WESTERN DIRECT MARKETING GROUP, INC. and WESTERN INTERNATIONAL MEDIA
CORPORATION,corporations
DOCKET NO. C-3821
The Federal Trade Commission, having reason to believe that Western Direct Marketing
Group, Inc. and Western International Media Corporation, corporations
(“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. At relevant times herein, respondent Western Direct Marketing Group, Inc. was known
as Television Marketing Group, Inc., a California corporation with its principal office or
place of business at 8544 Sunset Boulevard, Los Angeles, California 90069.
2. Respondent Western International Media Corporation is a California corporation with
its principal office or place of business at 8544 Sunset Boulevard, Los Angeles,
California 90069.
3. Respondents, at all times relevant to this complaint, were advertising agencies of
Bogdana Corporation, and prepared and disseminated advertisements to promote the sale of
Cholestaway wafers and capsules. Cholestaway is a product subject to the provisions of
Sections 12 and 15 of the Federal Trade Commission Act.
4. 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.
5. Respondents have disseminated or have caused to be disseminated television
advertisements for Cholestaway, including but not necessarily limited to the attached
Exhibit A. This advertisement contains the following statements:
Consumer One: "My cholesterol level was 230 and now it's 179. That's great."
Consumer Two:"My cholesterol at this point is down more than a hundred
points."
Consumer Three: "My cholesterol was 220. After three months, my cholesterol went
down to 190."
Host One: "Just what is it that lowered these people's cholesterol levels so
dramatically? This is it. (He puts two Cholestaway tablets in his hand) A new, completely
safe scientifically proven method that is as simple as chewing two flavorful wafers with
every meal. It is called Cholestaway. (Graphic: ?Guarantees to Lower Your Blood
Cholesterol Level') It is not a prescription drug, not a chemical, but a simple all
natural dietary supplement that guarantees to lower your blood cholesterol level or your
money back. That is right. It guarantees to lower your cholesterol." (Exhibit A,
Cholestaway Television Infomercial 2, p. 1).....
Host One: "This is a cross-section of an artery. When there is too much
cholesterol present in the bloodstream, it begins building up fatty deposits on the artery
wall narrowing the opening, sort of like rust builds up on an old water pipe. When this
opening becomes clogged, the blood flow to the heart is interrupted, causing a heart
attack." (Exhibit A, p. 3).....
Host One: "With all natural Cholestaway, you get proven results without drugs, and
without side effects. Studies were done at several prestigious research institutes on the
effects of adding dietary calcium and magnesium, the ingredients found in Cholestaway, to
the diet. Although not every study was created to determine the effect on blood serum
cholesterol, it was noted that cholesterol levels were reduced, and in one study, by as
much as 25%. One study even measured a weight loss, while another reported no loss at all.
(Graphic: "PROVEN TO LOWER BLOOD CHOLESTEROL BY SCIENTIFIC RESEARCH
STUDIES.")
It was concluded, however, that, taken in sufficient dosages, these dietary supplements
will lower cholesterol levels. The results by users, while anecdotal, is [sic] proof
positive." (Exhibit A, p. 4).....
(A bottle of Cholestaway is shown on a table next to the Physician's Desk Reference.
Host Two picks up the bottle and holds it.)
Host Two: "And that is the beauty of Cholestaway. It lets you eat like you
normally would. Of course, when I say normal, I don't mean pizza every night, or ice cream
and cake with every meal. What you normally eat." (Exhibit A, pp. 4, 5).....
Host Three: “Studies have proven Cholestaway’s effectiveness in lowering
cholesterol. Just two flavorful wafers with every meal can lower your cholesterol count
almost immediately. It is that simple. And it is completely safe.” (Exhibit A, p.
6).....
Consumer 4:“I went for an annual check-up and had a blood test done, and found
that my cholesterol was at 274. And they suggested that I start medication, if I
don’t do something about changing it. And I refused that. So in hearing about
Cholestaway, I started taking it, and found that I dropped down to 208, which I think is
fantastic.”
(Graphic: “The Results of Using Cholestaway may vary from individual to
individual.”) (Exhibit A, pp. 6,7).....
Host 1:"Now, I would like to introduce you to the man who discovered Cholestaway,
Dr. DeLamar Gibbons, former Director of Clinical Research for the Saturday Evening Post,
and author of several books on cholesterol and diets."....
Gibbons: "This is what I did. I ate a pound, I weighed it out, I had little
scales, and I weighed out a pound of Kentucky Fried Chicken. I didn't peel the skin off or
anything -- as fat as I could. And I took the same amount of Cholestaway that this inmate
was taking. And for 60 days in a row, I ate a pound of Kentucky Fried Chicken.”
Host Two: "You ate a pound of Kentucky Fried Chicken for sixty days?"
Gibbons: "Every day."
Host Two: "Every day?"
Gibbons: "Every day. And at the end of the sixty days, I checked, and my
cholesterol had dropped remarkably. And my blood fat had gone down. And to my surprise, I
had lost 25 pounds." (Exhibit A, p. 8).....
