Guildwood Direct Limited

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IN THE MATTER OF GUILDWOOD DIRECT LIMITED CONSENT ORDER, ETC., INREGARD TO ALLEGED VIOLATION OF SECS. 5 AND 12 OF THE FEDERAL TRADE COMMISSION ACT Docket C-3753. Complaint, June 16, 1997--Decision, June 16, 1997 This consent order prohibits, among other things, the use of the name Slimming4 1 6 1 2 0 587 934 1557 49 -1 5 1 6 1 2 1 587 934 169 38 96.701485 Insoles to represent that a product causes weight loss without scientific substantiation. The consent order requires the respondents to have scientific evidence to substantiate any claims regarding the effectiveness, benefits, and efficacy of any weight loss or fat loss product. In addition, the consent order requires testimonials to represent the typical experience of consumers or to clearly and prominently disclose the generally expected results. Furthermore the order prohibits the respondent from representing that Advance Bio/Natural Research Labs is an independent research organization and from misrepresenting the existence or results of any test or study. In addition the consent order requires the respondent to pay $40,000 in consumer redress, of which all but $7,500 is suspended.

Appearances For the Commission: Beth Grossman and Jeffrey Bloom. For the respondent: Sheldon S. Lustigman, Lustigman Law Firm, New York, N.Y.

COMPLAINT The Federal Trade Commission, having reason to believe that Guildwood Direct Limited ("respondent"), has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in the public interest, alleges: 1. Respondent Guildwood Direct Limited is a Delaware corporation with its principal office or place of business at 1402 Pine Avenue, MPO Box 2130, Niagara Falls, New York. 2. Respondent has advertised, labeled, offered for sale, sold and distributed to the public Slimming Insoles, shoe insoles purported to cause weight loss by stimulating certain areas of the feet. Slimming Insoles are devices, within the meaning of Sections 12 and 15 of the Federal Trade Commission Act. Advertisements for these products have appeared in the following publications: The Salt Lake Tribune, The Denver Post, The Modesto Bee, The New York Post, The St. Louis Post, American Woman, Crochet World, Soap Opera Update, Women's Own, Low Fat Meals and Beautiful Brides, and have been distributed as free standing inserts by News America. GUILDWOOD DIRECT LIMITED 1559 1558 Complaint 3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as commerce is defined in Section 4 of the Federal Trade Commission Act. 4. Respondent has disseminated or has caused to be disseminated advertisements for Slimming Insoles, including but not necessarily limited to the attached Exhibits A through C. These advertisements contain the following statements:

A. REVOLUTIONARY5 1 4 1 1 3 1209 907 271 37 96.009148 EUROPEAN5 1 4 1 1 4 1527 906 199 37 95.742668 WEIGHTS 1 4 1 1 5 1774 906 121 36 95.991806 LOSS5 1 4 1 1 6 1944 904 219 37 96.824333 METHOD3 1 4 2 0 0 526 966 676 36 -1 4 1 4 2 1 0 526 966 676 36 -1 5 1 4 2 1 1 526 967 339 35 95.874863 GUARANTEED5 1 4 2 1 2 879 966 69 36 96.813736 BY5 1 4 2 1 3 961 966 241 36 95.883377 DOCTOR! IT5 1 4 3 1 2 573 1023 127 36 95.685394 LOST5 1 4 3 1 3 715 1023 47 37 96.701248 745 1 4 3 1 4 777 1023 216 36 96.388878 POUNDS Angela Meisel The first and only massage insole in the world that reduces weight and regulates the digestive system! Now, join the over 370,000 Europeans who have discovered the secret to weight loss! For years Dr. Robert Metz, a European doctor and nutritionist, has been studying weight reduction by natural methods. His revolutionary invention Erina Solum (Slimming Insoles) is his brilliant breakthrough. NOW AVAILABLE IN THE U.S.A:! The first and only massage insole in the world which reduces weight and regulates the digestion system is now available in the U.S.A:! ACUPRESSURE - A 5000 YEAR OLD CHINESE THERAPY! Over 5000 years ago the Chinese discovered a natural way to stimulate the inner organs via the reflex zones of the soles of the feet. (The English neurologists Dr. Head and Dr. Fitzgerald have proved this natural Chinese philosophy). The unique effectiveness of Dr. Metz's Slimming Insoles works on this same completely natural method. With every step you take the insoles massage the reflex zones of the kidneys, bladder and stomach gently but effectively. Since overweight problems are often linked to the under-performance of the dietary system, it should be stimulated to function effectively so the bodies [sic] metabolism works normally and does not store excess fat! *No Dieting *No Pills *No Nervousness *No Frantic Exercising *No Strange Formulas *No Special Foods to Buy HELP TURN ON YOUR BODY'S FAT BURNING PROCESS! When the digestive organs are stimulated, the body burns stored up fat in a natural way and digestion returns to normal... You lose weight, simply by everyday walking. The result is a fabulous figure in a natural way. EVERY STEP GENTLY MASSAGES YOUR REFLEX ZONES KEEPING YOU [sic] METABOLISM WORKING.

This effect is based on the principle of Reflexology. All the body's organs have a reflex point on the soles of the feet. When these points are massaged the functions of the corresponding organ are stimulated. Dr. Metz discovered that this massage can also be effected by walking. The insole knobs are arranged so they massage the Complaint 123 F.T.C.

reflex zones of the body, stimulating the dietary system and metabolic function. So, get in step with this new European technology and start looking and feeling great! MEDICAL TEST RESULTS | VERY GOOD | 478 PEOPLE TESTED TESTIMONIALS ABOUND During5 1 2 5 1 2 637 595 23 35 96.983795 45 1 2 5 1 3 674 595 122 37 96.504501 weeks5 1 2 5 1 4 810 595 15 35 96.504501 I5 1 2 5 1 5 838 595 71 36 96.477554 lost5 1 2 5 1 6 922 596 23 36 96.622528 65 1 2 5 1 7 957 595 155 46 96.978973 pounds,5 1 2 5 1 8 1126 594 59 36 96.992325 thes 1 2 5 1 9 1200 606 99 25 96.790283 same5 1 2 5 1 10 1311 593 191 48 96.123108 happened5 1 2 5 1 11 1515 597 37 32 96.621796 to5 1 2 5 1 12 1567 592 47 37 96.615158 all5 1 2 5 1 13 1627 592 47 37 97.010452 of5 1 2 5 1 14 1682 603 64 35 97.010452 my5 1 2 5 1 15 1762 591 172 36 95.313889 friends. Carmen Schlashter T5 1 2 7 1 2 514 708 70 37 96.806335 lost5 1 2 7 1 3 597 710 20 35 96.663994 85 1 2 7 1 4 629 709 143 47 96.753784 pounds5 1 2 7 1 5 784 709 127 36 96.935402 within5 1 2 7 1 6 924 711 21 35 96.541000 85 1 2 7 1 7 960 709 161 41 96.285904 weeks...5 1 2 7 1 8 1131 708 132 36 96.880325 Above5 1 2 7 1 9 1276 708 47 36 96.743149 all5 1 2 7 1 10 1335 709 15 35 95.370453 I5 1 2 7 1 11 1364 708 72 36 95.370453 likes 1 2 7 1 12 1448 707 100 36 96.855721 them5 1 2 7 1 13 1560 706 212 47 96.225510 (Slimming5 1 2 7 1 14 1785 705 155 47 96.869698 Insoles)5 1 2 7 1 15 1952 705 158 37 96.606201 because3 1 2 8 0 0 467 766 875 47 -1 4 1 2 8 1 0 467 766 875 47 -1 5 1 2 8 1 1 467 766 54 37 96.803093 it's5 1 2 8 1 2 535 777 43 26 96.861633 so5 1 2 8 1 3 593 777 88 35 96.788651 easy5 1 2 8 1 4 696 771 36 31 96.159599 to5 1 2 8 1 5 747 766 78 37 94.349808 loses 1 2 8 1 6 840 766 171 47 96.668205 weight. Mrs. Petra Jung I5 1 2 9 1 2 515 823 94 37 96.893158 have5 1 2 9 1 3 624 823 72 36 96.341003 lost5 1 2 9 1 4 714 825 45 35 96.298988 105 1 2 9 1 5 771 823 147 47 96.298988 pounds5 1 2 9 1 6 933 823 156 37 96.858322 without5 1 2 9 1 7 1103 823 175 46 96.906082 torturing5 1 2 9 1 8 1292 822 168 47 96.161369 myself. Gabriele Geiger I5 1 2 10 1 2 515 891 67 26 96.478477 cans 1 2 10 1 3 594 880 233 37 96.116875 recommends 1 2 10 1 4 840 880 27 37 96.814095 it5 1 2 10 1 5 879 885 37 31 96.256126 to5 1 2 10 1 6 930 891 182 35 96.010689 everyone5 1 2 10 1 7 1124 879 156 37 95.488518 because5 1 2 10 1 8 1294 879 50 37 96.727882 it's5 1 2 10 1 9 1358 884 64 31 96.857307 not5 1 2 10 1 10 1435 878 87 46 96.641235 only5 1 2 10 1 11 1536 884 36 30 96.641235 to5 1 2 10 1 12 1586 878 78 36 96.994331 loses 1 2 10 1 13 1677 877 138 46 96.890068 weights 1 2 10 1 14 1825 877 66 37 96.492104 but5 1 2 10 1 15 1902 877 86 46 96.686340 they5 1 2 10 1 16 2002 876 108 36 96.979050 make3 1 2 11 0 0 465 937 967 47 -1 4 1 2 11 1 0 465 937 967 47 -1 5 1 2 11 1 1 465 949 75 34 96.837189 you5 1 2 11 1 2 555 937 74 37 96.662003 feels 1 2 11 1 3 641 937 208 47 96.611801 physically5 1 2 11 1 4 864 937 75 37 95.210030 fit. Carmen Steffens-Baum I'LL5 1 2 12 1 2 588 995 159 36 94.900810 STAKES 1 2 12 1 3 761 996 80 35 96.333221 MY5 1 2 12 1 4 854 995 232 36 95.380310 MEDICAL5 1 2 12 1 5 1100 994 315 37 96.236580 REPUTATIONS 1 2 12 1 6 1430 993 72 36 96.073196 ON5 1 2 12 1 7 1515 991 79 37 75.831589 IT. R. Metz, MD DR. METZ SLIMMING INSOLES GUARANTEE:

Step by step the Slimming Insoles will help you become slimmer, healthier and feel more alive! You will be able to control your weight, and rid your body of the flab while aiding your dietary system. They WILL work for you, or we'll refund every cent you paid for them. NO questions asked." (Exhibit A - Print Advertisement). B. [Heading at top of page:] .

“ADVANCE BIO/NATURAL RESEARCH LABS RESEARCH REPORTS DATA CONTROL FILE NO 97644KC CASE HISTORIES [illegible] TEST GROUP NC-46009 CASE FILE REGARDING: DR. ROBERT METZ, M.D. SLIMMING INSOLES STATEMENT: Tens of Thousands of Europeans have lost weight using Dr. Robert Metz's, M.D. [sic] Slimming Insoles CASE 2 Control Weight Loss Evaluation on 478 Europeans Using Dr. Robert Metz's Slimming Insoles.

The Dr. Metz Slimming Insoles were distributed to a control group of 478 individuals. The results are as follows:

58% of the individuals tested lost 14 Ibs. or more. 27% of the individuals tested lost 10 Ibs. to 14 Ibs. 15% of the individuals tested lost up to 10 Ibs. The Medical Weight Loss Evaluation is considered VERY5 1 3 7 1 9 1690 2241 167 36 96.006355 GOOD CASE 7 Individual Success Story - Subject Gabriele Geiger I5 1 4 3 1 2 517 2463 93 37 96.155365 have5 1 4 3 1 3 628 2463 71 37 96.535248 lost5 1 4 3 1 4 720 2464 44 35 96.922012 105 1 4 3 1 5 781 2463 65 36 85.675652 lbs.5 1 4 3 1 6 866 2463 157 36 96.603462 without5 1 4 3 1 7 1040 2463 175 45 96.781998 torturing5 1 4 3 1 8 1232 2461 141 47 96.899261 myself5 1 4 3 1 9 1383 2461 89 36 96.565193 with5 1 4 3 1 10 1489 2472 105 25 96.709518 some5 1 4 3 1 11 1611 2460 91 36 96.985153 kinds 1 4 3 1 12 1718 2460 47 36 96.737350 of5 1 4 3 1 13 1776 2459 77 36 96.999207 diets 1 4 3 1 14 1869 2458 73 37 96.570511 ands 1 4 3 1 15 1958 2458 156 36 96.609459 without4 1 4 3 2 0 465 2516 1647 51 -1 5 1 4 3 2 1 465 2521 150 46 96.049034 appetite5 1 4 3 2 2 630 2521 176 36 96.049034 reducers.5 1 4 3 2 3 834 2522 14 34 96.862213 I5 1 4 3 2 4 863 2521 137 46 96.883713 always5 1 4 3 2 5 1015 2520 74 37 96.742058 had5 1 4 3 2 6 1101 2532 64 35 96.451233 my5 1 4 3 2 7 1180 2520 216 36 96.657532 difficulties5 1 4 3 2 8 1412 2518 88 37 97.020805 with5 1 4 3 2 9 1515 2519 93 36 96.837555 diets5 1 4 3 2 10 1624 2517 73 38 96.586845 ands 1 4 3 2 11 1713 2517 214 37 96.095245 afterwards5 1 4 3 2 12 1942 2517 16 35 96.915154 I5 1 4 3 2 13 1974 2516 138 45 96.682121 always4 1 4 3 3 0 464 2573 1648 51 -1 5 1 4 3 3 1 464 2578 130 46 96.601860 gained5 1 4 3 3 2 606 2578 93 37 97.002602 backs 1 4 3 3 3 713 2578 57 37 96.997902 thes 1 4 3 3 4 784 2578 134 46 96.468895 weights 1 4 3 3 5 932 2580 15 35 96.629440 I5 1 4 3 3 6 962 2578 79 44 96.960884 lost,5 1 4 3 3 7 1058 2578 209 36 96.444191 sometimes5 1 4 3 3 8 1283 2589 93 25 96.231064 even5 1 4 3 3 9 1390 2589 104 25 96.255035 more5 1 4 3 3 10 1509 2576 86 36 96.386826 than5 1 4 3 3 11 1600 2569 16 59 96.386826 I5 1 4 3 3 12 1640 2575 73 37 93.250458 had5 1 4 3 3 13 1729 2575 127 37 52.857594 lost...15 1 4 3 3 14 1872 2573 240 38 91.963341 recomraend4 1 4 3 4 0 464 2635 842 47 -1 5 1 4 3 4 1 464 2637 61 35 93.251617 Dr.5 1 4 3 4 2 542 2637 129 35 92.139893 Metz's5 1 4 3 4 3 688 2635 195 47 96.502945 Slimming5 1 4 3 4 4 900 2636 143 36 96.502945 Insoles5 1 4 3 4 5 1059 2641 37 30 96.646904 to5 1 4 3 4 6 1112 2647 194 34 96.473267 everyone.3 1 4 4 0 0 464 2694 321 35 -1 4 1 4 4 1 0 464 2694 321 35 -1 5 1 4 4 1 1 464 2694 321 35 96.500702 CONCLUSION3 1 4 5 0 0 463 2746 1651 165 -1 4 1 4 5 1 0 465 2746 1648 49 -1 5 1 4 5 1 1 465 2751 147 35 96.820129 Overall5 1 4 5 1 2 629 2751 130 35 96.686745 results5 1 4 5 1 3 777 2751 159 35 96.081955 indicates 1 4 5 1 4 953 2750 77 36 96.413513 that5 1 4 5 1 5 1046 2751 61 35 96.759636 Dr.5 1 4 5 1 6 1126 2750 138 36 93.287544 Roberts 1 4 5 1 7 1279 2749 129 36 91.885109 Metz's5 1 4 5 1 8 1427 2748 197 47 96.226158 Slimming5 1 4 5 1 9 1642 2748 143 36 96.542061 Insoles5 1 4 5 1 10 1802 2748 97 35 96.692917 have5 1 4 5 1 11 1906 2742 21 59 96.992874 a5 1 4 5 1 12 1952 2746 161 47 96.317986 positive4 1 4 5 2 0 464 2803 1650 50 -1 5 1 4 5 2 1 464 2807 139 46 96.716866 weights 1 4 5 2 2 624 2807 74 36 96.102020 loss5 1 4 5 2 3 719 2808 112 35 96.428360 results 1 4 5 2 4 849 2818 51 25 96.591789 on5 1 4 5 2 5 920 2818 22 25 96.796005 a5 1 4 5 2 6 963 2806 99 47 96.823586 large5 1 4 5 2 7 1083 2807 155 35 96.553436 numbers 1 4 5 2 8 1257 2807 46 35 96.404503 of5 1 4 5 2 9 1318 2805 255 38 96.045822 individuals. (Exhibit B - Direct Mail Advertisement).

