Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 1 of 20 Page ID #:127
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`JS-6
`
`UNITED STATES DISTRICT COURT
`FOR THE CENTRAL DISTRICT OF CALIFORNIA
`
`FEDERAL TRADE COMMISSION,
`
`Plaintiff,
`
`Case No. 8:23-cv-01286-CJC-JDE
`
`ORDER FOR PERMANENT
`INJUNCTION, MONETARY
`RELIEF, AND OTHER
`RELIEF
`
`v.
`
`REJUVICA LLC, a California limited
`liability company, also d/b/a Rejuvica
`Health;
`
`KYLE ARMSTRONG, individually and
`as an owner, officer, or member of
`REJUVICA LLC; and
`
`KYLE DILGER, individually and as an
`owner, officer, or member of REJUVICA
`LLC,
`
`Defendants.
`
`Plaintiff, the Federal Trade Commission (“Commission” or “FTC”), filed its
`Complaint For Permanent Injunction, Monetary Judgment, and Other Relief
`(“Complaint”), for a permanent injunction, monetary relief, and other relief in this
`matter, pursuant to Sections 5(a)(1), 12, 13(b), and 19 of the Federal Trade
`1
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 2 of 20 Page ID #:128
`
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`Commission Act (“FTC Act”), 15 U.S.C. §§ 45(a)(1), 52, 53(b), and 57b, and
`Section 8023 of the Opioid Addiction Recovery Fraud Prevention Act of 2018, 15
`U.S.C. § 45d (“OARFPA”). The Commission and Defendants stipulate to the entry
`of this Stipulated Order for Permanent Injunction, Monetary Relief, and Other
`Relief (“Order”) to resolve all matters in dispute in this action between them.
`
`THEREFORE, IT IS ORDERED as follows:
`
`
`FINDINGS
`This Court has jurisdiction over this matter.
`1.
`The Complaint charges that Defendants participated in deceptive acts
`2.
`or practices in violation of Sections 5 and 12 of the FTC Act, 15 U.S.C. §§ 45, 52,
`in the advertising, marketing, and sale of Sobrenix, and in the advertising and
`marketing of other Rejuvica products. The Complaint also charges that the
`Defendants’ deceptive acts or practices in the advertising, marketing, and sale of
`Sobrenix violated Section 8023 of OARFPA.
`3.
`Defendants neither admit nor deny any of the allegations in the
`Complaint, except as specifically stated in this Order. Only for purposes of this
`action, Defendants admit the facts necessary to establish jurisdiction.
`4.
`Defendants waive any claim that they may have under the Equal
`Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this action
`through the date of this Order, and agree to bear their own costs and attorney fees.
`5.
`Defendants and the Commission waive all rights to appeal or
`otherwise challenge or contest the validity of this Order.
`
`
`DEFINITIONS
`For the purpose of this Order, the following definitions apply:
`A.
`“Covered Product” means any Dietary Supplement, Food, or Drug.
`
`
`
`
`2
`
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 3 of 20 Page ID #:129
`
`
`
`“Dietary Supplement” means: (1) any product labeled as a dietary
`B.
`
`supplement or otherwise represented as a dietary supplement; or (2) any pill, tablet,
`capsule, powder, softgel, gelcap, liquid, or other similar form containing one or
`more ingredients that are a vitamin, mineral, herb or other botanical, amino acid,
`probiotic, or other dietary substance for use by humans to supplement the diet by
`increasing the total dietary intake, or a concentrate, metabolite, constituent, extract,
`or combination of any ingredient described above, that is intended to be ingested,
`and is not represented to be used as a conventional food or as a sole item of a meal
`or the diet.
`“Drug” means: (1) articles recognized in the official United States
`
`C.
`Pharmacopeia, official Homoeopathic Pharmacopoeia of the United States, or
`official National Formulary, or any supplement to any of them; (2) articles
`intended for use in the diagnosis, cure, mitigation, treatment, or prevention of
`disease in humans or other animals; (3) articles (other than food) intended to affect
`the structure or any function of the body of humans or other animals; and (4)
`articles intended for use as a component of any article specified in (1), (2), or (3);
`but does not include devices or their components, parts, or accessories.
`
`D.
`“Essentially Equivalent Product” means a product that contains the
`identical ingredients, except for inactive ingredients (e.g., binders, colors, fillers,
`excipients) in the same form and dosage, and with the same route of administration
`(e.g., orally, sublingually), as the Covered Product; provided that the Covered
`Product may contain additional ingredients if reliable scientific evidence generally
`accepted by experts in the field indicates that the amount and combination of
`additional ingredients is unlikely to impede or inhibit the effectiveness of the
`ingredients in the Essentially Equivalent Product.
