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`COMMISSIONERS:
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`and
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`UNITED STATES OF AMERICA
`BEFORE THE FEDERAL TRADE COMMISSION
`
`Joseph J. Simons, Chairman
`Noah Joshua Phillips
`Rohit Chopra
`Rebecca Kelly Slaughter
`Christine S. Wilson
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`________________________________________________
`
`In the Matter of
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`BIONATROL HEALTH, LLC, a corporation,
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`ISLE REVIVE, LLC, also d/b/a ISLE REVIVE CBD,
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`a corporation,
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`MARCELO TORRE, individually and as an owner
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`and manager of BIONATROL HEALTH, LLC
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`and ISLE REVIVE, LLC,
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`ANTHONY MCCABE.
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`________________________________________________
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`
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`202-3114
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`DOCKET NO.
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`COMPLAINT
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`The Federal Trade Commission, having reason to believe that Bionatrol Health, LLC, a
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`corporation, Isle Revive, LLC, also d/b/a Isle Revive CBD, a corporation, Marcelo Torre,
`individually and as an owner and manager of Bionatrol Health, LLC and Isle Revive, LLC, and
`Anthony McCabe (collectively, “Respondents”), have violated the provisions of the Federal
`Trade Commission Act, and it appearing to the Commission that this proceeding is in the public
`interest, alleges:
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`Respondent Bionatrol Health, LLC (“Bionatrol”) is a Utah corporation with its principal
`1.
`place of business at 1269 W. Spencer Rd., Pleasant Grove, Utah 84062. Bionatrol’s business
`registration with the State of Utah expired on May 14, 2020.
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`Respondent Isle Revive, LLC (“Isle Revive”), also doing business as Isle Revive CBD,
`2.
`is a Utah corporation with its principal place of business at 1269 W. Spencer Rd., Pleasant
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`1
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`Grove, Utah 84062. The company’s business registration status with the State of Utah is in a
`delinquent status. Isle Revive processed payments from consumers who purchased CBD
`products from Bionatrol and, as recently as April 2020, offered Bionatrol Full-Spectrum CBD
`Oil Extract for sale at www.islerevivecbd.com.
`
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`Respondent Marcelo Torre has managed Bionatrol and serves as the company’s
`3.
`registered agent. Torre also has owned and managed Isle Revive. Individually or in concert with
`others, he controlled or had the authority to control, or participated in the acts and practices
`alleged in this complaint. Torre resides in Salt Lake City, Utah.
`
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`Respondent Anthony McCabe was the manager and owner of Bionatrol. He also
`4.
`managed and owned part or all of Isle Revive. Individually or in concert with others, he
`controlled or had the authority to control, or participated in the acts and practices alleged in this
`complaint. McCabe resides in San Diego, California.
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`Respondents Bionatrol and Isle Revive (collectively, “Corporate Respondents”) have
`5.
`operated as a common enterprise while engaging in the unlawful acts and practices alleged
`below. Corporate Respondents have conducted the business practices described below through
`an interrelated network of companies that have common ownership, officers, business functions,
`business and mailing addresses, and unified advertising and marketing. Because these Corporate
`Respondents have operated as a common enterprise, each of them is jointly and severally liable
`for the acts and practices alleged below. Respondents Torre and McCabe formulated, directed,
`controlled, had the authority to control, or participated in the acts and practices of the common
`enterprise alleged in this Complaint.
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`The acts and practices of Respondents alleged in this complaint have been in or affecting
`6.
`commerce, as “commerce” is defined in Section 4 of the Federal Trade Commission Act.
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`Respondents’ Marketing of CBD Products
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`Cannabidiol (“CBD”) is a substance naturally occurring in, and that can be extracted
`7.
`from, the hemp plant, cannabis sativa. Respondents advertised, promoted, offered for sale, sold,
`and distributed products containing CBD (“CBD Products”) that are intended for human use.
`These CBD Products are “food” and/or “drugs,” within the meaning of Sections 12 and 15 of the
`Federal Trade Commission Act.
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`Through the website bionatrolcbd.com, Respondents sold Full-Spectrum CBD Oil
`8.
`Extract in bundles of one, three, and five bottles for, respectively, $64.99 (plus $7.95 shipping),
`$149.97, and $199.95. During the ordering process, the website offered “upsells” for, among
`other things, one bottle of Full-Spectrum CBD Oil Extract Sleep Aid capsules at a cost of $49.99
`and one bottle of Full-Spectrum CBD Gummies at a cost of $54.95.
