1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 1 of 35 Page ID #:4275 

UNITED STATES DISTRICT COURT 

CENTRAL DISTRICT OF CALIFORNIA 

Federal Trade Commission, 

Plaintiff,

 v.

JASON CARDIFF, individually and as 

an owner, officer, director, or 

member of 

REDWOOD SCIENTIFIC 

TECHNOLOGIES, INC., a 

California corporation; 

REDWOOD SCIENTIFIC 

TECHNOLOGIES, Inc., a 

Nevada corporation;

REDWOOD SCIENTIFIC 

TECHNOLOGIES, Inc., a 

Delaware corporation;

IDENTIFY, LLC, a Wyoming 

limited liability company; 

ADVANCED MEN’S 

INSTITUTE PROLONGZ LLC, 

d/b/a AMI, a California limited 

1 

No. ED 5:18-cv-02104-SJO-PLAx

[PROPOSED] STIPULATED

ORDER FOR PERMANENT 

INJUNCTION AND 

MONETARY JUDGMENT 

AS TO DEFENDANT 

DANIELLE CADIZ 
 

 

 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 

liability company; and 

RUN AWAY PRODUCTS, LLC, 

a New York limited liability 

company; and both general and 

limited partner of 

CAROLS PLACE LIMITED 

PARTNERSHIP, an Arizona 

limited liability partnership; 

EUNJUNG CARDIFF, a/k/a Eunjung 

Lee, a/k/a Eunjung No, 

individually and as an owner, 

officer, director, or member of

REDWOOD SCIENTIFIC 

TECHNOLOGIES, INC., a 

California corporation;

REDWOOD SCIENTIFIC 

TECHNOLOGIES, Inc., a 

Nevada corporation;

REDWOOD SCIENTIFIC 

TECHNOLOGIES, Inc., a 

Delaware corporation;

IDENTIFY, LLC, a Wyoming 

limited liability company; 

ADVANCED MEN’S 

INSTITUTE PROLONGZ LLC, 

d/b/a AMI, a California limited 

liability company; and 

RUN AWAY PRODUCTS, LLC, 

a New York limited liability 

company; and both general and 

limited partner of 

CAROLS PLACE LIMITED 

PARTNERSHIP, an Arizona 

limited liability partnership; 

DANIELLE CADIZ, a/k/a Danielle 

Walker, individually; 

2 

Filed 05/16/19 Page 2 of 35 Page ID #:4276 
 

 

 

 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 

REDWOOD SCIENTIFIC 

TECHNOLOGIES, INC., a 

California corporation, also d/b/a 

Rengalife;

REDWOOD SCIENTIFIC 

TECHNOLOGIES, INC., a 

Nevada corporation;

REDWOOD SCIENTIFIC 

TECHNOLOGIES, INC., a 

Delaware corporation;

IDENTIFY, LLC, a Wyoming limited 

liability company; 

ADVANCED MEN’S INSTITUTE 

PROLONGZ LLC, d/b/a AMI,

a California limited liability 

company; 

RUN AWAY PRODUCTS, LLC, a 

New York limited liability 

company; and 

CAROLS PLACE LIMITED 

PARTNERSHIP, an Arizona 

limited liability partnership,

Defendants. 

Filed 05/16/19 Page 3 of 35 Page ID #:4277 

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

“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 

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

3 
 

 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 4 of 35 Page ID #:4278 

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, 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. 

