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Case 5:18-cv-02104-DMG-PLA Document 705 Filed 03/01/22 Page 1 of 31 Page ID 

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UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

) No. ED CV 18-2104-DMG (PLAx) 

) Federal Trade Commission, ) DEFAULT JUDGMENT INCLUDING 

Plaintiff, ) PERMANENT INJUNCTION AS TO 

 v. ) REDWOOD SCIENTIFIC

) TECHNOLOGIES, INC. (CA), REDWOOD Jason Cardiff, et al., ) SCIENTIFIC TECHNOLOGIES, INC. 

Defendants. ) (NV) REDWOOD SCIENTIFIC 

) TECHNOLOGIES, INC. (DE), IDENTIFY, 

) LLC, ADVANCED MEN’S INSTITUTE 

) PROLONGZ LLC, RUN AWAY 

) PRODUCTS, LLC, AND CAROLS PLACE 

) LIMITED PARTNERSHIP 

) 

) 

) 

On October 3, 2018, Plaintiff, the Federal Trade Commission (“FTC” or 

“the Commission”), filed its Complaint for Permanent Injunction and Other 

Equitable Relief pursuant to Section 13(b) of the Federal Trade Commission Act 

(“FTC Act”), 15 U.S.C. §53(b), the Restore Online Shoppers’ Confidence Act 

(“ROSCA”), 15 U.S.C. §§ 8401-8405, and the Electronic Fund Transfer Act 

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(“EFTA”), 15 U.S.C. §§ 1693-1693r, and Section 6 of the Telemarketing and 

Consumer Fraud and Abuse Prevention Act (the “Telemarketing Act”), 15 U.S.C. 

§ 6105 and moved, pursuant to Fed. R. Civ. P. 65(b), for a temporary restraining 

order, asset freeze, other equitable relief, and an order to show cause why a 

preliminary injunction should not issue against Defendants Jason Cardiff, Eunjung 

Cardiff, a/k/a Eunjung Lee, a/k/a Eunjung No, Danielle Cadiz, a/k/a Danielle 

Walker, and corporate defendants, Redwood Scientific Technologies, Inc. 

(California), Redwood Scientific Technologies, Inc. (Nevada), Redwood Scientific 

Technologies, Inc. (Delaware), Identify, LLC, Advanced Men’s Institute Prolongz 

LLC, Run Away Products, LLC, and Carols Place Limited Partnership (“Corporate 

Defendants”). [Doc. # 1.] 

This Court entered a temporary restraining order (“TRO”) on October 10, 

2018. [Doc. # 29.] On October 24, 2018, the Court entered a Preliminary 

Injunction with an asset freeze and appointed a receiver over the Corporate 

Defendants. [Doc. # 46.] 

On March 5, 2019, the Commission filed an Application for the Clerk to 

Enter Defaults Against the Corporate Defendants Pursuant to Rule 55(a) of the 

Federal Rules of Civil Procedure. [Doc. ## 89, 89-1.] The Clerk entered default 

against the seven Corporate Defendants between March 5, 2019 and March 7, 

2019. [Doc. ## 91, 92, 96.] 

On August 6, 2020, the Commission moved for entry of default judgments 

against all seven Corporate Defendants pursuant to Federal Rule of Civil Procedure 

55(b)(2) and Local Rule 55-1. [Doc. # 422.] The Commission filed its Proposed 

Default Judgment on September 3, 2021. [Doc. # 651.] 

FINDINGS OF FACT AND CONCLUSIONS OF LAW 

1. This action was initiated by the FTC under Section 13(b) of the FTC 

Act, 15 U.S.C. § 53(b), Section 5 of ROSCA, 15 U.S.C. § 8404, Section 918(c) of 

EFTA, 15 U.S.C. § 1693o(c), and Section 6 of the Telemarketing Act, 15 U.S.C. § 

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6105. The Commission’s Complaint sought both permanent injunctive relief and 

equitable monetary relief for the acts and practices as alleged therein. 

2. The Court has jurisdiction over this matter and over the Corporate 

Defendants and venue in this district is proper under 15 U.S.C. § 53(b) and 28 

U.S.C. §§ 1391(b)(1), (b)(2), (c)(1), (c)(2), and (d). 

3. The Corporate Defendants’ activities as alleged in the Commission’s 

Complaint were in or affecting commerce, as defined in Section 4 of the FTC Act, 

15 U.S.C. § 44. 

4. The Commission’s Complaint stated a claim upon which relief can be 

granted against the Corporate Defendants. 

