Doctors Medical Weight Loss Centers, Inc

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

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

259 Complaint

IN THE MATTER OF

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

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

Docket C-3516. Complaint, Aug. 11, 1994--Decision, Aug. 11, 1994

This consent order prohibits, among other things, the Florida commercial diet program companies and their officer from misrepresenting the performance or safety of any diet program they offer in the future, and requires the respondents to possess competent and reliable scientific evidence to substantiate any future claims they make about weight loss, weight loss maintenance, or rate of weight loss; to make a number of disclosures regarding maintenance success claims; and to disclose all mandatory fees.

Appearances

For the Commission: Eric Bash, Matthew Daynard and Richard F. Kelly.

For the respondents: Gabriel Imperato, Broad & Cassell, Fort Lauderdale, FL.

COMPLAINT

The Federal Trade Commission, having reason to believe that Doctors Medical Weight Loss Centers, Inc. ("DMWLC"), Doctors Weight Loss Centers, Inc. ("DWLC"), and Joyce A. Schuman, individually and as an officer of said corporations (hereinafter, collectively, "respondents"), have 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. (a) Respondents DMWLC and DWLC are Florida corporations, formerly doing business, with their principal offices and places of business located at 5479 A North Federal Highway, Fort Lauderdale, Florida.

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

Complaint 118 F.T.C.

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

(c) Respondents have cooperated and acted together in carrying out the acts and practices alleged in this complaint. PAR. 2. Respondents have advertised or otherwise promoted, offered for sale, and sold, weight reduction and weight control programs and products, and have made them available to consumers at their weight loss centers. Respondents have offered for sale and sold diet programs of 800 to 1500 calories per day, that include food, as "food" is defined in Section 15 of the Federal Trade Commission Act.

PAR. 3. In the course and conduct of their business, respondents have disseminated or have caused to be disseminated advertisements for weight reduction and weight control programs and products. Respondents have placed these advertisements with various media for the purpose of inducing consumers to purchase their programs and products. Respondents have further advertised their weight loss programs through the use of promotional materials, including pamphlets and brochures, given to customers and prospective customers at individual weight loss center locations. PAR. 4. The acts and practices of respondents alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act. PAR. 5. Respondents' advertisements and promotional materials include, but are not necessarily limited to, the advertisements and promotional materials attached hereto as Exhibits A-O. PAR. 6. The advertisements and promotional materials referred to in paragraph five, attached hereto as Exhibits A-J, contain the following statements:

(a) "Permanent Weight Loss" (Exhibit A) (b) "Lose 3-8 pounds per week, safely, economically, and permanently with professional supervision." (Exhibit B) (c) "WHAT MAKES A WEIGHT LOSS PROGRAM GREAT? ... Results should be long lasting & offer a lifetime solution to a weight problem ... GUESS WHAT! ... We just described the DOCTORS WEIGHT LOSS PROGRAM." (Exhibits C-E) (d) "Doctors Weight Loss Advantage You Keep The Weight Off" (Exhibit F) (e) "The best way to lose weight and keep it off" (Exhibit G) (f) "TAKE IT OFF ... AND KEEP IT OFF!" (Exhibit H)

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 261

259 Complaint

(g) "WHAT MAKES OUR PROGRAM THE BEST? ... LONG-LASTING RESULTS ... '3 years later and I'm still slim, trim, healthy. It's no problem staying a size 5 ....'" (Exhibit I) (h) "I reached my goal and lost 30 lbs. in just 10 weeks." (Exhibit J)

PAR. 7. Through the use of the statements contained in the advertisements referred to in paragraph six, and others in advertisements or promotional materials not specifically set forth herein, respondents have represented, directly or by implication, that:

(a) DMWLC/DWLC customers typically are successful in reaching their weight loss goals and maintaining their weight loss either long-term or permanently; (b) DMWLC/DWLC customers typically are successful in maintaining their weight loss achieved under the DMWLC/DWLC diet program; and (c) DMWLC/DWLC customers typically are successful in reaching their weight loss goals.

PAR. 8. Through the use of the statements contained in the advertisements referred to in paragraph six, and others in advertisements or promotional materials not specifically set forth herein, respondents have represented, directly or by implication, that at the time they made the representations set forth in paragraph seven, respondents possessed and relied upon a reasonable basis that substantiated such representations.

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

PAR. 10. The advertisements referred to in paragraph five, attached hereto as Exhibits A, C, D-F, and J-N contain the following statements:

(a) "$11 PER WEEK" (Exhibits A, F, J, L-N) (b) "$15 PER WEEK" (Exhibit C) (c) "$8 PER WEEK" (Exhibits D and E) (d) "$9 PER WEEK" (Exhibit K)

Complaint 118 F.T.C.

PAR. 11. Through the use of the statements contained in the advertisements referred to in paragraph ten, and others in advertisements or promotional materials not specifically set forth herein, respondents have represented, directly or by implication, that the advertised price is the only cost associated with losing weight on the DMWLC/DWLC weight loss program.

PAR. 12. In truth and in fact, the advertised price is not the only cost associated with losing weight on the DMWLC/DWLC weight loss program. There are substantial, additional mandatory expenses associated with participation in the DMWLC/DWLC weight loss program. Therefore, respondents, representation as set forth in paragraph eleven was and is false and misleading.

PAR. 13. In advertising the price of the DMWLC/DWLC weight loss program, respondents have failed to disclose to consumers the existence and amount of all mandatory expenses associated with participation in the DMWLC/DWLC weight loss program. This fact would be material to consumers in their purchase or use decisions regarding the weight loss program. In light of respondents' representation as set forth in paragraph eleven that the quoted price represents the only cost associated with the DMWLC/DWLC weight loss program, said failure to disclose was and is a deceptive practice.

