Body Wise International, Inc

Volume 120 · 120 F.T.C. 704

Citation: 120 F.T.C. 704
Docket: C-3617
Complaint: 1995-09-25
Decision: 1995-09-25
Document type: consent order
Case type: consumer protection
Statutes: FTC Act (section 5)
Industry: nutritional supplements
Outcome: consent order entered
Relief: cease_and_desist; affirmative_disclosure; recordkeeping; compliance_reporting; notice_to_customers
Order term (years): 20
Commission counsel: David M. Newman and Jeffrey A. Klurfeld
Respondent counsel: Robert Armstrong, Chicago, IL
Source: Original volume PDF
Original PDF: This decision as a PDF

deceptive advertising health claims endorsements

Cite this decision

Body Wise International, Inc, 120 F.T.C. 704 (1995). Consumer Law Library, https://consumerlawlibrary.org/decisions/v120-0048

Report an error in this record (decision id v120-0048)

Order status: dismissed_no_order. Sunset may be extended by the latest qualifying federal-court complaint alleging an order violation; complaints, dismissal/appeal outcomes, and respondent-specific extensions are not fully tracked.

Cited by 0 later FTC decisions

Cites

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Complaint 120 F.T.C.

IN THE MATTER OF

BODY WISE INTERNATIONAL, INC.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT

Docket C-3617. Complaint, Sept. 25, 1995--Decision, Sept. 25, 1995

This consent order prohibits, among other things, a California-based company from falsely representing that any nutritional supplement, food or drug contains any ingredient that can cause or contribute to achieving or maintaining weight loss without diet or exercise, and bars unsubstantiated weight-loss, weight-loss maintenance, cholesterol reduction, or other health benefit claims for such products. In addition, the consent order prohibits the deceptive use of consumer testimonials or professional endorsements, and requires clear disclosures of any financial connection between endorsers and the respondent or its products.

Appearances

For the Commission: David M. Newman and Jeffrey A. Klurfeld. For the respondent: Robert Armstrong, Chicago, IL.

COMPLAINT

The Federal Trade Commission, having reason to believe that Body Wise International, Inc., a Nevada corporation (hereinafter "Body Wise"), has violated the 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. Respondent Body Wise is a Nevada corporation with its principal office and place of business located at 6350 Palomar Oaks Court, Suite A, Carlsbad, California. PAR. 2. Respondent has advertised or otherwise promoted, offered for sale, sold and distributed nutritional supplements, including but not limited to Future Perfect, Right Choice AM, Right Choice PM and The Reshape Formula (hereinafter "weight loss products"), as weight loss products, through a multi-level network of distributors. Respondent has also advertised or otherwise promoted,

BODY WISE INTERNATIONAL, INC. 705

704 Complaint

offered for sale, sold and distributed Cardio-Wise, a nutritional supplement, as a product that reduces serum cholesterol. Each of respondent's nutritional supplements is a "food" or "drug," within the meaning of Sections 12 and 15 of the Federal Trade Commission Act, 15 U.S.C. 52, 55.

PAR. 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. 44.

PAR. 4. Respondent has disseminated or caused to be disseminated advertisements and promotional materials for its weight loss products, including but not necessarily limited to, the attached Exhibits A-H. Respondent has disseminated these advertisements and promotional materials directly to consumers and has provided these advertisements and promotional materials to its distributors for dissemination to consumers. These advertisements and promotional materials contain the following statements:

1. "Diets Don't Work, Body Wise Does!" (Exhibit A) "Diets don't work . . . Body Wise Does!" (Exhibit C) "DIETS DON'T WORK BODY WISE DOES!" (Exhibit D) 2. "The Body Wise Weight Management System has been designed to assist you to lose fat and create lean body mass -- all without drugs, deprivation or denial...." (Exhibit A) "The Body Wise Weight Management System is designed to assist you in losing fat and creating lean body mass -- all without drugs, deprivation or denial." (Exhibit B) "The Body Wise Weight Management System has been designed to assist you to lose fat and create lean body mass -- all without drugs, deprivation, or denial ..." (Exhibit C) 3. "Results That Can Last a Lifetime" (Exhibit C) 4. "Whether based on drugs, deprivation or denial, [diets] almost always result in on-again, off-again cycle of weight bounce . . . Body Wise can help provide a long-term solution." (Exhibit A) 5. "LOSE FAT -- FOR LIFE!" (Exhibit B) 6. "I have lost 39 pounds, four inches in the waist, lowered my cholesterol 42 points and reduced my body fat by 14 percent." (Exhibit A) "I lost 39 pounds, 4 inches in my waist, lowered my cholesterol 42 points and reduced my body fat 4%." (Exhibit C) "I've lost 39 pounds, four inches in the waist, lowered my cholesterol 42 points and reduced my body fat by 14%." (Exhibit D) "I've lost 39 pounds, lowered my cholesterol 42 points and reduced my body fat by 14 percent." (Exhibit F)

Complaint 120 F.T.C.

"I have lost 39 pounds, 4 inches in the waist, lowered my cholesterol 42 points, and reduced my body fat by 4%." (Exhibit H-2) 7. "As an Orthopedic Surgeon, Body Wise has my endorsement. In six weeks I lowered my cholesterol 60 points, triglycerides over 100 points and lost 12 pounds!" (Exhibit A) 8. "My patients on the program are losing fat and feeling great. I personally lost 17 pounds and five percent body fat!" (Exhibit A) 9. "My patients are doing exceptionally well on this program. My staff and I marvel at their lab results, weight loss and improved overall well-being. Personally, I have lost 15 pounds and lowered my cholesterol 45%." (Exhibit E) "My patients are doing exceptionally well on this program. My staff and I marvel at their lab results, weight loss and improved overall being. Personally, I have lost 15 pounds and lowered my cholesterol 45 points." (Exhibit G) 10. "I LOST 58 POUNDS! My waist went from an extended 40 inches to a comfortable 34." (Exhibit B) "In just three months I lost 58 pounds and lowered my cholesterol level 104 points. The inches fell off!" Exhibit C) "I lowered my cholesterol level 104 points and lost 58 pounds in scale weight! My waist went from an extended 40 inches to a comfortable 34." (Exhibit F-2) 11. "In 30 days I lost 3½ inches from my waist, 4 inches from my hips and my body fat dropped 11%." (Exhibit D) "My body fat dropped 11 percent while my cholesterol level was lowered 26 points! I lost 3½ inches from my waist and four inches from my hips!" (Exhibit F-2) 12. "In seven weeks, I lost 27 pounds, 24 inches of body fat and lowered my cholesterol 43 points!" (Exhibit G)

PAR. 5. Through the use of the statements contained in the advertisements and promotional materials referred to in paragraph four, including but not necessarily limited to the advertisements and promotional materials attached as Exhibits A-H, respondent has represented, directly or by implication, that the use of respondent's weight loss products will enable consumers to lose weight without dieting. PAR. 6. In truth and in fact, the use of respondent's weight loss products will not enable consumers to lose weight without dieting. Therefore, respondent's representation as set forth in paragraph five was and is false and misleading. PAR. 7. Through the use of the statements contained in the advertisements and promotional materials referred to in paragraph four, including but not necessarily limited to the advertisements and promotional materials attached as Exhibits A-H, respondent has represented, directly or by implication, that the use of respondent's weight loss products will enable consumers to maintain significant long-term or permanent weight loss.

