COMPANY TO REFUND TERMITE BAIT SYSTEM BUYERS

THE ASSOCIATED PRESS

WASHINGTON (AP) – CONSUMERS WHO TOOK THE BAIT THAT A TERMITE REMOVAL SYSTEM WOULD PREVENT PESTS FROM INFESTING AND DAMAGING THEIR HOMES CAN GET THEIR MONEY BACK UNDER A SETTLEMENT ANNOUNCED THRUSDAY, MARCH 18, BY THE MAKER AND GOVERNMENT REGULATORS.

UNITED INDUSTRIES CORPORATION WHICH MANUFACTURES TERMINATE, HAS AGREED TO REFUND CUSTOMERS AND MODIFY ADVERTISING FOR ITE TERMITE BAIT SYSTEM. THE FEDERAL TRADE COMMISSION, THE DISTRICT OF COLUMBIA AND NINE STATE ATTORNEYS GENERAL HAD CHARGED THAT THE COMPANY’S CLAIMS ABOUT THE USE AND EFFECTIVENESS OF TERMINATE WAS DECEPTIVE AND UNSUBSTANTIATED.

ACCORDING TO THE COMPLAINT, THE COMPANY, BASED IN ST. LOUIS, ADVERTISED TERMINATE AS " THE FIRST DO-IT-YOURSELF TERMITE HOME DEFENSE SYSTEM." THE PROMOTIONAL MATERIALS IMPLY THAT USERS ONLY HAVE TO PLACE BAIT STAKES IN THE GROUND AROUND THE HOME AND TERMINATE WOULD DO THE REST, THE COMPLAINT CHARGED.

BUT THE COMMISSION SAID CONSUMERS MUST ACTUALLY INSPECT THE BAIT STAKES EVERY TWO TO THREE MONTHS OR MORE FREQUENTLY, ADD ADDITIONAL STAKES WHERE TERMITE ACTIVITY EXISTS AND REPLACE OR REMOVE THE STAKES EBERY NINE MONTHS, THE COMPLAINT SAID.

THE COMPANY FAILED TO LET CONSUMERS KNOW THAT BAIT STAKES DO NOT WORK AGAINST DRYWOOD TERMITED, THE FTC SAID, AND THAT PROFESSIONAL PEST CONTROL SERVICES ARE RECOMMENDED FOR HOMES WITH ACTIVE INFESTATION OR IN AREAS WITH DRYWOOD OR FORMOSAN TERMITES.

"TERMITES CAUSE SERIOUS DAMAGE AND CONSUMERS SPEND SERIOUS MONEY TRYING TO DEAL WITH IT," SAID JODIE BERNSTEIN, DIRECTOR OF FTC’S BUREAU OF CONSUMER PROTECTION. THE COMMISSION HAS THE AUTHORITY TO REGULATE TRITH IN ADVERTISING.

TERMINATE IS SOLD THROUGH NATIONAL HOME IMPROVEMENT STORES AND REGIONAL CHAINS FOR $60 TO $100.

UNDER THE AGREEMENT FILED IN U.S. DISTRICT COURT IN BALTIMORE, THE COMPANY WILL NOT MAKE ANY SUCH CLAIMS WITHOUT RELIABLE SCIENTIFIC DATA TO SUPPORT THEM. THE COMPANY MUST ALSO DISCLOSE IN ITS ADVERTISING THAT THE PRODUCT IS "NOT RECOMMENDED AS SOLE PROTECTION AGAINST TERMITES, AND FOR ACTIVE INFESTATIONS, GET A PROFESSIONAL INSPECTION."

THE COMPANY SAID ADDING THIS STATEMENT IS CONSISTENT WITH PAST COMMUNUCATIONS.

"THIS AGREEMENT DOES NOT CHANGE THE OVERALL MEEAGE THAT WE HAVE BEEN SENDING SINCE THE PRODUCT’S LAUNCH. IT DOES, HOWEVER, MAKE SOME CLARIFICATION IN THESE COMMUNICATIONS," SAID JIM OLSEN, GENERAL MANAGER OF TERMITE PRODUCTS FOR THE COMPANY.

HE SAID TERMINATE LABEL LISTS FOUR STEPS CONSUMERS SHOULD TAKE IN ADDITION TO USING THE PRODUCT TO REDUCE THE RISK OF INFESTATIONS.

CONSUMERS MAY SEEK A REFUND WITHIN 15 MONTHS OF PURCHASE OF THE PRODUCTS.

THE ORDER ALSO REQUIRES THE COMPANY TP PAY DISTRICT OF COLUMBIA AND THE FOLLOWING NINE STATES $40,000 EACH FOR INVESTIGATION AND LITIGATION EXPENSES: FLORDIA, GEORGIA, KENTUCKY, MARYLAND, OHIO, NEW JERSEY, NORTH CAROLINA, TEXAS AND VIRGINIA.

WARNING! WARNING! BEFORE YOU TRUST THE PROTECTION OF YOUR HOME TO A TERMITE BAITING SYSTEM. READ THE PEST CONTROL COMPANY’S WARRANTY COVERAGE VERY CAREFULLY. MOST PEST CONTROL COMPANIES DON’T PROVIDE ANY TERMITE DAMAGE WARRANTY COVERAGE WITH TERMITE BAITING SYSTEMS.