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

2018. (Dkt. No. 29) On October 24, 2018, the Court extended the TRO as to 

Defendant Cadiz. (Dkt. No. 47) On November 7, 2018, the Court entered a 

stipulated Preliminary Injunction as to Defendant Cadiz. (Dkt. No. 55) On 

February 26, 2019, the Court entered a Corrected Stipulated Preliminary Injunction 

as to Defendant Cadiz. (Dkt. No. 86) 

The Commission and Defendant Cadiz now agree to the entry of a Stipulated 

Order for Permanent Injunction and Monetary Judgment as to Defendant Danielle 

Cadiz (“Order”) to resolve all matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

The Stipulating Defendant and the FTC stipulate and the Court finds as 

follows: 

1. This Court has jurisdiction over this matter. 

2. The Complaint charges that Defendants participated in deceptive and 

unfair acts or practices in violation of Sections 5(a) and 12 of the FTC Act, 15 

U.S.C. §§ 45(a) and 52, Section 4 of ROSCA, 15 U.S.C. § 8403, Section 907(a) of 

EFTA, 15 U.S.C. § 1693e(a), Section 1005.10(b) of EFTA’s implementing 

Regulation E, 12 C.F.R. § 1005.10(b), and Section 310.4(b)(1)(v) of the FTC’s 

4 
 

 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 5 of 35 Page ID #:4279 

Telemarketing Sales Rule (“TSR”), 16 C.F.R. § 310.4(b)(1)(v), in the marketing of 

 Defendants’ oral film strips and the Rengalife multilevel marketing program. 

3. Stipulating Defendant neither admits nor denies any of the allegations 

in the Complaint, except as specifically stated in this Order. Only for purposes of 

this action, Stipulating Defendant admits the facts necessary to establish 

jurisdiction. 

4. Stipulating Defendant waives any claim that she may have under the 

Equal Access to Justice Act, 28 U.S.C. § 2412, concerning the prosecution of this 

action through the date of this Order, and agrees to bear her own costs and attorney 

fees. 

5. Stipulating Defendant and the Commission waive all rights to appeal 

or otherwise challenge or contest the validity of this Order. 

DEFINITIONS

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

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

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

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

B. “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 means to offer, sell, or 

distribute Goods or Services. The definition of Business Venture includes multilevel marketing programs. 

C. “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. 

5 
 

 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 6 of 35 Page ID #:4280 

D. “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. 

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. 

6 
 

 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 7 of 35 Page ID #:4281 

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.

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

including, but not limited to, TBX-FREE, Eupepsia Thin, Prolongz, or any other 

oral film strip product. 

F. “Defendant(s)” means all of the Defendants, individually, 

collectively, or in any combination.

G. “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, 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.

H. “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.

7 
 

 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 8 of 35 Page ID #:4282 

I. “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.

J. “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. 

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

programs. 

L. “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. 

M. “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.

N. “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.

O. “Preauthorized Electronic Fund Transfer” means an electronic 

fund transfer authorized in advance to recur at substantially regular intervals. 

8 
 

 1 

 2 

 3 

 4 

 5 

 6 

 7 

 8 

 9 

 10 

 11 

 12 

 13 

 14 

 15 

 16 

 17 

 18 

 19 

 20 

 21 

 22 

 23 

 24 

 25 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 9 of 35 Page ID #:4283 

P. “Stipulating Defendant” means Danielle Cadiz, a/k/a Danielle 

Walker. 

Q. “Telemarketing” means any plan, program, or campaign that is 

conducted to induce the purchase of Goods or Services or a charitable contribution, 

by use of one or more telephones and which involves more than one interstate 

telephone call. 

ORDER 

I. PROHIBITED REPRESENTATIONS REGARDING HEALTHRELATED CLAIMS REQUIRING HUMAN CLINICAL TESTING 

FOR SUBSTANTIATION 

IT IS ORDERED that Stipulating Defendant, Stipulating Defendant’s 

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; 

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; 

9 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 10 of 35 Page ID

 #:4284 

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, Stipulating Defendant possesses and relies upon competent and 

reliable scientific evidence substantiating that the representation is true. For 

purposes of this Section, competent and reliable scientific evidence shall consist of 

human clinical testing of the Covered Product, or of an Essentially Equivalent 

Product, that is sufficient in quality and quantity based on standards generally 

accepted by experts in the relevant disease, condition, or function to which the 

representation relates, when considered in light of the entire body of relevant and 

reliable scientific evidence, to substantiate that the representation is true. Such 

testing must be: (1) randomized, double-blind, and placebo-controlled; and (2) 

conducted by researchers qualified by training and experience to conduct such 

testing. In addition, all underlying or supporting data and documents generally 

accepted by experts in the field as relevant to an assessment of such testing as 

described in the Section entitled Preservation of Records Relating to Competent 

and Reliable Human Clinical Tests or Studies must be available for inspection and 

production to the Commission. Persons covered by this Section have the burden of 

proving that a product satisfies the definition of Essentially Equivalent Product. 