BODY WISE INTERNATIONAL, INC. 707

704 Complaint

PAR. 8. Through the use of the statements contained in the advertisements and promotional material referred to in paragraph four, including but not necessarily limited to the advertisements and promotional materials attached as Exhibits A-H, respondent has represented, directly or by implication, that at the time it made the representation set forth in paragraph seven, respondent possessed and relied upon a reasonable basis that substantiated such representation. PAR. 9. In truth and in fact, at the time it made the representation set forth in paragraph seven, respondent did not possess and rely upon a reasonable basis that substantiated such representation. Therefore, the representation set forth in paragraph eight was and is false and misleading.

PAR. 10. Respondent has disseminated or caused to be disseminated advertisements and promotional materials for Cardio- Wise, including but not necessarily limited to, the attached Exhibits C-D and G. Respondent has disseminated these advertisements and promotional materials directly to consumers and has provided these advertisements and promotional materials to its distributors for dissemination to consumers. These advertisements and promotional materials contain the following statements:

1. "Formulated for a cholesterol conscious America, Cardio Wise offers extra nutritional insurance where additional lipid management is indicated." Highlight Ingredients: "Niacin"

"This crystalline ingredient has been clinically demonstrated to lower serum cholesterol." (Exhibit D) 2. "Cardio Wise® is one of the miracles in nutrition offered by Body Wise for a cholesterol conscious America. It focuses on the use of Niacin . . . because it expands the blood capillaries . . . [and] has been found effective in . . . lowering the level of cholesterol in the blood." (Exhibit C-3) 3. "FOR OPTIMUM HEALTH . . .

Special emphasis is on nutrients for . . . cholesterol management through use of niacin . . ." (Exhibit H) 4. "In rigorous studies, biologically active chromium has been shown to: * * * "Lower both total cholesterol and LDL cholesterol." (Exhibit C-2) 5. "Grapefruit Pectin Cellulose -- Which has been demonstrated clinically to be the preferred form of fiber for cholesterol reduction." (Exhibit C-3) 6. "I reduced my cholesterol over 100 points! I began taking Cardio Wise shortly after major surgery. My cholesterol dropped 113 points in six weeks." (Exhibit D)

Complaint 120 F.T.C.

PAR. 11. Through the use of the statements contained in the advertisements and promotional materials referred to in paragraph ten, including but not necessarily limited to the advertisements and promotional literature attached as Exhibits C-D and G, respondent has represented, directly or by implication, that:

(a) Cardio Wise significantly reduces serum cholesterol levels; and (b) Scientific studies on the ingredients in Cardio Wise demonstrate that Cardio Wise significantly reduces serum cholesterol levels.

PAR. 12. Through the use of the statements contained in the advertisements and promotional material referred to in paragraph ten, including but not necessarily limited to the advertisements and promotional literature attached as Exhibits C-D and G, respondent has represented, directly or by implication, that at the time respondent made the representations set forth in paragraph eleven, it possessed and relied upon a reasonable basis that substantiated such representations.

PAR. 13. In truth and in fact, at the time respondent made the representations set forth in paragraph eleven, it did not possess and rely upon a reasonable basis that substantiated such representations. Therefore, the representation set forth in paragraph twelve was and is false and misleading.

PAR. 14. Through the use of the statements contained in the advertisements and promotional materials referred to in paragraphs four and ten, including, but not necessarily limited to, the attached Exhibits A-H, respondent has represented, directly or by implication, that testimonials from consumers appearing in advertisements for respondent's weight loss products and for Cardio Wise reflect the typical or ordinary experience of members of the public who have used the products.

PAR. 15. In truth and in fact, the testimonials from consumers appearing in advertisements for respondent's weight loss products and for Cardio Wise do not reflect the typical or ordinary experience of members of the public who have used the products. Therefore, the representation set forth in paragraph fourteen was and is false and misleading.

BODY WISE INTERNATIONAL, INC. 709

704 Complaint

PAR. 16. Through the use of the statements contained in the advertisements and promotional materials referred to in paragraph four and ten, including, but not necessarily limited to, the attached Exhibits A-H, respondent has represented, directly or by implication, that at the time it made the representation set forth in paragraph fourteen, respondent possessed and relied upon a reasonable basis that substantiated such representation. PAR. 17. In truth and in fact, at the time it made the representation set forth in paragraph fourteen, respondent did not possess and rely upon a reasonable basis that substantiated such representation. Therefore, respondent's representation as set forth in paragraph sixteen was and is false and misleading. PAR. 18. The advertisements and promotional materials referred to in paragraph four, including but not necessarily limited to the attached Exhibits A-H, contain endorsements of respondent's products by physicians, other health care professionals, and lay persons who are distributors of Body Wise products and who derive income from the sale of Body Wise products. Respondent has failed to disclose, either in its advertising and promotional materials or otherwise, that the physicians, other health care professionals and lay persons whose endorsements of respondent's products are contained in respondent's advertising and promotional materials are distributors of Body Wise products and may have a financial interest in promoting the sale of Body Wise products. This fact would be material to consumers in their purchase decision regarding respondent's products. The failure to disclose this fact, in light of the representations made, was and is a deceptive practice. PAR. 19. In the course and conduct of its business, respondent actively recruits physicians and other health-care professionals as Body Wise distributors. Respondent directs such physicians and other health-care professionals to endorse the use of Body Wise products to individual consumers on behalf of other Body Wise distributors. The physicians and other health-care professionals are affiliated with these other Body Wise distributors and derive income from their sale of Body Wise products. Respondent has failed to disclose, in its advertising or promotional materials or otherwise, that the physicians and other health-care professionals who endorse respondent's products to individual consumers, on behalf of other distributors, have a material connection to respondent, in that they are also Body Wise distributors with a direct financial interest in

Complaint 120 F.T.C.

promoting the other distributors' sale of Body Wise products. This fact would be material to consumers in their purchase and use decisions regarding respondent's products. In light of respondent's practice of directing such physicians and other health-care professionals to endorse respondent's products, the failure to disclose this fact was and is a deceptive act or practice. PAR. 20. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices and the making of false advertisements in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act, 15 U.S.C. 45(a) and 52.

