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Avalanche clause in effect

This article was originally published in The Tan Sheet

Executive Summary

FTC on April 24 says HeightMax maker Sunny Health Nutrition Technology & Products must pay its full $1.9 mil. redress for making false and unsubstantiated claims for three dietary supplements. In November, the Riverview, Fla.-based firm said it would pay $375,000 of the settlement agreement due to inability to pay the full amount (1"The Tan Sheet" Dec. 4, 2006, In Brief). However, the avalanche clause included in the settlement states the company must pay the entire $1.9 mil. if the firm misrepresented its finances. FTC said in December it discovered Sunny Health Nutrition possessed an undisclosed PayPal account containing more than $1.8 mil...

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FTC settlement

FTC announces Nov. 28 HeightMax Plus maker Sunny Health Nutrition Technology & Products will pay $375,000 to settle charges its advertising claims are deceptive. The settlement also holds the Riverview, Fla.-based company potentially liable for $1.9 mil. in the event it "misrepresented their finances," the release says. Claims include a regular intake of dietary supplement HeightMax results in a 10% to 25% gain in height. The company is also charged with inventing "William Thomson," who was presented in HeightMaxads as an expert with a PhD in Biochemistry. Other products included in the complaint are HeightMax Concentrate, Liposan Ultra Chitosan Fat Blocker and Osteo-Vite. Radio and print advertisements ran in Spanish and English and appeared in Newsweek, Rolling Stone and Maxim...

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