Consumer 5: "I’ve been on Cholestaway for about two months now. And in the
process of getting my cholesterol tested, my cholesterol has come down. At this point, my
cholesterol is down over a hundred points. The pluses to this have been that I can eat
almost whatever I want, within reason, eggs, corned beef sandwich for lunch occasionally,
and I’m still showing improvement, plus I’ve lost weight."
(Graphic: "The results of using Cholestaway will vary from individual to
individual.")
(Graphic: "If you maintain your present level of food consumption while taking
Cholestaway, our experience and knowledge of body chemistry indicates that there is a
possibility that weight loss will occur.") (Exhibit A, p. 10).....
Dr. Dalton: "Dr. Gibbons and I were working together in the state correctional
system in Virginia. And I was under the care of some physicians who were taking care of my
health. I had a diabetic condition, which seemed to get out of hand. And my triglycerides
as well as my cholesterol went so high, that it was very threatening. As a matter of fact,
the triglycerides should only be around 200 as the cholesterol should. And my
triglycerides were over 1600, and the cholesterol was over 500.....
Dr. Dalton:So we started on Cholestaway. And within several weeks, my chemistry
concerning the triglycerides and cholesterol had dropped to near normal. By one month,
they were both within normal range. And it was one of the best things that had ever
happened to me."
(Graphic: "The results of using Cholestaway will vary from individual to
individual.") (Exhibit A, p. 13).....
Consumer Three: "Yes, I had a side effect, an unusual side effect and a happy one.
I lost 30 pounds."
Host Two: "You lost 30 pounds."
Dr. Dalton: "That’s interesting Barbara, because I had the same experience. I
lost 50 pounds over the past five years."
(Graphic: "If you maintain your present level of food consumption while taking
Cholestaway, our experience and knowledge of body chemistry indicates that there is a
possibility that weight loss will occur.")
Host Two: "Fifty pounds?"
Consumer Three: "That's wonderful."
Dr. Dalton: "Exactly."
Host Two: "Just what in Cholestaway causes one to lose the weight?"
Dr. Dalton: "Again, as Dr. Gibbons explains, it's the calcium combining with the
fat in food and it simply never goes into the system. It's a very simple, but very
effective mechanism." (Exhibit A, pp. 14, 15).....
Gibbons: "Cholestaway is perfectly safe for high blood pressure. In fact, there
have been studies in the last year or two employing the ingredients of Cholestaway to
treat high blood pressure. Some people with high blood pressure are found to be low on
their calcium. And Cholestaway is an excellent source of calcium. And it would probably be
very favorable to people with high blood pressure." (Exhibit A, p. 18).....
Gibbons: "They put cholesterol in a machine that’s like a cream separator.
And it’s the high density that stays in the milk part, and the low density that comes
out of the cream part. The low density is thought to be the bad one and the high density
is felt to be the good one. The ratio of one to the other is currently regarded as
important. The Cholestaway seems to be getting rid of primarily the low density
cholesterol and improving the ratio." ....
Host Two: "Yes, there is one major side effect while on Cholestaway. You will
probably lose weight." (Exhibit A, p. 19).
6. Through the use of the trade name "Cholestaway," and through the means
described in Paragraph 5, respondents have represented, expressly or by implication, that:
A. Cholestaway significantly lowers serum cholesterol levels.
B. Cholestaway significantly lowers serum cholesterol levels without changes in diet.
C. Cholestaway significantly lowers serum cholesterol levels and causes significant
weight loss even if users eat foods high in fat, including fried chicken and pizza.
D. Cholestaway substantially reduces or eliminates the body’s absorption of
dietary fat.
E. Cholestaway lowers low density lipoprotein cholesterol and improves the high density
lipoprotein cholesterol to low density lipoprotein cholesterol ratio.
F. Cholestaway is effective in the treatment of hardening of the arteries and heart
disease.
G. Cholestaway causes significant weight loss.
H. Cholestaway causes significant weight loss without changes in diet.
I. Cholestaway significantly reduces blood triglyceride levels.
J. Cholestaway significantly reduces elevated blood pressure.
K. Testimonials from consumers appearing in the advertisements for Cholestaway reflect
the typical or ordinary experience of members of the public who use the product.
7. Through the use of the trade name "Cholestaway," and through the means
described in Paragraph 5, respondents have represented, expressly or by implication, that
they possessed and relied upon a reasonable basis that substantiated the representations
set forth in Paragraph 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 Paragraph 6, at the time the
representations were made. Therefore, the representation set forth in Paragraph 7 was, and
is, false or misleading.
9. Through the means described in Paragraph 5, respondents have represented, expressly
or by implication, that:
A. Scientific studies prove that Cholestaway significantly lowers serum cholesterol
levels.
B. Scientific studies prove that Cholestaway significantly reduces elevated blood
pressure.
10. In truth and in fact:
A. Scientific studies do not prove that Cholestaway significantly lowers serum
cholesterol levels.
B. Scientific studies do not prove that Cholestaway significantly reduces elevated
blood pressure.
Therefore, the representations set forth in Paragraph 9 were, and are, false or
misleading.
11. Respondents knew or should have known that the representations set forth in
Paragraphs 7 and 9 were, and are, false or misleading.
12. 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 twenty-eighth day of July, 1998, has
issued this complaint against respondents.
By the Commission.
Donald S. Clark
Secretary