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FTC lawyer

Supplement Marketing Firm Settles FTC Lawsuit

by David Klein

October 21, 2019

supplement-marketing
Supplement Marketing Settlement

On October 15, 2019, NatureCity, LLC, a Florida-based marketer and seller of aloe vera-based supplements, entered into a stipulated order with the Federal Trade Commission (“FTC”) settling alleged violations of the FTC Act. Under the terms of the order, NatureCity, its CEO, and Senior VP (collectively, “Defendants”) agreed to pay a $537,500 settlement fee and enter into an $18.7 million judgment, which will be partially suspended after the settlement fee is paid. In addition, NatureCity is barred from including false and unsupported health claims in all future supplement marketing materials.

What did the FTC allege?

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FTC Investigation Leads to its First Fake Reviews Settlement

by David Klein

February 28, 2019 

FTC-investigation
FTC Investigation

A Federal Trade Commission (“FTC”) investigation of Cure Encapsulations, Inc. and its owner, Naftula Jacobowitz (the “Defendants”), has ended in a settlement that awaits court approval. In its complaint, the FTC alleges that Defendants made false and unsubstantiated claims concerning the efficacy of garcinia cambogia (the “Product”) as a weight-loss supplement and paid a third-party website operator (www.amazonverifiedreviews.com) to post fake Product reviews on Amazon.com. Pursuant to the terms of the FTC investigation settlement agreement, Defendants are prohibited from publishing weight-loss, appetite-suppression, fat-blocking, and disease-treatment claims concerning any dietary supplement, food or drug, unless those claims are substantiated by third-party clinical studies. In addition, the Defendants must notify consumers who purchased the Product of the FTC’s allegations/investigation and pay a judgment in the amount of $12.8 million (which will be suspended upon payment of $50,000 and certain unpaid income tax obligations).

How can businesses avoid the FTC’s radar? [Read More]