PAR. 14. The advertisements referred to in paragraph five, attached hereto as Exhibits B, L, M, and N, contain the following statements:

(a) "Lose 3-8 pounds per week, safely, economically, and permanently with professional supervision." (Exhibit B) (b) "START TODAY BE 30 LBS. LIGHTER IN 30 DAYS!" (Exhibit L) (c) "LOSE 3 TO 7 LBS. A Week" (Exhibit M) (d) "LOSE 3-6 LBS. A WEEK" (Exhibit N)

PAR. 15. Through the use of the statements contained in the advertisements referred to in paragraph fourteen, and others in advertisements or promotional materials not specifically set forth herein, respondents have represented, directly or by implication, that consumers following the DMWLC/DWLC weight loss program typically lose weight at an average rate of:

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

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

259 Complaint

PAR. 16. The advertisements referred to in paragraph five, attached hereto as Exhibits C-E and N contain the following statements:

(a) "LOSE UP TO 7 LBS PER WEEK" (Exhibits C, D) (b) "LOSE UP TO 6 LBS. PER WEEK" (Exhibit E) (c) "Up to 6 lbs. per week weight loss" (Exhibit N)

PAR. 17. Through the use of the statements contained in the advertisements referred to in paragraph sixteen, and others in advertisements or promotional materials not specifically set forth herein, respondents have represented, directly or by implication, that an appreciable number of consumers following the DMWLC/DWLC weight loss program typically lose weight at an average rate of six to seven pounds per week.

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

PAR. 19. In truth and in fact, at the time respondents made the representations set forth in paragraphs fifteen and seventeen, they did not possess and rely upon a reasonable basis that substantiated such representations. Therefore, respondents' representation as set forth in paragraph eighteen was and is false and misleading.

PAR. 20. In the routine course and conduct of their business, respondents have provided their customers with diet protocols that required said customers, inter alia, to come in to one of respondents' weight loss centers three to six times a week for monitoring of their progress, including weighing in. In the course of regularly ascertaining weight loss progress, respondents, in some instances, have been presented with weight loss results indicating that customers have been losing weight significantly in excess of their projected goals, which is an indication that they may not have been consuming all of the food prescribed by their diet protocol. Such conduct could, if not corrected promptly, result in health complications.

PAR. 21. When presented with the weight loss results described in paragraph twenty, respondents, on many occasions, have not

Complaint 118 F.T.C.

disclosed to the customers that failing to follow the diet protocol and consume all of the calories prescribed could result in health complications. This fact would be material to customers in their purchase or use decisions regarding the weight loss program. In light of respondents' practice of monitoring customers, said failure to disclose was and is a deceptive practice.

PAR. 22. The acts and practices of respondents as alleged in this complaint constitute deceptive acts or practices, and the making of false advertisements, in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act.

Commissioner Owen was recorded as voting in the affirmative, but dissenting as to the exception requiring full numerical disclosures involving quantitative weight loss maintenance claims in short radio and TV ads.

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 265

259 Complaint

EXHIBIT A

BRO MONDAY, JUNE 18, 1990, THE MIAMI HERALD 3C

"FOR THE FIRST TIME EVER! I WEAR A SIZE 8 AFTER LOSING 56 LBS." Believe it!

Before Lbs.

"And my doctor is amazed! At last I'm off all blood pressure medication and my cholesterol improved. I spent enormous amounts of money on every other weight loss program but to no avail.

At D.Q.W.L. I learned how to eat right, lose weight and keep it off. Everyone comments on the New me!"

Lila Nikla Homestead Fast! Safe! Permanent Weight Loss

After Lbs.

The Doctors NEW Weight Loss Program Easier Simpler & Faster Than Ever! Learn how to lose weight and keep it off living in today's "Real World", eating Real Food, even Fast Food from McDonalds, Wendys and lots more. Lose weight more easily than you ever thought possible.

Lose weight while eating real food that you buy at the supermarket and prepare yourself.

For your convenience — delicious fresh frozen meals at low supermarket prices.

One on One Personal Supervision thru out. Learn what to eat & how to order while eating at McDonald's, Denny's, Red Lobster, etc... and still lose weight & stay thin for life.

ONLY $11* per week 6 wk. minimum

Permanent Weight Loss Tapes Now Available. Open To The Public.

CALL TO SEE HOW EASY IT IS!

DOCTORS WEIGHT LOSS CENTERS

DADE • Kendall ........................ 271-8110 • Westchester/Tamiami..... 551-1121 • Cutler Ridge ................. 255-0008 • North Miami Beach ........ 653-5227 • Hialeah ........................ 557-4993 • Brickell....................... 372-0057 • Aventura....................... 935-0286 • Homestead.................... 245-4227

BROWARD • Weston/Pembroke Pines 432-9247 • Pompano/Deerfield ....... 426-9773 • Ft. Lauderdale .............. 563-4699 • Coral Springs ............... 753-5000 • Plantation .................... 749-0995 • Hollywood .................... 961-5033 *Weight Loss Varies With The Individual *Excludes Medical Fees/Supplements. New clients only

PALM BEACH • Boca Raton ................... 479-4446 • Delray/Boca.................. 272-5454 • North Palm Beach......... 863-5337 • West Palm Beach.......... 478-1446 • Lake Worth................... 969-2221 • Stuart.......................... 287-0066 WEEKDAYS 8 AM-8 PM — SAT. TILL 1 PM Major credit cards accepted

Complaint 118 F.T.C.

EXHIBIT B

Small Business Owners UNLOCK YOUR BUSINESS POTENTIAL!! With over 20 years experience operating & managing small businesses, I am available on a Full/Part Time basis to assist you in the following areas:

* Accounting * Solving * Managing * Marketing Problems * Scheduling * Controlling * Computerizing * Purchasing Inventory * Planning * Training Invest in a call to Dan at TMCS, Inc., 792-4698, to discuss unlocking your business potential.

DO YOU KNOW...

Being Overweight is Hazardous To Your... WEALTH? You know that being overweight hurts your health. Did you know it hurts your wealth as well? Heavy people are hired less, fired more, paid and promoted less - all because of stereotypes and appearance. With today's economy, you can't afford not to look your best. Lose 3-8 pounds per week, safely, economically, and permanently with professional supervision. Don't let an expanding waistline cut into your bottom line! Call now for free consultation DOCTORS WEIGHT LOSS CENTERS Ft. Laud......565-4699 Pompano........426-9775 Hollywood...961-5053 Crl. Spgs........755-5000 Plantation...749-0295 Weston.........432-9247 Boca Raton..479-4466 Delray Beach..272-5454 For other locations, call 1-800-940-SLIM

6% DISCOUNT On All Travel including Amtrak - SR. Citizen Coupon Booklets Cruises - Tours - Hotels Etc.

