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1 STATE OF FLORIDA OFFICE OF THE ATTORNEY GENERAL, DEPARTMENT OF LEGAL AFFAIRS IN THE INVESTIGATION OF: AG CASE NO. L Danik Spa, Inc. d/b/a Danik Med Spa, Respondent ~/ ASSURANCE OF VOLUNTARY COMPLIANCE 1. PURSUANT to the provisions of Chapter 501, Part II of the Florida Statutes, Florida's Deceptive and Unfair Trade Practices Act, the Office Of The Attorney General, Department of Legal Affairs (hereinafter referred to as the "Department"), caused an investigation to be made into certain acts and practices of Danik Spa, Inc. d/b/a Danik Med Spa, a Florida for-profit corporation (hereinafter, "Respondent"). 2. Danik Spa, Inc. ("Danik") is a medical spa with its principal place of business registered as Pines Boulevard, Pembroke Pines, Florida Respondent is prepared to enter into this Assurance of Voluntary Compliance (hereafter referred to as the "A VC") without an admission that Respondent violated Florida's Deceptive and Unfair Trade Practices Act or any other law and solely for the purpose of resolution of this matter with the Department. 4. Pursuant to Section (6), Florida Statutes, the Department agrees to accept this AVC in termination of its investigation as to Respondent solely as to the acts and practices that were the subject of the investigation. I. STIPULATED FACTS 5. The Department and Respondent hereby agree and stipulate to the following: 1

2 a. During the time frame beginning at least January 2011 through April 2013, Respondent has engaged in the business of offering and providing weight loss programs and services to consumers in Florida. b. The weight loss programs in question utilize prescription injections of Human Chorionic Gonadotropin ("HCG") in conjunction with calorie-restricted diets. These weight loss programs are hereinafter referred to as "HCG Weight-Loss Programs". Respondent began offering HCG Weight-Loss Programs in January of c. As of the Effective Date of this A VC, the Food and Drug Administration ("FDA") has not approved prescription HCG for use in weight loss. d. The Department has investigated allegations that Respondent advertised its HCG Weight-Loss Programs on its website without disclosing that HCG is not approved by the FDA for weight loss and without providing FDA disclosures on its website, located at e. Since it began offering HCG Weight-Loss Programs in January of 2011, Respondent represents that it has provided written consent forms ("Consent Forms") to its consumers that include the following disclaimer: FDA Disclaimer: HCG has not been demonstrated to be effective adjunctive therapy in the treatment of obesity. There is no substantial evidence that it increases weight loss beyond that resulting from caloric restriction, that it causes a more attractive or "normal" distribution of fat, or that it decreases the hunger and discomfort associated with calorierestricted diets. Before beginning any HCG Weight-Loss Program, Respondent represents that it obtains signed copies of the "Consent Forms" from its consumers. 2

3 f. Continue providing the disclaimer in part (d), above, to consumers with any materials provided in person to the consumers regarding HCG Weight-Loss Programs; g. Provide other and further disclosures in advertisements, on its website(s), and in person as appropriate. III. BUSINESS RECORDS 9. Respondent shall preserve and retain all relevant business and financial records relating to the acts and practices at issue in this A VC and other information reasonably sufficient to establish compliance with the provisions of this AVC for two (2) years from the date of this AVC, and shall provide reasonable access to such documents and information to the Department upon request. IV. CONSUMER RECORDS 10. Any personal or financial information of consumers in the custody, control or possession of Respondent shall be securely stored in accordance with law Respondents, including any representatives, agents, employees, successors, and assigns, shall not, directly or indirectly, market, sell, share or otherwise disclose the name, contact information, or financial information of any consumer in the care, custody or control of Respondents, in a manner prohibited by applicable laws. V. NOTICE 11. The obligations imposed by this A VC are continuing in nature and shall apply to Respondent's assigns as well as any and all new officers, employees, agents, representatives or any persons who become engaged in the business or activities of Respondent. 12. Respondent shall not affect any change in the form of doing business or the organizational identity of any of the existing business entities or create any new business entities as a method of avoiding the obligations and terms and conditions set forth in this AVC. 4

