nONAL 213 - Federal Trade Commission€¦ · BEVERLY HILLS WEIGHT LOSS CLINICS INTERNA nONAL 213...

BEVERLY HILLS WEIGHT LOSS CLINICS INTERNA nONAL 213

213 Complaint

IN THE MATTER OF

BEVERLY HILLS WEIGHT LOSS CLINICSINTERNATIONAL , INC.

CONSENT ORDER , ETC. , IN REGARD TO ALLEGED VIOLA nON OFSECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3515. Complaint, Aug. 1994- Decision , Aug. , 1994

This consent order prohibits , among other things , a commercial diet programcompany from misrepresenting the perfonnance or safety of any diet programit offers in the future , and requires the respondent to possess competent andreliable scientific evidence to substantiate any future claims it makes aboutweight loss , weight loss maintenance , or rate of weight loss; to make a numberof disclosures regarding maintenance success claims; and to disclose allmandatory fees.

Appearances

For the Commission:

Richard F. Kelly.For the respondent:

Boston , MA.

Gary S. Cooper, Charles La Due and

Gary Buchman, Hassman Rachsteln

COMPLAINT

The Federal Trade Commission , having reason to believe thatBeverly Hills Weight Loss Clinics International , Inc., a corporation("respondent ), has violated the provisions of the Federal Trade

Commission Act, and it appearing to the Commission that aproceeding by it in respect thereof would be in the public interestalleges:

PARAGRAPH 1. Respondent Beverly Hills Weight Loss ClinicsInternational , Inc. ("Beverly Hills ), is a Virginia corporation , withits principal office or place of business at 200 Highpoint A venueSuite B- , Portsmouth , Rhode Island.

PAR. 2. Respondent advertises, offers for sale , sells, and

otherwise promotes throughout much of the eastern Cnited Statesweight loss and weight maintenance services and products, andnakes them available to consumers at numerous "Beverly Hills

214 FEDERAL TRADE COMMISSION DECISIONS

Complaint 118 F.

Weight Loss Clinics" in many states. These products include "food"within the meaning of Sections 12 and 15 of the Federal Trade

Commission Act. Through clinics owned by Beverly Hillsfranchised by Beverly Hills, and licensed by Beverly Hills to use theBeverly Hills trademark and the Beverly Hils weight loss and weightmaintenance services and products , respondent is engaged , and hasbeen engaged , in the sale and offering for sale of low calorie diet(LCD) weight loss programs and weight maintenance programs toconsumers.

PAR. 3. In the course and conduct of its business, respondenthas disseminated or caused to be disseminated advertisements forweight loss and weight maintenance services and products.Respondent has placed, or has authorized the placement of, theseadvertisements with numerous newspapers , radio stations, andtelevision stations for the purpose of inducing consumers to purchaseits products and services. Respondent further advertises the BeverlyHills weight loss programs through the use of promotional materialsincluding pamphlets and brochures, given to customers and

prospective customers at individual Beverly Hills Weight Loss Cliniclocations.

PAR. 4. The acts and practices of respondent alleged in thiscomplaint have been in or affecting commerce , as "commerce" is

defined in Section 4 of the Federal Trade Commission Act.PAR. 5. Respondent s advertisements and promotional mater-

ials include , but are not necessarily limited to , the advertisements andpromotional materials attached hereto as Exhibits A-

PAR. 6. The advertisements and promotional materials referredto in paragraph five , including but not necessarily limited to theattached Exhibits A- , contain the following statements:

(a) RESULTS'BEVERLY HILLS GUARAI'TEES THEM.Safe , fast , effectiveGuaranteed results(Exhibit AJ

(b) RESULTSBEVERLY HILLS GUARANTEES THEM.Lose Up To 7 Pounds And A Full Dress Size In One Week!Weight Loss Guaranteed* for Life.(Exbibit B I

(c) FUNBEVERL Y HILLS MAKES WEIGHT LOSS FUN

BEVERLY HILLS WEIGHT LOSS CLINICS INTERNATIONAL 215

213 Complaint

And I Have Only 5 Pounds to Ga.Weight Loss Guaranteed* for Life.(Exhibit CI

(d) It' s Real Food , Real ResultsAt Beverly Hills , you eat the same food you serve your family. And youwilJ !ose 2 to 5 pounds each week. Our program helps you reach yourgoal weight and keep it off. Put your trust in the people who know--Qur

clients. They yc had proven results.Kimberly Wiggins ... 44 Yz Ibs. 57 Yz inches(Exhibit Dj

(e) Laura L. Porter. lost 24 3/4 Ibs. & 28 y,Although this is a true story, it is not an unusual story. It is something ourcounselors hear everyday. Why not let us help you get a new lease onlife?LOSING WEIGHT DOESN' MAKE SENSE UNLESS YOU KEEP ITOFF!BEVERL Y HILLS Weight Loss Clinics

Where Temporary Loss Is No Success(Exhihit EI

(f) Beverly Hills says put your trust in the claims of people who know - ourclients. They ve had proven results. After aU , aren t they the ones youcan really trust...Steve Gaddy". I 00 Lbs. 68"Beverly Kuch" .46 Lbs. 41 'I,'

lExhibit Fj

(g) Some weight loss companies claim to be the best, based on a comparisontest that everyone seems to be refuting. Others claim they re best, basedon a newspaper reporter s opinion.Beverly Hills says put your trust in the claims of people who know - ourclients. They ve had proven results. After all , aren t they the ones youcan really trust?Francis Foster Lost 33 lbs.Kathy Cooper Lost 68 lbs.Debbie Rogers Lost 35 lbs.Winnie Sutton Lost 42 1/2 lbs.

lExhibit GI(h) DREAMS DO COME TRUE

I Lost 30 Pounds and I Feel Great.... Guaranteed. Lose 3-7 Pounds Per Week(Exhibit HJ

(i) REVOLUTIONARY PROGRAM SHEDS THOUSANDS OF POU!\DS.Beverly Hills Gave Me The Willpower.

... Guaranteed. Lose 3-7 Pounds Per Week(Exhibit II

PAR. 7. Through theparagraph six, and others

use of the statementsin advertisements and

set forth in

promotional

216 FEDERAL TRADE COMMISSI01\ DECISIONS

Complaint 118 FTC.

materials not specifically set forth herein , respondent represents andhas represented, directly or by implication , that Beverly Hillscustomers typically are successful in reaching their weight loss goalsunder the Beverly Hil1s weight loss programs.

PAR. 8. Th'ough the use of the statements set forth inparagraph six , an", others not specifical1y set forth herein , respondentrepresents and has represented, directly or by implication , that at thetime it made the representation set forth in paragraph sevenrespondent possessed and relied upon a reasonable basis thatsubstantiated such representation.

PAR. 9. In truth and in fact , at the time it made the represen-tation set forth in paragraph seven , respondent did not possess andrely upon a rcasonable basis that substantiated such representation.Therefore, the representation set forth in paragraph eight was , and isfalse and misleading.

PAR. 10. The advertisements and promotional materials referredto in paragraph five , including but not necessarily limited to theattached Exhibits J. , contain the following statements:

(a) THE FINAL SOLUn01\ To Your Weight ProblemLOSE WEIGHT FOREVER....We do not consider weight loss successful unless its permanent. There isa reason why our method works to keep weight off where others fail.Come to the nearest clinic for a consultation and let us demonstrate ourfamous method of easy permanent weight control.lExhibit JJ

(b) GUARANTEED* WEIGHT LOSS FOR LIFE. Beverly Hills glIantees weight loss forever! Not just for this year but

for all the years to come.fExhibit Kl

(c) LOSE WEIGHT QUICKLY & SAfELYLET BEVERLY HILLS SHOW YOU THE WAYBEVERL Y HILLS Weight Loss Clinics

Where Temporal)' Loss Is No Success(Exhibit LJ

(cl) 8 DRESS SIZES & GAI:'ED BACK NOTHI:'G BUT SELF- ESTEEM... I'm ELATED after going from a size 12 to a 4!! The best part thoughis I have kept my eight off now for 15 months.Debhie Jones 30 Lbs.lExhibit MJ


213 Complaint

(e) We Have a Secret!The secret to slimming down and staying slim....

s called Guaranteed* Weight Loss For LifeI have stayed slim for more than I 1/2 ycars

301bs. Denise Gillispie(Exhibit

(I) Carol Telly

Lost 22 Ibs. & 25 inches three years ago. Stil maintaining.

lExhibit OJ

(g) "

Since I became a Beverly Hills woman , I've lost 20 pounds , and I'never gain them back!" - Jackie C.Weight Loss Guaranteed for Life.(Exhibit PJ

PAR. I!. Through the use of the statements set forth inparagraph ten, and others in advertisements and promotionalmaterials not specifically set forth herein , respondent represents andhas represented , directly or by impJication , that:

(a) Beverly Hills customers typically are successful in reachingtheir weight loss goals and maintaining their weight loss either long-term or permanently; and

(b) BeverJy Hills customers typically are successful in main-taining their weight loss achieved under the Beverly Hils weight Jossprograms.

PAR. 12. Through the use of the statements set forth in

paragraph ten , and others not specifically set forth herein , respondentrepresents and has represented , directly or by implication , that at thetime it made the representations set forth in paragraph elevenrespondent possessed and relied upon a reasonable basis thatsubstantiated such representations.

PAR. 13. In truth and in fact, at the time it made therepresentations set forth in paragraph eleven , respondent did notpossess and rely upon a reasonable basis that substantiated suchrepresentations. Therefore , the representation set forth in paragraphtwelve was , and is , false and misleading.


Complaint 118 FTC.

PAR. 14. The advertisements and promotional materials refeITedto in paragraph five, including but not necessarily limited to theattached Exhibits 0, E, I and L , contain the following statements;

(a) And you will Jose 2 to 5 pounds each week.(Exhibit DJ

(b) LOSE 3-7 LBS. PER WEEK(Exhibits E and LJ

(c) Guaranteed. Lose 3-7 Pounds Pcr Week.(Exhibits Hand!J

PAR. 15. Through the use of the statements set forth inparagraph fourteen , and others in advertisements and promotionalmaterials not specificalJy set forth herein , respondent represents andhas represented , directly or by implication , that customers on theBeverly Hil1s weight loss programs typical1y lose weight at anaverage rate of two to five or three to seven pounds per week.


paragraph fourteen, and others not specifical1y set forth hereinrespondent represents and has represented , directly or by implication,that at the time it made the representations set forth in paragraphfifteen , respondent possessed and relied upon a reasonable basis thatsubstantiated such representations.

PAR. 17. In truth and in fact, at the time it made therepresentations set forth in paragraph fifteen , respondent did notpossess and rely upon a reasonable basis that substantiated suchrepresentations. Therefore , the representation set forth in paragraphsixteen was , and is, false and misleading.

PAR. 18. In the routine course and conduct of its business,respondent states during initial sales presentations that consumerswilJ typically reach their desired weight loss goals within the timeframes computed for their programs by Beverly Hills Weight LossClinics ' personnel.


paragraph eighteen , and others not specifically set forth hereinrespondent represents and has represented , directly or by implicationthat at the time it made the representation set forth in paragraph

BEVERLY HILLS WEIGHT LOSS CLINICS I:-TERNA TIONAL 219

213 CompJaint

eighteen , respondent possessed and relied upon a reasonable basisthat substantiated such representation.

PAR. 20. In truth and in fact, at the time it made therepresentation set forth in paragraph eighteen , respondent did notpossess and rely upon a reasonable basis that substantiated suchrepresentation. Therefore , the representation set forth in paragraphnineteen was , and is , false and misleading.

PAR. 21. The advertisements and promotional materials referredto in paragraph five , including but not necessarily limited to theattached Exhibits Q and R, contain the following statements:

(a) Only Beverly Hills Has A Totally Safe Weight Loss Program.

Our Diet Plan Is Comple1e.We are the first major wcight loss clinic to recognize the importance ofadding Essential Fatty Acids as a dietary supplement. We call thiswonderful product BEV-EFA. You ll call it miraculous. And onlyBeverly Hills offers it.(Exhibit QJ

(b) SCIENTIFIC ADVANCEMENTBEV-EFA Makes Our Weight Loss Plan Complete.This Beverly Hills supplement will help you prevent the problems thatpatients in other weight loss programs could experience.Weight loss without Essential Fatty Acids supplementation may lead tosuch symptoms as: hair loss , skin changes , diarrhea , as well as possiblemetabolic effects. There is experimental evidence from animal studies

that EFA deficiency may contribute to the development of cholesterolgaJIstones. By adding BEV-EFA to our weight loss supplement plan , youwill be protecting yourseJf against the negatjve characteristics associatedwith weight loss. And ONL Y Beverly HiJJs offers this marvelous dietarysupplement.rExhibit RI

PAR. 22. Through the use of the statements set forth inparagraph twenty-one , and others in advertisements and promotionalmaterials not specifical1y set forth herein , respondent represents andhas represented , directly or by implication, that the Beverly Hillsweight loss programs are safer than other weight loss programs thatdo not include essential fatty acid supplementation.

PAR. 23. Through the use of the statements set forth inparagraph twenty-one , and others not specifically set forth herein


Complaint 118 FTC.

respondent represents and has represented , directly or by implicationthat at the time it made the representation set forth in paragraphtwenty- two , respondent possessed and relied upon a reasonable basisthat substantiated such representation.

PAR. 24. In truth and in fact, at the time it made therepresentation set forth in paragraph twenty- two , respondent did notpossess and rely upon a reasonable basis that substantiated suchrepresentation. Therefore , the representation set forth in paragraphtwenty- three was , and is , false and misleading.

PAR. 25. In the course and conduct of its business , respondentprovides its customers with diet instructions that require saidcustomers Inter alia to come in to one of respondent s weight lossclinics three times a week for monitoring of their progress , includingweighing in. In the course of regularly ascertaining its customersweight loss progress , respondent , in some instances , is presented withweight loss results indicating that customers are losing weightsignificantly in excess of their projected goals , which is an indicationthat they may not be consuming all of the food prescribed by theirdiet instructions. Such conduct could , if not corrected promptly,result in health complications.

PAR. 26. When presented with the weight loss results describedin paragraph twenty-five , respondent on many occasions has notdisclosed to the customers that failing to follow the diet instructionsand consume all of the food prescribed could result in healthcomplications. This fact would be material to consumers in theirpurchase and use decisions regarding respondent s weight lossprograms. In light of respondent s practice of monitoring people onthe programs, said failure to disclose was , and is, a deceptive

practice.PAR. 27. The advertisements referred to in paragraph five

including but not necessarily limited to the attached Exhibits D , F, K, N , 0 , R , Sand T , contain the following statements:

(a) Special 6 Weeks For $69. lab inc1uded. 6 week minimumIExhihit DJ


213 Complaint

(b) Final WeekLimited Special$10.00 per week. Lab includcd. Eat grocery store foods.6 week minimum(Exbibit FJ

(c) 4 WEEKS ONLY $49(Exbibit KJ

(d) 8 WEEKS ONLY$99Plus Pay Only $ I .00 For Complete Lab Test(Exhibit Ml

(e) Get 5 weeks of weight loss for only $59(Exhibit Nj

(f $ lOa weekmedical fee included6 week minimum(Exhihit OJ

(g) 8 WEEKS OF WEIGHT LOSSONLY $9900 plusPay only $1 for complete lab test(First Time Visit Bonus)IExhibit RJ

(h) ONE LOW PRICE $5

Program average weekly cost(Exhibit Sl

(i) ONE LOW PRICE!30 lb. Program Will Average$4)0 Pcr WeckfExhibit Tl

PAR. 28. Through the use of the statements set forth inparagraph twenty-seven , and others in advertisements not specificallyset forth herein , respondent represents and has represented , directlyor by implication , that the advertised price is the only cost associatedwith losing weight on the Beverly Hil1s weight loss programs.

PAR. 29. In truth and in fact , the advertised price is not the onlycost associated with losing weight on the Beverly Hil1s weight loss


Complaint 118 F.T.C.

programs. There are substantial additional mandatory expensesassociated with losing weight on the Beverly Hils weight lossprograms that far exceed the advertised price. Therefore , therepresentation set forth in paragraph twenty-eight was , and is , falseand misleading.

PAR. 30. In its advertising and sale of the Beverly Hils weightloss programs , respondent has represented that the advertised priceis the only cost associated with losing weight on the Beverly Hilsweight loss programs. Respondent has failed to disclose adequatelyto consumers the existence and amount of all mandatory expensesassociated with participation in the Beverly Hils programs. This factwould be material to consumers in their purchase decisions regardingthe programs. The failure to disclose this fact, in light of therepresentation made , was , and is , a deceptive practice.

PAR. 31. The advertisements referred to in paragraph fiveincluding but not necessarily limited to the attached Exhibits

contain the following statements:

(a) 1st TIME PATIENTS ONLY2 WEEKS FREElExhibit UJ

(b) 2 FREE WEEKSCall For An AppointmentFirst time members only. :vust be 30 lbs. or more overweight.(Exhibit VJ

(c) FREE' FREE' FREE'

FREE - 4 WEEK WEIGHT LOSS PROGRAM(Exhibit WI

(d) WANTED20 persons to paricipate in a FREE WEIGHT LOSS PROGRAM. Mustneed to lose 30 pounds or more. In return , you will authorize BEVERLYHILLS to use photos and testimonials for advertising purposes. Completedetails available in person only..(Exhibit Xl

PAR. 32. Through the use of the statements set forth inparagraph thirty-one , and others in advertisements not specifical1y setforth herein , respondent represents and has represented , directly or by


213 Complaint

implication , that respondent s weight loss programs are being offeredto consumers at no cost.

PAR. 33. In truth and in fact, the receipt of free weight lossservices is contingent upon the purchase , at substantial expense to the

consumer, of other goods or services that are mandatory forparticipation in the Beverly Hills weight loss programs. Therefore,the representation set forth in paragraph thirty-two was , and is, false

and misleading.PAR. 34. In advertising the free offer of weight Joss services

under the Beverly Hil1s weight loss programs , respondent represents

and has represented that its weight Joss programs are being offered toconsumers at no cost. Respondent has failed to disclose adequatelyto consumers that the receipt of free weight loss services iscontingent upon the purchase , at substantial expense to the consumerof other goods or services that are mandatory for participation in theBeverly Hills weight loss programs. This fact would be material toconsumers in their purchase decisions regarding the programs. Thefailure to disclose this fact , in light of the representation made , was

and is, a deceptive practice.PAR. 35. In providing advertisements and promotional materials

referred to in paragraph five to its individual franchised or licensedclinics for the purpose of inducing consumers to purchase its weightloss and weight maintenance services and products , respondent hasfurnished the means and instrumentali ties to those clinics to engagein the acts and practices alleged in paragraphs five through thirty-four.

PAR. 36. The acts and practices of respondent as alleged in thiscomplaint constitute deceptive acts or practices and the making offalse advertisements in or affecting commerce in violation of Sections5(a) and 12 of the Federal Trade Commission Act.

Commissioner Owen was recorded as voting in the affirmativebut dissenting as to the exception requiring ful1 numerical disclosuresinvolving quantitative weight loss maintenance claims in short radioand TV ads.


Complaint118F.T

EXHIBIT A

'..nr "7 7/W ,.3U co

RESUL TSI

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SEVERL Y HILLS

1',

::':

GUARANTEES THEM. I.

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:ffi't.

. '.':"" '"'; : :,:,- ' . ". :

\d

. Medically SUpervised

. Safe. fast efective. Long term maintenance. Individual COWlselJng. Cuarteed resu

mUJ

Hurry Before Summer Endsl

"O cr no na tmerb

VINTON 981-200ROANOKE 362-7100BLACKSBURC 951-240WYHEVILL 228-9111

~~~


213 Complaint

EXHIBIT B

BEVERLY HILLSGUARTEES MM.lAse Up To 7 Pounds And A Full Dres Size InOne Week! Weight lAss Guarnteed. for Life.

(OFFER GOES HERE

w"ks of weight los . 6 weeks of stabilization. 52 weeks of mainlenance . Labwork & medicafee included' 1 week of nutrilional supplementS

W,il LD" amiI A" M,d.", S'p.St!Ok, Dit ry FoJ CcJ d! FDA Rtq.irrm!

'PIOjram dm llnd rtquirtmcnn .",.nlblc II Uth clinicElchclinicinckptndcnrIYQ\ncdmdoprmd.

(CLINIC LcxTlON AND PHONE NUMNBER)

You re Kolni to kM II fr the wry Rnt minUte.

226

Complaint

FEDERAL TRADE COMMISSION DECISIONS

EXHIBIT C

BEVERLY HILLSMAKE WEIGHTLOS RJ.

nd I Have Only5 Pounds To Go:'Weight Loss Guaranteed-(or Lie.

(OFFR GOES HERE

weelc of weight . 6 weelc of 5!abuizti. 52 weelc of m,,n1enana. Labwork & m.rcaJ (ees induck. I week of nU1.i,ional supplement!

Wtilhr Lou OiniCJ

,",diceD S,f'! 0. 1J,, foCm WiI fD

.".

'Pronm &uih .nd It'iwTHnu IVli4biII nc:h

Each ctlnic nt1, ow an opmlrd

(CLINIC lcxTlAND PHONE NUMBER)

III #I',.Yo' ,t lOin. re 10 II fr 1M om nn mlnutc.

118 F.TC.

BEVERLYHILLS WEIGHT LOSS CLINICS INTERNA TlONAL 227

213 Complaint

EXHIBITD

RECORD OF ADVERTISiNGUU81"

DA TEiDA Y(Ad appeare In paper

!LrqlCLINIC

DIRECTOR WEATIER CONDmONS

AT BEVERtY IIILl,s

lea focf(M

At Be Hi, yOU easae roo you

your f8J.And-you wU106 2 to 5pounds eac wek. Ouprogr he. youruch your goa weigt

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Special6 Week. $

For

Pu )'ur tr Ln th peplewho mow-our c.enU.

They ve ha proV!n resut!.

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W'U1ton- Salem

mlll 659-1364iI II Z

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NEWSPAPER 'D\ ''ID.....&.II..hll

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COMMENTS.

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BEVERLY HILLS WEIGHT LOSS CLINICS INTERNATIONAL

213

l""

Complainl

EXHIBITF

1J.

IRECTOR

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C.-LS

OA TEiOA Y(AJ app r(d In p(r)

WEATHER CO,\OITONS

Trt wftOW" customes

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Complaint 118 F.T.c.

EXHIBIT G

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BEVERLY HILLS WEIGHT LOSS CLINICS INTERNATIONAL

Complaint

231

213

EXHIBIT H

REVOLUTIONARYPROGRA SHEDS

THOUSANDS

OF pOUNDS.

IJU300:j

. .

verly Hills

;'

Ga

"1 Th Willpowe."

Jid

. ReYutSyem

ryRE-lRvfMse

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. Prwate One-

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. L

i.lsestye Ma,nlet'rc ram

IfeUtO; CUh

Coli Now FoDetails

(OJNK: lCCT'

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Complaint

EXHIBIT I

DREAS DO COME TRUE

I Lost 30Pounds and IFel Great."

. Revutry R.-i FMJ

Slemk;I se&.Ao.

. Gorantee. las 3-7 Flrd f\

. fI,vale One-ne CDunseilng &Supr

. Ec Nut=l Balarr flls

. Uteste I.\anleoorc ogram

Eah OlnlcIndependenttOw &Oprated

0,11 No Details

/-MfCtl(QJNI LOC

"""")

ON 'f CJ FR FO 1.876-

118 FTC.

111)311(1:;

Exhibi t :

BEVERLY HILLS WEIGHT LOSS CLINICS INTERNA TIONAL 233

213 Compluinl

EXHIBIT J

Exhibi t ::


Comp1aint 118 F.T.c.

EXHIBIT K

(1uJUU

Guaranteed' WEIGHT LOSS FOR LIFETIS YE I RESOLVETO MOVE TO BEVERLY HILLS.

OSing weight can be a drea come truewith Beverly Hil. How do I know?Because may of my frends have lost

weight the Beverly His way and they had a bladoing it' Theyve conviced me tht BeverlyHill is the only progr tht has reayworkedAnd, do you know what - Beverly Hills

gutees weight loss forever! Not jut forthis year but for al theyears to come. You simply can t go wrong. .

I'm joing Beverly Hils Itody. You should , too' !I can t wait to become .the persn I wa meat

III\CIm

..tkujh_ AYa.T..LoOifMc. o-&

-8~zewoo 898-1773Staffor 859-

a IN YOUR OWN FRACHISE -INFORMATION 1-876-

.. -' , . /

. 4 WEEKS ONLY 4.9 Exhi

\. , - . .

bit K


213 Complaint

EXHIBIT L

UIJJOIJ'?

QUICKLY & SAFELY/nserllt:SIUnnial hue.skem crnnc me/ul

m.ckd mp!djl:dicc.kd dkvc kc c dk v rk'

cmxbmc..

LET

BEVERLY HILLS

SHOW YOUTHE WAY

Ins en PhOlo

ere

M.f)Sm/lh ofelos/SO/b Iry, Sial.

and 'fI-

~~~~

The Height a Person

Can Reach is LimitedOnly By His Vision

. MEDICALLY SUPERVISED

. LOSE 3- 7 lBS, PER WEEK

. NO SHOTS , NO PilLS , NO EXERCISE

-EAT RWULAI1 , NUTRITIONALLY BALANCED MEALS

Dr. E bll FIll

CALL TODAY000-00000000 Slreet City State

lMlllt_C4n

u."'cu.."'DU' !:NDEN'lYQYEDA()WoTED

Where Temporary Loss Is No Success

Exhibi t L


EXHIBIT M

8 DRESSSIZES &GAINEDBACKNOTHINGBUT SELF.ESTEEM!"

A1&f my door told me10 lose weigh! or walk witha cane In 10 years, ! wanC

slraightlo Beverly HII!IWeIght loss Clinic!!coldn' believe it. ! wasIosillwelgwifpowders, piS Of shots& I'm El anar goinglrom a size 1210 a 411

Th be part lhohIs !have kept myweiQhI0" now lor 15 monlhs&evena!\eralltl1istime,I Cin slin COn! on thesian at Bever1y Hills forconseling & supprt!"

737-3511Towne Centre

(Next \0Goody

Elizabetlltown

Complaint

Debbie Jones30 Lbs,

lm mf1ekllI tAA C4i1fU

18 WEEKS ONLY

!$99,..'JT!:" T11'tc ,.rrc-n "..,.,... TOI.r- ''''''"' .., ,..... I

118 FTC.


213 Complaint

EXHIBIT :-

UUlJloJ

We Have a Secret!The secret to slimming down

and staying slim....It' s called

Guaranteed*

WEIGHT LOSS FOR LIfE

TOWNE CENTREEllzabethtown

m mtMfCProgram Delab an Requirements II yol 'o clni

Fo, the be.t In locol Sport. Coveroge '90dTh Ne\\Flter

Complaint


118 FTC.

238

EXHIBIT 0

, UJ,

CLINIC DA TEiDA Y(Ad .:ppeared In ptlper)

DIRECTOR WEATHER CONDITIONS

Beverly Hils Says:

. 11 \1\'I

tiO01'OUr . Ra

a""Stn! Foo

eTrvel, DiH)e Nur on Sta

. ?n\":ltf (OW\ llg. Lo o.1\ed

CuITeUyMa hr c-o.ab. .tI_-

.....

!I-"FINAL _WEEK = = iI

lflll

~~~~~

NEWSPAPER

CALLS

APm

/;-

q-t

SHOWS

COMMENTS:

lll


213 Complaint

EXHIBIT P

'-;"

toolv (Jrea.

, .

Since I bee a Berly Hi AX\

.. .

woma, I've los 20 pounds, and

:" -=. ;'

I'll nevr ga them back!"

. \

:: I 'ilJackie: -

. _ ( -

' f

.. -- .. . '

Take it frm Jackie C. She lost 20 pounds .. ,-L

and she looks as grt as she f ls. You ca bea Merly Hills woman and look great , roo.

Ou clinics are medically su ise. Theprogr is safe , fast , and our dietary foocomply with FDA requirements. Join tOy and enjoy the5 grea bets:

frm 3 ro 7 pounds and a ful! dres sue . 4 WtKs of ight 1055 . 6 wc 1c ofin one v.k. stailiztion. 52 Wtbof maintenace

. Lab\\r & mcdica f included

. 1 Wtk of nutrtionaI5uppl ent:C"bo... .w..UI"'''.

.-""--

Weight Lo Gu,.. for 'Life:

mllr(CLI1C LOCON

A.\'D PHONE "'UER

You re goin ro Jove it frm the very f=t min\Ju


Complaint

EXHIBIT Q

Only : ;fI1i'fJfi

" ' :' ". . - , ., ..

1 lI f..

- . ;:..

A Totally afe"

Weight'Lo PrQgfai#+

" . ; . ", '; ;.. , . -

j I. A: .

. ,

Ie an s omp r:::,,!We are , the first major weighllQss clinic 10

rtCogniu the importance ,!f adding Essenoa1 atty. '

Acids as a dieta supplement. We caB ths 1),;;

, -

wonderful product BEY. EFA. Y lJ caJJ)t '

;-'

mirculo , And only Be ffc:

'':

Our weighl)oss plan is med iCaJIY super:is

and you can lose: 2 10 5 pounds r week. Thc:rt '

no shots, and you cal reguhU, nulrlionalJy balancedmeals.

;. "

.J.:" .

So join lhe weight loss program Iha beSL

, ". . - .

' "U fH,,Call for this

- ,

;Towne C !!trel'1eek' s S ecial' Ehzabethto

' \:

. 7.351l

:' ;:'

D(\!(DUIHIIL C4i1

1!tmmuli'

':I/- I 11Qo

118 FTC.

)( () ;


213 Complaint

EXHIBIT R

' .

iWMtffili, mi v 0 l iji tW1~i'

" , ".

J I

, . ~~~ ~~~~ ~~~~~

\a1

~~~

Ft!t, " " lur ~'J n," 'forI09Pultl' ''d)U"'' 1o''1s0''

~~~

Jl, :;;::;uI Bi;

"I' HII1;';Jh;

~~~~

h;;

:/- g:?j; ~~~

loss dmlc. to Tfcogmlt the !mporUc.e

, '

' /l)l ?1r-tx rimenUl evdenCt fTor an!mahbJdles Th.lIdding.EMential f'att Acids as a.dietary.

; "

EFAddldtlC) contrlle to thesuppt ent:We caJi this, nderf" :1; i;'':!11p"

; . '

dtYeloPmt(or lutqpaatoou

~~~~ ::

r\:.

. " .: " , . ;;" ~~~ ~~~. " ;, :;-

;:1'

. :!.

.J'1'

..,

:" R !Hm '"

';)' . ,

our ;uppltmtl1t'EFA - nlial Fatt Acids sup..

":

;- U II UMI. :g;:I:1I .

' ..

itrJJlanL wlllbc' ttct!ng;!p\emen tJcn 1 now kt) feature 9f) 1;:, ; urstl(agat('5 1 t.tour weight )055 program, And,

;,

i:': , , 1 ;I'

:,\.:.

. -negalie char ttr t\cs,'

1iKetheentireBeverlyHillsprogriU

- '

i.. \4: . 4S?Clatedwlthwelght:l

f BEV.EFA '1) be d :: I ; f' -'t2l"

"...

' loss. And ONLY Bevu!y

c.1 supervis :Th

~~~

2~t Rl1t tt '

: - '

u:li nt Hd!ssupplemtntWJllhtlpyo /1'

i: BfnRlYIHIUS

~~~

I prevent the problerns t.Ptients

..

t . .our, compldt"W!ghtin ot e!;N

, ,

h!. I,o!op rogra S?U

: ' ' '

(PI*'t ;Ct 6rf' 19 prog dJcaly:.eJ:penence. 1 J.i \ 'f:'.J - 1:if"

~~~

1ht J'" ql.:. superv1sw, and,ncr,:

~~~ , - ::

BEV EFA)\'

j, ." ''j

!thBE EfAyoLJca

tVh

' , ,. +". . '" . '"

los, 1 to?,pounds "'1J "

. .

. !M eMUY.

. y.

younee

"," ' -:,-". . '"..

'",.',"a'hoOan';

. BEV- EFA '

' , . ;-

C:J;

~~~. ,

' TheBeve ly'HillsWeight, There is scienlinc and medical evidence

" -: " , ,

- i'

': ,

-; Clinic progr.m nQw with BtV.EF"that most reduced C3orie diets do not

. . '

help you , , enjoy the brand new you.

,contain adeqlJa:c amounts cfEF" and

: : ,)- . :- . -

T;.at IS our personal rantee of

. ' '.;" 'j-

r:.j1'

::..,

fi. ourwc.essl

. .

once 3 g3in Be rIY IS" eigbtIL ' ss 1in" ic is!("

!'"

1 'i

::' , ,:" "j, " ''.

i:':!'') Y;I:l'

. ,

J \1!fi'-'l'

!:"" , '

:'''c, elghr osp!1dP':J'

: ' , ; '

:I;, I, , :,..:"" f

;.(: ''\

I'fr!t

~~~

H",

. ' . '

Il'"\!.t.L" JO ay" '

' ..

ll(' 37j3g.i:

~~~

:7"

hibet

, OWNE CtNTRE 27' ON' BLVD.pmA.iCO,'kC!i1lu 117 'RFT1-TnW",.1 . TJ!\C''rr,W'o,


Complaint

EXHIBIT S

ev,='eiL QT '\ ,,D("''''' \ V('-)II'\ d-1\'ld\.),:o- Er.f,..p..iSfC

..,: .

CORJULI!NT" FL!IHY"' QROS.. ,tHEAVYJ' 'oJ tIOVERBLOWN' OVERW H' '!PORCINI"ROTUN

",,

IEEFY.! BULKY..' CHUNKY' DUMP:, - bill ,:1IFULLBODIED . HEAVYIIT . SQUAT /.ITOCKY:.:a..,

STUBBY' THICK' THICKSET UNCHY.:rIELLlED .RAWHY ~URJ.

!,.

:I"

. . .

HG d 10

,,,, ,,,,,,,,,,:

~Ei.gS8..,.u;IJN

S , 4P, b'W, .ALLURING' El:'(

g')

YF.'i" ,"" ",D "TANrAL1ZING,.

, """''', " ... , ,

~6G:!J1dI!llb'rr jlf Jlm'-oC ilf:yo WOld Ilks Pt:

~~~

f!h.nU1l:.8C1thsecoQrOp;.shcyfdnt~be(j.,nl\Or 0./ srlC'('

jolnlnc our' (jrOp?

'''')j

i!qr . tr

' . ", , ' ., ' '

r",ONE LOW PRICEProgram avcrage

weeklv cost.

"1, "

\- :

1IRFTC.

"\1,

BEVERLYHILLS WEIGHT LOSS CLINICS INTERNATIONAL 243

213 Complaint

EXHIBIT T

(JU61J/JCUI'IC DA TE/DA Y

(Ad appeared in pliper)

DIRECTOR

..

WEATHER CONDITIONS); enn In... urfONE LOW PRICfI30 to. Program WID Averag

Per Week81JWelghllos8 6 Wee S1ablLzaf8 1 Vear 01 MOlnlenance8 Mea Fee. S1arer

lmm) t

-. "" ....

,.Iow IOw."'=ZiI 659.1364

NEWSPAPER 2S,

CALS

APPT

SHOWS

COMMENTS

tmlllM.?_


Complaint

EXHIBIT U

BEVERLY HILtS

$'Ut! iQ$-r._-

-_.--..

""/111

---

LOSINGWEIGHT

IS MORETHAN JUST A MATTROF WILLPOWER

""'-..ca.1011'..""11

M.",ol'"'"'/!.''J.r,"'' 'nll. nt)''fJ'''I!turr.""'""'I,""."d"" ",."d1"l"lLt.r'IP" lJ/""'JI'f' "dh...ltd,t. AI,."rtHQU... ..n...Il,... ut/kw'..''l48/4t1J,,,"",

c'.

'-"'--- ----"",--- !:"

Do'\1L

'''

",COlAII '''L.'"ID''U.U

CALL

000- 00000000 ADDRESS

CITY, STAE

lmmt",

. "'roLiY$V'iWlSrD

'L0S3-1LU"'I 'NUX

''-''lUIHO OTSlHOD:LKJ

..nrfP'-c"':vr.(Wf.oCHCllNIC

INDEP!NO(NT\YOWNED -'O

OPtRAT'O

Wh,,,r,,,,,,U)u,, I,N. $.'u..

118 FTC.

BEVERLYHILLS WEIGHT LOSS CLINICS INTERNATIONAL 245

213 Complaint

EXHIBIT V

Which Seat Would YouRather See Dlsappear1

OOG2Jb

Start losing weight now at Beverly

Hills, and you ll be sitting pretty

down the road. Just head for TheHills - Beverl Hils - for a freeconsultation and complete details.Or, you can sit this one out.

7' - COUPON - - i:- ::-COUPON.--

2:FR EE ,r,r I'fSltmmeI .

EEKS' IShape.UD.Plan 1

: C,

. ',

Lose all.thb weight 1I " Call For Al" . . I, you wan1 through .

I' ,,: Appoln1ment . I v. o'Bumer;1

I F\rsl time membel1 I" . ree lab. I only. MU51 be 30 Ib, I .- So . 1

or more O'oerwelg ii. i I ..!!iJ U!"'lI!oI.

" "

!.W2l::"-

,,.--

COUPON ---I----

---

i "

: !

itil lmilflfkf

. ,

W., , '737 351hPnce. " I ELlZAaETHTOWN

1:,

: ;...

ik': '"

~~~

i:,:Town Cent.e Mall

;j,

i:

-' '

IYV!

::,

1J (N.xt to. Goo")L':_

:::';._

' 3.

...._..

jO'


Complaint 118 FTC.

EXHIBIT W

#iJ'

FREE!

::,

Illt(?C

PRESENT THIS COUPON AND RECEIV

'" FREE CONSULTATION"'FREE. 4 WEEK WEIGHT

LOSS PROGRA

lAse J. 7 pou nds per week wi Ih our med iea Ily supervised programEatregular food.

1'0 shots1'0 Pills

GOOD AT STAFFORD LOCATIO:- ONLYCALL TO DAY

703-659- 0455

Lab /e WId n..In"lw"Q) Jupplcments !Jell ircflukd in lhio/fer.

EXPIRL JANUARY 10, 1990

XI-


213 Complainl

EXHIBIT X

WANTED20 persons to participate in a FREE WEIGHT LOSSPROGRA. Must need to lose 30 pounds or more.In return, you will authorize BEVERLY HILL 10 use

. photos and testimonials for.advertising purposes,Complete details available in person only at

BEVERLY HILLS WEIGHT LOSS CLINICKroger Shopping Center

Scottsvile RoadCall for Appointment

842-4095lm'll


Decision and Order 118 FTC.

DECISION AND ORDER

The Federal Trade Commission having initiated an investigationof certain acts and practices of the respondent named in the captionhereof, and thc respondent having been furnished thereafter with acopy of a draft complaint which the Boston Regional Office proposedto present to the Commission for its consideration and which, if

issued by the Commission , would charge respondent with violationof the Federal Trade Commission Act

The respondent , its attorney, and counsel for the Commissionhaving thereafter executed an agreement containing a consent orderan admission by the respondent of all the jurisdictional facts set forthin the aforesaid draft complaint , a statement that the signing of saidagreement is for settlement purposes only and does not constitute anadmission by respondent that the law has been violated as alleged insuch complaint , and waivers and other provisions as required hy theCommission s Rules; and

The Commission having thercafter considered the matter anddetermined that it had reason to believe that the respondent hasviolated the Act , and that complaint should issue stating its chargesin that respect, and having thereupon accepted the executed consentagreement and placed such agreement on the public record for aperiod of sixty (60) days , now in further conformity with theprocedure prescribed in Section 2. 34 of its Rules , the Commissionhereby makes the following jurisdictional findings and enters thefollowing order:

I. Respondent Beverly Hills Weight Loss Clinics InternationalInc. ("Beverly Hills ), is a Virginia corporation , with its office andprincipal place of business locatcd at 200 Highpoint A venue , Suite

, Portsmouth , Rhode Island.2. The Federal Trade Commission has jurisdiction of the subject

matter of this proceeding and of the rcspondent and the proceedingis in the public interest.


213 Decision and Order

ORDER

DEFINITONS

For the purposes of this order , the fo11owing definitions shallapply:

A. Competent and reliable scientifc evidence shall mean thosetests , analyses , research , studies , or other evidence conducted andevaluated in an objective manner by persons qualified to do so , usingprocedures genera11y accepted in the relevant profession or scienceto yield accurate and reliable results;

B. Weight loss program sha11 mean any program designed toaid consumers in weight loss or weight maintenance;

C. A broadcast medium shall mean any radio or televisionbroadcast , cablecast, home video or theatrical release;

D. For any order-required disclosure in a print medium to bemade "clearly and prominently" or in a "clear and prominentmanner, it must be given both in the same type style and in: (1)twelve point type where the representation that triggers the disclosureis given in twelve point or larger type; or (2) the same type size as therepresentation that triggers the disclosure where that representationis given in a type size that is smaller than twelve point type. For anyorder-required disclosure given ora11y in a broadcast medium to bemade "clearly and prominently" or in a "clear and prominentmanner , the disclosure must be given at the same volume and in thesame cadence as the representation that triggers the disclosure.

E. A short broadcast advertisement sha11 mean any advertise-

ment of thirty seconds or less duration made in a broadcast medium.

It is ordered, That respondent , Beverly Hills Weight Loss ClinicsInternational , Inc. , a corporation , its successors and assigns , and itsofficers , and respondent' s agents , representatives and employeesdireetly or through any corporation , subsidiary, division or other


Decision and Order 118 F.T.

device , including franchisees or licensees, in connection with theadvertising, promotion , offering for sale, or sale of any weight lossprogram in or affecting commerce , as "commerce" is defined in theFederal Trade Commission Act, do forthwith cease and desist from:

A. Making any representation , directly or by implication , about

the success of participants on any weight Joss program in achievingor maintaining weight loss or weight control unless , at the time ofmaking any such representation , respondent possesses and reliesupon competent and reliable scientific evidence substantiating therepresentation , provided , further , that for any representation that:

(1) Any weight loss achieved or maintained through the weightloss program is typical or representative of all or any subset ofparticipants using the program, said evidence shall , at a minimum , be

based on a representative sample of:

(a) All participants who have entered the program, where therepresentation relates to such persons; provided , however, that therequired sample may exclude those participants who dropped out ofthe program within two weeks of their entrance, or who were unableto complete the program due to illness , pregnancy, or change ofresidence; or

(b) All participants who have completed a particular phase of theprogram or the entire program, where the representation only relatesto such persons;

(2) Any weight Joss is maintained long-tenn , said evidence shall

at a minimum, be based upon the experience of paricipants who wercfollowed for a period of at least two years from their completion ofthe active maintenance phase of respondent s program or earliertermination, as applieable; and

(3) Any weight loss is maintained permanently, said evidenceshall, at a minimum , be based upon the experience of participantswho were followed for a period of time after completing the programthat is either:



(a) Generally recognized by experts in the field of treatingobesity as being of sufficient length for predicting that weight losswi1 be permanent , or

(b) Demonstrated by competent and reliable survey evidence asbeing of sufficient duration to permit such a prediction.

B. Representing, directly or by implication, except through

endorsements or testimonials referred to in paragraph I.E. herein , that

participants of any weight loss program have successfully maintainedweight Joss , unless respondent discloses , clearly and prominently,and in close proximity to such representation , the statement: "Formany dieters, weight loss is temporary. ; provided, further, that

respondent shall not represent , directJy or by implication , that the

above-quoted statement does not apply to dieters in respondent'sweight loss program; provided , however, that a mere statement aboutthe existence , design, or content of a maintenance program shall notwithout more, be considered a representation that participants of anyweight loss program have successfully maintained weight loss.

C. Representing, directly or by implication , except through shortbroadcast advertisements referred to in paragraph I.D. herein , andexcept through endorsements or testimonials referred to in paragraphI.E. herein , that participants of any weight loss program havesuccessfully maintained weight Joss , unless respondent disclosesclearly and prominently, and in close proximity to such represent-ation , the following information:

(1) The average percentage of weight loss maintained by thoseparticipants;

(2) The duration over which the weight Joss was maintainedmeasured from the date that participants ended the active weight lossphase of the program , provided , further, that if any portion of the timeperiod covered includes participation in a maintenance program(s)that follows active weight loss , such fact must also be disclosed; and

(3) If the participant population referred to is not representati veof the general participant population for respondent s programs:

(a) The proportion of the total participant population in

respondent s programs that those participants represent , expressed in

terms of a percentage or actual numbers of participants , or


Decision and Order 118F.TC

(b) The statement: "Beverly Hils makes no cJaim that this (these)result(s) is (are) representative of a1l participants in the Beverly Hi1lsprogram.

provided, further , that compliance with the obligations of thisparagraph I.c. in no way relieves respondent of the requirement

under paragraph LA. of this order to substantiate any representationabout the success of participants on any weight loss program inmaintaining weight loss.

