UNITED STATES
DISTRICT COURT
WESTERN DISTRICT OF TEXAS
SAN ANTONIO DIVISION
FEDERAL TRADE COMMISSION,
Plaintiff,vs.
MARK NUTRITIONALS, INC.,
HARRY SISKIND, and
EDWARD G. D'ALESSANDRO, JR., Defendants. |
CIVIL NO. |
COMPLAINT FOR
PERMANENT INJUNCTION
AND OTHER EQUITABLE RELIEF
Plaintiff, Federal Trade Commission (the
"Commission"), through its undersigned attorneys, hereby alleges as
follows:
1. The Commission brings this action under
Section 13(b) of the Federal Trade Commission Act (the "FTC Act"), 15
U.S.C. § 53(b), to secure a permanent injunction, preliminary injunctive
relief, and other equitable relief against Defendants for engaging in
deceptive acts or practices and false advertisements for food, drugs,
devices, services or cosmetics, in or affecting commerce, in violation of
Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and 52. The
Commission brings this action to enforce Sections 5(a) and 12 of the FTC
Act under its police and regulatory powers.
JURISDICTION AND
VENUE
2. This Court has subject matter
jurisdiction of this matter pursuant to 15 U.S.C. §§ 45(a), 52 and 53(b),
and 28 U.S.C. §§ 1331, 1337(a), and 1345.
3. Venue in this district is proper under
15 U.S.C. § 53(b) and 28 U.S.C. § 1391(b) and (c).
THE PARTIES
4. Plaintiff Commission is an independent
agency of the United States Government created by statute. 15 U.S.C. §§
41, et seq. The Commission is charged, inter alia, with
enforcement of Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and
52, which respectively prohibit unfair or deceptive acts or practices in
or affecting commerce, and false advertisements for food, drugs, devices,
services or cosmetics in or affecting commerce. The Commission is
authorized to initiate Federal District Court proceedings to enjoin
violations of the FTC Act and to secure such equitable relief, including
consumer redress, as may be appropriate in each case. 15 U.S.C. § 53(b).
5. Defendant Mark Nutritionals, Inc.
("Mark"), is a Texas corporation with its headquarters and principal place
of business at 13311 San Pedro, San Antonio, Texas 78216. Mark transacts
or has transacted business in the Western District of Texas.
6. On September 17, 2002, Defendant Mark
Nutritionals, Inc. filed a voluntary petition for relief under the
reorganization provisions of Chapter 11 of the Bankruptcy Code, 11 U.S.C.
§§ 101 et seq., in the United States Bankruptcy Court for the
Western District of Texas, Case No. 02-54469-LMC (the "Corporate
Bankruptcy Case"). The Commission's action against Defendant Mark
Nutritionals, Inc. is not stayed by 11 U.S.C. § 362(a) because it is an
exercise of the Commission's police or regulatory power as a governmental
unit pursuant to 11 U.S.C. § 362(b)(4) and thus falls within an exception
to the automatic stay.
7. Defendant Harry Siskind is the
President, Chief Executive Officer, director and 50% shareholder of the
corporate Defendant Mark. He is one of only two officers, directors and
shareholders of the corporate Defendant. At all times relevant to this
Complaint, acting alone or in concert with others, he has formulated,
directed, controlled, had the authority to control or participated in the
acts and practices of Defendant Mark, including the acts and practices set
forth in this Complaint. He resides in or transacts or has transacted
business in the Western District of Texas.
8. Defendant Edward G. D'Alessandro, Jr. is
the Secretary and Treasurer, director and 50% shareholder of the corporate
Defendant Mark. He is one of only two officers, directors and shareholders
of the corporate Defendant. At all times relevant to this Complaint,
acting alone or in concert with others, he has formulated, directed,
controlled, had the authority to control or participated in the acts and
practices of Defendant Mark, including the acts and practices set forth in
this Complaint. He transacts or has transacted business in the Western
District of Texas.
COMMERCE
9. The acts and practices of Defendants, as
alleged herein, are in or affecting commerce, as "commerce" is defined in
Section 4 of the FTC Act, 15 U.S.C. § 44.
