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UNITED STATES OF AMERICA

FEDERAL TRADE COMMISSION

COMMISSIONERS: Edith Ramirez, Chairwoman

Julie Brill

Maureen K. Ohlhausen

Joshua D. Wright

Terrell McSweeny

In the Matter of

NORM THOMPSON OUTFITTERS, INC.

a corporation.

FILE NO. 132 3094

AGREEMENT CONTAINING 

CONSENT ORDER

The Federal Trade Commission has conducted an investigation of certain acts and 

practices of Norm Thompson Outfitters, Inc., a corporation (“Proposed Respondent”). Proposed 

Respondent, having been represented by counsel, is willing to enter into an agreement containing 

a consent order resolving the allegations contained in the attached draft complaint. Therefore,

IT IS HEREBY AGREED by and between Norm Thompson Outfitters, Inc., by its duly 

authorized officers, and counsel for the Federal Trade Commission that:

1. Proposed Respondent Norm Thompson Outfitters, Inc., is an Oregon corporation with its 

principal office or place of business at 3188 NW Aloclek Drive, Hillsboro, Oregon 97124.

2. Proposed Respondent admits all the jurisdictional facts set forth in the draft complaint.

3. Proposed Respondent waives:

a. Any further procedural steps;

b. The requirement that the Commission’s decision contain a statement of findings 

of fact and conclusions of law; and

c. All rights to seek judicial review or otherwise to challenge or contest the validity 

of the order entered pursuant to this agreement.

4. This agreement shall not become part of the public record of the proceeding unless and 

until it is accepted by the Commission. If this agreement is accepted by the Commission, it, 

together with the draft complaint, will be placed on the public record for a period of thirty (30) 

days and information about it publicly released. The Commission thereafter may either 

withdraw its acceptance of this agreement and so notify Proposed Respondent, in which event it 

will take such action as it may consider appropriate, or issue and serve its complaint (in such 

form as the circumstances may require) and decision in disposition of the proceeding.
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5. Proposed respondent neither admits nor denies any of the allegations in the draft 

complaint, except as specifically stated in this agreement. Only for purposes of this action, 

proposed respondent admits the facts necessary to establish jurisdiction.

6. This agreement contemplates that, if it is accepted by the Commission, and if such 

acceptance is not subsequently withdrawn by the Commission pursuant to the provisions of 

Section 2.34 of the Commission’s Rules, the Commission may, without further notice to 

Proposed Respondent, (1) issue its complaint corresponding in form and substance with the 

attached draft complaint and its decision containing the following order in disposition of the 

proceeding, and (2) make information about it public. When so entered, the order shall have the 

same force and effect and may be altered, modified, or set aside in the same manner and within 

the same time provided by statute for other orders. The order shall become final upon service. 

Delivery of the complaint and the decision and order to Proposed Respondent’s address as stated 

in this agreement by any means specified in Section 4.4(a) of the Commission’s Rules shall 

constitute service. Proposed Respondent waives any right it may have to any other manner of 

service. The complaint may be used in construing the terms of the order, and no agreement, 

understanding, representation, or interpretation not contained in the order or in the agreement 

may be used to vary or contradict the terms of the order.

7. Proposed Respondent has read the draft complaint and consent order. It understands that 

it may be liable for civil penalties in the amount provided by law and other appropriate relief for 

each violation of the order after it becomes final.

ORDER

DEFINITIONS

For purposes of this order, the following definitions shall apply:

1. Unless otherwise specified, “Respondent” shall mean Norm Thompson Outfitters, Inc., a 

corporation, its successors and assigns, and its officers, agents, representatives, and employees.

2. “Adequate and well-controlled human clinical study” means a human clinical study that 

is randomized, double-blind, placebo controlled, and conducted by persons qualified by training 

and experience to conduct such study.

3. “Commerce” shall mean as defined in Section 4 of the Federal Trade Commission Act, 

15 U.S.C. § 44.

4. “Covered Product” means any garment containing a drug or cosmetic.

5. “Drug” and “cosmetic” mean as defined in Section 15 of the FTC Act, 15 U.S.C. § 55.
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6. “Reliably Reported,” for a human clinical test or study (“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.

I.

IT IS ORDERED that Respondent, directly or through any corporation, partnership, 

subsidiary, division, trade name, or other device, in connection with the manufacturing, labeling, 

advertising, promotion, offering for sale, sale, or distribution of any Covered Product, in or 

affecting commerce, shall not make any representation, in any manner, expressly or by 

implication, including through the use of a product name, endorsement, depiction, or illustration, 

that use of such product causes substantial weight or fat loss or a substantial reduction in body 

size.

