New You, Inc

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IN THE MATTER OF THE NEW YOU, INC. J,T AL CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF Tile FEDERAL TRADE COMMISSION ACT Dockel C-2671. Cornplm:nt, June il, 1975-Decision, June, 1975 Consent order requiring a Hollywood, Fla., promoter of an inh reTitly dangerous process or treatment, involving application of a caustic chemical solution of the faces and other parts of the bodies of customers, among other things to cease misrepresenting the safety, effcacy and cost of the treatments; to dearly and conspicuously disclose the health ha1ards involved in the application of the process or treatment as well as the limited efficacy of the treatment; to use a licensed medical practitioner to examine, diagnose, advise, select or mentally prepare prospective patients, to supervise and direct administrations or applications of the treatment, and to provide post-opemtive advice or care for the patients; and to require prospective patients to consult with and obtain a certificate from an independent physician prior to treatment. Appeamnces For the Commission: Robert L. Osteen, Jr. For the respondents: Atfred E. Johnson Fort LauderdaleFla. 932 FEDERAL TRADle COMMISSION DECISIONS Complaint 85 FTC.

COMPLAINT Pursuant to the provisions of the Federal Trade Commission Act , and' by virtue of the authority vested in it by said Act, the Federal Trade Commission having reason to believe that The New You, Inc., a corporation doing; business as The New You, and The New You Clinic de Facial, and Robert M. Neadel, individually and as an offcer of said corporation, hereinafter referred to as respondents, have violated Sections 5 and 12 of said Act, and it appearing to the Commission that a proceeding by it in respect thereto would be in the public interest hereby issues its complaint, stating its charges in that respect as follows:

P AHAGRAPH 1. Respondent The New You, Inc. is a corporation organized, existing and doing business under and by virue of the laws of the State of Florida with its offce and principal place of business located at HiOI Harrson St., Hollywood, Fla. Respondent Robert M. Neadel is an individual and an offcer of the corporate respondent. He formulates, directs and controls the acts and practices of the corporate respondent including the acts and practices hereinafter set forth. His address is the same as that of the corporate respondent.

PAR. 2. Respondents are now, and for,sometime last past have been engaged in the operation of The New You and The New You Clinic de Facial. Respondents advertise, offer for sale, and sell to the general public a medical process called The New You system (hereinafter sometimes referred to as respondents' treatment) which involves the application of a certain caustic chemical solution to the face, or various other parts of the bodies of their clients for the purported purpose of removing or diminishing manifestations of aging such as wrinkles, lines folds and spots and undesirable features such as blemishes, large pores and acne marks by peeling the upper layers of skin from the treated areas. After the solution is applied to the patient's skin, bandages are then applied to the treated areas and are allowed to remain for several days; after which time, the bandages are removed and the upper layers of skin, destroyed by the process, are peeled away, PAR. 3. Respondents' medical treatment constitutes either a drug or a cosmetic, or both, as defined in Sections 15(c) and (e) of the Federal Trade Commission Act, 15 U. c. !j!j55(c) and (e). PAR. 4. In the course and conduct of their business as aforesaid respondents advertise in newspapers of general circulation which are distributed by mail in states other than the state in which they are printed. In addition, advertising materials, contracts and agreements business cOITespondence, monies and other documents travel by mail I nl' , l'1rJVV IVU , U'iV 1'--11"1,. '"..1,) 9:i Complaint between respond"nts' place of business and the residences of prospective patients. By virtue of these activities, respond"nts have maintained a substantial business in conuercc, as "commerce" is used in S"ction 5 of the Federal Trade Commssion Act. Also, respondents have diss minated and caused to be disseminated advertisements by United states mails, and in comme ce by other means, within the meaning of Section 12(a)(1) of the Federal Trade Commission Act, 15 C. !j 52(a)(l). Furher, respondents' advertisements have the purose of inducing, or are likely to induce, directly or indirectly, the purchase in commerce of The N ew You treatment, within the meaning of Section 12(a)(2) of said Act, 15 U. C. !j52(a)(2). PAR. 5. In the course and conduct of their business, and for the purpose of inducing the purchase of The New You treatment respondents have made and are now making numerous statel1ents and representations in advertisements inserted in newspapers of general circulation and in other promotional materials and sales presentations. Typical of the statements and representations contained in said advertising, promotional literature and durng sales presentations, but not all inclusive, are the following:

Let us take at least 15 years off your face. This is a unique regenerative process.