DEFENDANTS' COURSE
OF CONDUCT
10. Since at least January of 1999,
Defendants have engaged in the advertising, promotion, offering for sale
and sale of a purported weight loss product called Body Shaper and/or Body
Solutions Evening Weight Loss Formula ("Evening Formula") to consumers
throughout the United States. Defendants promote Evening Formula through
radio and television advertising, via the Internet, and through other
means. Consumers may order Evening Formula by calling a toll-free
telephone number or by ordering over the Internet. Recently, Defendants
began marketing Evening Formula through retail outlets, such as Wal-Mart,
Eckerd's, K-Mart and Walgreen's.
11. Evening Formula is a liquid product,
the active ingredients of which have changed over time. Evening Formula's
active ingredients currently include stevia, conjugated linoleic acid, and
"proprietary blends" of chromium (as chromium picolinate, chromium
polynicotinate, and chromium cruciferate), aloe vera gel, hydrolyzed
collagen, chicory, plant teas, and amino acids (L-lysine, L-ornithine, L-arginine,
L-carnitine, L-glycine and trimethylglycine).
12. Evening Formula labeling, advertising,
and promotional materials instruct consumers to take one tablespoon (15
ml.) of the product with eight ounces of water before going to bed and at
least three hours after consuming any food or liquid.
13. To induce consumers to purchase Evening
Formula, Defendants have disseminated or caused to be disseminated
advertisements for the product on over 650 radio stations in 110 cities
nationwide. Thirty- to sixty-second radio "spots" for Evening Formula in
English and Spanish have aired daily on radio stations across the United
States. Typically, the radio spots are "live reads" or taped spots by
radio personalities who have used Evening Formula, and who purport to
present their personal experience and/or the personal experience of other
consumers who have used the product. The English radio spots contain,
inter alia, the following statements and representations (the
complete text of each English radio advertisement is attached as Exhibit
A):
- a. "Body Solutions Evening Weight Loss
Formula. . . . With Body Solutions, you lose weight while you sleep. . .
. I have lost 10 pounds, been able to keep the weight off, down to a
size six, so excited. And you know what, if you are trying to lose
weight, Body Solutions could do the same thing for you, too. It's easy.
I have not been exercising, have not changed my diet, and yet, I was
able to lose the weight." (Stacey Brooks, KMLE, Country 108, Phoenix,
AZ, August 2000)
-
- b. "I've lost 20 pounds . . . and it's
staying off." (Trapper Jack, WDOK, Cleveland, OH, January 2001)
-
- c. "I could go for a nice sausage
biscuit with a side order of cheese grits and a couple of strips of
Jimmy's famous bacon. . . . I don't get to eat breakfast like this every
day. But thanks to Body Solutions lose weight while you sleep formula, I
can have my bacon, sausage and grits and still lose weight. I've lost
over 19 pounds so far and over an inch off my waistline." (Willard
Arbour, WZGC, Atlanta, GA, September 2000)
-
- d. "I've lost 23 pounds with Body
Solutions. I no longer look like an offensive lineman. I still eat like
one, though. And I can eat all my favorite Dome food. I mean, at the
game, you've got to have a Dome dog and some peanuts and nachos . . . .
But I'm not worried about it because you can eat whatever you want, as
long as you don't eat for three hours after your last meal or snack
before you go to bed and you take the Evening Weight Loss Formula with a
glass of water, the pounds just go away. You don't have to give anything
up. It's not a diet. You don't have to deprive yourself. You can still
have your favorite foods . . . " (Adam Abrams, KQQL, Minneapolis, MN,
September 2000)
-
- e. "This is so great because I am a food
lover. And this is the easiest thing I've ever found, because I eat
pretty much what I want all day long . . . . All I do is take a
tablespoon of the Body Solutions Evening Weight Loss Formula at the end
of the day with some water, on an empty stomach, and I've lost the
weight while I sleep. Fifteen pounds and I've been keeping it off.
That's right. Keeping it off." (Chris Zito, WPLT, Radio Detroit, MI,
October 2000)
-
- f. "Body Solutions . . . quite
definitely not a diet . . . . And you do it while you sleep, while
eating what you want to eat all day. . . . PAT: 'It's amazing to me that
something so simple can work so well, and I still eat all my favorite
foods and everything. You know me, I love pizza and I love beer and the
whole thing, and I haven't changed anything other than not eating three
hours before bedtime.' . . . It really does work." (Woody Johnson, WCOL
Radio, Columbus, OH, November 2000)
-
- g. "With Body Solutions Evening Weight
Loss Formula, you can eat whatever you want and lose weight while you
sleep. . . . I don't know how it works. All I know is that it works.
