`
`UNITED STATES DISTRICT COURT
`MIDDLE DISTRICT OF FLORIDA
`
`FEDERAL TRADE COMMISSION,
`
`Case No. 8:20-cv-518
`
`
`
`
`
`Plaintiff,
`
`v.
`
`COMPLAINT FOR PERMANENT
`INJUNCTION AND OTHER
`EQUITABLE RELIEF
`
`TEAMI, LLC, a limited liability company,
`
`ADI HALEVY, a/k/a Adi Arezzini, individually
`and as an officer of TEAMI, LLC, and
`
`YOGEV MALUL, individually and as an officer
`of TEAMI, LLC,
`
`
`
`Defendants.
`
`Plaintiff, the Federal Trade Commission (“FTC”), for its Complaint alleges:
`
`1.
`
`The FTC brings this action under Section 13(b) of the Federal Trade Commission
`
`Act (“FTC Act”), 15 U.S.C. § 53(b), to obtain permanent injunctive relief, rescission or
`
`reformation of contracts, restitution, the refund of monies paid, disgorgement of ill-gotten
`
`monies, and other equitable relief for Defendants’ acts or practices in violation of Sections 5(a)
`
`and 12 of the FTC Act, 15 U.S.C. §§ 45(a), 52, in connection with the labeling, advertising,
`
`marketing, distribution, and sale of numerous Teami brand tea products that purportedly provide
`
`various health benefits and Teami brand tea-based skincare products.
`
`JURISDICTION AND VENUE
`
`2.
`
`This Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1337(a),
`
`and 1345.
`
`1
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 2 of 19 PageID 2
`
`3.
`
`Venue is proper in this District under 28 U.S.C. § 1391(b)(1), (b)(2), (c)(1),
`
`(c)(2), and (d), and 15 U.S.C. § 53(b).
`
`PLAINTIFF
`
`4.
`
`The FTC is an independent agency of the United States Government created by
`
`statute. 15 U.S.C. §§ 41-58. The FTC enforces Section 5(a) of the FTC Act, 15 U.S.C. § 45(a),
`
`which prohibits unfair or deceptive acts or practices in or affecting commerce. The FTC also
`
`enforces Section 12 of the FTC Act, 15 U.S.C. § 52, which prohibits false advertisements for
`
`food, drugs, devices, services, or cosmetics in or affecting commerce.
`
`5.
`
`The FTC is authorized to initiate federal district court proceedings, by its own
`
`attorneys, to enjoin violations of the FTC Act and to secure such equitable relief as may be
`
`appropriate in each case, including rescission or reformation of contracts, restitution, the refund
`
`of monies paid, and the disgorgement of ill-gotten monies. 15 U.S.C. § 53(b).
`
`DEFENDANTS
`
`6.
`
`Defendant Teami, LLC (“Teami”) is a Florida limited liability company with its
`
`principal place of business at 10801 Endeavor Way, Suite A, Seminole, Florida 33777. Teami
`
`transacts or has transacted business in this District and throughout the United States.
`
`7.
`
`At all times material to this Complaint, acting alone or in concert with others,
`
`Teami has advertised, marketed, distributed, or sold Teami teas and skincare products to
`
`consumers throughout the United States.
`
`8.
`
`Defendant Adi Halevy (“Halevy”), also known as Adi Arezzini, is the Chief
`
`Executive Officer, a co-founder, and a fifty percent owner of Teami. At all times material to this
`
`Complaint, acting alone or in concert with others, she has formulated, directed, controlled, had
`
`2
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 3 of 19 PageID 3
`
`
`the authority to control, or participated in the acts and practices of Teami, including the acts and
`
`practices set forth in this Complaint. She is responsible for Teami product branding,
`
`copywriting, and the approval of each product page on Defendants’ website,
`
`www.teamiblends.com (the “Teami website”). Defendant Halevy has appeared in Teami product
`
`advertising. She also personally evaluates the ingredients that compose each of Teami’s
`
`products to determine what benefits each ingredient has alone or in conjunction with other
`
`ingredients, reviews literature related to each ingredient, and creates samples of each product,
`
`which she tests herself for taste and efficacy. In addition, Defendant Halevy is responsible for
`
`the development and approval of Teami’s social media policy, disseminating the social media
`
`policy throughout the company, and providing instructions to staff on its implementation.