Not applicable to airline tickets - and special promotional offers

Investo convert to bond Federal Reserve c interest rates to 5 Money S teadily sliding in rates, cut anothe point to 5 1/2 perce week by the Fe Reserve, have pr ed income-oriented small tors to shift billions of dollar low-yielding money-market to bond mutual funds paying cent or more, according to gathered for Money maga Small Investor Index.

Since mid-December, the deral Reserve has cut the dis rate — which it charges on to banks — three times. D that period, money fund have shrunk from an avera 7.4 percent to 5.9 percent.

most analysts expect yields t another half-point during the six weeks.

While some of the cash co out of money funds has gone stocks, income-oriented smal vestors have rushed into t funds that still pay 8 percer more. In March, for instance Investment Company Institute ports that investors redeeme net $973 million from money f and added a net $4.4 billion to l

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 267

259 Complaint

EXHIBIT C

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

WHAT MAKES A WEIGHT LOSS PROGRAM GREAT?*

"I LOST 43 LBS.

IN JUST 15 WEEKS"

"I needed HELP! I couldn't do it on my own.

It was easy to follow and I wasn't hungry. The nice part was I could eat regular food & still lose!"

..JEAN HALL

LOSE UP TO 7 LBS PER WEEK

BEFORE 167 LBS.

* Must be safe, easy and no special foods to buy * Must be flexible in all situations such as eating out in fast food outlets & restaurants * Results should be long lasting & offer a life time solution to a weight problem. * Must be affordable & Drug Free GUESS WHAT!... We just described the DOCTORS WEIGHT LOSS PROGRAM. Call now for you FREE consultation.

AFTER 124 LBS.

LAST CHANCE FINAL DAYS !

$15 PER WEEK* EXP. 9/22/90 New Programs Only

DOCTORS WEIGHT LOSS CENTERS

DADE BROWARD PALM BEACH [illegible]

*EXCLUDES MEDICAL FEES/SUPPLEMENTS. (6 wk. min.)

Se Habla Espanol TOLL FREE - 1-800-940-SLIM Major Credit Cards Accepted HOURS: MON.-FRI. 9 A.M.-7 P.M. SAT. 'TIL 1 P.M.

C

Complaint EXHIBIT D

earns money [illegible] This oney will be spent without creatg a new single job."

It recognized that some countries at nationalized their mines had n into difficulties.

The copper mining industry in ambia, where the ANC leadership pent many years in exile, nearly ollapsed after nationalization.

The paper went on to say that ationalization could stampede killed whites into emigrating and hat there would be "serious prob-

OVERWEIGHT MEN, WOMEN AND TEENS I LOST 82 LBS.

...IT WAS EASY ONLY $8 PER WEEK* WHAT MAKES A WEIGHT LOSS PROGRAM GREAT?* * Must be safe, easy and no special foods to buy * Must be flexible in all situations such as eating out in fast food outlets & restaurants * Results should be long lasting & offer a life time solution to a weight problem... * Must be affordable & Drug Free GUESS WHAT!...

We just described the DOCTORS WEIGHT LOSS PROGRAM. Call now for you FREE consultation. LOSE UP TO 7 LBS. PER WEEK BETTY PARDO BEFORE 252 LBS.

BETTY PARDO AFTER [illegible] DOCTORS WEIGHT LOSS CENTER [illegible]

1 LB.

MAINE LOBSTER Mon. & Tues.

$7.99 MIAMI 869 S.W. 107th Ave. 227-2722.

S. MIAMI 6272 S. Dixie Hwy. 665-1288 FOR LOCATIONS IN BROWARD CALL 748-8404 Specials not available for take-out... MC/VISA

ABSOLUTE AUCTION BY ORDER OF DEVELOPER TWO NEW LUXURY HOMES SIX LAKEFRONT LOTS THE HUNT Lake Worth, FL 11:00 A.M. Sat. March 16th "All six lots to be sold to the highest bidder without minimums or reserves..." Call for detailed brochure NATIONAL AUCTION SALES COMPANY AUCTIONEERS & BROKERS & CONSULTANTS [illegible] (407) 364-7004

OFF SEASON SALE! Add Beautiful Living Space.

• Highly Insulated • Available in Different Colors • Wood Paneling Inside Awnings, Shutters, Accordion Screen Enclosures, Roofs, Roll Up Bahama Shutters

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 269

259 Complaint

EXHIBIT E

is aren't

■ The acoustics: "The acoustics are good, the production is fabulous, the theater is fabulous. It's just that it's freezing and there are no bathrooms." — Maxine Adler of Palm Beach.

■ The bathrooms: "Awful. They should have one or two extra ones in here. We've been in this line for a long time and we're not even moving." — Sylvia Feiner of Boca Raton.

(Theater designers had vowed that there would be enough restrooms and that there would be little or no waiting time.)

■ Getting to the theater and parking: "It was no problem," said Valentina Sosa, who is here on vacation from Caracas, Venezuela.

sales tax in 1982.

So, Mayhue and supporters went after money from sources that did not hinge on public approval. They persuaded state, county, city and downtown officials to kick in $27 million cash, plus $5 million worth of land. The rest of the money is coming from private donations and a $6 million loan.

Even so, the arts center stands $9 million in the red, thanks to overruns and a $3.2 million shortage in fund-raising.

Staff Writer Tao Woolfe contributed to this report.

OVERWEIGHT MEN, WOMEN AND TEENS I LOST 82 LBS.

...IT WAS EASY FINAL DAYS! ONLY $8 PER WEEK WHAT MAKES A WEIGHT LOSS PROGRAM GREAT?* * Must be safe, easy and no special foods to buy * Must be flexible in all situations such as eating out in fast food outlets & restaurants * Results should be long lasting & offer a life time solution to a weight problem * Must be affordable & Drug Free GUESS WHAT!...