D. Representing, directly or by implication , in short broadcastadvertisements, that participants of any weight loss program havesuccessfu1ly maintained weight loss , unless respondent:

(1) IncJudes, cJearly and prominently, and in immediate conjunc-tion with such representation, the statement: "Check at our cJinics fordetails about our maintenance record.

(2) For a period of time beginning with the date of the firstbroadcast of any such advertisement and ending no sooner than thirtydays after the last broadcast of such advertisement, complies with thefollowing procedures upon the first presentation of any fonn askingfor infonnation from a potential client, but in any event before suchperson has entered into any agreement with respondent:

(a) Give to each potential client a separate document entitledMaintenance Information " which sha1l include all the information

required by paragraph LB. and subparagraphs 1.C.(1)-(3) of thisorder and shall be formatted in the exact type size and style as theexample form below , and sha1l incJude the heading (Helvetica 14 pt.boJd), lead- in (Times Roman 12 pt.), discJosures (Helvetica 14 pt.bold), acknowJedgment language (Times Roman 12 pt.) and signatureblock therein; provided , further, that no information in addition tothat required to be incJucted in the document required by thissubparagraph I.D. (2) sha1l be included therein:



MAINTENANCE INFORMATION

You may have seen our recent ad about maintenance success. Here s some

additional information about our maintenance record.

(DiscJosure of maintenance statistics goeshercXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXJFor many dieters , weight loss is temporary.

I have read this notice.(Client Signature) (Date)

(b) Require each potential client to sign such document; and(c) Give each client a copy of such document; and

provided, however, that if any potential participant who does not thenparticipate in the program refuses to sign or accept a copy of suchdocument , respondent shall so indicate on such document and shallnot , for that reason alone , be found in breach of this subparagraphI.D. (2); and

(3) Retain in each client file a copy of the signed maintenancenotice required by this paragraph; provided , further , that:

(i) Compliance with the obligations of this paragraph I.D. in noway relieves respondent of the requirement under paragraph LA. ofthis order to substantiate any representation about the success ofparticipants on any weight loss program in maintaining weight loss;and

(ii) Respondent must comply with both paragraph I.D. andparagraph I.c. of this order if respondent includes in any such shortbroadcast advertisement a representation about maintenance successthat states a number or percentage , or uses descriptive terms thatconvey a quantitative measure such as "most of our customersmaintain their weight loss long- term ; and

provided , however , that the provisions of paragraph I.D. shall notapply to endorsements or testimonials referred to in paragraph I.E.herein.

E. Using any advertisement containing an cndorsement or testi-

moniaJ about weight loss success or weight Joss maintenance successby a participant or participants of respondent s weight loss programs


Decision and Order 118 F.TC.

if the weight loss success or weight loss maintenance success

depicted in the advertisement is not representative of what partici-pants in respondent s weight loss programs generally achieve , unle"respondent discloses , clearly and prominently, and in close pro- :'Jlity

to the endorser s statement of his or her weight loss success or weightloss maintenance success:

(1) What the general1y expected success would be for BeverlyHil1s customers in losing weight or maintaining achieved weight loss;provided, however, that in determining the generally expectedsuccess for Beverly HiIs customers respondent may exclude thosecustomers who dropped out of the program within two weeks of theirentrance or who were unable to complete the program due to il1nesspregnancy, or change of residence; or

(2) One of the following statements:

(a) "You should not expect to experience these results.(b) "This result is not typical. You may not do as wel1.(c) "This resu1t is not typical. You may be Jess successful."(d) " ' s success is not typical. You may not do as well."(e) " s experience is not typical. You may achieve less.

(f) "Results not typical."

(g) "

Resu1ts not typical of program participants.

provided , further, that if the endorsements or testimonials covered bythis paragraph are made in a broadcast medium, any disclosurerequired by this paragraph must be communicated in a clear andprominent manner and in immediate conjunction with therepresentation that triggers the disclosure; and

provided , however, that:

(i) For endorsements or testimonials about weight loss success

respondent can satisfy the requirements of subparagraph I.E. (l) byaccurately disclosing the generally expected success in the followingphrase: "Beverly Hi1s clients lose an average of pounds over an

average - week treatment period" ; and(ii) Ifthe weight loss success or weight loss maintenance success

depicted in the advertisement is representative of what participantsof a group or subset clearly defined in the advertisement generally



aehieve , then , in lieu of the disclosures required in either subpara-graph I.E. (1) or (2) herein , respondent may substitute a clear andprominent disclosure of the percentage of all of respondent

customers that the group or subset defined in the advertisement

represents.

F. Representing, directly or by implication , that the price at

which any weight loss program can be purchased is the only costassociated with losing weight on that program, unJess such is thecase.

G. Representing, directly or by implication , the price at whichany weight Joss program can be purchased, unless respondentdiscloses , clearly and prominently, either:

(1) In close proximity to such representation , the existence andamount of all mandatory costs or fees associated with the programoffered; or

(2) In immediate conjunction with such representation , one of thefollowing statements:

(a) "Plus the cost of (list of products or services that participantsmust purchase at additional cost).

(b) "Purchase of (list of products or services that participantsmust purchase at additional costJ required.

provided , further, that in broadcast media, if the representation thattriggers any disclosure required by this paragraph is oral , the requireddisclosure must also be made orally.

H. Representing, directly or by impJication , that any weight Jossprogram or service can be ohtained for free, unless respondentdiscloses , clearly and prominently, either (1) in close proximity tosuch representation , the existence and amount of a11 mandatory feesassociated with the free offer; or (2) in immediate conjunction withsuch representation , the fol1owing statement: "You must pay for flistof products or services that participants must purchase at additionalcost) to take advantage of this free offer. ; provided , further , that inbroadcast media , if the representation that triggers the disclosure isoral , the disclosures required by either (J) or (2) of this paragraphmust also be made orally.



1. Failing to disclose over the telephone , for a period of timebeginning with the date of any advertisement of the price at whichany weight loss program can be purchased and ending no sooner that180 days after the last dissemination of any such advertisement, toconsumers who inquire about the cost of any weight loss program , or

are told about the eost of any weight loss program , the existence andamount of any mandatory costs or fees associated with participationin the program; provided, however , that respondent may satisfy thisrequirement by directing its weight loss centers to disclose theinformation, by providing the center personnel with suggestedlanguage to be used when responding to telephone inquiries and bymaking its best efforts to ensure compliance with its directive todisclose price information over the telephone.

J. Representing, directly or by implication, the average or

typical rate or speed at which participants or prospective participantsin any weight loss program have lost or wil lose weight , unless at the

time of making sueh representation , respondent possesses and reliesupon competent and reliable scientific evidence substantiating therepresentation.

K. Representing, directly or by implication , that participants orprospective participants in respondent s weight loss programs havereached or will reach a specified weight within a specified time

period , unless at the time of making such representation , respondent

possesses and relies upon competent and reliable scientific evidencesubstantiating the representation.

L. Making comparisons between the efficacy of respondentweight loss program(s) and the efficacy of any other weight lossand/or diet program(s), unless at the time of making suchrepresentation , respondent possesses and relies upon a competent andreliable scientific study or survey substantiating the representation.

M. Making comparisons between the safety of respondentweight loss program(s) and the safety of any other weight loss and/ordiet program(s), unless at the time of making such representationrespondent possesses and relies upon competent and reliablescientific evidence substantiating the representation.

N. Failing to disclose , clearly and prominently, either (1) to eachparticipant who , after the first two weeks on the program, is

experiencing average weekly weight loss lhat exceeds two percent(2%) of said participant s initial body weight, or three poundswhichever is less , for at least two consecutive weeks, or (2) in writing



to all participants , when they enter the program , that failure to followthe diet instructions and consume the total caloric intakerecommended may involve the risk of developing serious healthcomplications.

O. Misrepresenting, directly or by implication , the existencecontents, validity, results , conclusions , or interpretations of any testor study.

P. Misrepresenting, directly or by implication , the perfonnanceefficacy, or safety of any weight loss program or weight loss product.

II.

It Is further ordered That respondent shall notify the Commissionat least thirty (30) days prior to the effective date of any proposedchange in the corporate respondent such as dissolution, assignment,or sale resulting in the emergence of a successor corporations, thecreation or dissolution of subsidiaries , or any other change in thecorporation that may affect compliance obligations arising out of thisorder.

II is further ordered, That for three (3) years after the last date ofdissemination of any representation covered by this order,respondent , or its successors and assigns , shall maintain and uponrequest make available to the Federal Trade Commission forinspection and copying:

A. All materials that were relied upon in disseminating such

representation; andB. All tests , reports , studies , surveys , demonstrations or other

evidence in its possession or control that contradict , qualify, or callinto question such representation , or the basis relied upon for suchrepresentation , including complaints from consumers.

IV.

It Is further ordered That respondent shall distribute a copy ofthis order to each of its officers , agents , representatives, independent

contractors and employees , who is involved in the preparation and



placement of advertisements or promotional materials or in commu-nication with customers or prospective customers or who have anyresponsibilities with respect to the subject matter of this order; andfor a period of five (5) years from the date of entry of this orderdistribute same to all future such officers , agents , representativesindependent contractors and employees.

It Is further ordered, That:

A. Respondent shall distribute a copy of this order to each of itsfranchisees and licensees and shall contractually bind them to complywith the prohibitions and affirmative requirements of this order;respondent may satisfy this contractual requirement by incorporatingsuch order requirements into its current Operations Manual; and

B. Respondent shall further make reasonable efforts to monitorits franchisees ' and licensees ' compliance with the order provisions;respondent may satisfy this requirement by: (1) taking reasonablesteps to notify promptly any franchisee or licensee that respondentdetermines is failing materially or repeatedly to comply with anyorder provision; (2) providing the Federal Trade Commission withthe name and address of the franchisee or licensee and the nature ofthe noncompliance if the franchisee or licensee fails to complypromptly with the relevant order provision after being so notified;and (3) in cases where that franchisee s or licensee s conduct

constitutes a material or repeated violation of the order , diligentlypursuing reasonable and appropriate remedies available under itsfranchise or license agreement and applicable state law to bring abouta cessation of that conduct by the franchisee or licensee.

VI.

It Isfurther ordered That respondent shall , within sixty (60) days

after the date of service of this order, file with the Commission areport , in writing, setting forth in detail the manner and form in whichit has complied with this order.

DOCTORS MEDICAL WEIGHT LOSS CENTERS , INC. , ET AL. 259

259 Complain!

IN THE MATTER OF

DOCTORS MEDICAL WEIGHT LOSS CENTERS , INC. , ET AL.

CONSENT ORDER , ETe. , IN REGARD TO ALLEGED VIOLA TIO:' OFSECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3516. Comptuint, Aug. , I 994--Decision , Aug. , 1994

This consent order prohibits , among other things , the Florida commcrcial dietprogram companies and their officer from misrepresenting the performance orsafety of any diet program they offer in the future , and requires the respondentsto possess competent and reliable scientific evidence to suhstantiate any futureclaims they make about weight loss , weight loss maintenance , or rate of weightloss; to make a number of disclosures regarding maintenance success cJaims;and to disclose all mandatory fees.

Appearances

For the Commission:F. Kelly.

For the respondents:

Lauderdale , FL.

Eric Bash, Matthew Daynard and Richard

Gabriel Imperato, Broad Cassell, Fort

COMPLAINT

The Federal Trade Commission , having reason to believe thatDoctors Medical Weight Loss Centers , Inc. ("DMWLC"), DoctorsWeight Loss Centers, Inc. ("DWLC"), and Joyce A. Schuman , indi-vidually and as an officer of said corporations (hereinaftercollectiveIy, "respondents ), have violated the provisions of theFederal Trade Commission Act , and it appearing to the Commissionthat a proceeding by it in respect thereof would be in the publicinterest , alleges:

PARAGRAPH 1. (a) Respondents DMWLC and DWLC areFlorida corporations , formerly doing business , with their principaloffices and places of business located at 5479 A North FederalHighway, Fort Lauderdale , Florida.

(b) Respondent Joyce A. Schuman is an officer of the corporaterespondents. Individually or in concert with others , she formulatesdirects, and controls the acts or practices of the corporate


Complaint 118 FTC.

respondents , including the acts or practices alleged in this complaint.Her principal residence is located at 2730 Sea Island Drive , FortLauderdale, Florida.

(c) Respondents have cooperated and acted together in carryingout the acts and practices al1eged in this complaint.

PAR. 2. Respondents have advertised or otherwise promotedoffered for sale, and sold , weight reduction and weight controlprograms and products, and have made them available to consumersat their weight loss centers. Respondents have offered for sale andsold diet programs of 800 to 1500 calories per day, that include foodas "food" is defined in Section 15 of the Federal Trade CommissionAct.

PAR. 3. In the course and conduct of their business

respondents have disseminated or have caused to be disseminated

advertisements for weight reduction and weight control programs andproducts. Respondents have placed these advertisements withvarious media for the purpose of inducing consumers to purchasetheir programs and products. Respondents have further advertisedtheir weight loss programs through the use of promotional materials,including pamphlets and brochures, given to customers and

prospective customers at individual weight loss center 10cations.PAR. 4. The acts and practices of respondents al1eged in this

complaint have been in or affecting commerce , as "commerce" is

defined in Section 4 of the Federal Trade Commission Act.PAR. 5. Respondents ' advertisements and promotional materi-

als include , but are not necessarily limited to , the advertisements andpromotional materials attached hereto as Exhibits A-

PAR. 6. The advertisements and promotional materials referredto in paragraph five , attached hereto as Exhibits A-J, contain thefol1owing statements:

(a) "Permanent Weight Loss" (Exhihit A)(b) "Lose 3-8 pounds per week. safely, economically, and permanently with

professional supervision. " (Exhibit B)

(c) "WHAT MAKES A WEIGHT LOSS PROGRAM GREAT'... Resultsshould be long lasting & offer a lifetime solution to a weight problem n O GUESS

WHAT' ... We just described the DOCTORS WEIGHT LOSS PROGRAM.(ExhibilS C-

(d) "Doctors Weigh1 Loss Advantage You Keep The Wcigh1 Off'(Exhibit F)

(e) "The best way to losc weight and keep It off' (Exhibit G)(I) "TAKE IT OFF... A:'D KEEP IT OFF!" (Exhihit H)

DOCTORS MEDICAL WEIGHT LOSS CE1'TERS , INC. , ET AL. 261

259 Complaint

(g) "

WHAT MAKES OUR PROGRAM THE BEST?... LONG-LASTINGRESULTS... ' 3 years later and I'm still slim , trim , healthy. It s no prohlem stayinga size 5....

'"

(Exhibit I)(h) "I rcached my goal and lost 30 1bs. in just 10 weeks." (Exhibit J)

PAR. 7. Through the use of the statements contained in the

advertisements referred to in paragraph six , and others in advertise-ments or promotional materials not specifically set forth hereinrespondents have represented , directly or by implication , that;

(a) DMWLCIDWLC customers typically are successful inreaching their weight loss goals and maintaining their weight losseither Jong- tenn or permanently;

(b) DMWLCIDWLC customers typically are successful inmaintaining their weight loss achieved under the DMWLCIDWLCdiet program; and

(c) DMWLC/DWLC customers typically are successful inreaching their weight loss goals.


advertisements referred to in paragraph six, and others inadvertisements or promotional materials not specifically set forthherein , respondents have represented , directly or by implication , that

at the time they made the representations set forth in paragraph sevenrespondents possessed and relied upon a reasonable basis thatsubstantiated such representations.

PAR. 9. In truth and in fact , at the time respondents made therepresentations set forth in paragraph seven , they did not possess andrely upon a reasonable basis that substantiated such representations.Therefore , respondents, representation as set forth in paragraph eightwas and is false and misleading.

PAR. 10. The advertisements referred to in paragraph five

attached hereto as Exhibits A, C, D- , and J-N contain the followingstatements:

(a) "S11 PER WEEK" (Exhihits A , F , J , L-1')

(b) "$15 PER WEEK" (Exhibit C)(c) "$8 PER WEEK" (Exhihits D and E)(d) "$9 PER WEEK" (Exhibit K)


Complaint 118 F.TC.

PAR. 11. Through the use of the statements contained in theadvertisements referred to in paragraph ten, and others inadvertisements or promotional materials not specifically set forthherein , respondents have represented , directly or by implication , thatthe advertised price is the only cost associated with losing weight onthe DMWLCIDWLC weight loss program.

PAR. 12. In truth and in fact, the advertised price is not the onlycost associated with losing weight on the DMWLCIDWLC weightloss program. There are substantial , additional mandatory expensesassociated with participation in the DMWLC/DWLC weight lossprogram. Therefore, respondents, representation as set forth in

paragraph eleven was and is false and misleading.PAR. 13. In advertising the price of the DMWLCIDWLC

weight loss program, respondents have failed to disclose to

consumers the existence and amount of all mandatory expenses

associated with participation in the DMWLCIDWLC weight lossprogram. This fact would be material to consumers in their purchaseor use decisions regarding the weight loss program. In light ofrespondents ' representation as set forth in paragraph eleven that thequoted price represents the only cost associated with theDMWLC/DWLC weight loss program , said failure to disclose wasand is a decepti ve practice.

PAR. 14. The advertisements referred to in paragraph fiveattached hereto as Exhibits B , L , M , and N , contain the followingstatements:

(a) "Lose 3-8 pounds per week , safely, economically. and permanently withprofessional supervision, " (Exhibit B)

(b) "STARTTODAY BE 30 LBS. LIGHTER IN 30 DA " (Exhibit L)(c) "LOSE 3 TO 7 LBS. A Week" (Exhibit M)(d) "LOSE 3-6 LBS. A WEEK" (Exhibit N)

PAR. 15. Through the use of the statements contained in theadvertisements referred to in paragraph fourteen, and others in

advertisements or promotional materials not specifically set forthherein , respondents have represented , directly or by implication , thatconsumers fol1owing the DMWLC/DWLC weight loss programtypically lose weight at an average rate of:

(a) Thirty pounds in thirty days; and(b) Three to eight pounds per week.

DOCTORS MEDICAL WEIGHT LOSS CENTERS , INC" ET AL. 263

259 Complaint

PAR. 16. The advertisementsattached hereto as Exhibits C-

statements:

referred to in paragraph five,and N contain the following

(a) "LOSE UP TO 7 LBS PER WEEK" (Exhibits C , D)

(b) "LOSE UP TO 6 LBS. PER WEEK" (Exhibit E)(c) "Up to 6 Ibs. per week weight loss" (Exhibit N)

PAR. 17. Through the use of the statements contained in theadvertisements referred to in paragraph sixteen, and others in

advertisements or promotiona1 materials not specifically set forthherein , respondents have represented , directly or by implication , that

an appreciable number of consumers following the DMWLCIDWLCweight loss program typically lose weight at an average rate of six toseven pounds per week.

PAR. 18. Through the use of the statements contained in theadvertisements referred to in paragraphs fourteen and sixteen , andothers in advertisements or promotional materials not specifically setforth herein , respondents have represented , directly or by implicationthat at the time they made the representations set forth in paragraphsfifteen and seventeen , respondents possessed and relied upon areasonable basis that substantiated such representations.

PAR. 19. In truth and in fact , at the time respondents made therepresentations set forth in paragraphs fifteen and seventeen , they did

not possess and rely upon a reasonable basis that substantiated suchrepresentations. Therefore , respondents ' representation as set forthin paragraph eighteen was and is false and misleading.

PAR. 20. In the routine course and conduct of their businessrespondents have provided their customers with diet protocols thatrequired said customers Inter alia to come in to one of respondentsweight loss centers thrce to six times a week for monitoring of theirprogress , including weighing in. In the course of regularly ascertain-ing weight loss progress, respondents , in some instances , have beenpresented with weight loss results indicating that customers havebeen losing weight significantly in excess of their projected goalswhich is an indication that they may not have been consuming all ofthe food prescribed by their diet protocol. Such conduct could , if notcorrected promptly, result in health complications.

PAR. 21. When presented with the weight 10ss results describedin paragraph twenty, respondents, on many occasions , have not


Complain! 118 FTC.

disclosed to the customers that failing to follow the diet protocol andconsume all of the calories prescribed could result in healthcomplications. This fact would be material to customers in theirpurchase or use decisions regarding the weight loss program. In lightof respondents ' praetice of monitoring customers , said failure to

disclose was and is a deceptive practice.PAR. 22. The acts and practices of respondents as alleged in this

complaint constitute deceptive acts or practices , and the making offalse advertisements, in or affecting commerce in violation ofSections 5(a) and 12 of the Federal Trade Commission Act.

Commissioner Owen was recorded as voting in the affirmativebut dissenting as to the exception requiring full numerical disclosuresinvolving quantitative weight loss maintenance claims in short radioand TV ads.

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC. , ET AL.

259 Complaint

EXHIBIT A

265

",0 MONDAY. JUNE '6. '990, THEMIAMIHERAlO :lC

And my (ioctor The Doctors NEWis arazeat At - Weight Losslast I m off all Program Easierblood pressure - Simpler & Fastermedication and Than Everl leammy cholesterol , - 1,

,(,

how lose

. ,

I1....t..

,...

Improve .

'\.:

f";Y-

""

. ht a d ke 'spent enormous i;.:;a 4'i;

V" ' we! ep Iamounts of

- ;, . -

. off living In

money on every

' .

- todayother weight World, eabngloss program

',.

Real Food, evenbut to no avail. . -:r';,Y' Fast Food IromAt D.O'w. L. I ".

"'.

oJ. McDonaldslearnea how to Wendys and lotseat right, lose more. Lose weightweight and more easily thankeep it off. Ev- you evelthoughteryone com- possible.ments on the

me!"

Lila . NiklaHomestead

FasH Saf,JPermanent Weight

LoIS

After122Lbs.

Permanent Weight Loss TapesNow Available. Open To The Public.CALL TO SEE HOW EASY IT 151

DADE. KondaJl..

.", ...

.h............. 271-8110. WeslcJos1erfTamiarm....5S1. '121. Culer Ridge. .............. . Nor iai Beac m,-.. 65S22. loiaJea """"'''''''''uh..- 557. Briell...............n ...._... 372..7& Avenlura...... .....-.... 9328. Homestead.. .. 245-227

BROWARD. Wesen/Pembroke Pines 432.9247. PempaDe ..-... 42&-977. Fl. LauderdaJ..

....,.......