5. The Corporate Defendants had proper notice of this lawsuit. They 

never filed an answer to the Complaint. 

6. The allegations in the Commission’s Complaint are taken as true 

against the Corporate Defendants. 

7. Those allegations and evidence supporting them established that 

between 2013 and October 12, 2018, the Corporate Defendants violated: 

a. Sections 5(a) and 12 of the FTC Act, 15 U.S.C. §§ 45(a) and 

52, which prohibit unfair and deceptive acts or practices in or 

affecting commerce; 

b. Section 4 of ROSCA, 15 U.S.C. § 8403, which prohibits 

charging consumers for goods or services sold in transactions 

effected on the Internet through a negative option feature, as 

that term is defined in the Commission’s Telemarketing Sales 

Rule, 16 C.F.R. § 310.2(w), unless the seller: (a) clearly and 

conspicuously discloses all material terms of the transaction 

before obtaining the consumer’s billing information; (b) obtains 

the consumer’s express informed consent before making the 

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charge; and (c) provides a simple mechanism to stop recurring 

charges; 

c. Section 907(a) of EFTA, 15 U.S.C. § 1693e(a) and Section 

1005.10(b) of EFTA’s implementing Regulation E, 12 C.F.R. § 

1005.10, which provides that a preauthorized electronic fund 

transfer (which is elsewhere defined as an electronic fund 

transfer authorized in advance to recur at substantially regular 

intervals) from a consumer’s account may be authorized by the 

consumer only in a writing signed or similarly authenticated by 

the consumer, and require that a copy of such authorization 

shall be provided to the consumer when made; and 

d. Section 310.4(b)(1)(v) of the FTC’s Telemarketing Sales Rule 

(“TSR”), 16 C.F.R. § 310.4(b)(1)(v). 

8. Jason Cardiff and Eunjung Cardiff operated the Corporate Defendants 

as a common enterprise. The Corporate Defendants “constitute[d] various 

iterations and shells of one another” and the Cardiffs and the Corporate Defendants 

were “all involved in the sale of the Products and . . . money, products, and 

employees flowed freely between them.” Summary Judgment Order at 20 [Doc. # 

511.] 

9. Section 13(b) of the FTC Act, 15 U.S.C. § 53(b), empowers this Court 

to issue injunctive relief against violations of the FTC Act. Section 19 of the FTC 

Act, § 57b, empowers the Court to grant such relief as it finds necessary to redress 

injury to consumers from the Defendants’ violations of ROSCA and the TSR, 

including rescission or reformation of contracts and refund of money. 

10. The danger of future violations by the Corporate Defendants justifies 

the issuance of permanent injunctive relief, including banning them from engaging 

in certain activities. 

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11. This action and the relief awarded herein are in addition to, and not in 

lieu of, other remedies as may be provided by law, including both civil and 

criminal remedies. 

12. Pursuant to Federal Rule of Civil Procedure 65(d), this Order is 

binding upon the Corporate Defendants, their officers, agents, servants, employees, 

attorneys, wholly-owned subsidiaries, successors and assigns, and upon those 

persons or entities in active concert or participation with them who receive actual 

notice of this Order by personal service or otherwise. 

13. Entry of this Order is in the public interest, and there being no just 

reason or delay, the Clerk is directed to enter judgment in favor of Plaintiff Federal 

Trade Commission immediately. 

THEREFORE, IT IS ORDERED as follows: 

DEFINITIONS 

For the purpose of this Order, the following definitions shall apply: 

A. “Acquirer” or “Acquiring Bank” means a business organization, 

Financial Institution, or an agent of a business organization or 

Financial Institution that has authority from an organization that 

operates or licenses a credit card system (e.g., Visa, MasterCard, 

American Express or Discover) to authorize Merchants to accept, 

transmit, or process payment by credit card through the credit card 

system for money, products, or anything else of value. 

B. “Billing Information” means any data that enables any person to 

access a consumer’s account, such as a credit card, checking, savings, 

share or similar account, utility bill, or mortgage loan account, or 

debit card. 

C. “Business Venture” means any written or oral business arrangement, 

however denominated, whether or not covered by 16 C.F.R. Part 437, 

that consists of the payment of any consideration for the right or 

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means to offer, sell, or distribute Goods or Services. The definition of 

Business Venture includes multilevel marketing programs. 