I've lost 22 pounds - my goal is 25 pounds - using nothing but Body
Solutions Evening Weight Loss Formula." (John McCulloch, WXYT Radio,
Detroit, MI, November 2000)
-
- h. "It helped me lose 36 pounds and it
helps me maintain through the holidays. I mean, I ate so much over
Thanksgiving, I still have turkey burps. But thanks to Body Solutions, I
keep the weight off and now I'm ready for Christmas. So, bring it on,
Grandma. The honey-baked ham, the apple pie, the Christmas cookies. I'm
not afraid because I've got Body Solutions Evening Weight Loss Formula.
. . . Get on the Body Solutions Evening Weight Loss Formula right now
and you'll be ready for Christmas." (Jeff Kaye, KKMR, Dallas, TX,
December 2000)
-
- i. "I have finally lost those 20 pounds
and I did it with Body Solutions Evening Weight Loss Formula, and it was
simple. All I had to do was take a spoonful of Body Solutions Evening
Weight Loss Formula with a glass of water before bed about three hours
after eating my last meal of the day and that is it. That's all I had to
do. Body Solutions goes to work while I'm sleeping, burning away at my
fat. I was losing weight while I slept. . . . With Body Solutions, you
don't change the foods you love to eat, and you will still lose that
weight." (Mitch Elliot, WFOX, Atlanta, GA, in or around March 2001)
-
- j. "[L]et's throw out a number . . . 28,
and that is the number of pounds that are no longer on me. . . . How
about something that's not a diet, a weight loss plan where you eat what
you want when you want to have it, as long as you stop three hours
before you go to bed. You take a tablespoon of Body Solutions with a
glass of water at bedtime . . . and that's working for me. Twenty-eight
pounds . . . . Check out the website for their scientific research and
their studies . . . ." (John Carney, KMOX, St. Louis, MO, in or around
April 2001)
-
- k. "Look, I've lost 25 pounds. . . .
This is the program where you eat what you want. And thank you Body
Solutions. I have another full room in my house. The bench that I used
for all my weights, that's gone. . . . I've replaced it all with a
bottle that fits nicely in the corner of my refrigerator." (Jim
LaBarbara, Oldies WGRR, Cincinnati, OH, in or around May 2001)
-
- l. "Body Solutions is something that
truly works. I've dropped 16 pounds now thanks to Body Solutions, taken
an inch off my waist, and it really is all happening while I'm asleep
and I can eat whatever I want, too. That's the way Body Solutions works.
. . . And the really neat thing is I can eat whatever I want to, don't
have to exercise if I don't feel like it . . . ." (Read Shepard, WDUV,
Tampa, FL, June 2001)
-
- m. "I'm on the way to 40 pounds of
weight loss. I am at 18 pounds now. . . . And you can start losing
weight just like I have, so what are you doing? Are you trying to get on
a diet you don't need to be worried about? Are you trying to go out to
the gym five, six times a week? You don't need to do that. Your solution
to your weight loss is just like I have decided to do. It's Body
Solutions. One tablespoon at night three hours after your last meal and
you're gonna start taking off the pounds just as I did." (Rudy V, KRNB,
Dallas, TX, in or around June 2001)
-
- n. "[S]ince I started taking Body
Solutions about a month ago, I've already lost 10 pounds and a couple of
inches off my waistline. . . . I actually lose weight while I sleep . .