BODY WISE INTERNATIONAL, INC. 711 704 Complaint

EXHIBIT A

Spectacular Weight Loss! The Body Wise Weight Management System is Reshaping America!

[Black and white image of a woman in a bikini] Reshape Your Future Diets Don't Work, Body Wise Does YOUR BODY WISE INTERNATIONAL INDEPENDENT CONSULTANT IS: Most Americans are at nutritional risk. Over 34 million people are afflicted with potentially life-threatening obesity. To complicate matters, according to a USDA Food Consumption Survey, not a single person of more than 21,500 surveyed consumed 100 percent of the Recommended Dietary Allowances for 10 key nutrients. This statistic alone establishes the need for responsible nutritional supplementation. Quite simply, our foods no longer support a condition of optimum health.

Particular Problem Is Lack Of Knowledge Despite what we now know about weight loss and weight gain, people still seem to desire to lose weight. Yet, the evidence is clear: Diets Don't Work. Whether based on drugs, deprivation or denial, diets have a 95% failure rate. In fact, the more weight you lose, the more you have to lose. The reason: Dieting creates a loss of lean body mass, which slows your metabolism. So, the weight you lose usually returns, and often brings some "friends" along with it.

If Diets Don't Work, Then What Does? Scientists now emphasize nutritional supplementation and proper exercise as keys to optimum health. Add to this the U.S. Surgeon General's report on nutrition and health, and you have the Body Wise Weight Management System. The System is designed to help you lose weight, keep it off, and improve your health. The program includes a low-fat, high-fiber, nutritionally-balanced diet, behavior modification, moderate exercise, and nutritional supplementation.

Body Wise Results The Body Wise Weight Management System has been designed to help you lose weight and keep it off. The System includes a comprehensive plan that helps you lose weight without the use of drugs, appetite suppressants, or injections. The plan is designed to help you lose weight and keep it off. The System includes a comprehensive plan that helps you lose weight without the use of drugs, appetite suppressants, or injections. The plan is designed to help you lose weight and keep it off. The System includes a comprehensive plan that helps you lose weight without the use of drugs, appetite suppressants, or injections. The plan is designed to help you lose weight and keep it off.

"At 44 years old, I had accepted the fact that I would never lose weight. I had tried every diet program available. I was skeptical at first, but I lost 32 pounds and 27 inches in just 6 weeks. I feel great and have kept the weight off for over a year. I would recommend this program to anyone." - Mary Ann, R.N.

Chicago, IL

"I have lost 25 pounds and 21 inches in 8 weeks. I have never felt better. I have more energy and self-esteem than I ever thought possible. I would recommend this program to anyone who wants to lose weight and keep it off." - Patricia San Diego, CA

"I have lost 35 pounds and 32 inches in 12 weeks. I feel great and have kept the weight off for over a year. I would recommend this program to anyone." - Mary Huntington Beach, CA

"I have lost 42 pounds and 38 inches in 12 weeks. I feel great and have kept the weight off for over a year. I would recommend this program to anyone." - Sandra San Diego, CA

"My patients on the program are losing fat and feeling great. I personally lost 17 pounds and five percent body fat." - Dr. Michael Huntington Beach, CA

"I lost 35 pounds with the Body Wise Weight Management System. The program is easy and it works! I feel fantastic and my heart surgeon, Good-bye heart disease!" - [illegible]

Exhibit A

Complaint 120 F.T.C.

EXHIBIT B

Body Wise is Reshaping America™!

“I LOST 58 POUNDS!”

“My waist size went from an extended 40 inches to a comfortable 34. My results are proof of this dynamic health and nutrition program!”

Jeff Gordon Henderson, NV

LOSE FAT — FOR LIFE! The Body Wise Weight Management System is designed to assist you in losing fat and creating lean body mass — all without drugs, deprivation or denial. Through the dynamic and powerful Body Wise educational video and nutritional supplements you will experience the techniques of personal empowerment and with the use of the Body Wise nutritional supplements you will restore and maintain your body’s vitality. Body Wise is your passport to freedom from fat!

◆ Fat Reduction ◆ Hunger Control ◆ Muscle Definition

The Body Wise Weight Management System ◆ Future Perfect Drink ◆ Right Choice AM/PM Multi Formula Caplets ◆ The Reshape Formula ◆ Weight Management System Video ◆ Fat Gram Counter

The Networking Company that’s Reshaping America !

Body Wise INTERNATIONAL, INC.

Exhibit B

BODY WISE INTERNATIONAL, INC. 713 Complaint

EXHIBIT B-2

Body Wise Benefits Every Body!

Sherry Atkinson, National Marketing Director and Founder Body Wise Concept

James Atkinson, Triathlete and Marlene Bergman, World Ranking Champion La Jolla, California Body Wise Consultants

Ruth Ann Ferguson, R.N.

Medical Consultant Body Wise Concept

"I am a former Cosmetic Consultant who has lost 25 pounds and dropped 7% body fat.

I have more energy and mental alertness than I have ever had in my entire life. I owe Body Wise the rest of my life."

Cindy Chambers Co-Owner, Chambers and Associates Kansas City, Missouri

"The results are fantastic! I've dropped from a size 14 to a 7/8, reduced my waist, 4 inches from my hips and only by eating 1 1/2 pounds of food a day. I would start the advanced Body Wise Program immediately."

Pamela Jean Atkinson Body Wise Consultant San Diego, California

"I'm a Body Wise believer! I'm 51 years old and have a size 13 1/2 woman's body. The products are outstanding. I can feel the difference in my energy level."

Ray Kelleher Body Wise Consultant Pomona Valley, California

★ Health Enhancement ★ Weight Management ★ Cholesterol Concern ★ Athletic Performance

To make a Body Wise decision for your future, call me:

Body Wise INTERNATIONAL, INC.

Exhibit B-2 Carlsbad, California 92009

1001 4235

Complaint 120 F.T.C.

EXHIBIT C

Diets don't work...

Body Wise Does!

SPECTACULAR WEIGHT LOSS

Results That Can Last A Lifetime™

The Body Wise Weight Management System has been designed to assist you to lose fat and create lean body mass – all without drugs, deprivation, or denial which result in the on-again, off-again cycle of weight bounce so often experienced with conventional weight-loss programs.