This special youth process has brought new glow and happiness to thousands throughout the world.

Now there s a new way to do something wonderful, positive, and pennanent about your prematurely aged face. Now there s The Ne You, the dawn of a brighter day. The New You is a system of facial rejuvenation that can literally take you back 10, 15 or even 20 years in appearance.

The New You is not cosmetic. It is not surgical. It is regeneration Your next 10 days wil be spent in our modern clinic, where you U be pampered 'round the clock. During that time, the years win be painlessly di:mppearing from your face to be miraculously replaced by youthfuUy glowing new skin. We apply a special formulated solution to your skin and cover it with a mask. During the next week and a half, Jines and folds around the eyes, and wrinkles on the checks and forehead, diminish or disappear. Give us 10 days of your time and we JI take at least 10 years off your face. And the years stay off. So if we t.ake 15 years from your appear-mce, you ll continue to Jook about 15 years younger than you realJy are. Then for the next 10 days or so you simply relax at The New You facilities while the formula does its quiet work.

First understand that there s no cutting, no scraping, no machines, no abrasives, no creams, no exercises.

PAR. 6. Through the use of the above statements and representations, and others of similar import and meaning but not expressly set out herein, respondents have represented directly or by implication that:

Respondents' treatment is not medical or surgical in nature. , Complaint G F.T.C.

2. Respondents' treatment is generally painless and involves no abrasives or caustic chemicals.

Potential discomfort is virtually non-existent as one can relax without emotional or physical distress durng the treatment. 4. The application of the respondents' treatment is a safe procedure free from possible serious side effects or complications. 5. Respondents' treatment will eliminate or signficantly diminish acne marks, big pores, deep lines, deep wrinkles and. sagging or redundant folds of skin.

6. Respondents' treatment will produce or result in new, soft, fresh clear, healthy, fine-textured skin.

7. Respondents' treatment is clinically recommended or can be beneficial to all kinds of people.

8. Respondents' personnel are competently trained and qualified to: (a) examine, advise, and mentally prepare patients to undergo the treatment; (b) determine whether each patient is a proper subject for treatment; (c) administer or perform treatment without the direction and supervision of a licensed medical pmctitioner; and (d) provide postoperative advice and care for patients.

9. Respondents' treatment is complete in 10 days. 10. As a result of respondents' treatment, patients wil appear 15 years younger than their chronological age. 11. Respondents represent that the treatment is unique, that the process is new or special, thatit involves a secret formula, that it is available only through the respondents, and that these factors justify the high price of the treatment.

PAR. 7. In truth and in fact:

1. The treatment involves application of a caustic chemical solution (containing phenol, also known as carbolic acid) to the skin, causing a second-degree burn which peels off the outer layers of the skin and produces a change in skin appearance solely by the body's own woundhealing processes. This treatment is known as chemosurgery and is a serious medical procedure.

2. The treatment involves caustic chemicals and creams which burn the upper layers of skin to create peeling and is in fact painful in many c3.-;cs.

a. The pain associated with the said treatment can be so severe that respondents' patients are always sedated or anesthetized durng the application of acid and may require medication for days, weeks, or months afterward to reduce pain and other discomforts, such as itching and burning. Durng the treatment, many patients experience such discomforts as the eyes swelling shut and difficulties breating and swallowing.

9:n Complaint 4. The treatment has a number of inherent dangers to the human body:

a. Systemic Toxic Reaction (Poisoning). The chemical used in The New You treatment, phenol, is toxic to kidneys, liver, and other organs of the body when present in sufficient quantities. Phenol can be absorbed through the skin during the treatment in quantities suffcient to cause serious and even fatal ilness in some people. Persons with kidney infections are particularly susceptible to adverse phenol reaction.

b, Infection, Like any other serious bur covering a large surface of the body, the danger of infection through the bured area is ever present during the process and for some time afterward. Thc "powder mask " worn for a week after the initial treatment is in reality a medical step to attempt to prevent infection. c. The Eyes. If the acid gets in a patient's eycs, serious permanent damage can result, including blindness; therefore, a great deal of medical skil is required and adequate precautions must be taken to prevent such an occurence and minimize the har if this does happen. d. Other Systemic Complications. Since phenol skin peeling is a serious, traumatic medical procedlI€ and involves use of sedatives and other medications, clients are exposed to numerous other dangers including heart disease and allergic reactions, which accompany procedures of this type. If patients are not properly prepared physicaUy, mentary and emotionally, with special emphasis on full disclosure of all that the process entails, these dangers are heightened and the prospects for improvement diminished. 5. Only certain limited conditions, such as fine lines and some skin blemishes, can be affected by the process, and only in carefuUy selected persons. Acne scar, big pores, deep lines, deep wrinkles, and sagging or redundant folds of skin are not eliminated or significantly diminished by the treatment.

