Selfworx.com Settles FTC Charges, Will Pay $100K in Redress

Selfworx.com Settles FTC Charges, Will Pay $100K in Redress

WASHINGTONSelfworx.com, Iworxand Jeffrey Kral settled Federal Trade Commission (FTC) charges of false andunsubstantiated claims associated with two weight-loss products, Gel Thin andUltra LipoLean. As a condition of the settlement, signed on May 19, theScarborough, Mass.- based defendants will pay $100,000 in consumer redress andare barred from making false or unsubstantiated claims about any weight-lossproduct, program, dietary supplement, food or drug.

FTC filed a complaint in November 2004, alleging thedefendants claimed topical application of Gel Thin would result in weight loss,dissolve fat in days and remove cellulite from the body. FTC further allegedclaims for the gel product falsely referenced clinical studies for reduced fatand cellulite deposits. Unsubstantiated claims for Ultra LipoLean stated itcould cause rapid weight loss (4 lbs in one week) without dieting, and twotablets could absorb 20 g to 30 g of fat from a meal. The ads ran in major,nationwide print media.

The settlement also includes a $20 million avalanche clausefor the defendants and a $400,000 avalanche clause for relief defendant ShawnLyden, in the event any defendant misrepresented its financial status. Alldefendants must also maintain consistent recordkeeping for FTC monitoring, asoutlined by the settlement.