C. Would5 1 5 1 1 3 788 2934 75 34 96.980453 you5 1 5 1 1 4 879 2922 75 35 97.011574 likes 1 5 1 1 5 971 2926 37 31 96.971291 to5 1 5 1 1 6 1025 2921 79 36 96.750839 loses 1 5 1 1 7 1125 2922 44 34 96.794388 105 1 5 1 1 8 1185 2921 66 36 84.929131 Ibs.5 1 5 1 1 9 1270 2920 72 37 96.198715 likes 1 5 1 1 10 1362 2922 87 35 96.618958 15%5 1 5 1 1 11 1465 2920 46 36 96.912193 of5 1 5 1 1 12 1522 2920 59 36 96.960442 thes 1 5 1 1 13 1597 2925 70 31 96.814964 tests 1 5 1 1 14 1706 2931 94 35 93.253502 groups 1 5 1 1 15 1817 2919 148 36 88.180199 did...or5 1 5 1 1 16 1984 2919 44 35 96.881317 145 1 5 1 1 17 2045 2917 67 37 94.213348 Ibs.4 1 5 1 2 0 465 2964 1649 48 -1 5 1 5 1 2 1 465 2967 70 36 96.965492 likes 1 5 1 2 2 549 2967 88 37 93.304962 27%5 1 5 1 2 3 651 2967 141 37 91.463745 did...or5 1 5 1 2 4 805 2979 88 25 96.734184 overs 1 5 1 2 5 911 2968 43 35 96.310837 145 1 5 1 2 6 972 2967 67 36 92.632431 Ibs.5 1 5 1 2 7 1058 2966 72 36 96.775139 likes 1 5 1 2 8 1147 2967 89 36 96.530624 58%5 1 5 1 2 9 1252 2966 83 36 94.206367 did?5 1 5 1 2 10 1364 2967 52 35 96.891800 Or5 1 5 1 2 11 1431 2966 126 36 96.217499 would5 1 5 1 2 12 1572 2977 75 35 96.640152 you5 1 5 1 2 13 1661 2966 26 35 96.976532 likes 1 5 1 2 14 1752 2972 38 29 96.988182 to5 1 5 1 2 15 1807 2966 80 35 96.452148 loses 1 5 1 2 16 1904 2966 47 35 93.306206 205 1 5 1 2 17 1967 2964 147 37 82.446175 Ibs...304 1 5 1 3 0 465 3010 1650 47 -1 5 1 5 1 3 1 465 3013 151 36 81.994690 Ibs....505 1 5 1 3 2 631 3013 64 37 92.955414 Ibs.5 1 5 1 3 3 711 3026 40 24 95.480919 or5 1 5 1 3 4 764 3025 93 24 96.576271 even5 1 5 1 3 5 869 3013 48 35 96.723152 745 1 5 1 3 6 932 3013 67 36 94.047287 Ibs.5 1 5 1 3 7 1014 3013 72 35 96.869804 likes 1 5 1 3 8 1101 3012 141 45 96.801849 Angela5 1 5 1 3 9 1254 3012 131 37 96.938293 Meisel5 1 5 1 3 10 1399 3012 63 36 92.072868 did5 1 5 1 3 11 1475 3034 30 5 92.072868 --5 1 5 1 3 12 1518 3012 152 36 96.444626 without5 1 5 1 3 13 1683 3012 138 45 96.953934 dieting5 1 5 1 3 14 1835 3023 41 24 96.677536 or5 1 5 1 3 15 1890 3010 225 46 96.758270 exercising?2 1 6 0 0 0 464 3104 1651 103 -1 3 1 6 1 0 0 464 3104 1651 103 -1 4 1 6 1 1 0 464 3104 1651 48 -1 5 1 6 1 1 1 464 3105 100 35 96.359489 Then5 1 6 1 1 2 578 3117 72 33 96.802040 you5 1 6 1 1 3 663 3111 98 30 96.742859 must5 1 6 1 1 4 773 3105 88 36 96.442276 reads 1 6 1 1 5 873 3105 73 36 96.755577 this5 1 6 1 1 6 963 3105 198 47 96.536118 important5 1 6 1 1 7 1173 3115 169 35 96.833138 messages 1 6 1 1 8 1358 3104 73 36 96.815620 ands 1 6 1 1 9 1440 3105 83 46 96.051674 joins 1 6 1 1 10 1536 3104 60 36 96.638687 thes 1 6 1 1 11 1612 3115 91 25 96.832520 overs 1 6 1 1 12 1718 3104 166 44 96.116119 370,0005 1 6 1 1 13 1901 3105 214 44 96.164757 Europeans4 1 6 1 2 0 465 3161 1029 46 -1 5 1 6 1 2 1 465 3162 83 35 97.014992 who5 1 6 1 2 2 563 3162 93 37 96.741249 have5 1 6 1 2 3 672 3162 219 37 96.385269 discovered5 1 6 1 2 4 906 3175 20 23 96.946007 a5 1 6 1 2 5 940 3163 116 35 96.828476 NEWS 1 6 1 2 6 1071 3167 117 30 96.769066 secrets 1 6 1 2 7 1202 3167 37 30 96.619957 to5 1 6 1 2 8 1256 3161 135 46 96.737541 weights 1 6 1 2 9 1406 3162 88 35 96.997772 loss! GUILDWOOD DIRECT LIMITED 1561 1558 Complaint Dear Friend, I am very anxious to tell you the exciting news of a weight loss method that is sweeping Europe. A European Doctor has made what many consider to be a major breakthrough with a natural weight loss method. His name is Dr. Robert Metz and he is a medical doctor specializing in weight loss and control. In Europe, over 370,000 weight conscious individuals are now using Dr. Metz's All Natural Weight Loss Method.

Clinically tested in Europe among a group of 478 people, the medical test results were announced as Very5 1 2 3 2 6 1091 841 160 38 92.992317 Good!. A second controlled and monitored test concluded Dr. Metz's weight loss system as5 1 2 3 3 8 1311 910 45 25 96.927223 an5 1 2 3 3 9 1369 898 174 37 96.253792 effective5 1 2 3 3 10 1555 897 152 37 96.696503 methods 1 2 3 3 11 1718 903 39 31 97.001793 to5 1 2 3 3 12 1769 897 93 47 96.541611 fights 1 2 3 3 13 1873 897 63 37 96.097458 offs 1 2 3 3 14 1944 909 126 24 96.988480 excess4 1 2 3 4 0 428 954 1360 51 -1 5 1 2 3 4 1 428 958 162 47 93.122513 pounds - with a 14 Ib. weight loss achieved during the test period! Happy Europeans have been sending Dr. Metz letters of thanks and appreciation, claiming weight losses of up to 74 Ibs. And the losses were all achieved without dieting, strenuous exercising, or taking harmful pills and without buying costly, special foods.

Wouldn't you like to lose those extra pounds you put on over the years...And would you like to achieve all this without dieting or strenuous exercising? Trigger Your Body's Natural Fat Burning Process And Turn Food Into Energy--Not Fat! After years of weight loss research, Dr. Metz discovered the value of reflexology, a natural method where the body's organs are stimulated to function more efficiently. Specific areas on the bottom of the feet can be massaged to stimulate the body's digestive organs. When the digestive organs are stimulated, the body burns the food we eat, turning it into energy, NOT FAT. In addition, the body's metabolism is activated and in this state it begins to burn stored up fat. The problem was how do you periodically massage the bottom of the feet in a convenient, cost effective manner? A Weight Loss Method Designed For The 21st Century! Dr. Metz and a team of specialists brilliantly solved the problem! They developed a pair of insoles with massaging knobs strategically placed on the insoles that come in contact with the bottom of the feet. Called Slimming Insoles, they gently massage the reflex zones on the bottom of the feet and stimulate the body's digestive and metabolic system. These insoles fit comfortably into any normal shoe and with every step you take, the insoles keep your digestive furnace burning fat.

Dr. Metz's Slimming Insoles Are The First And Only Insoles That Reduce Weight And Regulate The Digestive System. Now it's your turn to find out what hundreds of thousands of Europeans already know about Dr. Metz's amazing weight loss method. By wearing the Slimming Insoles, you will experience all day comfort, and begin to lose weight in a sensible, natural, clinically proven way! I have no doubt that the insoles will work for you as well as they have for thousands of happy, slimmer Europeans. So why not get in step and begin losing weight with every step. Dr. Metz and I are so sure that you will be thrilled with your progress - we both GUARANTEE IT. However, if for any reason you are not 100% satisfied, return the insoles for a complete refund -- no questions asked." (Exhibit C - Direct Mail Advertisement).