`
`E.
`“Food” means: (1) any article used for food or drink for humans or
`other animals; (2) chewing gum; and (3) any article used for components of any
`such article.
`
`3
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 4 of 20 Page ID #:130
`
`
`
`“Defendants” means all of the Individual Defendants and the
`F.
`
`Corporate Defendant, individually, collectively, or in any combination.
`1.
`“Corporate Defendant” means Rejuvica LLC, also d/b/a
`Rejuvica Health, and its successors and assigns.
`2.
`“Individual Defendants” means Kyle Armstrong and Kyle
`Dilger.
`
`ORDER
`
`
`
`I.
`
`PROHIBITED REPRESENTATIONS: REGARDING HEALTH-
`RELATED CLAIMS REQUIRING HUMAN CLINICAL TESTING
`FOR SUBSTANTIATION
`IT IS ORDERED that Defendants, Defendants’ officers, agents, employees,
`
`and attorneys, and all other persons in active concert or participation with any of
`them, who receive actual notice of this Order, whether acting directly or indirectly,
`in connection with the manufacturing, labeling, advertising, promotion, offering
`for sale, sale, or distribution of any Covered Product are permanently restrained
`and enjoined from making, expressly or by implication, including through the use
`of a product or program name, endorsement, depiction, or illustration, any
`representation that such product or service:
`A. Reduces or eliminates cravings for alcohol;
`B.
`Enables users to reduce or eliminate their consumption of alcohol;
`C. Assists users to regain control of their problematic drinking;
`D. Cures, mitigates, or treats any substance use disorder or symptom of a
`substance use disorder; or
`E.
`Cures, mitigates, or treats any disease;
`unless the representation is non-misleading, and, at the time of making such
`representation, they possess and rely upon competent and reliable scientific
`evidence substantiating that the representation is true. For purposes of this
`
`4
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 5 of 20 Page ID #:131
`
`
`
`Section, competent and reliable scientific evidence must consist of human clinical
`testing of the Covered Product, or of an Essentially Equivalent Product, that is
`sufficient in quality and quantity based on standards generally accepted by experts
`in the relevant disease, condition, or function to which the representation relates,
`when considered in light of the entire body of relevant and reliable scientific
`evidence, to substantiate that the representation is true. Such testing must be: (1)
`randomized, double-blind, and placebo-controlled; and (2) conducted by
`researchers qualified by training and experience to conduct such testing. In
`addition, all underlying or supporting data and documents generally accepted by
`experts in the field as relevant to an assessment of such testing as described in the
`Section entitled Preservation of Records Relating to Competent and Reliable
`Human Clinical Tests or Studies must be available for inspection and production to
`the Commission. Persons covered by this Section have the burden of proving that
`a product satisfies the definition of Essentially Equivalent Product.
`
`PROHIBITED REPRESENTATIONS: OTHER HEALTH-RELATED
`CLAIMS
`IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
`
`employees, and attorneys, and all other persons in active concert or participation
`with any of them, who receive actual notice of this Order, whether acting directly
`or indirectly, in connection with the manufacturing, labeling, advertising,
`promotion, offering for sale, sale, or distribution of any Covered Product, are
`permanently restrained and enjoined from making, expressly or by implication,
`including through the use of a product or program name, endorsement, depiction,
`or illustration, any representation, other than representations covered under the
`Section of this Order entitled Prohibited Representations: Regarding Health-
`Related Claims Requiring Human Clinical Testing For Substantiation, about the
`health benefits, performance, efficacy, safety, or side effects of any Covered
`
`II.
`
`5
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 6 of 20 Page ID #:132
`
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`Product, unless the representation is non-misleading, and, at the time of making
`such representation, they possess and rely upon competent and reliable scientific
`evidence that is sufficient in quality and quantity based on standards generally
`accepted by experts in the relevant disease, condition, or function to which the
`representation relates, when considered in light of the entire body of relevant and
`reliable scientific evidence, to substantiate that the representation is true.