II. PROHIBITED REPRESENTATIONS REGARDING OTHER 

HEALTH-RELATED CLAIMS 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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 

10 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 11 of 35 Page ID

 #:4285 

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: 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, Stipulating Defendant possesses and relies 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 

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. 

11 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 12 of 35 Page ID

 #:4286 

III. PRESERVATION OF RECORDS RELATING TO COMPETENT 

AND RELIABLE HUMAN CLINICAL TESTS OR STUDIES

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

or study (“test”) upon which Stipulating Defendant relies to substantiate any claim 

covered by this Order, she 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 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) Stipulating Defendant; (2) Stipulating Defendant’s officers, 

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

12 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 13 of 35 Page ID

 #:4287 

concert or participation with Stipulating Defendant; (4) any person or entity 

affiliated with or acting on behalf of Stipulating Defendant; (5) any supplier of any 

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

product’s manufacturer; or (6) the supplier or manufacturer of such product. 

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 

Stipulating Defendant, Stipulating Defendant 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. 

IV. PROHIBITED MISREPRESENTATIONS REGARDING TESTS,

STUDIES, OR OTHER RESEARCH 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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:

13 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 14 of 35 Page ID

 #:4288 

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; or 

7. Treat or prevent premature ejaculation; 

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 

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

interpretations of any test, study, or other research. 

V. FDA-APPROVED CLAIMS 

IT IS FURTHER ORDERED that nothing in this Order prohibits 

Stipulating Defendant, Stipulating Defendant’s officers, agents, employees, and 

attorneys, or all other persons in active concert or participation with any of them

from:

A. For any Drug, making a representation that is approved in labeling for 

such Drug 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; and 

B. For any product, making a representation that is specifically 

authorized for use in labeling for such product by regulations promulgated by the 

14 
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. 

VI. PROHIBITION AGAINST MISREPRESENTATIONS OR

UNSUBSTANTIATED CLAIMS REGARDING EARNINGS 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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 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 

 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 15 of 35 Page ID

 #:4289 

15 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 16 of 35 Page ID

 #:4290 

representation is true, not misleading, and, at the time it is made, Stipulating 

Defendant possesses and relies upon competent and reliable evidence that is 

sufficient to substantiate that the representation is true. 

VII. PROHIBITED MISREPRESENTATIONS REGARDING 

ENDORSEMENTS 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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, 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 of the Good or Service.

VIII. PROHIBITED MISREPRESENTATIONS REGARDING U.S. 

ORIGIN CLAIMS 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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, 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 

16 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 17 of 35 Page ID

 #:4291 

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. 

IX. PROHIBITED MISREPRESENTATIONS OF OTHER MATERIAL 

FACTS

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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 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; or 

17 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 18 of 35 Page ID

 #:4292 

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. 

X. PERMANENT BAN ON ROBOCALLS AND RINGLESS 

VOICEMAILS

IT IS FURTHER ORDERED that Stipulating Defendant is permanently 

restrained and enjoined from initiating telephone calls delivering prerecorded 

messages, including ringless voicemails, whether directly or through an 

intermediary. 