6. As a result of the treatment, a number of undesirdble changes in the skin may occur, necessitating the continual use of cosmetics or medical techniques to protect the skin, or treat or camoufage its condition, including but not limited to:

a. Scarring. Varous types of visible scar may appear after the treatment and rcmain indefinitely.

b. Pigmentation hnnges. The treatment almost always produces changes in the color of the treated area, which may persist indefinitely, such as a lighter overall color, mottling (dark areas altcrnating with light areas), and lines of demarcation between treated and untreated areas.

c. Redness. The extreme redness of the skin, which occurs mainly Complaint 85 FTC.

durng the healing process, may persist for a long time, Also, there may be a tendency, persisting indefinitely, for the treated skin to flush (suddenly appear red) during times of overheating, overexertion or emotional stress.

d. Sensitivity To Sunlight. Durng the healing process and for an indefinite period afterward, the treated skin may react abnormally to exposure to sunlight, including severe sunbur, motting, and other pigmentation changes.

e. Other Skin Reactions. The treated skin may be affected by other problems associated with the traumatic impact of chemical skin peeling, such as increased or coarsened hair growth requiring further medical attention.

7. Favorable results cannot be achieved unless rigorous criteria for patient selection are followed, including but not limited to: a. Sex. Most men should not undergo the treatment because of difficulties associated with beard growth and the necessity for wearng cosmetics to protect the skin and camouflage its condition. Yet respondents do perform the treatment on men. b. Age. A young person whose skin has not matured should not go through the treatment nor should an elderly person who cannot stand the physical strain.

c. Type Of Skin. The treatment should only be performed on certain limited types of skin, and definitely not on dark-skinned persons because of the probability of drastic pigmentation changes. d, Other Factors, People who are not in the proper physical, mental and emotional health should not undergo this treatment. 8. Because of its serious medical nature, respondents who are not and do not employ professionally trained or licensed personnel are not qualified to deal with the complex physical, mental, and emotional factors involved in the treatment.

9, A period lasting weeks or months, the duration of which cannot be accurately predicted, is required before the skin is healed. Durng this time, a treated person has an extremely red face, may suffer various discomforts, and must restrict public activities, avoid direct or reflected sunlight and use heavy cosmetics to shicld and camouflage the skin, 10. Treated persons cannot reasonably expect that their appearance wil be altered by more than a year or two from their actual chronological age, even with the best results obtained by a professional plastic surgeon.

11. There is nothing unique about the respondents' treatment. The process is not new or secret, but is performed by qualified plastic THE NEW YOU, INC, ET AL.

931 Complaint surgeons under more closely controlled hospital conditions in metropolitan areas across the country for a fraction of the respondents' price. . Therefore, representations referred to in Paragraph Five are false mislead(fing and deceptive.

PAR. 8. In the course and conduct of their business, respondents directly or through agents, have represented in advertisements, during oral sales presentations, and at other times and places, the asserted advantages of their treatment, as hereinbefore described. In no case have respondents disclosed:

1. The treatment is chemical skin peeling, a serious medical procedure known as chemosurgery.

2. The treatment involves the application of an acid called phenol to the skin, causing a second-degree burn which peels off the outer layers of the skin and produces a change in skin appearance solely by the body s OViIl wound healing reactions.

3. The pain associated with the treatment can be very severe; thus patients are sedated or anesthetized during the application of acid. This pain, as well as other discomforts, such as burning, itching, and swollen shut eyes, may persist for days or weeks afterward, requiring medication to control.

1. The treatment has a number of known inherent dangers including: (1) poisoning of a person s entire system by the acid absorbed through the skin, which can be a serious, even fatal illness; (b) infection; (c) blindness, if the acid gets into a patient's eyes; (d) permanent scarrng; and (e) other complications resulting from the tmumatic nature of the procedure or the medications used. 5. A number of undesirable changes in the ski result from chemical skin-peeling, necessitating the continual use of cosmetics or medical techniques to protect, treat, or camouflage the skin. These may include: (a) permanent scarng; (b) changes in overall color of the treated area; (c) mottling; (d) a line of demarcation at the edge. of the treated area; (e) extreme redness; (I) abnormal sensitivity to sunlight; and (g) other traumatic skin reactions.