D. “Charge(s),” “Charged,” or “Charging” means any attempt to 

collect money or other consideration from a consumer, including, but 

not limited to, causing Billing Information to be submitted for 

payment, including against the consumer’s credit card, debit card, 

bank account, telephone bill, or other account. 

E. “Clear(ly) and conspicuous(ly)” means that a required disclosure is 

difficult to miss (i.e., easily noticeable) and easily understandable by 

ordinary consumers, including in all of the following ways: 

1. In any communication that is solely visual or solely audible, the 

disclosure must be made through the same means through which 

the communication is presented. In any communication made 

through both visual and audible means, such as a television 

advertisement, the disclosure must be presented simultaneously in 

both the visual and audible portions of the communication even if 

the representation requiring the disclosure is made in only one 

means. 

2. A visual disclosure, by its size, contrast, location, the length of 

time it appears, and other characteristics, must stand out from any 

accompanying text or other visual elements so that it is easily 

noticed, read, and understood. 

3. An audible disclosure, including by telephone or streaming video, 

must be delivered in a volume, speed, and cadence sufficient for 

ordinary consumers to easily hear and understand it. 

4. In any communication using an interactive electronic medium, 

such as the Internet or software, the disclosure must be 

unavoidable. 

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5. The disclosure must use diction and syntax understandable to 

ordinary consumers and must appear in each language in which the 

representation that requires the disclosure appears. 

6. The disclosure must comply with these requirements in each 

medium through which it is received, including all electronic 

devices and face-to-face communications. 

7. The disclosure must not be contradicted or mitigated by, or 

inconsistent with, anything else in the communication. 

8. When the representation or sales practice targets a specific 

audience, such as children, the elderly, or the terminally ill, 

“ordinary consumers” includes reasonable members of that group. 

F. “Covered Product” means any Dietary Supplement, Food, Drug, or 

Device. 

G. “Credit Card Laundering” means: (a) presenting or depositing into, 

or causing or allowing another to present or deposit into, the credit 

card system for payment, a Credit Card Sales Draft generated by a 

transaction that is not the result of a credit card transaction between 

the cardholder and the Merchant; (b) employing, soliciting, or 

otherwise causing or allowing a Merchant, or an employee, 

representative, or agent of a Merchant, to present to or deposit into the 

credit card system for payment, a Credit Card Sales Draft generated 

by a transaction that is not the result of a credit card transaction 

between the cardholder and the Merchant; or (c) obtaining access to 

the credit card system through the use of a business relationship or an 

affiliation with a Merchant, when such access is not authorized by the 

Merchant Account agreement or the applicable credit card system. 

H. “Credit Card Sales Draft” means any record or evidence of a credit 

card transaction. 

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Case 5:18-cv-02104-DMG-PLA Document 705 Filed 03/01/22 Page 8 of 31 Page ID 

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I. “Corporate Defendant(s)” means Redwood Scientific Technologies, 

Inc. (CA); Redwood Scientific Technologies, Inc. (NV); Redwood 

Scientific Technologies, Inc. (DE); Identify, LLC; Advanced Men’s 

Institute Prolongz LLC; Run Away Product, LLC; and Carols Place 

Limited Partnership, individually, collectively, or in any combination. 

J. “Defendant(s)” means Jason Cardiff, Eunjung Cardiff, and the 

Corporate Defendants, individually, collectively, or in any 

combination. 

K. “Device” means an instrument, apparatus, implement, machine, 

contrivance, implant, in vitro reagent, or other similar or related 

article, including any component, part, or accessory, which is (1) 

recognized in the official National Formulary, or the United States 

Pharmacopeia, or any supplement to them; (2) intended for use in the 

diagnosis of disease or other conditions, or in the cure, mitigation, 

treatment, or prevention of disease, in humans or other animals; or (3) 

intended to affect the structure or any function of the body of humans 

or other animals; and which does not achieve any of its principal 

intended purposes through chemical action within or on the body of 

humans or other animals and which is not dependent upon being 

metabolized for the achievement of any of its principal intended 

purposes. 

L. “Dietary Supplement” means: (1) any product labeled as a Dietary 

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, 

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Case 5:18-cv-02104-DMG-PLA Document 705 Filed 03/01/22 Page 9 of 31 Page ID 

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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. 

M. “Drug” means: (1) articles recognized in the official United States 

Pharmacopoeia, 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. 

