9423278
B236201

UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION

In the Matter of

ROGER J. CALLAHAN, individually.

DOCKET NO. C-3797

COMPLAINT

The Federal Trade Commission, having reason to believe that Roger J. Callahan, individually ("respondent"), has 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 Roger J. Callahan has manufactured, advertised, offered for sale, sold, and distributed products to the public, including Dr. Callahan’s Addiction Breaking System. Individually or in concert with others, he participated in the acts or practices alleged in this complaint. His principal office or place of business is 45350 Vista Santa Rosa, Indian Wells, California 92210.

2. Respondent entered into an agreement with Mega Systems, Inc., a corporation which creates and distributes program-length radio and television commercials which run for 30 minutes or less and fit within normal radio and television broadcasting time slots. The television commercials were and are broadcast on network, independent and cable television stations throughout the United States. The radio commercials were and are broadcast on network and independent radio stations throughout the United States. In at least one of Mega Systems, Inc.’s program-length television commercials, respondent acted as the guest and promoted Dr. Callahan’s Addiction Breaking System.

3. The acts and practices of respondent alleged in this complaint have been in or affecting commerce, as "commerce" is defined in Section 4 of the Federal Trade Commission Act.

4. Respondent has created and disseminated advertisements for Dr. Callahan’s Addiction Breaking System, including but not necessarily limited to the attached Exhibit A. This advertisement contains the following statements:

A. Trudeau: "He [Dr. Callahan] has been a best-selling author whose revolutionary treatment for losing weight and quitting smoking takes less than three minutes with 95 percent success. If you smoke and want to quit, or if you want to lose weight once and for all, today’s show could be an answer to your prayers.”

*****

"[T]he treatments that you discovered, that you invented get rid of addictions like food addictions so people can lose weight easily without trying to diet. They can just lose the weight because they reduce the urge to overeat. You can reduce smoking, alcoholism, any type of compulsion, depression, jealousy.”

*****

Callahan: “It’s revolutionary because it works with a high success rate that’s never before been possible.”

*****

Trudeau: “[I]f you have any addiction, whether it be for food, if you’re overweight, if you have a smoking addiction, if your children are addicted to drugs -- any compulsion, anything whatsoever, we recommend you call the 800 number...”

*****

Callahan: “What we mean is that their addictive urge, that uncontrollable urge is gone, completely gone, and they feel fine.”

*****

“And when we eliminate the anxiety, they don’t need the heroin; they don’t need the alcohol. The withdrawal is gone.” (Television Infomercial Script.)

5. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that for all or virtually all users:

A. Dr. Callahan’s Addiction Breaking System reduces an individual’s compulsive desire to eat, leading to significant weight loss.

B. Dr. Callahan’s Addiction Breaking System reduces an individual’s compulsive desire to eat, leading to significant weight loss without the need to diet or exercise.

C. Dr. Callahan’s Addiction Breaking System cures addictions and compulsions, including but not limited to, smoking, eating, and using alcohol or heroin.

6. In truth and in fact:

A. Dr. Callahan’s Addiction Breaking System does not reduce an individual’s compulsive desire to eat, and as such, Dr. Callahan’s Addiction Breaking System does not lead to significant weight loss.

B. Dr. Callahan’s Addiction Breaking System does not reduce an individual’s compulsive desire to eat, and as such, Dr. Callahan’s Addiction Breaking System does not lead to significant weight loss without the need to diet or exercise.

C. Dr. Callahan’s Addiction Breaking System does not cure addictions and compulsions, including but not limited to, smoking, eating, and using alcohol or heroin. Indeed, Dr. Callahan’s Addiction Breaking System simply consists of a video tape in which Dr. Callahan demonstrates a series of tapping one’s face, chest, and hand, rolling one’s eyes, and humming.

Therefore, the representations set forth in Paragraph 5 were, and are, false or misleading.

7. Through the means described in Paragraph 4, respondent has represented, expressly or by implication, that he possessed and relied upon a reasonable basis that substantiated the representations set forth in Paragraph 5, at the time the representations were made.

8. In truth and in fact, respondent 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 7 was, and is, false or misleading.

9. The acts and practices of respondent 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 sixth day of April, 1998, has issued this complaint against respondent.

By the Commission, Commissioner Thompson and Commissioner Swindle not participating.

Donald S. Clark
Secretary

SEAL