. Coal Springs '_"mm_.- 7s.SO

. P1nlation .....--..-..-... 74

. Hollyw -----.._m.._.. 961.50U) II., - n.-.-u--F _.._on

Lose weight while eating reaJ fooIhat you bu at Ihe supermarket anprepae yourlf.

For your convienc - delicusfresh frozen mea at Jow superm-ket price.One on One PeronaJ Supervsi!tm out Len what to eat & ho toord while eabng at McDold'De' s. Red Loter. atc.. ,and stUlo weght & stay thin for lie.

ONLY$11* per week' 5 wk. minimum'

PAl BEACH. Bo Raton '_hm

"__"-

479. DeraylB.._....._-- 272.545C. Nor Pat BeCh.._..- 86537. Wes Palm Boac.__..- 475-144. lA. WOI_._.___m- 9622. StI.8/'I--.---_.._... 2.7.QWEEKYS I AMa PM - SAT. T1L1' PM..O'.," CA8O1I

Complaint


118 FTC.

266

EXHIBIT B

With ovor 20 yers experionc:o oporating & managi1g smallbusmBSS, I am lIVDlllIble on B Full/Part Time baSIs toassist you in the following areLls:

* Accou:"ting * Solving * Managing* MLlrkE:tlno Pr-blE:ms . SchE:oullnq* Contriiln

g .

Comp'. rlling * PurchiJsinInventD:- . PliJnnlr.g * Training

1:'West In a call to C:Jn Dt TMCS, Inc., 782.4698, toCISC:JSS uniocking your bL:siness pot.mml.

DO YOU KNOW...Being Ovcrwcight is Hazardous To Your...

WEAL TI?You now 1.112: bc o..O"t:, h\ hU J ymH r. c:.I\ I. Did you know ,t hUrl! YOU'

.I\h.1 wdi' 1:1:... ;wuplc .re I,,-cc I , f,rcC marc . p"d 'r'd prornOlcc C!J

- .Ii bcc:u!c 0: !1c:ro\\' :'J 'r' .pr'C0r ncc.Wililocy ! ccor\my , you on

! .

orC: not 10 look your 001. se 3--

per week , J.rclv , 1:0r.0I'Jo , .nd r e'"'l.y w h rro:.:Slonol !UptI"I!lon.Don' lei '1\ e.p.nc!lIl( w.L.u""e cut 11\0 your oonom life(j .DINj"" j..r.. cn.n.dJiUln-

., ,.

"'"01: ,

. ''', .

, 1;Ie uud. ..._, 6' "mf"no,...._, 9T1j

"'"

.. JHolI %I- J Crl. Srl'.,-- :'jj5(X,1""':1\.,-- ?'JJ/ \1",""" ......,.-- -1;2- 92.0 l - ".r" CI R.M-- O')--4- Dcl... lI"h. ln5ror other loc:aJons, c:l-BOO- 910-SUM ,

On All Travel includingAmtrak. SR, Citizen Coupon Booklets

Cruises. Tours. Hotels Etc.No! ! Iic(lble to airline ticke!!!. and spcci&ll "romotional OlleT!!

--, -'--', ------

InvestoJconvertto bond:Federal Reserve c

interest rates to 5

Mone

te;1dilYS liC:jn

r:1tes, ct:! nCL'C

pOlnltc5 /:pcrccwcek bv hc F c

R.eserve. h:\-c:cred income-oriented sm:11i

to,s to sh i f l b ill j ons of doll a r

low-yielding money.rr, ::rketto bond rr, utu:!l runds paY:l"gcent or more , Dccording togathered for Mane.\

Sm.JIJlnvcstorlndexSince m:d-Decembcr , t

der.Jl nescrvc h:1S cut the dis

rote - which it chorges on

to b.Jnks - three l:mes, D

lh:Jt period. money fund :'hJve shnmk frern .on ;lvcrJ

4 percent to 5. 9 pcrcet.'most rlnolvsts expect Yields

:Jnothcr hJlf-ooml d' rjt.six weeks. .

While some of the eosh c("out of money funds r, :1s genestocks. income.oriented srrJ.vcstorsho\' crushedintcrfundsth:Jlstill p:Jynperccrmore, In M;1rch, for inst:mce

InvestmcntComp.Jny Instill.ttports thot ir, v('stors r('ceemenet S!J73 million from monev fl:1nd rlddcn 0 nC'! 4 bilJior. to L

3fS


259 Complaint

EXHIBIT C

6E Sun-Sentinel. Wednesday. September 19. 1990

GREAT?*WHA T MAKES AWEIGHT LOSS

PROGRAM

I LOST 43 LBS.IN JUST 15 WiKS"

I neeedHELPII

CDu.c:n t do Iton my own.It was

to follow andI wasn t hun-gry, The nice

pa was CDuld eat

regular &. stlillosel-

it-

JEAN HAll

LOSl UP

lLBSPER

.Mubt:II! eayiUl\10""

. Mu be IItJi e J1 ill UL:ion! r. ase.lngclAin cU1let&

. ReI5 a.ld be nq li5tn & oner aIllflimr luiOn Ie.. t1 proble.

. UubeaMorlDle&DrugFr.

GUE5S 'MTl... We Just de-SCbc the OOaORS VVGHlOSS PROG Ca now tor

. you ME c.!'uJUi!1on.

LAST CHANCE ,FINAL DAY

PER WEEK-EXP. i/2Z .

. .-. -,..

Onl'

. . . . , ..

DADI 8ROWAID PAUl .EACHI .C:"'''IU- ''m-'_''.'- UJ.nol ....It.._

, ....,.--

I--".. 43rn oo....,--

.--_

W""S 'f" 'N.'-"--.1n1'_ Jr.41 .c.......__ 1D-- ,W. '.I",__ .n.-.K__ p,.."a . _'.I- 1."- 'L..---.'I"_wn- uI.,m .-.- ",.w "11--_ZI-

E)ClS EDlFEEuPPlE EH. iS"".

""-

S. Hab1a E.p.no1 TOLL FREE. 1. S00. 940.SLlMI M.joCrJdil C.rdl"'

ptJd .IOURS: MON. FRI.I! A. 1 P.M. SAT. 'T1 P.M .

268FEDERAL TRADE COMMISSION DECISIONS

Complaint

EXHIBITD

\ If 1/l 'OVERWEIGHT MEN

, WOMEN AND TEENS

LOST 82 LB5.

...

IT WAS EASY

. '

ONLY'

' . '

PERWEK-

WI AI WrOI lOSS

PROGJGREAT?

.Il&!lgfVt1'

Iat.. .IW fb'bltn"

;'WfOOC'!e&

.: Ib 5lc lr7gt1gl!(I 'I'I:

~~~

f'0II01'9Ptr:le'

. -

JffOII1Ie&Or.thilGUESS w;n

We Just deSCribed

the DOCTORSWEIGH LOSS

PROC. Ca!,

now for)'1.

. consuJti\tfon.LOSE IJ IV 7

Le. PEl DOCTORS WEIGHT

lOSS CENTER'Cifo'-CI. t7t) '8cjl'(I!I

J!I-

'''

7'''' .,

"''' -"".,... "'" '

i:-

- ."" ,*-:::;:-;!! : "'"" ."""''''_''.-'''''''''''''''''''

'''- .. L...

Add BeautifulLiVing Space, .

Hjghly Insulared . . Available

in Different Colors ! r 0 Wood Paneling Inside

!!

AWnings, ShurC'

. Accardion r:rcr!n El1tJosutts, 10015 Rell Upahl!mi! Shl1c-1"

118 F.T

DOCTORS MEDICAL WEIGHT LOSS CENTERS , INC., ET AL.

259

lS aren.The acous:Jcs: "The acoustics

are good. tr.eprociuc:tion is fa!:u-lous, the the,mris fabuJous. Itjust lhat it'sfteezi!1g and there arcno bathrooms. " - Ma:ldne Adler

of Pa!mBeZlch

. The b"'throoms: "AwfuI.Thevshould r.:Jve on or t 'IO extra onein here. We ve been in this line !oJ Ion!; timt. ..nd we re not even I

mOiling.

" -

Sylvia r'ei!1cto(BocJR;Jlon (The:!tl't designers hod vowed I

that there wouid be enough tes!.

roomsJndth,,tthcnwould belil. tIe or no w:!l!l!1g urne.

8 Getting to the theater :It.pJrkmg: J:wasnoproblem saidValentm:: 5osa. who is !'. ere on va-cation from Caracas , Venezueia

sales tax in 198Jyr. ueilnd s\. potterswl'nl'

aHer money from sources t. at d:d'!1! h:r. gc o n p'J jIC pprova1. ;heypersuadedslall', ccuntY, Cityand:downtow:1 offici:!ls lO kick. ir, $27million c:!sh

, ?:

55 ITil!:ori wortof l:!nd. The rest of Uu' monev IScorn: n go frotI. ;: r1 va Ie d on:! Ii on.and:! $6 rr.:Il:on lo:!n.

Even so , t e :!:-s cen er st:!nds

$9 million in the red. L :!nksloovem.ms:!nd a $j, rrtlli(Jnshort.Jl'einlund. raislnb

SLaflWrirrrTJoWoolfeconlria.u/ed 10 !hisrr 'Jcr!.

269

Complaint

EXHIBIT E

OVERWEIGHT MEN, WOMEN AND TEENS

I lOST 81lBS..IT WAS EASY

,. . ',," , \ ,, '. '- ' ' .

WHAT MAKE. AWEGH LOSS

rROGRGREAT?*

..

lEtlSJle. yax'S:O: llco:SiO t'

I .. M I"",bi l"jllJiUO.'! SLr" .S ")'n,

I '

':/\:'. ,

.- jn\ & o!1t H

. - ,

lion 10 l..e'Gh' p' ::e'". M ! II!orc; :rc'

I GUESS J\'l..\X'"('iustdescr:bcd

tllC DOCTOR:'T;IGI-I LOSS

PROGN\;.!. (;1:1. ;:'r, 'O\i' ,ror \'oll

REI COi\SL1L\TIC

LOSE UP TO 6ws. PER WTEKFl. LAUDERDALE

, , . '

'CulltrR'dgr_ ''I!1tg1\Ptlf 'aUP'"!1 02. 00 'B RIIO" ,1I.."_ 3 .Hal ""sm ' IrBnd_ :m. S4S4'Bri :m.. 'FL rdll!_ SE . PllrBnrn_ C1. 11.

llr'rTIT!""'.II W gn-m1

. N Milmj Bm !.m7 . PorpVlIW\ !hl!\l1r Pl 1:!m1 '5hm1- mII.;CMI CI'' A.C!if. Bm () Pv . '!t"Jj ',*.Ui1 iri ""th6JJJ

='-

.-..i

"". " ,. .. ,,, ..,. "',.

J:, ..e.

'''

",.:.tjo, o;;-:

1L WINTER CLEARANCEthrough Sunday, March Jrd

VialExhisi t


Complaint 118 F.T.

EXHIBITF

NOW AVAILABLE" CHOOSE YOUR OWN WEGHT tOSS PROGRA

PROGRAM.Ne 'lXaaFoo To Bu

oE4t Ru RemurMI& 5opIrmr t foo

.0,11 On Onl! PersruSuper\luion Throuhou

PROGRAMFor You Col'wnienc. Dodon!

W..lght Jou Approved o.FreIn Froun MeaJi An NOY

AViitable At Lo, Lo Stperk.tPrices! So \V Bu Exprsi\ diet

'-eals A! Other Weigh! unlers

'C""'.'"'' ,..--. .0.1,00"

......,..-- .

nJ1 "...." .

"........

H'''''" .....,....,10_-

t.d"..II""ulh..,S _It--S....bl.E", '1IL.-

Weekdavs 9 AM.7 PM . Sat. Til! PM

311.-""'''''0I'L. IIII

'''.....- ,..-.

'U- '"J.- ... " 00'.

"'''.

t=. 'w_""''7: ..u

M.OR CREDI OPEN EVGS & SATIRDAYCAADSACEP - TOU.FR 1.s00-940-SUM

Th8 FlYER(UI 1321 Jyly Z5, UIIC, PI;W J


259 Complaint

EXHIBIT G

f' - :1,-

' -

' 1\1aryMasbaum, lelt,lIlbbacbelor/FortL.uder-d.ae Commiiooer Car Keno alld Tara Call1loll.

Ch Doane viits with bacbelor Cblld Sclldt atthtrettl!lfU1d.r-erbe!duSta

END OF SUMMER CLEARANCE'AK ITIONAL 25 /0 OFF

t .

already 'eCuced sale items'h. I re6J

f) OrJ!iC?

now 30% 1050% OFF

c0'1 SPECIAL: SAlE" HI1S: MON. SAT

472 N. Ocean Drive

' . -

RACK' ' 3:30-5:3C

Sea RanQt,Cen!er -$5S $'5;52

:'

Y'1 5\ 78.1-0181F"t. Lauderdale . .yatU 10 $Be. '. I

- ,

SherryBishop.

m m linlliningmy Hgure withHERBAL BALANCE

E:xr.:::.:

. '

:1'

E.t n !\V tt5t:Hlr:!1 vou ,hooe . . . shut home (cokee n15 with your family \'.hilt losing all :he weigh! you w.n:.

ThtbtWlYlolcsft tanktltorf'\'Ulnoe cbgC'(oo\Db

DOORS WEGHT LOSS CL'\TIRS

Fre Consultation and Evaluationr----- - -

- --- ---------

I 50% OFF NEW PROGRAMS IL__

!:/ ~~~ ~~~~~ :._

J :Ca or Drop In For A Fr Consultation '

FT. L.UCERCAL - 5!1-4egg HOUYwOOD. - nt.5a13'

PUNTAT10N .."'" 740.0115 BOCA R.Tci 44..e

COAAL SP. .....""" 753.500 DILRAY

"--

272 5454

CADE/PALM eCHo CAl TOU. FREE '. 8D;4SUMMAJOR CREIT CARD ACQ: . PEOPLE PROVE

LOSE WEIGHTNO EXE1 SIVFOOD TO BUY

---- --- ---- ---- .---

271

CRUIABor

FI.Cf

SPECT

,".

!ntmDesig:

115Fc W


Complaint 118 FTC.

EXHIBIT H

LUU S. t\ndrcu.'s Avc.Mention Ad For Free Beverage wlLur:ch

;i-

~~~

525- 7656:,..'1

:\'

TAKE IT OFF. . . ANDKEEP IT OFF!

;;' "

l1troduclng The New Fast Track ProgramJlJr-"

;.-' : ' , .

'or.aJk.

nh-

'is Discover the easy,fast , or. ": .!o-one

approach toweight loss!

'I: Decters Weight L ss Cer ers weoHe" an al erna:, ve 10 :" cse (;'

::'

':8meetings that r.ay C2:.se you 8:'-ba.rrassment a".d make Y'J'': feel un-cOr.,fo!1cDie. Wher. YO'J're tr/r g toJose weight , the 10151 thrg you needis an al:die ce.Ir, our' private Jne- on-one cClsuller. you will receive :'le suppO:1 andgu:dance you need rc;: cur sl.:!!.

CALL FOR FREE INFORMA TlONAND BROCHURE

; Hcll\". P1'"I !IO". w"" O" O,m 'o'e . .. """D,"OILI9 lhOU" "'. c : L"J.Co'a:Sp1r,g'

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\1,10' C... !! C.'d, ACN

;C"!loiAdQ"il"" Bc,

oK""M. Bntlell. Kend.L_o We"",\ "..!T'''"J'''


259 Complaint

EXHIBIT I

273

IR TUESDAY. NOVEM8ER 6. 1990, THE MlAMI HrnALD 'JJ1i'A

BEFORE

II"

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\'. ' " . , )!

i'

: ''',: .';, ' ,. "' . .. ,

f;"

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167 LBS.

WHAT MAKESOUR PROGRAM. EFFECTNE .-SA"

' ,

. WNG LATING RESULTS

. F-ASY

CACE-CIIII..Rlcf8.

---

2!5-1i.. Nor I.ml 8...- UJ.5227.. NJ,,_,,- !!il''''8rk..!.. k--II...__ .zl' 11Q. W_cnut.,I'.ml.ml .. S51.1U1

Exh ::i t :

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117 LBS.

THE BEST?. PRIVATE CQUNSEUNQINEXENSIV. NOPRE.PACKAGED roODSTO BUY

BROWARD.. W""""P""''D..PI''.4J2. 'Z'''

::.. ~~~~

.CQI$II"I 7S3-SO.. PIom.Of. 74..1r5.. HotP .._u_..-. "'-6U

, . , . ,..

116 LBS.

'3 yr, l3er an I'm:s hm. tr &" he. U'snoprs\ang l:IaS... W!f Mar.

FLEBLE. EAT. IN RESTAURAS:FAST FOOD OUTLETS OR AT HOME. DOOR APPROVED.

. "pEOPl.E PROVEN

. .

PALM BEACH.BoR.IDn. 0.1..,. a..u ._0- 272.11&..W. P.lma..ch_ "n.,-.. LahWOt 1N..2U. SWe- 21100

274 FEDERAL TRADE COMMISSIO DECISIO

Complaint

EXHIBIT J

SUNDAY, JUNE 24 , 1990, THE MIAMI HERALD :11.

I WAS NEVER HUNGRY,It Reay Works. I'm Livig Proofl" -

143 Lbs. 113 Lbs.I didn'1 kncr rf I cokj do it, bu11 ha.d nolhing to WO abo I ntrrflllhungf' Of dBPfIt, I onr; 11311 encouraged, espelaJly when I raamy go

-4IOs1 30 Ibs. In lUS , 0 ""ee . Ki M. YouAr WfI9'J!O$$ 1$ bond ro fill Mlal

:;:$ ~~~

EASE INTO SUMMER

DOCTORS WEIGHT with a brand new figure. ": c-LOSS CENTERS "NEW" Permanent Weight Le Tap

4 PART PROGRAM Now Av lale To Th Publ 1. w'l:lliJlutlru!oo T! CaD To See HOW EArT ISI . "$

b!lll!n: "'I!Wtyw'- l.um w1llout & C'ID 1Je'w1n! nt' '1 Md)lh, eJT", . R

" .;.. :::' :: ' , .., , .. , ' , ' ' "

irnmtIII!Im IUpe rU!

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118 F.


259

275

Complaint

EXHIBIT K

T"e NeW5 Mo"cav , Julv 8. 19'1 A7

J.DeiggerLabels .

.'..V.... I!\!!I' J\odl I;Ct"'L",'!YLI'S...h'Jtr I

::.

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5000 OFF 'ntiTe il'vcntoryr,,,..,,,,.,.,,An'" :

' _'R "'Jrf'_o.l',"_. '1Ib:,1

, ., :

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I iK ' #'1 :15 I

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Sail the Incomparable "SAGAFJORO"at Our UNEATABLE Prices

Carbbean Cruse - 13 Days

Oct. 17 - Oct. 30 "'I,

, ..,

"A""...

Can TERRY - 286-0777

. . . .

