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History Discovery |
Federal Trade Commission
Docket No. C-3942
In the Matter of CMO Distribution Centers of America, Inc., and Kalon
Samulonis
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Complaint
Exhibit A [PDF
1,381K]
Exhibit B [PDF
5,547K] |
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9823180
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
In the Matter of
CMO DISTRIBUTION CENTERS OF AMERICA, INC., a corporation,
and KALON SAMULONIS, individually and as an officer of the corporation.
DOCKET NO. C-3942
COMPLAINT
The Federal Trade Commission, having reason to believe that CMO
Distribution Centers of America, Inc. and Kalon Samulonis, 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. Respondent CMO Distribution Centers of America, Inc. is incorporated
in the States of Florida and Michigan and maintains its principal place of
business at 6479 Parkland Drive, Sarasota, FL 34243.
2. Respondent Kalon Samulonis is the President 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.
3. Respondents have promoted, offered for sale, sold, and distributed to
the public products containing a substance described as cetylmyristoleate,
cerasomal-cis-9-cetylmyristoleate, cetyl myristoleate, or CMO, including
products identified with the name "CMO™" [hereinafter referred to
collectively as "CMO"]. These products are "foods" and/or "drugs" within the
meaning 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
advertisements or promotional materials for products containing CMO,
including but not necessarily limited to the attached Exhibits A and B.
Advertisements for respondents' CMO products have been disseminated through,
among other media, a web site on the Internet. These advertisements and
promotional materials contain the following statements:
A. Arthritis Treatment Breakthrough
[Depiction of
Product
Container]
* * *
The purpose of this web site is to give you the opportunity to learn
about the arthritis treatment breakthrough called CMO™. It is being hailed
by doctors, the media and its users as the cure for arthritis. It has
taken 26 years to develope CMO™ and make it available to the public. We
urge you to explore this site and learn about this revolutionary new
substance.
* * *
CMO. . . THE DISCOVERY
In 1971, the predecessor of CMO™ capsules, was first discovered by a
researcher at the National Institutes of Health. . . Eventually he
discovered that when this substance was injected near the joints of lab
animals it protected them from arthritis. Many years later he contracted
arthritis himself. After his doctor could provide no further relief
through conventional medicine, he successfully injected himself to
permanently reverse his arthritic condition.
* * *
[Depiction of
Scientist]
The San Diego Clinic did the first clinical study on CMO™. That study
proved CMO™ to be of great benefit to osteo, rheumatoid and reactive
arthritis. Subsequent data proves its value for nearly all other forms of
arthritis except gouty arthritis.
* * *
HOW IT WORKS
In their October 28, 1996 issue, Time magazine reported on the three
most promising developments in arthritis research. The scientists
participating in all three projects are intensely focused on intervening
in the immune system's involvement in the arthritic process. According to
doctors, that is exactly what CMO™ does. It corrects the disease at the
source in the immune system. Dr. Len Sands the director of the San Diego
Clinic says: "Unlike everything else made for arthritis, you don't have to
take it over and over again. CMO™ is not a pain reliever,
anti-inflammatory, cortisone or other steroid. CMO™ is an immunomodulator,
it regulates your immune system. There's never been anything like it
before for arthritis. Instead of treating the symptoms of pain and
inflammation, CMO™ capsules act directly against the cause of arthritis,
the memory T-cells in your immune system that create the attacks against
your joints. Once the error in your immune system is corrected by CMO™,
the attacks on your joints stop and the pain and inflammation should be
relieved forever. Once the problems are corrected, they stay corrected and
you no longer need CMO™ or other arthritis remedies."
WHY IT IS DIFFERENT
CMO™ is not a conventional product. There's never been anything like it
before. It's not a pain reliever, herb or anti-inflammatory. CMO™ is a
natural immunomodulator. It has the unique ability to normalize the immune
system. CMO™ acts directly to regulate and normalize the malfunctioning
immune system and stop the arthritic process itself. Once that occurs, the
destruction stops, and the pain and inflammation are automatically
relieved. Your body then has a chance to heal itself and return to normal.
* * *
CMO is:
FAST
LASTING RELIEF IS JUST A FEW DAYS AWAY
Most users report significant relief in two weeks or less. Even in
severe cases it rarely takes longer than 21 days.
EASY
ONLY ONE SET OF ORAL CAPSULES
Take three capsules in the morning and then again at night for 16 days,
then say goodbye to the problems of arthritis. Only one bottle is all that
is needed in most cases.
SAFE
NO SIDE EFFECTS
CMO™ is not like the many medicines for arthritis that are toxic. CMO™
is not even like the several types of vitamins that are toxic at high
levels. CMO™ has been tested and shown to have no ill effects whatsoever.
To date thousands upon thousands of people have used CMO™ to relieve the
symptoms of arthritis and there are no reported ill effects from anyone.
EFFECTIVE
IT WORKS FOR ALMOST EVERYONE
It works for both osteoarthritis and rheumatoid arthritis. It works for
all other types of arthritis except gouty arthritis. CMO™ has been
effective on nearly everyone that does not have severe liver damage. CMO™
almost always provides relief of pain, swelling and return of mobility. In
the clinical studies they found a few cases that only received 70% to 100%
relief. Relief provided by CMO™ was invaluable and the subjects were able
to return to a normal life.
NATURAL
DRUG FREE PAIN RELIEF
CMO™ is the commercial name for cerasomal-cis-9-cetylmyristoleate. It
is naturally derived from beef. Similar substances have long been used in
common foods including cheese and chocolate. This treatment is accepted by
the modern medical community. It is natural, drug free and non-toxic.
PERMANENT
TAKE CMO™ ONLY ONCE
One bottle of capsules is all you should ever need for relief from the
symptoms of arthritis for the rest of your life. Most affected persons
need to take CMO™ for only a couple of weeks. No further treatment or
medicines are needed, not even CMO™. Once CMO™ has done it's work stopping
arthritis the benefits continue for long periods of time as your body
repairs and reverses the damage done by arthritis.
* * *
What do doctors say about CMO?
Dr. Douglas wrote in his newsletter: "A New Miracle
Cure for Arthritis ...now we have a new star on the horizon that promises
as much (or more) than the old sure-cures."
Dr. Muller of Ferndale, Mich. says there's a cure. He
knows, he's taken it. Dr. Muller had osteoarthritis for 30 years. Bravely
he forged ahead into the naturopathic remedy and tried CMO™. Dr. Muller is
no longer troubled by arthritis.
Dr. Hunt was so impressed by CMO™ he wrote a book
called "Boom, You're Well". In that book he says: "...rheumatoid arthritis
damages tissues, causes extreme suffering, and premature death. ...If you
have rheumatoid arthritis, or you know someone who has it, then you know I
am reporting a miracle ... A MIRACLE."
Dr. Sands the director of the San Diego Clinic knows
there's a cure. He's taken it and now he says, "I was rescued from
arthritis". In fact that is the name of his forthcoming book about CMO™.
In that book he says, "The arthritic process can be halted. Arthritis can
be reversed. The pain and inflammation can be relieved. And it's all been
done without any harmful side effects."
What is the media saying about CMO?
Books, Television News, Radio Health Talk Shows, Medical
Newsletters and Scientific Journals all report CMO™ to be a revolutionary
breakthrough!
* * *
What are people saying about CMO?
"It's a miracle! Ten years with arthritis ... three in a wheelchair ...
and now I've got a completely normal life again. Just watch me make up for
lost time."
* * *
"Even as a doctor, I find CMO™ miraculous. It cured my knee problems,
and it's performing every bit as well for my patients, too. I've seen
several 'miracle cures' already."
"After nine years of crippling pain, I can't believe I'm actually
skiing again. CMO™ is truly incredible."
* * *
"Imagine my agony. I was a professional athlete all my life. CMO™ gave
me back my life. Even knee surgery didn't do that for me. It's amazing how
CMO™ ended up fixing all my joints."
FREQUENTLY ASKED QUESTIONS
The following questions were answered by the doctors, staff and
research associates of the San Diego Clinic:
* * *
Will it correct deformities?
Yes. Deformed fingers and toes are often caused by inflammation which
swells joints and pushes the bones out of place. Reduction of the swelling
alone improves appearance dramatically and often allows the dislocated
bones to return to their normal positions. Extreme cases may require some
physical therapy.
What about really severe cases?
Even most persons previously confined to bed or to wheelchairs have
responded dramatically and are now no longer dependent on others for care.
A number of these cases received additional benefit from repeating the
treatment one more time...
* * *
Is it expensive?
The cost of the treatment is very modest. Most arthritis victims are
already spending more on pain and anti-inflammation medications in just a
few months. Since you usually need to take only one set of CMO capsules,
it actually saves thousands of dollars in the long run.