4 VI. RESTITUTION 13. Given the nature and scope of this investigation, the parties agree that no restitution need be provided. The Department reserves the right to seek restitution on behalf of consumers for any additional violations of the terms of this A VC, and for any other violations of Florida Statutes et seq. or any other applicable statutes. VII. FEES AND COSTS 14. Respondent shall contribute $2, (Two Thousand Dollars) to the Department pursuant to Section , Florida Statutes, in full and final payment of attorneys' fees, costs and investigative fees regarding this investigation. The payment shall be made by wire transfer, cashier's check or other certified funds payable to Department of Legal Affairs Revolving Trust Fund. The payment shall be submitted to Assistant Attorney General Ronald Honick simultaneous with the submission of Respondent's partially executed copy of this AVC. 15. The original AVC bearing the notarized signature of Respondent's representative and the payment(s) due hereunder will be delivered to the attention of Assistant Attorney General Ronald Honick, Office of Attorney General, Economic Crimes Division, 110 SE 6th Street, loth Floor, Fort Lauderdale, FL VIII. CIVIL PENAL TIES 16. Subject to Respondent's full, complete and timely compliance with the terms of this AVC, the Department is waiving, pursuant to this settlement and in consideration of the Respondent's performance hereunder, the civil penalties that may otherwise be due for violations under Sections or , Florida Statutes, of up to $15,000 per violation. 5

5 IX. FUTURE VIOLATIONS 17. It is hereby agreed by the parties that any failure to comply with the terms and conditions of this A VC by Respondent may be used as evidence of a potential violation of Chapter 501, Part II, Florida Statutes, and may subject Respondent to any and all civil penalties and sanctions authorized by law, including attorneys' fees and costs. X. EFFECTIVE DATE 18. The Effective Date of this AVC shall be the date of its execution and delivery by the Department. Acceptance by the Department shall be established by the signature of the South Florida Bureau Chief. The receipt by the Department of any monies pursuant to the AVC does not constitute acceptance by the Department, and any monies received shall be returned to Respondent if this AVC is not accepted and fully executed by the Department. XI. MISCELLANEOUS 19. It is further agreed that facsimile copies of signatures and notary seals may be accepted as original for the purposes of establishing the existence of this AVC, and this AVC may be executed in counterparts the compilation of which shall constitute the full and final agreement. 20. Notice to any of the parties to this AVC as may be required shall be made by certified mail and at the addresses set forth below unless any party notifies the other parties in writing of another address to which notices should be provided. 6

6 To Respondent: Danik Spa, Inc. Attention: German Segura P.O. Box Sunrise, Florida With Copy to: Allen Dell, P.A Attention: Cynthia Mikos, Esq. 202 South Rome Ave. Suite 100 Tampa, Florida To the Department: Ronald J. Honick Assistant Attorney General Office of the Attorney General 110 Southeast 6th Street loth Floor Fort Lauderdale, FL Nothing in this AVC is to be construed as a waiver of any private rights of any person or release of any private rights, causes of action, or remedies of any person against Respondent or any other person or entity. 22. It is a condition of each of the Department's obligations under this AVC that the Respondent has fully and timely performed all of Respondent's obligations previously due under this AVC. 23. This AVC is the final, complete, and exclusive statement of the parties' agreement on the matters contained in this AVC, and it supersedes all previous negotiations and agreements. Other than any representation expressly stated in this AVC, the parties have not made any representations or warranties to each other, and neither party's decision to enter into this A VC is based upon any statements by the other party outside of those in this A VC. 7

7 24. It is further agreed that the parties jointly participated in the negotiation of the terms of this AVC. No provision of this AVC shall be construed for or against any party on the grounds that one party had more control over establishing the terms of this AVC than another. 25. By my signature, I hereby affirm that I have authority to execute this AVC on behalf of the party indicated and, to the extent I am acting in a representative capacity, I am acting within the scope of my authority as corporate representative, and that by my signature I am binding the party/parties indicated to the terms and conditions of this AVC. SIGNATURE PAGES FOLLOW ON SEPARATE PAGES 8

8 For Respondent: DANIK SPA, INC. Signed: Its: By: STATE OF FLORIDA COUNTY OF BROWARD )ss )ss BEF~ 0ME, an offic~r duly authorized to take acknowledgme.nts i~ the. State of Florida,, appeared GS«?C...uQJ4 of Damk Spa, Inc., who produced t: L 'Vl as IdentificatiOn. He acknowledged before me that he executed the foregoing instrument for the purposes therein stated on them day of "!~L\.1, A Notary Public, State of Florida Commission I EE My comm. expires Aug. 23, 2018 Personally known or Produced Identification (check one) Type of Identification Produced: "t L \:> L. 9

9 For Department: OFFICE OF THE ATTORNEY GENERAL Assistant Attorney General 110 S.E. 6th Street, loth Floor Fort Lauderdale, FL (954) (954) facsimile myfloridalegal.com South Florida Interim Bureau Chief, Consumer Protection Division Department of Legal Affairs OFFICE OF THE ATTORNEY GENERAL 110 S.E. 6th Street, loth Floor Fort Lauderdale, FL (954) (954) facsimile 10