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From: Josef Serf
Date: 20 Jun 2004
Time: 19:32:50
Remote Name: pool-151-202-58-53.ny325.east.verizon.net
Continuing yesterday's posting. The case against Alpine and William Converse was tried in 1999. The trial began on September 28, 1999. The FTC used expert witnesses and scientific test results against Alpine. During closing arguments, the jury was told by a government attorney that Alpine relied on '"junk science" to support its claims, while lawyers for both Alpine and Converse said that Alpine relied on valid science. It was up to the jury to decide who was correct. On November the 1st 2000, the jury issued a verdict. Their verdict favored the FTC. Specifically, the jury found that the Alpine Industries and William Converse: “made a significant number of representations for which they did not have competent and scientific evidence in violation of the administrative consent order.” In response to the devastating jury verdict, Alpine and Converse issued a release on November 2nd stating that: “The jury was not judging the effectiveness of Alpine's products only the depth of Alpine's scientific evidence. This is an important distinction. A more accurate accounting of the verdict is that the jury agreed with the government's contention that Alpine did not have sufficient, reliable scientific evidence to support these claims. Once the new research is complete, we hope to have substantiation on additional product benefits. Until then, we encourage our customers to use the three-day product trial period to determine what personal benefits they might receive." The implication that "the effectiveness of Alpine's products" is not related to the "the depth of Alpine's scientific evidence" is truly illogical. Their response was pure sophistry. In any event, Alpine admitted that the jury agreed with the FTC that Alpine did not have “sufficient, reliable scientific evidence” to support their claims. Finally, on January 12, 2000, the judge in the case, Judge Inman, ordered that: "Defendants shall make no claims or representations in any form or by any means, express or implied, that any Alpine product can eliminate, remove, clear or clean from indoor air any quantity of any pollutant, contaminant, microorganism (including bacteria, viruses, molds and mildew), chemical or particulate, with the exception of 'tobacco smoke.' Nor shall defendants make any claim or representation in any form or by any means, express or implied, that Alpine's products prevent or provide relief from any health or medical condition of any kind. Defendants shall make no claims or representations in any form or by any means, express or implied, that the sensor installed on any of its (Alpine's) air cleaning machines is capable of controlling the ambient level of ozone in indoor air. The defendants will immediately mail copies of this order to Alpine Industries Inc.'s independent dealers, and all officers, agents and employees of Alpine Industries Inc., advising them that they are to make no representation or claim herein proscribed until further notice.” (See United States of America v. Alpine Industries, Inc. and William J. Converse).” In effect, the judge ordered Alpine Industries to stop making unsupported claims for their ozone generating air purifiers. On the same day that Judge Inman’s order was issued against them (January 12, 2000), Alpine Industries spun off its marketing operations to EcoQuest International, a new corporation. Alpine Industries’ president and chief executive officer was still William J. Converse. Michael Jackson, Alpine's vice president in charge of marketing, became the first president of EcoQuest International (what a coincidence). Jackson had been Converse’s partner in Alpine since 1994. Between the two of them, Converse and Jackson created an MLM (multi-level marketing) scheme. In effect, EcoQuest assumed ownership of Alpine’s network of dealers. Apparently, Alpine and Converse continued to make unsupported claims for its products because on April 11, 2000 the FTC and U.S. Department of Justice filed a motion asking a federal court to hold Alpine, Converse, Jackson, and EcoQuest in civil contempt. The government's motion alleged that Alpine and Converse had violated the January 2000 order by making prohibited claims about their ozone generators and that Jackson and EcoQuest, although not specifically named in the order, were bound by its terms. The court agreed. On April 5, 2001 Alpine Industries was fined 1.49 million dollars by Judge Inman. His $1.49 million penalty represents $1,000 per day for 1,490 days of "continuing failure to obey" the 1995 order against making unsubstantiated claims. In summary, the judgment was that: 1) Alpine Industries was fined $1.49 million. 2) They were ordered not to make any claim that their products "can eliminate, remove, clear or clean from indoor air any pollutant, contaminant, microorganism (including bacteria, viruses, molds and mildew), chemical or particulate...." The judgment excepts "visible tobacco smoke" or "some odors" (without specifying what odor). 3) They shall "make no claims or representations in any form or by any means, expressly or impliedly, that Alpine's products prevent or provide, or may prevent or provide, relief from any health or medical conditions of any kind." 4) The judgment does allow Alpine Industries to come back to court if they have scientific proof their products work. Incredibly, and obviously with great chutzpah, Alpine’s reaction to this very damaging judgment against them was to claim that they had won “a victory in our battle of the experts.” They trumpeted that the “United States District Court in Greeneville has established a method for Alpine Industries to present scientific evidence in support of its air purification appliances to the Federal Trade Commission.” However, the judge merely said that (a) the FTC would have to respond in timely fashion to any new evidence presented to them by Converse and Alpine; and (b) if the agency rejected the evidence, Alpine could still appeal to the court. The standard necessary for modifying the injunction was still "competent and reliable scientific evidence." By the fall of 2003, Converse and Alpine had not presented any “competent and reliable scientific evidence” so on September 26th 2003, a per curiam opinion was issued by the United States Court of Appeals for the Sixth Circuit affirming the district court’s decision for final judgment against the defendants. On December 4, 2003, the court designated the opinion as one recommended for full-text publication. Alpine and Converse finally lost the case completely. They lost because they were never able to prove the "effectiveness" of their product. They lost because they were never able to provide "competent and reliable scientific" evidence. They lost because they simply could not prove that the XL-15 did what they claimed it did. And they lost because they went back on their word and violated the terms of their 1995 agreement with the FTC. That is why they were fined so heavily. Not surprisingly, since their legal defeat they have altered the marketing of their machines to admit that the only things they are actually capable of ELIMINATING are "odors, smoke and tobacco smoke." Nevertheless, they claim that "Living Air can be used to improve the quality of your indoor air 24-hours a day on a lower setting, or as a sanitizing appliance set on high to REDUCE mold, bacteria, and mildew in a confined area" (Emphasis added.) Since the court forbade them for claiming that their devices "can eliminate, remove, clear or clean from indoor air any pollutant, contaminant, microorganism (including bacteria, viruses, molds and mildew), chemical or particulate..." they now resort to the word "reduce" instead to get around the ruling. You have to hand it to them, they are very clever. Meanwhile, they have made a lot of money from unsuspecting, naive, and uninformed people. What a shame. That's what America has become.
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