* * *
Is CMO used for any other ailments?
Current studies include CMO as a part of therapeutic protocol for other
disorders with autoimmune components including multiple sclerosis,
leukemia, lupus, emphysema, certain cancers, begin prostrate hyperplasia,
silicon breast disease, and especially asthma.
* * *
ORDERING
* * *
Toll free in the US: 1-800-909-CURE
* * *
Manufacturers Statement
Modestly speaking, CMO™ is a revolutionary new product. CMO™ is
naturally derived, it is sold only as a dietary supplement not intended to
treat, cure, or diagnose any disease.
[Exhibit A, http://home.earthlink.net/~cmocure/cmocure/]
B.Letter of Introduction
* * *
This site contains exciting information about a naturally derived
substance called CMO. It is being hailed by it's users, doctors and the
media as the cure for arthritis...
CMO has been clinically tested and found to relieve the symptoms of
virtually all forms of arthritis except gouty arthritis. CMO is a one time
treatment consisting of 100 capsules taken orally over a period of 16
days. The benefits of CMO should last a lifetime. CMO is reported to be
effective on 80% of the people who have used it as a dietary supplement.
In clinical studies with a controlled diet, CMO has been reported to be
effective on 96% of the people who have used it. CMO can benefit almost
everyone who suffers from arthritis with just one treatment. The treatment
program is fast, easy, safe and very effective. CMO can halt arthritis and
prevent future pain, swelling and stiffness. CMO can rescue someone from
the physical damage that a future with arthritis holds.
* * *
The History and Discovery of CMO
* * *
With the research concluded, effectiveness improved, medical community
acceptance, imposters and counterfeiters in check, the television
commercial finished, the books written, and the distribution arranged, CMO
can finally finish it's 26 year long journey from the point of discovery
to benefit the general public.
* * *
Who says there's a cure for arthritis?
Time Magazine
As we mentioned earlier in the CMO Information section, in their
October 28, 1996 issue, Time magazine reported on the three most promising
developments in arthritis research. The scientists participating in all
three projects are intensely focused on intervening in the immune system's
involvement in the arthritic process.
According to doctors that is exactly what CMO does. It corrects the
disease at the source in the immune system and doesn't require a lifetime
maintenance program.
* * *
What will cure arthritis?
Dr. Jason Theodosakis' book The Arthritis Cure for gives the impression
that glucosamine and chondroitin sulfate are the cure for arthritis. In
fact neither of those substances have any effect on arthritis...Even the
Arthritis Foundation says The Arthritis Cure is not recommended and they
cannot recommend glucosamine and chondroitin sulfate as a treatment for
osteoarthritis or any other form of arthritis.
* * *
Speaking of the Arthritis Foundation, they will neither confirm, nor
deny that CMO is the cure for arthritis. We are aware of several cases
where CMO was presented members of the AF. In turn, they were cured and
presented CMO to AF staff. To this day, despite the fact that CMO has
cured some of their members, the only official comment the AF has made,
was to suggest that when taking CMO, you should consult your physician
before reducing steroids or other medications.
According to doctors, clinical studies, users and the media, CMO would
certainly seem like the most likely candidate to be given the true title
being of a "cure" for arthritis. When asking Dr. Sands if CMO is the only
cure for arthritis he replies:
"According to the Journal of Rheumatology (1993; 20:137-140) bone
marrow transplants seem to have succeeded in curing two cases of
arthritis."
* * *
Research
CMO Distribution Centers of America in conjunction with the San Diego
Clinic act as a clearing house for all the latest information on CMO. With
this joint research effort, a network of communication is established
between all medical professionals and distributors. This allows for up to
the minute information sharing. This will facilitate the application of
CMO to uses other than for arthritis. Currently, studies for the use of
CMO on other auto-immune diseases are in progress. It is hoped that the
Lupus Foundation will conduct one such study. We have offered to fund the
protocol.
Current studies of CMO as a part of therapeutic protocol for other
diseases include asthma, sclerederma, fibromyalgia, lupus, emphysema,
certain cancers, and benign prostrate hyperplasia.
* * *
Case Histories
Condensed Highlights From Case Histories
Recorded By The San Diego Clinic
* * *
From case history #33
Medical Doctor. Auto wreck ten years earlier damaged hip, caused limp
and arthritis. CMO relieved pain permanently in one day for the first time
after many years. The limp problem is irreparable. Ordered CMO for his
patients.