We just described the DOCTORS WEIGHT LOSS PROGRAM. Call now for your FREE CONSULTATION LOSE UP TO 6 LBS. PER WEEK BETTY PARDO BEFORE 232 LBS. FT. LAUDERDALE BETTY PARDO AFTER 150 LBS.

DOCTORS WEIGHT LOSS CENTERS • Cutler Ridge ______ 255-0008 • Weston/Pembroke Pines 432-9247 • Boca Raton ______ 479-4448 • Hialeah __________ 557-4993 • Hollywood __________ 961-5033 • Delray Beach ___ 273-5454 • Brickell _________ 372-0057 • Ft. Lauderdale ______ 563-4899 • W. Palm Beach ___ 478-1446 • Kendall __________ 271-8110 • Coral Springs _______ 753-5000 • Lake Worth ______ 969-2221 • Westchester/Tamiami 551-1121 • Plantation _________ 749-0995 • North Miami Beach __ 653-5227 • Pompano/Lighthouse Pt 426-9773 • Stuart _______ 287-0066 Major Credit Cards Accepted • Based On Purchase of 1 Year Membership • Weight Loss Varies With Individual

AL WINTER CLEARANCE through Sunday, March 3rd nal

Exhibit E

Complaint 118 F.T.C.

EXHIBIT F

"NOW AVAILABLE" CHOOSE YOUR OWN WEIGHT LOSS PROGRAM TIRED OF BUYING EXPENSIVE DIET FOOD AT JENNY CRAIG & NUTRI SYSTEM? PROGRAM #1 •No special Food To Buy •Eat Real Restaurant & Supermarket food •One On One Personal Supervision Throughout PROGRAM #2 For Your Convenience Doctors Weight loss Approved Delicious Fresh Frozen Meals Are Now Available At Low, Low Supermarket Prices! So Why Buy Expensive diet Meals At Other Weight Loss Centers? Doctors Weight Loss Advantage You Keep The Weight Off! Any Weight Loss Is Bound To Fail Unless you Learn To Live And Eat In Todays Real World, Eating Fast Food Like McDonalds, Wendys And At Restaurants Like Dennys, Red Lobster, Etc.....

$11 Per Week* New Program Only [illegible] Exp 7-27-90 DOCTORS WEIGHT LOSS CENTERS Call Or Drop In For Free Consultation [illegible] Weekdays 9 AM-7 PM, Sat. Till 1 PM MAJOR CREDIT CARDS ACCEPTED OPEN EVENINGS & SATURDAY TOLL-FREE 1-800-940-SLIM The FLYER, (131, 132), July 25, 1990, Page 35

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 271

259 Complaint

EXHIBIT G

Margy Masbaum, left, with bachelor/Fort Lauderdale Commissioner Cary Keno and Tara Cannon.

Chris Doone visits with bachelor Chuck Schmidt at the recent fund-raiser held at Stan's.

END OF SUMMER CLEARANCE TAKE AN ADDITIONAL 25% OFF Sale Ends Oct. 19 already reduced sale items now 30% to 50% OFF the tree house a children's boutique 4721 N. Ocean Drive Sea Ranch Center Ft. Lauderdale SPECIAL SALE RACK $5, $10, $15, $20 Values to $88 HRS: MON.-SAT.

9:30-5:30 (305) 781-0181

CRU ABO FLO INSPECT

Society East, Friday, Oct. 11, 1991 PAGE Special Advertising Section

ALL NEW! HERBAL BALANCE Weight Control Program NOW AVAILABLE Lose weight with us or at home!

Sherry Bishop "I'm maintaining my figure with HERBAL BALANCE

LOSE WEIGHT NO EXPENSIVE FOOD TO BUY! Eat at any restaurant you choose . . . share home cooked meals with your family while losing all the weight you want. The best way to lose weight and keep it off with no expensive prepackaged foods to buy. DOCTORS WEIGHT LOSS CENTERS Free Consultation and Evaluation 50% OFF NEW PROGRAMS Supplements/Herbalbalance Formula Extra Call or Drop In For A Free Consultation FT. LAUDERDALE ... 563-4699 HOLLYWOOD ... 961-5033 PLANTATION ....... 749-0995 BOCA RATON ... 479-4446 CORAL SP. ......... 753-5000 DELRAY ........... 272-5454 DADE/PALM BCH. CALL TOLL FREE 1-800-940-SLIM MAJOR CREDIT CARDS ACCEPTED • PEOPLE PROVEN

Inter Desig by [illegible] COMM

Ft. La

Exhibit G

Complaint 118 F.T.C.

EXHIBIT H

200 S. Andrews Ave.

Mention Ad For Free Beverage w/Lunch 525-7656

TAKE IT OFF . . . AND KEEP IT OFF! Introducing The New Fast Track Program

SPRING SPECIAL 2 FOR 1 BRING A FRIEND AND SAVE OR COME ALONE AND SAVE 50%

Discover the easy, fast, one-to-one approach to weight loss!

At Doctors Weight Loss Centers we offer an alternative to those group meetings that may cause you embarrassment and make you feel uncomfortable. When you're trying to lose weight, the last thing you need is an audience.

In our private one-on-one consultation you will receive the support and guidance you need from our staff.

CALL FOR FREE INFORMATION AND BROCHURE DOCTORS WEIGHT LOSS CENTERS

• Hollywood ............................ 961-5033 • Boca Raton ............................ 479-4446 • Cutler Ridge .......................... 255-0008 • Plantation ............................. 749-0995 • Delray Beach ......................... 272-5454 • N. Miami Bch ........................ 653-5227 • Weston/Pembroke ............... 432-9247 • W. Palm Beach ...................... 478-1446 • Hialeah .................................. 557-4993 • Pompano/Lighthouse Pt. ....... 426-9773 • Lake Worth ........................... 965-2221 • Brickell .................................. 372-0057 • Ft. Lauderdale ....................... 563-4699 • Stuart ..................................... 287-0066 • Kendall .................................. 271-8110 • Coral Springs ....................... 753-5000 *Weight Loss Varies With Individual • Westchester/Tamiami ........... 551-1121 *Major Credit Cards Accepted

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 273

Complaint

EXHIBIT I

BRO - TUESDAY, NOVEMBER 6, 1990, THE MIAMI HERALD 17A [illegible]

FREE WEIGHT LOSS! Purchase any program by Nov. 10 and receive a gift certificate for the same program FREE! Offer limited to first 25 enrollments this week BEFORE AFTER LATER (3 YRS.)

