UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
________________________________________ ) In the Matter of ) ) ) FILE NO. 942-3328 VICTORIA BIE d/b/a BODY GOLD ) ) AGREEMENT CONTAINING ) CONSENT ORDER TO ) CEASE AND DESIST ________________________________________)
The Federal Trade Commission, having initiated an investigation of certain acts and practices of Victoria Bie dba Body Gold, hereinafter sometimes referred to as proposed respondent, and it now appearing that proposed respondent is willing to enter into an agreement containing an order to cease and desist from the use of the acts and practices being investigated,
IT IS HEREBY AGREED by and between Victoria Bie and her attorney, and counsel for the Federal Trade Commission that:
ORDER
DEFINITIONS
For the purposes of this order:
I.
IT IS ORDERED that respondent Victoria Bie, doing business as Body Gold or under any other name, and respondent's agents, representatives, and employees, directly or through any partnership, corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, packaging, advertising, promotion, offering for sale, sale, or distribution of Chromium Picolinate, 24K with Chromium Picolinate, Daily Energy Formula, CitriGold, or any food, dietary supplement, or drug, as "food" and "drug" are defined in Section 15 of the Federal Trade Commission Act, 15 U.S.C. § 55, in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44, do forthwith cease and desist from representing, in any manner, directly or by implication, that:
unless, at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation.
II.
IT IS ORDERED that respondent Victoria Bie, doing business as Body Gold or under any other name, and respondent's agents, representatives, and employees, directly or through any partnership, corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, packaging, advertising, promotion, offering for sale, sale, or distribution of L-Carnitine, Super Fat Burner Formula, or any food, dietary supplement, or drug, as "food" and "drug" are defined in Section 15 of the Federal Trade Commission Act, 15 U.S.C. § 55, in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44, do forthwith cease and desist from representing, in any manner, directly or by implication, that:
unless, at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation.
III.
IT IS FURTHER ORDERED that respondent Victoria Bie, doing business as Body Gold or under any other name, and respondent's agents, representatives, and employees, directly or through any partnership, corporation, subsidiary, division or other device, in connection with the manufacturing, labeling, packaging, advertising, promotion, offering for sale, sale, or distribution of any food, dietary supplement, or drug, as "food" and "drug" are defined in Section 15 of the Federal Trade Commission Act, 15 U.S.C. § 55, in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44, do forthwith cease and desist from making, in any manner, directly or by implication, any representation regarding the performance, benefits, efficacy, or safety of such product, unless, at the time of making such representation, respondent possesses and relies upon competent and reliable scientific evidence that substantiates the representation.
IV.
IT IS FURTHER ORDERED that respondent Victoria Bie, doing business as Body Gold or under any other name, and respondent's agents, representatives, and employees, directly or through any partnership, corporation, subsidiary, division, or other device, in connection with the manufacturing, labeling, packaging, advertising, promotion, offering for sale, sale, or distribution of any product or program, in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44, do forthwith cease and desist from misrepresenting, in any manner, directly or by implication, the existence, contents, validity, results, conclusions, or interpretations of any test or study.
V.
IT IS FURTHER ORDERED that respondent Victoria Bie, doing business as Body Gold or under any other name, and respondent's agents, representatives, and employees, directly or through any partnership, corporation, subsidiary, division or other device, in connection with the advertising, packaging, labeling, promotion, or offering for sale, sale or distribution of any product or program in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44, do forthwith cease and desist from representing, in any manner, directly or by implication, that any endorsement (as "endorsement" is defined in 16 C.F.R. § 255.0(b)) of a product or program represents the typical or ordinary experience of members of the public, who use the product or program, unless at the time of making such a representation, the representation is true, and respondent possessed and relied upon competent and reliable evidence, which when appropriate must be competent and reliable scientific evidence, that substantiates such representation.
PROVIDED, however, respondent may use such endorsements if the statements or depictions that comprise the endorsements are true and accurate, and if respondent discloses clearly and prominently and in close proximity to the endorsement:
VI.
Nothing in this order shall prohibit respondent from making any representation that is specifically permitted in labeling for any product by regulations promulgated by the Food and Drug Administration pursuant to the Nutrition Labeling and Education Act of 1990.
VII.
Nothing in this order shall prohibit respondent from making any representation for any drug that is permitted in labeling for any such drug under any tentative final or final standard promulgated by the Food and Drug Administration, or under any new drug application approved by the Food and Drug Administration.
VIII.
IT IS FURTHER ORDERED that for three (3) years after the last date of dissemination of any representation covered by this order, respondent shall maintain and upon request make available to the Federal Trade Commission for inspection and copying:
IX.
