WeightWatchers 2002 Annual Report Download - page 16

Download and view the complete annual report

Please find page 16 of the 2002 WeightWatchers annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 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
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

Artal Ownership
In September 1999, Artal Luxembourg acquired us from Heinz. Following the acquisition, our
senior management team was reorganized, key employees invested approximately $4 million in our
company and a new performance-based stock option plan was put in place. The Invus Group, Ltd. is
the exclusive investment advisor of Artal Luxembourg and has extensive experience with branded
consumer businesses, including the turnaround of the Keebler Foods Company.
Regulation
A number of laws and regulations govern our advertising, franchise operations and relations with
consumers. The Federal Trade Commission, or FTC, and certain states regulate advertising, disclosures
to consumers and franchisees and other consumer matters. Our customers may file actions on their
own behalf, as a class or otherwise, and may file complaints with the FTC or state or local consumer
affairs offices and these agencies may take action on their own initiative or on a referral from
consumers or others.
During the mid-1990s, the FTC filed complaints against a number of commercial weight-loss
providers alleging violations of the Federal Trade Commission Act by the use and content of
advertisements for weight-loss programs that featured testimonials, claims for program success and
safety and statements as to program costs to participants. In 1997, we entered into a consent order with
the FTC settling all contested issues raised in the complaint filed against us. The consent order
requires us to comply with certain procedures and disclosures in connection with our advertisements of
products and services but does not contain any admission of guilt nor require us to pay any civil
penalties or damages.
Our overseas operations and franchises are also generally subject to regulations of the applicable
country regarding the offer and sale of franchises, the content of advertising and the promotion of diet
products and programs. Future legislation or regulations, including legislation or regulations affecting
our marketing and advertising practices, relations with consumers or franchisees, or our food products,
could have an adverse impact on us.
Employees and Service Providers
As of December 28, 2002, we had over 38,000 employees and service providers located in the
United States, the United Kingdom, Continental Europe, Australia and New Zealand. None of our
service providers or employees is represented by a labor union. We consider our employee relations to
be satisfactory.
Corporate Information
Corporate information, press releases and our periodic reports (e.g. 10-K’s, 10-Q’s, 8-K’s) are
available free of charge at www.WeightWatchersInternational.com as soon as reasonably practical after
such material is electronically filed with or furnished to the SEC (i.e., generally the same day as the
filing). Moreover, we also make available free of charge at that site the Section 16 reports filed
electronically by our officers and directors. Usually these are publicly accessible no later than the
business day following the filing.
9