. and I don't have to do some big exercise regimen or change anything
about what I eat. I've been eating all my favorite foods and still lost
10 pounds in the last month." (Jerry Jones, KCIY-FM, Kansas City, MO, in
or around June 2001)
-
- o. "I lost eight pounds on Body
Solutions. I've had it on for a couple of months. I have not put an
ounce back on. . . . All the things you have to do to lose weight, you
don't have to worry about with Body Solutions. You take a glass of
water, a tablespoon of Body Solutions three hours after your last meal
of the evening. You don't have to exercise. It's not a diet. It burns
fat while you sleep . . . ." (Dan & Steve, WISH, Pittsburgh, PA, July
2001)
-
- p. "Body Solutions Evening Weight Loss
Formula is an all-natural solution, when taken every night on an empty
stomach right before you go to bed, will help you to lose weight while
you sleep. It's that easy. No dangerous drugs, no diet, no side
effects." (Charles Osgood, Westwood One Radio Network with over 400
affiliates nationwide, July 2001)
-
- q. "I'm doing great on their Evening
Weight Loss Formula. . . . I'm dropping weight. The pounds are dropping
like flies. It's totally natural, completely safe, proven effective. You
can check out the research at bodysolutions.com." (Renee Brinkley, K101,
San Francisco, CA, September 2001)
-
- r. "Here's what the CEO of Body
Solutions, Harry Siskind, had to say about it. HARRY SISKIND: 'We're
like Coca-Cola, nobody has the formula. It's under lock and key. We have
spent millions of dollars for clinical studies to prove the efficacy of
our product and to protect our consumers, and this has been going on for
years. . . .'" (Brian and Joe, WMVX, Cleveland, OH, September 2001)
14. To induce Spanish-speaking consumers to
purchase Evening Formula, Defendants have disseminated or caused to be
disseminated Spanish-language radio advertisements which contain,
inter alia, the following statements and representations (an
English-language translation follows each quote) (the complete text both
in Spanish and English of each radio advertisement is attached as Exhibit
B):
- a. "Bien sencillo, Héctor, solamente con
una cucharada sopera de Body Solutions diluído en ocho onzas de agua es
suficiente para que tú bajes tallas, pierdas peso. Y ésto es durante la
noche. Tú vas a perder peso durante la noche. Así que tómalo porque, ¿sabes
qué? No hay ninguna necesidad de hacer una dieta especial o drástica, ni
dramática, para perder de peso. No te mueras de hambre, mejor toma Body
Solutions durante en la noche." (Translation: It's easy, Hector. Just
one tablespoon of Body Solutions in eight ounces of water is enough for
you to have to change your dress size and lose weight. And this happens
during the night. You are going to lose weight during the night. So take
it; do you know why? It requires no special, drastic nor dramatic diet
in order to slim down. Don't kill yourself going hungry; it is better to
take Body Solutions at bed time.) (unidentified radio personality)
-
- b. "¡Qué tal! Te saluda Pepe Duarte, el
hombre mas feliz del mundo. . . . Aquí donde está precisamente el lugar
en donde se vende el líquido milagroso de Body Solutions. . . . Solo
deja de comer tres horas antes de irte a dormir y al acostarte tómate
una cucharada de Body Solutions con un vaso de agua. Y a bajar de peso
durmiendo. A mí me preguntan que si estoy enfermo, que si estoy ahí en
el gimnasio todos los días. No. Yo simplemente como lo regular, pero
antes de irme a acostar tres horas antes dejo de comer. Y entonces al
acostarme ahí estoy tomando mi Body Solutions. ¿El resultado? Ven a ver
este cuerpo escultural que tenemos ahora con trece libras menos. Y sin
exagerarte." (Translation: Hello there! This is Pepe Duarte, the most
happy man in the whole world. . . . Here where we sell the magic liquid
called Body Solutions. . . . You only need to stop eating three hours
before retiring to bed; before bed time take one tablespoon of Body
Solutions in a glass of water. And you'll lose weight while sleeping. A
lot of people ask me if I am sick, or if I go every day to the gym. No!
I simply eat as usual, but I stop eating food three hours before my bed
time. And then when I am ready to go to bed I take my Body Solutions.
The result? Come and look at my shapely body with thirteen pounds less.
And we are not exaggerating.) (Pepe Duarte, KCOR, FM-95.1, San Antonio,
Texas)
-
- c. "Pero principalmente queremos
convencerte de que Body Solutions es el producto ideal para bajar de
peso. Body Solutions, baja de peso mientras usted duerme. Es muy
sencillo de tomarlo. Simplemente hágalo tres horas antes de que se vaya
a dormir. Y al acostarse tómese una cucharada de Body Solutions con un
vaso de agua. Así de sencillo y fácil. No tiene usted que andarse
esmerando en dietas fuertes. Tampoco con ejercicios drásticos y mucho
menos como, por ejemplo, estar allí en los gimnasios. Pero, no, no, no.
