Spanish-language Marketers of Weight Loss Products Settle with FTC

Spanish-language Marketers of Weight Loss Products Settle with FTC

WASHINGTONThe Federal Trade Commission (FTC) announced on Oct. 6 six actions against companies marketing deceptive products and services through Spanish-language media outlets and telemarketing.

The move was part of the agencys continued Hispanic Law Enforcement and Outreach Initiative targeting deceptive advertising aimed at Spanishspeaking customers. Two of the October actions concerned weight loss products.

In the first case, originally filed in April 2004, FTC (www.ftc.gov) announced a stipulated final order was entered into U.S. District Court for the Southern District of Florida on Sept. 23 against American Dream Enterprises and its owner. The Miami-based company marketed a weight loss dietary supplement called Fat Seltzer; the product allegedly contained ingredients that, combined with the effervescent action of the product, would cause quick, permanent weight loss without diet or exercise. Under terms of the final order, the defendants are permanently enjoined from making false or unsubstantiated claims for any weight loss product and must pay $185,000 in consumer redress, with a $1.5 million avalanche clause.

FTCs second weight loss case focused on Montclair, Calif.-based Rosario Partnership; the complaint and stipulated final judgment were filed in U.S. District Court, Central District of California, on Oct. 5, with the final judgment subject to court approval. FTC charged the company with making false and unsubstantiated claims for Celu-Fat Reductor, an herbal lotion and wrap system that would allegedly reduce cellulite and fat without changes in diet or exercise. The judgment permanently enjoins the defendants from making false or unsubstantiated efficacy or safety claims for any health-related service, product or device. A settlement of $157,000 was suspended due to the defendants financial condition.