Nu-Day Enterprises, Inc

Text (OCR of the scan at left; may contain errors)

IN THE MATTER OF NU-DAY ENTERPRISES, INC., ET AL.

CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3380. Complaint, Apr. 22, 1992--Decision, Apr. 22, 1992 This consent order prohibits, among other things, a Washington corporation, its owner, and an officer from making false and unsubstantiated claims concerning their diet program, and from misrepresenting that any program length television commercial ("infomercial") they produce is an independent program and not a paid advertisement; and requires a disclosure message, within the first 30 seconds of any infomercial that is 15 minutes long or longer, and in addition, every time ordering information is presented, a disclosure that the infomercial is a paid advertisement.

Appearances For the Commission: Timothy T. Hughes and John C. Hallerud. For the respondents: Robert E. Armstrong, Gronek & Armstrong, Chicago, IL.

COMPLAINT The Federal Trade Commission, having reason to believe that Nu-Day Enterprises, Inc., HealthComm, Inc., corporations and Jeffrey S. Bland, individually and as an officer of Nu-Day Enterprises, Inc., and HealthComm, Inc., hereinafter sometimes referred to as respondents, have violated provisions of the Federal Trade Commission Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, alleges:

PARAGRAPH 1. a. Respondent Nu-Day Enterprises, Inc., is a Washington corporation with its office and principal place of business located at 5800 Soundview Dr., N.W., Gig Harbor, Washington.

Complaint 115 F.T.C.

b. Respondent HealthComm, Inc. is a Washington corporation with its office and principal place of business located at 5800 Soundview Dr., N. W., Gig Harbor, Washington. HealthComm, Inc., owns and controls Nu-Day Enterprises, Inc. c. Respondent Jeffrey S. Bland is an officer and director of Nu-Day Enterprises, Inc., and of HealthComm, Inc. He formulates, directs and controls the acts and practices of these corporations. At all times material herein, respondent Jeffrey S. Bland has formulated, directed and controlled the acts and practices of Nu-Day Enterprises, Inc., and HealthComm, Inc., including the acts and practices herein after set forth. Respondent Jeffrey S. Bland's address is the same as that of the corporate respondents Nu-Day Enterprises, Inc., and HealthComm, Inc.

PAR. 2. Respondents have been engaged in the business of offering for sale, selling, advertising, or distributing dietary programs and food products, as food is defined in Section 15 of the Federal Trade Commission Act, such as the Nu-Days 1 4 1 4 8 1582 1619 83 34 96.236511 Diets 1 4 1 4 9 1693 1620 200 45 87.864830 Program, the Nu-Days 1 4 1 5 2 835 1676 97 34 96.933197 Meals 1 4 1 5 3 956 1676 249 46 96.400833 Replacements 1 4 1 5 4 1228 1677 178 34 90.359985 Formula and Nu-Days 1 4 1 5 7 1708 1679 174 34 91.973686 Herbulk food products; and have participated in, and assisted others in the creation and dissemination to the public of 30 minute, program-length television advertisements for such food products. PAR. 3. Respondents’ acts and practices, including those alleged in this complaint, have been, and are, in or affecting commerce, as commerce is defined in the Federal Trade Commission Act. PAR. 4. Typical and illustrative of the statements made in respondents’ advertisements, but not including all such statements or advertisements, are the following statements from the television commercial entitled Thes 1 4 3 4 4 1164 2256 138 35 96.792908 Perfect5 1 4 3 4 5 1316 2256 114 35 92.999992 Diet: (a) Amazing5 1 5 1 1 3 967 2374 60 24 96.985054 true5 1 5 1 1 4 1042 2370 100 28 96.654518 stories5 1 5 1 1 5 1158 2370 33 28 96.747421 of5 1 5 1 1 6 1203 2370 104 37 96.721909 peoples 1 5 1 1 7 1322 2370 55 28 96.996796 likes 1 5 1 1 8 1393 2370 130 37 96.982925 yourself5 1 5 1 1 9 1535 2370 93 37 96.654465 losing5 1 5 1 1 10 1644 2370 46 34 96.982010 20,5 1 5 1 1 11 1707 2371 45 33 96.596031 30,5 1 5 1 1 12 1768 2371 38 29 96.752426 505 1 5 1 1 13 1821 2371 113 37 96.410347 pounds5 1 5 1 1 14 1950 2380 32 20 95.936386 or4 1 5 1 2 0 645 2416 575 37 -1 5 1 5 1 2 1 645 2425 89 24 96.574257 more,5 1 5 1 2 2 748 2416 100 37 96.590263 safely,5 1 5 1 2 3 861 2416 117 37 96.590263 quickly5 1 5 1 2 4 991 2417 54 28 96.898979 ands 1 5 1 2 5 1057 2417 163 36 87.907036 naturally. (b) What5 1 5 2 1 3 903 2464 45 27 93.300026 thes 1 5 2 1 4 959 2464 124 36 93.095764 Nu-Days 1 5 2 1 5 1094 2472 130 28 96.922203 programs 1 5 2 1 6 1237 2464 98 28 96.949066 allows5 1 5 2 1 7 1346 2472 32 20 96.880623 us5 1 5 2 1 8 1390 2469 28 23 96.880623 to5 1 5 2 1 9 1429 2464 37 28 96.964874 do5 1 5 2 1 10 1478 2464 23 28 96.924713 is5 1 5 2 1 11 1513 2469 28 23 96.512383 to5 1 5 2 1 12 1552 2469 65 23 96.392746 tune5 1 5 2 1 13 1629 2473 37 28 96.637817 up5 1 5 2 1 14 1676 2465 57 28 93.295212 that5 1 5 2 1 15 1744 2464 235 38 93.054718 heat-producing4 1 5 2 2 0 645 2509 1335 37 -1 5 1 5 2 2 1 645 2510 163 36 96.722641 machinery5 1 5 2 2 2 820 2518 31 20 97.014076 so5 1 5 2 2 3 862 2510 57 28 96.943321 that5 1 5 2 2 4 928 2510 46 28 96.518295 thes 1 5 2 2 5 984 2509 40 29 96.216698 fats 1 5 2 2 6 1033 2509 24 29 96.216698 is5 1 5 2 2 7 1068 2515 48 23 96.967239 not5 1 5 2 2 8 1126 2510 93 28 96.952591 stored5 1 5 2 2 9 1229 2510 45 28 96.463463 for5 1 5 2 2 10 1283 2519 15 19 93.540276 a5 1 5 2 2 11 1308 2510 77 36 93.540276 rainy5 1 5 2 2 12 1396 2511 55 35 96.805496 days 1 5 2 2 13 1462 2511 56 27 97.004845 that5 1 5 2 2 14 1528 2519 85 20 96.644753 never5 1 5 2 2 15 1623 2519 106 20 96.623207 comes.5 1 5 2 2 16 1750 2512 111 32 96.648460 Rather,5 1 5 2 2 17 1873 2511 41 28 96.615768 it's5 1 5 2 2 18 1926 2512 54 27 96.865364 lost4 1 5 2 3 0 645 2556 1334 37 -1 5 1 5 2 3 1 645 2564 29 20 95.914719 as5 1 5 2 3 2 686 2557 75 35 95.914719 body5 1 5 2 3 3 772 2556 64 28 93.295555 heat5 1 5 2 3 4 846 2572 23 4 93.212013 --5 1 5 2 3 5 881 2556 54 28 96.438454 ands 1 5 2 3 6 946 2557 56 27 96.438454 that5 1 5 2 3 7 1012 2556 22 28 96.768677 is5 1 5 2 3 8 1046 2557 74 27 96.945503 what5 1 5 2 3 9 1131 2565 44 19 96.459129 we5 1 5 2 3 10 1185 2557 53 27 96.641266 calls 1 5 2 3 11 1249 2556 125 28 96.068329 efficient5 1 5 2 3 12 1385 2557 184 27 96.612175 metabolism.5 1 5 2 3 13 1592 2557 39 27 96.612175 So5 1 5 2 3 14 1642 2557 94 36 92.945488 really,5 1 5 2 3 15 1748 2557 86 28 86.388824 we’re5 1 5 2 3 16 1846 2557 133 36 96.008400 inducing4 1 5 2 4 0 644 2602 348 28 -1 5 1 5 2 4 1 644 2602 130 28 96.598434 efficient5 1 5 2 4 2 786 2602 206 28 92.607628 metabolism. (c) A5 1 5 3 1 3 841 2648 208 37 95.015236 revolutionary5 1 5 3 1 4 1060 2656 64 20 96.360176 news 1 5 3 1 5 1135 2653 119 32 96.207924 concepts 1 5 3 1 6 1265 2648 27 28 96.352303 in5 1 5 3 1 7 1304 2648 104 37 96.302383 weights 1 5 3 1 8 1418 2649 66 28 96.749626 loss.5 1 5 3 1 9 1506 2650 25 27 96.121223 A5 1 5 3 1 10 1543 2649 56 28 96.437279 diets 1 5 3 1 11 1610 2650 57 27 96.532761 that5 1 5 3 1 12 1678 2650 121 36 96.532761 actually5 1 5 3 1 13 1810 2650 87 27 96.770897 raises5 1 5 3 1 14 1908 2659 71 27 96.690331 your4 1 5 3 2 0 644 2694 1332 38 -1 5 1 5 3 2 1 644 2694 189 33 96.424431 metabolism,5 1 5 3 2 2 845 2695 118 36 96.424431 causing5 1 5 3 2 3 976 2703 70 28 96.705101 yours 1 5 3 2 4 1058 2695 77 36 96.870918 body5 1 5 3 2 5 1147 2700 28 22 97.008217 to5 1 5 3 2 6 1187 2695 71 27 96.995384 burns 1 5 3 2 7 1270 2695 46 27 96.834106 offs 1 5 3 2 8 1325 2704 101 19 96.781006 excess5 1 5 3 2 9 1438 2695 48 33 96.975136 fat,5 1 5 3 2 10 1499 2695 126 36 96.945236 quickly,5 1 5 3 2 11 1638 2695 91 36 96.713707 safely5 1 5 3 2 12 1742 2696 55 27 97.003510 ands 1 5 3 2 13 1810 2696 147 36 93.287575 naturally.5 1 5 3 2 14 1972 2719 4 6 89.342957 .4 1 5 3 3 0 646 2740 1332 39 -1 5 1 5 3 3 1 646 2764 23 6 78.224510 ..5 1 5 3 3 2 691 2741 75 29 96.883209 Now5 1 5 3 3 3 778 2741 54 29 93.209900 this5 1 5 3 3 4 844 2741 78 29 43.289459 diet's5 1 5 3 3 5 934 2740 139 30 96.968399 available5 1 5 3 3 6 1084 2746 29 24 96.583214 to5 1 5 3 3 7 1125 2749 56 29 96.827866 you5 1 5 3 3 8 1195 2746 26 24 96.995697 at5 1 5 3 3 9 1232 2741 86 29 96.293762 homes 1 5 3 3 10 1330 2741 118 29 96.807823 without5 1 5 3 3 11 1461 2750 14 20 96.871147 a5 1 5 3 3 12 1487 2742 120 28 96.589066 doctor's5 1 5 3 3 13 1620 2742 186 37 93.264740 prescriptions 1 5 3 3 14 1819 2759 24 4 90.767624 --5 1 5 3 3 15 1852 2743 59 36 96.847351 just5 1 5 3 3 16 1923 2743 55 28 94.861008 call NU-DAY ENTERPRISES, INC., ET AL. 481 479 Complaint 1/800/225-6400, toll free -- that's 1/800/225-6400. A 14-day supply of Nu-Day is only $59.95 and comes with a 100 % money back guarantee." (d) So5 1 2 2 1 3 794 707 44 20 96.827744 we5 1 2 2 1 4 850 700 68 32 96.682175 said,5 1 2 2 1 5 931 708 56 29 96.682175 you5 1 2 2 1 6 1000 701 94 32 96.814774 know,5 1 2 2 1 7 1106 710 44 20 96.675499 we5 1 2 2 1 8 1162 703 71 27 96.675499 needs 1 2 2 1 9 1246 707 27 24 96.898079 to5 1 2 2 1 10 1285 704 86 35 96.868820 really5 1 2 2 1 11 1383 704 130 28 96.633926 examines 1 2 2 1 12 1525 705 74 28 96.911255 what5 1 2 2 1 13 1611 705 23 29 97.007545 is5 1 2 2 1 14 1646 707 89 36 96.086075 going5 1 2 2 1 15 1747 716 37 19 92.510666 on5 1 2 2 1 16 1796 707 117 37 92.510666 physio-4 1 2 2 2 0 577 745 1336 38 -1 5 1 2 2 2 1 577 745 147 36 96.208954 logically.5 1 2 2 2 2 750 746 85 28 96.520676 What5 1 2 2 2 3 847 746 85 29 96.560577 about5 1 2 2 2 4 946 746 70 30 96.560577 theirs 1 2 2 2 5 1029 748 199 29 96.504677 metabolism?5 1 2 2 2 6 1252 749 61 29 96.504677 Cans 1 2 2 2 7 1327 758 44 21 96.915504 we5 1 2 2 2 8 1383 750 52 29 95.495384 rolls 1 2 2 2 9 1449 751 73 29 96.597908 backs 1 2 2 2 10 1534 752 72 28 96.998856 theirs 1 2 2 2 11 1618 752 182 30 96.686363 metabolism5 1 2 2 2 12 1813 758 29 24 96.869888 to5 1 2 2 2 13 1855 754 58 29 96.618584 that4 1 2 2 3 0 576 792 1335 42 -1 5 1 2 2 3 1 576 799 131 28 96.752495 younger5 1 2 2 3 2 727 800 52 28 96.371391 ages 1 2 2 3 3 799 792 84 28 96.371391 when5 1 2 2 3 4 902 793 66 36 96.961456 they5 1 2 2 3 5 987 794 86 28 96.470589 could5 1 2 2 3 6 1093 800 44 22 96.285355 eats 1 2 2 3 7 1156 803 79 20 96.340523 more5 1 2 2 3 8 1255 796 54 28 96.344421 ands 1 2 2 3 9 1328 797 66 36 96.416458 gains 1 2 2 3 10 1414 797 56 28 96.889534 less5 1 2 2 3 11 1491 798 122 36 95.811462 weight?5 1 2 2 3 12 1650 800 67 28 95.811462 Ands 1 2 2 3 13 1736 800 58 28 96.081612 that5 1 2 2 3 14 1813 800 46 29 96.643066 led5 1 2 2 3 15 1878 809 33 21 96.194855 us4 1 2 2 4 0 575 836 1336 48 -1 5 1 2 2 4 1 575 836 156 39 96.802231 ultimately5 1 2 2 4 2 743 846 36 21 91.859352 on5 1 2 2 4 3 792 848 15 19 91.859352 a5 1 2 2 4 4 820 839 96 28 96.794197 search5 1 2 2 4 5 928 839 94 30 96.903221 which5 1 2 2 4 6 1033 839 102 39 93.835091 finally5 1 2 2 4 7 1147 842 110 28 96.792145 arrived5 1 2 2 4 8 1270 848 26 23 96.046783 at5 1 2 2 4 9 1308 842 54 29 93.306068 this5 1 2 2 4 10 1375 843 124 38 93.041466 Nu-Days 1 2 2 4 11 1511 845 120 36 96.966339 products 1 2 2 4 12 1642 846 55 28 97.003822 ands 1 2 2 4 13 1708 855 133 29 96.939339 programs 1 2 2 4 14 1853 847 58 29 96.775642 that4 1 2 2 5 0 576 884 1335 46 -1 5 1 2 2 5 1 576 891 43 21 88.858849 we5 1 2 2 5 2 636 892 46 20 97.005386 ares 1 2 2 5 3 699 884 89 37 96.509094 going5 1 2 2 5 4 805 890 29 23 96.854340 to5 1 2 2 5 5 850 886 36 27 96.997871 be5 1 2 2 5 6 901 886 108 37 97.007996 talking5 1 2 2 5 7 1025 887 86 28 93.294296 about5 1 2 2 5 8 1127 904 24 4 88.755478 --5 1 2 2 5 9 1167 888 57 28 96.429893 that5 1 2 2 5 10 1240 889 10 27 96.130310 I5 1 2 2 5 11 1266 889 113 29 96.130310 believes 1 2 2 5 12 1394 890 59 33 96.962608 has,5 1 2 2 5 13 1471 891 46 33 94.412247 uh,5 1 2 2 5 14 1534 892 88 36 