XI. PROHIBITION AGAINST MISREPRESENTATIONS REGARDING 

NEGATIVE OPTION SALES 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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 for sale, or sale of any Good or Service with a Negative 

Option Feature, are permanently restrained and enjoined from misrepresenting, or 

assisting others in misrepresenting, expressly or by implication, any material fact, 

including:

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

initial Good or Service; 

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

C. 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; 

18 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 19 of 35 Page ID

 #:4293 

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

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

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

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

used; 

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

Charged unless the consumer takes an affirmative action on the Negative Option 

Feature; 

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

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

exchange, or repurchase policy for the Good or Service. 

Compliance with this Section is separate from, and in addition to, the disclosures 

required by Sections entitled Required Disclosures Relating to Negative Option 

Features and Obtaining Express Informed Consent. 

XII. REQUIRED DISCLOSURES RELATING TO NEGATIVE OPTION 

FEATURES 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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 for sale, or sale of any Good or Service with a Negative 

Option Feature, are permanently restrained and enjoined from:

A. Representing, or assisting others in representing, expressly or by 

implication, that any Good or Service is being offered on a free, trial, no 

obligation, reduced, or discounted basis, without disclosing Clearly and 

Conspicuously, and immediately adjacent to, any such representation:

1. The extent to which the consumer must take affirmative 

action(s) to avoid any Charges: (a) for the offered Good or Service, (b) of 

19 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 20 of 35 Page ID

 #:4294 

an increased amount after the trial or promotional period ends, and (c) on a 

recurring basis;

2. The total cost (or range of costs) the consumer will be Charged

and, if applicable, the frequency of such Charges unless the consumer timely 

takes steps to prevent or stop such Charges; and 

3. The deadline(s) (by date or frequency) by which the consumer 

must affirmatively act in order to stop all recurring Charges. 

B. Obtaining Billing Information from a consumer for any transaction 

without first disclosing Clearly and Conspicuously, and immediately adjacent to 

where a consumer provides Billing Information: 

1. The extent to which the consumer must take affirmative 

action(s) to avoid any Charges: (a) for the offered Good or Service, (b) of 

an increased amount after the trial or promotional period ends, and (c) on a 

recurring basis;

2. The total cost (or range of costs) the consumer will be Charged, 

the date the initial Charge will be submitted for payment, and, if applicable, 

the frequency of such Charges unless the consumer timely takes affirmative 

steps to prevent or stop such Charges; 

3. The deadline(s) (by date or frequency) by which the consumer 

must affirmatively act in order to stop all recurring Charges; 

4. The name of the seller or provider of the Good or Service and, 

if the name of the seller or provider will not appear on billing statements, the 

billing descriptor that will appear on such statements; 

5. A description of the Good or Service; 

6. Any Charge or cost for which the consumer is responsible in 

connection with the cancellation of an order or the return of a good; and 

20 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 21 of 35 Page ID

 #:4295 

7. The simple cancellation mechanism to stop any recurring 

Charges, as required by the Section entitled Simple Mechanism to Cancel 

Negative Option Feature. 

C. Failing to send the consumer: 

1. Immediately after the consumer’s submission of an online 

order, written confirmation of the transaction by email. The email must 

Clearly and Conspicuously disclose all the information required by 

Subsection XII.B, and contain a subject line reading “Order Confirmation” 

along with the name of the Good or Service, and no additional information; 

or 

2. Within two (2) days after receipt of the consumer’s order by 

mail or telephone, a written confirmation of the transaction, either by email 

or first class mail. The email or letter must Clearly and Conspicuously 

disclose all the information required by Subsection XII.B. The subject line 

of the email must Clearly and Conspicuously state “Order Confirmation” 

along with the name of the Good or Service, and nothing else. The outside 

of the envelope must Clearly and Conspicuously state “Order Confirmation” 

along with the name of the product or service, and no additional information 

other than the consumer’s address, the Stipulating Defendant’s return 

address, and postage. 