`
`Defendant Halevy resides in this District and, in connection with the matters alleged herein,
`
`transacts or has transacted business in this District and throughout the United States.
`
`9.
`
`Defendant Yogev Malul (“Malul”) is the Creative Director, a co-founder, and a
`
`fifty percent owner of Teami. At all times material to this Complaint, acting alone or in concert
`
`with others, he has formulated, directed, controlled, had the authority to control, or participated
`
`in the acts and practices of Teami, including the acts and practices set forth in this Complaint.
`
`He is responsible for the development and selection of each product Teami offers, as well as the
`
`Teami website and graphic design of each product page. He also personally evaluates the
`
`ingredients that compose each of Teami’s products to determine what benefits each ingredient
`
`has alone or in conjunction with other ingredients, reviews literature related to each ingredient,
`
`and creates samples of each product, which he tests himself for taste and efficacy. Defendant
`
`
`
`3
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 4 of 19 PageID 4
`
`Malul resides in this District and, in connection with the matters alleged herein, transacts or has
`
`transacted business in this District and throughout the United States.
`
`COMMERCE
`
`10.
`
`At all times material to this Complaint, Defendants have maintained a substantial
`
`course of trade in or affecting commerce, as “commerce” is defined in Section 4 of the FTC Act,
`
`15 U.S.C. § 44.
`
`DEFENDANTS’ BUSINESS ACTIVITIES
`
`11.
`
`Since 2014, Defendants have advertised, offered for sale, sold, and distributed
`
`Teami tea products. These include Teami Profit tea, Teami Alive tea, Teami Relax tea, Teami
`
`Skinny tea, and Teami Colon tea. Teami Skinny tea and Teami Colon tea are sold together in a
`
`bundle called the Teami 30 Day Detox Pack. Defendants have also advertised, offered for sale,
`
`sold, and distributed Teami skincare products including the Teami Green Tea Blend Detox Mask
`
`and Teami Soothe Tea Infused Facial Oil. In addition to advertising Teami products on the
`
`Teami website, Defendants have paid celebrities, including Kylie Jenner and Demi Lovato, and
`
`other influencers to promote them on Instagram and other social media.
`
`12.
`
`Teami Profit tea contains green tea, peppermint leaf, goji berries, red dates,
`
`roselle, nettle leaf, and lingzhi ganoderma. Teami Alive tea contains green tea, lemongrass,
`
`honey, and ginger. Teami Relax tea contains peppermint, yarrow, lemongrass, lavender flower,
`
`chamomile, orange peel, and valerian root. Teami Skinny tea contains oolong tea, yerba mate,
`
`lotus leaf, lime leaf extract, ginger root, rhubarb root, and jiao gulam. Teami Colon tea contains
`
`sienna leaf and root, hawthorn berry extract, lotus leaf, lime leaf and extract, psyllium husk seed,
`
`phaseolus calcaratus seed, rhubarb root, poria cocos stem bark, and valerian root.
`
`4
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 5 of 19 PageID 5
`
`13.
`
`Defendants sell their Teami teas and skincare products on the Teami website. On
`
`the website, packages of Teami Profit tea, which contain thirteen servings, cost $29.99; packages
`
`of Teami Alive tea, which contain fifteen tea bags, cost $19.99; packages of Teami Relax, which
`
`contain thirteen servings, cost $29.99; Teami 30 Day Detox Packs cost $49.99; jars of Teami
`
`Green Tea Blend Detox Mask cost $29.99; and bottles of Teami Soothe Tea Infused Facial Oil
`
`cost $39.99. Defendants sell most of their Teami teas and skincare products on
`
`www.amazon.com. Selected Teami products are also available at retailers nationwide, including
`
`Vitamin World and Ulta Beauty.
`
`14.