IT IS FURTHER ORDERED that respondent shall notify the Federal Trade Commission at least thirty (30) days prior to any proposed change in the company, such as dissolution, assignment, or sale resulting in the emergence of a successor entity, the creation or dissolution of subsidiaries or affiliates, or any other change in the company that may affect compliance obligations arising under this order.
X.
IT IS FURTHER ORDERED that the respondent shall, within thirty (30) days after service of this order, distribute a copy of this order to all agents, representatives, or employees engaged in the preparation or placement of advertisements, promotional materials, product labels or other sales materials covered by this order, and shall obtain from each such agent, representative or employee a signed statement acknowledging receipt of the order.
XI.
IT IS FURTHER ORDERED that respondent shall, within sixty (60) days after 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 she has complied with this order.
XII.
This order will terminate twenty years from the date of its issuance, or twenty years from the most recent date that the United States or the Federal Trade Commission files a complaint (with or without an accompanying consent decree) in federal court alleging any violation of the order, whichever comes later; provided, however, that the filing of such a complaint will not affect the duration of:
Provided further, that if such complaint is dismissed or a federal court rules that the respondent did not violate any provision of the order, and the dismissal or ruling is either not appealed or upheld on appeal, then the order will terminate according to this paragraph as though the complaint was never filed, except that the order will not terminate 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.
Signed this ___ day of _________, 1995.
Victoria Bie d/b/a Body Gold
5930 La Jolla Hermosa
La Jolla, CA 92037
By: _______________________________________
Victoria Bie, sole proprietor
Attorney for Proposed Respondent
Signed this _____ day of ______________________, 1995
Federal Trade Commission
By: __________________________________________
Sohni Z. Bendiks
APPROVED:
Claude C. Wild III
Regional Director
Denver Regional Office
________________________________
Jodie Z. Bernstein
Director
Bureau of Consumer Protection
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
________________________________________ ) In the Matter of ) ) ) VICTORIA BIE d/b/a BODY GOLD ) DOCKET NO. ) ________________________________________)
COMPLAINT
The Federal Trade Commission, having reason to believe that Victoria Bie doing business as Body Gold ("respondent") has violated the provisions of the Federal Trade Commission Act, and it appearing to the Commission that a proceeding by it in respect thereof would be in the public interest, alleges:
PARAGRAPH ONE: Respondent Victoria Bie is the sole proprietor of Body Gold, a California company with its principal office or place of business located at 5930 La Jolla Hermosa, La Jolla, California 92037. Respondent formulates, directs, and controls the acts and practices of Body Gold, including the acts and practices alleged in this complaint.
PARAGRAPH TWO: Respondent has advertised, offered for sale, sold, and distributed nutritional supplements, including, but not limited to, Chromium Picolinate (200 and 400 mcg), 24K with Chromium Picolinate, Daily Energy Formula (with Chromium Picolinate), and CitriGold (with Chromium Picolinate and Hydroxycitric Acid), collectively referred to as "Chromium Picolinate," as weight loss, fat loss, muscle enhancing and/or muscle building aids. Respondent has also advertised, offered for sale, sold and distributed the nutritional supplements L-Carnitine and Super Fat Burner Formula (containing L-Carnitine) as products that increase stamina or endurance, as well as aid in fat loss, weight loss and muscle toning. Each of respondent's nutritional supplements is a "food" and/or "drug" within the meaning of Sections 12 and 15 of the Federal Trade Commission Act, 15 U.S.C. §§ 52, 55.
PARAGRAPH THREE: The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act, 15 U.S.C. § 44.
PARAGRAPH FOUR: Respondent has disseminated or has caused to be disseminated advertisements and promotional materials for Chromium Picolinate, including but not necessarily limited to the attached Exhibits A-L. These advertisements and promotional materials contain the following statements:
- "In a breakthrough university study with Chromium Picolinate, fat loss was dramatic: [GRAPH] Unhealthy body fat decreased 17% in only 2 weeks and continued to an average 22% loss at the end of the 6-week study. In only six weeks, participants given Chromium Picolinate lost 22% of their body fat!" (Exhibit H)
PARAGRAPH FIVE: Through the use of the statements contained in the advertisements and promotional materials referred to in PARAGRAPH FOUR, including but not necessarily limited to the advertisements and promotional materials attached as Exhibits A-L, respondent has represented, directly or by implication, that:
B. Chromium Picolinate causes significant weight loss.
C. Chromium Picolinate causes rapid weight or fat loss.
D. Chromium Picolinate significantly reduces serum cholesterol.
E. Chromium Picolinate significantly increases human metabolism.
F. Chromium Picolinate increases lean body mass and builds muscle.
G. Chromium Picolinate causes weight loss without diet and/or strenuous exercise.
H. Chromium Picolinate controls appetite and craving for sugar.
I. Chromium Picolinate lowers or regulates blood sugar.
J. Chromium Picolinate increases energy and/or stamina.
K. Testimonials from consumers appearing in advertisements or promotional materials for Chromium Picolinate reflect the typical or ordinary experience of members of the public who have used the product.
PARAGRAPH SIX: Through the use of the statements contained in the advertisements and promotional materials referred to in PARAGRAPH FOUR, including but not necessarily limited to the advertisements and promotional materials attached as Exhibits A-L, respondent has represented, directly or by implication, that at the time she made the representations set forth in PARAGRAPH FIVE, respondent possessed and relied upon a reasonable basis that substantiated such representations.
PARAGRAPH SEVEN: In truth and in fact, at the time she made the representations set forth in PARAGRAPH FIVE, respondent did not possess and rely upon a reasonable basis that substantiated such representations. Therefore, the representation set forth in PARAGRAPH SIX was, and is, false and misleading.
PARAGRAPH EIGHT: Through the use of the statements contained in the advertisements and promotional materials referred to in PARAGRAPH FOUR, including but not necessarily limited to the advertisements and promotional materials attached as Exhibits A-L, respondent has represented, directly or by implication, that scientific studies demonstrate that Chromium Picolinate:
PARAGRAPH NINE: In truth and in fact, scientific studies do not demonstrate that Chromium Picolinate:
Therefore the representations set forth in PARAGRAPH EIGHT were, and are, false and misleading.
PARAGRAPH TEN: Respondent has disseminated or caused to be disseminated advertisements and promotional materials for L-Carnitine and Super Fat Burner Formula, including but not necessarily limited to the attached Exhibits D and L. These advertisements and promotional materials contain the following statements:
PARAGRAPH ELEVEN: Through the use of the statements contained in the advertisements and promotional materials referred to in PARAGRAPH TEN, including but not necessarily limited to the advertisements and promotional materials attached as Exhibits D and L, respondent has represented, directly or by implication, that:
PARAGRAPH TWELVE: Through the use of the statements contained in the advertisements and promotional materials referred to in PARAGRAPH TEN, including but not necessarily limited to the advertisements and promotional materials attached as Exhibits D and L, respondent has represented, directly or by implication, that at the time she made the representations set forth in PARAGRAPH ELEVEN, respondent possessed and relied upon a reasonable basis that substantiated such representations.
PARAGRAPH THIRTEEN: In truth and in fact, at the time she made the representations set forth in PARAGRAPH ELEVEN, respondent did not possess and rely upon a reasonable basis that substantiated such representations. Therefore, the representation set forth in PARAGRAPH TWELVE was, and is, false and misleading.
PARAGRAPH FOURTEEN: Respondent has disseminated or caused to be disseminated advertisements and promotional materials for CitriGold, including but not necessarily limited to, the attached Exhibit M. These advertisements and promotional materials contain the following statements:
PARAGRAPH FIFTEEN: Through the use of the statements contained in the advertisements and promotional materials referred to in PARAGRAPH FOURTEEN, including but not necessarily limited to the advertisement attached as Exhibit M, respondent has represented, directly or by implication, that:
PARAGRAPH SIXTEEN: Through the use of the statements contained in the advertisements and promotional materials referred to in PARAGRAPH FOURTEEN, including but not necessarily limited to the advertisement attached as Exhibit M, respondent has represented, directly or by implication, that at the time she made the representations set forth in PARAGRAPH FIFTEEN, respondent possessed and relied upon a reasonable basis that substantiated such representations.
PARAGRAPH SEVENTEEN: In truth and in fact, at the time she made the representations set forth in PARAGRAPH FIFTEEN, respondent did not possess and rely upon a reasonable basis that substantiated such representations. Therefore, the representation set forth in PARAGRAPH SIXTEEN was, and is, false and misleading.
PARAGRAPH EIGHTEEN: 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.
THEREFORE, the Federal Trade Commission this ___ day of , 1996, has issued this complaint against respondent.
By the Commission.
SEAL:
Donald S. Clark
Secretary
[Exhibits A-M attached to paper copies of complaint, but not available in electronic format.]
Analysis of Consent Order
to Aid Public Comment
The Federal Trade Commission has accepted an agreement, subject to final approval, to a proposed consent order from Victoria Bie d/b/a Body Gold.