. STUART'BOCARATON-OEl-RAY/BOCA

287-o0M4711-4,

72. !!454

. WEST PALM BEACH 473- 1446'U.KEWORT 1!9. 2221 I

~~~- ,," "

17 LOCATIONSW'l LOSSVAR1ES'i'11! Drv!C'JAL

.STORM Servin The Treasure Coast Since 1979

!:xh bi:. K ///AY..

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DO IT YOURS ELFERS" .

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228- ' 1 gO-'4g3"" ' 411-! ANG E. 2,90' --

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Complaint 118 F.TC.

EXHIBIT L

10A Swn--entlnel , Monday. June 11 , 1990

Any weight loss isbound to fail unlesyou learn to eat atfast fOod outlets andloday s restaurants.

DOCTORS WEIGHTLOSS CENTERS HA VEA 4 PART PROGRAM

t lese '-ill whle eatin refOO Ihal you buy al lhe

:=7Irlclandpreparll2. Learn 'Ial1o Nil &. f' 10

ordll While &sti 11 aid' s. DenlTs. Re LobI'..etc. .. and S1i1 lo

""t Slay Il'ln lor 'II.fOfYO\ov !rll frOZ IT I!IOWSIpe81

, One on On Pen s..\'sItJruOV

My husband keeps Ie/lingme how grx look. hadlow bloo suar befcxe slar1ed DOCTORS WEIGHTLOSS CENTERS. But now feel great"

Jolanta GawlikRiviers Beacl , FL

DADE''''''1111' . HoII.8d .CullerRidll_.N. ..i.m;Bc_ B.52. Hiale . BrI...1 .K..,1I V,,,,'O. WI.1cl'I..fTam - 55'-1121

BROW ARD. P.mbra. Pin..IDuil - 43-8. Pom /o-..1d - QI,Ftu_.d.Ie_alSprll._ 7$3-P'l1lia 7u-. Ho- V81-5hUC,.,il C.rdlACGplld

PALM BEACH. Bo R.lon 4n-Do.,.. m-6

. N. P.lm a.

. w, Palm"' oa14. uk. .CI 182:.5111 ,m..S81YtX

DOCTORS MEDICAL WEIGHT LOSS CENTERS INC. , ET AL. 277259 CompJaint

EXHIBITM

MONDAY , AUGUST S. \990, THE MIAMI HERALD' :Ie:

! , ' ,

LOST 25 LBS,IN WEEKS!

I feelbetter about

mvself &

h)'sicalyfeelwonderful,

K.1hyCohJ

' j.

' I'I "

; '. "

Jr.

- ,. ----- --------

LOSE 3-1' LBS. A Week,far only . . I: $11 per WEEK* :

1.1W1. Q!1r Fgr II", PrD(! ali,

------~~~------

PROGRAMS FOR MEN, WOMEN, AND TEENSCALLor DROP-IN for FREE CONSULTATION- II CI I' .

DADE

Lose all the weight you want while

learning to live and eat in lodaymodern worid of fast food outlets,Denny , Red Lobster, Pizza Hut,restaurants, convenien e stores, etc.

" , . .

, I, r

278

Complaint


REVOLUTIONARY NEW WAYTO LOSE WEIGHT

YOU DO IT YOUR WAY!

\, ."'.,..

EXHIBIT N

"'un-SenUntt. TuMd8Y, Juty31. 1990

rWSEJ:ij"lBs-WEEKI

' -

. 10"for only PER Wr1 II * 1'

IV I: 1\ I ' ,.I

".-..--..

I "(q 1/...

(. .

L______---_J ': Wh 1.18180 I t.8d hih bl 1)- .' W1. an my chllf 2611. In

. ..

' h'FO mOlM my d'llf ha d'OIloI1381myblpl-j W.118 -, go HoI

. .,

, t S !J.

118 F.T.

PROGRAM #1No P9Clal lood, 10 buy. You OBtrestauranl toca or ,,-permerkulrood you prepare at home. On8 ononll perBonal 5Upll 5lon through-out. Up 10 6 Ibs. pllr WNk _IghtIou.

PROGRAM #2For your canYonlence, now Bva/la-ble. a! your Supermarket delicIousmoney saving, !rash lrozen meals100% compatible wnn the Doclor,Weigh' Loss Program. Th8fe s noneed to biI expensive dlel meals81 other weight loss centers everagain I

DOCTORS WEIGHT LOSS ADVANTAGE:

Lose the weight you want, Inexpenslvely, and do It your way, You l! lakethe weight off and learn to keep it

while learning to live and eat intoday s modern world eating at fastfood outlets. convenIence stores, andrestaurants.

DADE BROWARD. W"(-".._h 1'.. - Q:..-I'-fU

..,. ...

.Co"I._1M 1-'

Exr. D:' ': N

PALM BEACH.""''81-.08.,..-.IC,..",--. w. '.i0-'8LabW-

..-

: II

DOCTORS MEDICAL WEIGHT LOSS CENTERS , INC., ET AL. 279


DECISION AND ORDER

The Federal Trade Commission having initiated an investigationof certain acts and practices of the respondents named in the captionhereof, and the respondents having been furnished thereafter with acopy of a draft of complaint which the Bureau of ConsumerProtection proposed to present to the Commission for its consider-ation, and whieh, if issued by the Commission, would chargerespondents with violation of the Federal Trade Commission Act; and

The respondents , their attorneys , and counsel for the Commissionhaving thereafter executed an agreement containing a consent orderan admission by the respondents of all the jurisdictional facts setforth in the aforesaid draft of compJaint , a statement that the signingof said agreement is for settlement purposes only and does notconstitute an admission by respondents that the law has been violatedas al1eged in such complaint , and waivers and other provisions asrequired by the Commission s Rules; and

The Commission having thereafter considered the matter andhaving determined that it had reason to believe that thc respondentshad violated the said Act , and that complaint should issue stating itscharges in that respect , and having thereupon accepted the executedconsent agreement and placed such agreement on the public recordfor a period of sixty (60) days , now in further conformity with theprocedure prescribed in Section 2.34 of its Rules , the Commissionhereby issues its complaint, makes the following jurisdictionalfindings and enters the following order:

I. Respondents DMWLC and DWLC are corporations organized , existing and formerly doing business under and by virtue ofthe laws of the State of Florida , with their offices and principal placeof business located at 5479 A North Federal Highway, FortLauderdale , Florida.

2. Respondent Joyce A. Schuman is an individual with her

principal residence located at 2730 Sea Island Drive, Fort

Lauderdale , Florida.3. The Federal Trade Commission has jurisdiction of the subject

matter of the proceeding and of the respondents , and the proceedingis in the public interest.



ORDER

DEFINITOKS

For the purposes of this order, the following definitions shallapply:

A. Competent and reliable scientifc evidence shall mean thosetests , analyses, research , studies , or other evidence based on theexpertise of professionals in the relevant area, that have been

conducted and evaluated in an objective manner by persons qualifiedto do so , using procedures generally accepted in the profession toyield accurate and reliable results;

B. Weight loss program shall mean any program designed toaid consumers in weight loss or weight maintenance;

C. A broadcast medium shall mean any radio or televisionbroadcast , cablecast , home video , or theatrical release;

D. For any order-required disclosure in print media to be madeclearly and prominently, " or in a "clear and prominent manner, " it

must be given both in the same type style and in: (1) twelve pointtype where the representation that triggers the disclosure is given intwelve point or larger type; or (2) the same type size as therepresentation that triggers the disclosure where that representationis given in a type size that is smaller than twelve point type. For anyorder-required disclosure given orally in a broadcast medium to bemade "clearly and prominently," or in a "clear and prominentmanner " the disclosure must be given at the same volume and in thesame cadence as the representation that triggers the disclosure;

E. A short broadcast advertisement shall mean any advertise-ment of thirty seconds or less duration made in a broadcast medium.

It Is ordered, That respondents DMWLC, a corporation , DWLC

a corporation , their successors and assigns , and their officers , andJoyce A. Schuman , individually and as an officer of said corpo-

rations, and respondents, agents, representatives, and employeesdirectly or through any corporation, subsidiary, division , or otherdevice , in connection with the advertising, promotion , offering forsale , or sale of any weight Joss program , in or affecting commerce , as

DOCTORS MEDICAL WEIGHT LOSS CE!\TERS , INC., ET AL. 281


commerce" is defined in the Federal Trade Commission Act , doforthwith cease and desist from:

A. Making any representation , directly or by implication , aboutthe success of participants on any weight loss program in achievingor maintaining weight loss or weight control unless , at the time ofmaking any such representation, respondents possess and rely uponcompetent and reliable scientific evidence substantiating the repre-sentation , provided , further , that for any representation that:

(1) Any weight loss achieved or maintained through the weightloss program is typical or representative of all or any subset ofparticipants of respondents ' program , said evidence shall , at aminimum , be based on a representative sample of:

(a) All participants who have entered the program , where therepresentation relates to such persons; provided , however, that therequired sample may exclude those participants who dropped out ofthe program within two weeks of their entrance , or who were unableto complete the program due to illness , pregnancy, or change ofresidence; or

(b) All participants who have completed a particular phase of theprogram or the entire program , where the representation only relatesto such persons;

(2) Any weight loss is maintained long- tenn , said evidence shallat a minimum , be based upon the experience of paricipants who werefollowed for a period of at least two years from their completion ofthe active maintenance phase of respondents, program or earliertermination , as applicable; and

(3) Any weight loss is maintained permanently, said evidenceshall , at a minimum , be based upon the experience of participantswho were followed for a period of time after completing the programthat is either:

(a) Generally recognized by experts in the field of treatingobesity as being of sufficient length for predicting that weight losswill be permanent , or


282 FEDERAL TRADE COM:vISSIO!\ DECISIONS



endorsements or testimonials referred to in paragraph I.E. herein , thatparticipants of any weight loss program have successfully maintainedweight loss , unless respondents disclose , clearly and prominently,and in close proximity to such representation , the statement: "Formany dieters, weight loss is temporary ; provided , further, that

respondents sha1l not represent , directly or by implication , that theabove-quoted statement does not apply to dieters in respondentsweight loss program; provided , however, that a mere statement aboutthe existence , design or content of a maintenance program sha1l notwithout more , be considered a representation that partieipants of anyweight loss program have successfu1ly maintained weight loss.

C. Representing, directly or by implication , except through shortbroadcast advertisements referred to in paragraph I.D. herein , andexcept through endorsemcnts or testimonials referred to in paragraphI.E. herein , that participants on any weight loss program havesuccessfu1ly maintained weight loss , unless respondents discloseclearly and prominently, and in close proximity to such represent-ation , the fo1lowing information:

(I) The average percentage of weight loss maintained by those

participants;(2) The duration over which the weight loss was maintained

measured from the date that participants ended the active weight lossphase of the program , provided , further , that if any portion of the timeperiod covered includes participation in a maintenance program(s)that fol1ows active weight loss , such fact must also be disclosed; and

(3) If the participant population referred to is not representativeof the general participant population for respondents ' programs:

(a) The proportion of the total participant population in respon-dents ' programs that those participants represent , expressed in termsof a percentage or actual numbcrs of participants , or

(b) The statement: " (Doctors Medical Weight Loss Centers/Doctors Weight Loss Centers) makes no claim that this (these)result(s) is (are) representative of all participants in the (DoctorsMedical Weight Loss Centers/Doctors Weight Loss Centers)program. "



provided, further, that compliance with the obligations of thisparagraph I.c. in no way relieves respondents of the requirement

under paragraph LA. of this order to substantiate any representationabout the success of participants on any weight loss program inmaintaining weight loss.

D. Representing, directly or by implication , in short broadcastadvertisements , that participants of any weight loss program havesuccessfully maintained weight loss , unless respondents:

(1) Include , clearly and prominently, and in immediate conjunc-tion with such representation , the statement: "Check at our centersfor details about our maintenance record"

(2) For a period of time beginning with the date of the firstbroadcast of any such advertisement and ending no sooner than thirtydays after the last broadcast of such advertisement , comply with thefollowing procedures upon the first presentation of any form askingfor information from a potential client, but in any event before suchperson has entered into any agreement with respondents:

(a) Give to each potential client a separate document entitledMaintenance Information " which shall include all the information

required by paragraph I.E. and subparagraphs I.c. (I)- (3) of this orderand shall be fonnatted in the exact type size and style as the exampleform below , and shall include the heading (Helvetica 14 point bold),lead- in (Times Roman 12 point), disclosures (Helvetica 14 pointbold), aeknow1edgment language (Times Roman 12 point), andsignature block therein; provided , further , that no information inaddition to that required to be included in the document required bythis subparagraph I.D (2) shall be included therein;


Decision and Order 118 F.T.

MAINTENANCE INFORMA TION

You may have seen our recent ad about maintenance success. Hcre s some


(Disclosure of maintenance statistics goeshereXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXlFor many dieters , weight loss is temporary.


(b) Require each potential client to sign such d01::ument; and

(c) Give each client a copy of such document; and

(3) Retain in each client file a copy of the signed maintenancenotice required by this paragraph; provided , further, that:

(i) Compliance with the obligations of this paragraph 1.0. in noway relieves respondents of the requirement under paragraph LA. ofthis order to substantiate any representation about the success ofparticipants on any weight loss program in maintaining weight loss;

(ii) Respondents must comply with both paragraph 1.0. andparagraph I.c. of this order if respondents include in any such shortbroadcast advertisement a representation about maintenance successthat states a number or percentage , or uses descriptive terms that

convey a quantitative measure such as "most of our customersmaintain their weight loss long- term

provided , however, that the provisions of paragraph 1.0. shal1 not

apply to endorsements or testimonials referred to in paragraph I.E.herein.

E. Using any advertisement containing an endorsement ortestimonial about weight loss success or weight loss maintenancesuccess by a participant or participants of respondents ' weight loss

programs if the weight loss success or weight loss maintenance

success depicted in the advertisement is not representative of whatparticipants ofrespondents ' weight loss programs generally achieve

unless respondents disclose , clearly and prominently, and in close

DOCTORS MEDICAL WEIGHT LOSS CENTERS , INC., ET AL. 285


proximity to the endorser s statement of hissuccess or weight loss maintenance success:

or her weight loss

(1) What the generally expected success would be forDMWC/DWLC customers in losing weight or maintaining achievedweight loss; provided , however, that the generally expected successfor DMWLC/DWLC customers may exclude those customers whodropped out of the program within two weeks of their entrance , orwho were unable to complete the program due to illness , pregnancy,or change of residence; or


(a) "You should not expect to experience these results.(b) "This result is not typical. You may not do as well."(c) "This result is not typical. You may be less successful."(d) s success is not typical. You may not do as well."(e) " s experience is not typical. You may achieve less.(f) "Results not typical."

(g) "

Results not typical of program participants.

provided , further, that if the endorsements or testimonials covered bythis paragraph are made in a broadcast mcdium, any disclosure

required by this paragraph must be communicated in a clear andprominent manner, and in immediate conjunction with the represen-tation that triggers the disclosure;

provided , however , that:

(i) For endorsements or testimonials about weight Joss success,respondents can satisfy the requirements of subparagraph I.E. (1) byaccurately disclosing the generally expected success in the followingphrase: "Doctors Medical Weight Loss Centers , Inc. /Doctors WeightLoss Centers , Inc. , participants lose an average of pounds overan average - week treatment period" ; and

(ii) If the weight loss success or weight loss maintenance successdepicted in the advertisement is representative of what participantsof a group or subset clearly defined in the advertisement generallyachieve , then, in lieu of the disclosures required in either sub-

paragraphs I.E. (1)or (2) herein , respondents may substitute a clearand prominent disclosure of the percentage of aJl of respondents,



customers that therepresents.

group or subset defined in the advertisement

F. Representing, directly or by implication , that the price atwhich any weight loss program can be purchased is the only costassociated with losing weight on that program , un1ess such is thecase.

G. Representing, directly or by implication , the price at whichany weight loss program can be purchased, unless respondents

disclose , clearly and prominently, either:

(1) In close proximity to such representation , the existence andamount of a1l mandatory fees associated with the program offered; or

(2) In immediate conjunction with such representation , one of the

fo1lowing statements:

(a) "P1us the cost of (list of products or services that participantsmust purchase at additional cost)" ; or

(b) "Purchase of (list of products or services that participantsmust purchase at additional cost) required"

provided , further , that in broadcast media, if the representation thattriggers any disclosure required by this paragraph is oral , the required

disclosure must also be made orally.H. Failing to disclose over the telephone , for a period beginning

with the date of any advertisement of the price at which any weightloss program can be purchased and ending no sooner than 180 daysafter the 1ast dissemination of such advertisement , to consumers who

inquire about the cost of any weight loss program, or are told aboutthe cost of any weight loss program , the existence and amount of anyand all mandatory costs or fees associated with participation in theprogram; provided, however, that respondents may satisfy thisrequirement by directing their weight loss centers to disclose theinformation, by providing the center personnel with suggested

language to be used when responding to phone inquiries and bymaking their best efforts to ensure compliance with their directive todisclose price information over the telephone.

r. Representing, directly or by implication , that prospective

participants in respondents ' weight loss programs will reach aspecified weight within a specified time period , unless at the time of

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC. , ET AL. 287


making such representation, respondents possess and rely upon

competent and reliable scientific evidence substantiating therepresentation.


typical rate or speed at which any participant on any weight lossprogram has lost or wi1110se weight , unless at the time of making anysuch representation , respondents possess and rely upon competentand reliable scientific evidence that substantiates the representation.

K. Failing to disclose , clearly and prominently, either (1) to eachparticipant who, after the first two weeks on the program, is

experiencing average weekly weight loss that exceeds two percent(2%) of said participant s initial body weight, or three poundswhichever is less , for at least two consecutive weeks , or (2) in writingto all participants when they enter the program, that failure to fol1owthe program protocol and eat all of the food recommended mayinvolve the risk of developing serious health complications.

L. Misrepresenting, directly or by implication , the performanceefficacy, or safety of any weight loss program.

II.

It is further ordered That respondents shall notify theCommission at least thirty (30) days prior to the effective date of anyproposed change in the corporate respondents such as dissolutionassignment, or sale resulting in the emergence of a successorcorporations , the creation or dissolution of subsidiaries , or any otherchange in the corporations that may affect compliance obligationsarising out of this order.

It Is further ordered That respondent Joyce A. Schuman shallpromptly notify the Commission of the discontinuance of her presentbusiness or employmcnt and of her affliation with a new business oremployment. In addition , for a period of three (3) years from theservice date of this order, the individual respondent shall promptlynotify the Commission of each affiJiation with a new business oremployment whose activities relate to the advertising, promotionoffering for sale , or sale of any weight loss program. When sorequired under this paragraph, each such notice shall include the


Decision and Order I \8 FTC.

individual respondent s new business address and a statement of thenature of the business or employment in which the individualrespondent is newly engaged, as well as a description of the

individual respondent s duties and responsibilities in connection withthe business or employment. The expiration of the notice provisionof this paragraph shall not affect any other obligation arising underthis order.

IV.

It Is further ordered, That for three (3) years after the last date of

dissemination of any representation covered by this orderrespondents, or their successors and assigns , shall maintain and uponrequest make available to the Federal Trade Commission forinspection and copying:

A. All materials possessed and relied upon to substantiate anysuch representation; and

B. All tests , reports , studies , surveys , demonstrations , or otherevidence in their possession or control that contradict , qualify, or callinto question such representation , or the basis relied upon for suchrepresentation , including complaints from consumers.

It Is further ordered, That respondents shall distribute a copy of

this order to each of their officers, agents, representatives,independent contractors and employees who are involved in thepreparation and placement of advertisements or promotionalmaterials or in communication with customers or prospectivecustomers or who have any responsibilities with respect to the subjectmatter of this order; and , for a period of three (3) years from the dateof entry of this order, distribute same to all future such officersagents , representatives, independent contractors and employees.



VI.

It Is further ordered, That respondents shall , within sixty (60)

days after the date of service of this order, file with the Commissiona report , in writing, setting forth in detail the manner and fonn inwhich they have complied with this order.


Complaint 118 FT.C.

IN THE MATTER OF

QUICK WEIGHT LOSS CENTERS , INC. , ET AL. (TEXAS)

CONSENT ORDER , ETC. , IN REGARD TO ALLEGED VIOLA TION OFSECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3517. Complaint, Aug. 1994-- Decision, Aug. , 1994

This consent order prohibits , among other things , the Texas commercial dietprogram company and its officers from misrepresenting the performance orsafety of any diet program they offer in the future , and requires the respondentsto possess competent and reliable scientific evidence to substantiate any futureclaims they make about weight loss, weight loss maintenance, or rate of weightloss; to make a number of disclosures regarding maintenance success claims;and to disclose all mandatory fees.

Appearances



Lauderdale , FL.

Eric Bash , Matthew Daynard and Richard

Gabriel Imperato, Broad Cassell Fort

COMPLAI:-T

The Federal Trade Commission , having reason to believe thatQuick Weight Loss Centers , Inc. , a Texas corporation (hereinafterQWLC-Tex. ), Don K. Gearheart , individual1y and as an officer of

said corporation , and Joyce A. Schuman , individual1y and as anofficer of said corporation (hereinafter, collectively, "respondentshave violated Ihe provisions of the Federal Trade Commission Actand it appearing 10 the Commission that a proceeding by it in respectthereof would be in thc public interest , al1eges:

PARAGRAPH 1. (a) Respondent QWLC-Tex. is a Texas corpo-ration , formerly doing business , with its principal offce and place ofbusiness located at 2900 GaIeway, Suite 605 , Irving, Texas.

(b) Respondent Don K. Gearheart is an officer of the corporaterespondent. Individually or in concert with others, he formulatesdirects, and controls the acts or practices of the corporate respondentincluding the acts or practices alleged in this complaint. His principal

QUICK WEIGHT LOSS CENTERS , INC. , ET AL. (TEXAS) 291

290 Complaint

residence is located at 9520 East Pinnacle Pear Road , ScottsdaleArizona.

(c) Respondent Joyce A. Schuman is an officer of the corporaterespondent. Individually or in concert with others , she formulatesdirects , and controls the acts or practices of the corporate respondentincluding the acts or practices alleged in this complaint. Herprincipal residence is located at 2730 Sea Island Drive , FortLauderdale , Florida.

(d) Respondents have cooperated and acted together in carryingout the acts and practices alleged in this complaint.

PAR. 2. Respondents have advertised or otherwise promotedoffered for sale , and sold weight reduction and weight controlprograms and products , and have made them available to consumersat their weight loss centers. Respondents have offered for sale andsold diet programs of 800 to 1500 calories per day that include foodas "food" is defined in Section 15 of the Federal Trade CommissionAct.

PAR. 3. In the course and conduct of their business,respondents have disseminated or have caused to be disseminatedadvertisements for weight reduction and weight control programs andproducts. Respondents have placed these advertisements withvarious media for the purpose of inducing consumers to purchasetheir programs and products. Respondents have further advertisedtheir weight loss programs through the use of promotional materialsincluding pamphlets and brochures, given to customers and

prospective customers at individual weight loss center locations.PAR. 4. The acts and practices of respondents alleged in this

complaint have been in or affecting commerce , as "commerce" is

defined in Section 4 of the Federal Trade Commission Act.PAR. 5. Respondents advertisements and promotional

materials include, but are not necessarily limited to , the advertise-ments and promotional materials attached hereto as Exhibits A-

PAR. 6. The advertisements and promotional materials referredto in paragraph five, attached hereto as Exhibits A- , contain thefollowing statements:

(a) "LOSE WEIGHT , KEEP IT OFF THE EASY WAY" (Exhibit A)(b) "WHAT MAKES A WEIGHT LOSS PROGRAM GREAT? ". Results

should be Jong Jastjng & offer a lifetime solution to a weight problem ...GUESS WHAT ". We just described thc QUICK WEIGHT LOSSPROGRAM." (Exhibit B)


Complaint 118 FTC.

(c) ''' Keeping the weight off has been no problem' ". LONG * LASTINGRESULTS" (Exbibit C)

(d) "' I lost 60 Ibs. and bave learned to keep it off. It s been over 3 years nowand 1 still look and feel great. '" (Exhibit D)

(e) ''' Reaching my goal was the greatest day of my life.''' (Exhibit E)(f) ''' Now that I have reached my goal I will be able to maintain my weight

because I have learned to prepare great dietary meals and how to order inrestaurants.''' (Exhibit F)


advertisements referred to in paragraph six , and others in advertise-ments or promotional materials not specifically set forth hereinrespondents have represented , directly or by implication, that:

(a) QWLC-Tex. customers typically are successful in reachingtheir weight loss goals and maintaining their weight loss either long-term or permanently;

(b) QWLC- Tex. customers typically are successful in maintainingtheir weight loss achieved under the QWLC-Tex. diet program; and

(c) QWLC-Tex. customers typically are successful in reachingtheir weight Joss goals.

PAR. 8. Through the use of the statements contained in theadvertisements referred to in paragraph six, and others in advertise-ments or promotional materials not specifically set forth hereinrespondents have represented , directly or by implication , that at thetime they made the representations set forth in paragraph sevenrespondents possessed and relied upon a reasonable basis thatsubstantiated such representations.

PAR. 9. In truth and in fact , at the time respondents made therepresentations set forth in paragraph seven , they did not possess andrely upon a reasonable basis that substantiated such representations.Therefore , respondents ' representation as set forth in paragraph eightwas and is false and misleading.

PAR. 10. The advertisements referred to in paragraph five

attached hereto as Exhibits B-D and G-L contain the following

statements:

(a) "6 WEEKS FOR $66" (Exhibits B , G)(b) "$11.00 per week" (Exhibits C , D , H , I , 1)(c) "fOR ONLY $11" (ExhibitK)


290 Complain!

(d) "COMPLETE WEIGHT LOSS PROGRAM FOR LESS THAN $9 PERWEEK" (Exhibit L)

PAR. 11. Through the use of the statements contained in theadvertisements referred to in paragraph ten, and others inadvertisements or promotional materials not specifically set forthherein , respondents have represented , directly or by implication , that

the advertised price is the only cost associated with losing weight onthe QWLC-Tex. weight loss program.

PAR. 12. In truth and in fact , the advertised price is not the onlycost associated with losing weight on the QWLC-Tex. weight lossprogram. There are substantial , additional mandatory expensesassociated with participation in the QWLC- Tex. weight loss program.Therefore, respondents' representation as set forth in paragrapheleven was and is false and misleading.

PAR. 13. In advertising the price of the QWLC-Tex. weight lossprogram , respondents have failed to disclose to consumers theexistence and amount of all mandatory expenses associated withparticipation in the QWLC- Tex, weight loss program. This factwould be material to consumers in their purchase or use decisionsregarding the weight loss program. In light of respondentsrepresentation as set forth in paragraph eleven that the quoted pricerepresents the only cost associated with the QWLC- Tex. weight lossprogram , said failure to disclose was and is a deceptive practice.

PAR. 14. The advertisements referred to in paragraph five,attached hereto as Exhibits A , G- , and M , contain the followingstatements:

(a) "Lose 3- 8 pounds a week" (Exhibits A , G)(b) "LOSE 30 LBS. IN 30 DAYS" (Exhibit G)(c) "LOSE 3-7 LBS. A WEEK .," (Exhibit H)(d) "NOW YOU CAN LOSE 3-6 LBS. A WEEK ,." (Exhibits I , J)

(e) "CALL , COME IN AND START TODA Y ,. BE 7 LBS. LIGHTER BY!\EXT WEEK'" (Exhibit M)

PAR. IS. Through the use of the statements contained in theadvertisements referred to in paragraph fourteen, and others in

advertisements or promotional materials not specifically set forthherein , respondents have represented , directly or by implication , thatconsumers following the QWLC-Tex. weight loss program typicallylose weight at an average rate of:


Complaint ! 18 FTC.

i) Thirty pounds in thirty days; andii) Three to eight pounds per week.

PAR. 16. The advertisements referred to in paragraph fiveattached hereto as Exhibits Band K, contain the following state-ments:

(a) "LOSE UP TO 7 LBS. PER WEEK" (Exhibit B)(b) "LOSE UP TO 6lbs Per Week" (Exhibit K)

PAR. 17. Through the use of the statements contained in theadvertisements referred to in paragraph sixteen, and others in

advertisements or promotional materials not specifically set forthherein , respondents have represented , directly or by implication , thatan appreciable number of consumers following the QWLC-Tex.weight loss program typieally lose weight at an average rate of six toseven pounds per week.

PAR. 18. Through the use of the statements contained in theadvertisements referred to in paragraphs fourteen and sixteen , andothers in advertisements or promotional materials not specifically setforth herein , respondents have represented , directly or by implicationthat at the time they made the representations set forth in paragraphsfifteen and seventeen , respondents possessed and relied upon areasonable basis that substantiated such representations.

PAR. 19. In truth and in fact, at the time respondents made therepresentations set forth in paragraphs fifteen and seventeen , they didnot possess and rely upon a reasonable basis that substantiated suchrepresentations. Therefore , respondents ' representation as set forthin paragraph eighteen was and is false and misleading.

PAR. 20. In the course and conduct of their business , respon-dents have provided their customers with diet protocols that requiredsaid customers Inter alia to come in to one of respondents ' weightloss centers three to six times a week for monitoring of their progressincluding weighing in. In the course of regularly ascertaining weightJoss progress , respondents , in some instances, have been presentedwith weight loss results indicating that customers have been losingweight significantly in excess of their projected goals, which is anindication that they may not have been consuming all of the foodprescribed by their diet protocol. Such conduct could , if notcorrected promptly, result in health complications.


290 Complaint

PAR. 21. When presented with the weight loss results describedin paragraph twenty, respondents, on many occasions , have notdisclosed to the customers that failing to follow the diet protocol andconsume all of the calories prescribed could result in healthcomplications. This fact would be material to customers in theirpurchase or use decisions regarding the weight loss program. In lightof respondents ' practice of monitoring customers , said failure to

disclose was and is a deceptive practice.PAR. 22. The advertisements and promotional materials referred

to in paragraph five , attached hereto as Exhibit G, contain the

following statements:

(a) "Medically supervised by weight 1uss specialists" (Exhibit G)

PAR. 23. Through the use of the statements referred to inparagraph twenty- two , and others in advertisements or promotionalmaterials not specifically set forth herein, respondents have

represented, directly or by implication, that customers whoparticipate in QWLC-Tex. diet programs are monitored by healthprofessionals.

PAR. 24. In truth and in fact , customers who participate in

QWLC- Tex. diet programs are not monitored by health professionals.Therefore, respondents' representation as set forth in paragraphtwenty- three was and is false and misleading.

PAR. 25. The acts and practices ofrespondents as alleged in thiscomplaint constitute deceptive acts or practices , and the making offalse advertisements, in or affecting commerce in violation ofSections 5(a) and 12 of the Federal Trade Commission Act.



Complaint J I R F.T.C.

EXHIBIT A

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NEW YEAR'S RESOLUTION:

;Wf

LOSE WEIGHT,

g. ~~~~

KEEP IT OFF

1oE)8)\; l\ Jn TH

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VIJM

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69 LbSJj

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I was never hungry! W

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NO HUNGER. NO EXERCISEat reg:.dar everyday food al' lose pondS I we

. o s Site , In sensibe and n las\SAVE 5300 i month by nol ha.,ng 10 buy expensive pre- aged toods.

Discover 24 SeerelS 10 Gel & Stay Slim' FREE CONSULTATION. . " -1' 1: pnESHJ" IOTT CALL 'ARlH:TO_- .13. 5O1, I II!'"

ICHARD5ON-.- 6IO-'1I1I I-N 'I8'

. kR ~'tli. et~" DALLAS n. WORTH CAPIOWIE_. I5I5

t1\ .!:!r. =::-t 2n.SLIM ' 277. LIM