`
`Defendants disseminate or cause to be disseminated advertisements for Teami
`
`Profit tea, Teami Alive tea, Teami Relax tea, and the Teami 30 Day Detox Pack. Advertisements
`
`for Teami products include, but are not necessarily limited to, the attached Exhibits 1 through 14.
`
`These materials contain the following statements and depictions, among others:
`
`A. Teami Profit Tea
`
`1. Excerpts from the Teami Profit product page of the Teami website;
`captured on November 6, 2018
`
`Teami Profit
`DESCRIPTION
`
`Your body is your temple and deserves to profit from all that nature has to offer.
`Natural tea allows the body to rejuvenate from the inside out, gaining a strong
`internal foundation. For centuries, tea has been used in alternative medicine to
`treat everything from cancer to constipation. The human body needs to have all
`the necessary vitamins and minerals in order to protect itself from infection
`and illness.
`
`The ingredients in Teami Profit have been shown to:
`.…
`
`
`Fights [sic] against cancerous cells
`
`(Exhibit 1, portion of Teami Profit product page on the Teami website).
`5
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 6 of 19 PageID 6
`
`
`
`
`
`
`
`
`
`2. Excerpts from the 30~7 Best Detox product page of the Teami website;
`captured on November 6, 2018
`
`
`The ingredients in Teami Profit have been shown to:
`….
`
` Helps [sic] unclog arteries …
`
`
`(Exhibit 2, portion of Teami 30~7 Best Detox Plan page on the Teami website).
`
`B. Teami Alive Tea
`
`Excerpts from the Teami Alive product page of the Teami website;
`captured on November 6, 2018
`
`
`Teami Alive
`DESCRIPTION
`
`Have you ever found yourself feeling “dead”, with zero energy to get motivated in
`your day to day life? Do you get sick on and off, not finding a permanent solution
`to your physical issues?
`....
`Teami Alive was developed with 3 main ingredients to directly target your bodily
`issues, and solve them! The unique and delicious combination of Ginger Honey -
`Lemongrass - Green Tea can help with:
`The ingredients in Teami Alive have been shown to:
`.…
`
`
`Decreasing [sic] Migraines
`
`(Exhibit 3, portion of Teami Alive product page on the Teami website).
`
`
`C. Teami Relax Tea
`
`Excerpts from the Teami Relax page of the Teami website; captured on
`November 6, 2018
`
`Teami Relax
`DESCRIPTION
`....
`Teami Relax contains potassium, calcium and vitamin B which strengthen the
`immune system, prevent colds, flus and a variety of other illnesses.
`
`6
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 7 of 19 PageID 7
`
`
`
`
`
`
`
`.…
`The ingredients in Teami Relax have been shown to:
`.…
` Antibacterial effects can help prevent and treat colds
`
`(Exhibit 4, portion of Teami Relax product page on the Teami website).
`
`D. Teami 30 Day Detox Pack
`
`1. Excerpt from the Teami Detox 30 Day Pack product page of the Teami
`website; captured on November 6, 2018
`
`Teami Detox 30 Days Pack
`DESCRIPTION
`
`If you are looking for an amazing detox tea that you can incorporate into your daily
`routine, this is the one for you! The Teami 30 Day Detox Tea will help you
`feel better from the inside out! Getting rid of the toxins that your body is holding
`on to will allow it to function properly, burn the correct amount of calories and
`have natural energy levels every day!
`
`Our Teami 30 Day Detox Pack includes:
` 30 day supply of our Skinny loose-leaf tea
` 15 colon cleanse tea bags
`
`
`
`The ingredients in our 30 Day Detox Program have been show [sic] to:
` Boost your metabolism
` Start burning stored fat
`
`
`(Exhibit 5, portion of Teami Detox 30 Day Pack page on the Teami website).
`
`
`2. Excerpts from video of Defendant Halevy appearing on the Detox 30 Day
`Pack product page of the Teami website; captured on December 13, 2018
`
`Our 30 Day Detox program is made up of two teas, our Teami Skinny which you drink
`every single day before breakfast, best recommended time, and our Teami Colon which
`you drink every other night before bed.