N. “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. 

O. “Financial Institution” means any institution the business of which is 

engaging in financial activities as described in section 4(k) of the 

Bank Holding Company Act of 1956 (12 U.S.C. § 1843(k)). An 

institution that is significantly engaged in financial activities is a 

Financial Institution. 

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P. “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. 

Q. “Good(s) or Service(s)” includes merchandise, products, plans, or 

programs. 

R. “Investment Opportunity” means anything, tangible or intangible, 

that is offered, offered for sale, sold, or traded based wholly or in part 

on representations, either express or implied, about past, present, or 

future income, profit, or appreciation. 

S. “Made in the United States” means any representation, express or 

implied, that a product, or a specified component thereof, is of U.S.-

origin, including a representation that such product is “made,” 

“manufactured,” “built,” or “produced” in the United States or in 

America, or any other U.S.-origin claim. 

T. “Merchant” means (a) any person or entity engaged in the sale or 

marketing of any goods or services, or soliciting a charitable 

contribution, or (b) any person or entity who applies for or obtains 

Payment Processing services. 

U. “Merchant Account” means any account with an Acquiring Bank or 

other Financial Institution, service provider, payment processor, 

independent sales organization, or other entity that enables an 

individual, a business, or other organization to accept payments of any 

kind. 

V. “Negative Option Feature” means, in an offer or agreement to sell or 

provide any Good or Service, a provision under which the consumer’s 

silence or failure to take affirmative action to reject a Good or 

Service, or to cancel the agreement, is interpreted by the seller or 

provider as acceptance or continuing acceptance of the offer. 

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W. “Payment Processing” means providing a person or entity, directly or 

indirectly, with the means used to charge or debit accounts through 

the use of any payment method or mechanism, including, but not 

limited to, remotely created payment orders, remotely created checks, 

ACH debits, or debit, credit, prepaid, or stored value cards. Whether 

accomplished through the use of software or otherwise, Payment 

Processing includes, among other things: (a) reviewing and approving 

Merchant applications for payment processing services; (b) providing 

the means to transmit sales transactions data from Merchants to 

Acquiring Banks or other Financial Institutions; (c) clearing, settling, 

or distributing proceeds of sales transactions from Acquiring Banks or 

Financial Institutions to Merchants; or (d) processing chargebacks or 

returned remotely created payment orders, remotely created checks, or 

ACH checks. 

X. “Person” means a natural person, organization, or other legal entity, 

including a corporation, partnership, proprietorship, association, 

cooperative, or any other group or combination acting as an entity. 

Y. “Preauthorized Electronic Fund Transfer” means an electronic 

fund transfer authorized in advance to recur at substantially regular 

intervals. 

Z. “Receiver” means Robb Evans & Associates, LLC. 

ORDER 

I. BAN ON NEGATIVE OPTION SALES 

IT IS ORDERED that Corporate Defendants, whether acting directly or 

through an intermediary, are permanently restrained and enjoined from the 

advertising, marketing, promotion, offering for sale, or sale of any Good or Service 

with a Negative Option Feature. 

II. BAN ON ROBOCALLS AND RINGLESS VOICEMAILS 

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IT IS FURTHER ORDERED that Corporate Defendants, whether acting 

directly or through an intermediary, are permanently restrained and enjoined from 

initiating telephone calls delivering prerecorded messages, including ringless 

voicemails. 

III. BAN ON MULTILEVEL MARKETING 

IT IS FURTHER ORDERED that Corporate Defendants, whether acting 

directly or through an intermediary, are permanently restrained and enjoined from 

engaging or participating in any multilevel marketing program. 

IV. BAN ON THE ADVERTISING, MARKETING, PROMOTION, 

OFFERING FOR SALE, OR SALE OF DISSOLVABLE ORAL FILM 

STRIPS TO END-USER CONSUMERS 

IT IS FURTHER ORDERED that Corporate Defendants, whether acting 

directly or through an intermediary, are permanently restrained and enjoined from 

the advertising, marketing, promoting, or offering for sale of any dissolvable oral 

film strip to end-user consumers. 

