1 National Marketers of Dietary Supplements Settle FTC Charges Defendants to Pay $2.2 Million in Redress Direct mail marketers have agreed to pay $2.2 million in consumer redress and to stop certain deceptive advertising practices to settle Federal Trade Commission charges that they made false and unsubstantiated weight loss and arthritis “cure” claims for dietary supplements in sales brochures mailed to consumers across the nation.

2 National Marketers of Dietary Supplements Settle FTC Charges Bentley Myers International Co., based in Vancouver, Canada; and Publisher’s Data Services, Inc. and Nutritional Life, Inc., both based in Beverly Hills, California. The complaint alleged that the defendants violated the FTC Act by making false and unsubstantiated claims that three weight- loss supplements – Zymax and MillinesES (both containing ephedra), and Serotril (containing St. John’s wort) – cause rapid and substantial weight loss without diet or exercise. The complaint also challenged claims that the ephedra products have no side effects. The complaint further alleged that the defendants made unsubstantiated claims that CartazyneDS, a dietary supplement containing glucosamine, “cures” arthritis and “rebuilds” cartilage “within days.” The complaint charged that the defendants’ ads used fictitious expert and consumer endorsements, and deceptive “before and after” pictures.

3 National Marketers of Dietary Supplements Settle FTC Charges Under the terms of the consent decree, Michael Levey’s Estate, as well as Ballen and the three corporate defendants, jointly agree to pay $2.2 million in consumer redress. In addition, the consent decree prohibits the three corporate defendants from violating the 1993 FTC order. The consent decree also prohibits Ballen and the corporations from engaging in certain deceptive advertising practices, including:

4 National Marketers of Dietary Supplements Settle FTC Charges  representing that dietary supplements and certain other products cause substantial weight loss in a short time without diet or exercise, or that such claim is proven by clinical studies;  making any other false or unsubstantiated claim about the health benefits, performance, safety or efficacy of any product, service, or program;  using deceptive pictures and demonstrations; misrepresenting tests, studies and research; and  misrepresenting the identity or qualifications of any expert or other endorser

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44 Summary History Food and Drug Administration Federal Trade Commission US Postal Service Other Agencies