`
`The reason why people need to detox is because of the insane amount of processed foods
`that you’re either eating right now or have eaten in the past and believe me I’ve had a lot
`of pizza in my life so I needed to detox. What it does is it puts in nutrients and vitamins
`in the body.
`
`
`7
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 8 of 19 PageID 8
`
`
`
`
`
`
`
`
`
`With the Teami Skinny that you drink every single day and then at night time with the
`Teami Colon, you’re actually getting rid of the toxins that are holding your body back
`from being able to digest food properly, from having low metabolism, from having really,
`really sluggish energy throughout the day and by doing this program, all you have to do
`is drink tea and you’ll start seeing results right away.
`
`Our 30 Day Detox comes with this little cute calendar. On the inside it actually gives you
`tips. Over here you actually have a little calendar that reminds you in the morning to
`drink your Teami Skinny and in the night to drink your Teami Colon. And then we
`definitely want to make sure that you take before and after pictures because we love to
`share your successes and to share your Teami transformations.
`
`Here are some frequently asked questions about our 30 Day Detox. How much weight
`will I lose when I’m doing the 30 day detox? Great question. The first thing to know is
`that everyone’s different. Everybody has a different amount of weight that they need to
`lose. So not everybody is the same, but the usual average is five to twenty pounds every
`time you do the detox.
`
`(Exhibit 6).
`
`3. Excerpt from the Weight Loss page of the Teami website; captured on
`November 6, 2018
`
`Teami Tea Detox for Weight Loss
`
`All what [sic] You Need to Know about Detox Tea
`
`If you [sic] goal is to lose weight quickly, without using
`any chemicals, 100% natural and safe diet, Reduce
`bloating, burning stored fat and cleaning your body
`from inside outside, you are definitely at the right
`
`place.
`
`
`
`
`
`
`…
`
`
`
`
`
`
`
`Grean [sic] Tea … has been shown to increase fat
`
`burning and boost the metabolic rate.
`
`
`
`…
`
`What are the detox tea benefits ?
`
`teami
`DETOX
`30 DAYS PACK
`[pictures of Teami Skinny
`and Teami Colon and their
`Nutrition Facts panels]
`[pull down menu and button
`to add one or more packs to
`cart for $49.99 each]
`
`
`
`Using detox tea for weight loss makes a lot of sense, especially in a world where so many
`diets relies [sic] on weight loss unhealthy diet pills and diet shakes.
`
`There are lots of benefits using a detox Teas [sic] as your method for losing weight. …
`
`8
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 9 of 19 PageID 9
`
`
`We have selected some of the benefits you can expect to receive when you use detox tea
`as part of your weight loss strategy
`
`
`
` Boost your metabolism
` Start burning stored fat
` Suppress appetite and cravings
` Naturally raise energy levels
`…
`
`How to lose weight with detox tea ?
`
`Did also You tried [sic] different weight loss methods, but without any result? Moving
`forward from one diet to another without reaching your goals might be Frustrating!
`
`When our body is full of toxins, it is difficult to losing [sic] weight. While detoxifying
`your body get rid of those toxins and results [sic] of weight loss are unbelievable.
`
` …
`
` Detox teas contain specific blends of natural ingredients which flush these toxins and
`chemicals we are consuming out of our vital organs. Those herbs are extremely effective
`for reducing …, body fat, … and help our body losing [sic] weight.
`…
`
`How to Detox your Body with Tea ? How to Use Daily Detox Tea for Weight Loss ?
`
`For best slimming results we are highly recommending using our 30 Days detox Pack.
`
`The Teami Detox diet plan includes:
` 30 day supply of our Skinny loose-leaf tea
` 15 colon cleanse tea bags
`
`
`TeaMi [sic] Detox will completely change how your body looks and feels in just 30
`days!
`
`(Exhibit 7, portion of Weight Loss page on the Teami website).
`
`4. Excerpt from the Colon Cleanse page of the Teami website; captured on
`November 6, 2018
`
`Colon Cleanse Weight Loss Results
`
`Colon Cleansing has quickly become one of the Top Trends all over the world and this is
`why.