`
`For purposes of this Section, competent and reliable scientific evidence
`means tests, analyses, research, or studies: (1) that have been conducted and
`evaluated in an objective manner by experts in the relevant disease, condition, or
`function to which the representation relates; (2) that are generally accepted by such
`experts to yield accurate and reliable results; and (3) that are randomized, double-
`blind, and placebo-controlled human clinical testing of the Covered Product, or of
`an Essentially Equivalent Product, when such experts would generally require such
`human clinical testing to substantiate that the representation is true. In addition,
`when such tests or studies are human clinical tests or studies, all underlying or
`supporting data and documents generally accepted by experts in the field as
`relevant to an assessment of such testing as set forth in the Section entitled
`Preservation of Records Relating to Competent and Reliable Human Clinical Tests
`or Studies must be available for inspection and production to the Commission.
`Persons covered by this Section have the burden of proving that a product satisfies
`the definition of Essentially Equivalent Product.
`
`
`III. PRESERVATION OF RECORDS RELATING TO COMPETENT
`AND RELIABLE HUMAN CLINICAL TESTS OR STUDIES
`IT IS FURTHER ORDERED that, with regard to any human clinical test or
`
`study (“test”) upon which Defendants rely to substantiate any claim covered by
`this Order, Defendants must secure and preserve all underlying or supporting data
`and documents generally accepted by experts in the field as relevant to an
`
`6
`
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 7 of 20 Page ID #:133
`
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`assessment of the test, including:
`A. All protocols and protocol amendments, reports, articles, write-ups, or
`other accounts of the results of the test, and drafts of such documents
`reviewed by the test sponsor or any other person not employed by the
`research entity;
`B. All documents referring or relating to recruitment; randomization;
`instructions, including oral instructions, to participants; and
`participant compliance;
`C. Documents sufficient to identify all test participants, including any
`participants who did not complete the test, and all communications
`with any participants relating to the test; all raw data collected from
`participants enrolled in the test, including any participants who did not
`complete the test; source documents for such data; any data
`dictionaries; and any case report forms;
`D. All documents referring or relating to any statistical analysis of any
`test data, including any pretest analysis, intent-to-treat analysis, or
`between-group analysis performed on any test data; and
`E. All documents referring or relating to the sponsorship of the test,
`including all communications and contracts between any sponsor and
`the test’s researchers.
`Provided, however, the preceding preservation requirement does not apply to a
`reliably reported test, unless the test was conducted, controlled, or sponsored, in
`whole or in part by: (1) any Defendant; (2) any Defendant’s officers, agents,
`representatives, or employees; (3) any other person or entity in active concert or
`participation with any Defendant; (4) any person or entity affiliated with or acting
`on behalf of any Defendant; (5) any supplier of any ingredient contained in the
`product at issue to any of the foregoing or to the product’s manufacturer; or (6) the
`supplier or manufacturer of such product.
`
`7
`
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 8 of 20 Page ID #:134
`
`
`
`
`For purposes of this Section, “reliably reported test” means a report of the
`
`test has been published in a peer-reviewed journal, and such published report
`provides sufficient information about the test for experts in the relevant field to
`assess the reliability of the results.
`
`For any test conducted, controlled, or sponsored, in whole or in part, by
`Defendants, Defendants must establish and maintain reasonable procedures to
`protect the confidentiality, security, and integrity of any personal information
`collected from or about participants. These procedures must be documented in
`writing and must contain administrative, technical, and physical safeguards
`appropriate to Corporate Defendants’ size and complexity, the nature and scope of
`Defendants’ activities, and the sensitivity of the personal information collected
`from or about the participants.
`
`IV. PROHIBITED REPRESENTATIONS: TESTS, STUDIES, OR OTHER
`RESEARCH
`IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
`
`employees, and attorneys, and all other persons in active concert or participation
`with any of them, who receive actual notice of this Order, whether acting directly
`or indirectly, in connection with the manufacturing, labeling, advertising,
`promotion, offering for sale, sale, or distribution of any Covered Product, are
`permanently restrained and enjoined from misrepresenting, expressly or by
`implication, including through the use of a product or program name, endorsement,
`depiction, or illustration:
`A.
`That the product is clinically proven to reduce or eliminate alcohol
`cravings or alcohol consumption;
`That the performance or benefits of the product are scientifically or
`clinically proven or otherwise established; or
`
`B.
`
`8
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 9 of 20 Page ID #:135
`
`
`
`
`C.
`
`
`
`The existence, contents, validity, results, conclusions, or
`interpretations of any test, study, or other research.
`
`V.
`FDA-APPROVED CLAIMS
`IT IS FURTHER ORDERED that nothing in this Order prohibits
`
`Defendants, Defendants’ officers, agents, employees, and attorneys, or all other
`persons in active concert or participation with any of them from:
`A.
