9623270
B252584

UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION

In the Matter of

NEW VISION INTERNATIONAL, INC., and NVI PROMOTIONS, L.L.C., corporations, and JASON P. BOREYKO and BENSON K. BOREYKO, individually and as officers of the corporations.

DOCKET NO. C-3856

COMPLAINT

The Federal Trade Commission, having reason to believe that New Vision International, Inc., and NVI Promotions, L.L.C., corporations, and Jason P. Boreyko and Benson K. Boreyko, individually and as officers of the corporations, ("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:

1. Respondent New Vision International, Inc. ("New Vision") is an Arizona corporation with its principal office or place of business at 7762 East Gray Road, Suite 500, Scottsdale, AZ 85260.

2. Respondent NVI Promotions, L.L.C., is an Arizona corporation with its principal office or place of business at 7762 East Gray Road, Suite 500, Scottsdale, AZ 85260.

3. Respondent Jason P. Boreyko is an officer of the corporate respondents. Individually or in concert with others, he formulates, directs, or controls the policies, acts, or practices of the corporations, including the acts or practices alleged in this complaint. His principal office or place of business is the same as that of the corporations.

4. Respondent Benson K. Boreyko is an officer of the corporate respondents. Individually or in concert with others, he formulates, directs, or controls the policies, acts, or practices of the corporations, including the acts or practices alleged in this complaint. His principal office or place of business is the same as that of the corporations.

5. Respondents have manufactured, advertised, labeled, offered for sale, sold, and distributed nutritional supplement products, and audiotapes and other promotional materials for these products, and have engaged in the recruitment of distributors for the products. The respondents have dominated, controlled, furnished the means, instrumentalities, services and facilities for and/or condoned or approved the acts and practices referred to below.

6. Respondents have developed a multilevel marketing plan to sell New Vision products through distributors to consumers. The marketing plan allows distributors to earn money by selling the products at a suggested mark-up to consumers. Distributors also recruit and train other individuals to be distributors in the respondents' marketing plan. Distributors earn money based on purchases from New Vision made by these recruits and others who they, in turn, recruit to be distributors.

7. Respondents have established the marketing plan, and recruited distributors, for the purpose of promoting, selling, or otherwise distributing New Vision products. Among other things, New Vision provides each new distributor with a sales kit that contains brochures, order forms, and other materials identifying New Vision, that are intended to be, and are, used by distributors in their sales efforts. NVI Promotions, L.L.C., sells promotional materials, including brochures, audiotapes, and custom printed cassette labels, to New Vision distributors. These promotional materials are intended to be, and are, used by distributors in their sales and recruitment efforts.

8. Respondents have advertised, promoted, offered for sale, sold, and distributed various nutritional supplements, including: (a) "PC Grape Seed Extract with an Herbal Blend;" (b) "Essential Minerals;" and (c) "Multi-Enzymes with Alfalfa/Barley Sprouts." In some of their promotional materials, respondents collectively refer to these products as "God's Recipe," and tout them as a natural alternative to the prescription drug Ritalin for children suffering from Attention Deficit Disorder or Attention Deficit/Hyperactivity Disorder ("ADD/ADHD"). These products are "'foods' and/or 'drugs'," within the meaning of Sections 12 and 15 of the Federal Trade Commission Act.

9. 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.

10. Respondents have disseminated or have caused to be disseminated advertisements for God's Recipe, including but not necessarily limited to the attached Exhibits A through D. These advertisements contain the following statements:

A. "The problem: Johnny isn't staying up with the rest of the children, he's getting into fights at recess and he's just not listening. The teacher has seen it hundreds of times: ADD (Attention Deficit Disorder) - the most common form of treatment: Ritalin. Parents trusting the advice of well-meaning professionals are unknowingly starting their children on a cycle of chemical dependency. Is there an alternative? The good news is yes, and this tape will outline what has become known as 'God's recipe' as well as letting you hear from some doctors on this very subject. God's recipe is made up of three very exciting, natural health products. The three products you'll hear about on this tape are colloidal minerals, OPC grape seed extract containing ginkgo biloba, and a multi-enzyme product. This combination is making a huge difference in the lives of thousands of children and is a natural approach that works....