`
`
`9
`
`
`
`
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 10 of 19 PageID 10
`
`Have you ever started a [sic] dieting, exercising and living a healthier lifestyle but STILL
`don’t see results in your weight?? One of the best health benefits of colon cleansing is
`seeing rapid weight loss that occurs naturally. The toxins in the body that prevent you
`from losing weight easily are now removed by the detox tea and your body can
`FINALLY lose weight on its’ [sic] own!
`
`Most people that do cleansing programs or detox tea programs do not change their
`exercise or diet habits during the program, but see unbelievable results. Below are some
`Before & After Testimonials from regular people that decided to do a colon cleanse:
`
`[before and after pictures]
`
`(Exhibit 8, portion of Colon Cleanse page on Teami website).
`
`5. Excerpt from September 5, 2018 Instagram post from the official Teami
`account, which has one million Instagram followers
`
`[Before and after photos appearing
`to depict dramatic weight loss]
`
`teamiblends We’re shouting out our girl
`@qb.love for her amazing
`#TeamiTransformation ☕🍃! She’s down
`TWENTY pounds from doing our 30 Day
`Detox and continues to use it to maintain
`her weight loss!
`
` (Exhibit 9).
`
`6. Excerpts from May 7, 2018 Instagram post by Kathlyn Celeste, a lifestyle,
`family, beauty, and fashion influencer with 187,000 Instagram followers
`
`kathlynceleste …
`I made a commitment to myself to stick to
`my @teamiblends Detox program everyday
`for the entire month of May! Every time I’m
`consistent with it, I lose at least 8 LBS.
`
`(Exhibit 10).
`
`7. Excerpt from August 15, 2018 Instagram post by Patti Stanger, a reality
`television personality with 920,000 Instagram followers
`
`pattistanger As I’ve gotten older (and
`much wiser 😉), staying in shape isn’t as
`easy. I love my body, but everyone has
`
`10
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 11 of 19 PageID 11
`
`problem areas they want to work on. I did
`some research on the @teamiblends 30
`day detox and decided to give it a try,
`because nothing else I’ve used throughout
`the years really worked. I’m two weeks into
`this detox and I can’t believe I’m saying this
`but I’ve already lost 8 pounds!
`
`(Exhibit 11).
`
`8. Excerpt from June 5, 2018 Instagram post by Brittanie Evans, a beauty
`influencer with 505,000 Instagram followers
`
`brittanie_evans My summer body is not
`exactly where I said it would be in
`Fall...whoops😅. Luckily, I started up my
`@teamiblends 30 day detox again to help
`me jumpstart losing a few pounds for
`summer. This detox is my all time
`FAVE...especially because I see a difference
`within like 3 days, and mostly in my tummy
`area. I take it everywhere with me which
`makes it super easy and practical for days
`where I’m crazy busy! I’ve been drinking it
`now for a week and I’ve already lost about
`3 pounds...insane.
`
`(Exhibit 12).
`
`9. Excerpts from June 20, 2018 Instagram post by Rasheeda Buckner, a
`rapper, television personality, and fashion designer with 8.4 million
`Instagram followers
`
`rasheedadabosschick …
`@teamiblends 30 day detox is where it’s at
`for kickstarting weight loss. I’ve only been
`drinking this detox now for a week and
`already lost over 5 pounds and my bloating
`is gone. Paired with my 21 day
`transformation, I’m feeling amazing and I
`want you guys to do this detox with me to
`get right for summer! Trust me, I’ve tried
`other products like this and wasted my
`money and time, this is the real deal.
`
`11
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 12 of 19 PageID 12
`
`
`
`
`
`
`(Exhibit 13).
`
`
`10. Excerpt from an October 8, 2018 Instagram post by Molly Hopkins, a
`reality television personality with 161,000 Instagram followers
`
`liviraebras1 Since becoming a
`#teamipartner, I can’t shut up about this
`tea !! Any chance I get to tell people about
`it, I talk their ear off. I’m honestly addicted,
`I have it on an automatic renewal😂 I’ve
`lost almost 40 freaking pounds with
`@teamiblends 30 day detox ....and this was
`before I was committed to working out and
`eating healthier ! I used to struggle with
`different weightloss techniques and
`nothing ever seemed to work for my body.