* * *
From case history #24
Female. Age 50. Family history of arthritis. Pain in shoulders. Severe
pain, limited mobility, and gross swelling in hands and fingers. By the
third day of CMO, hands were free of pain, mobility had increased
immensely, and finger swelling decreased so dramatically she had to have
all her rings re-sized. Repeated treatment three weeks later. Totally free
of pain and inflammation since. For the first time in many years, she was
recently delighted to experience a pain-free skiing holiday.
* * *
From case history #11
Male. Age 58. Ex football player. Clinically obese. Had knee surgery
three times about 15 years ago. Had extreme pain upon lying down. Often
slept in a recliner chair instead. With his first evening dose of CMO
capsules, he slept soundly and arose the next morning completely free of
pain. He has enjoyed continuing pain-free remission ever since the first
day.
* * *
From case history #32
Female. Age 66. Rheumatoid arthritis rendered hands useless, gnarled,
inflexible, agonizingly painful six years ago. Pain relieved and full use
of hands restored after five days of CMO.
* * *
Suggested Use
* * *
Methotrxate:
. . .Request that your doctor allow you to discontinue these drugs for
at least one week prior to starting CMO. Consult with your physician
before making any changes to your current medications.
Steroids:
. . .If you are taking cortisone or other steroids, advise your doctor
that it would be better to avoid them or reduce their dosage levels. If
not ask him about taking half doses. Then as your pain disappears you may
request that he discontinue them completely. Consult with your physician
before making any changes in your current medications.
* * *
Marketing & Sales
Market Information
* * *
Current studies of CMO as a part of therapeutic protocol for other
diseases include asthma, sclerederma, fibromyalgia, lupus, emphysema,
certain cancers, and benign prostrate hyperplasia. The CMO Distribution
Centers and San Diego Clinic team have dedicated themselves to that
research and the results will expand the market potential of CMO to other
diseases.
[Exhibit B, http://home.earthlink.net/~cmocure/cmo/]
6. Through the use of the web site address "cmocure," the use of the
telephone number "1-800-909-CURE," and the means described in Paragraph 5,
respondents have represented, expressly or by implication, that:
- A. CMO is effective in the mitigation, treatment, prevention, and cure
of all forms of arthritis, except gouty arthritis.
-
- B. CMO relieves all symptoms of arthritis, including pain, impaired
mobility, swelling, and deformity.
-
- C. CMO is as effective as, or superior to, prescription medications
for the treatment of arthritis and the relief of arthritis symptoms.
-
- D. CMO is effective in the treatment of multiple sclerosis, leukemia,
lupus, emphysema, cancer, benign prostate hyperplasia, silicone breast
disease, asthma, fibromyalgia, and scleroderma.
-
- E CMO is completely safe and without harmful side effects, even at
extremely high doses.
7. Through the means described in Paragraph 5, respondents have
represented, expressly or by implication, that "case histories" and
testimonials from consumers appearing in the advertisements or promotional
materials for respondents' CMO products reflect the typical or ordinary
experience of members of the public who use the products.
8. Through the use of the web site address "cmocure," the use of the
telephone number "1-800-909-CURE," and 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 Paragraphs 6 and 7, at the time the
representations were made.
9. In truth and in fact, respondents did not possess and rely upon a
reasonable basis that substantiated the representations set forth in
Paragraphs 6 and 7, at the time the representations were made. For example,
studies have not examined the efficacy of the ingredients in respondents'
CMO products in the prevention or cure of arthritis; or in comparison to
prescription medications for the treatment of arthritis or the relief of
arthritis symptoms; or in the treatment of multiple sclerosis, leukemia,
lupus, emphysema, cancer, benign prostate hyperplasia, silicone breast
disease, asthma, fibromyalgia, or scleroderma. In addition, there is
insufficient information available to determine the reliability of other
purported studies or the applicability of such studies to the respondents'
products. Therefore, the representation set forth in Paragraph 8 was, and
is, false or misleading.
10. Through the means described in Paragraph 5, respondents have
represented, expressly or by implication, that:
- A. Clinical studies prove that CMO is a safe and effective treatment
for virtually all forms of arthritis except gouty arthritis.
-
- B. CMO is accepted by the medical community.
-
- C. Time magazine reported in its October 28, 1996 issue that
CMO™ is one of the most promising developments in arthritis research.
