9823177
B261038

UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION

In the Matter of

BODY SYSTEMS TECHNOLOGY, INC. a corporation, WILLIAM E. CHACE, individually and as an officer of the corporation, and JAMES D. DAVIS individually and as an officer of the corporation.

DOCKET NO. C-3895

COMPLAINT

The Federal Trade Commission, having reason to believe that Body Systems Technology, Inc., a corporation, William E. Chace and James D. Davis, individually and as officers 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:

PARAGRAPH 1: Respondent Body Systems Technology, Inc. ("Body Systems") is a Florida corporation with its principal office or place of business at 408 Live Oaks Blvd., Casselberry, Florida 32707.

Respondent William E. Chace is an officer of the corporate respondent. Individually or in concert with others, he formulates, directs or controls the policies, acts, or practices of the corporation, including the acts and practices alleged in this complaint. His business address is 408 Live Oaks Blvd., Casselberry, Florida 32707.

Respondent James D. Davis is an officer of the corporate respondent. Individually or in concert with others, he formulates, directs or controls the policies, acts, or practices of the corporation, including the acts and practices alleged in this complaint. His business address is 408 Live Oaks Blvd., Casselberry, Florida 32707.

PARAGRAPH 2: Respondents have advertised, offered for sale, sold, and distributed, among other products, Body Systems' shark cartilage capsules, a dietary supplement that purports to effectively treat or prevent cancer, and Body Systems' uña de gato (also known as "Cat's Claw" or "Uncaria Tomentosa"), a dietary supplement made from the derivative of a Peruvian vine that purports to be effective in the treatment of cancer, HIV and AIDS, and arthritis. Body Systems' shark cartilage and uña de gato products are "foods" and/or "drugs" within the meaning of Sections 12 and 15 of the Federal Trade Commission Act, 15 U.S.C. §§ 52 and 55.

PARAGRAPH 3: 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.

Body Systems' Shark Cartilage Capsules

PARAGRAPH 4: Respondents Body Systems, William E. Chace, and James D. Davis have disseminated or have caused to be disseminated advertisements for Body Systems' shark cartilage capsules, including, but not limited to, the attached Exhibits A and B. Advertisements for Body Systems' shark cartilage capsules have been disseminated through, among other media, numerous websites on the Internet. These advertisements contain the following statements:

Shark Cartilage is a natural nontoxic substance that has been shown to inhibit tumor growth, as evidenced by published laboratory studies conducted by eminent scientists over a thirty year period. And, if studies proving that shark cartilage is an effective cancer treatment and preventative were not sufficient cause for rejoicing . . .

PARAGRAPH 5: Through the means described in Paragraph 4, respondents Body Systems, William E. Chace, and James D. Davis have represented, expressly or by implication, that Body Systems' shark cartilage capsules:

A. Are effective in the treatment of cancer.

B. Are effective in the prevention of cancer.

PARAGRAPH 6: Through the means described in Paragraph 4, respondents Body Systems, William E. Chace, and James D. Davis have represented, expressly or by implication, that they possessed and relied upon a reasonable basis that substantiated the representations set forth in Paragraph 5 at the time the representations were made.

PARAGRAPH 7: In truth and in fact, respondents Body Systems, William E. Chace, and James D. Davis did not possess and rely upon a reasonable basis that substantiated the representations set forth in Paragraph 5 at the time the representations were made. Among other reasons, the purported support that respondents relied upon for the above claims--a book intended for lay readers that discusses the benefits of shark cartilage--did not adequately relate to their advertising claims. Although the book includes overviews of various studies in animals and humans that purportedly support respondents' cancer claims, respondents lacked appropriately controlled peer reviewed clinical studies or other credible scientific evidence indicating that the ingestion of shark cartilage in capsule form is an effective cancer treatment or effective cancer preventative. Therefore, the representation set forth in Paragraph 6 was, and is, false or misleading.

PARAGRAPH 8: Through the means described in Paragraph 4, respondents Body Systems, William E. Chace, and James D. Davis have represented, expressly or by implication, that published laboratory studies prove that Body Systems' shark cartilage capsules are effective in the treatment of cancer and in the prevention of cancer.

PARAGRAPH 9: In truth and in fact, published laboratory studies do not prove that Body Systems' shark cartilage capsules are effective in the treatment of cancer and in the prevention of cancer. Therefore, the representation set forth in Paragraph 8 was, and is, false or misleading.

Body Systems' Uña de Gato

PARAGRAPH 10: Respondents Body Systems, William E. Chace, and James D. Davis have disseminated or have caused to be disseminated advertisements for Body Systems' uña de gato products, including, but not limited to, the attached Exhibits C and D. Advertisements for Body Systems' uña de gato capsules and uña de gato liquid have been disseminated through, among other media, numerous websites on the Internet. These advertisements contain the following statements:

Beginning in the 1970's [sic] and continuing through today, research has been conducted on this remarkable plant in many countries throughout the world including: several research facilities in Peru; University of Inns- bruck, Austria; University of Munich, Germany; The Huntington Research Center, England; The Central Research Institute of Chemistry, Hungary; the Universities of Milan and Naples, Italy. As a result of this ongoing research, there is evidence to suggest that Uncaria tomentosa may be beneficial in the treatment of cancer, arthritis, . . . and those infected with HIV virus.

PARAGRAPH 11: Through the means described in Paragraph 10, respondents Body Systems, William E. Chace, and James D. Davis have represented, expressly or by implication, that Body Systems' uña de gato capsules and Body Systems' uña de gato liquid:

A. Are or are likely to be an effective treatment of cancer.

B. Are or are likely to be an effective treatment of HIV and AIDS.

C. Are or are likely to be an effective treatment of arthritis.

PARAGRAPH 12: Through the means described in Paragraph 10, respondents Body Systems, William E. Chace, and James D. Davis 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.

PARAGRAPH 13: In truth and in fact, respondents Body Systems, William E. Chace, and James D. Davis 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. Among other reasons, the purported support that respondents relied upon for the above claims--articles, a booklet, and newsletters that discuss generally the purported efficacy of uña de gato for a variety of human disease conditions and that, with one exception, were intended for lay readers--did not adequately relate to their advertising claims. Although respondents' submissions contain references to various studies and anecdotal stories that purportedly support respondents' claims, respondents lacked appropriately controlled peer reviewed clinical studies or other credible scientific evidence indicating that the ingestion of uña de gato in capsule or liquid form is effective in the treatment of cancer, HIV and AIDS, and arthritis. Therefore, the representation set forth in Paragraph 12 was, and is, false or misleading.

PARAGRAPH 14: Through the means described in Paragraph 10, respondents Body Systems, William E. Chace, and James D. Davis have represented, expressly or by implication, that research shows that Body Systems' uña de gato capsules and Body Systems' uña de gato liquid are or are likely to be an effective treatment of cancer, AIDS and HIV, and arthritis.

PARAGRAPH 15: In truth and in fact, research does not show that Body Systems' uña de gato capsules and Body Systems' uña de gato liquid are or are likely to be an effective treatment of cancer, AIDS and HIV, and arthritis. Therefore, the representation set forth in Paragraph 14 was, and is, false or misleading.

PARAGRAPH 16: 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 seventh day of September, 1999, has issued this complaint against respondents.

SEAL: