|For Immediate Release
May 30th, 2003
Deputy District Attorney
Consumer Fraud Unit
(714) 347-8707 (O)
CASE AGAINST COS-MEDICAL BODY WRAP-WEIGHT LOSS CENTERS SETTLED
SANTA ANA – May 30, 2003 – The Orange County District Attorney’s Office (OCDA) and the Santa Clara County District Attorney’s Office have settled a civil lawsuit against Cos-Medical, Inc. and Cos-Medical International, Inc. The complaint was filed in Santa Clara County Superior Court in November 2002 and alleges that the defendants violated California Weight Loss Contract law and made misleading claims about the effectiveness of programs and products, and the profitability of licensing and distributor agreements.
The defendants consented to entry of the final judgment, which was signed by Judge William J. Elfving, and includes injunctive provisions, civil penalties of $40,000, and restitution to eligible customers.
The injunctive provisions prohibit defendants from using contracts that do not comply with the Weight Loss Contract law.
The law requires that a written contract be given to the customer upon signing which includes full disclosure of the right to cancel within 3 days for any reason and the right to cancel in the event of death, disability or relocation.
The judgment prohibits the making of untrue or misleading statements, including the following:
- that a consumer will lose 5-10 inches per treatment, without disclosing that inch loss is based on a total body measurement which is the sum of many measurements over the body;
- that the body wrap treatment shrinks or dissolves fat deposits, unless that claim is substantiated by adequate scientific evidence;
- using testimonials that are not representative of what consumers
generally will achieve, unless it discloses the limited applicability of the endorser’s experience;
- making specific comparative claims about the efficacy of its products and services with competitors’ without adequate substantiation;
- misrepresenting the size and stature of the corporations and the profitability of licensing opportunities.
Customers who signed body wraps or weight loss contracts that did not comply with state law have the right to cancel those contracts and to request a refund for services or goods not received under the contract.
For more information, customers who signed up in the San Jose facility, which closed in December 2001, may contact the Santa Clara District Attorney’s Office at (408) 792-2880. Customers who signed up in Orange County facilities may contact the Orange County District Attorney’s Office at (714) 347-8707.