6. The most common sign of aging in the neck area, which is a stringy or "turkey-neck" condition of the skin and underlying tissues, is not improved by chemical skin-peeling.

7. Almost all plastic surgeons refuse to perform chemical skinpeeling on the neck because the neck is not likely to be improved by the process and is more likely to be worsened since the risks of undesirble side effects and skin changes described above are greater. 8. Only minor aspects of skin appearance, such as fine wrinkles and some skin blemishes, can be treated by the process. 9. Acne scars, big pores, deep lines, deep wrinkles, and sagging or 9:J8 FEDERAL TRADE COMMISSION DECISIONS Complaint 85 F.

redundant folds of skin are not removed or signcantly reduced by the process, yet some of these conditions may be improved by other tech"iques of plastic surgery, such as dermabra.sion or surgical face lift. io: Most men are not advised to undergo the process because of difficulties associated with beard growth and the necessity for continual use of cosmetics.

11. A young person whose skin has not matured should not undergo the process, because of the risk of permanent skin damage. 12. Dark-skinned persons should not undergo the process because of the probability of drastic pigmentation changes. 13. Only certain kinds of people with certain types of skin have a rea.sonable chance of receiving favorable results and avoiding adverse effects from chemical skin peeling, and only a licensed medical practitioner familiar with such techniques of plastic surgery and able to evaluate complex physical, mental and emotional factors is qualifed to examine, diagnose, advise, select, or mentally prepare patients for chemical skin peeling, and only such a professional person can provide post-operative advice and care for patients. 14, Although a treatment of this serious nature is usually performed in a hospital, respondents apply and administer the treatment at a clinic, which they own or operate.

15. It may be weeks or months after the treatment before the skin is healed, durng which time a treated person has an extremely red face, may suffer various discomforts, and must restrict public activities avoid direct or reflected sunight and use heavy cosmetics and sun screens.

16. If a more youthful appearance is achieved through the treatment the result may not la.st more than a year or two, since part of the benefit is due to temporary swelling and since the natural aging processes begin all over again after the treatment. 17. Chemical skin peeling is available from qualifed plastic surgeons under closely controlled hospital conditions in metropolitan areas across the country at substantially lower cost. The disadvantages, consequences and dangers described in the above pamgraph have occured or existed, or to a reasonable mediea certainty can be expected to occur or exist, and respondents knew, or had reason to know, that they could be expectcd to occur or exist. Therefore, the failure to disclose the material facts referred to in Paragraph Eight is false and misleading and the acts and practices referred to in said paragraph are unair and deceptive. PAR. 9. In the course and conduct of their business, the respondents have been, and are now, using persons other than a licensed medical practitioner who is familiar with techniques of pla.,tic surgery, who is 9:J1 Decision and Order operating within the limits of his or her profcssion, and who is qualified to evaluate complcx physical, mental and emotional factors, to examine diagnose, advise, select, or mentally prepare prospective patients for The New You treatment, to administer or apply the treatment without supervision or direction, or to provide post-operative advice or care forthem. . The use by the respondents of the aforesaid practices is an unfair act or practice and an act of unfair competition within the intent and meaning of Section 5 of the Federal Trade Commission Act. PAR. 10. Therefore the advertisements, representations, acts and practices referred to hereinabove are false, misleading, unfair and deceptive.

PAR. 11. The use by respondents of the aforesaid false, misleading, unfair and deceptive representations, acts and prdctices has the capacity and tendency to mislead consumers into the mistaken belief that said representations are true and to unfairly influence consumers with the result that consumers are induced to undergo The New You treatment and be subjected to severe pain, discomfort, inconvenience of traveling, exorbitant charges, and risks of disease or disfigurement without being afforded reasonable opportunty to comprehend and consider the seriousness of the treatment or to compare facial improvement treatments available from other sources under more closely controlled medical conditions, at lower prices. PAR. 12. The respondents' acts and practices alleged herein, including the dissemination of false advertisements, are all to the prejudice and injury of the public and constitute unair and deceptive acts and practices in commerce in violation of Sections 5 and 12 of the Federa Trade Commission Act.

DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondents named in the caption hereof, and the respondents having been furished thereafter with a copy of a draft of complaint which the Atlanta Regional Offce proposed to present to the Commission for its consideration and which if issued by the Commission, would charge respondents with violation of the Federal Trde Commission Act; and The respondents and counsel for the Commssion having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signg of said agreement is for settement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint Decision and Order 85 F.

and waivers and other provisions as required by the Commission rules; and J.'\e Commission having thereafter considered the matter and having determined that it has reason to believe that the respondents have violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34(b) of its rules, the Commission hereby issues its complaint, makes the following jurisdictional findings, and enters the following order:

1. Respondent The New You, r nc. is a corporation organized existing and doing business under and by virtue of the laws of the State of Florida, with its offce and principal place of business located at 1601 Harrson St" Hollywood, Fla.

2. Respondent Robert M. Ncadel is an individual and offcer of the said corporation. He formulates, directs and controls the policies, acts and practices of said corporation, and his principal office and place of businesss is located at the above address.

3. The Federal Trade Commssion has jursdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER It is ordered That respondents The New You, Inc., a corpmtion, doing business as The New You Clinic de Facial or any other trade name or names, its successors and assign, and Robert M- N cadel individually and as an offcer of said corporation (hereinafter sometimes referred to as "respondents ), and respondents' officers, agents representatives and employees, directly or through any corpomtion, subsidiary, division or other device, in connection with the advertising, offering for sale, sale, or dispensing of The New You treatment (hereinafter sometimes referred to a., respondents' treatment) or any similar cosmetic chemosurgical process of face lifting or skin peelig, which involves the topical application of a caustic chemiea solution containing carbolic acid (also known as phenol) or other substances on the face, necll, ars, hands or other parts of the humn body for the purpose of inducing superfcial skin burs, the result of which is the peeling or removal of the outer layers of ski, in commerce, as commerce" is defined in the Federal Trade Conuission Act, or by the United States mails within the meaning of Section 12(a)(l) of the Federal Trade Conuission Act, do forthwith cease and de ist from: A. Representing directly or by implication that: THE NEW YOU, INC, ET AL. 941 9:n Decision and Order 1. Respondents' treatment or process is solely a cosmetic process not a medical process, or does not involve chemical surgery. 2-. Rcsfindents' treatment .or proc:css is painless or involves no abra.c;ives or caustic chemicals.

3. Potential discomfort is virtually non-existent as one can relax without emotional or physical distress during the treatment. 4. Respondents' treatment is safe or free from possible serious side effects or complications.

5. Respondents' treatment or process will remove or signficantly reduce acne sca."', big pores, deep lines, deep wrinkles, or sagging, redundant folds of skin.

6. Respondents' treatment will produce or result in new so, fresh clear, healthy, fine-textured skin.

7. Respondents' process can be clinically recommended to or safely or successfully performed on men, young people, elderly people, or dark-skinned people.

8. Respondents' personnel are competently trdined and qualfied to: (a) examine, advise, and mentally prepare patients to undergo the treatment; (b) determine whether each patient is a proper subject for treatment; (c) administer or perform treatment without direction and supervision of a licensed medical practitioner; and (d) provide postoperative advice and care for patients.

9. Respondents' treatment is complete within any specified period of time.

10. Respondents' treatment wil cause clients to appear any specifed number of years younger than their actual chronological age. 11. Respondents' process is unique, new or special in the following or other ways:

a. That it involves a secret fonnula or secret solution; b. That it or similar processes are only available through respondents; and c. That it is not available through qualified plastic surgeons under more closely controlled hospital conditions in metropolitan areas across theB.countryFailingat aorsubstantial1yrefusing to makelower c1earcost. and conspicuous disclosures in al1 advertising and in all oral sales presentations, that: 1. The treatment is chemical skin-peeling, a serious medical procedure known a.-; chemosurgery.

2. The treatment involves the application of an acid called phenol to the skin, causing a second-degree burn which peels off the outer layers of the skin and produces a change in ski appearance solely by the body s own wound-healing reactions.