Simplemente usted trabaja su vida normal y lo único que tiene que hacer
es simplemente antes de irse a dormir, tres horas antes no comer nada y
luego tomarse una cucharada de Body Solutions." (Translation: But, most
of all, we want to convince you that Body Solutions is the ideal product
to lose weight. Body Solutions, lose weight while you sleep. It's very
easy to take. Take it simply three hours before bed time. And when you
are ready to go to bed take a tablespoon of Body Solutions in a glass of
water. It's easy and simple to take. You don't have to follow any diets,
or go through drastic exercises nor, for example, go to the gym. No, no,
no! Just continue with your normal life. The only thing you would do is
simply before going to bed is to stop eating three hours before, and
then you take a tablespoon of Body Solutions.) (Pepe Duarte, KCOR,
FM-95.1, San Antonio, Texas)
-
- d. "A ustedes, chicos y chicas, si son
de las personas que al igual que yo padecen del problema de peso. Que es
difícil bajar de peso. Yo les recomiendo algo que, de verdad, es la
solución. Body Solutions! . . . Trabaja mientras duermes. Yo en lo
personal no lo siento como una dieta. Yo bajé más de diez libras y
super-contenta porque ningún otro producto, ninguna otra dieta, me ha
resultado como Body Solutions. Porque si acaso bajaba de peso, en cuanto
lo dejaba de usar volvía a subir hasta el doble de lo que había perdido.
Y Body Solutions ha cambiado mi vida porque ahora hasta visto diferente
mi ropa, que la verdad que siempre quería usar y mas ahora que viene el
verano. ¡A lucir buena figura!" (Translation: To you, guys and gals, if
you are people like me suffering from a weight problem. It's very
difficult to lose weight. I recommend to you something that is truly the
solution. Body Solutions! . . . It works while you sleep. Personally, I
don't feel like I am on a diet. I already lost more than ten pounds and
I am very happy because no other product nor diet has been so effective
like Body Solutions. Because when I used to lose weight before, when I
stopped, I regained double of what I lost before. And Body Solutions
changed my life because now I can wear my different outfits, clothes
that I wanted to use before. Especially now that summer is around the
corner. Show-off a shapely body!) (Kelly Granados, New 106.5)
15. To induce consumers to purchase Evening
Formula, Defendants also advertise, promote and market Evening Formula via
an Internet Website at www.bodysolutions.com.
The Body Solutions website
contains testimonials with before and after photos of endorsers, answers
to frequently asked questions, characterizations of research studies
conducted on their products, and representations about Evening Formula.
These representations include, inter alia, the following
statements and representations (copies of the particular web pages from
the Body Solutions website which contain the following quotes are attached
as Exhibit C):
- a. "Johnny Ramirez [:] Lost: 56
pounds Kept Off: 6 months [:] Fat, according to Johnny Ramirez,
is the enemy of Hispanics. . . . To date, Ramirez has dropped 56 pounds
. . . using the Body Solutions Evening Weight Loss Formula . . . . The
culprit for the weight problems of Texan Hispanics, says Ramirez, '. . .
are all the wrong kinds of foods . . . the greasy and fried foods that
we love . . . I'm one of them and they know I love the same foods they
do. I'm one of the overweight Hispanics who works very hard at his job
but who hates to work out.' Ramirez hasn't changed his diet but has
curbed his late night eating tendencies. Despite dropping off the
product for one six month period he has dropped from 287 pounds to 231
pounds. . . . 'Some guy will say 'hey . . . . Do you still love to eat?'
and of course they can see that I do because they are always bringing
tacos and donuts to the broadcast booth.' " (Johnny Ramirez)(10/22/01
web site)
-
- b. "Vernon Copp [:] Lost: 70
pounds Kept Off: 10 months . . . 'I was 290 pounds in the photo
and I said 'that's it!' he remembers. He began taking Body Solutions
Evening Weight Loss Formula™ and set his sights on success. . . .