Complaint 123 F.T.C.

5. Through the trade name Slimming5 1 3 1 1 7 1509 361 207 51 96.240341 Insoles, and the means described in paragraph four, respondent has represented, expressly or by implication, that:

A. Slimming Insoles cause significant weight loss. B. Slimming Insoles cause significant weight loss without changes in diet or exercise.

C. Testimonials from consumers appearing in the advertisements for Slimming Insoles reflect the typical or ordinary experience of members of the public who have used the product. 6. Through the trade name Slimming5 1 5 1 1 7 1508 1098 208 51 95.857605 Insoles, and the means described in paragraph four, respondent has represented, expressly or by implication, that it possessed and relied upon a reasonable basis that substantiated the representations set forth in paragraph five, at the time the representations were made.

7. In truth and in fact, respondent did not possess and rely upon a reasonable basis that substantiated the representations set forth in paragraph five, at the time the representations were made. Therefore, the representation set forth in paragraph six was, and is, false or misleading. .

8. Through the means described in paragraph four, respondent has represented, expressly or by implication, that scientific studies demonstrate that Slimming Insoles cause significant weight loss without changes in diet or exercise.

9. In truth and in fact, scientific studies do not demonstrate that Slimming Insoles cause significant weight loss without changes in diet or exercise. Therefore, the representation set forth in paragraph eight was, and is, false or misleading.

10. Through the means described in paragraph ‘four, respondent has represented, expressly or by implication, that Advance Bio/Natural Research Labs is a bona fide, independent research organization that has published a report containing the results of valid, independent testing of the Slimming Insoles. 11. In truth and in fact, Advance Bio/Natural Research Labs is not a bona fide, independent research organization that has published a report containing the results of valid, independent testing of the Slimming Insoles. Advance Bio/Natural Research Labs is a fictitious trading name utilized by Guildwood Direct Limited in its advertising. Therefore, the representation set forth in paragraph ten was, and is, false or misleading.

GUILDWOOD DIRECT LIMITED 1563 1558 Complaint 12. The acts and practices of respondent as alleged in this complaint constitute unfair or deceptive acts or practices, and the making of false advertisements, in or affecting commerce in violation of Sections 5(a) and 12 of the Federal Trade Commission Act. Complaint 123 F.T.C.

EXHIBIT A REVOLUTIONARY EUROPEA EIGHT LOSS M OD GUARANTEED BY DOCT J rspriiey v The first and only meesage insole in the world that reduces Angela Meise: weight and reguistes the digestive systert! | by netural tes inventon Enna Solum (Stmmeng isotes) ss tes Orikamt breskthwough.

NOW AVAILABLE IN THE U.S.A! The first and only massage msole in ine world which reduces waht and reguiates the dgesbon system 1s now available in the USA! ACUPRESSURE - A $600 YEAH OLD CHINESE THERAPY: 7 Over $000 years ago the Chinese Gecovered 2 nature! way to semulate ihe inner organs via the refiex zones of tne soles of (ne py eect wees eich Hesd and feet winch refiect and stimulate tne agesive organs Thus effect is based on the principle of Reflaxotogy. Ali the body's organs nave a reflex pomt on the soles of tha feet Whe (hee poms are massaged tha functions of Ime ig orgen are Dr Metz Giscovered that (ws massage can also De works on itis same compietery natural method. With every siep you take the weotes massage (he reflex zones of the kudneys.

bladder and stomach gently but effectively “‘Dunng 4 weeks | lost 6 pounds, fr same formality and does not sieve encess fal! Oistieg Pitta narmful side affects You cee wong, sutepty happened to ef of my friends” 2 by everyday waltung The resut 9 tabutous Carmen Schieshter ote Frentic Exercising hgure nm a natural way “lost 8 pounds unthin 8 weeks... Above all | os Btrengo Pennvlcs EVERY STEP CENTLY MASSACES tke them (Strwmung ineoles) because H's $0 ee Sgeots! Feeds te Buy YOUR REFLEX ZONES KEEPING YOU oaay 00 lowe weight.” irs. Petra Jung METABOLISM WORKING.

MELP TURN ON YOUR BODY'S FAT Your wil when 1 have lost 10 pounds without fortunng myselt ‘our fet unt! hngie pieasarty you BUENING PROCESS! : wak and even wnen you si hey may feel - Gabriste Geiger Wehien ur cogeaive organs are more actve than usual The 1g due to the : ie body burns stored up lat in a naturel way unusual massaging knobs on the insoles ican aw ryor as end gestion retums to norma) Tha nappe made of The knobs not only to lose weeght Dut they make you lee! phryscally Gt ~ Carmen Steftens-Baeum vathou talung heskn-<damagng meccnes worth enactly to me retiex zones in the sates of the ie INTERMED LABORATORIES, Dept. 2215 AA70" 2101 West (atayette, Detroit, Mi 46216-1877 “I'l stake my medical reputation on it.” 3) war to sian toang segnt wrmecatety send Sqreame / me the Semreng aneceted betow =———= A Metz, MD i (Women s Szes 6-10 Mens Sures 6 13) Nema — J One paw for only $19 95 phss $3 95 postage Agar OR. METZ SLIMMING | roncey lWoren's iene Saxe a INSOLES GUARANTEE: | 1 Two pas for only $29 95 pus $4 95 postage ee nandkng ji Womens ) Mens Swe See Step by step the Skmmyng insotes anil neip you become —___— — tarromer. heakver and eal more wave’ You es be able tH 4 Enciosed is -1C~ scx 1 Money order for $ CREDIT CARD ORDERS CALL TOLL FREE congo! your went and nd your body of feb erdte axing your cosy system work far 7) peur [Charge my 4 Visa J Mastercard Exp Dt ____ 1-800-922-2217 pond Unda 3 eaoe reed Menday ts Friday 0:28AR TO 6:20PM EST for them. NO questions asked, eat -_ ' Sate Zendey 10:00AM TO 5:00°81 EST ——— 7 = A ter Opermtnn 6 MATER LL GUILDWOOD DIRECT LIMITED 1565 Complaint EXHIBIT B RESEARCH a ore CASE FILE REGARDING:

rucnol 1649.KC DR. ROBUBY MUTE, M.D. SLIBMING INSOLES CASE HISTORIES.

Test = 4 SrATEMENT eas of Thousands cf Surepeans have iset weight using Dr. Robert Moete's, M.D. Gimmtag Inceles GAGR.D. F The Dr. Metz Slimming Insoles, which we have been offering to our customers, have now finally received the recognition thay deserve. On the 29th of May, 1995, the consumer television program Markets 1 13 1 3 10 1829 1320 216 26 80.532036 Information portrayed the Slimming Insoles as an effective method to fight off excessive pounds. The test person, Mr Kohler, whom the program had picked to do this test, lost 14 Ibs. during the trial period. This weight loss was verified by weighing before and after, in the presence of the broadcaster. The original commentary of this critical program “The Slimming Insoles are the absolute best! ° Gage A Gams. al Weighs Joes Bvalnetion on 478 Buropesas Waieg Dr, Robert Motn’s Gilmorafed Ingles, The Dr. Metz S'imming Insoles were distributed to a control group of 478 individuals. The results are as follows:

68% of the individuals tested lost 14 lbs. or more. 27% of the individuals tested lost 10 Ibs. to 14 Ibs. 18% of the individuals tested lost up to 10 Ibs. The Medical Weight Loss Evaluation is considered “VERY GOOD” Individmal Success Story - Subject M.W., St. Gallen “I have tried umpteen diets in the past..." “Lost pounds came back just as fast as I'd lost them. Since I have been using Dr. Metz's Slimming Insoles my weight has slowly but steadily gone down. I think Slimming Insoles are perfect, and can recommend them to anyone!” | Complaint 123 F.T.C.