167 LBS. 117 LBS. 116 LBS.

WHAT MAKES OUR PROGRAM • EFFECTIVE • SAFE • LONG LASTING RESULTS • EASY THE BEST? • PRIVATE COUNSELING • INEXPENSIVE - NO PRE-PACKAGED FOODS TO BUY • FLEXIBLE - EAT IN RESTAURANTS, FAST FOOD OUTLETS OR AT HOME • DOCTOR APPROVED • PEOPLE PROVEN "3 yrs. later and I'm still slim, trim, & healthy. It's no problem staying a size 5 ... Wendy Manning, Hollywood

CALL or DROP-IN FOR FREE CONSULTATION DOCTORS WEIGHT LOSS CENTERS DADE BROWARD PALM BEACH • Cutler Ridge................255-0008 • Weston/Pembroke Pines 432-9247 • Boca Raton................479-4446 • North Miami Beach.......653-6227 • Pompano/Lighthouse Pt.......426-9773 • Delray Beach..............272-5454 • Hialeah.......................557-4993 • Ft. Lauderdale................563-4699 • W. Palm Beach.............478-1446 • Brickell......................373-0057 • Coral Springs.................753-8000 • Lake Worth................965-2221 • Kendall.......................271-9110 • Plantation......................749-0995 • Stuart........................287-0009 • Westchester/Tamiami.....551-1121 • Hollywood.....................981-6033 SE HABLA ESPANOL Major Credit Cards Accepted [illegible] HOURS: MON.-FRI. 9 A.M.-7 P.M. SAT. TIL 1 P.M.

Exhibit I

Complaint 118 F.T.C.

EXHIBIT J

SUNDAY, JUNE 24, 1990, THE MIAMI HERALD 11A

"I WAS NEVER HUNGRY It Really Works. I'm Living Proof!"

143 Lbs. 113 Lbs.

I didn't know if I could do it, but I had nothing to worry about. I never felt hungry or deprived. I only felt encouraged, especially when I reached my goal and lost 30 lbs. in just 10 weeks. Kim M. Young Miami Any weight loss is bound to fail unless you learn to eat at fast food outlets and today's restaurants.

DOCTORS WEIGHT LOSS CENTERS "NEW"

4 PART PROGRAM 1. Lose weight while eating real food that you buy at the supermarket and prepare yourself. 2. Learn what to eat & how to order while eating at McDonald's, Denny's, Red Lobster, etc... and still lose weight & stay thin for life.

3. For your convenience - delicious fresh frozen meals at low, supermarket prices. 4. One on One Personal Supervision thru out.

EASE INTO SUMMER with a brand new figure Permanent Weight Loss Tapes Now Available To The Public.

Call To See HOW EASY IT IS!

$11 PER WEEK*

[illegible] Offer For New Programs Only Expires 6/30/90

DOCTORS WEIGHT LOSS CENTERS

DADE BROWARD PALM BEACH [illegible]

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 275

259 Complaint

EXHIBIT K

The News Monday, July 8, 1991 A7

Designer Labels Joan Vass • Bettina Riedel Gene Ewing/Bur • Nancy Heller Nicole Miller 50% OFF entire inventory (excluding [illegible]) ALEXANDRA'S Harbour Bay Plaza, Stuart • 286-5042

Sail the Incomparable "SAGAFJORD"

at Our UNBEATABLE Prices Caribbean Cruise - 13 Days Oct. 17 - Oct. 30 Roundtrip Ft. Lauderdale Ship's Reg Bahamas Call TERRY - 286-0777 ADVENTURES UNLIMITED TRAVEL Monterey Shopping Plaza • Stuart

"Lost 55 Lbs."

"I LOST WEIGHT SO FAST AND I WASN'T HUNGRY" People now say "You look 20 years younger. How did you do it? Answer: DOCTORS WEIGHT LOSS CENTERS Regia Alvarez • No. Miami" $11 $9 PER WEEK on program basis EXPIRES SATURDAY Call For Free Information & Evaluation DOCTORS WEIGHT LOSS CENTERS • STUART 287-0066 • WEST PALM BEACH 478-1446 • BOCA RATON 479-4446 • LAKE WORTH 969-2221 • DELRAY/BOCA 672-5454 17 LOCATIONS WEIGHT LOSS VARIES WITH INDIVIDUAL Credit Cards Accepted • Doctor Approved • People Proven

STORM SHUTTERS Family Owned & Operated Serving The Treasure Coast Since 1979 HURRICANE STORM PANELS • Strong • Economical • Easy Installation • Easy Storage • Custom Colors Available at Additional Cost Reg: $189.00 Cover a 6' sliding "DO IT YOURSELFERS" SPECIALS PANELS - 2.32' (12" wide) TOP HEADER - 2.48' ANGLE - 2.90' BAHAMA SHUTTERS • Folds & Locks • Allow Privacy • Attractive New Look for Your Home • Many Colors WINDOW REG. SALE 37x39 $228.00 $190.00 74x51 $493.00 $411.00 MINUM FOLD-DOWN AWNINGS

Exhibit K

Complaint 118 F.T.C.

EXHIBIT L

10A Sun-Sentinel, Monday, June 11, 1990

ATTENTION OVERWEIGHT MEN & WOMEN HOW TO LOSE WEIGHT AND STAY THIN IN TODAY'S REAL WORLD! LEARN HOW TO EAT AT McDONALD'S, WENDY'S, PIZZA HUT, DENNY'S RED LOBSTER, ETC... ONLY $11* PER WEEK Minimum 6 wk.

