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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
COMMISSION COMPLAINT FEDERAL TRADE COMMISSION TRADE COMMISSION ACT SALE CHOLESTEROL REDUCTION PRODUCT VIOLATION PRACTICES THEREAFTER AGREEMENT REPRESENTATION DISTRIBUTION INTERACTIVE MEDICAL TECHNOLOGIES JURISDICTIONAL FACTS PURPOSES PROMOTION PERFORMANCE BOND ADVERTISING WEIGHT LOSS BUSINESS OFFERING FAT REDUCTION RELIABLE SCIENTIFIC EVIDENCE LABELING CONSUMER RESPONDENT WILLIAM SEATTLE REGIONAL OFFICE EFFICACY SAFETY CLAIM |
9423237
B221212
UNITED STATES OF AMERICA
BEFORE FEDERAL TRADE COMMISSION
COMMISSIONERS: Robert Pitofsky, Chairman
Mary L. Azcuenaga
Janet D. Steiger
Roscoe B. Starek, III
Christine A. Varney
__________________________________________)
In the Matter of )
) DOCKET NO. C-3749
INTERACTIVE MEDICAL TECHNOLOGIES, )
LTD., and EFFECTIVE HEALTH, INC., ) DECISION AND ORDER
corporations, )
)
WILLIAM PELZER, JR., individually and )
as a former officer of Interactive )
Medical Technologies, Ltd., and )
Effective Health, Inc., and ))
WILLIAM E. SHELL, M.D., individually and )
as a former officer of Interactive Medical )
Technologies, Ltd. )
__________________________________________)
The Federal Trade Commission having initiated an investigation of certain acts and practices
of the respondents named in the caption hereof, and respondent William E. Shell, M.D., having
been furnished thereafter with a copy of a draft of complaint which the Seattle Regional Office
proposed to present to the Commission for its consideration and which, if issued by the
Commission, would charge respondents with violation of the Federal Trade Commission Act; and
The respondent, his attorney, and counsel for the Commission having thereafter executed an
agreement containing a consent order, an admission by the respondent of all the jurisdictional facts
set forth in the aforesaid draft of complaint, a statement that the signing of said agreement is for
settlement purposes only and does not constitute an admission by the respondent that the law has
been violated as alleged in such complaint, or that the facts as alleged in such complaint, other
jurisdictional facts, are true, and waivers and other provisions as required by the Commission's
Rules; and
1
The Commission having thereafter considered the matter and having determined that it had
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2
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CONSENT AGREEMENT
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EXTRACTED KEY WORDS
REPRESENTATIONS FEDERAL TRADE COMMISSION RESPONDENTS IMT COMPLAINT EHI FAT ACT CONSENT ORDER SEQUESTER CONSUMED FOOD EFFECTIVE HEALTH AGREEMENT CHOLESTEROL REDUCTION PRODUCT WEIGHT LOSS LIPITROL PRACTICES FAT REDUCTION PRINCIPAL OFFICE KCD RESPONDENTS SIGNIFICANT WEIGHT LOSS INTERACTIVE MEDICAL TECHNOLOGIES CALIFORNIA RELIABLE SCIENTIFIC EVIDENCE CONSUMERS SUBSTANTIATES DRAFT COMPLAINT ABSORPTION ADVERTISEMENTS SCIENTIFIC RESEARCH |
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
__________________________________________ )
In the Matter of )
) FILE NO. 942 3237
INTERACTIVE MEDICAL TECHNOLOGIES, )
LTD., and EFFECTIVE HEALTH, INC., )
corporations, and )
) AGREEMENT CONTAINING
WILLIAM PELZER, JR., individually and ) CONSENT ORDER AS TO
as a former officer of Interactive ) INTERACTIVE MEDICAL
Medical Technologies, Ltd., and ) TECHNOLOGIES, LTD., AND
Effective Health, Inc., and ) EFFECTIVE HEALTH, INC.
