In our November 2009, we brought your attention to the new regulations created by the US Federal Trade Commission in relation to the use of online testimonials, which includes provisions relating to claims in regards to weight loss products.
In January, the Federal Trade Commission continued its crusade against misleading claims in regards to weight loss products, succeeding in a $US2 million claim against a Bronson Partners LLC, a manufacturer who supplied a „Chinese Tea Diet‟, which was sold on the premise that drinking the tea after each meal would result in the loss of up to six pounds per week. The company also marketed a „Bio-slim patch‟, which contained extracts of fucus, garcinia and guarana plants. It was claimed that the „synergy‟ between these three ingredients would result in „repulsive, excess fatty tissue „ to „disappear at a spectacular rate‟, provided the patch was worn for 24hours a day for a period of three months.
In describing the products, Judge Stefan Underhill cited “obvious and widespread violations” of the Federal Trade Commission Act, going further to state, “Future violations of a similar nature would surely result in financial harm to consumers, and possible physical harm if consumers engage in risky weight-loss techniques in reliance on (the) defendants’ misleading representations.”
The company was ordered to pay $2 million, was prohibited from selling or advertising weight loss products. Further, the defendants were ordered to assist the Federal Trade Commission in locating consumers of their products so reparation payments could be made.
The Federal Trade Commission‟s message is clear: false claims in regards to weight loss products will be dealt with strictly and severely. In light of this ruling, and the recently enacted guidelines, business owners involved in the weight loss industry would be well advised to seek clarification on their own business activities if they are in doubt of their adherence to Federal Trade Commission Guidelines.
PDF Disclaimer: The above information provided by Inveiss Legal Pty Ltd is intended only as a guide. The impact of laws can vary widely based on the specific facts of each case. Further, given the changing nature of laws and the inherent speed of electronic communication, there may be inaccuracies in the above information. As such, this information is provided on the understanding that Inveiss Legal Pty Ltd is not rendering any legal advice or services. The information contained herein is not a substitute for qualified, independent legal advice and the same should be sort prior to engaging in any activity relating to the above subject-matter.
Although we have made every effort to ensure the information has been obtained from reliable sources, Inveiss Legal Pty Ltd is not responsible for any errors or omissions. In no event will Inveiss Legal Pty Ltd, or its directors, agents or employees, be liable for any decision made, or withheld, in reliance of the information contained herein.