One out of every three is going to drop out of school and if they carry this into adulthood, the national statistics are that one out of every ten will attempt suicide, so my recommendation is a couple of ounces of colloidal minerals each day for these children. We believe that the anti-oxidant is very important to help clean up the free radical damage that is going on inside their little brains and we combine that with ginkgo biloba and then we think that the multi-enzymes to help them metabolize that sugar that they're going to get -- we just can't seem to eliminate enough of it -- is very important....

I've learned a lot tonight and I very much appreciate your being willing to share all of this. I think one of the things that I'd like to kind of end with here is as Zoanne said, "Thank God." And it seems to me that we have properly titled what we're doing and the success of this formulation, this combination of natural nutritional supplements with eight, 10, 15 calls I get a day and the hundreds and hundreds of parents and children now that are benefitting from this, we really can, I think, in good consciousness call it God's recipe. And what most of us are doing is two ounces of these colloidal minerals spread during the day, maybe first thing in the morning and then sometime mid to late afternoon, 40 milligrams of this Proanthocyanidin, preferably one that comes from grape seed extract in combination with Ginkgo Biloba and we think that you should take those roughly at the same time that you take the mineral supplementation and then lastly, because there is no question that sugar is a major culprit in ADHD and ADD, we need to eliminate sugar as much as possible from all of our diets, but particularly from the diets of those that are very sensitive and impacted negatively by sugar and in order to help ease the problem of the sugar that we are unable to eliminate, these multi-enzyme capsules are phenomenal because as Dr. Chris has told us tonight, they assist mightily in metabolizing the sugar and getting that whole digestive process and the reaction of digesting sugar under control so that we don't get the mood swings and the metabolic swings. So we call that God's recipe. Hopefully, with the information that you have been kind enough to share with us tonight, the recipe will spread and the resultant blessing will occur to as many people as possible. So, I would just say, again, thank you."

(Exhibit A, Transcript of tape entitled "God's Recipe - The Natural Alternative to Ritalin.")

B. "Former Executive VP with Days Inn of America wants to rid the world of Ritalin, substitute good nutrition and dietary supplements in its place...

I attended a lecture by Dr. Kris Van Oeveren last year, at which time he stated that in his practice, he often dealt with children who were ADHD. In many cases (but not all), it was his opinion that these children were unable to adequately process sugar or glucose, and if you added a good multi-enzyme supplement (one containing sufficient gluco-amylase) to their diets, that the problems would disappear, or as a minimum. be greatly reduced....

Having watched my son suffer through the anguish and destruction of being on Ritalin for six years of his life, I was absolutely dumbstruck! I thought, "Are you trying to tell me that I could have avoided putting my son (and my family) through that nightmare from hell by simply giving him a 100% natural supplement? I don't believe it!" But the guilt and sadness of those memories with my son and the family during his formative years of ages six through twelve would not let this stunning disclosure subside from my consciousness. I decided to test this idea with friends from Memphis, who had a son, on Ritalin, and not doing well at all. In fact. he was the same age as my son when our drug odyssey began....

Back to my friends in Tennessee. They agreed to have their son's pediatrician monitor the reduction of Ritalin over a 30 day period, combined with the addition of certain natural nutritional supplements. At the end of this test period, they reported that the Ritalin was no longer being taken and that there had been no negative changes in behavior....

Now, hundreds and perhaps many thousands of cases later, parents are hearing glowing reports of their children' outstanding performances in the academic environment as well as the social environments in which they are asked to participate. In fact. while I have no certified statistical evidence to support this conclusion other than anecdotal, I have not had a single report back to me that even one single child has had to return to Ritalin after trying a combination of three natural nutritional supplements which I call 'God's Recipe.'"

(Exhibit B, "Well Being Journal," Vol V, No. 4, July/August 1996 (Included in "Attention Deficit Hyperactivity Disorder" pamphlet.))

C. "God's Recipe

1.) 2 ounces of Colloidal Minerals.

2.) 40 milligrams of highly effective antioxidant - OPC capsule combined with Ginkgo Biloba.

3.) Multi-enzyme capsule with every meal and with every significant snack, as well as the elimination of as much sugar as possible from the diet.