II.

IT IS FURTHER ORDERED that Respondent, directly or through any corporation, 

partnership, subsidiary, division, trade name, or other device, in connection with the 

manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any 

Covered Product or any drug or cosmetic, in or affecting commerce, shall not make any 

representation, other than representations covered under Part I of this order, in any manner, 

expressly or by implication, including through the use of a product name, endorsement, 

depiction, or illustration, that use of such product causes weight or fat loss or a reduction in body 

size, unless the representation is non-misleading, and, at the time it is made, Respondent 

possesses and relies upon competent and reliable scientific evidence that substantiates that the 

representation is true. For purposes of this Part, competent and reliable scientific evidence shall 

consist of at least two adequate and well-controlled human clinical studies of the Covered 

Product, conducted by different researchers, independently of each other, that conform to 

acceptable designs and protocols and whose results, when considered in light of the entire body 

of relevant and reliable scientific evidence, are sufficient to substantiate that the representation is 

true. 

III.

IT IS FURTHER ORDERED that Respondent, directly or through any corporation, 

partnership, subsidiary, division, trade name, or other device, in connection with the 

manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any 

Covered Product or any drug or cosmetic, in or affecting commerce, shall not make any 

representation, other than representations covered under Parts I and II of this order, in any 

manner, expressly or by implication, including through the use of a product name, endorsement, 

depiction, or illustration, that use of such product reduces or eliminates cellulite, unless the 

representation is non-misleading, and, at the time of making such representation, Respondent

possesses and relies upon competent and reliable scientific evidence that is sufficient in quality 

and quantity based on standards generally accepted in the relevant scientific fields, 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 Part, competent and reliable scientific 
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evidence means tests, analyses, research, or studies (1) that have been conducted and evaluated 

in an objective manner by qualified persons; (2) that are generally accepted in the profession to 

yield accurate and reliable results; and (3) as to which, when they 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 Part VIII of this Order are 

available for inspection and production to the Commission.

IV.

IT IS FURTHER ORDERED that Respondent, directly or through any corporation, 

partnership, subsidiary, division, trade name, or other device, in connection with the 

manufacturing, labeling, advertising, promotion, offering for sale, sale, or distribution of any 

product in or affecting commerce, shall not misrepresent, or assist others in misrepresenting, in 

any manner, expressly or by implication, including through the use of any product name or 

endorsement:

A. The existence, contents, validity, results, conclusions, or interpretations of any 

test, study, or research; or

B. That the benefits of the product are scientifically proven.

V.

IT IS FURTHER ORDERED that

A. Nothing in this order shall prohibit Respondent from making any representation 

for any product that is specifically permitted 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; and

B. Nothing in this order shall prohibit Respondent from making any representation 

for any product that is permitted in the labeling for such product under any 

tentative final or final monograph promulgated by the Food and Drug 

Administration, or under any new drug application approved by the Food and 

Drug Administration.

VI.

IT IS FURTHER ORDERED that Respondent shall, within thirty (30) days after the 

date of entry of this order, provide to the Commission a searchable electronic file containing the 

name and contact information of all consumers who purchased any Covered Product from

Respondent from March 20, 2011, through the date of entry of this order. Such file (1) shall 

include each consumer’s name and address, the product(s) purchased, the total amount of 

moneys paid less any amount credited for returns or refunds, the date(s) of purchase, and, if 

available, the consumer’s email address; (2) shall be updated through the National Change of 

Address database; and (3) shall be accompanied by a sworn affidavit attesting to its accuracy.
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VII.

IT IS FURTHER ORDERED that Respondent shall create a fund in the amount of two 

hundred thirty thousand dollars ($230,000) to be used for the purpose of providing redress to 

those consumers who purchased any Covered Product from Respondent from March 20, 2011, 

through the date of entry of this order. 

A. Within 45 days after the date of service of this order, Respondent shall send a 

notice, in form substantially identical to Attachment A to this order, to all persons 

whom it identified pursuant to Part VI of this order. Such notice shall be provided 

by email to all persons for whom Respondent has an email address and by United 

States Mail to all persons for whom Respondent does not have an email address. 

Said notice shall contain no information other than that set forth in Attachment A, 

nor shall any other material be transmitted therewith.

B. Thirty (30) days after the emailing or mailing of the notice described in Part VII. 

A., Respondent shall credit to the credit card of record for each consumer who 

purchased a Covered Product from Respondent during the relevant time period an 

amount equal to such consumer’s pro rata share of the redress fund.

C. No part of the costs associated with the administration of this redress program 

shall be paid out of the fund established pursuant to this Section. Respondent

shall bear all costs associated with the above-described redress program.