V. PROHIBITED REPRESENTATIONS: REGARDING HEALTHRELATED CLAIMS REQUIRING HUMAN CLINICAL TESTING 

FOR SUBSTANTIATION 

IT IS FURTHER ORDERED that Corporate Defendants, their 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, or assisting others 

in making, expressly or by implication, including through the use of a product 

name, endorsement, depiction, or illustration, any representation that such product: 

A. Helps users quit smoking, including any specific representation about 

success rates or the ease or speed of quitting; 

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B. Causes or assists in causing weight loss, including any specific 

representation about the amount of weight loss; 

C. Suppresses or helps suppress appetite; 

D. Causes or assists in causing weight loss without dieting or any change 

in food or lifestyle; 

E. Helps users avoid gaining back any weight they lost; 

F. Increases ejaculation control or the duration of sex; 

G. Treats or prevents premature ejaculation; 

H. Cures, mitigates, or treats any disease; or 

I. Is comparable or superior to other treatments for quitting smoking, 

weight loss, or sexual performance, or in curing, mitigating, or 

treating any disease, 

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

representation, Corporate Defendants possess and rely upon competent and reliable 

scientific evidence substantiating that the representation is true. For purposes of 

this Section, competent and reliable scientific evidence must consist of human 

clinical testing of the 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 

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the Commission. Persons covered by this Section have the burden of proving that 

a product satisfies the definition of Essentially Equivalent Product. 

VI. PROHIBITED REPRESENTATIONS: OTHER HEALTH-RELATED 

CLAIMS 

IT IS FURTHER ORDERED that Corporate Defendants, their 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, or assisting others 

in making, expressly or by implication, including through the use of a product 

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 the product, unless the representation is non-misleading, and, at 

the time of making such representation, Corporate Defendants 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, doubleblind, and placebo-controlled human clinical testing of the Covered Product, or of 

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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. 

VII. 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 Corporate Defendants rely to substantiate any claim 

covered by this Order, they 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: 

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 

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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) Corporate Defendants; (2) their officers, agents, 

representatives, or employees; (3) any other person or entity in active concert or 

participation with Corporate Defendants; (4) any person or entity affiliated with or 

acting on behalf of Corporate Defendants; (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. 

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 or 

on behalf of, Corporate Defendants, they 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 the size and complexity of the entity sponsoring the test, 

the nature and scope of that entity’s activities, and the sensitivity of the personal 

information collected from or about the participants. 

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VIII. PROHIBITED REPRESENTATIONS: TESTS, STUDIES, OR 

OTHER RESEARCH 

IT IS FURTHER ORDERED that Corporate Defendants, their 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, or assisting 

others in misrepresenting, expressly or by implication, including through the use of 

any product name, endorsement, depiction, or illustration: 

A. That the product is clinically proven to: 

1. Help users quit smoking, including any specific representation 

about success rates or the ease or speed of quitting; 

2. Cause or assist in causing weight loss, including any specific 

representation about the amount of weight loss; 

3. Suppress or help suppress appetite; 

4. Cause or assist in causing weight loss without dieting or any 

change in food or lifestyle; 

5. Help users avoid gaining back any weight they lost; 

6. Increase ejaculation control or the duration of sex; 

7. Treat or prevent premature ejaculation; or 

8. Be comparable or superior to other treatments for quitting 

smoking. 

B. That the performance or benefits of the product are scientifically or 

clinically proven or otherwise established; or 

The existence, contents, validity, results, conclusions, or 

interpretations of any test, study, or other research. 

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IX. FDA-APPROVED CLAIMS 

IT IS FURTHER ORDERED that nothing in this Order prohibits 

Corporate Defendants, their 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 

B. 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. 

X. PROHIBITED MISREPRESENTATIONS: ENDORSEMENTS 

IT IS FURTHER ORDERED that Corporate Defendants, their 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 Good or 

Service, are permanently restrained and enjoined from making, or assisting others 

in making, any misrepresentation, expressly or by implication, (1) about the status 

of any endorser or person providing a review of the Good or Service, including a 

misrepresentation that the endorser or reviewer is an independent or ordinary user 

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of the Good or Service, or (2) that any person or organization has endorsed any 

Good or Service. 

XI. PROHIBITED MISREPRESENTATIONS: U.S. ORIGIN CLAIMS 

IT IS FURTHER ORDERED that Corporate Defendants, their 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 Good or 

Service, or any other product, are permanently restrained and enjoined from 

making, or assisting others in making, any representation, expressly or by 

implication, that it is Made in the United States unless: 

A. The final assembly or processing of the product occurs in the United 

States, all significant processing that goes into the product occurs in 

the United States, and all or virtually all ingredients or components of 

the product are made and sourced in the United States; or 

B. A Clear and Conspicuous qualification appears immediately adjacent 

to the representation that accurately conveys the extent to which the 

product contains foreign parts, ingredients or components, and/or 

processing; or 

C. For a claim that a product is assembled in the United States, the 

product is last substantially transformed in the United States, the 

product’s principal assembly takes place in the United States, and 

United States assembly operations are substantial. 