`For any Drug product, making a representation that is approved for
`inclusion in labeling for such Drug product under a new drug
`application or biologics license application approved by the Food and
`Drug Administration, or, for any nonprescription Drug product
`authorized by Section 505G of the Food, Drug, and Cosmetics Act, 21
`U.S.C. § 355h, (“FDCA”) to be marketed without an approved new
`drug application, making a representation that is permitted or required
`to appear in its labeling in accordance with Section 505G(a)(1)-(3) of
`the FDCA, 21 U.S.C. § 355h(a)(1)-(3), or a final administrative order
`under Section 505G(b) of the FDCA, 21 U.S.C. § 355h(b); and
`For any product, making a representation that is specifically
`authorized for use in labeling for such product by regulations
`promulgated by the Food and Drug Administration pursuant to the
`Nutrition Labeling and Education Act of 1990 or permitted under
`Sections 303-304 of the Food and Drug Administration Modernization
`Act of 1997.
`
`B.
`
`
`
`
`
`
`
`
`
`VI. PROHIBITED MISREPRESENTATIONS: DECEPTIVELY
`FORMATTED ADVERTISING
`IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
`
`9
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 10 of 20 Page ID #:136
`
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`employees, and attorneys, and all other persons in active concert or participation
`with any of them, who receive actual notice of this Order, whether acting directly
`or indirectly, in connection with the manufacturing, labeling, advertising,
`promotion, offering for sale, sale, or distribution of any product or service are
`permanently restrained and enjoined from misrepresenting, expressly or by
`implication:
`A.
`
`That statements made by paid spokespersons are independent opinions
`by impartial experts; or
`That paid commercial advertising is an independent opinion of an
`objective source.
`
`B.
`
`
`VII. PROHIBITED MISREPRESENTATIONS: ENDORSEMENTS
`IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
`
`employees, and attorneys, and all other persons in active concert or participation
`with any of them, who receive actual notice of this Order, whether acting directly
`or indirectly, in connection with the manufacturing, labeling, advertising,
`promotion, offering for sale, sale, or distribution of any product or service are
`permanently restrained and enjoined from misrepresenting, expressly or by
`implication:
`A.
`
`That any reviewing entity is an independent organization or provides
`objective information about such product;
`That any review of such product reflects the opinion of an expert; or
`That such product is endorsed by an independent party.
`
`B.
`C.
`
`
`
`
`
`
`VIII. JUDGMENT FOR MONETARY RELIEF
`IT IS FURTHER ORDERED that:
`
`10
`
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 11 of 20 Page ID #:137
`
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`A.
`Judgment in the amount of Three Million, Two Hundred Forty-Seven
`Thousand, Seven Hundred and Thirty-Seven Dollars ($3,247,737) is entered in
`favor of the Commission against Individual Defendants and Corporate Defendant,
`jointly and severally, as monetary relief.
`B. Defendants are ordered to pay to the Commission Six Hundred Fifty
`Thousand Dollars ($650,000). Such payment must be made within 7 days of entry
`of this Order by electronic fund transfer in accordance with instructions previously
`provided by a representative of the Commission. Upon such payment, the
`remainder of the judgment is suspended, subject to the Subsections below.
`C.
`In the event Defendants fail to pay Six Hundred Fifty Thousand
`Dollars ($650,000) within seven (7) days of entry of this Order, Defendants shall
`be in default and the full amount of the judgment in Subsection A shall
`immediately become due, plus interest from the date of entry of this judgment
`pursuant to 28 U.S.C. § 1961, less any payment already made. Provided, however,
`that in the event of default, the judgment amount set forth in Subsection A above
`shall not become due if the Defendants cure such default within fourteen (14)
`calendar days.
`D.
`The Commission’s agreement to the suspension of part of the
`judgment is expressly premised upon the truthfulness, accuracy, and completeness
`of Defendants’ sworn financial statements and related documents (collectively,
`“financial representations”) submitted to the Commission, namely:
`1.
`the Financial Statements of Individual Defendant Kyle
`Armstrong signed on August 30, 2022, October 31, 2022, and
`January 4, 2023, including the attachments;
`the Financial Statement of Individual Defendant Kyle Dilger
`signed on August 30, 2022, including the attachments;
`the Financial Statement of Corporate Defendant Rejuvica LLC
`signed by Kyle Dilger, Chief Operating Officer, on August 31,
`
`2.
`
`3.
`
`11
`
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 12 of 20 Page ID #:138
`
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`4.
`
`5.