XIII. OBTAINING EXPRESS INFORMED CONSENT 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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 for sale, or sale of any Good or Service with a Negative 

Option Feature, are permanently restrained and enjoined from using, or assisting 

others in using, Billing Information to obtain payment from a consumer, unless 

21 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 22 of 35 Page ID

 #:4296 

Stipulating Defendant first obtains the express informed consent of the consumer 

to do so. To obtain express informed consent, Stipulating Defendant must:

A. For all written offers (including over the Internet or other web-based 

applications or services), obtain consent through a check box, signature, or other 

substantially similar method, which the consumer must affirmatively select or sign 

to accept the Negative Option Feature, and no other portion of the offer. 

Defendant shall disclose Clearly and Conspicuously, and immediately adjacent to 

such check box, signature, or substantially similar method of affirmative consent, 

only the following, with no additional information: 

1. The extent to which the consumer must take affirmative 

action(s) to avoid any Charges: a) for the offered Good or Service, b) of an 

increased amount after the trial or promotional period ends, and c) on a 

recurring basis;

2. The total cost (or range of costs) the consumer will be Charged

and, if applicable, the frequency of such Charges unless the consumer timely 

takes affirmative steps to prevent or stop such Charges; and 

3. The deadline(s) (by date or frequency) by which the consumer 

must affirmatively act in order to stop all recurring Charges. 

B. For all oral offers, prior to obtaining any Billing Information from the 

consumer: 

1. Clearly and Conspicuously disclose the information contained 

in Subsection XII.B; and 

2. Obtain affirmative unambiguous express oral confirmation that 

the consumer: a) consents to being Charged for any Good or Service, 

including providing, at a minimum, the last four (4) digits of the consumer’s 

account number to be Charged, b) understands that the transaction includes a 

Negative Option Feature, and c) understands the specific affirmative steps 

the consumer must take to prevent or stop further Charges. 

22 
 

Provided further that, for transactions conducted through Telemarketing, 

Stipulating Defendant shall maintain for three (3) years from the date of 

each transaction an unedited voice recording of the entire transaction, 

including the prescribed statements set out in Subsection XII.B. Each 

recording must be retrievable by date and by the consumer’s name, 

telephone number, or Billing Information, and must be provided upon 

request to the consumer, the consumer’s bank, or any law enforcement 

entity. 

XIV. SIMPLE MECHANISM TO CANCEL NEGATIVE OPTION 

FEATURE 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s officers, agents, employees, 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 for sale, or sale of any Good or Service with a Negative Option Feature, 

are permanently restrained and enjoined from failing to provide a simple 

mechanism for the consumer to: (1) avoid being Charged, or Charged an increased 

amount, for the Good or Service and (2) immediately stop any recurring Charges. 

Such mechanism must not be difficult, costly, confusing, or time consuming, and 

must be at least as simple as the mechanism the consumer used to initiate the 

Charge(s). In addition: 

A. For consumers who entered into the agreement to purchase a Good or 

Service including a Negative Option Feature over the Internet or through other 

web-based applications or services, Stipulating Defendant must provide a 

mechanism, accessible over the Internet or through such other web-based 

application or service that consumers can easily use to cancel the Good or Service 

and to immediately stop all further Charges. 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 23 of 35 Page ID

 #:4297 

23 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 24 of 35 Page ID

 #:4298 

B. For consumers who entered into the agreement to purchase a Good or 

Service including a Negative Option Feature through an oral offer and acceptance, 

Stipulating Defendant must maintain a telephone number and a postal address that 

consumers can easily use to cancel the Good or Service and to immediately stop all 

further Charges. Stipulating Defendant must assure that all calls to this telephone 

number shall be answered during normal business hours and that mail to the postal 

address is retrieved regularly. 

XV. PROHIBITION AGAINST UNAUTHORIZED CHARGES 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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 for sale, or sale of any Good or Service without a Negative 

Option Feature, 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. 

XVI. PROHIBITION AGAINST DEBITING CONSUMERS’ BANK 

ACCOUNTS WITHOUT AUTHORIZATION 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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 

24 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 25 of 35 Page ID

 #:4299 

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.

