The marketers of the “Peel Away the Pounds” patch will pay over $1 million to settle Federal Trade Commission charges that they made false claims in infomercials.
One order, requiring payment of $1.1 million, was signed the following defendants: PAP Systems LLC, Buckhead Marketing & Distribution LLC and their principals Ralf Leszinski and Nancy Duitch.
This order also contains a $24.2 million judgment against those defendants, but that has been suspended. However, there is an “avalanche clause,” requiring that the whole amount be paid if these parties filed false financial disclosure statements.
Two other defendants, Advanced Patch Technologies Inc. and its principal Salmon Btesh, will pay $175,000.
Also listed as a defendant was “expert endorser” Jesse Starkman.
According to the FTC, all the defendants except for Starkman falsely claimed the patch would lead to loss of three to five pounds per week in all users, and that this had been scientifically proven.
“No non-prescription product will cause meaningful weight loss without diet or exercise,” said Howard Beatles, director of the FTC’s Bureau of Consumer Protection, in a statement. “Claims that patches, creams and wraps can cause substantial weight loss are a red flag for falsity.”
The product was advertised the product in an infomercial, on Web Sites and in a print ad. According to the FTC, the ads advised consumers: “Simply follow our system: Place Pound A Patch on your upper body. Then carry on with your everyday lifestyle. Every three days peel off the patch and watch as you take off the pounds. Replace with a new patch and drop more pounds. It’s that easy.”
The FTC complaint, on file with the U.S. District Court for the Northern District of Georgia, Atlanta Division, also names two “relief” defendants: Advanced Patch Technologies principal Bernard Silverfarb and Buckhead Marketing Group, an affiliate of Buckhead Marketing & Distribution. These defendants did not participate in the deceptive practices, but financially benefited from them, according to the FTC.
The Advanced Patch Technologies defendants are based in Opa Locka, FL. Buckhead Marketing & Distribution is based in Los Angeles. PAP and Buckhead Marketing Group is located in Atlanta.
Network