3. The pain associated with the treatment can be very severe; thus Decision and Order 85 F.T. patients are sedated or anesthetized durng the application of acid. Ths pain, as well as other discomforts, such as burning, itching, and swollen shut, eyes, may persist . for days or weeks afterward, requiing medication to control 4. The treatment has a number of known inherent dangers including: (a) poisoning of a person s entire system by the acid absorbed through the skin, which can be a serious, even fatal ilness; (b) infection; (c) blindness, if the acid gets into a patient's eyes; (d) permanent scarrng; and (e) other complications resulting from the traumatic nature of the procedure or the medications used. G. A number of undesirable changes in the skin result from chemical skin-peeling, necessitating the continual use of cosmetics or medical techniques to protect, treat, or camouflage the skin. These may include: (a) permanent scarrng; (b) changes in overall color of the treated area; (c) mowing; (d) a line of demarcation at the edge of the treated area; (e) extreme redness; (f) abnormal sensitivity to sunlght; and (g) other traumatic skin reactions.

6. The most common sign of aging in the neck area, which is a stringy or "turkey-neck" condition of the skin and underlying tissues, is not improved by chemical skin-peeling.

7, Almost all plastic surgeons refuse to perform chemical skinpeeling on the neck because the neck is not likely to be improved by the process and is more likely to be worsened since the risks of undesirblc side effects and skin changes described above are greater. 8. Only minor aspects of skin appearance, such as fine wrinkles and some skin blemishes, can be treated by the process. 9. Acne scars, big pores, deep lines, deep wrinkles, and sagging or redundant folds of skin are not removed or significantly reduced by the process, yet some of these conditions may be improved by other techniques of plastic surgery, such as dermbraion or surgical face lift. 10. Most men are not advised to undergo the process because of difficulties associated with beard growth and the necessity for continual use of cosmetics.

11. A young person whose skin has not matured should not undergo the process, because of the risk of permanent skin damage. 12. Dark-skinned persons should not undergo the process because of the probability of drastic pigmentation changes. 13. Only certin kinds of people with certain types of skin have a reasonable chance of receivig favorable results and avoiding adverse effects from chemical skin-peeling, and only a licensed medical practitioner familiar with such techniques of plastic surgery and able to evaluate complex physical, mental and emotional factors is qualified to examine, diagnose, advise, select, or mentally prepare patients for THl' N.tW YUU , lnc, t;T AL.

931 Decision and Order chemical skin-peeling, and only such a professional person can provide post-operative advice and care for patients, 14. Although a treatment of this serious nature is usually performedy ownin a hospital,"!r operate.respondents' treatment is given at a clinic, which 15. It may be weeks or months after the treatment before the skin is healed, during which time a treated person has an extremely red face, may suffer various discomforts, and must restrict public activities avoid direct or reflected sunlight and use heavy cosmetics and sun screens.

16, If a more youthful appearance is achieved through the treatment, the results may not last more than a year or two, since par of the benefit is due to temporar swellng and since the natural aging processes begin all over again after the treatment. 17. Chemical skin-peeling is available from qualifed plastic surgeons under closely controlled hospital conditions in metropolitan areas across the country at substantially lower cost. Respondents shall set forth the above disclosures separately and conspicuously from the balance of each advertisement and each presentation used in connection with the advertising, offering for sale sale, or dispensing of respondents' cosmetic process, and shall devote no less than fifteen percent of each advertisement or presentation to such disclosures. Provided, however That in advertisements which consist of less than forty-eight column inches in newspapers or periodicals, and in radio or television advertisements with a rung- time of two minutes or less, respondents may substitute the following statement, in Jieu of the above requirements:

WARNING: This is a medical procedure- basically a chemical burn which peels skin away. It is extremely painful, takes a long time to heal. and exposes a person to risks of poisoning, infection, permanent scarrng, and other medical complications. If performed on the neck, the process may make it look worse. Many signs of aging are' not improved by this process, and the benefit, if any, is mainly temporary. Only certain kinds of people can benefit from this process, and they should be diagnosed, selected, treated, and continually cared for by a qualified doctor under closely controlled medical conditions. (Statement required by order of the Federal Trade Commission Respondents shall set forth the above disclosure sepamtely and conspicuously from the balance of each advertisement, stating nothing to the contrary or in mitigation thereof, and shall devote no less than fifteen percent of each advertisement to such disclosure, and if such disclosure is made in print, it shall be in at least eleven-point typ. It is That respondents: further orred 1. Recall and retrieve, from each and every licensee and sales representative, all advertisements and materials upon which advertisements or oral sales presentations are ba. which contain any of the 944 !"EDERAL TRADE COMMISSION DECISIONS Decision and Order 85 F.

