UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
MAGNETIC THERAPEUTIC TECHNOLOGIES, INC., a corporation, and JIM B.
RICHARDSON, individually and as an officer of the corporation.
DOCKET NO. C-3897
The Federal Trade Commission, having reason to believe that Magnetic Therapeutic
Technologies, Inc. and Jim B. Richardson, individually and as an officer of the
corporation, 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.a. Respondent Magnetic Therapeutic Technologies, Inc. ("MTT") is a Texas
corporation with its principal office or place of business at 1915 Peters Road, Suite 106,
Irving, Texas 75061.
1.b. Respondent Jim B. Richardson, is the majority shareholder, President, Treasurer,
and Secretary of the corporate respondent. He formulates, directs, and controls the acts
and practices of the corporate respondent, including the acts and practices alleged in
this complaint. His principal office or place of business is the same as that of the
2. Respondents have promoted, offered for sale, sold, and distributed to the public
magnetic therapy products. Therapeutic magnets are "devices" within the meaning
of Sections 12 and 15 of the Federal Trade Commission Act.
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
4. Respondents have disseminated or have caused to be disseminated advertisements or
promotional materials for magnetic therapy products, including but not necessarily limited
to the attached Exhibits A through G. These advertisements and promotional materials
contain the following statements:
A. APPLICATIONS OF BIOMAGNETISM
* * * In the treatment of chronic conditions such as some forms of
arthritis, degenerative joint conditions, diabetes ulcers and cancer, magnetic field
therapy has shown dramatic results in aiding the reduction or reversal of the condition.
* * *
Some researchers, such as Nordenstrom and Wollin, have reported using super-magnet and
electrical therapies to successfully treat lung and breast cancers.
* * *
[Exhibit A, MTT00030][Consumer Brochure]
B. SUMMARY OF BENEFICIAL INFLUENCE OF MAGNETS.
The beneficial influence of magnets may be summed up as follows:
* * *
2. Movement of haemoglobin [sic] in blood vessels is accelerated while calcium and
cholesterol deposits in blood are decreased. Even the other unwanted materials adhered to
the inner side of blood vessels, which provoke high blood pressure, are decreased and made
to vanish. The blood is cleansed and circulation is increased. The activity of the heart
eases and fatigue and pain disappear.
3. Functions of autonomic nerves are normalized so that the internal organs controlled
by them regain their proper function.
* * *
[Exhibit B, at MTT00026][Consumer Brochure]
C. WHY SHOULD YOU HAVE a MAGNETICo SLEEP PAD??
* * *
MAGNETICo SLEEP PAD OWNERS TELL BENEFITS...
. . . a variety of fringe benefits are reported by delighted customers, such as:
* * *
Increased - Circulation/Oxygenation
- Resistance to Disease
- Bone Density
* * * Lowered - Blood Pressure Other -
. . .
- Multiple Sclerosis
* * *
[Exhibit C, at MTT00051][Consumer Brochure]
* * * 7. How long will it be
before I can feel the benefits of the MagnetiCo Sleep Pad?
Because every person is different, it is impossible to
predict when you will feel a difference. Some lucky people feel benefits the first night,
others it may take 6 months. The most common time is 1-2 months. The important
thing to remember is that some benefits, such as increased immunity, increased oxygen
saturation and lowered blood pressure, may be taking place even though you can't feel
[Exhibit C, at MTT00053][Consumer Brochure]
* * *Sleep Pad Success Stories
(Excerpts from Testimonial Letters on File)
(2 months on Sleep Pad)
". . . For months I was walking the floor at night
with tearful, intense pain, resorting to Tylenol #3 every 3 hours. I have not taken
painkillers since ... and I sleep like a baby! . . . I do not hesitate to encourage anyone
to put this to the test!!!" Leola Christensen
Resident, Canada & California.
* * *
(6 months on Sleep Pad)
" . . . In 1980, I was diagnosed with MS . . . loss
of balance, poor coordination, constant muscle spasms, fatigue and limited mobility are
daily symptoms I have learned to live with. I have slept on the magnetic pad now for six
months . . . [W]hat I have found to be the most beneficial is that it seems to allow my
body to 'bounce back' at a more rapid rate than previous . . . It has also assisted in
less frequent muscle spasms . . . It is not a cure for me but is of great assistance to me
in allowing me to live a(n) . . . active lifestyle with additional energy. I consciously
have not changed any aspect of my daily living habits to give it a fair evaluation and now
can recommend it to others . . ."
Arni Skoretz - Alberta Social Services Professional
RED DEER, AB.
(12 months on Sleep Pad)
"In January '92, I tested HIV Positive. . . . After you telling the report of
improved T-cell count in mice placed in an increased magnetic field, I decided it was
definitely worthwhile for me to try one of your MagnetiCo Sleep Pads. I am pleased to
report that I have had no drop in T-Cell count since, although it did hold at the same
level for a few months, it is now up to 638, which is a substantial increase. . . ."
Name withheld, Age 37
Los Angeles, CA.