* See back page for more information

[Back Page]

Information on our "God's Recipe" Products

1.) Colloidal Minerals

These are minerals in a delicious liquid form that children of all ages really enjoy. The minerals are extremely easy for the body to absorb as they are extracted from plant source deposits of vegetation origin. In fact, the absorption rate in the body of these minerals is much greater than elemental minerals taken in tablet form. There are over 60 minerals in every 32 ounce bottle.

2.) Antioxidant with Ginkgo Biloba:

This antioxidant is OPC and is derived from the original patented grape seed extract. It has 50 times more antioxidant potency than vitamin E, and 20 times more than vitamin C. In combination with Ginkgo Biloba and other herbs, it can have a very positive impact on one's health.

3.) Multi-Enzymes

As the basis of all metabolic activity, enzymes are the driving force of. our body's more than 150,000 biochemical reactions. Enzymes are very important for effectively metabolizing sugars, an activity of critical importance to ADHD control. A balanced blend of enzymes and minerals maximizes the assimilation of nutrients.

WHEN TO TAKE GOD'S RECIPE

Take one ounce of Colloidal Minerals and 1 capsule (20 milligrams) of the Antioxidant with Ginkgo Biloba first thing in the morning, and both again mid-to-late afternoon. Take 1 capsule of Multi-Enzymes with each meal and with each significant snack. Eliminate sugar throughout the day and evening.

We wish you and your family the best. If you have any questions, or would like to place an order, please call us at:..."

(Exhibit C, Excerpted from "Attention Deficit Hyperactivity Disorder" pamphlet.)

D. "GOD'S RECIPE TESTIMONIALS

Good evening Mr. James: This is Shondra W. I had talked to you about a month ago to get information from you about how I could get my son off of Ritalin. And I just wanted you to know that I have had him completely off Ritalin for the past five days and I couldn't be more pleased with the way he is doing, he is doing so well. He is such a pleasure to be with now. And he is feeling better himself, he doesn't even want foods with sugar. And I just wanted to tell you 'Thank You and I really appreciate all of your help. (Shondra W, Texas)

Dear Max: We started about four and a half months ago and this has been the greatest four and a half months my son and I have ever had, ever. My son is 6 years old. He was being brought to my work by the school principle because he was such a severe discipline problem that he was under consideration to be 'kicked out' of first grade. I was accused by the school of not being strict enough with my son, not disciplining him enough. It was right after that meeting with the school teachers and counselors that I started him on the program (God's Recipe) and we have had perfect behavior since then. He won an award pin for his perfect behavior and he won an all expense paid vacation from the principle for perfect behavior for four straight months. His teacher says that she wishes that she could get this (God's Recipe) for every kid in class. This is the best thing that has ever happened to us. I thank God that we have this. I really, really do! (Zoanne, California)"

(Exhibit D, Excerpted from "Attention Deficit Hyperactivity Disorder" pamphlet.)

11. Through the means described in Paragraph 10, respondents have represented, expressly or by implication, that:

A. God's Recipe can cure, prevent, treat or mitigate Attention Deficit Disorder or its symptoms.
 
B. God's Recipe can cure, prevent, treat or mitigate Attention Deficit Hyperactivity Disorder or its symptoms.
 
C. God's Recipe is an effective alternative treatment to the prescription drug Ritalin for Attention Deficit Disorder and Attention Deficit Hyperactivity Disorder.
 
D. Testimonials from consumers appearing in the advertisements for God's Recipe reflect the typical or ordinary experience of members of the public whose children have used the product.

12. Through the means described in Paragraph 10, respondents have represented, expressly or by implication, that they possessed and relied upon a reasonable basis that substantiated the representations set forth in Paragraph 11, at the time the representations were made.

13. In truth and in fact, respondents did not possess and rely upon a reasonable basis that substantiated the representations set forth in Paragraph 11, at the time the representations were made. Therefore, the representation set forth in Paragraph 12 was, and is, false or misleading.

14. The acts and practices of respondents 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 third day of March, 1999, has issued this complaint against respondents.

By the Commission.

Donald S. Clark
Secretary

SEAL: