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9823175 UNITED STATES OF AMERICA In the Matter of DOCKET NO. C-3898 The Federal Trade Commission, having reason to believe that Pain Stops Here! Inc. and Sande R. Caplin, 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 Pain Stops Here!, Inc. ("PSH") is a New York corporation with its principal office or place of business at 100 Fox Hill Drive, Baiting Hollow, NY 11933. 1.b. Respondent Sande R. Caplin, is the President and majority shareholder 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 corporate respondent. 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 Commission Act. 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 D. These advertisements and promotional materials contain the following statements: A. Magnetized Water Magnet Therapy is being more researched each day. Soon it will be a therapy of choice [.] Dr. Kenneth McLean, M.D., after spending many years helping people with magnet therapy, especially his cancer patients, confessed: "I can't say anything officially but let us face it; this treatment is a Godsend. It's good for almost anything." Magnets and Magnetized Water are the two hands of magnet therapy; they compliment each other. * * * NORTH POLE MAGNETIZED WATER This water is recommended in cases of infectious diseases, urinary infection and gastric ulcers. Also for dysentery and diarrhea as it slows down peristaltic movements. Dr. N. Bengali recommends it in cancerous conditions. North pole magnetized water has a healing effect on skin ulcers such as bed sores. Bed sores washed daily with the water heal faster. When applied once daily over two weeks, the condition has been found not to reoccur. SOUTH POLE MAGNETIZED WATER * * * South pole water encourages growth activity in plants. Plants have been found to grow 20 to 40 percent faster when irrigated with this water. The water should be applied at the roots. Enthusiastic farmers have reported giant-size produce. * * * BI-POLAR (NORTH AND SOUTH) MAGNETIZED WATER * * * This simple treatment was very effective in breaking up kidney and gallbladder stones into small enough particles to be passed through urine without any pain or danger to the patient. [T]he water also prevented further formation of stones [in] the kidneys and gallbladder. * * * Similarly to the way magnetized water dissolves the settled salts on the walls of boilers and radiators, so it has been reported to help unclog the arteries and veins of deposits of cholesterol and salts and normalize the circulatory system. * * * [Exhibit A, PHS000032-33][Consumer Brochure] B. EXPERT OPINIONS * * * Dr. Philpott states that negative magnetic energy is capable of filling indented skin where a tumor has been. He also reports that no scar tissue will form where a cancerous tumor is neutralized by North pole magnetic energy. The same magnetic energy field eliminates scar tissue formation when a cut heals. * * * Dr. Philpott postulates that when a negative magnetic field is applied to a diseased internal organ, such as the liver, a three month application of negative energy may be required to cure the disease. An additional three month application may be required to repair the organ. His advice is to ensure that the magnet being used is larger than the lesion being treated and that sustained treatment with negative energy from a permanent magnet be applied. * * * In Dr. Nakagawa's classic study, Magnetic Deficiency Syndrome, he outlined that lack of magnetism may cause stress, mental disorders, headaches, arthritis, muscle pain, osteoporosis, chronic fatigue, allergies, insomnia, inflammation, circulatory problems, bowel disorders and other degenerative problems afflicting people today. Universal cure-all? In the search for a universal cure-all, none fit [sic] the description nearly as well as magnetic energy therapy. * * * Because it potentates the body's free radical scavenger and antioxidant system, magnetotherapy is reported to be valuable in counteracting degenerative processes causing heart and circulatory disease, arthritis and auto-immune illness, as well as neuro-degenerative and allergic afflictions. Drinking magnetic water is said to impart many similar benefits. * * * Nighttime magnetic field therapy has a calming and sleep inducing effect on the brain and body due to stimulating production of melatonin, an anti-stressful, anti-aging and anti-infections hormone. * * * [Exhibit B, PSH000035-38][Consumer Brochure] C. The Pain Stops Here If You Suffer From... Knee Pain * * * Biomagnetic Therapy has proven to be one [of] the most Economical and Effective means in the Treatment of the many Aches and Pains of the competitive Horse. The "MAGNETIC FORCE" Products has [sic] been designed to fit most animals for the Treatment of ARTHRITIS, BURSITIS, TENDONITIS [sic], SPRAINS, STRAINS, SCIATICA, LAMENESS, NAVICULAR and Foot Growth Problems. * * * With over 25 years of diligent research and testing, magnets have been used on both humans and animals, and thousands have had remarkable results as to the effectiveness in alleviating pain and initiating the healing process. * * * A Brief Explanation of How Magnetic Therapy Works: Magnetic therapy products enable you to safely and economically treat the human and animal bodies' many aches and painful conditions without the use of injections, salves and drugs. Clinical tests have proven that when magnets are applied to the painful areas of the body a favorable reaction takes place. Neodymium rare earth magnets deeply penetrate the flesh and create a magnetic field that energizes and oxygenates the blood, especially the white corpuscles which are the body's natural healing agent. The charged ion particles in the blood are moved about, creating heat. This constant heat helps increase blood flow, which helps to ease body pain and enables the body to perform its natural healing process. Magnetic therapy is safe, non invasive, non addictive and the Neodymium rare earth magnets are permanent and can be used over and over. Do Magnets Really Work?: Throughout Eastern cultures, magnetism has been used for centuries, as many have been aware of the beneficial effects of magnets on the body. Magnetic therapy has now finally come to America. The cost of staying healthy and pain free has become so expensive that the American public clamored for an alternative therapy that would release them from the addiction of PAIN KILLER PILLS, needles, salves and restore their body's health. * * * If you suffer from back pain (from injury, chronic pain, etc.), our Magnetic Force therapeutic Back Band is a must. * * * Great for easing chronic back pain * * * If you suffer from back pain (from injury, chronic pain, etc.), our Magnetic Force therapeutic Seat Pad is a must. * * * Great for easing chronic back pain . . . Increases blood flow and oxygen flow to the back area * * * [Exhibit C, at PSH000051, PSH000052, PSH000057, PSH000062 & PSH000081][Internet Ad] D."MAGNETIC SLEEP PAD" * * * The high energy magnets within the Sleep Pads oxygenate the blood cells, stimulate production of the hormone Melatonin which is a natural relaxant and sleep aid. * * * [Exhibit D, PSH000010] [Consumer Brochure] 5. Through the means described in Paragraph 4, respondents have represented, expressly or by implication, that:
6. 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 Paragraph 5, at the time the representations were made. 7. In truth and in fact, respondents 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. Therefore, the representation set forth in Paragraph 6 was, and is, false or misleading. 8. Through the means described in Paragraph 4, respondents have represented, expressly or by implication, that studies prove that Respondents' magnetic products are effective in the mitigation and treatment of pain caused by conditions such as arthritis, bursitis, and sciatica. 9. In truth and in fact, studies do not prove that Respondents' magnetic products are effective in the mitigation and treatment of pain caused by conditions such as arthritis, bursitis, and sciatica. 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 seventh day of September, 1999, has issued this complaint against respondents. By the Commission. |