97.004097 really5 1 2 2 5 15 1638 893 134 28 96.722816 heralded5 1 2 2 5 16 1789 902 16 20 96.964645 a5 1 2 2 5 17 1820 894 91 36 95.203506 major4 1 2 2 6 0 575 929 1334 47 -1 5 1 2 2 6 1 575 929 209 39 96.815437 breakthrough5 1 2 2 6 2 798 932 28 28 96.992256 in5 1 2 2 6 3 840 932 152 29 96.883011 metabolic5 1 2 2 6 4 1006 939 200 31 93.279259 management5 1 2 2 6 5 1219 951 23 4 92.964813 --5 1 2 2 6 6 1255 935 108 37 96.770126 getting5 1 2 2 6 7 1375 944 16 21 92.196228 a5 1 2 2 6 8 1402 945 104 29 92.196228 persons 1 2 2 6 9 1519 946 34 20 95.355217 so5 1 2 2 6 10 1566 938 57 28 96.849464 that5 1 2 2 6 11 1636 939 71 28 96.296814 theirs 1 2 2 6 12 1718 940 78 36 96.816170 body5 1 2 2 6 13 1809 941 58 28 94.287735 will5 1 2 2 6 14 1881 941 28 28 96.928421 in4 1 2 2 7 0 573 976 963 44 -1 5 1 2 2 7 1 573 976 57 29 97.003258 facts 1 2 2 7 2 643 977 79 28 96.965469 works 1 2 2 7 3 734 977 46 28 96.987022 thes 1 2 2 7 4 793 986 63 29 96.906120 ways 1 2 2 7 5 869 978 20 28 96.827026 it5 1 2 2 7 6 901 978 102 29 95.933502 should5 1 2 2 7 7 1016 984 28 24 95.933502 to5 1 2 2 7 8 1056 980 136 29 96.856720 maintains 1 2 2 7 9 1204 989 103 29 96.582237 proper5 1 2 2 7 10 1317 983 77 36 96.850693 body5 1 2 2 7 11 1407 983 129 37 96.754089 weight. (e) “In the cell we have different little organelles, these are these little things like the nucleus of the cell in the center, which is like the brain of the cell. These little pink units are called mitochondria -- and they're like the lungs or spark plugs of the cell -they burn up the energy -- and you know, as a person tends to age, what happens is these mitochondria take a siesta, they go to sleep and they don't effectively convert food to energy anymore. We tend to store that energy as fat for a rainy day that never comes. So really what the Nu-Day program -- is to try to help activate those mitochondria. Get them to work right. Get them back to the point where they will convert efficiently food and energy and burn off that fat." (f) “and well in excess of 100,000 clinical trials have been evaluated with people that have been on this diet and the responses that we are getting here are remarkable (g) Standing in front of three canisters, a small box, an audio tape and a booklet, the announcer describes the product: Developed5 1 2 5 2 7 1373 1634 36 35 97.014900 by5 1 2 5 2 8 1426 1634 47 28 96.861725 Dr.5 1 2 5 2 9 1490 1635 108 36 96.610558 Jeffrey5 1 2 5 2 10 1615 1636 100 33 96.634048 Bland,5 1 2 5 2 11 1732 1646 55 19 96.847061 ones 1 2 5 2 12 1804 1638 34 27 96.287544 of5 1 2 5 2 13 1850 1638 46 29 96.403801 thea 1 2 5 3 0 561 1671 1335 49 -1 5 1 2 5 3 1 561 1671 120 28 90.027390 nation's5 1 2 5 3 2 696 1672 113 37 96.534515 leading5 1 2 5 3 3 824 1674 162 29 93.303268 nutritional5 1 2 5 3 4 1000 1675 195 35 92.704865 biochemists,5 1 2 5 3 5 1210 1677 45 29 93.179565 thes 1 2 5 3 6 1270 1677 125 38 92.589401 Nu-Days 1 2 5 3 7 1409 1680 153 29 96.966919 metabolic5 1 2 5 3 8 1576 1683 106 36 95.273788 weights 1 2 5 3 9 1695 1690 201 30 96.705269 management4 1 2 5 4 0 561 1718 1334 46 -1 5 1 2 5 4 1 561 1722 108 30 83.121452 Systems 1 2 5 4 2 685 1718 24 27 96.954330 is5 1 2 5 4 3 725 1727 34 19 96.744713 an5 1 2 5 4 4 775 1727 68 28 96.695702 easy5 1 2 5 4 5 859 1725 28 22 96.901352 to5 1 2 5 4 6 902 1728 60 24 96.600128 use,5 1 2 5 4 7 977 1725 132 33 96.836952 two-parts 1 2 5 4 8 1124 1731 140 27 96.141396 program.5 1 2 5 4 9 1293 1725 80 32 96.944702 First,5 1 2 5 4 10 1389 1725 45 28 96.887718 thes 1 2 5 4 11 1450 1726 78 29 96.608276 Meals 1 2 5 4 12 1543 1728 205 36 96.377083 Replacements 1 2 5 4 13 1762 1730 133 29 96.415276 Formula4 1 2 5 5 0 559 1763 1335 50 -1 5 1 2 5 5 1 559 1763 136 35 96.508430 provides5 1 2 5 5 2 714 1773 72 27 96.735031 yours 1 2 5 5 3 805 1766 76 36 97.016960 body5 1 2 5 5 4 900 1767 67 27 95.596489 with5 1 2 5 5 5 986 1767 36 28 95.596489 all5 1 2 5 5 6 1042 1767 34 29 96.896332 its5 1 2 5 5 7 1096 1768 77 29 96.962982 basics 1 2 5 5 8 1192 1770 162 28 96.898300 nutritional5 1 2 5 5 9 1373 1772 96 32 95.697670 needs,5 1 2 5 5 10 1489 1773 83 36 95.697670 using5 1 2 5 5 11 1591 1774 46 28 96.904678 thes 1 2 5 5 12 1655 1775 113 36 96.303711 highest5 1 2 5 5 13 1786 1776 108 37 96.303711 quality4 1 2 5 6 0 559 1808 1333 50 -1 5 1 2 5 6 1 559 1808 175 37 96.898361 ingredients5 1 2 5 6 2 751 1811 149 29 94.734421 available.5 1 2 5 6 3 934 1812 123 33 93.290741 Second,5 1 2 5 6 4 1076 1814 125 37 91.908493 Nu-Days 1 2 5 6 5 1219 1815 136 34 92.278381 Herbulk,5 1 2 5 6 6 1372 1818 46 27 96.781425 thes 1 2 5 6 7 1436 1820 106 27 96.781425 natural5 1 2 5 6 8 1561 1821 122 36 96.360031 appetite5 1 2 5 6 9 1701 1827 191 31 96.476189 suppressant,4 1 2 5 7 0 558 1855 1335 54 -1 5 1 2 5 7 1 558 1855 131 36 96.812477 provides5 1 2 5 7 2 700 1856 71 29 96.966255 fibers 1 2 5 7 3 782 1857 53 28 96.627937 ands 1 2 5 7 4 847 1858 124 29 96.913391 cleanses5 1 2 5 7 5 983 1860 45 28 96.925064 thes 1 2 5 7 6 1039 1860 136 36 96.951958 digestive5 1 2 5 7 7 1187 1867 112 30 92.829437 system.5 1 2 5 7 8 1321 1863 122 37 92.829437 Nu-Days 1 2 5 7 9 1455 1866 125 28 95.327377 contains5 1 2 5 7 10 1593 1875 36 20 95.327377 no5 1 2 5 7 11 1640 1867 121 29 96.364471 narcotics 1 2 5 7 12 1774 1865 119 44 96.042473 appetite4 1 2 5 8 0 558 1904 1334 47 -1 5 1 2 5 8 1 558 1908 203 31 96.337395 suppressants.5 1 2 5 8 2 781 1904 43 28 91.962921 It's5 1 2 5 8 3 835 1906 156 35 96.611931 composed5 1 2 5 8 4 1002 1905 34 29 96.904144 of5 1 2 5 8 5 1047 1906 53 29 96.914391 1005 1 2 5 8 6 1111 1913 113 30 96.934616 percent5 1 2 5 8 7 1234 1909 106 28 96.403130 natural5 1 2 5 8 8 1351 1909 169 37 96.403130 ingredients5 1 2 5 8 9 1531 1912 55 28 96.121170 ands 1 2 5 8 10 1597 1912 107 30 59.706669 doesn't5 1 2 5 8 11 1714 1915 112 28 96.237999 contains 1 2 5 8 12 1837 1923 55 28 96.420860 any4 1 2 5 9 0 557 1948 1335 50 -1 5 1 2 5 9 1 557 1948 93 37 96.196404 drugs,5 1 2 5 9 2 661 1949 158 29 96.469093 stimulants5 1 2 5 9 3 829 1959 32 20 96.149445 or5 1 2 5 9 4 869 1953 211 34 95.643707 preservatives.5 1 2 5 9 5 1099 1953 60 29 93.306236 Thes 1 2 5 9 6 1168 1954 124 38 93.020538 Nu-Days 1 2 5 9 7 1302 1956 151 29 97.005890 metabolic5 1 2 5 9 8 1463 1957 105 37 96.725037 weights 1 2 5 9 9 1578 1965 197 31 96.685616 management5 1 2 5 9 10 1786 1966 106 32 96.407013 system4 1 2 5 10 0 557 1995 1333 49 -1 5 1 2 5 10 1 557 1995 23 28 96.703636 is5 1 2 5 10 2 592 1995 71 37 96.083260 fully5 1 2 5 10 3 675 1997 153 36 96.488060 explained5 1 2 5 10 4 839 1998 29 28 95.661972 in5 1 2 5 10 5 880 1998 54 29 95.661972 this5 1 2 5 10 6 946 2000 153 36 96.705742 complete,5 1 2 5 10 7 1111 2009 68 28 96.885727 easy5 1 2 5 10 8 1191 2006 29 23 96.873047 to5 1 2 5 10 9 1232 2001 101 29 96.125687 follows 1 2 5 10 10 1345 2003 116 29 96.305183 booklets 1 2 5 10 11 1473 2004 95 29 96.875359 which5 1 2 5 10 12 1580 2006 61 29 96.979126 also5 1 2 5 10 13 1654 2007 80 35 96.668617 gives5 1 2 5 10 14 1747 2016 57 28 96.753998 you5 1 2 5 10 15 1816 2009 74 28 96.423706 meal4 1 2 5 11 0 556 2043 1334 46 -1 5 1 2 5 11 1 556 2043 177 36 95.508987 Suggestions5 1 2 5 11 2 745 2052 32 20 96.918411 so5 1 2 5 11 3 787 2052 57 28 97.006477 you5 1 2 5 11 4 856 2052 50 22 96.913185 cans 1 2 5 11 5 918 2045 83 38 96.825439 enjoys 1 2 5 11 6 1006 2039 14 54 96.409538 a5 1 2 5 11 7 1039 2046 136 30 96.031441 delicious5 1 2 5 11 8 1186 2048 104 38 96.480309 variety5 1 2 5 11 9 1302 2049 33 29 96.928123 of5 1 2 5 11 10 1343 2049 54 29 96.950348 real5 1 2 5 11 11 1409 2050 91 30 96.489212 foods.5 1 2 5 11 12 1522 2052 71 28 96.600113 Also5 1 2 5 11 13 1604 2052 53 29 96.973480 this5 1 2 5 11 14 1669 2054 84 28 96.312157 audio5 1 2 5 11 15 1763 2060 127 29 96.073303 cassette,4 1 2 5 12 0 556 2088 1334 50 -1 5 1 2 5 12 1 556 2088 91 29 96.988197 which5 1 2 5 12 2 659 2090 122 29 96.988197 features5 1 2 5 12 3 791 2091 48 28 96.802872 Dr.5 1 2 5 12 4 852 2091 91 29 95.745056 Bland5 1 2 5 12 5 954 2100 30 21 95.745056 as5 1 2 5 12 6 995 2093 36 29 96.902504 he5 1 2 5 12 7 1042 2101 122 21 96.476341 answers5 1 2 5 12 8 1176 2095 46 28 96.476341 thes 1 2 5 12 9 1232 2100 74 24 96.914177 most5 1 2 5 12 10 1316 2097 165 37 96.491402 commonly5 1 2 5 12 11 1492 2098 87 29 97.005066 asked5 1 2 5 12 12 1590 2100 145 36 96.387978 questions5 1 2 5 12 13 1746 2100 34 29 96.387978 of5 1 2 5 12 14 1787 2101 103 37 96.158165 people4 1 2 5 13 0 555 2136 448 39 -1 5 1 2 5 13 1 555 2136 83 36 96.312332 using5 1 2 5 13 2 651 2136 45 28 93.264671 thes 1 2 5 13 3 709 2137 125 36 91.737869 Nu-Days 1 2 5 13 4 846 2139 157 36 95.002380 program. PAR. 5. Through the use of the statements referred to in paragraph four, and other statements not specifically set forth herein, respondents have represented, directly or by implication, that: (a) The Nu-Days 1 4 1 1 4 998 2479 83 36 96.736923 Diets 1 4 1 1 5 1099 2481 197 46 85.718391 Program, Nu-Days 1 4 1 1 7 1510 2485 99 36 96.709869 Meals 1 4 1 1 8 1628 2486 257 46 96.589691 Replacement4 1 4 1 2 0 549 2536 1336 48 -1 5 1 4 1 2 1 549 2536 192 41 91.138680 Formula,”5 1 4 1 2 2 769 2537 122 35 87.933807 and/or5 1 4 1 2 3 907 2538 171 46 87.933807 Nu-Day Herbulk" alter human metabolism so that the body will burn more calories than the body was burning prior to following the program or eating the food products. Complaint 115 F.T.C.

(b) The Nu-Days 1 3 1 1 4 1089 616 83 36 96.990677 Diets 1 3 1 1 5 1189 617 199 46 93.176506 Program, Nu-Days 1 3 1 1 7 1600 622 99 35 96.561310 Meals 1 3 1 1 8 1717 623 258 45 96.655281 Replacement4 1 3 1 2 0 639 671 1335 49 -1 5 1 3 1 2 1 639 671 194 42 80.888741 Formula, and/or Nu-Days 1 3 1 2 4 1174 676 175 35 91.928169 Herbulk alter human metabolism so that weight lost while following the program or eating the food products will not return when caloric intake increases. (c) The Nu-Days 1 3 2 1 4 1084 851 85 35 96.678154 Diets 1 3 2 1 5 1186 851 197 46 93.206238 Program, Nu-Days 1 3 2 1 7 1597 856 99 35 96.908051 Meals 1 3 2 1 8 1714 857 258 45 96.593704 Replacement4 1 3 2 2 0 636 905 1334 49 -1 5 1 3 2 2 1 636 905 197 41 91.468147 Formula, and/or Nu-Days 1 3 2 2 4 1194 909 177 36 92.386703 Herbulk alter the mitochondria in the body's cells so that the cells convert more food into energy. (d) The Nu-Days 1 3 3 1 4 1083 1024 85 36 96.544228 Diets 1 3 3 1 5 1184 1025 198 46 92.999207 Program, Nu-Days 1 3 3 1 7 1595 1029 99 36 96.595352 Meals 1 3 3 1 8 1712 1030 258 46 96.679070 Replacement4 1 3 3 2 0 634 1080 1335 54 -1 5 1 3 3 2 1 634 1080 195 42 89.591171 Formula, and/or Nu-Days 1 3 3 2 4 1171 1085 175 35 92.281204 Herbulk prevent the body's metabolism from slowing down to the level that it would reach on any other diet involving similar caloric intake.

