ANALYSIS OF PROPOSED CONSENT ORDER TO AID PUBLIC COMMENT The Federal Trade Commission has accepted an agreement to a proposed consent order from Syncronys Softcorp, Rainer Poertner, Daniel G. Taylor, and Wendell Brown. The proposed respondents are marketers of computer software products, including SoftRAM and SoftRAM95. The proposed consent order has been placed on the public record for sixty (60) days for reception of comments by interested persons. Comments received during this period will become part of the public record. After sixty (60) days, the Commission will again review the agreement and the comments received and will decide whether it should withdraw from the agreement and take other appropriate action or make final the agreement's proposed order. The Commission's complaint charges that the proposed respondents made the following unsubstantiated representations about SoftRAM: (1) SoftRAM uses compression technology to double the random access memory ("RAM") available to a computer using any of Microsoft, Inc.'s Windows 3.0, 3.1, or 3.11 operating systems (collectively "Windows 3.x"); (2) SoftRAM produces the effect of doubling RAM in a computer using Windows 3.x; (3) use of SoftRAM will permit a Windows 3.x user to open more applications simultaneously on a computer; and (4) use of SoftRAM in a computer using Windows 3.x will substantially reduce or eliminate the occurrence of computer screen messages that indicate insufficient memory. With respect to SoftRAM95, the complaint charges that the proposed respondents made the following unsubstantiated representations: (1) SoftRAM95 increases RAM in a computer using Microsoft, Inc.'s Windows 95 operating system ("Windows 95") to a greater extent than other software products; (2) SoftRAM95 uses compression technology to at least double the RAM available to a computer using Windows 3.x or Windows 95, and achieves RAM compression ratios of up to five times and higher in such a computer; (3) SoftRAM95 produces the effect of at least doubling RAM in a computer using Windows 3.x or Windows 95; (4) use of SoftRAM95 in a computer will speed up Windows 3.x or Windows 95; (5) use of SoftRAM95 will permit a Windows 3.x or Windows 95 user to run larger applications on a computer, and to open more applications simultaneously; and (6) use of SoftRAM95 with Windows 3.x or Windows 95 will result in expanded systems resources on a computer and will substantially reduce or eliminate the occurrence of computer screen messages that indicate insufficient memory. The complaint also charges that claims (1) through (6) are false to the extent that they apply to use of SoftRAM95 with Windows 95. Further, the complaint charges that the proposed respondents have falsely represented that Microsoft, Inc. has licensed, endorsed, or otherwise approved SoftRAM95 for use with Windows 95. The proposed consent order contains provisions designed to remedy the violations charged and to prevent proposed respondents from engaging in similar acts in the future. Part I of the proposed order, in connection with SoftRAM95 or any substantially similar product, prohibits the proposed respondents from misrepresenting that: (1) such product increases RAM in a computer using Windows 95 to a greater extent than other software products; (2) such product uses compression technology to increase the RAM available to a computer using Windows 95 or achieves RAM compression ratios of up to five times or higher in a computer using Windows 95; (3) such product produces the effect of increasing the RAM available to a computer using Windows 95; (4) use of such product in a computer will speed up Windows 95; (5) use of such product will permit a Windows 95 user to run larger applications on a computer or to open more applications simultaneously; (6) use of such product with Windows 95 will result in expanded systems resources on a computer and will substantially reduce or eliminate the occurrence of computer screen messages that indicate that the computer has insufficient memory to run the user's application(s); or (7) Microsoft, Inc. has licensed, endorsed, or otherwise approved such product for use with Windows 95. Part II of the proposed order prohibits any representation which relates to the relative or absolute performance, attributes, benefits, or effectiveness of SoftRAM, SoftRAM95, or any substantially similar product, unless such representation is true and proposed respondents possess and rely upon competent and reliable evidence that substantiates the representation. Part III of the proposed order prohibits the proposed respondents from representing that any product intended to improve the performance of any computer has been authorized, certified, licensed, endorsed, or otherwise approved by any person or organization, unless such representation is true. In addition, Part IV prohibits any representation which relates to the relative or absolute performance, attributes, benefits, or effectiveness of any product intended to improve the performance of any computer, unless proposed respondents possess and rely upon competent and reliable evidence that substantiates the representation. The proposed order (Part V) contains recordkeeping requirements for materials that substantiate, qualify, or contradict covered claims and requires the proposed respondents to keep and maintain all advertisements and promotional materials containing any representation covered by the proposed order. In addition, the proposed order (Part VI) requires distribution of a copy of the consent decree to current and future officers and agents. Further, Part VII provides for Commission notification upon a change in the corporate respondent and Commission notification when each of the individual respondents changes his present business or employment (Part VIII). The proposed order also requires the filing of compliance report(s) (Part IX). Finally, Part X provides for the termination of the order after twenty years under certain circumstances. The purpose of this analysis is to facilitate public comment on the proposed order, and it is not intended to constitute an official interpretation of the agreement and proposed order or to modify in any way their terms.