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FTC prevails over Medlab

This article was originally published in The Tan Sheet

Executive Summary

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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