PAR. 6. In truth and in fact:

(a) The Nu-Days 1 5 1 1 4 1078 1434 83 35 96.723717 Diets 1 5 1 1 5 1178 1435 198 45 87.657944 Program, Nu-Days 1 5 1 1 7 1589 1438 98 35 96.902168 Meals 1 5 1 1 8 1706 1439 258 45 96.839622 Replacement4 1 5 1 2 0 629 1489 1334 48 -1 5 1 5 1 2 1 629 1489 192 42 92.127350 Formula, and/or Nu-Days 1 5 1 2 4 1168 1493 174 35 91.609772 Herbulk do not alter human metabolism so that the body will burn more calories than the body was burning prior to following the program or eating the food products. (b) The Nu-Days 1 5 2 1 4 1076 1667 84 35 96.913300 Diets 1 5 2 1 5 1176 1668 197 45 90.061165 Program, Nu-Days 1 5 2 1 7 1586 1671 100 34 96.087036 Meals 1 5 2 1 8 1703 1671 258 45 96.087036 Replacement4 1 5 2 2 0 626 1722 1335 47 -1 5 1 5 2 2 1 626 1722 194 40 90.185371 Formula, and/or Nu-Days 1 5 2 2 4 1162 1725 176 35 88.622543 Herbulk do not alter human metabolism so that weight lost while following the program or eating the food products will not return when caloric intake increases. (c) The Nu-Days 1 5 3 1 4 1072 1899 84 35 96.797531 Diets 1 5 3 1 5 1172 1899 198 45 79.438126 Program, Nu-Days 1 5 3 1 7 1584 1902 98 36 96.759857 Meals 1 5 3 1 8 1701 1903 258 46 96.086990 Replacement4 1 5 3 2 0 624 1955 1333 47 -1 5 1 5 3 2 1 624 1955 194 41 95.230972 Formula, and/or Nu-Days 1 5 3 2 4 1157 1958 176 35 91.800018 Herbulk do not alter the mitochondria in the body's cells so that those cells convert more food into energy. Therefore, the representations set forth in paragraph five (a) through five (c) were, and are, false and misleading. PAR. 7. Through the use of the statements set forth in paragraph four, and others not specifically set forth herein, respondents have represented, directly or by implication, that, at the time of making the representations set forth in paragraph five (a) through five (d), respondents possessed and relied upon a reasonable basis for making those representations.