`
`2022, including the attachments;
`the additional documentation submitted by Defendants’ counsel
`to Commission counsel on September 13, 2022;
`the additional documentation submitted by Defendants’ counsel
`John Villafranco to Commission counsel Shira Modell and
`Courtney Estep on November 3, 2022; and
`the additional documentation submitted by Defendants’ counsel
`John Villafranco to Commission counsel Shira Modell and
`Courtney Estep on December 19, 2022.
`E.
`The suspension of the judgment will be lifted as to any Defendant if,
`upon motion by the Commission, the Court finds that Defendant failed to disclose
`any material asset, materially misstated the value of any asset, or made any other
`material misstatement or omission in the financial representations identified above.
`F.
`If the suspension of the judgment is lifted pursuant to Subsection E
`above, the judgment becomes immediately due as to that Defendant in the amount
`specified in Subsection A above (which the parties stipulate only for purposes of
`this Section VIII of this Order represents the consumer injury alleged in the
`Complaint), less any payment previously made pursuant to this Section, plus
`interest computed from the date of entry of this Order.
`
`
`6.
`
`
`
`IX. ADDITIONAL MONETARY PROVISIONS
`IT IS FURTHER ORDERED that:
`A. Defendants relinquish dominion and all legal and equitable right, title,
`and interest in all assets transferred pursuant to this Order and may not seek the
`return of any assets.
`B.
`The facts alleged in the Complaint will be taken as true, without
`further proof, in any subsequent civil litigation by or on behalf of the Commission,
`including in a proceeding to enforce its rights to any payment or monetary
`12
`
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 13 of 20 Page ID #:139
`
`
`
`judgment pursuant to this Order, such as a nondischargeability complaint in any
`bankruptcy case.
`C.
`The facts alleged in the Complaint establish all elements necessary to
`sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the
`Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral
`estoppel effect for such purposes.
`D. Defendants acknowledge that their Taxpayer Identification Numbers
`(Social Security Numbers or Employer Identification Numbers), which Defendants
`previously submitted to the Commission, may be used for collecting and reporting
`on any delinquent amount arising out of this Order, in accordance with 31 U.S.C.
`§7701.
`E. All money received by the Commission pursuant to this Order may be
`deposited into a fund administered by the Commission or its designee to be used
`for consumer relief, such as redress and any attendant expenses for the
`administration of any redress fund. If a representative of the Commission decides
`that direct redress to consumers is wholly or partially impracticable or money
`remains after such redress is completed, the Commission may apply any remaining
`money for such related relief (including consumer information remedies) as it
`determines to be reasonably related to Defendants’ practices alleged in the
`Complaint. Any money not used for relief is to be deposited to the U.S. Treasury.
`Defendants have no right to challenge any actions the Commission or its
`representatives may take pursuant to this Subsection.
`
`
`X. CUSTOMER INFORMATION
`IT IS FURTHER ORDERED that Defendants, Defendants’ officers, agents,
`
`employees, and attorneys, and all other persons in active concert or participation
`with any of them, who receive actual notice of this Order, are permanently
`restrained and enjoined from directly or indirectly:
`
`13
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 14 of 20 Page ID #:140
`
`
`
`
`A.
`failing to provide sufficient customer information to enable the
`Commission to efficiently administer consumer redress. If a representative of the
`Commission requests in writing any information related to redress, Defendants
`must provide the requested information they possess or control, in the form
`prescribed by the Commission, within 14 days.
`B.
`disclosing customer information, including the name, address,
`telephone number, email address, social security number, other identifying
`information, or any data that enables access to a customer’s account (including a
`credit card, bank account, or other financial account), that any Defendant obtained
`prior to entry of this Order in connection with sale of Sobrenix.
`Provided, however, that customer information need not be disposed of, and
`may be disclosed, to the extent requested by a government agency or required by
`law, regulation, or court order.
`
`
`XI. NOTICE TO PURCHASERS
`IT IS FURTHER ORDERED that within 30 days of entry of this Order,
`
`Defendants shall send by first class mail an exact copy of the notice attached as
`Attachment A, showing the date of mailing, to any consumer for whom Defendants
`have provided information to the Commission pursuant to Section X of this Order.
`
`
`XII. ORDER ACKNOWLEDGMENTS
`IT IS FURTHER ORDERED that Defendants obtain acknowledgments of
`
`receipt of this Order:
`A.
`Each Defendant, within 7 days of entry of this Order, must submit to
`the Commission an acknowledgment of receipt of this Order sworn under penalty
`of perjury.
