FTC Concludes Slim Down Solutions Case

FTC Concludes Slim Down Solutions Case

WASHINGTON--The U.S. District Court for the Southern District of Florida entered a stipulated modification on Oct. 6 settling the one remaining complaint count and the monetary judgment against Slim Down Solutions LLC (SDS) and its related entities and owners.

The judgment comes in response to the Jan. 21, 2003 Federal Trade Commission (FTC) filing of a suit seeking permanent injunctions and summary judgments against SDS, Slim Down Solution Inc., S.S.T. Management Inc., The KARA Group LLC, and their principles, Ronald and Kathleen Alarcon (collectively the SDS defendants); Maderia Management Inc. Polyglucosamine Ltd., and Steven Pierce (collectively the Maderia defendants).

In May 2004, the U.S. District Court for the Southern District of Florida granted summary judgment against the two sets of defendants and entered an Order and Judgment for Permanent Injunction and Other Equitable Relief against each. SDS was found to have used false claims stating D-glucosamine isolates dietary fat for elimination from the human body as waste and causes significant weight loss without diet or exercise. The orders bar SDS from making these claims for any product including Slim Down Solution, as well as from making claims that D-glucosamine products cause any weight loss at all. The defendants are further barred from making false or unsubstantiated efficacy or safety claims, or misrepresenting the results of any scientific test or study, in connection with the sale of any product.

In December 2003, the Alarcons filed for bankruptcy under Chapter 13 of the U.S. Bankruptcy Code. On May 14, 2004, the court found FTCs action against the Alarcons was not stayed because of the bankruptcy proceeding and granted FTCs motion for summary judgment against them.

As part of the stipulated modification to the final order entered by the Court on Oct. 6, the SDS defendants will dismiss their bankruptcy case and pay $725,000 in consumer redress. The Alarcons have put up their Florida home as collateral for payment of this judgment, according to FTC (www.ftc.gov). The agreement also contains an avalanche clause for the original $30 million judgment. The Maderia defendants remain liable for the original judgment.