In 16 weeks I lost 39 pounds, 4 inches in my waist, lowered my cholesterol 42 points, and reduced my body fat 4%. I am now recommending the Body Wise program to my patients. R. Stephen Jennings, M.D.

Huntington Beach, CA

In four months time I lost 43 pounds and reduced my body fat 5%. My wife Marilyn lost 12 pounds of fat, 3 inches in her waist, 2 inches in her thighs, and reduced her body fat 8%. Marc & Marilyn Wilson Burbank, IL

I dropped 6 inches from my waist, lost 55 1/4 pounds, lowered my cholesterol 64 points. I feel 20 years younger. It's great to be 70 and feel 50 again! Paul Williams Lincoln, NE

I lost 20 pounds on the Body Wise Weight Management System. I lost 3 1/2 inches off my waist and lowered my cholesterol 49 points. Now people tell me I look like a different person! Bernice Bryant Lincoln, NE

In just three months I lost 68 pounds and lowered my cholesterol 104 points. The inches fell off! It was an easy and amazing life changing process. Jeff Gordon Henderson, NV

Thank You, Body Wise!

Your Body Wise Consultant is:

HEALTH SCIENCES, INC.

13301 WATERFORD RUN DRIVE RIVERVIEW, FLORIDA 33569

Exhibit C

120 F.T.C. 1231

BODY WISE INTERNATIONAL, INC. 715 Complaint

EXHIBIT C-2

The Body Wise™ Products

The Body Wise products form a system for optimal health and fitness that combines advanced nutritional technology with educational understanding and incorporates the latest breakthroughs in research in the fields of nutrition, human physiology and medicine. Body Wise products focus on sound science and deliver personal results.

Body Wise™ Right Choice® AM/PM Formula

1. Right Choice® is the nutritional foundation upon which all Body Wise Nutrition systems are built—it provides the equivalent of daily nutritional insurance. 2. Right Choice® AM & PM are team players that help meet the body's very different needs for daytime and nighttime activity. There are certain nutritional factors that tend to empower our systems to give us energy for daytime activity, and other nutrients that tend to replenish our bone matrix and cell structure—which is particularly important for nighttime. A. AM—The AM (morning) multi-formula is for use soon after we first awake. It furnishes the water and fat soluble vitamins with associated cofactors essential for energy empowerment. B. PM — The PM (evening) multi-formula is specially formulated for replenishment of the skeletal matrix and essential cell repair. Sleep is a recreating event. Minerals are vital catalysts during this period. Proper nighttime nutrition, therefore, contributes to a coordination of rest and a feeling of well-being. 3. Right Choice® contains two advanced formulas: A. Biopotentiated Nutrients — This process, unique to Body Wise, enrobes the water soluble vitamins with a protein so that our bodies can handle it easier. It makes the vitamins "cell ready" for maximum assimilation (few supplements take advantage of this technology, so much less of the nutritional value is absorbed by the body). B. Krebs Cycle Chelates — This process goes beyond normal methods of chelation to maximize active absorption of minerals at the cellular level. 4. Right Choice® contains Krebs Cycle Chromium. This is one of the spectacular, home-run nutrients in Right Choice. Krebs Cycle Chromium is a patented mineral similar in form to minerals found in mother's milk and exclusive to Body Wise. In rigorous studies, biologically active chromium has been shown to: • Increase lean body mass while burning off fat. • Contribute directly to weight loss. • Lower both total cholesterol and LDL cholesterol. • Improve glucose tolerance. • Optimize the entire metabolic system & boost energy. • Increase glycogen storage. • Increase tissue sensitivity to the anabolic hormone insulin.

Body Wise's Krebs Cycle Chromium works to support the proper functioning of insulin—one of the body's primary anabolic hormones. A key role of insulin is to "escort" amino acids out of the blood stream and into cells where they are assembled into enzymes, organ and muscle tissue. Without biologically active chromium, insulin simply doesn't work—and muscles aren't synthesized. With Body Wise's Krebs Cycle Chromium, tests confirm a 34% gain in lean body mass formulation when compared to control group. Additional highlight nutrients include: A. Beta Carotene — A powerful, non-toxic vitamin, which according to government research, is required to prevent cancer in living tissue. B. Esterified Vitamin C — A user-friendly, scientifically buffered Vitamin C which matches the mood of the body in order to prevent acid upset. C. Boron — A unique mineral which research shows aids in calcium retention.

Exhibit C-2

Complaint 120 F.T.C.

EXHIBIT C-3

Page 2

Future Perfect®

Future Perfect® is a delicious carbohydrate meal replacement drink that contains several key nutrient factors to provide sustained energy and help lower body fat and increase lean body mass. Highlight nutrients include: A. Inulin — A botanical from the Dahlia root and Jerusalem Artichoke which has been shown to prolong carbohydrate metabolism and thus "stretch the meal." B. Cruciferous Vegetables — These nutrients, which are built right into the formula of Future Perfect, were reported in the June 1988 issue of a leading medical journal, the Journal Of Clinical Nutrition, to have a direct relationship between their intake and the potential for reducing cancer risk. C. Micro-Encapsulated Fiber — Future Perfect contains four grams of micro-encapsulated soluble fiber, a technical "plus" which assists the body in lowering cholesterol. D. Amino Acid Mix — Future Perfect contains a full spectrum of amino acids—including the essential ones—making it a complete meal. E. Krebs Cycle Chromium — This ingredient serves the same function as in the Right Choice PM formula, which is to capitalize on study findings that it can increase lean body mass while lowering body fat, total cholesterol and LDL cholesterol.

Cardio Wise®

Cardio Wise® is one of the miracles in nutrition offered by Body Wisefor a cholesterol conscious America. It focuses on the use of Niacin, L-Carnitine, Co-Enzyme Q10, Krebs Cycle Chromium, Silymarin, Grapefruit Pectin and Guar Gum to attack several risk factors associated with premature aging: A. Niacin — Functions to produce energy from sugars, fats and protein. It's also said to maintain healthy skin, nerves and digestive systems. More importantly, because it expands the blood capillaries, allowing more throughput and literally not allowing fat to stick to the veins' walls, it has been found effective in improving circulation and lowering the level of cholesterol in the blood. B. L-Carnitine — This is a miracle nutrient in its own right, in that it has been demonstrated through research to control weight, prevent heart disease and increase athletic performance. C. Krebs Cycle Chromium — The above two nutrients, when used in conjunction with our brand Krebs Cycle Chromium, have a collateral function in cholesterol and fat reduction in the body. D. Silymarin — A botanical of European origin (milk thistle), Silymarin is reported to have ten times more anti-oxidant effectiveness than Vitamin E. In addition to being a 'free radical' scavenger, Silymarin creates anti-toxin activity in the liver and causes the body to use oxygen more effectively. In short it prevents premature aging. E. Grapefruit Pectin Cellulose — Which has been demonstrated clinically to be the preferred form of fiber for cholesterol reduction. In general, all fiber reduces cholesterol. Grapefruit Pectin Cellulose is among the most effective forms to accomplish this desired effect. F. Co-Enzyme B-12 — To build muscle, particularly the heart muscle.