`I was so bloated after I ate, I was sluggish
`and believe me, I really tried everything.
`Obviously, I’m a little more health
`conscious now, but seems like the only
`thing that I see REAL results with.
`
` (Exhibit 14).
`
`15.
`
`From 2014 through mid-2019, sales of Teami Profit tea, Teami Alive tea, Teami
`
`Relax tea, and the Teami 30 Day Detox Pack exceeded $15.2 million.
`
`16.
`
`In April 2018, FTC staff wrote to Defendants regarding several Teami product
`
`endorsements on Instagram by influencers. FTC staff informed Defendants that any material
`
`connections to any endorsers, such as monetary payments, should be clearly and conspicuously
`
`disclosed in their endorsements; that to make a disclosure both “clear” and “conspicuous,”
`
`endorsers should use unambiguous language and consumers should be able to notice the
`
`disclosure easily without having to look for it; and that because consumers viewing posts in their
`
`
`
`12
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 13 of 19 PageID 13
`
`Instagram feeds typically see only the first few lines of a longer post unless they click “more,”
`
`endorsers should disclose any material connection above the “more” link. (Exhibit 15).
`
`17.
`
`On May 10, 2018, Defendants implemented a social media policy. Defendants
`
`assert that they either provided written copies of the policy to paid influencers or included the
`
`policy as part of the influencers’ contracts with Teami. The policy instructed influencers,
`
`“[E]nsure that all posts for which you receive free product or any type of compensation as an
`
`inducement to make the post … [u]se hashtags or words that clearly let the public know of the
`
`connection between you and Teami” and “DON’T … [m]ake the disclosure below the ‘more’
`
`button – the disclosure needs to be seen in the first part of your post without clicking anything
`
`else.”
`
`18.
`
`In many instances, paid influencers were contractually required to obtain approval
`
`from Teami for their Instagram posts – including the specific text used – before publishing them.
`
`Yet, numerous Instagram posts published by paid influencers after May 2018 did not comply
`
`with Teami’s own social media policy.
`
`19.
`
`Defendants did not enforce their requirement that “disclosure[s] need[ed] to be
`
`seen in the first part of [a] post without clicking anything else.” Between June and late-October
`
`2018, hundreds of Instagram posts were published by well-known influencers whom Defendants
`
`paid more than $500 to endorse Teami products. In most cases, consumers viewing these posts
`
`in their Instagram feeds would not have seen any text disclosing the influencers’ connections to
`
`Teami unless the consumers took the extra step of clicking to see “more.”
`
`20.
`
`In numerous instances after May 2018, well-known influencers paid by
`
`Defendants to promote Teami teas and skincare products posted video endorsements on
`
`13
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 14 of 19 PageID 14
`
`Instagram that did not disclose any connections between the endorsers and Defendants within the
`
`video itself. In many instances, the text accompanying these videos did not include a disclosure
`
`in the first two or three lines of text visible to followers of the influencers viewing the posts in
`
`their feeds without the need to click “more.” Followers who viewed these videos in their
`
`Instagram feeds – either because the videos played automatically within the mobile app, or
`
`because the followers chose to play the videos – could have viewed the videos without clicking
`
`“more.” Examples of such endorsements include: a November 23, 2018 post by Cardi B, a
`
`rapper with 53.3 million Instagram followers (Exhibit 16.a, b, and c, with almost 20.4 million
`
`views); a September 24, 2018 post by Brittany Renner, a fitness model and author with 5.2
`
`million followers (Exhibit 17.a, b, and c, with 984,000 views); an August 16, 2018 post by Katya
`
`Elise Henry, a social media fitness trainer with 6.2 million Instagram followers (Exhibit 18.a. b,
`
`and c, with 241,000 views); an October 2, 2018 post by Adrienne Eliza Houghton, a singer,
`
`actress, and television personality with 4.5 million Instagram followers (Exhibit 19.a, b, and c,
`
`with 254,000 views); a July 24, 2018 post by Leyla Milani-Khoshbin, a model, actress, and
`
`television host with 1.1 million Instagram followers (Exhibit 20.a and b, with 428,000 views); a
`
`July 10, 2018 post by Alexa PenaVega, an actress and singer with 1.6 million Instagram
`
`followers (Exhibit 21.a, b, c, and d, with 24,000 likes); and a February 4, 2019 post by Jenicka
`
`Lopez, a reality television personality with 810,000 Instagram followers (Exhibit 22.a and b,
`
`with 138,000 views). The first page of each exhibit referenced in this paragraph displays the
`
`Instagram post as it appears when viewed using a desktop computer’s internet browser and not
`
`viewed as part of a follower’s Instagram feed. By contrast, when viewed in a follower’s feed,
`
`the caption is truncated such that at most three lines of text are visible unless the follower clicks
`
`14
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 15 of 19 PageID 15
`
`on a link labeled “more.” When viewed in an Instagram feed on a mobile phone, the posts would
`
`have resembled Exhibits 16.b, 17.b, 18.b, 19.b, and 21.b.
