9723157
B244830

UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION

In the Matter of

Herbal Worldwide Holdings Corp., a corporation, José Diaz, individually and as an officer of the corporation, and Eduardo N. Naranjo, individually and as an officer of the corporation

DOCKET NO. C-3827

COMPLAINT

The Federal Trade Commission, having reason to believe that Herbal Worldwide Holdings Corp., a corporation, José Diaz, individually and as an officer of the corporation, and Eduardo Naranjo, individually and as an officer of the corporation ("respondents"), have 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 Herbal Worldwide Holdings Corp. ("Herbal") is a Florida corporation with its principal office or place of business at 3326 Mary Street, Miami, Florida, 33133.

2. Respondent José Diaz is an owner and officer of respondent Herbal. Individually or in concert with others, he formulates, directs, or controls the policies, acts, or practices of Herbal, including the acts or practices alleged in this complaint. His principal office or place of business is the same as that of Herbal.

3. Respondent Eduardo N. Naranjo is an owner and officer of respondent Herbal. Individually or in concert with others, he formulates, directs, or controls the policies, acts, or practices of Herbal, including the acts or practices alleged in this complaint. His principal office or place of business is the same as that of Herbal.

4. Respondents have manufactured, advertised, labeled, offered for sale, sold, and distributed an over-the-counter weight-loss product to the public called "Fattaché." The ingredients of Fattaché include psyllium, chitosan (from deacetylated shellfish shells), glucomannan, and apple pectin. Fattaché is a "food" and/or "drug," within the meaning of Sections 12 and 15 of the Federal Trade Commission Act.

5. 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.

6. Respondents have disseminated or have caused to be disseminated Spanish-language advertisements for Fattaché, including but not necessarily limited to the attached Exhibit A, which is the transcription of a television advertisement with an English-language translation. The advertisement contains the following statements:

A. Fattaché, a revolutionary product to lose weight easily and in little time.
 
B. I obtained results very quickly without having to leave my favorite foods. [During this statement, a subscript states "voluntary testimonial"].
 
C. Nutrition specialists agree that Fattaché is the best alternative to absorb the fat in your body.
 
D. ... two capsules of Fattaché that will look for fat converting it into a layer of fiber which the body will automatically eliminate. That fat, if it remains in our body, is what causes weight gain ....
 
E. Fattaché helps eliminate the fat that enters your body before it is digested.

7. Through the means described in Paragraph 6, respondents have represented, expressly or by implication, that:

A. Fattaché causes weight loss without a change in diet.
 
B. Fattaché prevents the absorption of ingested fat.
 
C. Fattaché helps eliminate ingested fat before it is absorbed.
 
D. Testimonials from consumers appearing in advertisements for Fattaché reflect the typical or ordinary experience of members of the public who use Fattaché.

8. Through the means described in Paragraph 6, respondents have represented, expressly or by implication, that they possessed and relied upon a reasonable basis that substantiated the representations set forth in Paragraph 7, at the time the representations were made.

9. In truth and in fact, respondents did not possess and rely upon a reasonable basis that substantiated the representations set forth in Paragraph 7, at the time the representations were made. Among other reasons, much of the research relied on by respondents did not address the weight loss and fat absorption effects discussed in the advertisement, and/or the results of the research could not be extrapolated to the population as a whole because of methodological weaknesses. Therefore, the representation set forth in Paragraph 8 was, and is, false or misleading.

10. 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 sixteenth day of September, 1998, has issued this complaint against respondents.

By the Commission.

Donald S. Clark
Secretary

SEAL:

TRANSLATION

Announcer: To show a nicer figure get Fattache.

Fattache, a revolutionary product to lose weight easily and in little time.

Subscript: "Voluntary testimony"

“I obtained result very quickly without having to leave my favorite foods.”

Subscript: "Fattache helps eliminate the fat that enters your body before it is digested. It is not designed to directly reduce the fat already in your body. Results may vary individually."

Announcer: Nutrition specialists agree that Fattache is the best alternative to absorb the fat in your body. Mixing water with olive oil, we will add two capsules of Fattache that will look for fat, converting it into a layer of fiber which the body will automatically eliminate. That fat, if it remains in our body, is what causes weight gain and serious health problems.

Subscript: "Voluntary testimony:"

With Fattache, I lost what I was not able to lose with other diets.

Jar of Fattache with 180 tablets for only $39.95. Free gift of additional jar with 60 tablets.

Call toll free now at 1-800-600-4040

7940 SW 8th St., Miami, FL 33144

========================================================

PARA LUCIR UNA MEJOR FIGURA obtenga Fattache.

Fattache un producto revolucionario para adelgar facil y en poco tiempo.

"Testimonio voluntario"

Yo obtuve resultado muy rapido sin tener que dejar las comidas que mas me gustan.”

"Fattache ayuda a eliminar la grasa que entra en su cuerpo antes que esta sea digerida. No esta disenada para directamente reducir la grasa que ya esta en su cuerpo. Los resultados pueden variar en cada persona."

Especialista en nutricion estan de acuerdo en que Fattache es la mejor alternative para absorber las grasas de su cuerpo. Mezclando agua con aceite de oliva, le agregaremos dos capsulas de Fattache que buscara la grasa convirtiendola en una capa de fibra que el cuerpo automaticamente eliminara. Esa grasa, si permanece en nuestro cuerpo es la que produce todas las causas de sobrepeso y problemas graves de salud.

"Testimonio voluntario:"

Con Fattache baje lo que no pude bajar con otras dietas.

Frasco de Fattache con 180 capsulas por tan solo $39.95. Te regalo con su orden reciba un frasco adicional con 60 capsulas.

EXHIBIT A