The Federal Trade Commission has filed charges accusing three weight-loss and erectile-dysfunction product marketers of false and unsubstantiated claims regarding the safety and effectiveness of their products.
The FTC is seeing a permanent injunction against the three companies, as well as unspecified damages on behalf of consumers.
According to papers filed in the United States District Court for the Northern District of Georgia, National Urological Group Inc., National Institute for Clinical Weight Loss Inc and Hi-Tech Pharmaceuticals, Inc., along with the company principals, made deceptive claims regarding Thermalean and Lipodrene, two alleged weight-loss products, and Spontane-ES, an erectile dysfunction product that contains yohimbine.
All three companies are run out of the same location, according to the complaint.
The FTC also named Jared Wheat and Thomasz Holda, who are officers of the three companies, as well as Michael Howell and Stephen Smith, who hold positions with National Urological Group and National Institute for Clinical Weight Loss, as defendants. Terrill Mark Wright, a medical doctor, was named separately for his role in endorsing Thermalean.
The three products were marketed through a variety of direct mail solicitations, and Thermalean and Lipdrene were sold online, according to the FTC’c complaint. Consumers paid $80 for a two-month supply of Thermalean, $30 for a one-much supply of Lipodrene, and $100 for a 60-pill bottle of Spontan-ES.
The FTC alleged that the defendants sent out a direct mail piece claiming Thermalean use would result in a 15% weight loss in 60 days – that is, a 200-lb customer would shed 30 pounds in two months. A Lipodrene direct mail insert touted the ability to “Lose up to 19% of your total body weight!” And Spontane-ES advertisement claimed effectiveness in 90% of all men taking it.
According to the FTC, the marketing pitches for the three products included both false and unsubstantiated claims. Furthermore, the ads claimed that the companies either were or were affiliated with legitimate research or medical facilities engaged in testing the products or conducting other research. The FTC alleges that these claims are untrue.
A listed number of Hi-Tech Pharmaceuticals led to a fax machine. At deadline, the company had not responded to a fax requesting comment.