XVII.MONETARY JUDGMENT AND SUSPENSION 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of Eighteen Million Two Hundred Thousand

Dollars ($18,200,000) is entered in favor of the Commission against Stipulating 

Defendant as equitable monetary relief. 

B. This judgment is suspended, subject to the Subsections below. 

C. The Commission’s agreement to the suspension of the judgment is

expressly premised upon the truthfulness, accuracy, and completeness of 

Stipulating Defendant’s sworn financial statements and related documents 

(collectively, “financial representations”) submitted to the Commission, namely: 

1. The Financial Statement of Individual Defendant Danielle 

Walker a/k/a Danielle Cadiz signed on October 18, 2018, including the 4 

.zip file attachments containing supporting documentation;

2. The additional documentation submitted by secure electronic 

transmission from Stipulating Defendant’s counsel Jesse Thaler to 

Commission counsel Elizabeth Sanger on October 19, 2018, including:

a. Statement of Policy Cost and Benefit Information 

(Protective Life Insurance Company); 

b. A list of credit accounts issued in the name of Stipulating 

Defendant and/or her spouse;

c. A statement specifying Stipulating Defendant’s income 

from Runaway Products for the years 2013 through 2015; 

and 

d. A 20-page document titled, “Misc Items in 

possession.pdf,” containing information about the 

25 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 26 of 35 Page ID

 #:4300 

employment and income of Stipulating Defendant and her 

spouse, Stipulating Defendant’s stock holdings, and 

Stipulating Defendant’s retirement plan; 

3. The Declaration of Danielle Cadiz Re: Business Activities and 

Employment Since Redwood Scientific Technologies, Inc. signed on 

October 19, 2018. 

D. The suspension of the judgment will be lifted as to Stipulating

Defendant if, upon motion by the Commission, the Court finds that Stipulating 

Defendant failed to disclose any material asset, materially misstated the value of 

any asset, or made any other material misstatement or omission in the financial 

representations identified above. 

E. If the suspension of the judgment is lifted, the judgment becomes 

immediately due as to Stipulating Defendant in the amount specified in Subsection 

A above (which the parties stipulate only for purposes of this Section represents 

the consumer injury alleged in the Complaint), less any payment previously made 

pursuant to this Section, and any payment(s) made by or on behalf of any other 

Defendant to the Commission pursuant to a Final Order in this action, plus interest 

computed from the date of entry of this Order. 

XVIII. ADDITIONAL MONETARY PROVISIONS 

IT IS FURTHER ORDERED that: 

A. Stipulating Defendant relinquishes dominion and all legal and 

equitable right, title, and interest in all assets transferred pursuant to this Order and 

may not seek the return of any assets. 

B. The facts alleged in the Complaint will be taken as true, without 

further proof, in any subsequent civil litigation by or on behalf of the Commission, 

including in a proceeding to enforce its rights to any payment or monetary 

judgment pursuant to this Order, such as a nondischargeability complaint in any 

bankruptcy case. 

26 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 27 of 35 Page ID

 #:4301 

C. The facts alleged in the Complaint establish all elements necessary to 

sustain an action by the Commission pursuant to Section 523(a)(2)(A) of the 

Bankruptcy Code, 11 U.S.C. § 523(a)(2)(A), and this Order will have collateral 

estoppel effect for such purposes. 

D. Stipulating Defendant acknowledges that her Taxpayer Identification 

Numbers (Social Security Numbers or Employer Identification Numbers), which 

she previously submitted to the Commission, may be used for collecting and 

reporting on any delinquent amount arising out of this Order, in accordance with 

31 U.S.C. § 7701.

E. All money paid to the Commission pursuant to this Order may be 

deposited into a fund administered by the Commission or its designee to be used 

for equitable relief, including consumer redress and any attendant expenses for the 

administration of any redress fund. If a representative of the Commission decides 

that direct redress to consumers is wholly or partially impracticable or money 

remains after redress is completed, the Commission may apply any remaining 

money for such other equitable relief (including consumer information remedies) 

as it determines to be reasonably related to Defendants’ practices alleged in the 

Complaint. Any money not used for such equitable relief is to be deposited to the 

U.S. Treasury as disgorgement. Stipulating Defendant has no right to challenge 

any actions the Commission or its representatives may take pursuant to this 

Subsection. 