1 Free radicals harm body cells and may even begin the transformation of normal cells into cancer cells. Free radicals are easily generated from food, water and air; tobacco smoke is filled with them. G-Forces: The 34 Global Forces Restructuring Our Future: P-56, Frank Feather, William Morrow & Co.; 1980

Exhibit C-3

The image has been rotated 90 degrees clockwise.The text reads: BODY WISE INTERNATIONAL, INC.

Complaint EXHIBIT D

CARDIO VIDE * Cholesterol Control * Fat Reduction * Heart Health Licensed for professional consumer America Cardio-Vive offers a 12-minute total exercise workout where advanced lipid management is scientifically documented.

Vigorous Non-aerobic equipment has been clinically documented in lower triglycerides, and free fatty acids. Lower cholesterol, and free fatty acids. Increase lean body mass Increase metabolism Improve glucose tolerance Cardiovascular conditioning for men and women Non-impact 20 minutes, 3 times per week $12,500. Includes all equipment Lease option available "Exercise is Medicine"

Call for the facts:

1-800-322-7773 BODY WISE INTERNATIONAL The Leader in Preventive Medicine

BODY WISE CONSULTANTS BODY WISE FITNESS Tom Armstrong, Director Body Wise Fitness 7161 S. Poplar St.

Littleton, CO 80122 303-770-1100 Dear Tom:

This letter will confirm our agreement regarding Body Wise Fitness. As we discussed, I have enclosed a check for $12,500 to cover the cost of the Body Wise Fitness Center. In consideration for this payment, Body Wise Fitness will be operated as a Body Wise Center. I look forward to a long and mutually rewarding relationship.

Sincerely, Tom Armstrong Enclosure Jack L. Copeland Body Wise Fitness 7161 S. Poplar St.

Littleton, CO 80122 303-770-1100 Dear Jack:

Sincerely, Jack L. Copeland Enclosure

RESHAPE YOUR FUTURE Body Wise International, Inc.

"Shape Your Future"

2131 Farad St.

Costa Mesa, CA 92627 714-722-7555 1-800-322-7773

YOUR BODY WISE CONSULTANTS Tom Armstrong, Director Body Wise Fitness 7161 S. Poplar St.

Littleton, CO 80122 303-770-1100 Jack L. Copeland Body Wise Fitness 7161 S. Poplar St.

Littleton, CO 80122 303-770-1100 Gail R. Hirsh Body Wise Fitness 7161 S. Poplar St.

Littleton, CO 80122 303-770-1100 Sandy McDonald Body Wise Fitness 7161 S. Poplar St.

Littleton, CO 80122 303-770-1100 EXHIBIT D

1. Body System Company 2. Body Wise International, Inc.

3. Body Wise Fitness 4. Jack L. Copeland 5. Tom Armstrong 6. Gail R. Hirsh 7. Sandy McDonald 8. Body Wise Fitness 9. Body Wise International, Inc.

10. Body Wise International, Inc. 11. Body Wise International, Inc. 12. Body Wise International, Inc. 13. Body Wise International, Inc. 14. Body Wise International, Inc. 15. Body Wise International, Inc. 16. Body Wise International, Inc. 17. Body Wise International, Inc. 18. Body Wise International, Inc. 19. Body Wise International, Inc. 20. Body Wise International, Inc.

Complaint 120 F.T.C.

EXHIBIT E

[Left column of testimonials:]

"I am pleased with the results this program has given me. As a physician, I am aware of the potential dangers of obesity and the need for a comprehensive program. I have been impressed with the program's emphasis on nutrition and exercise. I have lost 25 pounds and have maintained my weight loss. I feel great and have more energy. I would recommend this program to anyone who wants to lose weight and improve their health." E. Stephen Jennings, M.D.

Huntington Beach, CA

"After years of being overweight, I finally found a program that works. I lost 30 pounds in 3 months. I have kept it off for over a year. I have more energy and feel better than I have in years. I would recommend this program to anyone who wants to lose weight and keep it off." Patricia A. Smith Santa Ana, CA

"I have been on the program for 6 months and have lost 40 pounds. I have gone from a size 16 to a size 10. I feel great and have more energy than I have had in years. I would recommend this program to anyone who wants to lose weight and improve their health." Janet M. Johnson Huntington Beach, CA

"After being overweight for most of my life, I have finally found a program that works. I have lost 50 pounds and have kept it off for over a year. I have more energy and feel better than I have in years. I would recommend this program to anyone who wants to lose weight and keep it off." Robert W. Smith, M.D.

Laguna Beach, CA

"After my first child, I had a hard time losing the weight. I tried many different diets and exercise programs, but nothing worked. Then I found this program. I lost 35 pounds and have kept it off for over a year. I feel great and have more energy than I have had in years. I would recommend this program to anyone who wants to lose weight and improve their health." Mary A. Jones Huntington Beach, CA

"At 51 years of age, I was 60 pounds overweight. I had tried many different diets and exercise programs, but nothing worked. Then I found this program. I lost 60 pounds and have kept it off for over a year. I feel great and have more energy than I have had in years. I would recommend this program to anyone who wants to lose weight and improve their health." Bruce Mulhearn Former NFL Quarterback

Testimonials presented are based on personal experience and are not intended to represent that the products will work for everyone. Typical results may vary. Your Body Wise International Independent Consultant is:

[Right column:]

PERFORMANCE NUTRITION FOR THE 22ND CENTURY.

Body Wise Wins Again!

Bruce Mulhearn Former NFL Quarterback

"Thanks to Body Wise, I lowered my body fat, cholesterol and lost 2 inches. My NFL buddies are noticing the difference. I tell them, 'It's Body Wise.'"

Body Wise INTERNATIONAL, INC.

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BODY WISE INTERNATIONAL, INC. 719

704 Complaint

EXHIBIT F

The Body Wise Plan For Success

Reduce Body Fat Improve Self-Image

Increase Athletic Performance Gain Financial Security

Exhibit F

Complaint 120 F.T.C.