`
`21.
`
`In numerous instances after May 2018, Instagram posts published by well-known
`
`influencers paid by Defendants to endorse Teami teas and skincare products included an
`
`endorsement within the photo itself (by clearly showing a Teami-branded product) or within the
`
`first two or three lines of the post’s caption, but made any disclosures regarding the connections
`
`between the endorsers and Defendants in text located below the third line of the caption.
`
`Followers of the influencers viewing the posts in their Instagram feeds would have seen the
`
`endorsements but would not have seen any disclosures unless they clicked on an option to see
`
`“more.” Examples of such endorsements include: an August 28, 2018 post by Jordin Sparks, a
`
`singer-songwriter with 1.7 million Instagram followers (Exhibit 23.a and b); a July 30 2018 post
`
`by Brittany Renner (Exhibit 24.a and b); a June 15, 2018 post by Princess Mae, an Instagram
`
`celebrity with 2.1 million Instagram followers (Exhibit 25.a and b); and an August 21, 2018 post
`
`by Darnell Nicole, a reality television personality with 645,000 Instagram followers (Exhibit
`
`26.a and b). The first page of each exhibit referenced in this paragraph displays the Instagram
`
`post as it appears when viewed using a desktop computer’s internet browser and not viewed as
`
`part of a follower’s Instagram feed. By contrast, when viewed in a follower’s feed, the caption is
`
`truncated such that at most three lines of text are visible unless the follower clicks on a link
`
`labeled “more.” When viewed in an Instagram feed on a mobile phone, the posts would have
`
`resembled the second page of each exhibit.
`
`22.
`
`Based on the facts and violations of law alleged in this Complaint, the FTC has
`
`reason to believe that Defendants are violating or are about to violate laws enforced by the
`
`15
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 16 of 19 PageID 16
`
`
`Commission because, among other things, Defendants engaged in their unlawful acts and
`
`practices repeatedly over a period of several years and continued their unlawful conduct for
`
`many months after they learned that the FTC was investigating them.
`
`VIOLATIONS OF THE FTC ACT
`
`23.
`
`Section 5(a) of the FTC Act, 15 U.S.C. § 45(a), prohibits “unfair or deceptive acts
`
`or practices in or affecting commerce.”
`
`24. Misrepresentations or deceptive omissions of material fact constitute deceptive
`
`acts or practices prohibited by Section 5(a) of the FTC Act. Section 12 of the FTC Act, 15
`
`U.S.C. § 52, prohibits the dissemination of any false advertisement in or affecting commerce for
`
`the purpose of inducing, or which is likely to induce, the purchase of food, drugs, devices,
`
`services, or cosmetics. For the purposes of Section 12 of the FTC Act, 15 U.S.C. § 52, Teami
`
`teas, including Teami Profit tea, Teami Alive tea, Teami Relax tea, Teami Skinny tea, and Teami
`
`Colon tea, are either “food” or “drugs” as defined in Sections 15(b) and (c) of the FTC Act, 15
`
`U.S.C. §§ 55(b), (c) and Teami skincare products, including Teami Green Tea Blend Detox
`
`Mask and Teami Soothe Tea Infused Facial Oil, are “cosmetics” as defined in Section 15(e) of
`
`the FTC Act, 15 U.S.C. § 55(e).
