It was the latest “diet health craze” from just a few years ago that dominated the internet and Late Night Informercials. But now Uncle Sam says it was all a scam and it just cost the promoters $9.2 million dollars and a Ferrari!
The FTC alleges Health Formula, LLC made false claims about products like its’ “Green Coffee Bean Extract” and illegally withdrew money from consumers Bank Accounts.
According to the FTC “The proposed stipulated final order bans individual defendants Danelle Miller and Jason Miller and 42 corporations the couple controlled (the Health Formulas defendants) from advertising or selling weight-loss supplements and negative option sales plans, making unsupported health claims for other products, and debiting consumers’ bank accounts without their consent.
“The defendants made misleading claims about their products, locked people into recurring charges, and debited bank accounts without permission, said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “As a result of their outrageous behavior, they’re now banned from using continuity programs or selling weight-loss products, and they’ve surrendered millions of dollars.””
The Feds add “The FTC’s action alleged that Health Formulas, LLC, its related entities, and principals used telemarketing, the Internet, print, radio, and television advertisements to deceptively pitch a variety of dietary supplements and other weight-loss, virility, muscle-building, and skin cream products.
The defendants tricked consumers into disclosing their personal financial information through the use of a “free trial” or discount program with undisclosed costs, and then enrolled them, often without their authorization, in a negative option program in which defendants automatically charged consumers for monthly shipments.
The Feds say the “Coffee Bean Extract” health claims weren’t the only ones they say were bogus.
“The FTC’s action alleged that Health Formulas, LLC, its related entities, and principals used telemarketing, the Internet, print, radio, and television advertisements to deceptively pitch a variety of dietary supplements and other weight-loss, virility, muscle-building, and skin cream products.
The defendants tricked consumers into disclosing their personal financial information through the use of a “free trial” or discount program with undisclosed costs, and then enrolled them, often without their authorization, in a negative option program in which defendants automatically charged consumers for monthly shipments.”
Making it even worse for victims?
Investigators say the company never informed customers how to stop the re-occuring automatic withdrawals from their Bank Accounts.
Here’s the FTC release
Disclaimer
The information contained in South Florida Reporter is for general information purposes only.
The South Florida Reporter assumes no responsibility for errors or omissions in the contents of the Service.
In no event shall the South Florida Reporter be liable for any special, direct, indirect, consequential, or incidental damages or any damages whatsoever, whether in an action of contract, negligence or other tort, arising out of or in connection with the use of the Service or the contents of the Service. The Company reserves the right to make additions, deletions, or modifications to the contents of the Service at any time without prior notice.
The Company does not warrant that the Service is free of viruses or other harmful components
