April 27, 2017
Last week, the Federal Trade Commission (“FTC”) announced a $32 million settlement with NutriMost, LLC, NutriMost Doctors, LLC and their owner (collectively, “Defendants”). The FTC alleged that the Defendants’ weight loss marketing materials misled consumers into believing that the Defendants’ product would cause consumers to lose 20-40 pounds in 40 days. According to the FTC, “[w]hat the Defendants allegedly failed to say, however, was that to achieve the weight loss advertised, users would have to follow a restrictive diet, including a very low-calorie diet of about 500 calories a day.” Although the settlement reflects a $32 million judgment, the judgment is suspended due to a represented inability by the Defendants to pay it, conditional upon the Defendants’ payment of $2 million in consumer refunds.
What are the Terms of the FTC’s Weight Loss Marketing Settlement Agreement?