-
- D. The Arthritis Foundation has not commented on CMO, except to
suggest that when taking CMO, patients should consult their physicians
before reducing steroids or other medications.
11. In truth and in fact,
- A. CMO has not been proved in clinical studies to be a safe and
effective treatment for virtually all forms of arthritis except gouty
arthritis.
-
- B. CMO is not accepted by the medical community.
-
- C. Time magazine did not report in its October 28, 1996 issue
that CMO™ is one of the most promising developments in arthritis research.
-
- D. The Arthritis Foundation has not refrained from comment on CMO. In
its Public Information Memo, P.I. Memo 97-07 (Oct. 31, 1997), the
Arthritis Foundation stated:
-
-
- The Arthritis Foundation cannot recommend
cerasomal-cis-9-cetylmyristoleate and related products as a treatment
for any form of arthritis. . . Cerasomal-cis-9-cetylmyristoleate and
related products are an unproven remedy. . . People with arthritis
should seek proper medical care from their family physician or a
rheumatologist. They should check with their doctor before self-treating
with unproven remedies claimed to help arthritis. . . People on
medications such as corticosteroids or methotrexate should be especially
cautious about using cerasomal-cis-9-cetylmyristoleate and related
products and consult their physician.
-
- Therefore, the representations set forth in paragraph 10 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 sixteenth day of May, 2000,
has issued this complaint against respondents.
By the Commission.
Donald S. Clark
Secretary
SEAL: |
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Decision &
Order |
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ATTACHMENT A
LETTER TO DISTRIBUTORS
WITH WHOM RESPONDENTS HAVE
DONE BUSINESS PRIOR TO SERVICE OF THIS ORDER
[To be printed on letterhead of CMO Distribution Centers of America,
Inc.]
[Name and address of recipient] [Date]
Dear [recipient's name]
It is against the law to make false claims about any product or to make
any health-related claims about any product of CMO Distribution Centers of
America, Inc., which are not substantiated by competent and reliable
scientific evidence. Competent and reliable scientific evidence is defined
as tests, research, studies, or other evidence, based on the expertise of
professionals in the relevant area, that has been conducted and evaluated in
an objective manner by persons qualified to do so, using procedures
generally accepted in the profession to yield accurate and reliable results.
Anecdotal evidence and consumer testimonials are not considered competent
and reliable scientific evidence.
The Federal Trade Commission has determined that it has reason to believe
that claims that CMO Distribution Centers of America, Inc.'s cetyl
myristoleate ("CMO") products are effective in the treatment, relief,
mitigation, prevention, or cure of arthritis and other health conditions are
not substantiated by competent and reliable scientific evidence. As a result
of this determination, CMO Distribution Centers of America, Inc., has agreed
to send this letter to its current and former distributors and institute
certain procedures, described below.
CMO Distribution Centers of America, Inc., intends to abide by the law
and demands that its distributors do the same. Therefore, as a condition of
your future purchase of CMO Distribution Centers of America, Inc.'s products
intended for distribution, or resale, or recommendation to others in the
context of a professional or commercial relationship, you must agree not to
use, rely on, or distribute any advertising or promotional materials
containing false or unsubstantiated claims. You must further agree not to
make false or unsubstantiated oral representations with regard to any
product or program of CMO Distribution Centers of America, Inc. You must
also notify your customers who purchase the products for redistribution to
do the same. If you or those customers use such materials or make such
representations we will stop doing business with you.
In order that CMO Distribution Centers of America, Inc., may assure
itself that you are in compliance with the aforesaid requirements, you must,
as a condition of distributing the Company's products, agree to submit to
CMO Distribution Centers of America, Inc., in advance and prior to use,
dissemination, or publication, all advertisements or promotional materials
that you intend to use, publish, or disseminate with regard to any CMO
Distribution Centers of America, Inc., product or program. In addition, you
must furnish us with the URL (Internet address) of any web site you intend
to use in connection with the marketing or promotion of our products. You
must further agree not to use, disseminate, or publish any such
advertisement or promotional materials without our prior approval. We may,
in our discretion, send you materials you are authorized to use in your
advertising.
