FTC Deceptive Advertising Complaint Settled

By WholeFoods Magazine Staff

The Federal Trade Commission (FTC) says a network of online marketers and the three people behind it have agreed to settle charges they sold more than 40 weight-loss, muscle-building, and wrinkle-reduction products to consumers using unsubstantiated health claims, fake magazine and news sites, bogus celebrity endorsements and phony consumer testimonials.

The FTC also alleges the defendants used deceptive offers of “free” and “risk-free” trials, and automatically enrolled consumers without their consent in negative option auto-ship programs with additional monthly charges.

The court order settling the charges imposes a judgment of $179 million, which is the amount FTC alleges consumers nationwide paid the defendants over a period of more than five years. The settlement of about $6.4 million will suspend the judgment, and bans the defendants from using deceptive marketing and billing tactics.

Read full article and learn more about Deceptive Advertising here.

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Disclaimer: This article is provided for informational purposes only. It’s not legal advice, and no attorney-client relationship is created. Neither the author nor FTC Guardian, Inc. is endorsed by the Federal Trade Commission.