Federal Trade Commission v. Simeon Management Corporation

The Federal Trade Commission Act authorizes district courts to enjoin unfair or deceptive practices pending final resolution of administrative proceedings for cease- and-desist orders. 15 U.S.C. § 53 (a) (1970); id. § 53(b) (Supp. IV, 1974). In this case the district court denied the FTC’s application for such an injunction against advertising by the respondents’ weight reduction clinics. 391 F.Supp. 697 (N.D.Cal.1975). We affirm.

The respondents operate weight reduction clinics in California, under various ownerships and trade names. The clinics advertise in magazines, newspapers and on television that their weight loss programs are safe, effective and medically approved. The cost of their treatment programs varies from about $100 to $300, which is comparable to or less than weight reduction treatments from private physicians or university clinics.

All of the clinics in this case use the “Simeons” method for weight loss. After an initial physical examination by a licensed physician, patients are given a four to six week treatment program consisting of a 500 calorie daily diet, medical counseling, and daily injections of human chorionic gonado-tropin [HCG]. HCG is a…