Should you fail or refuse to comply with the terms of this letter, we
will not do business with you. Furthermore, if CMO Distribution Centers of
America, Inc., has reason to believe that you have misrepresented or made
claims with respect to any of our products that are false or not
substantiated by competent and reliable scientific evidence, CMO
Distribution Centers of America, Inc., will report your violation to the
Federal Trade Commission. Please sign, date, and return the enclosed copy of
this letter to CMO Distribution Centers of America, Inc.,
6479 Parkland Drive, Sarasota, FL 34243,
acknowledging your receipt of this letter and your agreement to the terms
set forth herein.
Thank you very much for your cooperation.
Sincerely,
Kalon Samulonis
President
ACKNOWLEDGMENT AND AGREEMENT
The undersigned acknowledges receipt of this letter and hereby agrees to
its terms and conditions.
Date
Signature
Title |
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ATTACHMENT B
LETTER TO DISTRIBUTORS
WITH WHOM RESPONDENTS HAVE DONE BUSINESS SINCE RESPONDENTS EXECUTED THIS
ORDER
[To be printed on letterhead of CMO Distribution Centers of America,
Inc.]
[Name and address of recipient] [Date]
Dear [recipient's name]
It is against the law to make false claims about any product or to make
any health-related claims about any product of CMO Distribution Centers of
America, Inc., which are not substantiated by competent and reliable
scientific evidence. Competent and reliable scientific evidence is defined
as tests, research, studies, or other evidence, based on the expertise of
professionals in the relevant area, that has been conducted and evaluated in
an objective manner by persons qualified to do so, using procedures
generally accepted in the profession to yield accurate and reliable results.
Anecdotal evidence and consumer testimonials are not considered competent
and reliable scientific evidence.
The Federal Trade Commission has determined that it has reason to believe
that claims made in the past that CMO Distribution Centers of America,
Inc.'s CMO products are effective in the treatment, relief, mitigation,
prevention, or cure of arthritis and other health conditions are not
substantiated by competent and reliable scientific evidence. As a result of
this determination, CMO Distribution Centers of America, Inc., has agreed to
send this letter to its customers who purchase the Company's product for
distribution or resale.
CMO Distribution Centers of America, Inc., intends to abide by the law
and demands that its distributors do the same. Therefore, as a condition of
your purchase of CMO Distribution Centers of America, Inc.'s products
intended for distribution, or resale, or recommendation to others in the
context of a professional or commercial relationship, you must agree not to
use, rely on, or distribute any advertising or promotional materials
containing false or unsubstantiated claims. You must further agree not to
make false or unsubstantiated oral representations with regard to any
product or program of CMO Distribution Centers of America, Inc. You must
also notify your customers who purchase the products for redistribution to
do the same. If you or those customers use such materials or make such
representations, we will stop doing business with you.
In order that CMO Distribution Centers of America, Inc., may assure
itself that you are in compliance with the aforesaid requirements, you must,
as a condition of distributing the Company's products, agree to submit to
CMO Distribution Centers of America, Inc., in advance and prior to use,
dissemination, or publication, all advertisements or promotional materials
that you intend to use, publish, or disseminate with regard to any product
of CMO Distribution Centers of America, Inc. In addition, you must furnish
us with the URL (Internet address) of any web site you intend to use in
connection with the marketing or promotion of our products. You must further
agree not to use, disseminate, or publish any such advertisement or
promotional materials without our prior approval. We may, in our discretion,
send you materials you are authorized to use in your advertising.
Should you fail or refuse to comply with the terms of this letter, we
will not do business with you. Furthermore, if CMO Distribution Centers of
America, Inc., has reason to believe that you have misrepresented or made
claims with respect to any of our products that are false or not
substantiated by competent and reliable scientific evidence, CMO
Distribution Centers of America, Inc., will report your violation to the
Federal Trade Commission.
Please sign, date, and return the enclosed copy of this letter to
CMO Distribution Centers of America, Inc., 6479 Parkland Drive, Sarasota, FL
34243, acknowledging your receipt of this letter and your agreement
to the terms set forth herein.
Thank you very much for your cooperation.
Kalon Samulonis
President
ACKNOWLEDGMENT AND AGREEMENT
The undersigned acknowledges receipt of this letter and hereby agrees to
its terms and conditions.
Date
Signature
Title
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ATTACHMENT C
LETTER TO CUSTOMERS (OTHER THAN DISTRIBUTORS) WITH
WHOM RESPONDENTS HAVE DONE BUSINESS PRIOR TO EXECUTING THIS ORDER
[To be printed on letterhead of CMO Distribution Centers of America,
Inc.]
