Alvin G. Weger, Assistant District Attorney CONTACT PERSON:
Robin B. Wakshull, Deputy District Attorney
Consumer Protection Unit
(408) 792-2584 For Release on May 29, 2003 DAs SETTLE CASE AGAINST COS-MEDICAL BODY WRAP-WEIGHT LOSS CENTERS The District Attorneys of Santa Clara and Orange Counties have settled a civil lawsuit against Cos-Medical, Inc. and Cos-Medical International, Inc. The complaint, filed in Santa Clara County Superior Court in November 2002, alleges that defendants violated California Weight Loss Contract law and made misleading claims about the effectiveness of programs, products, and profitability of licensing/distributor agreements. Defendants consented to the entry of final judgment which was signed by Judge William J. Elfving. The judgment includes injunctive provisions, civil penalties of $40,000, and restitution to eligible customers. The injunctive provisions prohibit the use of 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: 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; the use of testimonials that are not representative of what consumers generally will achieve, unless it discloses the limited applicability of the endorser’s experience; the making of specific comparative claims about the efficacy of its products and services with competitors’ without adequate substantiation; the misrepresentation of the nature and 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 enrolled 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 enrolled in Orange County facilities may contact the Orange County District Attorney’s Office at (714) 347-8707.