neuro-thin, Jurisdictional Facts, Practices, Representation, Thin-thin Diet, Act, Directs, Acts, Missile Defense Organization, Competition, Advertisement , ContentID: 120248003

Case Documents
1   DECISION & ORDER
[ see first page and extracted highlights below  ] ItemID: 119623
8 pages
HTML
2   CONSENT AGREEMENT
[ see first page and extracted highlights below  ] ItemID: 119622
24 pages
PDF
3   COMPLAINT
[ see first page and extracted highlights below  ] ItemID: 119621
5 pages
HTML
4 1996-05-07 AZCUENAGA STATEMENT
[ see first page and extracted highlights below  ] ItemID: 119620
1 pages
HTML
Total Documents: 4 documents , 38 pages
Price: $ 34.95


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1 . DECISION & ORDER

EXTRACTED KEY WORDS
COMMISSION
COMPLAINT
FEDERAL TRADE COMMISSION
TRENDMARK
REPRESENTATION
ACT
OFFICER
ADVERTISEMENT
DISCLOSURE
CONSUMER
SALE
DRUG
LABELING
ROBERT GATES
BUSINESS
DIRECTS
PROMOTION
AFFECTING COMMERCE
WILLIAM MCCORMACK
PRACTICES
CONNECTION
RELIABLE SCIENTIFIC EVIDENCE
MANNER
MATERIALS
SUCCESSORS
FOOD
OFFERING
DISTRIBUTION
ENDORSEMENT
                                                                  9723255
                                                                  B245224

                          UNITED STATES OF AMERICA
                      BEFORE FEDERAL TRADE COMMISSION

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

                             In the Matter of

     TrendMark Inc., also doing business as TrendMark International, a
   corporation, William McCormack, individually and as an officer of the
    corporation, and E. Robert Gates, individually and as an officer of
                             the corporation.

                             DOCKET NO. C-3829

                             DECISION AND ORDER

   The Federal Trade Commission having initiated an investigation of
   certain acts and practices of the respondents named in the caption
   hereof, and the respondents having been furnished thereafter with a
   copy of a draft of complaint which the New York Regional Office
   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

   The respondents, their attorney, and counsel for the Commission having
   thereafter executed an agreement containing a consent order, an
   admission by the respondents 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 respondents 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 respondents have
   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 Section 2.34 of its Rules, the Commission
SNIPPETS:
  • BEFORE FEDERAL TRADE COMMISSION
  • 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 makes the following jurisdictional findings and enters the following order:
  • Respondent TrendMark Inc. is a Tennessee corporation with its principal office or place of
  • Respondent William McCormack is an owner and officer of respondent TrendMark.
  • Individually or in concert with others, he formulates, directs, or controls the policies,
  • Respondent E. Robert Gates is an owner and officer of respondent TrendMark.
  • "Competent and reliable scientific evidence" shall mean tests, analyses, research, studies,
  • In an advertisement communicated through an electronic medium, the disclosure shall be
  • Provided, however, that in any advertisement presented solely through video or audio means,
  • The video disclosure shall be of a size and shade, and shall appear on the screen for a
  • "Drug" shall mean as defined in Section 15 of the Federal Trade Commission Act,
  • "Food" shall mean as defined in Section 15 of the Federal Trade Commission Act,
  • IT IS ORDERED that respondents, directly or through any corporation, subsidiary, division, or
  • unless at the time it is made, respondents possess and rely upon competent and reliable
  • Respondents disclose, clearly and prominently, and in close proximity to the testimonial or
  • IT IS FURTHER ORDERED that respondent TrendMark, and its successors and assigns, and
  • All advertisements and promotional materials containing the representation;

  • 2 . CONSENT AGREEMENT

    EXTRACTED KEY WORDS
    COMMISSION
    TRW
    AGREEMENT
    BDM
    CONSENT ORDER
    PROPOSED ACQUISITION
    FEDERAL TRADE COMMISSION
    SETA SERVICES
    UNITED STATES
    COMPLAINT
    DIVEST
    BUSINESS
    TRUSTEE
    LAWS
    SETA SERVICES OPERATIONS
    DIVESTITURE
    BALLISTIC MISSILE DEFENSE
    TRADE COMMISSION ACT
    NON-PUBLIC BMDO INFORMATION
    BMD SYSTEM
    JURISDICTIONAL FACTS
    MISSILE DEFENSE ORGANIZATION
    COMPETITION
    AMERICA
    PROPOSED RESPONDENT WAIVES
    PUBLIC RECORD
    REPRESENTATIVES
    COMPLIANCE
    CONSUMMATES
    
                            UNITED STATES OF AMERICA
                         BEFORE FEDERAL TRADE COMMISSION
    
    ______________________________)
    In the matter of                  ))
    TRW Inc.,                         )           File No. 981-0081
      a corporation.                  )
    __________________
                     _______________)
    
                     AGREEMENT CONTAINING CONSENT ORDER
    
          The Federal Trade Commission ("Commission"), having
    initiated an investigation of the proposed acquisition by TRW
    Inc. ("TRW") of BDM International Inc. ("BDM"), and it now
    appearing that TRW, hereinafter sometimes referred to as
    "proposed respondent," is willing to enter into an agreement
    containing a consent order to divest certain assets and providing
    for other relief:
    
          IT IS HEREBY AGREED by and between proposed respondent, by
    its duly authorized officers and attorney, and counsel for the
    Commission that:
    
    1.    Proposed respondent TRW is a corporation organized, existing
          and doing business under and by virtue of the laws of the
          State of Ohio with its office and principal place of
          business located at 1900 Richmond Road, Cleveland, Ohio,
          44124.
    