XII. PROHIBITED REPRESENTATIONS: EARNINGS CLAIMS 

IT IS FURTHER ORDERED that Corporate Defendants, their 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 advertising, marketing, 

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promotion, offering for sale, or sale of any Good or Service, including Business 

Ventures or Investment Opportunities, are permanently restrained and enjoined 

from: 

A. Misrepresenting, or assisting others in misrepresenting, expressly or 

by implication, including through the use of any program name, 

endorsement, lifestyle description, depiction, or illustration, any 

material fact, including: 

1. That participants will or are likely to achieve substantial sales or 

earn substantial income or profit; 

2. The amount of sales, income, or profit that participants have 

actually earned; 

3. The amount of time or effort required to earn an amount of 

compensation or to advance; or 

4. The total costs or any material restrictions, limitations, or 

conditions; 

B. Making any representation, expressly or by implication, including 

through the use of any program name, endorsement, lifestyle 

description, depiction, or illustration, regarding the amount of sales, 

income, or profit that a participant can expect to earn, including that 

participants will or are likely to achieve substantial sales or earn 

substantial income or profit, unless the representation is nonmisleading, and, at the time such representation is made, Corporate 

Defendants possess and rely upon competent and reliable evidence 

that is sufficient to substantiate that the representation is true. 

XIII. PROHIBITED MISREPRESENTATIONS: OTHER MATERIAL 

FACTS 

IT IS FURTHER ORDERED that Corporate Defendants, their officers, 

agents, employees, and attorneys, and all other persons in active concert or 

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participation with any of them, who receive actual notice of this Order, whether 

acting directly or indirectly, in connection with the manufacturing, labeling, 

advertising, promoting, offering for sale, sale, or distribution of any Good or 

Service are permanently restrained and enjoined from misrepresenting, or assisting 

others in misrepresenting, expressly or by implication, including through the use of 

any product name, endorsement, depiction, or illustration, any material fact 

concerning such Good or Service, including: 

A. The success rate or rate of customer satisfaction; 

B. The total costs; 

C. Any refund policy; 

D. Any material restrictions, limitations, or conditions, including any 

conditions that might limit certain consumers’ ability to obtain the full 

benefits of the proffered Good or Service; 

E. Any material aspect of its performance, efficacy, nature, or central 

characteristics, including that the benefits of the proffered Good or 

Service can be obtained quickly or easily; 

F. Any cost to the consumer to purchase, receive, use, or return the Good 

or Service; 

G. That the consumer will not be Charged for any Good or Service; 

H. That a Good or Service is offered on a “free,” “trial,” “sample,” 

“bonus,” “gift,” “no obligation,” or “discounted” basis, or words of 

similar import, denoting or implying the absence of an obligation on 

the part of the recipient of the offer to affirmatively act in order to 

avoid Charges, including where a Charge will be assessed pursuant to 

the offer unless the consumer takes affirmative steps to prevent or 

stop such a Charge; 

I. The timing or manner of any Charge or bill; 

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J. That the consumer can obtain a Good or Service for a processing, 

service, shipping, handling, or administrative fee with no further 

obligation; 

K. The purpose(s) for which the consumer’s Billing Information will be 

used; 

L. The date by which the consumer will incur any obligation or be 

Charged unless the consumer takes affirmative steps to prevent or stop 

such a Charge; 

M. That a transaction has been authorized by the consumer; or 

N. Any material aspect of the nature or terms of a refund, cancellation, 

exchange, or repurchase policy for the Good or Service. 

XIV. PROHIBITIONS CONCERNING REFUNDS 

IT IS FURTHER ORDERED that Corporate Defendants, their 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 Good or 

Service, are permanently restrained and enjoined from failing to honor a refund, 

return, or cancellation request that complies with any policy of Corporate 

Defendants to make refunds or allow returns or cancellations. 