representations prohibited by Paragraph A of this order or which fail to make the disclosures required by Pamgraph B. ' Deliver a copy of this ' order to each present and future franchisee, licensee, and sales representative, and to each licensed medical practitioner associated with respondents or their licensees; and obtain a written acknowledgement from each of the receipt thereof. 3. Obtain from each present and future franchisee, licensee, or sales representative an agreement in wrting (a) to abide by the terms of this order, and (b) to the cancellation of their license or franchise for failure to do so; and that respondents cancel the license or franchise of any licensee or franchisee that fails to abide by the terms . of this order. It is further ordered That respondents:

1. Provide prospective and present patients, as soon as possible after initial sales contact is made with such person and before such person signs any document relating to respondents' process, an information sheet which shall be furshed to the prospective patient and which contains nothing but thc disclosures, numbered 1 to 17, set forth in Paragraph B. Respondents shall allow these persons ample uninterrpted opportunity to read and consider the contents of this information sheet. Respondents shall retain a copy of this information sheet, after it is signed and dated by the person, for a period of two (2) years.

2. Require that each such prospective patient, after receipt of the information sheet described above and before he or she signs any contract for respondents' treatment, consult with a licensed physician who is not in any way associated with or recommended by the respondents, regarding the nature of chemical skin-peeling, its dangers discomforts, limitations, and alternatives. Respondents shall obtain from each prospective patient a certifcate, signed by the physician who was thus consulted, specifying that the physician: a. Understands what respondents' treatment is and the conditions under which it will be performed;

b. Has explained to the prospective patient the nature of the treatment, its dangers, discomforts, limitations, and alternatives; c. Has conducted or has examined the results of tests appropriate to determinevrospective patient's physical fitness to undergo respondents' treatment and has discussed these results with the prospective patient; and d. Has reviewed appropriate aspects of the prospective patient' medical history and has discussed these aspects with the prospective patient.

This certificate shall specify the date and approximate time of the 9"1 Decision ;md Order consultation, and respondent shall retain all such certifcates for three (3) years.

It is furtlwr ordered That no contract for respondents' process shah become binding on the patient prior to forty-eight hours after the patient has consulted with the physician who will direct and supervse the- perfoiming of the treatment and inspected and approved the treatment and recuperation facilities, and that: 1. Respondents shall clearly and conspicuously disclose, orally prior to the time of sale, and in writing on any contract, promissory note or other instrument signed by the patient, that the purchaser may rescind or cancel any obligation incurred, with retur of all monies paid, by mailing or delivering a notice of cancellation to the respondents' place of business prior to the end of this period. 2. Respondents shall provide a separate and clearly understandable form which the purchaser may use as a notice of cancellation. 3. Respondents shall retur to such patient, within forty-eight hours after receipt of notice of cancellation, all monies paid. 4. Respondents shall not negotiate any contract, promissory note, or other instrument of indebtedness to a finance company or other third party prior to the time the patient is treated. Itis further ordered That respondents cease and desist from the following unfair practice:

1. Failing or refusing to use a licensed medical practitioner, who is familiar with such techniques of plastic surgery, who is operating within the limits of his or her profession; and who is qualified to evaluate complex physical, mental and. emotional factors, to examine diagnose, advise, select, or mentally prepare all prospective patients for chemical skin-peeling, to supervise and direct all administrations or applications of the treatment, and to provide post-operative advice or care for all such patients.

It is furtlwr ordered That respondents maintain at all times in the future, for a period of not less than three (a) year, complete business records relative to the manner and form of their continuing compliance with the above terms and provisions of this order. It is furtlwr ordered That the corporate respondent notify the Commission at least thirty (: O) days prior to any proposed change in said respondent, such as dissolution, assignment, or sale resulting in the emergence of a successor corpration, the creation or dissolution of subsidiaries, licensees, or franchisees, or any other change in the corporation which may affect compliance oblig'dtions arsing out of this order.

It is furtlwr ordered That the individual respondent named herein promptly notify the Commission of the discontinuance of his present Order 85 F.

business or employment, and of his affliation with a new business or employment, in the event of such discontinuance or affiliation. Such noti !" shan include respondents' curent business address and a , stat"ment as to the nature of the business or employment in which he is engaged as well as a description of his duties and responsibiJiies. It is further ordered That the respondents herein shall within sixty (60) days after service upon them of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.