EXHIBIT B EXHIBIT B Page 2 Gane 4 Indiwidmal Success Mory ~ Pubject, B.W., laicerme *| fee! better than ever before...| was skeptical to start with because there are so many quacks claiming to help you lose weight. But only a few weeks of using Dr. Metz’s Stimming Insoles changed my opinion. Without taking medication whose side effects are unknown, | lost weight and feel better than | ever did before." GOER fF Tadiwhtuel Peacess Rtary— Gubjest PIM. Wintertsr I've5 1 8 3 1 2 740 1017 49 45 95.122009 lost5 1 8 3 1 3 803 1026 12 26 51.592751 85 1 8 3 1 4 826 1017 94 45 12.317574 ibs...A5 1 8 3 1 5 935 1017 128 45 92.504318 colleagues 1 8 3 1 6 1077 1017 61 45 74.286385 told5 1 8 3 1 7 1156 1017 31 45 95.522850 me5 1 8 3 1 8 1205 1017 49 45 95.522850 how5 1 8 3 1 9 1272 1017 91 45 81.375854 easily5 1 8 3 1 10 1377 1017 46 45 96.117134 ands 1 8 3 1 11 1441 1017 166 45 95.934189 comfortably5 1 8 3 1 12 1621 1017 31 45 96.909386 he5 1 8 3 1 13 1666 1017 46 45 96.934494 was5 1 8 3 1 14 1726 1017 124 45 36.280537 slimming5 1 8 3 1 15 1868 1017 80 45 96.116478 using4 1 8 3 2 0 665 1059 1298 37 -1 5 1 8 3 2 1 665 1063 313 33 72.923836 refiex5 1 8 3 2 2 762 1055 68 45 96.316818 zones 1 8 3 2 3 844 1063 134 33 96.363541 massage.5 1 8 3 2 4 994 1055 31 45 91.874222 At5 1 8 3 2 5 1036 1055 57 45 92.533051 firsts 1 8 3 2 6 1103 1063 6 25 91.075974 |5 1 8 3 2 7 1119 1063 230 32 96.072052 laughed5 1 8 3 2 8 1249 1055 31 45 96.647400 at5 1 8 3 2 9 1294 1055 61 45 95.066513 him.5 1 8 3 2 10 1373 1055 53 45 95.066513 But5 1 8 3 2 11 1441 1055 64 45 96.688324 weeks 1 8 3 2 12 1523 1055 31 45 95.948868 by5 1 8 3 2 13 1572 1055 61 45 96.022316 weeks 1 8 3 2 14 1648 1060 8 26 93.393524 |5 1 8 3 2 15 1673 1055 46 45 95.473686 was5 1 8 3 2 16 1733 1055 87 45 93.332123 taught5 1 8 3 2 17 1834 1065 16 20 94.447067 a5 1 8 3 2 18 1861 1055 102 45 90.854218 lesson.4 1 8 3 3 0 663 1098 1279 36 -1 5 1 8 3 3 1 659 1094 33 44 96.561462 So5 1 8 3 3 2 713 1102 8 26 92.803413 |5 1 8 3 3 3 736 1094 37 44 91.576088 too5 1 8 3 3 4 787 1094 107 44 96.737442 ordered5 1 8 3 3 5 912 1107 15 21 96.490173 a5 1 8 3 3 6 937 1094 56 44 96.576904 pairs 1 8 3 3 7 1007 1094 26 44 96.632217 of5 1 8 3 3 8 1047 1094 122 44 86.042618 Slimming5 1 8 3 3 9 1186 1094 108 44 94.500969 Insoles5 1 8 3 3 10 1308 1094 48 44 96.174263 ands 1 8 3 3 11 1374 1094 44 44 96.228607 now5 1 8 3 3 12 1440 1101 41 24 83.388916 I'm5 1 8 3 3 13 1495 1094 158 44 95.823845 impressed.5 1 8 3 3 14 1674 1094 67 44 96.376045 After5 1 8 3 3 15 1755 1094 122 44 79.808731 following5 1 8 3 3 16 1897 1098 45 24 95.915161 thea 1 8 3 4 0 660 1135 1184 36 -1 5 1 8 3 4 1 656 1131 70 44 95.427612 clears 1 8 3 4 2 740 1131 166 44 96.342026 instructions5 1 8 3 4 3 920 1131 107 44 82.566345 exactly,5 1 8 3 4 4 1037 1131 45 44 92.024376 I've5 1 8 3 4 5 1096 1131 50 44 83.288490 lost5 1 8 3 4 6 1158 1141 12 24 90.554092 85 1 8 3 4 7 1184 1131 50 44 80.727951 Ibs.5 1 8 3 4 8 1250 1140 22 25 96.356514 in5 1 8 3 4 9 1290 1131 54 44 83.673233 only5 1 8 3 4 10 1360 1140 12 24 95.999374 65 1 8 3 4 11 1393 1131 90 44 96.624969 weeks.5 1 8 3 4 12 1506 1131 45 44 96.276619 Thes 1 8 3 4 13 1569 1131 70 44 74.937805 claims 1 8 3 4 14 1653 1131 26 44 95.809952 in5 1 8 3 4 15 1693 1131 60 44 95.809952 yours 1 8 3 4 16 1767 1131 30 44 94.861908 ad5 1 8 3 4 17 1812 1135 32 25 62.367245 “A4 1 8 3 5 0 657 1173 1268 37 -1 5 1 8 3 5 1 657 1177 396 32 36.441231 fabulous5 1 8 3 5 2 784 1169 87 45 96.914764 figures 1 8 3 5 3 885 1169 31 45 94.802460 uy5 1 8 3 5 4 926 1169 46 45 96.857903 thes 1 8 3 5 5 986 1169 61 45 96.287003 most5 1 8 3 5 6 1063 1177 100 25 93.306068 natural5 1 8 3 5 7 1174 1177 125 33 46.870476 methgd”5 1 8 3 5 8 1309 1177 23 25 96.711884 is5 1 8 3 5 9 1342 1178 64 23 96.357132 true.5 1 8 3 5 10 1428 1176 231 32 96.227135 Congratulations5 1 8 3 5 11 1670 1176 27 23 96.646713 to5 1 8 3 5 12 1710 1169 42 45 95.453346 Dr.5 1 8 3 5 13 1757 1174 72 25 96.439606 Metz5 1 8 3 5 14 1838 1179 36 19 95.517914 on5 1 8 3 5 15 1885 1173 40 25 95.517914 his2 1 9 0 0 0 654 1215 1317 32 -1 3 1 9 1 0 0 654 1215 1317 32 -1 4 1 9 1 1 0 654 1215 1317 32 -1 5 1 9 1 1 1 654 1215 135 32 94.770386 Slimming5 1 9 1 1 2 800 1215 123 26 91.896881 Insoles.”5 1 9 1 1 3 1968 1228 3 4 0.000000 ,2 1 10 0 0 0 642 1274 811 9 -1 3 1 10 1 0 0 642 1274 811 9 -1 4 1 10 1 1 0 642 1274 811 9 -1 5 1 10 1 1 1 642 1274 811 9 0.000000 Sosreanconsouccsen¥sccesececresscsusserstescosucsHssaceussusensusoesacses2 1 11 0 0 0 674 841 1326 107 -1 3 1 11 1 0 0 674 841 1326 107 -1 4 1 11 1 1 0 674 841 1326 107 -1 5 1 11 1 1 1 674 841 1326 107 95.000000 2 1 12 0 0 0 1458 1261 400 31 -1 3 1 12 1 0 0 1458 1261 400 31 -1 4 1 12 1 1 0 1458 1261 400 31 -1 5 1 12 1 1 1 1458 1261 400 31 95.000000 2 1 13 0 0 0 501 535 148 1885 -1 3 1 13 1 0 0 501 535 148 1885 -1 4 1 13 1 1 0 501 535 148 957 -1 5 1 13 1 1 1 501 535 148 957 95.000000 4 1 13 1 2 0 501 1492 88 928 -1 5 1 13 1 2 1 501 1492 88 928 95.000000 2 1 14 0 0 0 630 1440 1296 226 -1 3 1 14 1 0 0 630 1440 1296 226 -1 4 1 14 1 1 0 644 1440 1247 35 -1 5 1 14 1 1 1 644 1444 43 25 88.729813 It is really true that your massage insoles have positively influenced my biological balance. The tablets, capsiwes and powders I used to take in the past always made me feel sick and dizzy. The egg diet even made me throw up on the third day. It's a pity that Dr Metz's Slimming Insoles weren't available before. If this wonderfully gentle method of slimming had been available ten years ago, I would have been spared a lot of suffering.“ abaaeeeeeaesers steseeseeuse I5 1 18 1 1 2 671 1853 70 41 95.917641 have5 1 18 1 1 3 757 1853 62 41 96.221558 lost5 1 18 1 1 4 836 1859 34 26 95.125076 105 1 18 1 1 5 887 1853 57 41 93.067818 Ibs.5 1 18 1 1 6 965 1853 117 41 88.473930 without5 1 18 1 1 7 1098 1853 159 41 96.239624 torturing5 1 18 1 1 8 1273 1853 107 41 95.447762 myself5 1 18 1 1 9 1399 1853 69 41 96.470863 with5 1 18 1 1 10 1485 1853 72 41 96.355385 some5 1 18 1 1 11 1577 1853 66 41 95.819366 kinds 1 18 1 1 12 1659 1853 31 41 96.113220 of5 1 18 1 1 13 1707 1853 65 41 90.928574 diets 1 18 1 1 14 1789 1853 59 41 96.655418 anda 1 18 1 2 0 624 1894 1192 34 -1 5 1 18 1 2 1 624 1890 126 42 95.376396 without5 1 18 1 2 2 770 1890 130 42 95.376396 appetite5 1 18 1 2 3 917 1890 146 42 95.662025 reducers.5 1 18 1 2 4 1092 1899 11 23 96.121880 I5 1 18 1 2 5 1124 1890 112 42 96.121880 always5 1 18 1 2 6 1253 1890 57 42 96.405228 had5 1 18 1 2 7 1327 1890 39 42 96.405228 my5 1 18 1 2 8 1383 1894 433 34 95.433945 difficulties5 1 18 1 2 9 1582 1890 64 42 96.888313 with5 1 18 1 2 10 1663 1890 81 42 94.164513 diets5 1 18 1 2 11 1761 1890 60 42 95.611931 and3 1 18 2 0 0 622 1935 1232 68 -1 4 1 18 2 1 0 623 1935 1231 32 -1 5 1 18 2 1 1 619 1931 182 41 95.647301 afterwards5 1 18 2 1 2 820 1936 12 25 95.924911 I5 1 18 2 1 3 851 1931 110 41 95.708351 always5 1 18 2 1 4 977 1931 107 41 96.312912 gained5 1 18 2 1 5 1100 1931 70 41 96.844292 backs 1 18 2 1 6 1186 1931 55 41 96.446785 