    2.    Proposed respondent admits all the jurisdictional facts set
          forth in the draft of complaint here attached.
    
    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;
    
          c.    all rights to seek judicial review or otherwise to
                challenge or contest the validity of the order entered
                pursuant to this agreement; and
    
          d.    any claim under the Equal Access to Justice Act.
    
    
    
    4.    Proposed respondent shall submit, within thirty (30) days of
    
    SNIPPETS:
  • UNITED STATES OF AMERICA
  • BEFORE FEDERAL TRADE COMMISSION
  • AGREEMENT CONTAINING CONSENT ORDER
  • The Federal Trade Commission, having initiated an investigation of the proposed acquisition
  • IT IS HEREBY AGREED by and between proposed respondent, by its duly authorized officers and
  • Proposed respondent TRW is a corporation organized, existing and doing business under and by
  • Such report will not become part of the public record unless and until the accompanying
  • If this agreement is accepted by the Commission it, together with the draft of complaint
  • This agreement is for settlement purposes only and does not constitute an admission by
  • its complaint corresponding in form and substance with the draft of complaint here attached
  • Proposed respondent waives any right it may have to any other manner of service.
  • Proposed respondent understands that once the order has been issued, it will be required to
  • "Respondent" or "TRW" means TRW Inc., its directors, officers, employees, agents and
  • "BDM" means BDM International Inc., a Delaware corporation with its principal place of
  • "Ballistic Missile Defense Organization" means the agency of the Department of Defense that
  • E. "SETA Services Operations" means all assets, properties, business and goodwill, tangible
  • G. "Proposed Acquisition" means TRW's proposed acquisition of all the voting securities of
  • H. "Non-public BMDO Information" means any information not in the public domain furnished by
  • The purpose of the divestiture is to ensure the continued provision of SETA Services in the
  • If respondent has not divested, absolutely and in good faith and with the Commission's prior
  • Neither the appointment of a trustee nor a decision not to appoint a trustee under this
  • The market for the research, development, manufacture and sale of a BMD System is highly
  • The proposed Consent Order requires TRW to divest BDM's SETA services contract with the BMDO,

  • 3 . COMPLAINT

    EXTRACTED KEY WORDS
    RESPONDENTS
    NEURO-THIN
    THIN-THIN DIET
    ACTS
    TRENDMARK
    REPRESENTATIONS
    FEDERAL TRADE COMMISSION
    WEIGHT
    OFFICER
    PRACTICES
    FAT
    PARAGRAPH
    ADVERTISEMENTS
    ALLEGES
    COMPLAINT
    WEIGHT LOSS
    BUSINESS
    REASON
    DIRECTS
    FOODS
    EXHIBIT
    POUNDS
    CHOLESTEROL
    REPRESENTATIONS SET
    ADEQUATE
    ENDORSEMENTS
    DISTRIBUTORS
    AFFECTING COMMERCE
    WEBSITE
    
                                                                      9723255
                                                                      B245224
    
                              UNITED STATES OF AMERICA
                              FEDERAL TRADE COMMISSION
    
                                  In the Matter of
    
         TrendMark Inc., also doing business as TrendMark International, a
                                    corporation,
       William McCormack, individually and as an officer of the corporation,
                                        and
        E. Robert Gates, individually and as an officer of the corporation.
    
                                 DOCKET NO. C-3829
    
                                     COMPLAINT
    
       The Federal Trade Commission, having reason to believe that TrendMark
       Inc., a corporation, William McCormack, and E. Robert Gates,
       individually and as officers 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:
    
       1. Respondent TrendMark Inc. ("TrendMark") is a Tennessee corporation
       with its principal office or place of business at 3665 South Perkins,
       Suite 8, Memphis, TN 33183.
    
       2. Respondent William McCormack is an owner and officer of respondent
       TrendMark. Individually or in concert with others, he formulates,
       directs, or controls the policies, acts, or practices of TrendMark,
       including the acts or practices alleged in this complaint. His
       principal office or place of business is the same as that of
       TrendMark.
    
       3. Respondent E. Robert Gates is an owner and officer of respondent
       TrendMark. Individually or in concert with others, he formulates,
       directs, or controls the policies, acts, or practices of TrendMark,
       including the acts or practices alleged in this complaint. His
       principal office or place of business is the same as that of
       TrendMark.
    
       4. Respondents have manufactured, advertised, labeled, offered for
       sale, sold, and distributed over-the-counter weight-loss products to
       the public called "Neuro-Thin" and "Lipo-Thin." Neuro-Thin and
       Lipo-Thin are "foods" or "drugs," within the meaning of Sections 12
       and 15 of the Federal Trade Commission Act.
    
