FROM:
Alvin G. Weger, Assistant District Attorney   CONTACT PERSON:
Robin B. Wakshull, Deputy District Attorney
(408) 792-2584   For Release on November 21, 2002   DISTRICT ATTORNEYS SUE BODY WRAP-WEIGHT LOSS CENTERS   A civil complaint has been filed on behalf of The People of the State of California by the District Attorneys of Santa Clara and Orange counties against two corporations and their officers and managers for violating the California Weight Loss law and making misleading claims about the effectiveness of programs and products.  The complaint alleges that defendants have operated body wraps and weight loss centers in Santa Clara and Orange counties and have also engaged in advertisement and sale of  products and treatments at retail and wholesale levels, as well as offering licensing and business opportunities for body wrap centers and products sales.   The parties named in the complaint are: Cos-Medical, Inc.; Cos-Medical International, Inc.; Michelle Kelley, who is president and chief executive officer of Cos-Medical, Inc. and chief financial officer and a director of Cos-Medical International, Inc.; Darryl Monroe, who is chief financial officer and secretary of Cos-Medical, Inc. and secretary and director of Cos-Medical International, Inc.; Carolyn Kelley, who is president and chief executive officer of Cos-Medical International, Inc.; and Michael Miller, who managed the Body Wrap center in San Jose, California.   The complaint alleges that the defendants violated the California weight loss contract law by failing to provide written contracts to the consumer at the time of signing, failing to provide contracts that disclose the statutory 3-day right to cancel the contract and obtain a refund for any reason, and failing to disclose the statutory right to cancel in the event of death, disability or relocation.  This statute became effective in 1990.  The complaint also alleges that defendants made untrue and misleading statements to the public to induce them to enter into contracts with defendants.  These statements include the following:  that a consumer had no right to cancel a weight loss service contract and obtain a refund; that a consumer will lose 5-10 inches per treatment, without disclosing that the 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 fat deposits; using testimonials that were not representative of what consumers generally will achieve with the advertised product and services, without disclosing the limited applicability of the endorser’s experience; making specific claims about the efficacy of its products and services in comparison with competitors without adequate substantiation;  misrepresenting the size and stature of the corporations and the profitability of licensing opportunities.   Anyone who has entered into any contracts or agreements with the named businesses and has questions about this action may contact the Santa Clara County District Attorney’s Consumer Mediation Unit at (408) 792-2880.   ###

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