~~~~

2&.r

~~~~~~ ~~~~~

t'; I;.. 15 Convenient LocationsHOURS: MON. th,u FR!. 9 ..

.. p.

m. . SAT. . ..m. 1 p.

MA.JOR CREDIT CARDS ACCEPTED

, ,

EXE:EI": A -- 000682/).1110- J

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290

297

Complaint

EXHIBIT B

lOSE WnC;HT . p-EATING 3 GOOD MEALS A DAY!CAll. COME IN5T ART TODAY

RECEIVE6 WEEKS 5FOR ONLY

WIII\T MAKL AWEIGHT

lOSS rROGrtAMr.nEAT?

.. Musltrsafe. easyarw

~~~

'a! I S Ie tJly

.,

JS: D: Ilfxible ir, a ! 5 ilua.

rs S' as dliliO oul inI asllccO :Jullcts resiauranis

*Resullsshould !or:Olaslino

& Dllf'a Ille lime soluilon loaICh:Droblem.

.. 1.1usl al:orca:le 8. OllJ Free

i GUESS WHAT We lUstdescribed theQUICI, WEIGHT LOSSI'ROGRAr-1 Call now loryour FREE (OnSUilz.llon

LOSE UP TO 7LDS. PER WEEK

QUICKWEIGHT

LOSSCENTERS

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'" RES

~~~

THIS

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CAN ONLY START

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WHEN YOU DOl

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AMI CUNNINGHMllOST 56 lDS. &. 8

DRLSS SillS &. WAS NEVlR HUNGRYWIfILE EATING 3 GREAT MEALS A DAY

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1) Ion "t5Q It(_ i!HJ) cn ' 101111- 11111

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;ms M,u.(m Tcu. SOO.366- LOSEwt "0'," U'.. I ,1J'UIU1, 'T'"

...:oc'..,cnfr 11t!ll "!!'lal!.I.llt'IIO\\'OI rl'IIIO II"

\J\;' \D

EXEIEr:- 3

OtlQWu \0) 10"10 iJlJ ;: fDoo'1/

298 FEDERAL TRADE CO'vMISSIO:' DECISIONS

Complaint

EXHIBIT C

5"/9'7/

JGDII, 1rBHH \1EEILOSE Hi 3-6 L1S. PEH WEEK

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I ,

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167 L8S

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! 18 FTC.

l ,-,.

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116 L8S.

"C\' pif1 the wC', olf hIS bc TI p1ob\m1 I krc wCArir1!, izc 5" .. 'wt'dy MoInn;nglr our Opll'iOn this IS 11'" Uft.t

..

U'IN! ,In" Jrul up,nli\' wC'l h! los. prorltt'VI\loIblc In III ciTeu5. . MaNgcmf1LQ.W:LC.

mCTvE . SAFE I LONG. LASTNG RESLTS. EASY' PRIVATE COUNSELING I1.\'DrE1\' SI\'E. ""0 PRE.PACKED FOODS rOBlI I FlSU:. EAT.Jt- REAURANT.FAST FOOD Olrnfl'SOR AT HOME. PEOrLE PROVE

- CA LL OR DROP IN YOUR FREE CONSULTATION-

- ---

QUICK WEIGHT LOSS CENTERS

---

IIUlEJI ';'7 S. A1UNt:TO!_4ISO" . CAPRDUTOH--fZ11C.I BOytE _7u.&S CiRAD PRAIRIE _SCI-1T7 : OllCAHVlLE --,.IJST . ,u.zm flVlCi 'i130/. PlANO - . , . 12..12

SfDFono J. P,"tSTDH :5krT7 MESQUT. 13-$.33

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_m_..-"OPIN t\' I'lI"OCS & S"TURD

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tli.9of". S,t. Ii! 1 PM

WtIGH T lOSS VARI!.

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'i-Crr"iLC..,h""O'H1

000142


290

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' " "

I. it. .

E:XHIEIT :;

299

CompJain!

EXHIBIT D

Twesaay, JJly 2. : 99! A.

. () "

I TRIED THEM ALL!. AND NOTHING WORKED UNTIL QWLC,

. ,

(as' 60lbs .nd f"fV learn!d 10 k p It off.1/. o"n om 3 y.m now ' nd! stl/ 10 ok .nd 1,,1

. V LEZIA PETR1Z10. Dall", TX

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GRANO PRAIRIE 602. 0077 DUNCANVILLL 33101DO ,1'1 300

PlANO.

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C24-12' IRVING..__...... . MESQUIT........ S'J-SJJPRESTON......... 739-017 AI

~~~~~~ ::, ~~~

MOCKINGBIRD B23. 2017 "

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HULEN........-_-. 346. ,gS7CAMP BOWIE.... 76H585HURST.........._.. 2B4. 2216BEOFORO ..... .... 354"B665ARLINGTON 548. 111'

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000139

300 FEDERAL TRADE COMMISSION DECISIOJ\S

Complaint 118 F.T.

EXHIBIT E

)///

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c.nn!FJ-jfJI1 the 10 D y Program*

. .

JO/NTH/S WI:EK

. .

' n FIfJAL WI1EK!

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Iencour'\le 'I'ryOM 10 111M wO"*ing onI new you! Ton..,1 WI'.t In Improve men Ion !'.y .,II- Im'\le. Rncnlng my '00.1 WIS11'''0'''11''1 d.yolmyllle. j)'IIVen!\Ir',11hUlltlltH. awloC rnlly works, .nO Wlule

Mari.e, Ba/nesRNGilrland, TX

No Hunger. Ho Exerci..No Pre- Packaged

Food To BuyFAST' SAFE' EASY

Call Today For Your FREEConsultation

REMEMBER, RfSUL TSSTARTWHEN YOU DO!

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s, ,lRUNG"ON. _.._.. 483. 5051HUI.EN.- _.__. 3'5-'1I1'7CAMP BOWIE ..__.. 75J. BSBSHURST..

-..-.._.

254-2216""RLINGTQN --

.... _...

548- 1111BEDFORD n. .--_.

......

354-8665MOCKINGBIRD __.-m 823-2C17IIO'I wlrl 1 .,1,,, I r i..d,.ldu

OPEN EVENINGS & SATURDAY

Toll Free 1. 000. 3GGt.OSE

P1'ESTON.

....

._-...---.--...-....... 739-8077RICHARDSON ...----..---.-......... 6!D. 1696IRVING "-

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----"'--.._..._m... fi5iJ. 1300CARROllTON... ---...-.. 323. ;21'GRAND PRAIRIE__"_"_''' __m.......... 602-0077MESOUITE..._....---...-..._....... 613. 5833JNCANVlllE ...-...---.-- -.-............ 33 '. 1700"L.NO_____._--___.. 424..121

M.!g, C"clol urd, AnrplHlWUI\D"H, .1"". 1''' , 5AT. Tit"""

E:::B:-: .:000567

QUICK WEIGHT LOSS CENTERS, INC. , ET AL. (TEXAS)

290

EXHIBIT F

TUtsda1 , AprJI J - J 991

Complaint

301

Li! DJllujoG nrna).rlUI

VJEIGHT LOSSTHAT WORKS

i BEm STRATTON

LOST

LBS.This programprovi des.

. .

. GUIDANCE, ATTENTION

RESULTS

r ,

- - ('.

ENR01.1. NOWReceiye

ONE MQNTHFREE*

Must Have 30 Ibs. 10 loseNow Ihot I hove

reached my goe! I wi I!be able 10 moin1cin myweight because I hove

learned to preparegreci dietary meelsand how to order in

restcurcn1s,

QUICK WEIGHTLOSS CENTERS

PRESTON ..... ., 739. B077GARLAND ...." .. 680. ; 695IRVING ...,........ 659- 30CCARROLLTON..""o .. 323. 921:GRAN!) p AIf:m. . 602-0077MESQUITL........ . 613. 5533DUNCANVILLE... .. 331. : 700PlANO............

.....

......... 424.4121S. ARLINGTON... ... .. 483. 5081HULEN .

....,",........ ... ....

346. )987CAMP BOWIE.

........ ...

..... 753. 5585HURSi ............

.............,

284. 2216J 1:( ARLINGTON.

... .... ...

... 548. J J 1JBEDFORD .........

... ..........

35':. 8665

CALL FORA FREE CONSI)LTATION MOCKl

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822C:7

M.O CREDrT CUDSACC FTED

MOUltSMON . F!!I gem. ipm

SAI. 90 m. 1p.

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000111


Complaint118 FTC.

EXHIBITG

LOSH\BG 43 POUNDSCHANGED MY LIF

tll iij. J ",

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\.d '

. '-'

ENROLL NOW "'

.';::-

(;""C.

, ' ' ,

)a! SEKS

fflfI'",'''",'' K..

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01 I t ..'91\1 leu Por!lO 01 J ' .

. '..:,

WlC P'09"ml"'S6

. ..:

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---

Sefore 174105 I AFTER 131 fos.

..

. Befa, !? (;)rTlrg to O' ,'LC. I was unha:J;y LOSE J TO II LBS. PER WEEK tlhrr,yselfar,Dl'cn:Jsei1eS1eemMyhuS- I

band was ac:py because o! hO"N I Ifll! . Meo'clily rv!( byatol.Mnyselt Now , atle. losing 431bs" 11eer I we'g/\110 SPWiL

greal anc my h'JSbaM says its much - Nc f'unger or e E'mg Ieasier to Ilye wl!h me. I ve changed my . No ollis or 11.dl0! !ea;Ir'Q habits und haye w':n more enercy

ano lee I hea!tr,IEr Lcslng the weight was . Specra: prog'a'T fer kloS

. ,

easy no hunger , no eXe :::5e. The peo:J!e . Guara1'teed resula: OVVLC are very sUP:Jo.'':rve and I COi,'I::I',r

.=j

have COrJe rt wltrJOL! them ,. FOR MEN , WOMEN -

,"--

DEBRA REMER AND CHILDREN

/ Call Today for Your FREE ConsultationQUICi( WEIGHT LOSS CENTERS

L't

L. .

I:.

., ,.. ,

Fourteen Convenient Metroplex LocationsCALLAS FORT WORTHPRESTON CALL

HULENRICHARDSON Dallas Ft Wcrth CAMP BOWiEIRVING

HURSTCARROL TON 239 LII\ 277 SLIM ARLINGTONMESQUITE .. i) : I BEDFORDNVILlE for !ocation nearest you SOUTH ARLINGTON

MOr:IoH G8IRD/A RAMS .

''I"OO''''''' hI''r.J11 IlrU :l'Wll.tI'T!I. I"1 II. ..!n".\.\'-",".111",....1.

"",_.

E::m: ::AX. June 2'. 19&9 fort Wor Tel"9lml Se!lon 4. P

00031 ,

290


Complaint

EXHIBIT H

LOSE7 LBS. A WEEK

$11PER WEEK"

' PROGRAMS OJ'LYG \HEK MI.\'IMUM PROGRA

.. 1 Pc:oplc: Pron:n .

. '

1". I Since: 1979

/ - , -

LOSE

1iiJ-: THE SAF

\ ' . ' ..

'I ..1-5JHEALTH '

,\" \.\.

WAY'''I'''!.' ..,n .,, 1IK,.'dual

Lo,. 3 10 7 Lbs.' P.. W..k While EatingLot, 01 Low Fat High Fib.. Foods, WhichR.c.nt 1edical Studies Indicat. MayHave A Preventative Effect On MajorHealth Probl.ms. . .

SAFE' EASY. NO HUNGER

j!) c il

I ,)CALL TODAY ror, YOLR FREE CO:\SLL T AT10N

'JiC lil.JJJi - P, . . -

" ".,;' , . . - , '- - -

131. 1077Ut),IH151- 1:123.n11

.oon11J. U33)3""00'N.

' ,

,.t( cnl'TO':OIA1.. cnTI..'. 'O'.M

,,,,,,,. '-

800. 366. LOSE. S" "IO" I ""'"" U O

. !.,.., "

'oo,"-!I

'1).101')4"'1117I3..

14'22 "'H1\

'M5123-2CI1

PRESTON.'C"UIQSOf

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I!SOUITE:)I':"C:"" II..""''0

. "'1I1HU"!H

C:...., IOW!.

""."

.""0fBECIOP.O"'00110111\

303

000661

Complaint


! 18 FTC.

NOVV YOU CANLOSE 3.. LBS.

A WEEK FOR ONLY

$111

304

EXHIBIT!

per weekli""lle cUrr. Nt.. pro;"ml Dilly. S ""H m,niml.m p,r

,r,!', E1=tI.S'' I;rcil:,r,oS 11.:)I;I,m.nll

LAST 4 DAYS!:?7 ;:i' 'l:

- ,

l t:, :t f

91'iho

. (1 rsc

... . (1:1 fJ:J' . . i . ":

, ': ' ! ; "

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:E1EIT I 000630

290

QUICK WEIGHT LOSS CENTERS , INC., ET AL. (TEXAS)

Complaint

EXHIBIT J

tJQfJ VOU CAtj L05E6* LB5. A WEEU

r: y s 11 PER w

-.,

I '

I :;:i' ji?

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lfl ~-r ~ '1 Ii \' t.ri

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Pi J:i

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:-l

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L...Alter 105 Lb..