`
`14
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 15 of 20 Page ID #:141
`
`
`
`
`B.
`For 5 years after entry of this Order, each Individual Defendant for
`any business that such Defendant, individually or collectively with any other
`Defendants, is the majority owner of or controls directly or indirectly, and each
`Corporate Defendant, must deliver a copy of this Order to: (1) all principals,
`officers, directors, and LLC managers and members; (2) all employees having
`managerial responsibilities for conduct related to the subject matter of the Order
`and all agents and representatives who participate in the advertising or promotion
`of a Covered Product; and (3) any business entity resulting from any change in
`structure as set forth in the Section titled Compliance Reporting. Delivery must
`occur within 7 days of entry of this Order for current personnel. For all others,
`delivery must occur before they assume their responsibilities.
`C.
`From each individual or entity to which a Defendant delivered a copy
`of this Order, that Defendant must obtain, within 30 days, a signed and dated
`acknowledgment of receipt of this Order.
`
`
`XIII. COMPLIANCE REPORTING
`IT IS FURTHER ORDERED that Defendants make timely submissions to
`
`the Commission:
`A. One year after entry of this Order, each Defendant must submit a
`compliance report, sworn under penalty of perjury:
`1.
`Each Defendant must: (a) identify the primary physical, postal,
`and email address and telephone number, as designated points of contact,
`which representatives of the Commission may use to communicate with
`Defendant; (b) identify all of that Defendant’s businesses by all of their
`names, telephone numbers, and physical, postal, email, and Internet
`addresses; (c) describe the activities of each business, including the goods
`and services offered, the means of advertising, marketing, and sales, and the
`involvement of any other Defendant (which Individual Defendants must
`
`15
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 16 of 20 Page ID #:142
`
`
`
`
`describe if they know or should know due to their own involvement); (d)
`describe in detail whether and how that Defendant is in compliance with
`each Section of this Order; and (e) provide a copy of each Order
`Acknowledgment obtained pursuant to this Order, unless previously
`submitted to the Commission.
`2.
`Additionally, each Individual Defendant must: (a) identify all
`telephone numbers and all physical, postal, email and Internet addresses,
`including all residences; (b) identify all business activities, including any
`business for which such Defendant performs services whether as an
`employee or otherwise and any entity in which such Defendant has any
`ownership interest; and (c) describe in detail such Defendant’s involvement
`in each such business, including title, role, responsibilities, participation,
`authority, control, and any ownership.
`B.
`For 20 years after entry of this Order, each Defendant must submit a
`compliance notice, sworn under penalty of perjury, within 14 days of any change
`in the following:
`1.
`Each Defendant must report any change in: (a) any designated
`point of contact; or (b) the structure of any Corporate Defendant or any
`entity that Defendant has any ownership interest in or controls directly or
`indirectly that may affect compliance obligations arising under this Order,
`including: creation, merger, sale, or dissolution of the entity or any
`subsidiary, parent, or affiliate that engages in any acts or practices subject to
`this Order.
`2.
`Additionally, each Individual Defendant must report any
`change in: (a) name, including aliases or fictitious name, or residence
`address; or (b) title or role in any business activity, including any business
`for which such Defendant performs services whether as an employee or
`otherwise and any entity in which such Defendant has any ownership
`
`16
`
`
`
` 1
` 2
` 3
` 4
` 5
` 6
` 7
` 8
` 9
` 10
` 11
` 12
` 13
` 14
` 15
` 16
` 17
` 18
` 19
` 20
` 21
` 22
` 23
` 24
` 25
` 26
` 27
` 28
`
`
`

`

`Case 8:23-cv-01286-CJC-JDE Document 16 Filed 07/20/23 Page 17 of 20 Page ID #:143
`
`
`
`
`interest, and identify the name, physical address, and any Internet address of
`the business or entity.
`C.
`Each Defendant must submit to the Commission notice of the filing of
`any bankruptcy petition, insolvency proceeding, or similar proceeding by or
`against such Defendant within 14 days of its filing.
`D. Any submission to the Commission required by this Order to be
`sworn under penalty of perjury must be true and accurate and comply with 28
`U.S.C. § 1746, such as by concluding: “I declare under penalty of perjury under
`the laws of the United States of America that the foregoing is true and correct.
`Executed on: _____” and supplying the date, signatory’s full name, title (if
`applicable), and signature.
`E.
`Unless otherwise directed by a Commission representative in writing,
`all submissions to the Commission pursuant to this Order must be emailed to
`DEbrief@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to:
`A