Program START TODAY BE 30 LBS.

LIGHTER IN 30 DAYS! Before 138 1/2 Lbs.

After Weight Loss 114 Lbs. A lost 24 lbs.

Any weight loss is bound to fail unless you learn to eat at fast food outlets and today's restaurants.

DOCTORS WEIGHT LOSS CENTERS HAVE A 4 PART PROGRAM 1. Lose weight while eating real food that you buy at the supermarket and prepare yourself 2. Learn what to eat & how to order while eating at McDonald's, Denny's, Red Lobster, etc... and still lose weight & stay thin for life.

3. For your convenience - delicious fresh frozen meals at low supermarket prices.

4. One on One Personal Supervision thru out "My husband keeps telling me how good I look. I had low blood sugar before I started DOCTORS WEIGHT LOSS CENTERS. But now I feel great"

Jolanta Gawlik Riviera Beach, FL CALL TODAY FOR YOUR FREE CONSULTATION DOCTORS WEIGHT LOSS CENTERS DADE BROWARD PALM BEACH • Aventura ————— 935-0285 • Pembroke Pines/Davie — 432-8247 • Boca Raton ————— 479-4448 • Homestead ————— 245-4227 • Pompano/Deerfield ——— 428-8773 • Delray Beach ———— 272-5454 • Cutler Ridge ———— 255-0008 • Ft. Lauderdale ————— 563-4699 • N. Palm Beach ———— 863-5337 • N. Miami Bch. ———— 653-5227 • Coral Springs ————— 753-5000 • W. Palm Beach ———— 478-1446 • Hialeah ——————— 557-4993 • Plantation ——————— 749-0995 • Lake Worth —————— 969-2221 • Brickell ——————— 372-0057 • Hollywood ——————— 981-5033 • Stuart ————————— 287-0086 • Kendall ——————— 271-8110 Major Credit Cards Accepted Se Habla Espanol • Westchester/Tamiami — 551-1121 *EXCLUDES MEDICAL FEES/SUPPLEMENTS [illegible] 20 CONVENIENT LOCATIONS TOLL FREE 1-800-940-SLIM HOURS: MON-FRI 9AM-7PM SAT TIL 1PM

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 277

Complaint

EXHIBIT M

PRO MONDAY, AUGUST 6, 1990. THE MIAMI HERALD 3C

LOSE 3 up to 7 lbs. A WEEK for Only $11* Per WEEK

LOST 25 LBS.

IN 8 WEEKS!

"I feel better about myself & physically feel wonderful."

...Kathy Goehl

LOSE 3-7† LBS. A Week for only $11 per WEEK* *Limited Offer For New Programs Only Exp. 8/11/90

Lose all the weight you want while learning to live and eat in today's modern world of fast food outlets, Denny's, Red Lobster, Pizza Hut, restaurants, convenience stores, etc.

PROGRAMS FOR MEN, WOMEN, AND TEENS CALL or DROP-IN for FREE CONSULTATION

DOCTORS WEIGHT LOSS CENTERS

DADE BROWARD PALM BEACH • Cutler Ridge ________ 255-0008 • Weston/Pembroke Pines ________ 432-8247 • Boca Raton ________ 479-4446 • North Miami Beach ________ 653-5227 • Pompano/Lighthouse Pt. ________ 426-8773 • Delray Beach ________ 272-5454 • Hialeah ________ 557-4993 • Ft. Lauderdale ________ 563-4699 • N. Palm Beach ________ 863-5337 • Brickell ________ 372-0057 • Coral Springs ________ 753-5000 • W. Palm Beach ________ 478-1446 • Kendall ________ 271-4110 • Plantation ________ 749-0955 • Lake Worth ________ 585-7223 • Westchester/Tamiami ________ 551-1121 • Hollywood ________ 961-5033 • Stuart ________ 287-8066

EXCLUDES MEDICAL FEES/SUPPLEMENTS 3 week minimum †Weight Loss Varies With Individual Se Habla Espanol TOLL FREE 1-800-940-SLIM Major Credit Cards Accepted HOURS: MON.-FRI. 9 A.M.-7 P.M. SAT. TIL 1 P.M.

Complaint 118 F.T.C.

EXHIBIT N

Sun-Sentinel, Tuesday, July 31, 1990 9E

NO MORE EXPENSIVE DIET FOOD TO BUY! BEFORE REVOLUTIONARY NEW WAY TO LOSE WEIGHT YOU DO IT YOUR WAY! AFTER PROGRAM #1 No special foods to buy. You eat restaurant food or supermarket food you prepare at home. One on one personal supervision throughout. Up to 6 lbs. per week weight loss.

PROGRAM #2 For your convenience, now available, at your supermarket delicious money saving, fresh frozen meals 100% compatible with the Doctors Weight Loss Program. There's no need to buy expensive diet meals at other weight loss centers ever again! LOSE 3-6* LBS. A WEEK for only $11 PER WEEK* *Limited Offer for New Program only Expires 8/4/90 DOCTORS WEIGHT LOSS ADVANTAGE:

Lose the weight you want, inexpensively, and do it your way. You'll take the weight off and learn to keep it off while learning to live and eat in today's modern world eating at fast food outlets, convenience stores, and restaurants.

When I started I had high blood pressure and my cholesterol was 259. In just two months my cholesterol had dropped to 173 and my blood pressure is very good.

Luella Holmes.

DOCTORS WEIGHT LOSS CENTERS DADE BROWARD PALM BEACH | • Cutler Ridge ________ 235-0009 | • Weston/Pembroke Pines ____ 432-8247 | • Boca Raton ________ 479-4446 | | • N. Miami Bch ________ 653-8227 | • Pompano/Lighthse. Pt ____ 426-9773 | • Delray Beach ________ 272-5454 | | • Hialeah ________ 557-4963 | • Ft. Lauderdale ________ 543-4699 | • N. Palm Beach ________ 863-8337 | | • Brickell ________ 372-0057 | • Coral Springs ________ 753-5000 | • W. Palm Beach ________ 478-1446 | | • Kendall ________ 271-8116 | • Plantation ________ 749-0995 | • Lake Worth ________ 969-2221 | | • Westchester/Tamiami ________ 551-1121 | • Hollywood ________ 961-5033 | • Stuart ________ 287-0028 | *EXCLUDES MEDICAL FEES/SUPPLEMENTS [illegible] weight loss varies with individual Se Habla Espanol TOLL FREE 1-800-940-SLIM HOURS: MON-FRI 8 A.M. to 7 P.M. SAT 8 TO 12 P.M.

