FTC Announces Settlement with Hoodia Marketers

WASHINGTON—FTC announced a settlement with South Jordan, Utah-based Ultralife Fitness and its officers over charges of deceptive marketing and violations of electronic transfer of funds regulations. According to FTC, the company marketed free samples of a hoodia weight loss supplement, with a request for credit card information to cover shipping; however, the consumers were enrolled into programs for periodic shipments of the product ($50 a pop) and fitness instruction ($30 a month), and were charged before product was received. Further, FTC charged the defendants with failing to adequately disclose information about the continuity plans and cancellation policies.

The defendants will pay $150,000 of the $9.9 million charged in the settlement, based on inability to pay. Additionally, the defendants are barred from misrepresenting any material fact in relation to a dietary supplement and must follow all legal regulations related to electronic billing and disclose all material facts to consumers related to continuity plans.