Rexall Sundown Settles FTC Charges for $12 Million

Rexall Sundown Settles FTC Charges for $12 Million

WASHINGTON--The Federal Trade Commission (FTC)ordered Rexall Sundown Inc., a division of Royal Numico, to pay $12 million forusing misleading claims on its Cellasene product, which was purported to treatcellulite. The settlement is contingent on approval by the federal districtcourt in Miami and on approval of related settlements in class action lawsuitscurrently pending against Rexall in California and Florida.

FTC (www.ftc.gov) first filedthe lawsuit against Boca Raton, Fla.-based Rexall on July 20, 2000, for claimsmade on its Cellasene product. FTC reported Rexall had no clinical evidence tosupport claims that Cellasene "fights cellulite from the inside," butthe company felt differently. According to Rexall, the product had two clinicaltrials behind it and more were on the way. Rexall first introduced Cellasene inthe United States in 1999.

FTC charged that Cellasene, which contains ginkgo biloba,grapeseed extract, bladderwrack and sweet clover in addition to iodine, borageseed oil and fish oil, carried claims that the product increased the body'smetabolic rate and improved circulation, thereby reducing fluids and trappedfat. An eight-week regimen, consisting of three Cellasene geltabs per day, cost$180 to $240; sales totaled $54 million in 1999.

In addition to consumer redress, the company is prohibited frommaking any unsubstantiated cellulite reduction or elimination claims forCellasene, or any unsubstantiated claims regarding cellulite, body fat or weightloss in connection with the sale of any dietary supplement.

Rexall (www.rexallsundown.com)admits to no wrongdoing, according to company spokesperson Carol Walters."This settlement presents the opportunity to move on with our business andfocus on other products," she told INSIDER, adding that Rexalldiscontinued Cellasene two years ago, even though "we felt we met theapplicable labeling standards."