HeightMax Makers Caught in FTC Avalanche 38430

TAMPA, Fla.A Florida-based firm that settled charges with the Federal Trade Commission (FTC) late last year over claims for its dietary supplements has been ordered to pay its full $1.9 million judgment, after the agency found Sunny Health Nutrition & Technology hid assets during the settlement proceedings. The company originally agreed to pay only $375,000 of the judgment, based on inability to pay, with an avalanche clause requiring full payment if the company had misrepresented its financial position. In fact, shortly after reaching the agreement, FTC (www.ftc.gov) found the company had kept at least $1.8 million in an undisclosed PayPal account.

The primary focus of the FTC settlement was HeightMax, which was advertised as a dietary supplement having the ability to increase height in users ages 12 to 25, up to an additional two to three inches in six months. It was also promoted as having clinical tests proving its efficacy in increasing height, in addition to claims it could also increase lean body mass and reduce body fat. Other products involved in the case were Liposan Ultra, marketed for weight loss, and Osteo-Vite, targeted for bone building.

Under the new order, entered in U.S. District Court, Middle District of Florida, the defendants must pay the entire $1.9 million, and FTC will set up a refund program for purchasers of the companys products. The terms of the original settlement, in which the defendants agreed any future marketing for any dietary supplement, food or drug must be true, non-misleading and substantiated, and which barred them from misrepresenting endorsements, including the existence or expertise of any endorser, are still in effect.