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`From approximately December 2019 through April 2020, Respondents disseminated or
`9.
`caused to be disseminated advertisements for CBD Products, including but not necessarily
`limited to the attached Exhibits A through C. Respondents promoted CBD Products through a
`variety of means, including through their websites bionatrolcbd.com and islerevivecbd.com and
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`2
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`an Instagram account at www.instagram.com/bionatrol_cbd. These advertisements contained the
`following statements and depictions:
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`[Ex. A (excerpt from www.bionatrolcbd.com) (captured Jan. 14, 2020)]
`# # #
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`[Ex. A (excerpt from www.bionatrolcbd.com) (captured Jan. 14, 2020)]
`# # #
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`3
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`THE SCIENCE OF
`CBD (CANNABIDOIL) [sic]
`The endocannabinoid system (ECS) regulates everything from relaxation to
`eating, sleeping, inflammation and even cognitive function…. CBD Oil has been
`medically proven to positively regulate your ECS addressing issues such as
`anxiety, insomnia, chronic pain, hypertension and even cardiovascular
`issues.
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` •
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` Physical Benefits: Stimulates an anti-inflammatory response which helps
`reduce all forms of chronic aches and pains. . . .
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`• Psychological Benefits: Helps positively regulate mood patterns which help
`reduce anxiety and stress. It also promotes better sleep cycles and in some
`cases may offer a safe remedy for depression and bipolar disorders.
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` •
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` Neurological Benefits: Our CBD Oil’s positive impact on the neural system
`helps reduce age-related cognitive decline. It also helps support focus,
`alertness & memory recall while reducing the frequency of migraines and
`headaches.
`[Ex. A (excerpt from www.bionatrolcbd.com) (captured Jan. 14, 2020)]
`# # #
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`[Ex. B (excerpt from www.bionatrolcbd.com, identified by Respondents as BIO00018)]
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`# # #
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`[Ex. C (partial screen grab from recording of purchase at www.bionatrolcbd.com on Jan.
`23, 2020, time index 0:14)]
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`Respondents have not conducted any studies demonstrating that their CBD products cure,
`10.
`treat, alleviate, or prevent diseases or health conditions. There are no competent and reliable
`human clinical studies in the scientific literature to substantiate that these products or their
`ingredients cure, treat, mitigate, or prevent the diseases or health conditions mentioned in the
`advertising excerpts set forth in Paragraph 9
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`Consumers who visited www.bionatrolcbd.com saw a webpage, a portion of which is
`11.
`depicted below, with the statements “Get My Free Bottle!” and “STEP 1 – TELL US WHERE
`TO SEND YOUR BOTTLE,” and a request for the consumers’ contact information.
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`[Ex. C (partial screen grab from recording of purchase at www.bionatrolcbd.com on Jan.
`23, 2020, time index 0:01)]
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`5
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`After inputting the contact information and clicking the “Rush My Order” button for the
`12.
`free bottle of CBD oil, consumers were presented with a screen, a portion of which is depicted
`below, that stated, “APPROVED! Free Bottle Packages Confirmed” and presented three
`purchase options: “BUY 1 BOTTLE” for $64.99 plus $7.95 shipping, “BUY 2 + GET 1 FREE”
`for $149.97 and free shipping, or “BUY 3 + GET 2 FREE” for $199.95 and free shipping. The
`radial button next to the BUY 1 BOTTLE offer was prechecked, and consumers could not
`uncheck it. To advance the order, consumers had to input their name, address, and credit card
`information. A disclosure above the information fields stated, “You will see a charge on your
`credit card from Bionatrol….”
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`[Ex. C (partial screen grab from recording of purchase at www.bionatrolcbd.com on Jan.
`23, 2020, time index 3:27-31 and 4:00-03)]
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`6
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`Clicking the “RUSH MY ORDER” button took consumers through a series of “upsell”
`13.
`offers for other products before they were presented with an order confirmation screen. That
`screen, a portion of which is depicted below, showed an image of a single bottle of CBD oil and
`provided no information about the quantity of bottles ordered or the amount, if any, charged to
`the consumers’ credit card.
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`[Ex. C (partial screen grab from recording of purchase at www.bionatrolcbd.com on Jan.