[Name and address of recipient] [Date]
Dear [recipient's name]
The Federal Trade Commission has determined that it has reason to believe
that claims made in the past that CMO Distribution Centers of America,
Inc.'s cetyl myristoleate ("CMO") products are effective in the treatment,
relief, mitigation, prevention, or cure of arthritis and other health
conditions are not substantiated by competent and reliable scientific
evidence. As a result of this determination, CMO Distribution Centers of
America, Inc., has agreed to send this letter to its retail customers and
former customers and institute the refund program described below.
If your purchase of CMO Distribution Centers of America, Inc., CMO
products was intended for the personal use of you or your family and not for
distribution, or resale, or for recommendation to others in the context of a
professional or commercial relationship, you may be entitled to a refund of
the purchase price, together with any shipping and handling charges and
applicable sales taxes. As part of its agreement with the Federal Trade
Commission, CMO Distribution Centers of America, Inc., has agreed to offer
refunds to certain customers who verify that they purchased CMO Distribution
Centers of America, Inc.'s CMO products for their own use or the use of
their families and did not offer the products for resale, and that they are
not satisfied with the purchase.
To claim a refund, please complete the attached form, or a copy of it,
and return it to the indicated address within ninety (90) days of the date
of this letter. If possible, please indicate on the form the price you paid
for the products you purchased, including any shipping or handling charges
or sales taxes; and you may submit copies of any documentation
substantiating the expense. If you do not supply this information, we will
calculate your refund from our records.
We will honor all eligible, undisputed claims within fifteen (15)
business days after receiving them.
Sincerely,
Kalon Samulonis
President
To apply for a refund:
- Complete the form below, or make a copy of it. Please print legibly.
- Return the form to CMO Distribution Centers of America, Inc.,
6479 Parkland Drive, Sarasota, FL 34243, no later than ninety
(90) days after the date of this letter.
To: CMO Distribution Centers of America, Inc., 6479 Parkland Drive,
Sarasota, FL 34243
From: (Name)
(Mailing Address)
(City, State, and Zip Code)
(Telephone Number)
I purchased one or more cetyl myristoleate (CMO) products made or
distributed by your company, for my personal use or the use of persons in my
family. I am not satisfied with the purchase. Please refund my purchase
price of $ (amount, if known), together with the amounts I was
charged for shipping and handling $ (amount, if known) and sales tax
$ (amount, if known).
Date
Signature
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The Federal Trade Commission today announced
the following actions:
Consent agreements given final approval:
- Following a public comment period, the Commission has made final a
consent agreement with the following: Texas Surgeons, P.A., et al. The
Commission vote to finalize the consent order was 5-0. (File No. 981-0124;
C-3944; staff contact is Richard A. Feinstein, Bureau of Competition,
202-326-3688; see press release dated April 13, 2000.)
- Following a public comment period, the Commission has made final a
consent agreement with the following: Wisconsin Chiropractic Association.
The Commission vote to finalize the consent order was 5-0. (File No.
971-0117; C-3943; staff contact is C. Steven Baker, Midwest Region Office,
312-960-5634; see press release dated March 7, 2000.)
- Following a public comment period, the Commission has made final a
consent agreement with the following: CMO Distribution Centers of America,
Inc. The Commission vote to finalize the consent order was 5-0. (File No.
982-3180; C-3942; staff contact is Thomas Carter, Southwest Region Office,
214-979-9372; see press release dated April 5, 2000.)
- Following a public comment period, the Commission has made final a
consent agreement with the following: EHP Products, Inc. The Commission
vote to finalize the consent order was 5-0. (File No. 982-3182; C-3940;
staff contact is Thomas Carter, Southwest Regional Office, 214-979-9372;
see press release dated April 5, 2000.)
- Following a public comment period, the Commission has made final a
consent agreement with the following: Natural Heritage Enterprises. The
Commission vote to finalize the consent order was 5-0. (File No. 992-3125;
C-3941; staff contact is Richard Cleland, 202-326-3088; see press release
dated April 5, 2000.)
``
Copies of the
documents mentioned in this release are available from the FTC's web site at http://www.ftc.gov and also from the FTC's
Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580; toll free: 877-FTC-HELP (877-382-4357); TDD for the
hearing impaired 1-866-653-4261. To find out the latest news as it is
announced, call the FTC NewsPhone recording at 202-326-2710.
Media Contact: - Office of Public Affairs
202-326-2180
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