Exhibit N

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

259 Decision and Order

DECISION AND ORDER

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

The respondents, their attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondents of all the jurisdictional facts set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by respondents that the law has been violated as alleged in such complaint, and waivers and other provisions as required by the Commission's Rules; and

The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondents had violated the said Act, and that complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

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

2. Respondent Joyce A. Schuman is an individual with her principal residence located at 2730 Sea Island Drive, Fort Lauderdale, Florida.

3. The Federal Trade Commission has jurisdiction of the subject matter of the proceeding and of the respondents, and the proceeding is in the public interest.

Decision and Order 118 F.T.C.

ORDER

DEFINITIONS

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

A. "Competent and reliable scientific evidence" shall mean those 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;

B. "Weight loss program" shall mean any program designed to aid consumers in weight loss or weight maintenance;

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

D. For any order-required disclosure in print media to be made "clearly and prominently," or in a "clear and prominent manner," it must be given both in the same type style and in: (1) twelve point type where the representation that triggers the disclosure is given in twelve point or larger type; or (2) the same type size as the representation that triggers the disclosure where that representation is given in a type size that is smaller than twelve point type. For any order-required disclosure given orally in a broadcast medium to be made "clearly and prominently," or in a "clear and prominent manner," the disclosure must be given at the same volume and in the same cadence as the representation that triggers the disclosure;

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

I.

It is ordered, That respondents DMWLC, a corporation, DWLC, a corporation, their successors and assigns, and their officers, and Joyce A. Schuman, individually and as an officer of said corporations, and respondents, agents, representatives, and employees, directly or through any corporation, subsidiary, division, or other device, in connection with the advertising, promotion, offering for sale, or sale of any weight loss program, in or affecting commerce, as

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 281

259 Decision and Order

“commerce” is defined in the Federal Trade Commission Act, do forthwith cease and desist from:

A. Making any representation, directly or by implication, about the success of participants on any weight loss program in achieving or maintaining weight loss or weight control unless, at the time of making any such representation, respondents possess and rely upon competent and reliable scientific evidence substantiating the representation, provided, further, that for any representation that:

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

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

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

(2) Any weight loss is maintained long-term, said evidence shall, at a minimum, be based upon the experience of participants who were followed for a period of at least two years from their completion of the active maintenance phase of respondents, program or earlier termination, as applicable; and

(3) Any weight loss is maintained permanently, said evidence shall, at a minimum, be based upon the experience of participants who were followed for a period of time after completing the program that is either:

(a) Generally recognized by experts in the field of treating obesity as being of sufficient length for predicting that weight loss will be permanent, or

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

Decision and Order 118 F.T.C.

B. Representing, directly or by implication, except through endorsements or testimonials referred to in paragraph I.E. herein, that participants of any weight loss program have successfully maintained weight loss, unless respondents disclose, clearly and prominently, and in close proximity to such representation, the statement: "For many dieters, weight loss is temporary"; provided, further, that respondents shall not represent, directly or by implication, that the above-quoted statement does not apply to dieters in respondents' weight loss program; provided, however, that a mere statement about the existence, design or content of a maintenance program shall not, without more, be considered a representation that participants of any weight loss program have successfully maintained weight loss.

C. Representing, directly or by implication, except through short broadcast advertisements referred to in paragraph I.D. herein, and except through endorsements or testimonials referred to in paragraph I.E. herein, that participants on any weight loss program have successfully maintained weight loss, unless respondents disclose, clearly and prominently, and in close proximity to such representation, the following information:

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

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

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

(a) The proportion of the total participant population in respondents' programs that those participants represent, expressed in terms of a percentage or actual numbers of participants, or

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

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 283

259 Decision and Order

provided, further, that compliance with the obligations of this paragraph I.C. in no way relieves respondents of the requirement under paragraph I.A. of this order to substantiate any representation about the success of participants on any weight loss program in maintaining weight loss.

D. Representing, directly or by implication, in short broadcast advertisements, that participants of any weight loss program have successfully maintained weight loss, unless respondents:

(1) Include, clearly and prominently, and in immediate conjunction with such representation, the statement: "Check at our centers for details about our maintenance record";

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

(a) Give to each potential client a separate document entitled "Maintenance Information," which shall include all the information required by paragraph I.E. and subparagraphs I.C. (I)-(3) of this order and shall be formatted in the exact type size and style as the example form below, and shall include the heading (Helvetica 14 point bold), lead-in (Times Roman 12 point), disclosures (Helvetica 14 point bold), acknowledgment language (Times Roman 12 point), and signature block therein; provided, further, that no information in addition to that required to be included in the document required by this subparagraph I.D (2) shall be included therein;

Decision and Order 118 F.T.C.

MAINTENANCE INFORMATION

You may have seen our recent ad about maintenance success. Here's some additional information about our maintenance record.

[Disclosure of maintenance statistics goes hereXXXXXXXXXXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXX] For many dieters, weight loss is temporary.

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

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

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

(i) Compliance with the obligations of this paragraph I.D. in no way relieves respondents of the requirement under paragraph I.A. of this order to substantiate any representation about the success of participants on any weight loss program in maintaining weight loss; (ii) Respondents must comply with both paragraph I.D. and paragraph I.C. of this order if respondents include in any such short broadcast advertisement a representation about maintenance success that states a number or percentage, or uses descriptive terms that convey a quantitative measure such as "most of our customers maintain their weight loss long-term";

provided, however, that the provisions of paragraph I.D. shall not apply to endorsements or testimonials referred to in paragraph I.E. herein.