V. II "1' CoCI.,,, "

~~~, .

" O;"" 1 , ""110 go.- I""\I"of ll:

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""'

"'I''''\I''''I '''''''.N'IC""I' ....()I'''"''cq,., I. - X'lt! !I: ;I . bK'. ""1'' B, , "' r" O!llC. n..,

\."' '''

1'1 ",n,:" OIX)1 !,. Df. \;"I.'V"looQO, 'O'1I1j T"-ITOQWLC

.--

PERSONAL TOUCH COUNSELINGReceive one. to.one Personal Counseling 1rom our own weigt1! 'loss specialist. Behavior EduCltion ano Nutritional Guidance Teacl1es you to keep the Weight Of!

QUlm "'EIGHT LOSS CEt\TERS ro.. . n'. lon""'''''''050N . elo.'''VING... Bi.

C"""OL:' ro.. I, l'c;""..c """III'E 02.0071LlrsOWlrE 61J. 5UJtW"'C..NViLLE.. . D,. ,I00"L.""O .

....... '

12'

Call/or FREE ConsulTllrion

. "'''''''''' ''''''-!'''''''''''''''' ''''_'

""U"ITO".. _......-.-... '1).!.!1"WL!'" ....

...

U.. 1n7C""''''OWI!..... . BI5"UIIST ..-. 2U.21'""\.I..c;ro..

....... .

5.a. nl1BE.NOIIO .. --.-....__.._m .. 5.-"'OC"-ING81110......_.--....__. 12:12CI1

800- 366- LOSEO_i_"'.."..........

.".-,....,,,,

...,.c...'c......,....

000657

305


Complaint 118 FTC.

EXHIBIT K

LOSE UP TO 6 Ibs Per Week'

:;::

;tv, rw""E$f

J f: Czt: -;t;pJ/

V:-J:-- r.

,-..

JI.\ -)

: -

. b

.... . .

1tt t-* :t..z:. :Frhate to diet, but this plan

. . .

t:';f:t:t,

.;.

.:t'

;;-y\"':

is fantasticl The staff is ex- -

''

? T"

tremely supportive and they

.gj!;;

.1 never pOinted a finger or =,'

''..-

critlzed me. I lost 83 Ibs and

-. . ,. -

33 inches, My blood pres- "1 " sure is normal I fee! like a

mill,on

;.

Olin R. HeifnerII.

.. . .

Gatland Texas :

. '. \

;r( 1b,No Hunger' No Exercise

. . ,; , ,,:.'~~~ ..

(I'No Pre- Packaged

Meals To Buy . s..AFAST, SAFE, EASY o- 'f-, 1G'icY

ulJ TodAY Tor Your fREE Consultation Rtm.rnbtr, Ru..h IIIrl ",htn you do

FINAL WEEK

""'ES'ON .._.

_...._._.

017 S. " LlNGTON._._.--_........ 483. 50!1

;(/1':

-",;

,,,, I RICH. CSON._.__

..--

6!o. ,e95 HUlEN

... ..---..-_...

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'JCC CAM eOWIE.-__--....u.. 7n8583

, "

0: . '1" . CARROu.TO"l,,___-___.

....

323. 9211 t-VRS"

----- _......

2J.. 22\6\\1;"1\ !1.l'\11 . . GRA"IOP AIRIE_- u--- 6D2. :r.m ARLINCi"O"l_-_._. 1'"

W' I MESOUITE__._.. 613. 5B33 8EDI'ORO.u_.

_-....-.

35.-1!665

.-

DU"ICA"IVIL.-___.... 331- ,7t;C MOCKING8rRO--

....... .....

1I23-2D17' r' 11

' ,

PL,NO_ -----._u......2."'21 ....,...--..-

, "

r ....".",C........If\.."I_-I"" Ol'("(Vf"...GSIUTUIICU

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1' ""U"CAnU"" HII 'A1, 'H. 1-800.356'LOSE '

::.m :: K 00072'

290


T1l'JQ.n A.Pri.z 1991

Complaint

EXHIBIT L

Ibt i.lJu JRj10 1(!I

. Includes AT NOADDITIONAL COST:

i . Personalized Program. Enrollment. Unlimited Weight loss 8$

Fast or Slow as you want. Unlimited OHice Vlsi1s. Prolessional

SUDerv.sion. Stabilization. Maintenance. Priv8!e One-on-O.,e

Counseling(051 68 fbs. in 21 weeks. My

daughters are physicians they, recommend this program.

Carmen Flores. Baud CHI \ rUI m.mb8T"r.

,:;_ .;. ;;: .; - ..(/ '..;

. -I

:' 1

. , :(.,,;."," . .

//1i .

my(t. th. "11-

PRESTON.______.73!H077 DUNCANVILl .._ .331.1700R!CHARD$N.____..6SD-1696 .PL.NO 424-121

' IRVlNG______.659-1300 S. AJU.1NGTON _485011CARROU TON .___.323-9211 HULEN .34&.1917GRANO PAAIR!E._

"".

602.oC77 CAMP BOWTE_.76.5U, MESQUITE .____m....61JS83f HURS .-----.2S42U

, -

EXHIB:T :

ARLINGTON._-.S4S.1lBEOFORD ._--____ 65SMOCKINGBIRD ___.823.2017

. '"

000112


Complaint 118 F.TC.

EXHIBIT M

, ..'

th,P'""

::::' --:",

Jonmy

. ",,

- f

-- -

iOST HALF MY VtlAIST:

'r...

- .. .--. .. ....- ",.

0'''' j,. -...

:"-:'

i , . G,, ,c",. d "I 111. No 1"' ' PC";I o'

brt'""Pf..,..d by N"'lt l.

w.' ;"LcnSpuIPi'llI. N I, =, 1",tCflC"1

. "O'CI" II PO'"

.' . .

,'.t; SIZE12 1

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Yo ( '

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i ,

( ,.. ' .,-'-- . " . .

I .

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jf \J

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rc:;" " .."', .I i'\ ;

. . . .

CAll, COME IN AND 5TART TODAY..,BE 7 lBS. LIGHTER BY NEXT WEEKI: I

G:tHCt( WEIGHT LOSS CENTERS.. CALLAS

' --

- FORT WORTH --,.

, ' ;

'''('TCH ...............,.".....,.... "LII"................................ "", 'M?;. "'C;IUJlOION......,................. .. No-"" CAW'IOWI.......................... 'n"'''I

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:................... ....... "".

:I,lfCJ, JlOL1TOM "",,"'"'''''''''''' '' :J21. J,JllIH01'OM . ;......................... 10.

"":

MEIOUITE ............................ 113.013 IEDfOIU ..

....

....................... :r "'NIOUIICANVILL......

............ .... .. "'.

"00 ' SOU1HARlJNOTOJr

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O\I'' ''ON'''''la",, 'a-'. I,'. '-Oa.

''.

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...., '-' '''---'

I used 10 227 lb..one' C 51ze 32 dress.

I cM;ped 73 lb.. end10 dress sizes.

Sha,o" Somervile

BEFORE227lBS.SIZE 32

ONE

fITEHtMONTH

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290 Dccision and Order

DECISION AND ORDER

The Federal Trade Commission having initiated an investigationof certain acts and practices of the respondents named in the captionhereof, and the respondents having been furnished thereafter with acopy of a draft of complaint which the Bureau of ConsumerProtection proposed to present to the Commission for its consideration, and which, if issued by the Commission, would chargerespondents with violation of the Federal Trade Commission Act; and

The respondents , their attorneys , and counsel for the Commissionhaving thereafter executed an agreement containing a consent orderan admission by the respondents of all the jurisdictional facts setforth in the aforesaid draft of complaint , a statement that the signingof said agreement is for settlement purposes only and does notconstitute an admission by respondents that the law has been violatedas alleged in such complaint , and waivers and other provisions asrequired by the Commission s Rules; and

The Commission having thereafter considered the matter andhaving determined that it had reason to believe that the respondentshad violated the said Act , and that complaint should issue slating itscharges in that respect , and having thereupon accepted the executedconsent agreement and placed such agreement on the public recordfor a period of sixty (60) days , now in further conformity with theprocedure prescribed in Section 2. 34 of its Rules, the Commissionhereby issues its complaint , makes the following jurisdictionalfindings and enters the following order:

1. Respondent QWLC Tex. is a corporation organized , existingand formerly doing business under and by virtue of the laws of theState of Texas , with its offices and principal place of business locatedat 2900 Gateway, Suite 60S , Irving, Texas.

2. Respondent Don Gearheart is an individual with his principalresidence located at 9520 East Pinnacle Pear Road, Scottsdale

Arizona.3. Respondent Joyce A. Schuman is an individual with her prin-

cipal residence located at 2730 Sea Island Dri ve , Fort LauderdaleFlorida.

4. The Federal Trade Commssion has jurisdiction of the subjectmatter of the proceeding and of the respondents , and the proceedingis in the public interest.



ORDER

DEFINITONS


A. Competent and reliable scientifc evidence shall mean thosetests , analyses , research , studies , or other evidence based on theexpertise of professionals in the relevant area, that have been



C. A broadcast medium shall mean any radio or televisionbroadcast , cablecast, home video , or theatrical release;

D. For any order-required disclosure in print media to be madeclearly and prominently, " or in a "clear and prominent manner " it

must be given both in the same type style and in: (l) twelve point

type where the representation that triggers the disclosure is given intwelve point or larger type; or (2) the same type size as therepresentation that triggers the disclosure where that representationis given in a type size that is smal1er than twelve point type. For anyorder-required disclosure given orally in a broadcast medium to bemade "clearly and prominently," or in a "clear and prominentmanner," the disclosure must be given at the same volume and in thesame cadence as the representation that triggers the disclosure;


It Is ordered That respondents QWLC- Tex. , a corporation , its

successors and assigns , and its officers , and Don K. Gearheart,individually and as an officer of said corporation , and Joyce A.Schuman, individually and as an officer of said corporation , andrespondents ' agents, representatives, and employees, directly orthrough any corporation , subsidiary, division, or other device , in

connection with the advertising, promotion , offering for sale, or sale

QUICK WEIGHT LOSS CENTERS , INC, ET AL. (TEXAS) 311


of any weight loss program, in or affecting commerce, ascommerce" is defined in the Federal Trade Commission Act , do

forthwith cease and desist from:

A. Making any representation , directly or by implication , aboutthe success of participants on any weight loss program in achievingor maintaining weight loss or weight control unless , at the time ofmaking any such representation , respondents possess and rely uponcompetent and reliable scientific evidence substantiating the repre-sentation , provided , further, that for any representation that:

(1) Any weight Joss achieved or maintained through the weightloss program is typical or representative of all or any subset ofparticipants of respondents ' program , said evidence shaIl , at a mini-mum , be based on a representati ve sampJe of:

(a) AIl participants who have entered the program , where therepresentation relates to such persons; provided , however, that therequired sample may exclude those participants who dropped out ofthe program within two weeks of their entrance , or who were unableto complete the program due to illness, pregnancy, or change ofresidence; or

(b) All participants who have completed a particular phase of theprogram or the entire program , where the representation only relatesto such persons;

(2) Any weight loss is maintained long- tenn , said evidence shallat a minimum , be based upon the experience of participants who werefollowed for a period of at least two years from their completion ofthe active maintenance phase of respondents ' program or earliertermination , as appJicabJe; and

(3) Any weight loss is maintained permanently, said evidenceshall , at a minimum , be based upon the experience of participantswho were followed for a period of time after completing the programthat is either:

(a) Generally recognized by experts in the field of treatingobesity as being of sufficient length for predicting that weight losswill be permanent , or





endorsements or testimonials referred to in paragraph I.E. herein , thatparticipants of any weight loss program have successfully maintainedweight Joss , unless respondents disclose , clearly and prominently,and in close proximity to such representation , the statement: "Formany dieters, weight loss is temporary ; provided , further, that

respondents shall not represent , directly or by implication , that theabove-quoted statement does not apply to dieters in respondentsweight Joss program; provided , however, that a mere statement aboutthe existence , design , or content of a maintenance program shall notwithout more , be considered a representation that participants of anyweight loss program have successfully maintained weight loss.

C. Representing, directly or by implication , except through shortbroadcast advertisements referred to in paragraph I.D. herein , andexcept through endorsements or testimonials referred to in paragraphI.E. herein , that participants on any weight loss program havesuccessfully maintained weight loss , unless respondents discloseclearly and prominently, and in close proximity to such rcpresent-ation , the following information:

(1) The average percentage of weight loss maintained by thoscparticipants;

(2) The duration over which the weight loss was maintained

measured from the date that participants ended the active weight lossphase of thc program, provided , further , that if any portion of thc timeperiod covered includes participation in a maintenance program(s)that follows active weight loss , such fact must also be disclosed; and

(3) If the participant population rcferred to is not representativeof the general participant population for respondents ' programs:

(a) The proportion of the total participant population in respon-dents ' programs that those participants represent , expressed in termsof a percentage or actual numbers of participants , or

(b) The statement: " (Quick Weight Loss CcntersJ makes no claimthat this fthese) resultfsJ is fare) representative of all participants inthe lQuick Weight Loss CentersJ program.

QUICK WEIGHT LOSS CENTERS , INC, ET AL. (TEXAS) 313


provided, further, that compliance with the obligations of thisparagraph LC. in no way relieves respondents of the requirementunder paragraph LA. of this order to substantiate any representationabout the success of participants on any weight loss program inmaintaining weight loss.

O. Representing, directly or by implication , in short broadcastadvertisements, that participants of any weight Joss program havesuccessfully maintained weight loss , unless respondents:

(1) Include , clearly and prominently, and in immediate conjunc-tion with such representation, the statement: "Check at our centersfor details about our maintenance record"

(2) For a period of time beginning with the date of the firstbroadcast of any such advertisement and ending no sooner than thirtydays after the Jast broadcast of such advertisement , compJy with thefollowing procedures upon the first presentation of any form askingfor information from a potentiaJ client , but in any event before suchperson has entered into any agreement with respondents:

(a) Give to each potcntial client a separate document entitledMaintenance Infonnation " which shall include all the information

required by paragraph LB. and subparagraphs LC. (1)-(3) of thisorder and shall be formatted in the exact type size and style as theexample form below , and shall include the heading (Helvetica 14point bold), lead- in (Times Roman 12 point), disclosures (Helvetica14 point bold), acknowledgment language (Times Roman 12 point),and signature block therein; provided , further, that no information inaddition to that required to be included in the document required bythis subparagraph 1.0 (2) shal1 be included therein;


Decision and Order J 18 FTC.

MAINTENANCE INFORMATIO!\

You may have seen our recent ad about maintenance success. Here s someadditional information about our maintenance record..

(Disclosure of maintenance statistics goeshereXXXXXXXXXXXXXXXXXXXX

XXXXXXXXXXXXXXXXXXXXXXXFor many dieters , weight toss is temporary.


(b) Require each potential client to sign such document; and(c) Give each client a copy of such document; and


(i) Compliance with the obligations of this paragraph 1.0. in noway relieves respondents of the requirement under paragraph LA. ofthis order to substantiate any representation about the success ofparticipants on any weight loss program in maintaining weight loss;

(ii) Respondents must comply with both paragraph 1.0. andparagraph I.c. of this order if respondents include in any such shortbroadcast advertisement a representation about maintenance successthat states a number or percentage , or uses descriptive terms thatconvey a quantitative measure such as "most of our customersmaintain their weight loss long- term

provided , however , that the provisions of paragraph 1.0. shall notapply to endorsements or testimonials referred to in paragraph I.E.herein.

E. Using any advertisement containing an endorsement ortestimonial about weight loss success or weight loss maintenancesuccess by a participant or participants of respondents ' weight lossprograms if the weight loss success or weight loss maintenance

success depicted in the advertisement is not representative of whatparticipants ofrespondents ' weight loss programs generally achieveunless respondents disclose , clearly and prominently, and in close


290 Dccision and Order

proximity to the endorser s statement of hissuccess or weight loss maintenance success:

or her weight loss

(1) What the generally expected success would be for QWLC-Tex. customers in losing weight or maintaining achieved weight loss;provided, however , that the generally expected success for QWLC-Tex. customers may exclude those customers who dropped out of theprogram within two weeks of their entrance , or who were unable tocomplete the program due to ilness, pregnancy, or change ofresidence; or


(a) "You should not expect to experience these results.(b) "This result is not typical. You may not do as well."(c) "This result is not typical. You may be less successful."(d) " ' s success is not typical. You may not do as well."(e) " ' s experience is not typical. You may achieve less.

(f) "Results not typical."

(g) "


provided , further, that if the endorsements or testimonials covered bythis paragraph are made in a broadcast medium, any disclosure

required by this paragraph must be communicated in a clear andprominent manner, and in immediate conjunction with therepresentation that triggers the disclosure;


(i) For endorsements or testimonials about weight loss success

respondents can satisfy the requirements of subparagraph I.E. (1) byaccurately disclosing the generally expected success in the followingphrase: "Quick Weight Loss Centers, Inc. participants lose anaverage of pounds over an average - week treatment period"and

(ii) 1fthe weight loss success or weight loss maintenance successdepicted in the advertisement is representative of what participantsof a group or subset clearly defined in the advertisement generallyachieve , then , in lieu of the disclosures required in either subpara-graphs I.E. (1)or (2) herein , respondents may substitute a clear andprominent disclosure of the percentage of all of respondents



customers that the group or subset defined in the advertisement

represents.

F. Representing, directly or by implication, that the price at

which any weight loss program can be purchased is the only costassociated with losing weight on that program , unless such is thecase.

G. Representing, directly or by implication , the price at whichany weight loss program can be purchased, unless respondents


(1) In close proximity to such representation , the existence andamount of all mandatory fees associated with the program offered; or

(2) In immediate conjunction with such representation , one of thefollowing statements:

(a) "Plus the cost of (list of products or services that participantsmust purchase at additional costJ" ; or

(b) "Purchase of llist of products or services that participantsmust purchase at additional costJ required"

provided , further , that in broadcast media , if the representation thattriggers any disclosure required by this paragraph is oral , the requireddisclosure must also be made orally.

H. Failing to disclose over the telephone , for a period beginningwith the date of any advertisement of the price at which any weightloss program can be purchased and ending no sooner than 180 daysafter the last dissemination of such advertisement , to consumers whoinquire about the cost of any weight loss program , or are told aboutthe cost of any weight loss program , the existence and amounl of anyand an mandatory costs or fees associated with participation in theprogram; provided, however, that respondents may satisfy thisrequirement by directing their weight loss centers to disclose theinformation, by providing the center personnel with suggcstedlanguage to be used when responding to phone inquiries and bymaking their best efforts to ensure compliance with their directive todisclose price information over the telephone.

1. Representing, directly or by implication, that prospective

participants in respondents, weight loss programs will reach a

specified weight within a specified time period, unless at the time of



making such representation, respondents possess and rely upon



typical rate or speed at which any participant on any weight lossprogram has lost or willlose weight , unless at the time of makng anysuch representation , respondents possess and rely upon competentand reliable scientific evidence that substantiates the representation.

K. Failing to disclose , clearly and prominently, either (1) to eachparticipant who, after the first two weeks on the program, is

experiencing average weekly weight loss that exceeds two percent(2%) of said participant s initial body weight, or three poundswhichever is less , for at least two consecutive weeks , or (2) in writingto all participants when they enter the program , that failure to followthe program protocol and eat all of the food recommended mayinvolve the risk of developing serious health complications.

L. Representing, directly or by implication , that any weight lossprogram is supervised or monitored by health care professionals,unless such is the case , or otherwise misrepresenting, directly or byimplication , the extent to which any weight loss program issupervised or monitored by health care professionals.

M. Misrepresenting, directly or by implication , the performanceefficacy, or safety of any weight loss program.

II.

It is further ordered That respondents shall notify theCommission at least thirty (30) days prior to the effective date of anyproposed change in the corporate respondent such as dissolutionassignment, or sale resulting in the emergence of a successorcorporation(s), the creation or dissolution of subsidiaries , or any otherchange in the corporation(s) that may affect compliance obligationsarising out of this order.

It Is further ordered That respondents Don K. Gearheart andJoyce A. Schuman shall promptly notify the Commission of thediscontinuance of their present business or employment and of theiraffiliation with a new business or employment. In addition , for a


Decision and Order liS F.TC.

period of three (3) years from the service date of this order , theindividual respondents shall promptly notify the Commission of eachaffiiation with a new business or employment whose activities relateto the advertising, promotion , offering for sale , or sale of any weightloss program. When so required under this paragraph , each suchnotice shall include the individual respondent s new business addressand a statement of the nature of the business or employment in whichthe individual respondent is newly engaged , as well as a descriptionof the individual respondent s duties and responsibilities inconnection with the business or employment. The expiration of thenotice provision of this paragraph shall not affect any other obligationarising under this order.

IV.

It Isfurther ordered, That for three (3) years after the last date ofdissemination of any representation covered by this order, respon-dents, or their successors and assigns , shall maintain and uponrequest make available to the Federal Trade Commission forinspection and copying:


B. All tests, reports , studies , surveys , demonstrations , or otherevidence in their possession or control that contradict , qualify, or callinto question such representation , or the basis relied upon for suchrepresentation , including complaints from consumers.

II is further ordered That respondents shall distribute a copy ofthis order to each of their officers, agents, representativesindependent contractors and employees who are involved in thepreparation and placement of advertisements or promotionalmaterials or in communication with customers or prospectivecustomers or who have any responsibilities with respect to the subjectmatter of this order; and , for a period of three (3) years from the dateof entry of this order , distribute same to all future such officersagents , representatives, independent contractors and employees.

QUICK WEIGHT LOSS CENTERS , INC., ET AL. (TEXAS) 319


VI.

It Is further ordered That respondents shalJ , within sixty (60)days after the date of service of this order, file with the Commissiona report , in writing, setting forth in detail the manner and form inwhich they have complied with this order.


Complaint 118 FTC.

IN THE MATTER OF

QUICK WEIGHT LOSS CENTERS , INC., ET AL. (GEORGIA)

CONSENT ORDER , ETC. , IN REGARD TO ALLEGED VIOLATION OFSECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT

Docket C- 3518. Complaint, Aug. 1994-- Decision, Aug. , 1994

This consent order prohibits , among other things , the Georgia commercial dietprogram company and its officer from misrepresenting the performance orsafety of any diet program they offer in the future , and requires the respondentsto possess competent and reliable scientific evidence to substantiate any futureclaims they make about weight loss , weight loss maintenance , or rate of weightloss; to make a number of disclosures regarding maintenance success claims;and to disclose all mandatory fees.

Appearances



Lauderdale , FL.

Eric Bash , Matthew Daynard and Richard

Gabriel Imperato, Broad Cassell Fort

COMPLAINT

The Federal Trade Commission, having reason to believe thatQuick Weight Loss Centers, Inc. , a Georgia corporation (hereinafter

QWLC-Ga. ), and Don K. Gearheart , individually and as an officerof said corporation , (hereinafter, col1ective1y, "respondents ), haveviolated the provisions of the Federal Trade Commission Act , and it

appearing to the Commission that a proceeding by it in respectthereof would be in the public interest, alleges:

PARAGRAPH 1. (a) Respondent QWLC-GA. is a Georgiacorporation , formerly doing business , with jts principal office andplace of business located at 1401 Johnson Ferry Road, Suite 276,Marietta , Georgia.

(b) Respondent Don K. Gearheart is an officer of the corporaterespondent. Individually or in concert with others, he formulatesdirects , and controls the acts or practices of the corporate respondentincluding the acts or practices al1eged in this complaint. His principal

QUICK WEIGHT LOSS CENTERS , INC., ET AL. (GEORGIA) 321

320 Complaint

residence is located at 9520 East Pinnacle Pear Road , Scottsdale,Arizona.

(c) Respondents have cooperated and acted together in carryingout the acts and practices alleged in this complaint.

PAR. 2. Respondents have advertised or otherwise promotedoffered for sale , and sold weight reduction and weight controJ

programs and products , and have made them available to consumersat their weight loss centers. Respondents have offered for sale andsold diet programs of 800 to 1500 calories per day that include foodas "food" is defined in Section 15 of the Federal Trade CommissionAct.

PAR. 3. In the course and conduct of their business , respon-dents have disseminated or have caused to be disseminatedadvertisements for weight reduction and weight control programs andproducts. Respondents have placed these advertisements withvarious media for the purpose of inducing consumers to purchasetheir programs and products. Respondents have further advertisedtheir weight loss programs through the use of promotional materialsincluding pamphlets and brochures, given to customers andprospective customers at individual weight loss center Jocations.

PAR. 4. The acts and practices of respondents alleged in thiscomplaint have been in or affecting commerce , as "commerce" is

defined in Section 4 of the Federal Trade Commission Act.PAR. 5. Respondents ' advertiscments and promotional materi-

als include, but are not necessarily limited to , the advertisements anrl

promotional materials attached hereto as Exhibits A-PAR. 6. The advertisements and promotional materials referred

to in paragraph five , attached hereto as Exhibits A-C, contain thefo11owing statements:

(a) "The only way to lose weight and keep it off." (Exhibi1 A)(b) "WHAT MAKES A WEIGHT LOSS PROGRAM GREAT?... Results

should be long lasting & offer a lifetime solution to a weight problem ...GL:ESS WHAT' ... We just described the QL:CK WEIGHT LOSSPROGRAM." (Exhibit B)

(c) ow that I have reached my goal I will be able to maintain myweight... '" (Exhibit C)


advertisements referred to in paragraph six , and others in advertise-


Complaint 118 FTC.

ments or promotional materials not specifically set forth herein,respondents have represented , directly or by implication, that:

(a) QWLC-GA. customers typically are successful in reachingtheir weight loss goals and maintaining their weight loss either long-term or permanently;

(b) QWLC-GA. customers typically are successful in maintainingtheir weight loss achieved under the QWLC-GA. diet program; and

(c) QWLC-GA. customers typically are suecessful in reachingtheir weight loss goals.


advertisements referred to in paragraph six , and others in advertise-ments or promotional materials not specifically set forth herein,respondents have represented, dircctly or by implication , that at thetime they made the representations set forth in paragraph sevenrespondents possessed and relied upon a reasonable basis that

substantiated such representations.PAR. 9. In truth and in fact , at the time respondents made the

representations set forth in paragraph seven , they did not possess andrely upon a reasonable basis that substantiated such representations.Therefore, respondents ' representation as set forth in paragraph eightwas and is false and misleading.

PAR. 10. The advertisements referred to in paragraph fiveattached hereto as Exhibits B- , contain the following statements:

(a) "SIX WEEKS $66" (Exhibit B)(b) "$12 PER WEEK" (Exhibits C, D)(c) "ONLY $11 PER WEEK" (Exhibits E)

PAR. I!. Through the use of the statements contained in theadvertisements referred to in paragraph ten , and others in advertise-

ments or promotional materials not specifically set forth hereinrespondents have represented , directly or by implication , that the

advertised price is the only cost associated with losing weight on theQWLC-GA. weight loss program.

PAR. 12. In truth and in faet , the advertised price is not the onlycost associated with losing weight on the weight loss program. Thereare substantial , additional mandatory expenses associated withparticipation in the QWLC-GA. weight loss program. Therefore,

QUICK WEIGHT LOSS CENTERS, INC. , ET AL. (GEORGIA) 323

320 Complaint

respondents ' representation as set forth in paragraph eleven was andis false and misleading.

PAR. 13. In advertising the price of the QWLC-GA. weight Jossprogram , respondents have failed to disclose to consumers theexistence and amount of all mandatory expenses associated withparticipation in the QWLC-GA. weight Joss program. This factwould be material to consumers in their purchase or use decisionsregarding the weight loss program. In light of respondentsrepresentation as set forth in paragraph eleven that the quoted pricerepresents the only cost associated with the QWLC-GA. weight lossprogram , said failure to disclose was and is a deceptive practice.

PAR. 14. The advertisement referred to in paragraph fiveattached hereto as Exhibit B , contains the following statements:

(a) "LOSE UP TO 6 LBS PER WEEK"

PAR. 15. Through the use of the statements contained in theadvertisemcnts referred to in paragraph fourteen, and others in

advertisements or promotional materials not specifically set forthherein , respondents have represented, directly or by implication , thatan appreciable number of consumers following the QWLC-GA.weight loss program typically lose weight at an average rate of sixpounds per week.

PAR. 16. Through the use of the statements contained in theadvertisements referred to in paragraph fourteen , and others in

advertisements or promotional materials not specifically set forthherein , respondents have represented , directly or by implication, thatat the time they made the representation set forth in paragraph fifteenrespondents possessed and relied upon a reasonable basis thatsubstantiated such representation.

PAR. 17. In truth and in fact, at the timc respondents made therepresentation set forth in paragraph fifteen, they did not possess andrely upon a reasonable basis that substantiated such representation.Therefore, respondents' representation as set forth in paragraphsixteen was and is faJse and misleading.

PAR. 18. In the routine course and conduct of their businessrespondents have provided their customers with diet protocols thatrequired said customers, Inter alia to come in to one of respondentsweight loss centers three to six times a week for monitoring of theirprogress, including weighing in. In the course of regularly


Complaint 118 FTC.

ascertaining weight loss progress, respondents, in some instances,have been presented with weight loss results indicating thatcustomers have been losing weight significantly in excess of theirprojected goals , which is an indication that they may not have beenconsuming all of the food prescribed by their diet protocol. Suchconduct could, if not corrected promptly, result in healthcomplications.

PAR. 19. When presented with the weight Joss results describedin paragraph eighteen , respondents , on many occasions , have notdisclosed to the customers that failing to fol1ow the diet protocol andconsume all of the calories prescribed could result in health

complieations. This faet would be material to customers in theirpurchase or use decisions regarding the weight Joss program. In lightof respondents ' practice of monitoring customers, said failure todisclose was and is a deceptive practice.

PAR. 20. The acts and practices of respondents as al1eged in this

complaint constitute deceptive acts or practices , and the making offalse advertisements, in or affecting commerce in violation ofSections 5(a) and 12 of the Federal Trade Commission Act.

QUICK WEIGHT LOSS CENTERS , 1:'C. , ET AL. (GEORGIA) 325

320 Complaint

EXHIBIT A

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iI-:'

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lhi


Complaint

WHAT MAKE AWEIGHT LOSS

PROGRAM

, .

. ..tISD8ICJncSCIo:0 OU

.MutllIlC.II;II SI;C!UNlIlZtocu&

"..-

* RaSt IoIz&o !I11II.lisoLtlCa'l. ""bldc&DrugFIIGUESS WHAT! . . . w. jwt de-Jcrbe the QUIO WEIGlOSS PROCKA W no lOtOW fREt conswUt

EXHIBIT B

GREAT?*ID/o/I'10

I LOST 43 lBS.IN JUST 15

' neeHI!.

t;" couldn' t do It

,. /

on my own.

. . "'-

Itwaea

.::,::,:,. - .

,:. to follow anJ

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:- I wa t hun

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:.. gry. Thenic.I'" .

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ar was I

:""'

::::::::::: could eat

.. :. - .

..". reguarfo&. stili Josel'

... !!

LOSE UP

6LBS

PER WEEK

LLL",-START TODAY

SI

$66*QUIC WEIGHT LOSS CENTrs

ROSSTNE MOUNTAINMA1ETAUL.URN/GW1NNET

BUCKlEAIM1CTWN3SS-362SANOY SPRINGS 2S5-787OUNWOOOY 98130.

COBB SO\ILA 98126Hours: 9a. 7 p. m. Dailv. Sat 9 a.

' p.

"N- Enllml' Only bdu.IW 01 PfIl I!' $uO

9I 2.7398513,27913:1

118 F.TC.

jO- - ;' C

QUICK WEIGHT LOSS CENTERS , INC" ET AL. (GEORGIA) 327

320 Complaint

EXHIBIT C

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vnu

WEI.GHT!LOSS LOVi, LOW -

' '-' -' . '-" ' ,.

. SERVCE FEES

BemsiRrr

'---' .

$12

Tiptn, GA '

. , '. " . '

.a. pP8ra.lo.. :I "

ow that I haveI. ) reoched my . I will :

