The parties have reached a $2.6 million settlement in an FTC administrative proceeding filed against Savvier, Inc., BodyFlex, Inc. and their owners, the marketers of the BodyFlex+ weight-loss system, on behalf of all persons who paid almost $60 for a plastic exercise bar and two videotapes that teach breathing technique and various exercises. The action alleged that the defendants deceptively advertised that BodyFlex causes users to lose from four to 14 inches in the first seven days of use. Persons eligible to take part in the settlement should contact the prosecuting attorneys for more information.

The FTC’s amended complaint names Savvier, Inc., and Savvier, LP; their principals, Jeffrey Tuller and Jack Ching Chung Chang; BodyFlex, Inc., a Nevada corporation; and its principal and BodyFlex spokesperson Greer Childers. In a stipulated motion filed on August 31, 2004, the FTC asked the court to dismiss charges against defendant Jack Ching Chung Chang.

BodyFlex is an 18-minute routine involving stretching, deep breathing, and exercises with the BodyFlex Gym Bar – a plastic exercise bar with a resistance band. In 2003, the defendants promoted BodyFlex in a heavily-aired national infomercial and on the Internet at www.bodyflex.com. The ads claimed, “in just seven days you can lose from four to 14 inches guaranteed with BodyFlex Plus.”

BodyFlex has two components: (1) a Gym Bar (a plastic exercise bar with an oversized elastic band attached at either end); and (2) a breathing technique. The product is packaged with a carrying case, instructions, a tape measure and includes two videotapes: “Getting Started: Losing the Inches,” an instructional video in which Ms. Childers demonstrates the breathing technique and various exercises; and “The Workout: Just Minutes a Day,” which depicts Ms. Childers performing the BodyFlex approximately 18-
minute routine. The defendants offered BodyFlex for $39.90 (two payments of $19.95) plus shipping and handling costs of $14.95, for a total of $54.85, directly to consumers through a toll-free telephone number and on the BodyFlex Website.

The BodyFlex breathing technique involves taking deep breaths, which the defendants’ infomercial refers to as “aerobic” or “accelerated” breathing. Ms. Childers states in the “Getting Started” videotape that this breathing technique, by itself, can cause consumers to lose inches and burn fat. In the “Getting Started” videotape, Ms. Childers explains that to use the Gym Bar, consumers place the elastic band under their feet and hold the plastic bar in their hands and lift the bar up and down. The elastic band provides resistance, increasing the effort required to lift the bar.

The FTC alleged that the defendants made false and unsubstantiated claims that: (1) BodyFlex causes users to lose from four to 14 inches across six body areas in the first seven days without reducing calories; (2) BodyFlex causes users to burn enough body fat to achieve the claimed inch loss in the first seven days; and (3) a clinical study proves that BodyFlex causes significant fat loss and inch loss in the first seven days.

The order requires Savvier, LP, to establish and administer a $2.6 million consumer refund program. Savvier LP also will pay the administrative costs of the refund program. Under the program, dissatisfied consumers will have an opportunity to receive either a full refund or a pro rata share, depending on the consumer response to the refund offer. Savvier LP will send notices to BodyFlex purchasers describing how they can receive a refund. After the refund program is completed, any unused funds will be disgorged to the U.S. Treasury. The FTC has established a consumer hotline number for BodyFlex: 202-326-2935.

The order also contains a $36 million “avalanche clause,” which would make this entire amount immediately due if the court finds that the defendants misrepresented their financial condition.