A group of dietary supplement marketers was slammed with a $15.8 million judgment for deceiving consumers, the Federal Trade Commission announced last week.
The defendants included National Urological Group Inc., Hi-Tech Pharmaceuticals In., National Institute for Clinical Weight Loss Inc., and three individuals: Jared Wheat, Stephen Smith and Thomasz Holda. The firms were The firms were “a common enterprise,” controlled by the same group of individuals, the FTC said.
The judgment was assessed in December by the U.S. District Court for the Northern District of Georgia. The same court granted the FTC’s motion for summary judgment last June.
According to the FTC, the defendants claimed in ads that the products Thermalean and Lipodrene were clinically proven to cause substantial weight loss, up to 19% of total body weight.
They also promised that Spontane-ES would cure erectile dysfunction in 90% of all cases.
The court ordered Dr. Terreill Mark Wright to pay $15,454 for “his deceptive endorsement of Thermalean,” the FTC said.
The court rejected First amendment arguments put forth by the defendants, the FTC continued.
In addition to the financial judgment, the defendants were ordered by the court to refrain from claiming that products are clinically tested or safe and effective unless they are based on scientific evidence. In addition, they are banned from misrepresenting the results of any studies.
“These defendants are old-fashioned snake-oil salesmen who retooled their pitches to cash in on 21st century concerns,” said Lydia B. Parnes, director of the FTC’s Bureau of Consumer Protection, in a statement.