)
WILLIAM E. SHELL, M.D., individually and )
as a former officer of Interactive Medical )
Technologies, Ltd. )
__________________________________________)
The Federal Trade Commission ("Commission") has conducted an investigation of certain acts
and practices of Interactive Medical Technologies, Ltd. ("IMT"), and Effective Health, Inc. ("EHI"),
corporations ("proposed respondents"). Proposed respondents, having been represented by counsel,
willing to enter into an agreement containing a consent order resolving the allegations contained
attached draft complaint. Therefore,
IT IS HEREBY AGREED by and between IMT and EHI, by their duly authorized officers,
and counsel for the Commission that:
1.a. Proposed respondent IMT is a Delaware corporation with its principal office or place of
business at 2139 Pontius Avenue, Los Angeles, California 90025.
1.b. Proposed respondent EHI is a California corporation with its principal office or place of
at 2139 Pontius Avenue, Los Angeles, California 90025. EHI is a wholly owned subsidiary of IMT.
2. Proposed respondents admit all the jurisdictional facts set forth in the draft complaint.
3. Proposed respondents waive:
a. Any further procedural steps;
IMT/EHI Consent Order, August 6, 1996 1
b. The requirement that the Commission's decision contain a statement of findings of
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3
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COMPLAINT
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EXTRACTED KEY WORDS
FAT IMT TRADE COMMISSION ACT SEQUESTER EHI LIPITROL SHELL FEDERAL TRADE COMMISSION EFFECTIVE HEALTH CONSUMED FOOD REPRESENTATIONS SET PARAGRAPH WEIGHT LOSS INTERACTIVE MEDICAL TECHNOLOGIES PRINCIPAL OFFICE FORMER OFFICER WILLIAM PELZER CALIFORNIA ADVERTISEMENTS KCD SCIENTIFIC RESEARCH FAT REDUCTION LOWERS BLOOD CHOLESTEROL ABSORPTION SUBSTANTIATES LOS ANGELES REASONABLE BASIS EXERCISE ALONE IMPLICATION |
UNITED STATES OF AMERICA 9423237
FEDERAL TRADE COMMISSION B221212
________________________________________________)
In the Matter of )
)
INTERACTIVE MEDICAL TECHNOLOGIES, LTD., )
and EFFECTIVE HEALTH, INC., )
corporations, and ) DOCKET NO. C-3749
)
WILLIAM PELZER, JR., individually and )
as a former officer of Interactive Medical )
Technologies, Ltd., and Effective )
Health, Inc., and ))
WILLIAM E. SHELL, M.D., individually and )
as a former officer of Interactive Medical Technologies, )
Ltd. )
________________________________________________)
COMPLAINT
The Federal Trade Commission ("Commission"), having reason to believe that
Interactive Medical Technologies, Ltd., and Effective Health, Inc., corporations, and William
Pelzer, Jr., individually and as a former officer of Interactive Medical Technologies, Ltd., and
Effective Health, Inc., and William E. Shell, M.D., individually and as a former officer of
Interactive Medical Technologies, Ltd. ("respondents"), have violated provisions of the
Federal Trade Commission Act, and it appearing to the Commission that this proceeding is in
the public interest, alleges:
1. Respondent Interactive Medical Technologies, Ltd. ("IMT"), is a Delaware corporation
with its principal office or place of business at 2139 Pontius Avenue, Los Angeles, California
90025.
2. Respondent Effective Health, Inc. ("EHI"), is a California corporation with its
principal office or place of business at 2139 Pontius Avenue, Los Angeles, California 90025.
EHI is a wholly owned subsidiary of IMT.
1
3. Respondent William Pelzer, Jr. ("Pelzer"), was chief executive officer and president of
IMT and EHI from February 1993 to April 1995. Individually or in concert with others, he
formulated, directed, controlled or participated in the acts and practices of IMT and EHI,
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