FTC acts against digital disinformation
A related group of companies that used a number of digital advertising techniques, among others, to sell fad weight loss products, are going to be digging deep to provide restitution to bilked customers.
The defendants were peddling HCG Platinum drops, making claims the FTC said were empty promises.
“Fad weight-loss products like HCG drops come and go, but consumers shouldn’t be fooled by their empty promises,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “The foundation of successful weight loss is to eat a healthy diet and to increase physical activity.”
FTC explained, “HCG, or human chorionic gonadotropin, is a hormone produced by the human placenta that for decades has been falsely promoted for weight loss.”
Kevin Wright and his Utah-based companies, HCG Platinum, LLC and Right Way Nutrition, LLC.
They marketed their wares point of sale at several retail chains and on their own websites. Additionally, they used Facebook, and internet pop-ups, along with magazines and product packaging.
They charged between $60 and $80 for a 30-day supply of their products on their way to bringing in about $10M.
They are ordered to pay $1M in restitution and will on the hook for the full $10M if it is found that they hid their true total assets from the authorities.