XV. PROHIBITIONS RELATED TO MERCHANT ACCOUNTS 

IT IS FURTHER ORDERED that Corporate Defendants, their 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: 

A. Credit Card Laundering; 

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B. Making, or assisting others in making, directly or by implication, any 

false or misleading statement in order to obtain Payment Processing 

services; 

C. Failing to disclose to an Acquiring Bank or other Financial Institution, 

service provider, payment processor, independent sales organization, 

or other entity that enables a person to accept payments of any kind 

any material information related to a Merchant Account including, but 

not limited to, the identity of any owner, manager, director, or officer 

of the applicant for or holder of a Merchant Account, and any 

connection between an owner, manager, director, or officer of the 

applicant for or holder of a Merchant Account and any third person 

who has been or is placed in a Merchant Account monitoring 

program, had a Merchant Account terminated by a payment processor 

or a Financial Institution, or has been fined or otherwise disciplined in 

connection with a Merchant Account by a payment processor or a 

Financial Institution; and 

D. Engaging in any tactics to avoid fraud-and-risk-monitoring programs 

established by any Financial Institution, Acquiring Bank, or the 

operators of any payment system, including, but not limited to, tactics 

such as balancing or distributing sales transactions among multiple 

Merchant Accounts or merchant billing descriptors; splitting a single 

sales transaction into multiple smaller transactions; or using a shell 

company to apply for a Merchant Account. 

XVI. PROHIBITION AGAINST UNAUTHORIZED CHARGES 

IT IS FURTHER ORDERED that Corporate Defendants, their 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 advertising, promotion, offering 

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for sale, or sale of any Good or Service, are permanently restrained and enjoined 

from Charging, causing to be Charged, assisting others in Charging, or attempting 

to Charge any consumer, without obtaining the consumer’s express informed 

consent to the Charge and having created and maintained a record of such consent. 

XVII.PROHIBITION AGAINST DEBITING CONSUMERS’ BANK 

ACCOUNTS WITHOUT AUTHORIZATION 

IT IS FURTHER ORDERED that Corporate Defendants, their 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 sale of any Good or Service, 

are permanently restrained and enjoined from: 

A. Failing to timely obtain written authorization signed or similarly 

authenticated by the consumer for any Preauthorized Electronic Fund 

Transfer from a consumer’s account before initiating any 

Preauthorized Electronic Fund Transfer; and 

B. Failing to provide to the consumer a copy of a valid written 

authorization signed or similarly authenticated by the consumer for 

any Preauthorized Electronic Fund Transfer from a consumer’s 

account. 

XVIII. CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that: 

A. Corporate Defendants, their 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, are permanently restrained and enjoined from: 

1. Disclosing, using, or benefitting from, or assisting others in 

disclosing, using, or benefitting from, customer information, 

including the name, address, telephone number, email address, 

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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 

Corporate Defendants obtained prior to entry of this Order in 

connection with the advertising, promotion, offering for sale, or 

sale of Defendants’ oral film strips or Rengalife; and 

2. Failing to destroy such customer information in all forms in 

their possession, custody, or control within 30 days after entry 

of this Order. 

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. 

B. Upon termination of the receivership, the Receiver shall not return 

any customer information to the Defendants. 

XIX. ORDER ACKNOWLEDGMENTS 

IT IS FURTHER ORDERED that Corporate Defendants obtain 

acknowledgments of receipt of this Order: 

A. Corporate Defendants, 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. 

B. For 20 years after entry of this Order, Corporate Defendants for any 

business that such Defendant, individually or collectively with any 

other Defendants, is the majority owner or controls directly or 

indirectly, 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 conduct related to the subject matter of the Order; and 

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(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 Corporate Defendants 

delivered a copy of this Order, that Defendant must obtain, within 30 

days, a signed and dated acknowledgment of receipt of this Order. 

XX. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Corporate Defendants make timely 

submissions to the Commission: 

A. One year after entry of this Order, Corporate Defendants must each 

submit a compliance report, sworn under penalty of perjury. Each of 

them must: 

1. Identify all telephone numbers and all physical, postal, email and 

Internet addresses, including all residences; 

2. 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; 

3. Describe in detail such Defendant’s involvement in each such 

business, including title, role, responsibilities, participation, 

authority, control, and any ownership; 

4. 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; 

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5. Identify all of that Defendant’s businesses by all of their names, 

telephone numbers, and physical, postal, email, and Internet 

addresses; 

6. Describe the activities of each business, including the Goods or 

Services offered, the means of manufacturing, labeling, 

advertising, promotion, offering for sale, sale or distribution, and 

the involvement of any other Defendant (which Corporate 

Defendants must describe if they know or should know due to their 

own involvement); 

7. Describe in detail whether and how that Defendant is in 

compliance with each Section of this Order; and 

8. Provide a copy of each Order Acknowledgment obtained pursuant 

to this Order, unless previously submitted to the Commission. 