EXHIBIT F-2

**SHARE THE DREAM OF SUCCESS**

R. Stephen Jennings, M.D.

Huntington Beach, California "For less than 30 months, I have earned in excess of $1 million and have not yet reached my 40th birthday. I am proud to be associated with the finest nutritional company in America. The professional business management team is the finest I have ever seen in the medical field."

Sandra Lander Irvine, California "Network Marketing is the most exciting and lucrative business opportunity in America today. With the finest nutritional products, a superior compensation plan, and a management team that is second to none, I am confident that I have finally found my niche."

Dan McCormick Trabuco Canyon, California "Back in 1992, I was paid over $1,000,000.00 in Network Marketing. In 1993, I will double that! I know with total confidence that I will create massive financial abundance!"

Maria Grasso Dana Point, California "The Body Wise Business Opportunity has allowed me to be at home with my two sons, drive a company Mercedes, and earn a six-figure income. I am forever grateful to Body Wise for making the 'American Dream' a reality for me. Life is a journey... not a destination."

Bruce McBurney Riverside, California "After 20 years in the medical field, I was earning a good living, but I was tired of working hard and not having any time to enjoy it. I was also tired of the stress and pressure. I have been with Body Wise for 6 months and I am earning more income than I ever did in the medical field. I am looking forward to a long and rewarding career."

Brenda L. Anderson Livermore, California "Body Wise International has given me the vehicle to achieve my goals and dreams. I have been with the company for 7 months and have achieved the level of Executive Coordinator. I am earning in excess of $10,000 per month. I have also lost 30 pounds and feel better than I have in 20 years. I have never been healthier or happier in my life."

Jeff Gordon Riverside, Florida "I started my business just 10 months ago. I am currently earning in excess of $10,000 per month. I went from an extended 40 inch waist to a comfortable 32! I have never felt so strong and vibrant in my life!"

Christian Padeken San Diego, California "After 25 years in the aerospace industry, I was introduced to Body Wise. I started my business in November 1992 and have been able to retire from my aerospace job. I am 46 years old and have never felt better. The products are incredible and the opportunity is unlimited. I am enjoying life more than ever. Thank you Body Wise."

These statements are from actual Body Wise International Distributors. They are not intended to reflect the average distributor's experience. As with any business, your success depends on your own skills and efforts. The average distributor who reaches the level of Executive Coordinator earns approximately $1,000 per month. Most people who become distributors do not reach the Executive level. The statements above are not a guarantee of your success. The income examples are not typical. The average Body Wise distributor earns less than $500 per year. For a complete copy of the Body Wise Marketing Plan, call 1-800-830-9596.

**CONTACT YOUR LOCAL CONSULTANT**

The Networking Company that Is Reshaping America! Exhibit F-2 BODY WISE INTERNATIONAL

BODY WISE INTERNATIONAL, INC. 721 704 Complaint

EXHIBIT G

Congratulations!! "I am proud of what my patients You have taken the have accomplished with the first easy steps Body Wise program. As a for a Healthier Future! physician, I am aware of the problems of obesity. My patients have lowered their cholesterol levels and improved their self-images. I strongly endorse the program."

R. Thomas Jensen, M.D.

Huntington Beach, CA

"After just six weeks on the Body Wise products, my cholesterol dropped from 234 to 181; my body fat percentage dropped from 29.6 percent to 23 percent. My goal weight was between 135 and 140 pounds. I now am at a cholesterol level of 127 and body fat is 19 percent. At age 47, I feel better than I did at age 20!" Patricia A. Mitterholzer, Ph.D.

Santa Ana, CA

"As a Family Physician, the financial rewards are greater than ever before. But the best part is the health benefits my patients have received. They are healthier, have more energy, and improved self-esteem."

My staff and I have been impressed with the program. I have lost 35 pounds and have kept it off. I have more energy and feel great!"

Robert L. Jones, M.D.

Los Angeles, CA

"Body Wise has changed my life.

I have lost 50 pounds. I went from a size 22 to a size 8. My energy level has increased and I feel great!"

Sandra K. Gardner Riverside, CA

"I have been overweight all my life. I have tried every diet program available. I have finally found one that works. I have lost 70 pounds and feel better than I have in years. I would recommend this program to anyone who wants to lose weight."

Corinne R. Rasmusson Orange, CA

"I am proud of what my patients have accomplished with the Body Wise program. As a physician, I am aware of the problems of obesity. My patients have lowered their cholesterol levels and improved their self-images. I strongly endorse the program."

R. Thomas Jensen, M.D.

Huntington Beach, CA

Santa Ana, CA

My staff and I have been impressed with the program. I have lost 35 pounds and have kept it off. I have more energy and feel great!"

Robert L. Jones, M.D.

Los Angeles, CA

"Body Wise has changed my life.

I have lost 50 pounds. I went from a size 22 to a size 8. My energy level has increased and I feel great!"

Sandra K. Gardner Riverside, CA

Corinne R. Rasmusson Orange, CA

Body Wise INTERNATIONAL, INC.

Your Body Wise Consultant Is:

Exhibit G

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EXHIBIT H

FOR OPTIMUM HEALTH...

The Advanced Nutrition System is designed to provide the most complete, balanced, and natural food supplements available for ATF professionals. Special emphasis is manufactured for ATF professionals. Nutritional needs of men and women under physical and mental stress. Each Cyto-Food is a unique combination of vitamins, minerals, and other nutrients necessary to maintain a healthy dietary balance.

Cyto-Food supplements are sold in tablet form and are packaged in a plastic container. Each Cyto-Food supplement is designed to meet the specific needs of the individual.

FOR WEIGHT MANAGEMENT...

The Weight Management System is used to support your body's own ability to burn fat and maintain muscle. The system is designed to be used in conjunction with the ATF Fitness Program.

The Weight Management System includes a variety of products that help you to lose weight and keep it off. The Weight Management System is not a drug. It is a combination of natural ingredients that help you to lose weight and keep it off.

The Weight Management System is not a drug. It is a combination of natural ingredients that help you to lose weight and keep it off.

The Body Wise International Weight Management System & Advanced Nutrition System

Body Wise International Weight Management System & Advanced Nutrition System

The Professional Choice...

Exhibit H

Body Wise INTERNATIONAL, INC.

CYTO-FOOD NUTRITIONAL TECHNOLOGY FOR THE 21st CENTURY

The Body Wise International Weight Management System & Advanced Nutrition System

Body Wise International Weight Management System & Advanced Nutrition System

For further information about the Body Wise Weight Management System or Advanced Nutrition System, contact:

Body Wise International, Inc.

