Final FTC Case Against Enforma Settled

WASHINGTON--Modern Interactive Technology Inc. (MIT), a California-based infomercial producer, and its two executives--Mark Levine and David Richmond--agreed to settle charges by the Federal Trade Commission (FTC) concerning illegal claims for the Enforma System weight-loss program.

Unlike earlier agreements involving Enforma products Fat Trapper and Exercise in a Bottle, the current settlement does not involve monetary consumer redress but includes requirements that the defendants have ample scientific evidence to support any claims for future dietary supplements. The deal also prevents the misrepresentation of tests, expertise, education or qualifications of anyone involved in the marketing of future products. There is an avalanche clause in the settlement, by which a $2 million fine would be payable if the defendants misrepresented their financial condition.

This agreement closes the chapter on Enforma judicial proceedings brought by FTC (www.ftc.gov). In April 2000, the agency settled the original charges against vendor Enforma Natural Products, requiring the company to pay $10 million in consumer redress. After back-and-forth district court decisions, a September 2004 final ruling allowed FTC to sue MIT, Levine and Richmond separate from Enforma for their active roles in editing, writing and producing the Enforma System infomercials.