    SNIPPETS:
  • TrendMark Inc., also doing business as TrendMark International, a
  • individually and as an officer of the corporation.
  • The Federal Trade Commission, having reason to believe that TrendMark Inc., a corporation,
  • Respondent TrendMark Inc. is a Tennessee corporation with its principal office or place of
  • Individually or in concert with others, he formulates, directs, or controls the policies,
  • Neuro-Thin and Lipo-Thin are "foods" or "drugs," within the meaning of Sections 12 and 15 of
  • The acts and practices of respondents alleged in this complaint have been in or affecting
  • Respondents have disseminated or have caused to be disseminated advertisements, including but
  • With the ALL NATURAL 'Thin-Thin Diet', you can achieve the same results, without the
  • Patent Pending Thin-Thin Diet works for you to lose weight and KEEP IT OFF.
  • The Thin-Thin Diet Program is a Nutritional Breakthrough Program with a NO DIET, NO WILL
  • *Inhibits LDL cholesterol and boosts HDL cholesterol.
  • LIPO-THIN eliminates fat before your body can absorb it.
  • Taking Neuro-Thin and Lipo-Thin in combination causes significant weight loss without a
  • Through the means described in Paragraph 6, respondents have represented, expressly or by
  • These studies cannot be used as adequate support for the therapeutic effects of Neuro-Thin
  • Through the means described in Paragraph 6, respondents have represented that the statements
  • At the time of providing their endorsements, Toni Holcomb and John Vaught were the spouses of

  • 4 . AZCUENAGA STATEMENT

    EXTRACTED KEY WORDS
    COMMISSION
    NATIONAL SECURITY
    TRANSACTION
    CONCURRING STATEMENT
    PROPOSED TRANSACTION
    DIVESTITURE
    DOCKET
    IMPLICATIONS
    PARTICIPANT
    INTEGRITY
    ASSISTANCE
    INCLUSION
    STATUTE
    TECHNICAL ASSISTANCE
    REVIEWING COMMERCIAL TRANSACTIONS
    UNCOMMON
    IMPORTANCE
    OBTAINING ADVICE
    ACUTE
    SECURITY AGENCIES
    ASSESS
    VIABILITY
    PROPOSED BUYER
    BDM ASSETS
    INCONSISTENT
    ACCOMMODATE
    PARTNER
    LOCKHEED CORPORATION
    ARKLA
    
                              Concurring Statement of
                           Commissioner Mary L. Azcuenaga
                                  in TRW Inc./BDM
    
                                 Docket No. C-3790
                        ___________________________________
    
       I agree with my colleagues that the final decision and order properly
       addresses the anticompetitive implications of the proposed
       transaction, and I concur in the Commission's decision except to the
       extent that the order makes the Department of Defense a participant
       with the Commission in giving antitrust approval to any divestiture
       under the order.
    
       As I said in my concurring statement in Litton Industries, Inc./PRC,
       Docket No. C-3656 (May 7, 1996), with due deference to the Department
       of Defense and in full recognition that it has the power to decide the
       firms with which it will deal for goods and services vital to the
       national security, no persuasive argument has been presented to
       suggest that the Department has or should have a role in deciding the
       competitive implications of a particular divestiture under Section 7
       of the Clayton Act. No showing has been made that this case is unique,
       that national security issues or concerns relating to the integrity of
       the Ballistic Missile Defense Organization's Lead Systems Integrator
       Program, to the extent they may be affected by this order, could not
       have been addressed, as they apparently have been in other
       defense-related transactions, without inclusion of the Department of
       Defense as a necessary participant in a decision committed by statute
       to the Commission.
    
       The need to obtain technical assistance in reviewing commercial
       transactions in sophisticated markets is not uncommon. The importance
       of obtaining advice and assistance is especially acute in cases
       involving issues of national security, a subject that is in the
       province of the Department of Defense and other security agencies. The
       Commission might well find it necessary to consult with the Department
       of Defense both to assess the viability of a proposed buyer of the BDM
       assets to be divested and to ensure that a proposed transaction is not
       inconsistent with national security. I would have preferred, however,
       to accommodate that need in this case by means other than making the
       Department of Defense a partner with the Commission in interpreting
       and applying a final order of the Commission.
       ______________
    
       () See Lockheed Corporation, C-3576 (May 9, 1995); see also ARKLA,
       Inc., 112 F.T.C. 509 (1989).
    
    SNIPPETS:
  • I agree with my colleagues that the final decision and order properly addresses the
  • As I said in my concurring statement in Litton Industries, Inc./PRC, Docket No. C-3656, with
  • No showing has been made that this case is unique, that national security issues or concerns
  • The need to obtain technical assistance in reviewing commercial transactions in sophisticated
  • The importance of obtaining advice and assistance is especially acute in cases involving
  • The Commission might well find it necessary to consult with the Department of Defense both to
  • I would have preferred, however, to accommodate that need in this case by means other than
  • See Lockheed Corporation, C-3576; see also ARKLA, Inc., 112 F.T.C. 509.
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