QVC Settles FTC Charges over Ad Claims

WASHINGTON—Multimedia retailer QVC will pay $7.5 million to settle federal charges that it made false and unsubstantiated claims about certain products in violation of FTC laws. The commission alleged QVC aired approximately 200 programs in which false and unsubstantiated claims were made about three dietary supplements—For Women Only weight loss pills, Lite Bites weight-loss bars, and Bee-Alive Royal Jelly supplements—and an anti-cellulite cream, Lipofactor Cellulite Target Lotion. FTC charged the dietary supplement ad claims violated a 2000 FTC order, while the lotion claims violated the FTC Act. Terms of the settlement include paying $6 million in consumer redress and a $1.5 million civic penalty, and expand the previous FTC order regarding airing unsubstantiated claims.

Larry Hayes, senior vice president and general counsel for QVC, said the company was driven to settle with FTC to avoid further legal expenses in connection with events that occurred more than five years ago. "When the vendors offered these products on air, QVC firmly believed, and still believes, there was no deception in the way they were presented," he said.

Hayes further noted FTC's requirement that QVC substantiate claims for such dietary supplements is fully consistent with QVC’s existing policy. "We are confident that our customers receive accurate information about products because we work very hard to ensure that the claims made on our programs about all of our products are supported by reliable scientific evidence," he said. "We will continue to promote quality products reliably and with integrity."

QVC filed claims against the companies that supplied the products and spokespeople who made the claims challegend by FTC. QVC settled with these individual cases after each company agreed to participate in the overall settlement of the case.