Weight-Loss Marketers Fined For False Ads

Federal Trade Commission Socks 4 Firms $25M For Exaggerated Claims

(CBS/AP)  The Federal Trade Commission on Thursday fined the marketers of four weight loss pills $25 million for making false advertising claims ranging from rapid weight loss to reducing the risk of serious illnesses like cancer, osteoporosis and Alzheimer's.

"Paying for fad science is a good way to lose cash, not pounds," FTC Chairman Deborah Platt Majoras said of the products, which advertised heavily on television, in magazines and on the Internet.

Majoras said the products would remain on store shelves, but the companies, which often used endorsements from celebrities like Anna Nicole Smith, would have to stop making the claims.

"Testimonials from individuals are not a substitute for science," she said. "And that's what Americans need to understand. The marketers are required to back up the claims with the science, and if they can't do that they can't make the claim."

Fines were levied against marketers of Xenadrine EFX, One A Day Weight Smart, CortiSlim and TrimSpa. The companies all say they have accepted the FTC fines, but without admitting guilt or accepting liability, CBS News correspondent Sandra Hughes reports.

Majoras said that some of the money paid as civil fines would be returned to consumers. "We always try to get money back when consumers have been deceived," she said. "In this instance, I'm pleased to say that I believe we're going to get millions back from some of these products to be able to return it to consumers."

The FTC’s complaint against two marketers of Xenadrine EFX — which contains green tea extract (EGCG), caffeine, and bitter orange (Citrus aurantium), among other ingredients — alleged that false or unsubstantiated claims were made, including that the product was clinically proven to cause rapid, substantial weight loss, and was more effective than leading ephedrine-based diet products. In fact, several studies showed that Xenadrine EFX failed to produce substantial weight loss. In some cases, subjects taking placebos over a 10-week study lost more weight.

The marketers will pay at least $8 million and as much as $12.8 million to settle the allegations, and will also pay at least an additional $22.75 million in an unrelated bankruptcy case, settling claims brought by creditors and consumers.

Seven marketers of CortiSlim and CortiStress will settle FTC charges over claims their products reduce weight permanently as well as prevent or lessen the risk of serious health conditions, such as osteoporosis, obesity, diabetes, Alzheimer's disease, cancer and cardiovascular disease. Many of the claims were made in deceptive television ads formatted as talk shows rather than commercials. In total, assets worth at least $12 million (including houses and boats purchased with company profits) will be recovered, to be used for consumer redress.

But critics call the FTC's actions a slap on the wrist to companies that make hundreds of millions. None of the four products will be taken off the shelves, Hughes reports.

"We need better laws, the one thing that I hope comes from this is the recognition and interest in regulating these kinds of products," said Dr. Louis Aronne, director of the Comprehensive Weight Control Center in New York City, and a professor at Weill-Cornell University Medical College.

According to the FTC, companies selling TrimSpa made claims for "painless" weight loss unsupported by scientific evidence, such as that one ingredient, Hoodia gordonii, enabled consumers to lose weight by suppressing appetite. Ads for TrimSpa's "Completely Ephedra-Free Formula X32" contains testimonials, such as celebrity endorser Anna Nicole Smith, who claimed to have lost 69 pounds in eight months from using TrimSpa.

In addition to paying $1.5 million, TrimSpa’s marketers — Goen Technologies Corp., Nutramerica Corp., TrimSpa, Inc., and Alexander Szynalski, also known as Alexander Goen — are prohibited from making any claims about health benefits, performance, efficacy, safety, or side effects of its products unless the claims are backed by scientific evidence.

The Bayer Corporation will pay a $3.2 million civil penalty to settle FTC allegations about claims made in ads for One-A-Day WeightSmart multivitamins, such as that the product would increase and enhance metabolism, and prevent weight gain associated with declining metabolism of people over age 30.

Efforts to reach the product manufacturers were not immediately successful.

Majoras cautioned the estimated 70 million Americans trying to lose weight not to turn to pills.

"You're not going to find weight loss in a bottle of pills," she said.

[sanfelz]

The FTC fines manufacturers that persist in making unsubstantiated statements. The FDA used to have the power to prevent these type of products from being sold. But Senator Hatch authored the DHSEA which prevents such actions but protects the makers and marketers of these nostrums. Many of these manufacturers are based in Sen Hatch's state of Utah.
The diet pill pushers took the ephedra out but left the bs intact.
Just like Bush, they made promises they should have known that they could not fulfill.

[getserious1]

Grumpas:

You are your own example! You have NO proof that Bush ever Lied. NONE. Yet you keep on claiming it as if it were fact. Thus spreading lies, just like the adds referred to in this article.

On the point of the article: I have always wondered why the FCC doesn't require 100% truth in advertising? If an add is found to contain falsehoods, then make the company pay a fine equivalent to the amount of the product's Gross sales. Thus removing the profit incentive to produce false advertising.

[grumpas]

The airwaves are full and running over with false ads! From a lying President who wraps himself in the flag and deludes a country he is protecting them from terrorist's to a so called Televangelist who sells his religion like a commodity at the supermarket! The listener has to use their better judgement! Most American's don't seem to possess that skill anymore! I am not really certain why? They are very easily led astray by false claims! They assume that because you heard it on television it has to be true (my father-in-law used to be the world's worst for that)! I never listen to political ads, but I do read and have already made up my mind on politic's! I sometimes pay attention to ads but I am to cynical to believe in miracles! I think American's need a good dose of healthy skepticism! If it sounds to good to be true it usually is!

[mjv2944]

If every time your a$$ sits down and your elbow bends and then your mouth opens, you can take all the potions and pills you want, but it will be for naught. Eat right and do a little exercise will go a long ways.

[joesal698]

"Weight-Loss Marketers Fined For False Ads"

How about Presidents who brought the country to war with false ads? Where is the same accountability?

[puzzler125]

One meal a day reduces your metabolism and you burn far fewer calories! It's also terrible for your blood sugar levels.

[grazinggoat]

No big difference between this and PatRobertson's miracle-cake and blessing-cookies. The later should be fined as well.

[bildooreilly]

Another thing is they try to make everyone think they need 3 meals a day... This might be true if you're actually doing something that requires a little exertion and burning some of that food off, but I find with my computer based lifestyle which isn't all that physically active one meal a day is more than enough. If you're sitting on your *** all day, (my job requires it) then don't eat so much, I'm not overweight, nor am I underweight.

[exusmcsgt]

ajapierce-

You are so correct. You don't have to be a card carrying genius to figure out that if you super size your meals, you'll super size your a$$.

These snake oil salesmen succeed because there are those out there gullible enough to think they can eat like elephants and look like gazelles.

[sanfelz]

Unsubstantiated claims are the bread-and-butter of the entire supplement industry. The manufacturers and the purveyors of almost all supplements take advantage of the public's disgust at the cost, inconvenience and bureaucracy of the American health care system.
The only things proven to work at these pill pushers are calcium, vitamin D and folic acid. The piles of potions and panaceas are worthless snake oil.

[ajapierce]

I will tell you this, the only Diet tactic that works, and works well is to control the portions of food that you eat. The best sense anyone can have who is serious about losing weight is to weight how much food they are eating now, and adjust it to smaller portions to lose weight.

It's not a secret, it's you eat less food if you do less physical activity, you eat slighty more food if you do more physical activity like working out, execercise or heavy lifting.

It's been proved be scientists all the time, stop eating soo much food, and you will lose weight. Not to mention, when eating, put the fork down when you feel full, don't stuff yourself, it's going somewhere that you don't want it.