Major Weight-Loss Makers Settle FTC Cases

WASHINGTONThe Federal Trade Commission (FTC) reached settlement agreements in four separate cases alleging deceptive marketing, including insufficiently supported claims, for four weight-loss supplementsXenadrine EFX, CortiSlim, TrimSpa and One-A-Day Weight Smart. The settlements, which total $25 million in cash and assets, do not declare guilt but do include provisions prohibiting future advertising claims.

"You wont find weight loss in a bottle of pills that claims it has the latest scientific breakthrough or miracle ingredient," said Deborah Platt Majoras, chairman of FTC. "Paying for fad science is a good way to lose cash, not pounds."

In the case involving Xenadrine EFXwhich contains green tea extract, bitter orange and caffeinetwo marketers of the product will pay between $8 million and $12 million to settle charges that its advertising claims of rapid and substantial weight loss were false and not supported by reliable scientific evidence. The complaint further alleged the advertisements misrepresented weight loss of individuals as achieved solely via Xenadrine EFX use, when endorsers, who were paid up to $20,000, actually engaged in rigorous diet and exercise regimens. Also, studies commissioned by the defendants failed to show significant weight loss compared to placebo.

Under the agreement, the defendants, Robert Chinery and RTC Research & Development LLC, are further prohibited from making claims on the benefits, performance, efficacy or safety of any weight-loss product or supplement unless substantiated by reliable scientific evidence. In addition to the FTC case penalties, the defendants recently settled civil cases to the tune of $22.75 million in redress.

For their part, the marketers of CortiSlim and CortiStress will hand over a total of $12 million in assets to settle FTC complaints alleging false and unsubstantiated claims of weight-loss and decreased risk of various health conditions. Included in the judgment are $8.4 million in cash from the sale of a residence previously acquired using CortiSlim profits, as well as funds from the forced liquidation of tax shelters created by two individual defendants, who had turned over $1.5 million in cash, a boat, a truck and real estate holdings to satisfy an earlier settlement. There are also typical restrictions on any future marketing activities by the CortiSlim defendants in the weight-loss and supplement arenas.

Similar provisions were agreed upon in the TrimSpa complaint, which includes $1.5 million to settle allegations of unsubstantiated claims of rapid weight loss due to appetite suppression via Hoodia content. At issue were testimonials, including those from Anna Nicole Smith, claiming losses of more than 50 pounds in a under nine months. Under the settlement agreement, the defendantsGoen Technologies, Nutramerica Corp., TrimSpa Inc. and Alexander Szynalskiare banned from making any such claims in the future for dietary supplements or related products.

For Bayer, the fine is $3.2 million to settle allegations its advertisements for One-A-Day violated an earlier FTC order requiring Bayers health claims to be supported by competent and reliable scientific evidence. One-A-Day, which contains green tea extract, was marketed with claims of increased metabolism, prevention of weight gain associated with age-related declines in metabolism, and improved weight control via metabolism enhancement. Once again, FTC is prohibiting Bayer from making unsupported claims in any future marketing of weight-loss or other supplement products.

FTC acknowledged information used in some of the cases was partially supplied by the National Advertising Division (NAD) of the Better Business Bureau (BBB). NAD launched a joint initiative with the Council for Responsible Nutrition (CRN) in September 2006 for the increased monitoring of advertising claims for dietary supplements. However, in announcing the joint initiative, Steven Mister, president of CRN, explained CRN was interested in fostering a program with NAD that would provide consequences to companies, but would also help minimize the need for FTC to get involved with more punitive actions.