thes 1 18 2 1 7 1257 1931 104 41 95.038147 weights 1 18 2 1 8 1374 1936 14 25 90.847305 I5 1 18 2 1 9 1404 1931 83 41 96.081665 lost,5 1 18 2 1 10 1503 1931 165 41 96.713425 sometimes5 1 18 2 1 11 1685 1931 72 41 96.111069 even5 1 18 2 1 12 1777 1931 79 41 96.104881 more4 1 18 2 2 0 622 1971 1219 32 -1 5 1 18 2 2 1 618 1967 74 42 96.917221 than5 1 18 2 2 2 713 1975 10 25 95.921371 I5 1 18 2 2 3 740 1967 50 42 91.681511 had5 1 18 2 2 4 807 1974 114 26 60.201141 lost...I5 1 18 2 2 5 934 1974 254 26 93.672897 recommends 1 18 2 2 6 1143 1967 56 42 93.269547 Dr.5 1 18 2 2 7 1204 1974 110 25 78.745270 Metz's5 1 18 2 2 8 1327 1974 161 29 89.277412 Slimming5 1 18 2 2 9 1498 1971 343 31 95.782227 Insoles5 1 18 2 2 10 1626 1967 32 42 95.782227 to5 1 18 2 2 11 1675 1971 166 31 79.329124 everyone.”2 1 19 0 0 0 614 1999 1333 103 -1 3 1 19 1 0 0 614 1999 1333 103 -1 4 1 19 1 1 0 614 1999 1333 103 -1 5 1 19 1 1 1 614 1999 1333 103 95.000000 2 1 20 0 0 0 622 2163 1330 148 -1 3 1 20 1 0 0 622 2163 1330 148 -1 4 1 20 1 1 0 622 2163 1213 32 -1 5 1 20 1 1 1 622 2167 122 26 96.752785 Overall5 1 20 1 1 2 756 2167 116 25 92.066032 resulta5 1 20 1 1 3 885 2167 132 25 96.149200 indicates 1 20 1 1 4 1030 2167 70 25 94.503151 that5 1 20 1 1 5 1113 2167 47 25 96.237137 Dr.5 1 20 1 1 6 1177 2167 115 25 93.141937 Roberts 1 20 1 1 7 1305 2166 108 25 47.602505 Metz’s5 1 20 1 1 8 1426 2164 158 31 95.496284 Slimming5 1 20 1 1 9 1596 2164 115 25 96.744659 Insoles5 1 20 1 1 10 1723 2163 79 25 95.718872 have5 1 20 1 1 11 1815 2169 20 19 95.718872 a4 1 20 1 2 0 622 2200 1307 37 -1 5 1 20 1 2 1 622 2208 131 29 71.089981 positive5 1 20 1 2 2 768 2206 111 31 96.448578 weights 1 20 1 2 3 892 2206 63 25 95.306557 loss5 1 20 1 2 4 970 2206 98 25 96.253204 results 1 20 1 2 5 1081 2212 41 18 95.788612 on5 1 20 1 2 6 1136 2212 20 19 95.441483 a5 1 20 1 2 7 1170 2208 86 28 59.428600 large5 1 20 1 2 8 1270 2205 131 25 95.959122 numbers 1 20 1 2 9 1414 2203 34 26 96.890816 of5 1 20 1 2 10 1461 2202 191 26 91.853394 individuals.5 1 20 1 2 11 1678 2202 62 25 95.786827 Thes 1 20 1 2 12 1752 2202 41 24 95.614952 all5 1 20 1 2 13 1806 2200 123 34 96.075783 natural4 1 20 1 3 0 624 2239 1296 37 -1 5 1 20 1 3 1 624 2245 184 31 96.350311 applications 1 20 1 3 2 821 2245 39 35 96.480446 of5 1 20 1 3 3 867 2245 54 25 96.981377 thes 1 20 1 3 4 936 2245 113 25 96.321213 insoles5 1 20 1 3 5 1063 2245 74 24 91.346527 does5 1 20 1 3 6 1153 2247 55 23 96.789207 not5 1 20 1 3 7 1221 2247 93 27 96.211967 upset5 1 20 1 3 8 1326 2244 54 24 96.781281 thes 1 20 1 3 9 1392 2242 108 31 92.406219 body's5 1 20 1 3 10 1514 2241 104 30 96.281944 ability5 1 20 1 3 11 1630 2243 34 22 95.646400 to5 1 20 1 3 12 1676 2240 138 25 95.646400 functions 1 20 1 3 13 1826 2241 34 23 95.459167 in5 1 20 1 3 14 1872 2239 48 25 62.533112 it’s4 1 20 1 4 0 624 2278 1328 33 -1 5 1 20 1 4 1 624 2284 123 25 93.218643 normal5 1 20 1 4 2 760 2275 133 34 96.019394 manners 1 20 1 4 3 906 2283 63 25 95.690140 ands 1 20 1 4 4 982 2283 73 25 95.690140 does5 1 20 1 4 5 1070 2286 54 22 96.477966 not5 1 20 1 4 6 1138 2286 103 22 96.262260 stress5 1 20 1 4 7 1255 2284 53 23 96.524918 thes 1 20 1 4 8 1322 2287 134 20 96.429985 nervous5 1 20 1 4 9 1470 2281 126 30 92.796700 system.5 1 20 1 4 10 1623 2280 62 25 95.995369 Thes 1 20 1 4 11 1698 2278 99 32 94.539726 gentle5 1 20 1 4 12 1810 2280 142 26 94.473923 massage2 1 21 0 0 0 625 2317 1245 76 -1 3 1 21 1 0 0 625 2317 1245 76 -1 4 1 21 1 1 0 625 2317 1245 36 -1 5 1 21 1 1 1 621 2313 107 44 95.800484 actions 1 21 1 1 2 753 2313 55 44 19.120224 nay5 1 21 1 1 3 822 2313 67 44 96.512947 also5 1 21 1 1 4 907 2313 48 44 96.183220 aids 1 21 1 1 5 969 2313 48 44 96.726349 thes 1 21 1 1 6 1039 2313 59 44 95.258636 feet5 1 21 1 1 7 1116 2322 48 24 95.258636 for5 1 21 1 1 8 1178 2313 60 44 54.662132 ind‘5 1 21 1 1 9 1244 2319 346 27 69.999100 viduals5 1 21 1 1 10 1383 2313 56 44 94.993469 who5 1 21 1 1 11 1457 2313 52 44 94.993469 ares 1 21 1 1 12 1526 2313 63 44 65.580124 for.5 1 21 1 1 13 1611 2319 19 24 49.270115 d5 1 21 1 1 14 1644 2313 33 44 96.344528 to5 1 21 1 1 15 1695 2313 85 44 96.344528 spends 1 21 1 1 16 1799 2313 71 44 96.352753 long4 1 21 1 2 0 625 2362 277 31 -1 5 1 21 1 2 1 625 2362 124 31 96.446411 periods5 1 21 1 2 2 762 2362 140 29 95.818611 walking.2 1 22 0 0 0 1998 625 94 1772 -1 3 1 22 1 0 0 1998 625 94 1772 -1 4 1 22 1 1 0 1998 625 94 1772 -1 5 1 22 1 1 1 1998 625 94 1772 95.000000 2 1 23 0 0 0 1957 2366 42 40 -1 3 1 23 1 0 0 1957 2366 42 40 -1 4 1 23 1 1 0 1957 2366 42 40 -1 5 1 23 1 1 1 1957 2366 42 40 2.982346 y,2 1 24 0 0 0 1443 2439 531 21 -1 3 1 24 1 0 0 1443 2439 531 21 -1 4 1 24 1 1 0 1443 2439 531 21 -1 5 1 24 1 1 1 1443 2444 24 15 70.161819 af5 1 24 1 1 2 1480 2435 28 33 72.686012 olf5 1 24 1 1 3 1518 2435 59 33 86.370064 farte5 1 24 1 1 4 1590 2435 39 33 45.370678 anes 1 24 1 1 5 1645 2439 329 21 0.000000 infrrmatinn5 1 24 1 1 6 1802 2435 22 33 91.633842 in5 1 24 1 1 7 1835 2435 53 33 40.113979 fide5 1 24 1 1 8 1898 2435 80 33 22.069847 rannrt2 1 25 0 0 0 533 2355 1456 124 -1 3 1 25 1 0 0 533 2355 1456 124 -1 4 1 25 1 1 0 533 2355 1456 124 -1 5 1 25 1 1 1 533 2355 1456 124 95.000000 2 1 26 0 0 0 857 2433 567 44 -1 3 1 26 1 0 0 857 2433 567 44 -1 4 1 26 1 1 0 857 2433 567 44 -1 5 1 26 1 1 1 857 2433 567 44 95.000000 2 1 27 0 0 0 946 2447 107 14 -1 3 1 27 1 0 0 946 2447 107 14 -1 4 1 27 1 1 0 946 2447 107 14 -1 5 1 27 1 1 1 942 2443 18 26 34.393585 ot5 1 27 1 1 2 970 2443 35 26 29.846916 bane5 1 27 1 1 3 1013 2443 40 26 55.160576 tha GUILDWOOD DIRECT LIMITED 1567 1558 Complaint EXHIBIT C INTERMED LABORATORIES — exararrc 2101 West Lafayette Deuwroit, MI 48216-1877 Page 1 Would you like to lose 10 Ibs. like 15% of the test group did...or 14 lbs. like 27% did... or over 14 Ibs. like 58% did? Or would you like to lose 20 Ibs...30 Ibs...50 lbs...or even 74 Ibs. like Angela Meisel did — without dieting or exercising? Then you must read this important message and join the over 370,000 Europeans who have discovered a NEW secret to weight loss! Dear Friend, Iam very anxious to tell you the exciting news of a weight loss method that is sweeping Europe. A European Doctor has made what many consider to be a major breakthrough with a natural weight loss method. His name is Dr. Robert Metz and he is a medical doctor specializing in weight loss and control. In Europa, over 370,000 weight conscious individuals are now using Dr. Metz's All Natural Weight Loss Method, Clinically tested in Europe among a group of 473 pecle, the medical test results were announced as “Very Good"! A second controlled and monitored test concluded Dr. Metz's weight loss system “as pounds”"— with a 14 Ib. weight logs achieved during the test period! Happy Europeans have been sending Dr. Metz letters of thanks and appreciation, claiming weight losses of up to 74 Ibs. And the losses were all achieved without dieting, strenuous exercising, or taking harmful pills and without buying costly, special foods.

