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1
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DECISION & ORDER
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EXTRACTED KEY WORDS
MAGNET COMMISSION DISTRIBUTORS REPRESENTATION FEDERAL TRADE COMMISSION COMPLAINT CONSUMER ADVERTISING MAGNETIC THERAPY PROMOTION MAGNETIC THERAPEUTIC TECHNOLOGIES RESPONDENT JIM RICHARDSON MATERIALS DISCLOSURE DISSEMINATE BUSINESS SALE SETTLEMENT ACTS VIOLATION DIRECTS SUCCESSORS TERMINATE OFFICER RELIABLE SCIENTIFIC EVIDENCE CERTIFIED MAIL REQUEST AFFECTING COMMERCE |
9823150
B261052
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
COMMISSIONERS:
Robert Pitofsky, Chairman
Sheila F. Anthony
Mozelle W. Thompson
Orson Swindle
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
DECISION AND ORDER
The Federal Trade Commission having initiated an investigation of
certain acts and practices of the respondents named in the caption
hereof, and the respondents having been furnished thereafter with a
copy of a draft of complaint which the Bureau of Consumer Protection
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 respondents and counsel for the Commission having thereafter
executed an agreement containing a consent order, an admission by the
respondents 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
respondents that the law has been violated as alleged in such
complaint, or that the facts as alleged in such complaint, other than
jurisdictional facts, are true, and waivers and other provisions as
required by the Commission's Rules; and
The Commission having thereafter considered the matter and having
determined that it had reason to believe that the respondents have
violated the said Act, and that a complaint should issue stating its
charges in that respect, and having thereupon accepted the executed
consent agreement and placed such agreement on the public record for a
period of sixty (60) days, now in further conformity with the
procedure prescribed in § 2.34 of its Rules, the Commission hereby
issues its complaint, makes the following jurisdictional findings and
enters the following order:
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2
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COMPLAINT
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EXTRACTED KEY WORDS
RESPONDENTS PAIN SLEEP PAD MAGNETIC THERAPY EXHIBIT FEDERAL TRADE COMMISSION ACTS BLOOD ARTHRITIS REPRESENTATIONS BROCHURE RELIEF PRACTICES COMPLAINT DIABETES BLOOD PRESSURE NERVE SPASMS PARAGRAPH OFFICER ALLEGES ADVERTISEMENTS PROMOTIONAL MATERIALS CANCER REPORT MEDICINE COST DEGENERATIVE JOINT CONDITIONS HIGH BLOOD PRESSURE |
9823150
B261052
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
COMPLAINT
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 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 G. These advertisements and promotional materials contain the
following statements:
A. APPLICATIONS OF BIOMAGNETISM
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3
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ANALYSIS
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EXTRACTED KEY WORDS
PARAGRAPH DISTRIBUTORS REPRESENTATION MAGNETS MATERIALS ADVERTISEMENTS DISSEMINATION CONSUMERS CANCER DIABETIC NEUROPATHY PROMOTIONAL MATERIALS SUBSTANTIATES PROPOSED CONSENT COMMISSION AGREEMENT MAGNETIC THERAPY VIOLATE SPASMS PAIN BUSINESS MARKETING MATERIALS APPROVE HEALTH HIGH BLOOD PRESSURE HIV PATIENTS MULTIPLE SCLEROSIS COMPLAINT FTC ARTHRITIS |
_________________________________________________________________
ANALYSIS OF PROPOSED CONSENT
ORDER TO AID PUBLIC COMMENT
_________________________________________________________________
The Federal Trade Commission has accepted, subject to final approval,
an agreement to a proposed Consent Order ("proposed order") from
Magnetic Therapeutic Technologies, Inc. ("MTT") and Jim B. Richardson,
the President of the corporation.
The proposed consent order has been placed on the public record for
sixty (60) days for the reception of comments by interested persons.
Comments received during this period will become part of the public
record. After sixty (60) days, the Commission will again review the
agreement and will decide whether it should withdraw from the
agreement or make final the agreement's proposed order.
This matter concerns Internet, print, and catalogue advertisements
disseminated directly to consumers, and print advertisements provided
to distributors and retail stores, including health food stores and
pharmacies, for dissemination directly to consumers, for proposed
respondents' magnetic therapy products. These products contain magnets
that purportedly treat and alleviate a variety of medical problems,
including cancer, high blood pressure, HIV, diabetic neuropathy, and
Multiple Sclerosis. Proposed respondents' magnetic products include an
assortment of devices, such as Magnetic Knee Supports and Magnetic
Sleep Pads.
The Commission's complaint charges that the proposed respondents
engaged in deceptive advertising in violation of Sections 5 and 12 of
the FTC Act by making unsubstantiated claims that its magnetic therapy
products: (1) are effective in treating cancer, including lung and
breast cancers, diabetic ulcers, arthritis, and degenerative joint
conditions; (2) lower high blood pressure; (3) stabilize or increase
the T-cell count of HIV patients; (4) reduce muscle spasms in persons
with Multiple Sclerosis; (5) reduce nerve spasms associated with
diabetic neuropathy; (6) increase bone density, immunity, and
circulation; and (7) are as effective as prescription pain medicine in
alleviating severe pain caused by conditions such as arthritis, carpal
tunnel syndrome, and back pain.
The complaint further alleges that proposed respondents represented
that testimonials from consumers appearing in the advertisements or
promotional materials for proposed respondents' products reflect the
typical or ordinary experience of members of the public who use the
products. The proposed complaint alleges that respondents lack
substantiation for this claim.
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4
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AGREEMENT CONTAINING CONSENT
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EXTRACTED KEY WORDS
MAGNETIC THERAPEUTIC TECHNOLOGIES FEDERAL TRADE COMMISSION COMPLAINT PROPOSED RESPONDENTS JIM RICHARDSON AGREEMENT BUSINESS OFFICER DRAFT COMPLAINT DISTRIBUTORS REPRESENTATION UNITED STATES CONSENT ORDER ACTS PRACTICES TEXAS PROMOTIONAL MATERIALS DULY AUTHORIZED OFFICER PRINCIPAL OFFICE DISCLOSURE DISSEMINATE ADVERTISING FTC ADVERTISEMENT SUCCESSORS TERMINATE RELIABLE SCIENTIFIC EVIDENCE CERTIFIED MAIL |
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.
FILE NO. 982 3150
AGREEMENT CONTAINING CONSENT ORDER
The Federal Trade Commission has conducted an investigation of certain
acts and practices of proposed respondents, Magnetic Therapeutic
Technologies, Inc. and Jim B. Richardson, individually and as an
officer of the corporation. Proposed respondents are willing to enter
into an agreement containing a consent order resolving the allegations
contained in the attached draft complaint. Therefore,
IT IS HEREBY AGREED by and between Magnetic Therapeutic Technologies,
Inc. by its duly authorized officer, and Jim B. Richardson,
individually and as an officer of the corporation, and counsel for the
Federal Trade Commission that:
1.a. Proposed 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. Proposed respondent Jim B. Richardson is the majority
shareholder, President, Treasurer, and Secretary of the corporate
respondent. Individually or in concert with others, he formulates,
directs, or controls the policies, acts, or practices of the
corporation. His principal office or place of business is the same
as that of MTT.
2. Proposed respondents admit all the jurisdictional facts set
forth in the draft complaint.
3. Proposed respondents waive:
a. Any further procedural steps;
b. The requirement that the Commission's decision contain a
statement of findings of fact and conclusions of law; and
c. All rights to seek judicial review or otherwise to challenge or
contest the validity of the order entered pursuant to this
agreement.
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