FTC Fines Weight-Loss Patch Maker

WASHINGTON—Transdermal Products International Marketing Corp. and its owner, William H. Newbauer, are banned from selling weight-loss patches in the future and will pay $180,000 to settle FTC charges of false and unsubstantiated advertising claims for their weight-loss patches.

FTC alleged the company sold a supposed weight-loss patch to about two dozen domestic and foreign retailers, and provided them with samples of deceptive advertising and bogus substantiation materials, including purported expert endorsements and clinical studies of their weight-loss patch by Marvin Kaplan. The sample advertising made false or unsubstantiated claims about the product, including that it caused weight loss and that the main ingredient, sea kelp, had been approved by FDA for weight loss. Retailers used these materials to sell the weight-loss patches to consumers both domestically and abroad.

The FTC order requires the company and its owner cover the fine in three $60,000 payments over 18 months. If they fail to make their payments on time or misrepresent their ability to pay, an avalanche clause triggers a $900,000 judgment against the defendants.

In addition to banning them from selling weight-loss patches, the order also bars the defendants from making claims that have been identified by FTC as raising “red flags” for false weight-loss advertising. Such red flags include: a product worn or rubbed on the skin is effective for weight loss; it causes substantial weight-loss without reducing calories or increasing exercise; it safely enables users to lose more than three pounds per week for a period of more than four weeks; or it causes permanent weight loss. Also, the defendants cannot misrepresent that FDA has approved or is about to approve any transdermal product, dietary supplement or food; and they cannot claim that any such products cause weight loss, melt or burn body fat, or affect the body’s metabolism of fat unless they have competent and reliable scientific evidence to back up the claim. Finally, the order prohibits the defendants from providing their trade customers with the means and materials that make false and deceptive claims.