'Nothing dramatic happened for about a month and a half and then all of
a sudden, over two or three weeks, I lost 25 pounds,' said Copp, who
lost a grand total of 70 pounds in six months." (Vernon Copp)(10/22/01
web site)
-
- c. "Chuck Davies [:] Lost: 45
pounds Kept Off: 18 months . . . 'I pretty much ate what I wanted
. . . and took the night time product at least three hours after dinner,
and right before I went to bed.' . . . Chuck also watched what he ate
for dinner . . . to accelerate the effects of the Evening Weight Loss
Formula. . . . 'I lost 17 pounds in the first month' he says. 'I could
hardly believe it because I was never starving to death like I was on
all the other diets I'd tried.'" (Chuck Davies)(10/22/01 web site)
-
- d. "The Research Studies [:] Mark
Nutritionals has conducted more research in its first two years of
operation than almost any nutritional company in America during its
beginning years - 10 studies, 8 of which were clinical trials conducted
by independent research teams. Taken together, these studies provide
compelling evidence that, when used as instructed, the Body Solutions
Weight Management System has minimal adverse side effects and can:
- Reduce excess body fat
- Maintain or enhance lean muscle mass .
. ." (10/22/01 web site)
- e. "Frequently Asked Questions . . .
-
-
Q: Do I have to diet and /or exercise
when using this?
-
A: While diet and exercise will always
be good for you, they are not required for your body to use the Body
Solutions Evening Weight Loss Formula. The body is looking to repair
itself every evening, and these are the tools it needs to build muscle
and burn fat during this cycle . . .
-
Q: Is the weight going to come back
after I stop using the Evening Formula?
-
A: Our products were specifically
designed to be slow and gradual so that when the weight comes off it
will stay off. The 'bounce back' or 'Yo-Yo' effect will not manifest
itself . . ." (6/8/01 web capture)
- f. "Evening Weight Loss Formula™ [:]
When taken on an empty stomach without eating at least 3 hours before
going to sleep, clinical trials found people lost fat without losing
lean and the more closely they followed the system, the more success
they had." (6/8/01 web capture)
16. To induce consumers to purchase Evening
Formula, Defendants also advertise, promote and market Evening Formula
through the use of product brochures. A June 1, 1999 product brochure for
"Body Shaper," an early version of the Evening Formula product, includes,
inter alia, the following statements and representations (the
complete text of the portion of the brochure discussing Body Shaper is
attached as Exhibit D):
- "'I don't have the luxury of hours at a
gym or exercise to slim down. After a month on the Body Shaper
program, I don't have to. I've lost two dress sizes, sleep more soundly,
and wake up rejuvenated & ready to seize the day!' Kim Vernie - Miami,
FL"
17. To induce consumers to purchase Evening
Formula, Defendants also have aired thirty- and sixty-second television
advertisements for Evening Formula on television stations.
The television advertisements contain, inter alia,
the following statements and representations in "testimonials":
- a. "The most sensible way to do it - and
still be able to eat what you want to eat. . . . . You eat what you want
to eat and still lose weight. . . . My favorite thing about it? . . .
That I can eat what I want to eat and that I don't have to exercise that
much and it works while I'm sleeping. . . . [I've lost] 25 pounds."
-
- b. "I eat all I want . . . whatever I
want. . . . I'm 32 pounds lighter."
-
- c. "It's like a dream come true - it's a
miracle! . . .Where else can you eat all the foods that you love and
still lose weight? . . . [I've lost] 41 pounds."
The quoted testimonials appear in a
60-second television advertisement, produced by Defendant Siskind in
October of 2000. Prominently superimposed over the videotaped endorsers is
a "dancing" graphic representation of a bottle of Evening Formula.
18. Defendants have charged approximately
$48, plus shipping and handling, for one 15-ounce bottle of Evening
Formula. One bottle is approximately one month's supply of the product.
Defendants' advertising and marketing indicate that consumers must take
the product for 60 to 90 days in order to see "results."
