Alleged Fraud by Weight-Loss Companies

Alleged Fraud by Weight-Loss Companies

MILWAUKEE--According to a story by the Associated Press (AP),Wisconsin is seeking federal fraud charges against three weight-loss companiesfor having milked millions from consumers for worthless products. The chargesare against Lipo Slim Inc., Actislim and e4L (Everything for Less) Inc. Customercomplaints ranged from not receiving products to receiving products that werebroken or did not work.

New York-based Lipo Slim, which markets briefs that claim to get rid ofcellulite by dissolving fat while sleeping, is being charged for alleged mailfraud. In 1999, after facing fraud allegations in Iowa, Lipo Slim was ordered tostate "not available in Iowa" in national ads for the briefs.

West Orange, N.J.-based Actislim sells pills that the company claims burn fatwhile a person sleeps. However, some people never received the product, andWisconsin has referred Actislim to the Federal Trade Commission (FTC). In a Nov.21, 2000 posting on HealthBoards.com, one woman wrote "[Actislim] cashed mycheck. They got their money-- I got [nothing]."

E4L produces the Ab Rocker, which was named Infomercial of the Year in 2000.Nonetheless, consumers are complaining that they received a broken product andexperienced difficulties getting refunds. E4L has also been referred to the FTC.