`23, 2020, time index 5:50)]
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`Upon completion of the ordering process for a single bottle, Respondents emailed
`14.
`consumers a purchase confirmation. The email memorialized the purchase of the “Bionatrol
`CBD Oil 3+2 Package” and indicated that Bionatrol had charged $199.95 to the consumer’s
`credit card. In at least one instance, the name listed on the credit card billing statement was “Isle
`Revive CBD.”
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`Count I
`False or Unsubstantiated Efficacy Claims
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`In connection with the advertising, promotion, offering for sale, sale, or distribution of
`15.
`CBD Products, including through the means described in Paragraph 9 of this Complaint,
`Respondents have represented, directly or indirectly, expressly or by implication, that CBD
`Products:
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`A. treat, alleviate, or cure age-related cognitive decline; bipolar disorder; chronic pain,
`including arthritis pain; depression; heart disease; hypertension; and migraines;
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`B. prevent age-related cognitive decline; chronic pain, including arthritis pain; heart
`disease; hypertension; and migraines;
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`C. can replace the need for prescription painkillers like oxycontin; and
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`D. are safe for all consumers.
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`The representations set forth in Paragraph 15 are false or misleading, or were not
`16.
`substantiated at the time the representations were made.
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`Count II
`False Establishment Claims
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`In connection with the advertising, promotion, offering for sale, sale, or distribution of
`17.
`CBD Products, including through the means described in Paragraph 9 of this Complaint,
`Respondents have represented, directly or indirectly, expressly or by implication, that studies or
`scientific research prove that CBD Products:
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`A. improve alertness, focus, and memory recall;
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`B. treat, alleviate, or cure age-related cognitive decline; anxiety; bipolar disorder;
`chronic pain, including arthritis pain; depression; heart disease; hypertension;
`inflammation; insomnia; and migraines; and
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`C. prevent age-related cognitive decline; anxiety; chronic pain, including arthritis pain;
`heart disease; hypertension; inflammation; insomnia; and migraines.
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`In fact, studies or scientific research do not prove that CBD Products:
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`18.
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`A. improve alertness, focus, and memory recall;
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`B. treat, alleviate, or cure age-related cognitive decline; anxiety; bipolar disorder;
`chronic pain, including arthritis pain; depression; heart disease; hypertension;
`inflammation; insomnia; and migraines; and
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`C. prevent age-related cognitive decline; anxiety; chronic pain, including arthritis pain;
`heart disease; hypertension; inflammation; insomnia; and migraines.
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`Therefore, the representations set forth in Paragraph 17 are false or misleading.
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`Count III
`Deceptive Pricing
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`In connection with the advertising, promotion, offering for sale, sale, or distribution of
`19.
`CBD products, including through the means described in Paragraphs 11-14 of this Complaint,
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`Respondents represented, directly or indirectly, expressly or by implication, that they would send
`consumers one bottle of Full-Spectrum CBD Oil Extract for $64.99 plus $7.95 shipping.
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`In fact, consumers who ordered one bottle of Full-Spectrum CBD Oil Extract were
`20.
`charged $199.95 and sent five bottles. Therefore, the representations set forth in Paragraph 19,
`above, are false or misleading.
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`Count IV
`Unfairly Charging Consumers without Authorization
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`In connection with the advertising, marketing, promotion, offering for sale, or sale of
`21.
`CBD products, including through the means described in Paragraphs 11-14 of this Complaint,
`Respondents have caused charges to be submitted for payment to the credit cards of consumers
`without the express informed consent of those consumers.
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`Respondents’ actions caused or were likely to cause substantial injury to consumers that
`22.
`consumers could not reasonably avoid themselves and that was not outweighed by countervailing
`benefits to consumers or competition. Therefore, Respondents’ practices as described in
`Paragraph 21, above, constitute unfair acts or practices.
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`Violations of Sections 5 and 12
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`The acts and practices of Respondents as alleged in this complaint constitute unfair or
`23.
`deceptive acts or practices, and the making of false advertisements, in or affecting commerce in
`violation of Sections 5(a) and 12 of the Federal Trade Commission Act.
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`THEREFORE, the Federal Trade Commission this _______ day of _______, 20__, has
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`issued this Complaint against Respondents.
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`SEAL:
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`By the Commission.
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`April J. Tabor
`Acting Secretary
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`9
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