D. Within sixty (60) days after the emailing or mailing of the notice described in Part 

VII. A., Respondent shall provide a report in writing to the Federal Trade 

Commission setting forth the name and address of each consumer who received a 

credit and the amount of such credit. Respondent shall remit to the Federal Trade 

Commission any funds remaining after the redress to consumers is completed. 

The Commission may apply any such funds for such other equitable relief 

(including consumer information remedies) as it determines to be reasonably 

related to Respondent’s practices alleged in the complaint. Any funds not used 

for such equitable relief shall be deposited in the United States Treasury as 

disgorgement. Respondent shall be notified as to how the funds are distributed, 

but shall have no right to challenge the Commission’s choice of remedies under 

this Part. No portion of any payment under this Part shall be deemed a payment 

of any fine, penalty, or punitive assessment.

E. Respondent agrees that the facts as alleged in the Complaint filed in this action 

shall be taken as true without further proof in any bankruptcy case or subsequent 

civil litigation pursued by the Commission to enforce its rights to any payment or 

money judgment pursuant to this Order, including, but not limited to, a 

nondischargeability complaint in any bankruptcy case. Respondent further 

stipulates and agrees that the facts alleged in the Complaint establish all elements 

necessary to sustain an action pursuant to, and that this Order shall have collateral 
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estoppel effect for purposes of, Section 523(a)(2)(A) of the Bankruptcy Code, 11 

U.S.C. § 523(a)(2)(A). For all other purposes and with respect to all other parties, 

Respondent’s stipulation in this section shall have no effect. It is specifically 

agreed and acknowledged that this section is not intended to be, nor shall it be, 

construed as an admission of liability by Respondent with respect to the 

allegations set forth in the Complaint with respect to any claims or demands by 

any third parties.

F. Proceedings instituted under this Part are in addition to, and not in lieu of, any 

other civil or criminal remedies that may be provided by law, including any other 

proceedings the Commission may initiate to enforce this order.

VIII.

IT IS FURTHER ORDERED that, with regard to any human clinical test or study 

(“test”) upon which Respondent relies to substantiate any claim covered by this Order, 

Respondent shall secure and preserve all underlying or supporting data and documents generally 

accepted by experts in the field as relevant to an assessment of the test, including, but not 

necessarily limited to: 

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, but not limited to, 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 

contracts and communications between any sponsor and the test’s researchers.

Provided, however, the preceding preservation requirement shall not apply to a Reliably 

Reported test, unless the test was conducted, controlled, or sponsored, in whole or in part by (1) 

any Respondent; (2) any other person or entity in active concert or participation with any 

Respondent; (3) any person or entity affiliated with or acting on behalf of any Respondent; (4) 

any supplier of any ingredient contained in the product at issue to any of the foregoing or to the 

product’s manufacturer; or (5) the supplier or manufacturer of such product.
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For any test conducted, controlled, or sponsored, in whole or in part, by Respondent, 

Respondent must establish and maintain reasonable procedures to protect the confidentiality, 

security, and integrity of any personal information collected from or about participants. These 

procedures shall be documented in writing and shall contain administrative, technical, and 

physical safeguards appropriate to Respondent’s size and complexity, the nature and scope of 

Respondent’s activities, and the sensitivity of the personal information collected from or about 

the participants.

IX.

IT IS FURTHER ORDERED that Respondent Norm Thompson Outfitters, Inc., and its 

successors and assigns shall, for five (5) years after the last date of dissemination of any 

representation covered by this order, maintain and, upon reasonable notice and request, make 

available to the Federal Trade Commission for inspection and copying:

A. All advertisements and promotional materials containing the representation;

B. All materials that were relied upon in disseminating the representation; and

C. All tests, reports, studies, surveys, demonstrations, or other evidence in its 

possession or control that contradict, qualify, or call into question the 

representation, or the basis relied upon for the representation, including 

complaints and other communications with consumers or with governmental or 

consumer protection organizations.

X.

IT IS FURTHER ORDERED that Respondent Norm Thompson Outfitters, Inc., and its 

successors and assigns shall deliver a copy of this order to all current and future principals, 

officers, directors, and managers, and to all current and future employees, agents and 

representatives having primary responsibilities with respect to the subject matter of this order, 

and shall secure from each such person a signed and dated statement acknowledging receipt of 

the order. Respondent and its successors and assigns shall deliver this order to current personnel 

within thirty (30) days after the date of service of this order, and to future personnel within thirty 

(30) days after the person assumes such position or responsibilities. Respondent shall maintain 

and upon request make available to the Federal Trade Commission for inspection and copying all 

acknowledgements of receipt of this order obtained pursuant to this Part.

XI.

IT IS FURTHER ORDERED that Respondent Norm Thompson Outfitters, Inc., and its 

successors and assigns shall notify the Commission at least thirty (30) days prior to any change 

in the corporation that may affect compliance obligations arising under this order, including but 

not limited to a dissolution, assignment, sale, merger, or other action that would result in the 

emergence of a successor; the creation or dissolution of a subsidiary, parent, or affiliate that 

engages in any acts or practices subject to this order; the proposed filing of a bankruptcy petition; 
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or a change in the corporate name or address. Provided, however, that, with respect to any 

proposed change in the corporation about which Respondent learns less than thirty (30) days 

prior to the date such action is to take place, Respondent shall notify the Commission as soon as 

is practicable after obtaining such knowledge. Unless otherwise directed by a representative of 

the Commission, all notices required by this Part shall be emailed to Debrief@ftc.gov or sent by 

overnight courier (not the U.S. Postal Service) to the Associate Director of Enforcement, Bureau 

of Consumer Protection, Federal Trade Commission, 600 Pennsylvania Avenue NW, 

Washington, DC 20580. The subject line must begin: “In the Matter of Norm Thompson 

Outfitters, Inc., FTC File Number 132-3094.” 

XII.

IT IS FURTHER ORDERED that Respondent Norm Thompson Outfitters, Inc., and its 

successors and assigns, within sixty (60) days after the date of service of this order, shall file 

with the Commission a true and accurate report, in writing, setting forth in detail the manner and 

form of its own compliance with this order. Within ten (10) days of receipt of written notice from 

a representative of the Commission, it shall submit additional true and accurate written reports.

XIII.

This order will terminate twenty (20) years from the date of its issuance, or twenty (20) 

years from the most recent date that the United States or the Federal Trade Commission files a 

complaint (with or without an accompanying consent decree) in federal court alleging any 

violation of the order, whichever comes later; provided, however, that the filing of such a 

complaint will not affect the duration of:

A. Any Part in this order that terminates in less than twenty (20) years;

B. This order’s application to any Respondent that is not named as a defendant in 

such complaint; and

C. This order if such complaint is filed after the order has terminated pursuant to this 

Part.
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Provided, further, that if such complaint is dismissed or a federal court rules that the Respondent

did not violate any provision of the order, and the dismissal or ruling is either not appealed or 

upheld on appeal, then the order will terminate according to this Part as though the complaint 

had never been filed, except that the order will not terminate between the date such complaint is 

filed and the later of the deadline for appealing such dismissal or ruling and the date such 

dismissal or ruling is upheld on appeal.

NORM THOMPSON OUTFITTERS, INC.

Date: ____________ By: ______________________________

Marc J. Sieger, President 

Norm Thompson Outfitters, Inc.

Date: ____________ ______________________________

D. BRUCE HOFFMAN

Date: ____________ ______________________________

MELVIN ORLANS

Hunton & Williams

2200 Pennsylvania Avenue, NW

Washington, DC 20037-1701

Attorneys for Respondent

Date: ____________ ______________________________

DAVID M. NEWMAN

ERIC EDMONDSON

Counsel for the Federal Trade Commission

APPROVED:

_____________________________

THOMAS N. DAHDOUH

Director

Western Region

_____________________________

JESSICA L. RICH

Director

Bureau of Consumer Protection
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ATTACHMENT A – EMAIL OR MAIL NOTICE TO CONSUMERS

Dear Norm Thompson customer:

Our records show that you purchased a Lytess slimming garment from Norm Thompson on or 

after March 20, 2011. 

When we sold you the Lytess garment, we advertised, based on information we received from 

the manufacturer, that wearing the garments as instructed would reduce the size of your hips by 

up to 2.1 inches and your thighs by up to one inch and would eliminate or reduce cellulite and 

that scientific tests proved those results.

The Federal Trade Commission (“FTC”) has charged that we did not have adequate 

substantiation for these claims. While Norm Thompson neither admits nor denies liability in 

connection with this matter, we have reached a settlement with the FTC that provides a partial 

refund to anyone who purchased these garments.

We will be crediting your refund to the credit card that we have on file based on your most 

recent purchase from Norm Thompson. That credit card ends in XXXX. If that credit card is 

still active, you do not need to do anything. You will be receiving your refund within XX days.

If that credit card is no longer active, please contact us at XXX-XXX-XXXX within 10 days and 

provide us with a credit card to which the refund can be credited.

You can verify that this notice is legitimate by going to the FTC’s website at www.ftc.gov or by 

calling the FTC at XXX-XXX-XXXX.