~~~

.c'

. .

, be able to maintain my :. wei9hjb couse Ihave:

leorned to prepare :great dietory meols :

.,

and how to order i

..-.._. -

J-,stl;urcnt. .i1QUICKWEIGHT

GUIDANCE 'LOSS CENTERS AmNTJON ' ROII1 991:RESULTS , ;S8 Springs 257a:

" BUClIldcw 3527:. Maett eH131:

." - . '- .:: -

, For Other Locaons. cali 509-8400

DS

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'- HOtS:MON. FJI. 9o. 7p.m. " _11212

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jp.

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CAll FOR A FREE NSULTATION CW.""__0808, :

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Complaint 118 F.TC.

1 ku,,6 no wd 121

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B U C K H E A 0 231- 1234 3340 Peachtree Rd. N.E. Atlaf!

LOSING WEIGHTMAES SENSEWHEN yoa KEEP

IT OFF.Motha & Daughtal. 99 lb. in t5 Weeks1" wogl.100 prom

hu dlgeour eating babits"

. ...

1..43.,&J'we 124LbL.. ttu.

::..:-,1::::

EXHIBITD

'l::

LOSE AL TH WEIGHT YOU CAN

Low lOw Service Fees

Onl'l $12* Per Week.On a program basis

Call lor a FREE consultation

QUICK WDGHT LOSS CENTERS

san:;2

~~~

77

- . parkide Center .

Buckhead 355-3627

2221 Peachtree Rd.

Roswell 998-

1355 Old Alabama Road

- .

Exlusive ot sup nts. and p

REcyclE . Tltis -pAPER,plwtl.

-,.

QUICK WEIGHT LOSS CENTERS , INC. , ET AL. (GEORGIA)

320 Complaint

EXHlBtT E

,.-..._n "'.--.w \:... ) II11.

---- --

'RESENT CC PON AT TIME OF SITNG ----- .J I

LOSE WEIGHT

. NO GIMMICK

, .

FABULOUS REULT .ONETOON 5UERV15!ON

:. NO FASNG O!UQ

, '

Pf\

. " . . . . . "

No sm EX ) f4 .

AS SA! W8 lO- II..

" CA FOR FREECONSULTATION

QUICK WEIGHT LOSS CENTERSBUCXEAIMIDTCWN :\-362 ROSW 911SANDY SPRINGS 2578 STONE MOUNTAIN 2"73DUNWOODY 98830 MARIETA 85131EA COBB .830 LJLBUAN/GWlNNm 271331SOunLAE

-... . .

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329


Dccision and Order 118 F.T.

DECISION AND ORDER

The Federal Trade Commission having initiated an investigationof certain acts and practices of the respondents named in the captionhereof, and the respondents having been furnished thereafter with acopy of a draft of complaint which the Bureau of ConsumerProtection proposed to present to the Commission for its consider-ation, and which, if issued by the Commission, would chargerespondents with violation of the Federal Trade Commission Act; and

The respondents , their attorneys , and counsel for the Commissionhaving thereafter executed an agreement containing a consent orderan admission by the respondents of al1 the jurisdictional facts setforth in the aforesaid draft of complaint , a statement that the signingof said agreement is for settlement purposes only and does notconstitute an admission by respondents that the law has been violatedas al1eged in such complaint , and waivers and other provisions asrequired by the Commission s Rules; and

The Commission having thereafter considered the matter andhaving determined that it had reason to believe that the respondentshad violated the said Act, and that complaint should issue stating itscharges in that respect, and having thereupon accepted the executedconsent agreement and placed such agreement on the public recordfor a period of sixty (60) days , now in further conformity with theprocedure prescribed in Section 2.34 of its Rules , the Commissionhereby issues its complaint, makes the following jurisdictionalfindings and enters the following order:

I. Respondent QWLC-GA. is a corporation organized , existingand formerly doing business under and by virtue of the laws of theState of Georgia , with its offces and principal plaee of businesslocated at 1401 Johnson Ferry Road , Suite 276, Marietta , Georgia.

2. Respondent Don Gearheart is an individual with his principalresidence located at 9520 East Pinnacle Pear Road, Scottsdale

Arizona.3. The Federal Trade Commission has jurisdiction of the subject

matter of the proceeding and of the respondents , and the proceedingis in the public interest.

QUICK WEIGHT LOSS CENTERS , INC. , ET AL. (GEORGIA) 331


ORDER

DEFINITONS


A. Competent and reliable scientifc evidence shall mean thosetests , analyses , research , studies , or other evidence based on theexpertise of professionals in the relevant area, that have been



C. A broadcast medium shall mean any radio or televisionbroadcast , cablecast , home video , or theatrical release;

D. For any order- required disclosure in print media to be madeclearly and prominently," or in a "clear and prominent manner " it

must be given both in the same type style and in: (1) twelve pointtype where the representation that triggers the disclosure is given intwelve point or larger type; or (2) the same type size as the

representation that triggers the disclosure where that representationis given in a type size that is smaller than twelve point type. For anyorder-required disclosure given orally in a broadcast medium to bemade "clearly and prominently," or in a "clear and prominentmanner " the disclosure must be given at the same volume and in thesame cadence as the representation that triggers the disclosure;


It Is ordered, That respondents QWLC-Ga. , a corporation , its

successors and assigns , and its officers, and Don K. Gearheartindividually and as an offcer of said corporation , and respondentsagents , representatives , and employees, directly or through anycorporation , subsidiary, division , or other device , in connection withthe advertising, promotion , offering for sale , or sale of any weightloss program , in or affecting commerce , as "commerce" is defined in


Decision and Order 118 F.

the Federal Trade Commission Act, do forthwith cease and desistfrom:

A. Making any representation , directly or by implication, aboutthe success of participants on any weight loss program in achievingor maintaining weight loss or weight control unless, at the time ofmaking any such representation, respondents possess and rely uponcompetent and reliable scientific evidence substantiating the repre-sentation , provided , further, that for any representation that:

(1) Any weight loss achieved or maintained through the weightloss program is typical or representative of al1 or any subset ofparticipants of respondents' program, said evidence shaJl , at a

minimum , be based on a representative sample of:

(a) All participants who have entered the program , where therepresentation relates to such persons; provided , however, that therequired sample may exclude those participants who dropped out ofthe program within two weeks of their entrance , or who were unableto complete the program due to il1ness , pregnancy, or change ofresidence; or

(b) All participants who have completed a particular phase of theprogram or the entire program , where the representation onJy relatesto such persons;

(2) Any weight loss is maintained long- tenn, said evidence shallat a minimum , be based upon the experience of participants who werefol1owed for a period of at least two years from their completion ofthe active maintenance phase of respondents ' program or earliertermination , as applicable; and

(3) Any weight loss is maintained permanently, said evidenceshal1 , at a minimum , be based upon the experience of participantswho were followed for a period of time after completing the programthat is either:

(a) Generally recognized by experts in the field of treatingobesity as being of sufficient length for predicting that weight losswiJl be permanent , or





endorsements or testimonials referred to in paragraph I.E. herein , thatparticipants of any weight loss program have successfully maintainedweight loss , unless respondents disclose, clearly and prominently,and in close proximity to such representation , the statement: "Formany dieters, weight loss is temporary ; provided, further, that

respondents shall not represent, directly or by implication , that theabove-quoted statement does not apply to dieters in respondentsweight loss program; provided , however, that a mere statement aboutthe existence , design , or content of a maintenance program shaH notwithout more , be considered a representation that participants of anyweight loss program have successfully maintained weight loss.

C. Representing, directly or by implication , except through shortbroadcast advertisements referred to in paragraph I.D. herein , andexcept through endorsements or testimonials referred to in paragraphI.E. herein , that participants on any weight loss program havesuccessfully maintained weight loss , unless respondents discloseclearly and prominently, and in close proximity to such represen-tation , the following information:

(1) The average percentage of weight loss maintained by thoseparticipants;

(2) The duration over which the weight loss was maintained

measured from the date that participants ended the acti ve weight lossphase of the program , provided , further, that if any portion of the timeperiod covered includes participation in a maintenance program(s)that follows active weight loss , such fact must also be disclosed; and

(3) If the participant population referred to is not representativeof the general participant population for respondents ' programs:

(a) The proportion of the total participant population in respon-dents ' programs that those participants represent , expressed in termsof a percentage or actual numbers of participants , or

(b) The statement: " lQuick Weight Loss Centers) makes noclaim that this (these) resultfsl is fare) representative of allparticipants in the (Quick Weight Loss Centers) program.

provided , further, that compliance with the obligations of thisparagraph l.c. in no way relieves respondents of the requircment

under paragraph LA. of this order to substantiate any representation



about the success of participants on any weight loss program inmaintaining weight loss.

O. Representing, directly or by implication , in short broadcastadvertisements , that participants of any weight loss program havesuccessfully maintained weight loss, unless respondents:

(I) Include , clearly and prominently, and in immediate conjunc-tion with such representation , the statement: "Check at our centersfor details about our maintenance record"

(2) For a period of time beginning with the date of the firstbroadcast of any such advertisement and ending no sooner than thirtydays after the last broadcast of such advertisement , comply with thefollowing procedures upon the first presentation of any form askingfor infonnation from a potential client, but in any event before suchperson has entered into any agreement with respondents:

(a) Give to each potential client a separate document entitledMaintenance Informa1ion " which shall include all the information

required by paragraph LB. and subparagraphs LC. (1)- (3) of this orderand shall be fonnalted in the exact type size and style as the exampleform below , and shall include the heading (Helvetica 14 point bold),lead- in (Times Roman 12 point), disclosures (Helvetica 14 pointbold), acknowledgment language (Times Roman 12 point), andsignature block therein; provided, further, that no information inaddition to that required to be included in the document required bythis subparagraph 1.0 (2) shall be included therein;

MAINTENANCE INFORMATION

You may have seen our recent ad about maintenance success. Here s some


(Disclosure of maintenance statistics goeshereXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXJ

For many dieters , weight loss is temporary.

have read this notice.(Client Signature) (Date)

(b) Require each potential cEent to sign such document; and(c) Give each client a eopy of such document; and

QUICK WEIGHT LOSS CENTERS, INC. , ET AL. (GEORGIA) 335

320 Decision al1d Order


(i) Compliance with the obligations of this paragraph LO. in noway relieves respondents of the requirement under paragraph LA. ofthis order to substantiate any representation about the success , ofparticipants on any weight loss program in maintaining weight loss;

(ii) Respondents must comply with both paragraph LO. andparagraph LC. of this order if respondents include in any such shortbroadcast advertisement a representation about maintenance successthat states a number or percentage , or uses descriptive terms thatconvey a quantitative measure such as "most of our customersmaintain their weight loss long- term

provided , however, that the provisions of paragraph 1.0. shall notapply to endorsements or testimonials referred to in paragraph I.E.herein.

E. Using any advertisement containing an endorsement ortestimonial about weight loss success or weight loss maintenancesuccess by a participant or participants of respondents ' weight lossprograms if the weight loss success or weight loss maintenancesuccess depicted in the advertisement is not representative of whatparticipants of respondents ' weight loss programs genera1ly achieveunless respondents disclose , clearly and prominently, and in closeproximity to the endorser s statement of his or her weight loss

success or weight loss maintenance success:

(1) What the genera1ly expected success would be for QWLC-Ga.customers in losing weight or maintaining achieved weight loss;provided , however , that the generally expected success for QWLC-GA. customers may exclude those customers who dropped out of theprogram within two weeks of their entrance , or who were unable tocomplete the program due to illness, pregnancy, or change ofresidence; or

(2) One of the fo1lowing statements:

(a) "You shouJd not expec1 to experience these results.(b) "This result is not typical. You may not do as welL"(c) "This result is not typical. You may be less successful."(d) " , s success is not typical. You may not do as well."



(e) " ' s experience is not typical. You may achieve less.(f) "Results not typical."

(g) "


provided , further, that if the endorsements or testimonials covered bythis paragraph are made in a broadcast medium , any disclosure

required by this paragraph must be communicated in a clear andprominent manner, and in immediate conjunction with the represen-tation that triggers the disclosure;


(i) For endorsements or testimonials about weight loss success,respondents can satisfy the requirements of subparagraph I.E. (1) byaccurately disclosing the generally expected success in the followingphrase: "Quick Weight Loss Centers, Inc. participants lose anaverage of pounds over an average - week treatmentperiod" ; and

(ii) If the weight loss success or weight loss maintenance successdepicted in the advertisement is representative of what participantsof a group or subset clearly defined in the advertisement generallyachieve, then, in lieu of the disclosures required in either sub.

paragraphs I.E. (1) or (2) herein , respondents may substitute a clearand prominent diselosure of the percentage of all of respondentscustomers that the group or subset defined in the advertisement

represents.

F. Representing, directly or by impJication, that the price at

which any weight loss program can be purchased is the only costassociated with losing weight on that program , unless such is thecase.

G. Representing, directly or by impJication , the price at whichany weight loss program can be purchased, unless respondents


(1) In close proximity to such representation , the existence andamount of all mandatory fees associated with the program offered; or

(2) In immediate conjunction with such representation , one of the

fol1owing statements:



(a) "Plus the cost of (list of products or services that participantsmust purchase at additional cost)"; or

(b) "Purchase of (list of products or services that participantsmust purchase at additional cost) required"

provided , further, that in broadcast media , if the representation thattriggers any disclosure required by this paragraph is oral , the requireddisclosure must also be made orally.

H. Failing to disclose over the telephone , for a period beginningwith the date of any advertisement of the price at which any weightloss program can be purchased and ending no sooner than 180 daysafter the last dissemination of such advertisement , to consumers whoinquire about the cost of any weight loss program , or are told aboutthe cost of any weight loss program , the existence and amount of anyand all mandatory costs or fees associated with participation in theprogram; provided, however, that respondents may satisfy thisrequirement by directing their weight loss centers to disclose theinformation, by providing the center personnel with suggestedlanguage to be used when responding to phone inquiries and bymaking their best efforts to ensure compliance with their directive todisclose price information over the telephone.

r. Representing, directly or by implication , that prospective

participants in respondents ' weight loss programs will reach aspecified weight within a specified time period , unless at the time ofmaking such representation, respondents possess and rely upon



typical rate or speed at which any participant on any weight lossprogram has lost or wil lose weight , unless at the time of making anysuch representation , respondents possess and rely upon competentand reliable scientific evidence that substantiates the representation.

K. Failing to disclose , clearly and prominently, either (1) to eachparticipant who , after the first two weeks on the program, is

experiencing average weekly weight loss that exceeds two percent(2%) of said participant s initial body weight, or three poundswhichever is less , for at least two consecutive weeks , or (2) in writingto all participants when they enter the program, that failure to followthe program protocol and eat al1 of the food recommended mayinvolve the risk of developing serious health complications.



L. Misrepresenting, directly or by implication , the performanceefficacy, or safety of any weight loss program.

II.

It Is further ordered, That respondents shall notify theCommission at least thirty (30) days prior to the effective date of anyproposed change in the corporate respondent such as dissolutionassignment, or sale resulting in the emergence of a suceessorcorporation(s), the creation or dissolution of subsidiaries , or any otherchange in the corporation(s) that may affect compliance obligationsarising out of this order.

It Is further ordered That respondent Don K. Gearheart shallpromptly notify the Commission of the discontinuance of his presentbusiness or employment and of his affiliation with a new business oremployment. In addition , for a period of three (3) years from theservice date of this order, the individual respondent shall promptlynotify the Commission of each affiliation with a new business oremployment whose activities relate to the advertising, promotionoffering for sale , or sale of any weight loss program. When sorequired under this paragraph , each such notice shall include theindividual respondent s new business address and a statement of thenature of the business or employment in which the individualrespondent is newly engaged, as well as a description of the

individual respondent s duties and responsibilities in connection withthe business or employment. The expiration of the notice provisionof this paragraph shall not affect any other obligation arising underthis order.

IV.

It Is further ordered, That for three (3) years after the last date ofdissemination of any representation covered by this order , respon-dents, or their successors and assigns , shall maintain and uponrequest make available to the Federal Trade Commission forinspection and copying:




B. All tests, reports, studies , surveys , demonstrations, or otherevidence in their possession or control that contradict , qualify, or callinto question such representation , or the basis relied upon for suchrepresentation , including complaints from consumers.

It Is further ordered That respondents shall distribute a copy ofthis order to each of their officers, agents, representativesindependent contractors and employees who are involved in thepreparation and placement of advertisements or promotionalmaterials or in communication with customers or prospectivecustomers or who have any responsibilities with respect to the subjectmatter of this order; and , for a period of three (3) years from the dateof entry of this order, distribute same to all future such offcersagents , representatives, independent contractors and employees.

VI.

It Is further ordered That respondents shall , within sixty (60)days after the date of service of this order, file with the Commissiona report , in writing, setting forth in detail the manner and form inwhich they have complied with this order.


nONAL 213 - Federal Trade Commission€¦ · BEVERLY HILLS WEIGHT LOSS CLINICS INTERNA nONAL 213...

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