F. The Asset freeze of the February 26, 2019, Corrected Stipulated

Preliminary Injunction as to Defendant Danielle Cadiz (Dkt. No. 86) is dissolved 

as to Stipulating Defendant and any preliminary injunction as to Stipulating 

Defendant is superseded by this Order. All Assets of Stipulating Defendant shall 

be released upon entry of this Order, including Stipulating Defendant’s Capital 

One account ending #6016; Capital One account ending #8075; US Bank account 

ending #9004; Bank of America account ending #6326; and interest in the real 

27 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 28 of 35 Page ID

 #:4302 

property in Elsinore, CA reported in the Financial Statement listed in Section 

XVII.C.1 of this Order as Stipulating Defendant’s primary residence. 

XIX. CUSTOMER INFORMATION 

IT IS FURTHER ORDERED that Stipulating Defendant, Stipulating 

Defendant’s 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: 

A. Disclosing, using, or benefitting, or assisting others in disclosing, 

using, or benefitting, from customer information, including the name, address, 

telephone number, email address, social security number, other identifying 

information, or any data that enables access to a customer’s account (including a 

credit card, bank account, or other financial account), that Stipulating Defendant 

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 

B. Failing to destroy such customer information in all forms in her 

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. 

XX. COOPERATION 

IT IS FURTHER ORDERED that Stipulating Defendant must fully 

cooperate with representatives of the Commission and the court-appointed 

Receiver in this case and in any investigation related to or associated with the 

transactions or the occurrences that are the subject of the Complaint. Stipulating 

Defendant must provide truthful and complete information, evidence, and

testimony. Stipulating Defendant must appear for interviews, discovery, hearings, 

trials, and any other proceedings that a representative of the Commission or the 

28 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 29 of 35 Page ID

 #:4303 

Receiver may reasonably request upon 7 days’ written notice, or other reasonable 

notice, at such places and times as a Commission representative may designate, 

without the service of a subpoena. 

XXI. ORDER ACKNOWLEDGMENTS

IT IS FURTHER ORDERED that Stipulating Defendant obtain 

acknowledgments of receipt of this Order: 

A. Stipulating Defendant, within 7 days of entry of this Order, must 

submit to the Commission an acknowledgment of receipt of this Order sworn 

under penalty of perjury. 

B. For 5 years after entry of this Order, Stipulating Defendant, for any 

business that she, 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 (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 Stipulating Defendant 

delivered a copy of this Order, she must obtain, within 30 days, a signed and dated 

acknowledgment of receipt of this Order. 

XXII. COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Stipulating Defendant make timely 

submissions to the Commission:

A. One year after entry of this Order, Stipulating Defendant must submit 

a compliance report, sworn under penalty of perjury. Stipulating Defendant must: 

29 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 30 of 35 Page ID

 #:4304 

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

she performs services whether as an employee or otherwise and any entity in 

which she has any ownership interest; 

3. Describe in detail her 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 Stipulating Defendant; 

5. Identify all of her 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 Stipulating Defendant must describe if she knows or 

should know due to her own involvement); 

7. Describe in detail whether and how Stipulating 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 10 years after entry of this Order, Stipulating Defendant must 

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; 

30 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 31 of 35 Page ID

 #:4305 

2. Title or role in any business activity, including any business for 

which she performs services whether as an employee or otherwise and any 

entity in which Stipulating 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 Stipulating Defendant has any 

ownership interest in or controls directly or indirectly that may affect 

compliance obligations arising under this Order, including: creation, 

merger, sale, or dissolution of the entity or any subsidiary, parent, or affiliate 

that engages in any acts or practices subject to this Order. 

