Weight Loss Supplements Company Settles With FTC

The headline above should have read something like, "Yet Another Supplements Company Settles". But that is now getting tired as several supplements companies have had to settle, mainly for misleading claims. There are similarities here too in that Acai berry is in the mix, and the settlement is $1.5 million (is this some sort of magic number?). But there is also another not-so-uncommon practice: hidden re-billing.

Graham Gibson, of Central Coast Nutraceuticals, what was once one of the top weight-loss rebill offers in the CPA realm has settled with the FTC for a one-time payment of $1.5M. This is based on a complaint from 2010 that claimed that Mr. Gibson’s company billed consumers credit cards without their explicit approval and that the products made claims that were not proven, such as preventing colon cancer.

According to press releases and stories, the $1.5M settlement is based on Graham’s net worth and he will be required to sell some property in Hawaii and cash out of his current Scottsdale based home.

Graham stands by his innocence in the entire matter, “Central Coast Nutraceuticals sold many good products to millions of satisfied customers, but settling will allow us to move forward and for any remaining unsatisfied customers to receive refunda.”

Additionally, he stated that “In order to avoid a protracted legal battle we have chosen to settle with the FTC. Settling does not mean that we agree with the FTC’s allegations. We do not. CCN sold many good products to millions of satisfied customers, but settling will allow us to move forward for any remaining unsatisfied customers to receive refunds. Overall, we are happy with the outcome.” See the original story

It is surprising that not too many supplements makers and makers that sell Acai have got into trouble. Not all are bad, but there is a good number who are. The product has been marketed as virtually the panacea for all manner health problems, from weight to cancer. But one of the biggest ruses some marketers have pulled putting consumers on hidden continuity. This means re-billing a person's credit card month after month without first informing them or without their consent. Cancelling and or getting a refund is usually not that easy either.