B. For 20 years after entry of this Order, Corporate Defendants must 

each submit a compliance notice, sworn under penalty of perjury, 

within 14 days of any change in the following: 

1. Name, including aliases or fictitious name, or residence address; 

2. 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 interest, and identify the name, physical address, and 

any Internet address of the business or entity; 

3. Any designated point of contact; or 

4. The structure of any entity that such 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 

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subsidiary, parent, or affiliate that engages in any acts or practices 

subject to this Order. 

C. Corporate Defendants 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: Associate Director for Enforcement, Bureau of 

Consumer Protection, Federal Trade Commission, 600 Pennsylvania 

Avenue NW, Washington, DC 20580. The subject line must begin: 

FTC v. Jason Cardiff, et al., X190001. 

XXI. RECORDKEEPING 

IT IS FURTHER ORDERED that Corporate Defendants must create 

certain records for 20 years after entry of the Order, and retain each such record for 

5 years. Specifically, Corporate Defendants, for any business that each such 

Defendant, individually or collectively with any other Defendant, is a majority 

owner or controls directly or indirectly, must create and retain the following 

records: 

A. Accounting records showing the revenues from all Goods or Services 

sold; 

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B. Personnel records showing, for each person providing services, 

whether as an employee or otherwise, that person’s: name; addresses; 

telephone numbers; job title or position; dates of service; and (if 

applicable) the reason for termination; 

C. Records of all consumer complaints and refund requests concerning 

the subject matter of this Order, whether received directly or 

indirectly, such as through a third party, and any response; 

D. All records necessary to demonstrate full compliance with each 

provision of this Order, including all submissions to the Commission; 

and 

E. A copy of each unique advertisement or other marketing material. 

XXII. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring 

Corporate Defendants’ compliance with this Order: 

A. Within 14 days of receipt of a written request from a representative of 

the Commission, Corporate Defendants each must: submit additional 

compliance reports or other requested information, which must be 

sworn under penalty of perjury; appear for depositions; and produce 

documents for inspection and copying. The Commission is also 

authorized to obtain discovery, without further leave of court, using 

any of the procedures prescribed by Federal Rules of Civil Procedure 

29, 30 (including telephonic depositions), 31, 33, 34, 36, 45, and 69. 

B. For matters concerning this Order, the Commission is authorized to 

communicate directly with Corporate Defendants. Corporate 

Defendants must permit representatives of the Commission to 

interview any employee or other person affiliated with any Defendant 

who has agreed to such an interview. The person interviewed may 

have counsel present. 

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C. The Commission may use all other lawful means, including posing, 

through its representatives, as consumers, suppliers, or other 

individuals or entities, to Defendants or any individual or entity 

affiliated with Defendants, without the necessity of identification or 

prior notice. Nothing in this Order limits the Commission’s lawful 

use of compulsory process, pursuant to Sections 9 and 20 of the FTC 

Act, 15 U.S.C. §§ 49, 57b-1. 

D. Upon written request from a representative of the Commission, any 

consumer reporting agency must furnish consumer reports concerning 

Corporate Defendants, pursuant to Section 604(1) of the Fair Credit 

Reporting Act, 15 U.S.C. §1681b(a)(1). 

XXIII. EXPIRATION OF PRELIMINARY INJUNCTION PROVISIONS 

A. Upon entry of this Order, the provisions of the Preliminary Injunction 

[Doc. # 46], including the asset freeze and receivership, shall expire, 

except to the extent provided in the Court’s February 28, 2022 Order 

regarding discharge of the Receiver [Doc. # 702]. Upon the 

Receiver’s completion of the tasks described in paragraphs 5 through 

11 of that Order, and the Court’s approval of the Receiver’s final 

report, the Receiver will be discharged for all purposes. 

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XXIII. RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this 

matter for purposes of construction, modification, and enforcement of this Order. 

DOLLY M. GEE 

UNITED STATES DISTRICT JUDGE 

SO ORDERED this 1 day of March, 2022. st

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