FTC prevails over Medlab
This article was originally published in The Tan Sheet
The Federal Trade Commission's motion for summary judgment is granted in its action against the makers of weight-loss pills alleging false and unsubstantiated advertising claims. The April 21 order issued by the U.S. District Court for the Northern District of California says corporate defendants Medlab, Pinnacle Holdings, Metabolic Research Associates and their principal Scott Holmes are liable for $2.7 million, representing gross sales of a weight-loss product sold as Zyladex, Questral AC and Rapid Loss. The newspaper ads in question claimed a user could "lose up to 15 pounds a week with the amazing formula that forces your body to release fat" and said "not even total starvation can slim you down and firm you up" as quickly as Zyladex Plus can, the ruling said. The court found that small-type disclaimers stating results may vary do not counter misleading weight-loss claims. FTC filed the suit in February 2008 to bar the defendants from further violations (1"The Tan Sheet" Feb. 18, 2008, In Brief)
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The Federal Trade Commission charges a California business with falsely claiming its weight-loss pills cause users to lose weight without dieting or exercise, the agency says Feb. 8. The complaint, filed in the U.S. District Court for the Northern District of California, charges defendants Medlab, Pinnacle Holdings and Metabolic Research Associates and their principal, L. Scott Holmes, with making false and unsubstantiated claims in newspaper supplements for products Zyladex Plus, Questral AC, Questral AC Fat Killer Plus, Rapid Loss 245 and Rapid Loss Rx. The claims included "lose up to 15 pounds a week" and "not even starvation can slim you down and firm you up this fast." FTC says it seeks to "permanently bar the defendants from further violations" as well refunds for affected consumers...
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