| U.S. Federal Trade Commission |
FTC News Release, June 20, 2005
FTC Settles Claims with Marketers of FiberThin and Propolene
The marketers of the dietary
supplements FiberThin and Propolene have settled Federal Trade
Commission charges that their misleading weight-loss claims
violated federal laws. The principal defendants, located in
Encinitas, California, are barred from making false claims
about any dietary product in the future and are required to
pay $1.5 million in consumer redress.
According to the FTC, the defendants
used a television infomercial, short TV spots, and Web sites
to market FiberThin and Propolene, two fiber-based dietary
supplements they claimed would cause rapid, substantial weight
loss without any need to diet or exercise. The supplements
were marketed together with two purported metabolism
enhancers, Excelerene and MetaboUp. FiberThin and Propolene
purportedly contain glucomannan, while MetaboUp and Excelerene
purportedly contain green tea, chromium, and bitter orange.
The defendants charged $99.80 and $89.95, respectively, for
60-day supplies of FiberThin/MetaboUp and
Propolene/Excelerene, and offered a “Take it Off, Keep it Off”
automatic shipping program that would send consumers
additional supplies for $29.95. The defendants advertised
these products through a 30-minute television infomercial that
aired on numerous television stations, including The Learning
Channel, PAX Family Entertainment Network, Home and Garden TV,
and CNBC.
In December 2003, the FTC announced its “Red
Flag” campaign to educate members of the media about different
types of bogus weight-loss advertising claims. The FTC’s
complaint charged that the defendants made “Red Flag” claims
in their ads, including that the product would cause rapid,
substantial weight loss (more than 2 pounds per week) without
the need to diet or exercise; that weight loss would occur no
matter what the consumer ate; and that weight loss would occur
in all users. The FTC also alleged that the defendants used
“expert endorsers” on their infomercial and other TV ads to
make “Red Flag” claims.
The FTC’s complaint named FiberThin, LLC and
Obesity Research Institute, LLC; their owners, Henny Den Uijl
and Bryan Corlett; and the “expert endorsers,” James Ayres and
Jonathan M. Kelley, M.D., as defendants.
The stipulated final order permanently bars
the defendants from making the challenged “Red Flag” claims
and unsubstantiated claims for any weight-loss product,
dietary supplement, food, drug, or device, or misrepresenting
any scientific study for the purposes of marketing a dietary
supplement. Defendants FiberThin, Obesity Research Institute,
Henny Den Uijl, and Bryan Corlett are required to pay $1.5
million in consumer redress; the order contains a $41 million
suspended judgment, which will become immediately due if it is
found that the defendants misrepresented their financial
situation. The order also contains standard recordkeeping
provisions to assist the FTC in monitoring the defendants’
compliance.
The Commission vote authorizing staff to
file the complaint and proposed stipulated final order was
5-0. The complaint and stipulated final order were filed in
the U.S. District Court for the Southern District of
California on June 14, 2005. The proposed stipulated final
order requires the court’s approval.
NOTE: The Commission files
a complaint when it has “reason to believe” that the law has
been or is being violated, and it appears to the Commission
that a proceeding is in the public interest. The complaint is
not a finding or ruling that the defendant has actually
violated the law. The case will be decided by the court.
NOTE: This stipulated final
order is for settlement purposes only and does not constitute
an admission by the defendant of a law violation. A stipulated
final order requires approval by the court and has the force
of law when signed by the judge.
The text in this article was prepared by the U.S. Federal Trade Commission.