Wouldn't you like to lose those extra pc-inds you put on over the years ... effortlessly slide into that slinky dress or slacks ... be the object of attention and admiration? Would you like to regain control of your weight without buying pills month after month .., without joining expensive weight loss programs ... without buying costly “special foods"? Would you ‘ike to regain your youthful appearance ... put the spring back in your step and face each day with a renewed vigor and vitality for life? And would you like to achieve all this without dieting or strenuous exercising? If your answer is yes to any of these questions then you must read the exciting details about this amazing NEW discovery on the other side!! Complaint 123 F.T.C.

EXHIBIT C Trigger Your Body’s Natural Fat Burning Process EXHIBIT Page 2 And Turn Food Into Energy— Wot Fat! After years of weight loss research, Dr. Metz discovered the value of reflexology, & natural method where the body's organs are stimulated to function more efficiently. Specific areas on the bottom of the feet can be massaged to stimulate the body's digestive organs. When the digestive organs are stimulated, the body burns the food we eat, turning it into energy, NOT FAT. In addition, the body's metaboliam is activated and in this state it begins to burn stored up fat. The problem was how do you periodically massage the bottom of the fest in a convenient, cost effective manner? A Weight Loss Method Designed Yor The 81st Century! Dr. Metz and a team of specialists brilliantly solved the problem! They developed a pair of insoles with massaging knobs strategically placed on the insoles that come in contact with the bottom of the feet. Called Slimming Insoles, they gently massage the reflex zones on the bottom of the feet and stimulate the body's digestive and metabolic system. These insoles fit comfortably into any normal shoe and with every step you take, the insoles keep your digestive furnace burning fat. When you walk you may feel a pleasant tingling sensation. Even when you sit your feet may still feel stimulated - confirming that the massaging action is working. Sounds simple? The most effective things usually are. Dr. Metz's Slimming Insoles Are The First And Only Insoles That Reduce Weight And Regulate The Digestive System. Many doctors believe the body has the ability to cure itself when the conditions are right. Dr. Metz’s Slimming Insoles work in exactly this natural, convenic.t manner. You lose weight naturally, -without ints 'cucing foreign drugs or chemicals into your body, which may be nore harmful than beneficiall @OCOD HEWS—Row, For The First Time Dr. Mets’s Slimming Insoles Are Available In The U3S.! Now it's your turn to find out what hundreds of thousands of Europeans already know about Dr. Metz’s amazing weight loss method. By wearing the Slimming Insoles, you will experience all day comfort, and begin to lose weight in a sensible, natural, clinically proven way! I have no doubt that the insoles will work for you as well as they have for thousands of happy, slimmer Europeans. So why not get in step and begin losing weight with every step. Dr. Metz and I are so sure that you will be thrilled with your progress - we both GUARANTEE IT. However, if for any reason you are not 100% satisfied, return the insoles for a complete refund — no questions asked. Yours for a slimmer, healthier, more active you, Justin T. Winslow Nimantan GUILDWOOD DIRECT LIMITED 1569 1558 Decision and Order DECISION AND ORDER The Federal Trade Commission having initiated an investigation of certain acts and practices of the respondent named in the caption hereof, and the respondent having been furnished 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 respondent with violation of the Federal Trade Commission Act; and The respondent, its attorneys, and counsel for the Commission having thereafter executed an agreement containing a consent order, an admission by the respondent of all the jurisdictional facts set forth in the complaint, a statement that the signing of said agreement is for settlement purposes only and does not constitute an admission by the respondent that the law has been violated as alleged in such complaint, or that the facts as alleged in such complaint, other than jurisdictional facts, are true and waivers and other provisions as required by the Commission's Rules; and The Commission having thereafter considered the matter and having determined that it had reason to believe that the respondent has violated the said Act, and that a complaint should issue stating its charges in that respect, and having thereupon accepted the executed consent agreement and placed such agreement on the public record for a period of sixty (60) days, now in further conformity with the procedure prescribed in Section 2.34 of its Rules, the Commission hereby issues its complaint, makes the following jurisdictional findings and enters the following order:

1. Respondent Guildwood Direct Limited, also doing business as Intermed Laboratories, is a corporation organized, existing and doing business under and by virtue of the laws of the State of Delaware, with its office and principal place of business located at 1402 Pine Avenue, MPO Box 2130, Niagara Falls, New York. 2. The Federal Trade Commission has jurisdiction of the subject matter of this proceeding and of the respondent, and the proceeding is in the public interest.

Decision and Order 123 F.T.C.