The proposed consent order has been placed on the public record for sixty (60) days for reception of comments by interested persons. Comments received during this period will become part of the public record. After sixty (60) days, the Commission will again review the agreement and the comments received and will decide whether it should withdraw from the agreement and take other appropriate action or make final the agreement's proposed order.
This matter concerns advertising claims made by Victoria Bie d/b/a Body Gold in selling dietary supplements. The Commission's complaint in this matter alleges that respondent advertised and sold products containing chromium picolinate, (-)hydroxycitric acid and L-carnitine.
Regarding chromium picolinate, the complaint charges that respondent represented without adequate substantiation that chromium picolinate causes weight and fat loss (rapidly and without diet or strenuous exercise), lowers cholesterol levels, increases human metabolism, increases lean body mass, builds muscle, controls appetite and sugar cravings, regulates blood sugar and increases energy and/or stamina. The complaint also charges that respondent represented without adequate substantiation that testimonials in her advertisements and promotional materials reflect the typical and ordinary experiences of members of the public who have used products containing chromium picolinate. Finally, the complaint charges that respondent falsely claimed that scientific studies supported her claims that chromium picolinate reduces body fat, causes rapid body fat loss, increases lean body mass and builds muscle, causes significant weight loss, significantly reduces serum cholesterol, lowers or regulates blood sugar, and increases energy or stamina.
Regarding L-carnitine, the complaint charges that respondent represented without adequate substantiation that taking L-carnitine as a supplement reduces body fat, causes weight loss, tones muscles, increases stamina, and enhances athletic performance. The complaint also charges that respondent represented without adequate substantiation that testimonials in her advertisements and promotional materials reflect the typical or ordinary experience of members of the public who have used products containing L-carnitine.
Regarding (-)hydroxycitric acid, the complaint alleges that respondent represented without adequate substantiation that CitriGold, which is a combination of chromium picolinate and (-)hydroxycitric acid, causes weight loss, reduces body fat, and controls appetite.
The proposed consent order contains provisions designed to remedy the violations charged and to prevent respondent from engaging in similar acts and practices in the future.
Part I of the proposed order requires respondent to cease and desist from representing that chromium picolinate, CitriGold, or any other food, dietary supplement, or drug reduces body fat, causes weight loss, causes rapid weight or fat loss, causes weight or fat loss without dieting or strenuous exercise, reduces serum cholesterol levels, increases human metabolism, increases lean body mass and builds muscle, increases energy or stamina, controls appetite and/or cravings for sugar, and regulates blood sugar, unless respondent possesses competent and reliable scientific evidence that substantiates the representation.
Part II of the proposed order requires respondent to cease and desist from representing that L-carnitine, or any food, dietary supplement, or drug improves fat metabolism, causes fat loss, causes weight loss, tones muscles, enhances athletic performance and/or increases stamina, unless respondent possesses competent and reliable scientific evidence that substantiates the representation.
Part III of the proposed order requires that respondent cease and desist from making any representation regarding the performance, benefits, efficacy or safety of any food, dietary supplement or drug unless, at the time of making such representation, respondent possesses competent and reliable scientific evidence that substantiates the representation.
Part IV of the proposed order requires that respondent cease and desist from misrepresenting in any manner the existence, contents, validity, results, conclusions or interpretations of any test or study.
Part V of the proposed order requires that respondent cease and desist from representing that any endorsement of a product or program represents the typical or ordinary experience of members of the public unless, at the time of making such representation, the representation is true, and respondent possesses and relies upon competent and reliable evidence that substantiates the representation. However, respondent may use such endorsements if the statements in the endorsement are true, and if respondent discloses clearly and prominently, close to the endorsement, what the generally expected results would be in the depicted circumstances or, the limited applicability of the endorser's experience to what consumers may generally expect to achieve.
Parts VI and VII of the proposed order permit respondent to make certain representations on labels as specifically permitted under Food and Drug Administration regulations or standards.
The proposed order also requires the respondent to maintain materials relied upon to substantiate the claims covered by the order (Part VIII); to notify the Commission of any proposed change in the company that might affect compliance with the order (Part IX); to distribute copies of the order to all agents, representatives and employees (Part X); and to file one or more reports detailing compliance with the order (Part XI). The order also contains a provision that it will terminate after twenty (20) years absent the filing of a complaint against respondent alleging violation of the order (Part XII).
The purpose of this analysis is to facilitate public comment on the proposed order. It is not intended to constitute an official interpretation of the agreement and proposed order or to modify in any way their terms.