C. Stipulating Defendant must submit to the Commission notice of the 

filing of any bankruptcy petition, insolvency proceeding, or similar proceeding by 

or against Stipulating 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. Danielle Cadiz, X190001. 

31 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 32 of 35 Page ID

 #:4306 

XXIII. RECORDKEEPING 

IT IS FURTHER ORDERED that Stipulating Defendant must create 

certain records for 10 years after entry of the Order, and retain each such record for 

5 years. Specifically, Stipulating Defendant, for any business that she, individually 

or collectively with Jason Cardiff, Eunjung Cardiff, or any 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; 

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. 

XXIV. COMPLIANCE MONITORING 

IT IS FURTHER ORDERED that, for the purpose of monitoring 

Stipulating Defendant’s compliance with this Order, including the financial 

representations upon which the judgment was suspended: 

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

the Commission, Stipulating Defendant 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 

32 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 33 of 35 Page ID

 #:4307 

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 Stipulating Defendant. Stipulating Defendant must 

permit representatives of the Commission to interview any employee or other 

person affiliated with her who has agreed to such an interview. The person 

interviewed may have counsel present. 

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 Stipulating 

Defendant, pursuant to Section 604(1) of the Fair Credit Reporting Act, 15 U.S.C. 

§1681b(a)(1). 

XXV. 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. 

XXVI. LIMITED EFFECT OF THIS ORDER 

IT IS FURTHER ORDERED that this Order is entered pursuant to the 

agreement of the Stipulating Defendant and the FTC. The approval of the terms of

this Order will not affect a later determination as to whether the same or similar 

terms proposed by the FTC are appropriate with respect to any other Defendant in 

33 
 

 5 

 10 

 15 

 20 

 25 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 34 of 35 Page ID

 #:4308 

this matter. Any such later determinations will be made based on a de novo review

of the relevant facts and circumstances. 

For Plaintiff Federal Trade Commission: 

Dated: March __, 2019 ________________________ 

 ELIZABETH JONES SANGER

 esanger@ftc.gov; (202) 326-2757 

 SHIRA D. MODELL 

 smodell@ftc.gov; (202) 326-3116 

 JAMES A. PRUNTY 

 jprunty@ftc.gov; (202) 326-2438 

 EDWIN RODRIGUEZ 

 erodriguez@ftc.gov; (202) 326-3147 

 Federal Trade Commission

 600 Pennsylvania Ave., NW 

 Washington, DC 20580 

Fax: (202) 326-3259 

 STACY PROCTER (Local Counsel) 

 sprocter@ftc.gov; (310) 824-4300 

 Federal Trade Commission

 10990 Wilshire Blvd., Suite 400 

 Los Angeles, CA 90024

 Fax: (310) 824-4380 

 Attorneys for Plaintiff

 FEDERAL TRADE COMMISSION

For Defendant Danielle Cadiz:

Dated: March ___, 2019 _____________________________ 

DANIELLE WALKER, a/k/a Danielle Cadiz, 

individually 

34 
 

 

 5 

 10 

 15 

 20 

 25 

_______________________________ 

 1 

 2 

 3 

 4 

 6 

 7 

 8 

 9 

 11 

 12 

 13 

 14 

 16 

 17 

 18 

 19 

 21 

 22 

 23 

 24 

 26 

 27 

 28 

Case 5:18-cv-02104-SJO-PLA Document 114 Filed 05/16/19 Page 35 of 35 Page ID

 #:4309 

Dated: March ___, 2019 ________________________ 

JESSE J. THALER 

Thaler Law 

17011 Beach Blvd., Fl. 9 

Huntington Beach, CA 92647 

Attorney for DEFENDANT DANIELLE CADIZ 

SO ORDERED this 16th day of May , 2019. 

UNITED STATES DISTRICT JUDGE 

35