FOR IMMEDIATE RELEASE: April 5, 1989 FTC CHARGES TEXAS CHIROPRACTIC BOARD ILLEGALLY PROHIBITED TRUTHFUL ADVERTISING; BOARD AGREES TO REPEAL RESTRICTIONS The Federal Trade Commission has charged that the Texas Board of Chiropractic Examiners illegally restrained competition and injured consumers by restricting truthful advertising. Under a consent agreement announced today for public comment, the Board agreed to settle the charges by repealing its rules that prohibit truthful, nondeceptive advertising. The Board is the sole licensing authority for the approx- imately 1,600 licensed chiropractors in Texas. The nine-member board is organized under Texas law and six of its members are full-time practicing chiropractors. According to an FTC complaint accompanying the consent agreement, Texas law forbids the Board from restricting adver- tising, except to prohibit false, misleading, or deceptive prac- tices. The complaint charged the Board with adopting, maintain- ing, and enforcing rules that prohibit truthful, nondeceptive advertising. These rules have prevented consumers from obtaining information about the chiropractors' fees, services, and prod- ucts, and deprive consumers of the benefits of vigorous compe- tition among chiropractors, the complaint alleged. Specifically, according to the complaint, the Board's rules prevent chiropractors from disseminating truthful nondeceptive information in their advertising and solicitation by prohibiting them from numerous activities, including: -- using such terms in advertising as "most modern," "latest procedures," or "scientific," even if truthful and nondeceptive; -- using advertising that contains self-laudatory state- ments, even if truthful and nondeceptive; -- using advertising that contains statistical data, even if truthful and nondeceptive; -- using advertising that contains testimonials, endorse- ments or patients' case histories, even if truthful or nondeceptive; and -- displaying food supplements or food supplement bro- chures in their offices. The consent agreement requires the Board to repeal existing rules that prohibit truthful, nondeceptive advertising or solic- itation, and also prohibits it from adopting similar rules or policies in the future. In addition, the consent agreement prohibits the Board from taking or threatening disciplinary action against any person or organization that advertises truthfully. The proposed consent also prohibits the Board from declaring it to be illegal, un- ethical or unprofessional for people to engage in truthful, nondeceptive advertising. However, it does permit the Board to enforce reasonable rules and take disciplinary action to prohibit false, misleading, or deceptive advertising. The investigation was handled by the FTC's Dallas Regional Office. The Commission vote to accept the consent agreement for public comment was 3-2, with Commissioners Mary L. Azcuenaga and Andrew J. Strenio, Jr., dissenting. In a dissenting statement, Commissioner Azcuenaga said that she invited comment on whether some Board rules simply implement state law and whether the consent order strikes the right balance between consumer protection and competition. Commissioner Strenio, in his dissenting statement, stated a concern that "in some important respects the order appears to expand FTC power without due regard for the tenets of federalism and to the possible detriment of Texas patients." The consent agreement is scheduled to appear in the Federal Register April 5. It will be subject to public comment for 60 days, until June 5, after which the Commission will decide whether to make it final. Comments should be addressed to the Office of the Secretary, FTC, 6th St. and Pennsylvania Ave. N.W., Washington, D.C. 20580. A consent agreement is for settlement purposes only and does not constitute admission of a law violation. When the Commission issues a consent order on a final basis, it carries the force of law with respect to future actions. Each violation of such an order may result in a civil penalty of up to $10,000. Copies of the consent agreement, the complaint, and an analysis of the agreement are available from the FTC's Public Reference Branch, Room 130, 6th St. and Pennsylvania Ave. N.W., Washington, D.C. 20580; 202-326-2222; TTY 202-326-2502. # # # MEDIA CONTACT: Susan Ticknor, Office of Public Affairs, 202-326-2181 STAFF CONTACT: Thomas Carter, Dallas Regional Office, 214-767-5503 Gary Kennedy, Dallas Regional Office, 214-767-5503 (File No. 871 0025) (TxChiro)