E. Using any advertisement containing an endorsement or testimonial about weight loss success or weight loss maintenance success by a participant or participants of respondents' weight loss programs if the weight loss success or weight loss maintenance success depicted in the advertisement is not representative of what participants of respondents' weight loss programs generally achieve, unless respondents disclose, clearly and prominently, and in close

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

259 Decision and Order

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

(1) What the generally expected success would be for DMWLC/DWLC customers in losing weight or maintaining achieved weight loss; provided, however, that the generally expected success for DMWLC/DWLC customers may exclude those customers who dropped out of the program within two weeks of their entrance, or who were unable to complete the program due to illness, pregnancy, or change of residence; or (2) One of the following statements:

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

(g) "Results not typical of program participants."

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

provided, however, that:

(i) For endorsements or testimonials about weight loss success, respondents can satisfy the requirements of subparagraph I.E. (1) by accurately disclosing the generally expected success in the following phrase: "Doctors Medical Weight Loss Centers, Inc./Doctors Weight Loss Centers, Inc., participants lose an average of ___ pounds over an average ___ - week treatment period"; and (ii) If the weight loss success or weight loss maintenance success depicted in the advertisement is representative of what participants of a group or subset clearly defined in the advertisement generally achieve, then, in lieu of the disclosures required in either subparagraphs I.E. (1)or (2) herein, respondents may substitute a clear and prominent disclosure of the percentage of all of respondents,

Decision and Order 118 F.T.C.

customers that the group or subset defined in the advertisement represents.

F. Representing, directly or by implication, that the price at which any weight loss program can be purchased is the only cost associated with losing weight on that program, unless such is the case.

G. Representing, directly or by implication, the price at which any weight loss program can be purchased, unless respondents disclose, clearly and prominently, either:

(1) In close proximity to such representation, the existence and amount of all mandatory fees associated with the program offered; or (2) In immediate conjunction with such representation, one of the following statements:

(a) "Plus the cost of [list of products or services that participants must purchase at additional cost]"; or (b) "Purchase of [list of products or services that participants must purchase at additional cost] required";

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

H. Failing to disclose over the telephone, for a period beginning with the date of any advertisement of the price at which any weight loss program can be purchased and ending no sooner than 180 days after the last dissemination of such advertisement, to consumers who inquire about the cost of any weight loss program, or are told about the cost of any weight loss program, the existence and amount of any and all mandatory costs or fees associated with participation in the program; provided, however, that respondents may satisfy this requirement by directing their weight loss centers to disclose the information, by providing the center personnel with suggested language to be used when responding to phone inquiries and by making their best efforts to ensure compliance with their directive to disclose price information over the telephone. I. Representing, directly or by implication, that prospective participants in respondents' weight loss programs will reach a specified weight within a specified time period, unless at the time of

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

259 Decision and Order

making such representation, respondents possess and rely upon competent and reliable scientific evidence substantiating the representation.

J. Representing, directly or by implication, the average or typical rate or speed at which any participant on any weight loss program has lost or will lose weight, unless at the time of making any such representation, respondents possess and rely upon competent and reliable scientific evidence that substantiates the representation.

K. Failing to disclose, clearly and prominently, either (1) to each participant who, after the first two weeks on the program, is experiencing average weekly weight loss that exceeds two percent (2%) of said participant's initial body weight, or three pounds, whichever is less, for at least two consecutive weeks, or (2) in writing to all participants when they enter the program, that failure to follow the program protocol and eat all of the food recommended may involve the risk of developing serious health complications.

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

II.

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

III.

It is further ordered, That respondent Joyce A. Schuman shall promptly notify the Commission of the discontinuance of her present business or employment and of her affiliation with a new business or employment. In addition, for a period of three (3) years from the service date of this order, the individual respondent shall promptly notify the Commission of each affiliation with a new business or employment whose activities relate to the advertising, promotion, offering for sale, or sale of any weight loss program. When so required under this paragraph, each such notice shall include the

Decision and Order 118 F.T.C.

individual respondent's new business address and a statement of the nature of the business or employment in which the individual respondent is newly engaged, as well as a description of the individual respondent's duties and responsibilities in connection with the business or employment. The expiration of the notice provision of this paragraph shall not affect any other obligation arising under this order.

IV.

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

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

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

V.

It is further ordered, That respondents shall distribute a copy of this order to each of their officers, agents, representatives, independent contractors and employees who are involved in the preparation and placement of advertisements or promotional materials or in communication with customers or prospective customers or who have any responsibilities with respect to the subject matter of this order; and, for a period of three (3) years from the date of entry of this order, distribute same to all future such officers, agents, representatives, independent contractors and employees.

DOCTORS MEDICAL WEIGHT LOSS CENTERS, INC., ET AL. 289

259 Decision and Order

VI.

It is further ordered, That respondents shall, within sixty (60) days after the date of service of this order, file with the Commission a report, in writing, setting forth in detail the manner and form in which they have complied with this order.

Complaint 118 F.T.C.

IN THE MATTER OF

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

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

Docket C-3517. Complaint, Aug. 11, 1994--Decision, Aug. 11, 1994

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

Appearances

For the Commission: Eric Bash, Matthew Daynard and Richard F. Kelly.

For the respondents: Gabriel Imperato, Broad & Cassell, Fort Lauderdale, FL.

COMPLAINT

The Federal Trade Commission, having reason to believe that Quick Weight Loss Centers, Inc., a Texas corporation (hereinafter, “QWLC-Tex.”), Don K. Gearheart, individually and as an officer of said corporation, and Joyce A. Schuman, individually and as an officer of said corporation (hereinafter, collectively, “respondents”), have 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. (a) Respondent QWLC-Tex. is a Texas corporation, formerly doing business, with its principal office and place of business located at 2900 Gateway, Suite 605, Irving, Texas. (b) Respondent Don K. Gearheart is an officer of the corporate respondent. Individually or in concert with others, he formulates, directs, and controls the acts or practices of the corporate respondent, including the acts or practices alleged in this complaint. His principal