Attn: Medical Director 5836 Lincoln Avenue Buena Park, CA 90620 (714) 562-1000

Body Wise International, Inc.

Attn: Medical Director 5836 Lincoln Avenue Buena Park, CA 90620 (714) 562-1000

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704 Complaint

EXHIBIT H-2

...To Better Health For Your Patients

Body Wise nutritional systems are designed to enable today's health care professional to employ a BUILD-LEAN-BODY MASS ENHANCE ENERGY POTENTIAL IMPROVE NUTRITIONAL STATUS PROVIDE A SAFE, EFFECTIVE MEANS OF WEIGHT MANAGEMENT PROMOTE IMPROVED HEALTH HABITS

Poor dietary habits have been shown to be a major factor in many diseases, including heart disease, hypertension, diabetes, and some forms of cancer. The average American diet derives approximately 40% of its calories from fat, 50% from carbohydrates, and 20% from protein. The U.S. government, through its own studies, recommends reducing the daily intake of fat, and increasing the daily intake of fiber. Most Americans eat very little fiber, and consume far too much fat.

Most Americans also eat too much sugar. Most Americans do not eat enough complex carbohydrates.

Body Wise nutritional systems promote good eating habits, provide excellent nutritional support, and help establish a more healthful lifestyle. Body Wise can help you feel better, look better, and perform better. "The doctor of the future will no longer treat the human frame with drugs, but rather will cure and prevent disease with nutrition." Thomas A. Edison

THE DOCTOR THE PATIENT

THE HEALTH TEAM THE MARKETING PROGRAM

• The Best Health Maintenance Organization Networking... has yet to be formed.

• The largest segment of our economy today The Body Wise International Business Opportunity is health care.

• More than 50% of the adult population is is based on a network of marketing called "Networking" overweight.

• One out of three adults has high blood It is based on the concept that "people want to pressure. help people," and that "like-minded people • One out of four adults has some form of heart tend to group together." The networking concept disease. is not new. The "old school tie," the "country • One out of five adults has some form of mental club," and the "church social" are all disorder. examples of networking. • One out of ten adults is diabetic. The Body Wise Vision of creating a healthier, more • Quick, easy, and effective professional products fit world, will be realized as you share it with can make a difference in a person's health and friends and they in turn will share it with performance. friends and they with others. This is how the Body Wise Vision of creating a healthier, more fit world will become a reality.

In essence...

The opportunity for real wealth is enhanced in healthy, your professional practice. The benefits of this program are enhanced patient compliance and patient referrals.

Group Development...

The Body Wise International Compensation Plan is "The finest income plan of any network marketing company in America."

The Body Wise International Compensation Plan is sponsoring. Become part of our winning team! you can earn monthly checks and commissions based upon the sales of friends and your own.

Exhibit H-2

[illegible block]

"After being 30 pounds overweight for twenty years, I lost 32 pounds and have kept it off. My energy level has greatly increased and I feel better than I have in years."

Barbara K. Armstrong, R.N.

Bakersfield, California

"I have been 30 pounds overweight for twenty years. After being on the Body Wise program for 4 months, I have lost 30 pounds and have kept it off. My energy level has greatly increased and I feel better than I have in years." Barbara K. Armstrong, R.N.

Bakersfield, California

"After being 30 pounds overweight for twenty years, I lost 32 pounds and have kept it off. My energy level has greatly increased and I feel better than I have in years."

Barbara K. Armstrong, R.N.

Bakersfield, California

"After being 30 pounds overweight for twenty years, I lost 32 pounds and have kept it off. My energy level has greatly increased and I feel better than I have in years."

Barbara K. Armstrong, R.N.

Bakersfield, California

"I have been 30 pounds overweight for twenty years.

Decision and Order 120 F.T.C.

DECISION AND ORDER

The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished with a copy of a draft of complaint which the San Francisco Regional Office proposed to present to the Commission for its consideration and which, if issued by the Commission, would charge respondent with violation of the Federal Trade Commission Act; and

The respondent, its attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent 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 respondent that the law has been violated as alleged in such complaint, or that the facts as alleged in such complaint, other than jurisdictional facts, are true, 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 respondent has violated the said Act, and that a 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 Body Wise International, Inc., is a corporation organized, existing and doing business under and by virtue of the laws of the State of Nevada, with its office, principal place of business and mailing address at 6350 Palomar Oaks Court, Suite A, Carlsbad, California.

2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent and the proceeding is in the public interest.

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704 Decision and Order

ORDER

DEFINITIONS

For the purposes of this order, the following definitions shall apply:

A. "Distributor" means any person, other than direct employees of Body Wise, who has sold nutritional supplements on behalf of Body Wise or who has received any compensation in connection with the sale of nutritional supplements on behalf of Body Wise, whether such person is characterized as a consultant, associate, distributor or otherwise.

B. "Competent and reliable scientific evidence" means tests, analyses, research, studies or other evidence based on the expertise of professionals in the relevant area, that have been conducted and evaluated in an objective manner by persons qualified to do so, using procedures generally accepted in the profession to yield accurate and reliable results.

It is ordered, That Body Wise International, Inc., a corporation, its successors and assigns, and its officers, directors, representatives, agents, and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, packaging, labeling, promotion, offering for sale, sale or distribution of nutritional supplements, food or drugs, as "food" and "drug" are defined in Sections 12 and 15 of the Federal Trade Commission Act, 15 U.S.C. 52 and 55, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from misrepresenting or assisting others in misrepresenting, in any manner, directly or by implication, that the nutritional supplement, food or drug:

a. Can cause, aid, facilitate or contribute to achieving or maintaining weight loss without a reduction in total caloric intake or an increase in exercise; or b. Contains any ingredient that, individually or in connection with other ingredients, can cause, aid, facilitate or contribute to achieving

Decision and Order 120 F.T.C.

or maintaining weight loss without a reduction in total caloric intake or an increase in exercise.

II.

a. Can cause, aid, facilitate or contribute to achieving or maintaining weight loss;

b. Contains any ingredient that, individually or in connection with other ingredients, can cause, aid, facilitate or contribute to achieving or maintaining weight loss;

c. Reduces, can reduce or helps reduce serum cholesterol levels; d. Contains any ingredient that, individually or in connection with other ingredients, reduces, can reduce or helps reduce serum cholesterol levels; or e. Provides, can provide, or helps provide any other health benefit;

unless, at the time of making any such representation, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation.

III.