DEFENDANTS'
VIOLATIONS OF THE FTC ACT
19. Section 5(a) of the FTC Act, 15 U.S.C.
§ 45(a), prohibits unfair or deceptive acts or practices in or affecting
commerce. Section 12(a) of the FTC Act, 15 U.S.C. § 52(a), prohibits the
dissemination of any false advertisement in or affecting commerce for the
purpose of inducing, or which is likely to induce, the purchase of food,
drugs, devices, services or cosmetics. For purposes of Section 12 of the
FTC Act, 15 U.S.C. § 52, Evening formula is a "food" or a "drug" within
the meaning of Sections 15(b) and (c) of the FTC Act, 15 U.S.C. §§ 55 (b)
and (c). As set forth below, Defendants have engaged and continue to
engage in violations of Sections 5(a) and 12 of the FTC Act in connection
with the marketing and sale of Evening Formula.
False
Representations Regarding Efficacy
Count 1
20. Through their advertising and
promotional materials, including but not limited to the representations
set forth in Paragraphs 13 through 17 above, Defendants have represented,
expressly or by implication, that Evening Formula will cause substantial
weight loss, including as much as 20 to 40 pounds, without the need to
diet or exercise.
21. In truth and in fact, Evening Formula
will not cause substantial weight loss, including as much as 20 to 40
pounds, without the need to diet or exercise. Therefore, Defendants'
representation as set forth in Paragraph 20 is false or misleading and
constitutes a deceptive act or practice in violation of Section 5(a) of
the FTC Act, 15 U.S.C. § 45(a), and is a false advertisement in or
affecting commerce, in violation of Section 12 of the FTC Act, 15 U.S.C. §
52.
Count 2
22. Through their advertising and
promotional materials, including but not limited to the representations
set forth in Paragraphs 13 through 17 above, Defendants have represented,
expressly or by implication, that Evening Formula will cause substantial
weight loss even if users eat substantial amounts of high calorie foods
such as pizza, beer, tacos, nachos, cheese grits, and donuts.
23. In truth and in fact, Evening Formula
will not cause substantial weight loss, even if users eat substantial
amounts of high calorie foods such as pizza, beer, tacos, nachos, cheese
grits, and donuts. Therefore, Defendants' representation as set forth in
Paragraph 22 is false or misleading and constitutes a deceptive act or
practice in violation of Section 5(a) of the FTC Act, 15 U.S.C. § 45(a),
and is a false advertisement in or affecting commerce, in violation of
Section 12 of the FTC Act, 15 U.S.C. § 52.
Count 3
24. Through their advertising and
promotional materials, including but not limited to the representations
set forth in Paragraphs 13 through 17 above, Defendants have represented,
expressly or by implication, that Evening Formula will cause substantial
long-term or permanent weight loss.
25. In truth and in fact, Evening Formula
will not cause substantial long-term or permanent weight loss. Therefore,
Defendants' representation as set forth in Paragraph 24 is false or
misleading and constitutes a deceptive act or practice in violation of
Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), and is a false
advertisement in or affecting commerce, in violation of Section 12 of the
FTC Act, 15 U.S.C. § 52.
False
Representations Regarding Scientific and Clinical Studies
Count 4
26. Through their advertising and
promotional materials, including but not limited to the representations
set forth in Paragraphs 13 through 17 above, Defendants have represented,
expressly or by implication, that Evening Formula is clinically proven to
cause substantial weight loss, to burn a substantial amount of body fat,
and to build a substantial amount of lean muscle mass, all without the
need to diet or exercise.
27. In truth and in fact, Evening Formula
is not clinically proven to cause substantial weight loss, to burn a
substantial amount of body fat, and to build a substantial amount of lean
muscle mass, all without the need to diet or exercise. Therefore,
Defendants' representation as set forth in Paragraphs 26 is false or
misleading and constitutes a deceptive act or practice in violation of
Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), and is a false
advertisement in or affecting commerce, in violation of Section 12 of the
FTC Act, 15 U.S.C. § 52.
Unsubstantiated
Representations Regarding Efficacy
Count 5
28. Defendants did not possess and rely
upon a reasonable basis that substantiated the representations set forth
in Paragraphs 20, 22, and 24 at the time the representations were made.
Therefore, the making of the representations set forth in Paragraphs 20,
22, and 24 constitutes a deceptive act or practice in violation of Section
5(a) of the FTC Act, 15 U.S.C. § 45(a), and the making of false
advertisements, in violation of Sections 5(a) and 12 of the Federal Trade
Commission Act, 15 U.S.C. §§ 45(a) and 52.