ORDER DEFINITIONS For purposes of this order, the following definitions shall apply: 1. “Competent and reliable scientific evidence" shall mean tests, analyses, research, studies, or other evidence based on the expertise of professionals in the relevant area, that has 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.

2. Clearly5 1 4 2 1 3 795 1142 96 42 96.089790 ands 1 4 2 1 4 897 1141 328 56 96.518974 prominently shall mean as follows: A. In a television or video advertisement, the disclosure shall be presented simultaneously in both the audio and video portions of the advertisement. The audio disclosure shall be delivered in a volume and cadence and for a duration sufficient for an ordinary consumer to hear and comprehend it. The video disclosure shall be of a size and shade, and shall appear on the screen for a duration, sufficient for an ordinary consumer to read and comprehend it. B. In a radio advertisement, the disclosure shall be delivered in a volume and cadence and for a duration sufficient for an ordinary consumer to hear and comprehend it.

C. In a print advertisement, the disclosure shall be in a type size, and in a location, that are sufficiently noticeable so that the ordinary consumer will see and read it, in print that contrasts with the background against which it appears. In multipage documents, the disclosure shall appear on the cover or the first page. D. On a product label, the disclosure shall be in a type size, and in a location on the principal display panel, that are sufficiently noticeable so that an ordinary consumer will see and read it, in print that contrasts with the background against which it appears. Nothing contrary to, inconsistent with, or in mitigation of the disclosure shall be used in any advertisement or on any label. 3. Unless otherwise specified, respondent shall mean Guildwood Direct Limited, a corporation, its successors and assigns and its officers, agents, representatives and employees. 4. Commerce shall mean as defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. 44.

GUILDWOOD DIRECT LIMITED 1571 1558 Decision and Order L It is ordered, That respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any product in or affecting commerce, shall not make any representation, in any manner, expressly or by implication, that:

A. Such product causes significant weight loss, with or without changes in diet or exercise; or B. Such product provides any weight loss, fat loss, weight regulation, weight control or weight maintenance benefit, unless, at the time the representation is made, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation.

Il.

It is further ordered, That respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any product in or affecting commerce, shall not use the name Slimming5 1 7 1 5 5 1070 1960 188 43 96.134857 Insoles or any other name in a manner that represents, expressly or by implication, that the product causes weight loss, unless, at the time the representation is made, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation.

I.

It is further ordered, That respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any food, dietary supplement, drug, device, or weight loss product or program, as food, drug and device are defined in Section 15 of the Federal Trade Commission Act, in or affecting commerce, shall not represent, in any manner, expressly or by implication, that the experience represented by any user testimonial or endorsement of the product represents the typical or Decision and Order 123 F.T.C.

ordinary experience of members of the public who use the product, unless:

A. At the time it is made, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation; or B. Respondent discloses, clearly and prominently, and in close proximity to the endorsement or testimonial, either: 1. What the generally expected results would be for users of the product, or 2. The limited applicability of the endorser's experience to what consumers may generally expect to achieve, that is, that consumers should not expect to experience similar results. For purposes of this Part, endorsement shall mean as defined in 16 CFR 255.0(b).

IV.

It is further ordered, That respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any product in or affecting commerce, shall not represent, in any manner, expressly or by implication, that Advance Bio/Natural Research Labs is a bona fide, independent research organization or that it has published a report containing the results of valid, independent testing of such product. V.

It is further ordered, That respondent, directly or through any corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any food, dietary supplement, drug, device, or weight loss product or program, as food, drug and device are defined in Section 15 of the Federal Trade Commission Act, in or affecting commerce, shall not misrepresent, in any manner, expressly or by implication:

A. The existence, contents, validity, results, conclusions or interpretations of any test, study, or research; or B. The existence, nature, purpose or activities of any organization. GUILDWOOD DIRECT LIMITED 1573 1558 Decision and Order VI.

It is further ordered, That:

A. Respondent shall pay to the Commission as consumer redress the sum of forty thousand dollars ($40,000); provided however, that this liability will be suspended, subject to the provisions of subparts B and D below, upon the payment of seven thousand and five hundred dollars ($7,500) no later than the date this order becomes final. Such payment shall be deposited into an escrow account to be designated by the Commission for the purpose of receiving payment due under this order. .

B. In the event of respondent's default on the $7,500 payment set forth in subpart A above, the amount of forty thousand dollars ($40,000), less the sum of payments made pursuant to subpart A above, shall become immediately due and payable without any notice required to be given to the respondent, and interest computed at the rate prescribed under 28 U.S.C. 1961, as amended, shall immediately begin to accrue on the unpaid balance.

C. Any funds paid by respondent pursuant to subparts A and B above shall be paid into a redress fund administered by the Commission and shall be used to provide direct redress to purchasers _ of the Slimming Insoles. If the Commission determines, in its sole discretion, that redress to purchasers is wholly or partially impracticable, any funds not so used shall be paid to the United States Treasury. Respondent shall be notified as to how the funds are disbursed, but shall have no right to contest the manner of distribution chosen by the Commission.

D. The Commission's acceptance of this order is expressly premised upon the financial statements and related documents provided by respondent to the Commission on November 18, 1996. After service upon respondent of an order to show cause, the Commission may reopen this proceeding to make a determination whether there are any material misrepresentations or omissions in said financial statements and related documents. Respondent shall be given an opportunity to present evidence on this issue. If, upon consideration of respondent's evidence and other information before it, the Commission determines that there are any material misrepresentations or omissions in said financial statements and related documents, that determination shall cause the entire amount of monetary liability of forty thousand dollars ($40,000), less the sum Decision and Order 123: R:LE, of any payments made under subpart A above, to become immediately due and payable to the Commission, and interest computed at the rate prescribed in 29 U.S.C. 1961, as amended, shall immediately begin to accrue on the unpaid balance. Proceedings initiated under this subpart are in addition to, and not in lieu of, any other civil or‘criminal remedies as may be provided by law, including any proceedings the Commission may initiate to enforce this order. VIL.

It is further ordered, That respondent Guildwood Direct Limited, and its successors and assigns, shall, for five (5) years after the last date of dissemination of any representation covered by this order, maintain and upon request make available to the Federal Trade Commission for inspection and copying:

A. All advertisements and promotional materials containing the representation;

B. All materials that were relied upon in disseminating the representation; and C. All tests, reports, studies, surveys, demonstrations, or other evidence in its possession or control that contradict, qualify, or call into question the representation, or the basis relied upon for the representation, including complaints and other communications with consumers or with governmental or consumer protection organizations.

VIL.

It is further ordered, That respondent Guildwood Direct Limited, and its successors and assigns, shall deliver a copy of this order to all current and future principals, officers, directors and managers, and to all current and future employees, agents, and representatives having responsibilities with respect to the subject matter of this order, and shall secure from each such person a signed and dated statement acknowledging receipt of the order. Respondent shall deliver this order to current personnel within thirty (30) days after the date of service of this order, and to future personnel within thirty (30) days after the person assumes such position or responsibilities. Respondent shall maintain and upon request make available to the Federal Trade Commission for inspection and copying a copy of each signed statement acknowledging receipt of the order. GUILDWOOD DIRECT LIMITED 1575 1558 Decision and Order IX.

It is further ordered, That respondent Guildwood Direct Limited, and its successors and assigns, shall notify the Commission at least thirty (30) days prior to any change in the corporation that may affect compliance obligations arising under this order, including but not limited to a dissolution of a subsidiary, parent or affiliate that engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; or a change in the corporate name or address. Provided, however, that, with respect to any proposed change in the corporation about which respondent learns less than thirty (30) days prior to the date such action is to take place, respondent shall notify the Commission as soon as is practicable after obtaining such knowledge. All notices required by this Part shall be sent by certified mail to the Associate Director, Division of Enforcement, Bureau of Consumer Protection, Federal Trade Commission, Washington, D.C. ae.

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

XL.

This order will terminate on June 16, 2017, or twenty (20) years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not effect the duration of: A. Any Part in this order that terminates in less than twenty (20) years;

B. This order's application to any respondent that is not named as a defendant in such complaint; and C. This order if such complaint is filed after the order has terminated pursuant to this Part.

Decision and Order 123 F.T.C.

Provided further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this Part as though the complaint had never been filed, except that the order will not terminate between the date such complaint is filed and the later of the deadline for appealing such dismissal or ruling and the date such dismissal or ruling is upheld on appeal.

BODYWELL, INC., ET AL. 1577 1577 Complaint