Final FTC Case Against Enforma Settled 28866

Final FTC Case Against Enforma Settled

WASHINGTONModern InteractiveTechnology Inc. (MIT), a California-based infomercial producer, and its twoexecutivesMark Levine and David Richmondagreed to settle charges by theFederal Trade Commission (FTC) concerning illegal claims for the Enforma Systemweight-loss program.

Unlike earlier agreements involving Enforma products FatTrapper and Exercise in a Bottle, the current settlement does not involvemonetary consumer redress but includes requirements that the defendants haveample scientific evidence to support any claims for future dietary supplements.The deal also prevents the misrepresentation of tests, expertise, education orqualifications of anyone involved in the marketing of future products. There isan avalanche clause in the settlement, by which a $2 million fine would bepayable if the defendants misrepresented their financial condition.

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