CONSUMER INJURY
29. Consumers throughout the United States
have suffered and continue to suffer substantial monetary loss as a result
of Defendants' unlawful acts or practices. In addition, Defendants have
been unjustly enriched as a result of their unlawful acts or practices.
Absent injunctive relief from this Court, Defendants are likely to
continue to injure consumers, reap unjust enrichment, and harm the public
interest.
THIS COURT'S POWER
TO GRANT RELIEF
30. Section 13(b) of the FTC Act, 15 U.S.C.
§ 53(b), empowers this Court to grant injunctive and such other relief as
the Court may deem appropriate to halt and redress violations of the FTC
Act. The Court, in the exercise of its equitable jurisdiction, may award
other ancillary relief, including consumer redress, disgorgement, and
restitution, to prevent and remedy injury caused by Defendants' law
violations.
PRAYER FOR RELIEF
WHEREFORE, Plaintiff Commission requests
that this Court, as authorized by Section 13(b) of the FTC Act, 15 U.S.C.
§ 53(b), and pursuant to its own equitable powers:
- a. Award Plaintiff preliminary
injunctive relief as may be necessary to avert the likelihood of
consumer injury during the pendency of this action and to preserve the
possibility of effective final relief from individual Defendants Harry
Siskind and Edward G. D'Alessandro, Jr.;
-
- b. Permanently enjoin Defendants from
violating Sections 5 and 12 of the FTC Act,
- 15 U.S.C. §§ 45 and 52, in connection
with the advertising and sale of any food, drug, device, cosmetic or
other products, services or programs;
-
- c. Award such equitable relief as the
Court finds necessary to redress injury to consumers resulting from
Defendants' violations of the FTC Act, including, but not limited to,
the rescission of contracts, the refund of monies paid, and the
disgorgement of ill-gotten gains and, as to Defendant Mark Nutritionals,
Inc., allow Plaintiff a general unsecured claim in the Corporate
Bankruptcy Case in the amount of such award, the payment of which shall
be governed by and pursuant to the distribution and priority provisions
of the Bankruptcy Code if the Corporate Bankruptcy Case has not been
dismissed;
-
- d. Award Plaintiff the refund of monies
paid and the disgorgement of ill-gotten gains from each Defendant
jointly and severally and, as to Defendant Mark Nutritionals, Inc.,
allow Plaintiff a general unsecured claim in the Corporate Bankruptcy
Case in the amount of such award, the payment of which shall be governed
by and pursuant to the distribution and priority provisions of the
Bankruptcy Code if the Corporate Bankruptcy Case has not been dismissed;
-
- e. Award Plaintiff the costs of bringing
this action and, as to Defendant Mark Nutritionals, Inc., allow
Plaintiff a general unsecured claim in the Corporate Bankruptcy Case in
the amount of such award, the payment of which shall be governed by and
pursuant to the distribution and priority provisions of the Bankruptcy
Code if the Corporate Bankruptcy Case has not been dismissed;
-
- f. Award Plaintiff pre- and
post-judgment interest and, as to Defendant Mark Nutritionals, Inc.,
allow Plaintiff a general unsecured claim in the Corporate Bankruptcy
Case in the amount of such award, the payment of which shall be governed
by and pursuant to the distribution and priority provisions of the
Bankruptcy Code if the Corporate Bankruptcy Case has not been dismissed;
and
-
- g. Grant such other and additional
equitable relief as the Court may deem just and proper.
Dated:
Respectfully Submitted:
WILLIAM E. KOVACIC
General Counsel
BRADLEY M. ELBEIN
Director, Southwest Region
THOMAS B. CARTER
Texas State Bar No. 03932300
DEBORAH W. DAWSON
New York State Bar No.1658889
FREDERIC DUNSKY
Texas State Bar No. 06262950
Federal Trade Commission
1999 Bryan Street, Suite 2150
Dallas, Texas 75201
(214)979-9372 (Carter)
(214)979-9395 (Dawson)
(214)979-9362 (Dunsky)
(214)953-3079 (fax)
Attorneys for Plaintiff |