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704 Decision and Order

the advertising, packaging, labeling, promotion, offering for sale, sale or distribution of nutritional supplements, food or drugs, as "food" and "drug" are defined in Sections 12 and 15 of the Federal Trade Commission Act, 15 U.S.C. 52 and 55, 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 existence, contents, validity, results, conclusions, or interpretations of any test or study.

IV.

It is further ordered, That Body Wise International, Inc., a corporation, its successors and assigns, and its officers, directors, representatives, agents, and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, packaging, labeling, promotion, offering for sale, sale or distribution of nutritional supplements, food or drugs, as "food" and "drug" are defined in Sections 12 and 15 of the Federal Trade Commission Act, 15 U.S.C. 52 and 55, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from representing or assisting others in representing, in any manner, directly or by implication, that any endorsement (as "endorsement" is defined in 16 CFR 255.0(b)) of such nutritional supplement, food or drug represents the typical or ordinary experience of members of the public who use the nutritional supplement, food or drug, unless such representation is true and, at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence that substantiates such representation. Provided, however, respondent may use such endorsements if the statements or depictions that comprise the endorsements are true and accurate, and if respondent discloses clearly, prominently, and in close proximity to the endorsement:

a. What the generally expected performance would be in the depicted circumstances; or b. The limited applicability of the endorser's experience to what consumers may generally expect to achieve; i.e., that consumers should not expect to experience similar results.

Decision and Order 120 F.T.C.

It is further ordered, That Body Wise International, Inc., a corporation, its successors and assigns, and its officers, directors, representatives, agents, and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, packaging, labeling, promotion, offering for sale, sale or distribution of nutritional supplements, food or drugs, as "food" and "drug" are defined in Sections 12 and 15 of the Federal Trade Commission Act, 15 U.S.C. 52 and 55, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from failing to disclose, clearly and prominently, a material connection, when one exists, between a person providing an endorsement for any such product, as "endorsement" is defined in 16 CFR 255.0(b), and respondent or any other individual or entity manufacturing, labeling, advertising, promoting, offering for sale, selling, or distributing such product. For purposes of this order, "material connection" shall mean any relationship that might materially affect the weight or credibility of the endorsement and would not reasonably be expected by consumers.

VI.

It is further ordered, That Body Wise International, Inc., a corporation, its successors and assigns, and its officers, directors, representatives, agents, and employees, directly or through any corporation, subsidiary, division or other device, in connection with the advertising, packaging, labeling, promotion, offering for sale, sale or distribution of nutritional supplements, food or drugs, as "food" and "drug" are defined in Sections 12 and 15 of the Federal Trade Commission Act, 15 U.S.C. 52 and 55, in or affecting commerce, as "commerce" is defined in the Federal Trade Commission Act, do forthwith cease and desist from disseminating or assisting others in disseminating any advertisement which contains any reference to physicians or other health care professionals unless respondent discloses clearly and conspicuously that physicians and other health care professionals who endorse Body Wise products may be Body Wise distributors and have a financial interest in promoting the sale of Body Wise products.

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VII.

Nothing in this order shall prohibit respondent from making any representation that is specifically permitted in labeling for any product by regulations promulgated by the Food and Drug Administration pursuant to the Nutrition Labeling and Education Act of 1990.

VIII.

Nothing in this order shall prohibit respondent from making any representation for any drug that is permitted in labeling for any such drug under any tentative final or final standard promulgated by the Food and Drug Administration, or under any new drug application approved by the Food and Drug Administration.

IX.

It is further ordered, That respondent shall notify the Commission at least thirty (30) days prior to any proposed change in the corporation, such as dissolution, assignment, sale resulting in the emergence of a successor corporation or association, or the creation or dissolution of subsidiaries or affiliates, or any other change in the corporation that may affect compliance obligations arising under this order.

It is further ordered, That for three (3) years following the dissemination of any representation covered by this order, respondent, or its successors and assigns, shall maintain and upon request make available to the Federal Trade Commission for inspection and copying, copies of:

A. All materials that were relied upon in disseminating such advertisement; and B. All tests, reports, studies, surveys, demonstrations or other evidence in its possession or control that contradict, qualify, or call

Decision and Order 120 F.T.C.

into question such representation, including complaints from consumers.

XI.

It is further ordered, That respondent shall distribute a copy of this order to each of its operating divisions and to each of its officers, agents, representatives, and employees engaged in the preparation or placement of advertisements or other materials covered by this order.

XII.

It is further ordered, respondent shall distribute a copy of this order to each of its current distributors; provided that respondent may satisfy the requirements of this section with respect to current distributors by publishing the full text of this order clearly and prominently in any periodical which is published by respondent and which is distributed to all of its distributors.

XIII.

It is further ordered, That this order will terminate on September 25, 2015, or twenty years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of:

A. Any paragraph in this order that terminates in less than twenty years; B. This order's application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has terminated pursuant to this paragraph.

Provided further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this paragraph as though the complaint was never filed, except that the order will not terminate

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between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

XIV.

It is further ordered, That respondent shall, within sixty (60) days after service of this order, and at such other times as the Commission may require, file with the Commission a report, in writing, setting forth in detail the manner and form in which it has complied with this order.

Complaint 120 F.T.C.

IN THE MATTER OF

LOCAL HEALTH SYSTEM, INC., ET AL.

CONSENT ORDER, ETC., IN REGARD TO ALLEGED VIOLATION OF SEC. 7 OF THE CLAYTON ACT

Docket C-3618. Complaint, Oct. 3, 1995--Decision, Oct. 3, 1995

This consent order, among other things, prohibits the merger of the two largest hospitals in St. Clair County, Michigan, and requires the respondents, for three years, to notify the Commission or obtain Commission approval before acquiring certain hospital assets in the Port Huron area.

Appearances

For the Commission: Phillip L. Broyles and William Baer. For the respondents: David Ettinger, Honigman, Miller, Schwartz & Cohn, Detroit, MI.

COMPLAINT

The Federal Trade Commission, having reason to believe that respondent Local Health System, Inc. (hereinafter sometimes referred to as "Local Health"), has entered into an agreement to acquire the assets of Mercy Hospital-Port Huron and Port Huron Hospital; that the proposed acquisition, if consummated, would violate Section 7 of the Clayton Act, as amended, 15 U.S.C. 18; and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, the Commission hereby issues its complaint, pursuant to Section 11 of the Clayton Act, 15 U.S.C. 21, stating its charges as follows:

I. DEFINITION

1. For purposes of this complaint, "acute care inpatient hospital services" means 24-hour inpatient health care, and related medical or surgical diagnostic and treatment services, for physically injured or sick persons with short-term or episodic health problems or infirmities.

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