EXTREME DIABETIC COMPLICATIONS
SLEEP DISORDER (8 months on Sleep Pad)
"HEALTH SUMMARY: Val Laugton
a. Diabetic neuropathy (nerve death) - causing excruciating pain in extremities (1 -3
bouts daily, lasting from 45 minutes to two hours).
* * *
IMPROVEMENTS SINCE SLEEPING ON PAD:
a. The nerve spasms took 5-6 months to improve to a marked amount . . . now they are
reduced by 80%-90%, with no occurrences at all for 4 to 5 days at a time.
* * * Dave & Val Laugton,
* * * [Exhibit C, at
D. * * *HEART CONDITION
(6 weeks on Sleep Pad)
"I am 72 years old and have had five heart attacks .
. . tried all that modern medicine had to offer, but was left a virtual invalid, unable to
do the smallest task. In just six weeks on the MagnetiCo Sleep Pad, my color is greatly
improved, blood pressure down ten points, and energy levels up enough that I can even work
some. Best Purchase I have ever made!"
Joe Subich, Retired
[Exhibit D, MTT000153][Internet Ad]
E. MagnetiCo Survey Results (1993) . . .
95% of ARTHRITICS received at least 25% PAIN RELIEF
75% of ARTHRITICS received at least 50% PAIN RELIEF
* * * [Exhibit E, at
F. MAGNETIC THERAPY
Here's an economical alternative to pain killers and
costly traditional drug therapy. . . .
[Exhibit F, at MTT000164][Reader's Digest Catalog]
G. RELIEF FROM PAIN!
Do you suffer from PAIN, inflammation of the joints,
nerves or tendons? Do you lie awake at night rubbing the parts of your body that ache and
refuse to react to strong medicines.
* * *MANY EXPERIENCE RELIEF WITHIN
. . .. Magnetotherapy Products have hundreds of written
testimonials stating that the person experienced RELIEF from PAIN and DISCOMFORT within
just a few hours. Please remember, the MAGNETIC SUPPORTS are not a cure; neither are
aspirin or other pain relief products. M+ flexible magnets can be an
alternative to the high cost of doctor's visits and expensive prescriptions.
* * *LET'S HEAR FROM SOME SATISFIED
THE MAGNETIC SUPPORT PRODUCTS
* * *
"I have arthritis in my right hand and severe
swelling along with the nerve damage in my carpal tunnel. Due to intense pain, I had to
quit golf. After using the magnetized wrist supports, I was able to swing a golf club
again with confidence. My wife suffered from chronic back pain and back spasms. She was
surprised at the relief she had after such a short time. . . . "
Bum Phillips & Debbie former Head Coach Houston Oilers
and New Orleans Saints
* * *
THE GREATEST SURPRISE IS THE LOW COST
The average person suffering from pain has visited the
doctor numerous times, spending $35-$50 and more for each visit. This is not counting the
hundreds of dollars spent for prescription medicines. One lady writes she has been going
to the doctor for over ten years and he was treating her for arthritic pain ... the cost
was into hundreds of dollars. It still didn't satisfy the patient, as she still complained
of pain. Her problem was arthritis in the knees and ankles. When she found out that the
cost of a knee support was a one-time purchase price of $59.95 plus the state sales tax,
all she could do was say . . . "Give me one now, she exclaimed" [sic]. The
product was shipped UPS and she was wearing it three days later
* * * [Exhibit G, MTT000215-000216][Price
5. Through the means described in Paragraph 4, respondents
have represented, expressly or by implication, that respondents':
A. Magnetic therapy products are effective in treating
cancer, including lung and breast cancers, diabetic ulcers, some forms of arthritis, and
degenerative joint conditions.
B. Magnetic therapy products significantly lower high
C. Magnetic sleep pads stabilize or increase the T-cell
count of HIV patients.
D. Magnetic sleep pads significantly reduce muscle spasms
in persons with Multiple Sclerosis.
E. Magnetic sleep pads significantly reduce nerve spasms
associated with diabetic neuropathy.
F. Magnetic sleep pads significantly increase bone
density, immunity, and circulation.
G. Magnetic therapy products are as effective as
prescription pain medicine in alleviating severe pain caused by conditions such as
arthritis, carpal tunnel syndrome, and chronic back pain.
6. Through the means described in Paragraph 4, respondents
have represented, expressly or by implication, that testimonials from consumers appearing
in the advertisements or promotional materials for respondents' magnetic therapy products
reflect the typical or ordinary experience of members of the public who use the products.
7. Through the means described in Paragraph 4, respondents
have represented, expressly or by implication, that they possessed and relied upon a
reasonable basis that substantiated the representations set forth in Paragraphs 5 and 6,
at the time the representations were made.
8. In truth and in fact, respondents did not possess and
rely upon a reasonable basis that substantiated the representations set forth in
Paragraphs 5 and 6, at the time the representations were made. Therefore, the
representation set forth in Paragraph 7 was, and is, false or misleading.
9. 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.
By the Commission.
Donald S. Clark