PAR. 8. In truth and in fact, at the time of making the representations set forth in paragraph five (a) through five (d) respondents did not possess and rely upon a reasonable basis for making those NU-DAY ENTERPRISES, INC., ET AL. 483 479 Complaint representations. Therefore, the representation set forth in paragraph seven was, and is, false and misleading.

PAR. 9. Through the use of the statements set forth in paragraph four, and others not specifically set forth herein, respondents have represented, directly or by implication, that the representations referred to in paragraph five (a) through five (d) are substantiated by 100,000 clinical trials conducted, in a scientifically or medically acceptable manner, on patients specifically following the Nu-Day diet program and/or taking the Nu-Day product or a substantially similar product.

PAR. 10. In truth and in fact, the representations referred to in paragraph five (a) through five (d) are not substantiated by 100,000 clinical trials conducted, in a scientifically or medically acceptable manner, on patients specifically following the Nu-Day diet program and/or taking the Nu-Day product or a substantially similar product. Therefore, the representation set forth in paragraph nine was, and is, false and misleading.

PAR. 11. By and through Thes 1 3 4 1 7 1261 1614 138 35 96.324982 Perfect5 1 3 4 1 8 1417 1614 100 36 95.824722 Diet television show, respondents have represented, directly or by implication, that Thea 1 3 4 3 0 526 1728 1333 48 -1 5 1 3 4 3 1 526 1728 139 35 96.577011 Perfect5 1 3 4 3 2 689 1729 102 35 88.664139 Diet television show is an independent consumer news program that uses interviews to report on its discovery of the Nu-Day Diet.

PAR. 12. In truth and in fact, Thes 1 3 5 1 9 1290 1904 137 35 96.494804 Perfect5 1 3 5 1 10 1440 1905 100 34 95.557434 Diet television show is not an independent consumer news program. Thes 1 3 5 2 9 1599 1963 140 35 96.774818 Perfect5 1 3 5 2 10 1755 1963 101 35 96.473595 Diet television show is a paid commercial advertisement. Therefore, the representation set forth in paragraph eleven was, and is, false and misleading.

PAR. 13. The dissemination of the aforesaid false and misleading representations by respondents, as alleged in this complaint, constitute deceptive acts or practices in or affecting commerce and the making of false advertisements in violation of Sections 5(a) and 12 of the Federal Trade Commission Act.

Commissioner Yao not participating.

Decision and Order 115 F.T.C.

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 furnished thereafter with a copy of a draft of complaint which the Chicago Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondents with violation of the Federal Trade Commission Act; and The respondents, their attorneys, and counsel for the Commission 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 signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission's Rules; and The Commission having thereafter considered the matter and having determined that it had 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 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent Nu-Day Enterprises, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Washington, with its office and principal place of business located at 5800 Soundview Dr., N.W., in the City of Gig Harbor, State of ‘Washington.

Respondent HealthComm, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Washington, with its office and principal place of business located at 5800 Soundview Dr., N.W. in the City of Gig Harbor, State of Washington.

NU-DAY ENTERPRISES, INC., ET AL. 485 479 Decision and Order Respondent Jeffrey S. Bland, Ph.D., is an officer and director of Nu-Day Enterprises, Inc., and HealthComm, Inc. His address is the same as that of the corporate respondents. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondents, and the proceeding is in the public interest.

ORDER I.

It is ordered, That respondents Nu-Day Enterprises, Inc., a corporation, its successors and assigns, and its officers, HealthComm, Inc., a corporation, its successors and assigns, and its officers, and Jeffrey S. Bland, individually and as an officer of Nu-Day Enterprises, Inc., and HealthComm, Inc., and respondents' agents, representatives, and employees, directly or through any corporation, subsidiary, division or other device, in connection with the manufacturing, advertising, labeling, packaging, offering for sale, selling, or distributing of the dietary program or food product (also known as the Nu-Days 1 5 1 10 3 844 1791 199 45 92.934113 Program, Nu-Days 1 5 1 10 5 1277 1792 99 35 95.753098 Meals 1 5 1 10 6 1404 1792 257 45 95.753098 Replacements 1 5 1 10 7 1687 1794 196 40 96.078125 Formula, Nu-Days 1 5 1 11 2 740 1848 186 42 87.411644 Herbulk, or any other substantially similar dietary program or food product in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication: A. That any such program and/or product alters human metabolism so that the body will burn more calories than the body was burning prior to following the program or eating the product; B. That any such program and/or product alters human metabolism so that weight lost while following the program or eating the product will not return when caloric intake increases; or C. That any such program and/or product alters the mitochondria in the body's cells so that those cells convert more food into energy. For purposes of this Part I a substantially5 1 7 1 1 9 1579 2665 141 34 96.436302 similar5 1 7 1 1 10 1745 2665 139 44 96.306595 dietary4 1 7 1 2 0 545 2722 1339 46 -1 5 1 7 1 2 1 545 2734 177 33 96.325691 programs 1 7 1 2 2 739 2734 45 24 96.121719 or5 1 7 1 2 3 790 2722 97 45 96.221123 foods 1 7 1 2 4 897 2722 173 45 95.015923 product shall mean any program or product that involves reduction of caloric intake to between eight hundred and one Decision and Order 115 F.T.C.

thousand two hundred (1,200) calories and the consumption of food supplements consisting of powdered protein and bulking agents or containing chromium or any chromium-niacin complex. Il.

It is further ordered, That respondents Nu-Day Enterprises, Inc., a corporation, its successors and assigns, and its officers, Health- Comm, Inc., a corporation, its successors and assigns, and its officers, and Jeffrey S. Bland, individually and as an officer of Nu-Day Enterprises, Inc., and Health Comm, Inc., and respondents' agents, representatives, and employees, directly or through any corporation, subsidiary, division or other device, in connection with manufacturing, advertising, labeling, packaging, offering for sale, selling, or distributing of any dietary program or food product in or affecting commerce, as commerce and food are defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that any such program or product: A. Can or will alter human metabolism so that the body will burn more calories than the body was burning prior to following the program or eating the product;

B. Can or will alter human metabolism so that weight lost during a period of caloric restriction will not return when caloric intake increases; or C. Can or will alter the mitochondria in the body's cells so that the cells convert more food into energy;

D. Can or will prevent the body's metabolism from slowing down to the level that it would reach on any other diet involving similar caloric intake;

unless, at the time of making such representation, respondents possess and rely upon competent and reliable scientific evidence that substantiates the representation. Competent5 1 7 1 3 5 1549 2551 69 35 96.329887 ands 1 7 1 3 6 1635 2550 147 35 96.329887 reliable5 1 7 1 3 7 1800 2548 179 36 95.778862 scientific4 1 7 1 4 0 645 2607 1333 51 -1 5 1 7 1 4 1 645 2615 194 37 96.786308 evidence shall mean for purposes of this order such test, analysis, research, study, survey or other evidence conducted and evaluated in an objective manner by persons qualified to do so using procedures NU-DAY ENTERPRISES, INC., ET AL. 487 479 Decision and Order generally accepted by others in that profession or science to yield accurate and reliable results.

Il.

It is further ordered, That respondents, their successors and assigns, and their officers, agents, representatives and employees, directly or through any corporation, subsidiary division or other device, in connection with manufacturing, labeling, packaging, offering for sale, selling, distributing or advertising any food or weight control service or product in or affecting commerce, as ~ commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing, directly or by implication, that any such product or service can or will help any - consumers lose weight or maintain weight loss unless at the time of making such representation respondents possess and rely upon competent and reliable scientific evidence that substantiates the representation. Competent5 1 5 2 6 3 1111 1631 68 34 97.004456 ands 1 5 2 6 4 1198 1632 147 35 95.882362 reliable5 1 5 2 6 5 1364 1632 178 37 96.538338 scientific5 1 5 2 6 6 1561 1634 192 37 96.281273 evidence shall mean for purposes of this order such test, analysis, research, study, _ survey or other evidence conducted and evaluated in an objective manner by persons qualified to do so using procedures generally accepted by others in that profession or science to yield accurate and reliable results.

IV.

It is further ordered, That respondents, their successors and assigns, and their officers, agents, representatives and employees, directly or through any corporation, subsidiary division or other device, in connection with manufacturing, labeling, packaging, offering for sale any food, drug or device as defined in Section 15 of the Federal Trade Commission Act, 15 U.S.C. 55, selling, distributing or advertising any such product, in or affecting commerce, as “commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from making any representation, directly or by implication, regarding the performance, benefits, efficacy or safety of such food, drug or device unless, at the time of making such representation, respondents possess and rely upon a reasonable basis Decision and Order 115 F.T.C.

consisting of competent and reliable scientific evidence that substantiates the representation. Competent5 1 3 1 2 5 1570 688 69 35 96.235077 ands 1 3 1 2 6 1654 688 147 35 96.865265 reliable5 1 3 1 2 7 1816 687 179 35 96.745003 scientific4 1 3 1 3 0 661 746 1333 48 -1 5 1 3 1 3 1 661 749 193 36 96.272018 evidence shall mean for purposes of this order such test, analysis, research, study, survey or other evidence conducted and evaluated in an objective manner by persons qualified to do so using procedures generally accepted by others in that profession or science to yield accurate and reliable results.

V.

It is further ordered, That respondents, their successors and assigns, and their officers, agents, representatives and employees, directly or through any corporation, subsidiary division or other device, in connection with manufacturing, labeling, packaging, offering for sale, selling, distributing or advertising any dietary program or food product, in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting in any manner, directly or by implication, the purpose, content, sample, reliability, results or conclusions of any scientific test, research article, survey or any other scientific opinion or data.

Vi.

It is further ordered, That respondents, their successors and assigns, and their officers, agents, representatives and employees, directly or through any corporation, subsidiary division or other device, in connection with manufacturing, labeling, packaging, offering for sale, selling, distributing or advertising any service or product, in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, do forthwith cease and desist from creating, producing, selling, broadcasting, or disseminating, or assisting or encouraging others to create, produce, sell, broadcast, or disseminate:

A. Any commercial or other advertisement for any such product or service that misrepresents, directly or by implication, that it is an independent program and not a paid advertisement; NU-DAY ENTERPRISES, INC., ET AL. 489 479 Decision and Order B. Any commercial or other advertisement for any such product or service that is fifteen (15) minutes in length or longer or intended to fill a broadcasting or cablecasting time slot of fifteen (15) minutes in length or longer that does not display visually, in a clear and prominent manner, within the first thirty (30) seconds of the commercial and immediately before each presentation of ordering instructions for the product or service, the following disclosure: “THE PROGRAM YOU ARE WATCHING IS A PAID ADVERTISEMENT FOR [THE PRODUCT OR SERVICE]." Provided that, for purposes of this provision, the oral or visual presentations of a telephone number or address for viewers to contact to place an order for the product or service shall be deemed a presentation of ordering instructions so as to require the display of the disclosure provided herein.

VIO.

It is further ordered, That, on the date this order becomes final, respondents shall pay thirty thousand dollars ($30,000) to the Federal Trade Commission. Respondents shall make this payment by cashier's check or certified check made payable to the Federal Trade Commission. If the Commission determines that redress is wholly or partially impracticable or is otherwise unwarranted, any such funds shall be paid to the United States Treasury. Respondents shall be notified as to how the funds are disbursed, but shall have no right to counter the manner of distribution chosen by the Commission. VU.

It is further ordered, That respondents Nu-Day Enterprises, Inc., and HealthComm, Inc., shall for five (5) years following service of this order, notify the Commission at least thirty (30) days prior to any proposed change in the corporate respondents such as dissolution, assignment, or sale resulting in the emergence of a successor corporation, the creation or dissolution of subsidiaries or any other change in the corporation that may affect compliance obligations arising out of the order, or of any change in the positions or responsibilities of Decision and Order 115 F.T.C.

Dr. Jeffrey S. Bland in regard to any corporation or subsidiary of which he is an officer.

IX.

It is further ordered, That respondent Dr. Jeffrey S. Bland shall promptly notify the Commission of his discontinuance of his present business or employment and of his affiliation with a new business or employment engaged in the manufacturing, labeling, packaging, offering for sale, selling, distributing or advertising of any foods, dietary programs, or publications relating thereto, or the offering for sale, selling, distributing or advertising of any services relating to any foods or dietary programs, and, for a period of five (5) years from the date of service of this order, shall promptly notify the Commission of each affiliation with such new business or employment. Each such notice shall include his new business address and a statement of the nature of the business or employment in which he is newly engaged as well as a description of his duties and responsibilities in connection with the business or employment. The expiration of the notice provision of this paragraph shall not affect any other obligation arising under this order.

X.

It is further ordered, That, for at least four (4) years after the date of service of this order, respondents, their successors and assigns, shall maintain and upon request make available to the Federal Trade Commission for inspection and copying at a place designated by the Commission, A. All advertisements and promotional materials subject to this order;

B. All materials relied upon as substantiation for any representation subject to this order;

C. All test reports, studies, surveys, or other materials in respondents' possession or control at any time that contradict, qualify, or call into question any representation subject to this order or that contradict, qualify, or call into question the basis upon which respondents relied for any such representation; and NU-DAY ENTERPRISES, INC., ET AL. 49] 479 Decision and Order D. All other materials and records that relate to respondents compliance with this order.

XI.

It is further ordered, That respondents shall, within sixty (60) days after service 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.

Commissioner Yao not participating.

Complaint 115 F.T.C.