`
`COUNT I
`
`FALSE OR UNSUBSTANTIATED EFFICACY CLAIMS
`
`25.
`
`Through the means described in Paragraph 14, Defendants have represented,
`
`directly or indirectly, expressly or by implication, that:
`
`A.
`
`Teami Profit Tea treats cancer;
`
`
`
`16
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 17 of 19 PageID 17
`
`
`
`B.
`
`Teami Profit Tea significantly reduces serum cholesterol and unclogs
`
`arteries;
`
`C.
`
`D.
`
`E.
`
`Teami Alive Tea significantly decreases migraines;
`
`Teami Relax Tea prevents and treats colds and prevents flus;
`
`Users of the Teami 30 Day Detox lose an average of five to twenty pounds
`
`every time they do the thirty-day detox;
`
`F.
`
`Users of the Teami 30 Day Detox only have to drink the tea in order to
`
`experience substantial weight loss;
`
`G.
`
`The Teami 30 Day Detox causes substantial weight loss, including as
`
`much as forty pounds;
`
`H.
`
`The Teami 30 Day Detox causes rapid and substantial weight loss,
`
`including as much as four or more pounds per week; and
`
`I.
`
`The Teami 30 Day Detox Pack burns body fat.
`
`26.
`
`The representations set forth in Paragraph 25 are false or misleading, or were not
`
`substantiated at the time the representations were made.
`
`27.
`
`Therefore, the making of the representations as set forth in Paragraph 25 of this
`
`Complaint constitutes a deceptive act or practice and the making of false advertisements, in or
`
`affecting commerce, in violation of Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a), 52.
`
`COUNT II
`
`DECEPTIVE FAILURE TO DISCLOSE MATERIAL CONNECTION
`
`In connection with the advertising, marketing, promotion, offering for sale, or sale
`
`28.
`
`of Teami tea and skincare products, including through the means described in Paragraphs 18
`
`
`
`17
`
`
`
`Case 8:20-cv-00518-VMC-TGW Document 1 Filed 03/05/20 Page 18 of 19 PageID 18
`
`through 21, Defendants have represented, directly or indirectly, expressly or by implication, that
`
`social media posts by influencers about Teami products reflected the views of individuals who
`
`had used the Teami product.
`
`29.
`
`In numerous instances in which Defendants have made the representation set forth
`
`in Paragraph 28 of this Complaint, Defendants have failed to disclose adequately to consumers
`
`that the influencers were paid to endorse the Teami products. This fact would be material to
`
`consumers in evaluating the endorsements of Teami products in connection with a purchase or
`
`use decision.
`
`30.
`
`Defendants’ failure to disclose adequately the material information described in
`
`Paragraph 29, above, in light of the representation described in Paragraph 28, above, constitutes
`
`a deceptive act or practice and the making of false advertisements, in or affecting commerce, in
`
`violation of Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a), 52.
`
`CONSUMER INJURY
`
`31.
`
`Consumers have suffered and will continue to suffer substantial injury as a result
`
`of Defendants’ violations of the FTC Act. In addition, Defendants have been unjustly enriched
`
`as a result of their unlawful acts or practices. Absent injunctive relief by this Court, Defendants
`
`are likely to continue to injure consumers, reap unjust enrichment, and harm the public interest.
`
`THIS COURT’S POWER TO GRANT RELIEF
`
`32.
`
`Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court to grant
`
`injunctive and such other relief as the Court may deem appropriate to halt and redress violations
`
`of any provision of law enforced by the FTC. The Court, in the exercise of its equitable
`
`jurisdiction, may award ancillary relief, including rescission or reformation of contracts,
`
`18
`
`
`
`Case 8:20-cv-00518-VMC-T