Defendants Who Deceptively Marketed the “Himalayan Diet Breakthrough” Settle FTC Charges:

Agree To Pay $400,000 In Consumer Redress

AVS Marketing, Inc., and its president, William R. Heid, have agreed to pay $400,000 in consumer redress to settle Federal Trade Commission charges that they deceptively marketed a purported weight-loss pill called “Himalayan Diet Breakthrough.” According to the FTC, the defendants claimed the product causes rapid and substantial weight loss without the need to diet or exercise. The FTC alleged that the defendants’ ads for the product used five of the seven bogus “Red Flag” weight-loss claims. The ads appeared in the Dallas Morning News, the Albuquerque Journal, Hair Cut and Style, the Cleveland Plain Dealer, the San Francisco Chronicle, and various other publications. The FTC’s ongoing “Red Flag” education campaign provides guidance to assist media outlets and others in spotting false claims in weight-loss ads. In addition to paying consumer redress, the settlement prohibits the defendants from misrepresenting the efficacy or safety of any food, drug, dietary supplement, device, or health-related program.

The FTC filed charges against the Illinois-based defendants in October 2004, as part of “Operation Big Fat Lie.” The FTC alleged that the defendants made false and unsubstantiated claims for the “Himalayan Diet Breakthrough,” a dietary supplement containing Nepalese Mineral Pitch, “a paste-like material” that “oozes out of the cliff face cracks in the summer season” in the Himalayas. The defendants claimed the product causes rapid and substantial weight loss without dieting or exercise; causes users to lose substantial weight while still consuming unlimited amounts of food; causes substantial weight loss by preventing the formation of body fat; causes substantial weight loss for all users; and enables users to lose as much as 37 pounds in eight weeks safely.

The stipulated final judgment and order announced today prohibits the defendants from making false or unsubstantiated claims about weight-loss products or other products in the future. The order contains a judgment for more than $4.9 million, the total amount of sales for the product at issue. Based on a review of the defendants’ financial information, it has been determined that they are unable to pay full redress. The order suspends the judgment upon payment of $400,000 to the FTC. If it is found that the defendants misrepresented their financial condition, the full $4.9 million will become due immediately.

The Commission vote authorizing staff to file the proposed stipulated final judgment and order was 5-0. The stipulated final judgment and order was filed in the U.S. District Court for the Northern District of Illinois, Eastern Division, on June 10, 2005, and was signed by the judge on June 13, 2005.

NOTE: This stipulated final judgment and order is for settlement purposes only and does not constitute an admission by the defendants of a law violation. The stipulated final judgment and order has the force of law when signed by the judge.

Copies of the stipulated final judgment and order are available from the FTC’s Web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish (bilingual counselors are available to take complaints), or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.

MEDIA CONTACT:

Brenda Mack,
Office of Public Affairs
202-326-2182


 

Bogus Weight-Loss Products Do Not Work: Defendants Barred From Making False and Unsubstantiated Weight-Loss Claims Scarborough, Maine-based defendants are barred from making false or unsubstantiated claims about any weight-loss product or program, dietary supplement, food, or drug, and have agreed to pay $100,000 in consumer redress to settle Federal Trade Commission charges that they made bogus claims about two weight-loss products: gel thin, a topical gel, and Ultra LipoLean, a dietary supplement tablet that purports to block fat. The FTC alleged that the defendants used one or more of the seven bogus “Red Flag” weight-loss claims. The FTC’s ongoing “Red Flag” education campaign provides guidance to assist media outlets and others on spotting false claims in weight-loss ads. In November 2004, the FTC filed its complaint against Selfworx.com LLC, Iworx, and Jeffrey V. Kral as part of “Operation Big Fat Lie” – an initiative targeting bogus weight-loss claims. The FTC amended its complaint to include Bernard Willimann, an owner and active participant in the operation of the corporate defendants, and Shawn P. Lyden as a relief defendant. The complaint alleged that the defendants claimed that gel thin, when rubbed into the skin, caused substantial weight loss; dissolved fat deposits in days; and dissolved and removed cellulite from the body. The complaint further alleged that the defendants falsely claimed that clinical studies showed that gel thin reduced fat and cellulite deposits on contact. In addition, the complaint alleged that the defendants made false and unsubstantiated claims that Ultra LipoLean caused rapid and substantial weight loss, as much as four pounds per week, without the need to diet, and that only two tablets absorb 20 to 30 grams of fat from a meal. The challenged ads ran in nationally-known publications such as Cosmopolitan and Complete Woman, and Sunday newspaper supplements, including Cleveland, Ohio, Sun Newspapers. The stipulated final judgment announced today bars the defendants from making claims that any weight-loss product: (1) causes rapid or substantial weight loss without the need for diet or exercise, or (2) causes substantial weight loss or eliminates fat or cellulite when rubbed into the skin. The settlement further bars the defendants from making false or unsubstantiated claims about any weight-loss product or program, dietary supplement, food, or drug. In addition, the settlement prohibits the defendants from misrepresenting the existence, validity, or results of any tests or studies. The settlement requires the defendants to pay $100,000 in consumer redress. The settlement contains a $20 million avalanche clause for the defendants and a $400,000 avalanche clause for the relief defendant Shawn Lyden, if it is found that they misrepresented their financial status. Finally, the settlement contains various record keeping requirements to assist the FTC in monitoring the defendants’ compliance. The Commission vote authorizing staff to file the amended complaint and the stipulated final judgment was 5-0. The amended complaint and the stipulated final judgment were filed in the U.S. District Court, District of Maine, on May 19, 2005, and the judge has signed the stipulated final judgment. NOTE: This stipulated final judgment is for settlement purposes only and does not constitute an admission by the defendant of a law violation. Stipulated final judgment have the force of law when signed by the judge. Copies of the amended complaint and the stipulated final judgment are available from the FTC’s Web site at http://www.ftc.gov and also from the FTC’s Consumer Response Center, Room 130, 600 Pennsylvania Avenue, N.W., Washington, D.C. 20580. The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint in English or Spanish (bilingual counselors are available to take complaints), or to get free information on any of 150 consumer topics, call toll-free, 1-877-FTC-HELP (1-877-382-4357), or use the complaint form at http://www.ftc.gov. The FTC enters Internet, telemarketing, identity theft, and other fraud-related complaints into Consumer Sentinel, a secure, online database available to hundreds of civil and criminal law enforcement agencies in the U.S. and abroad. MEDIA CONTACT: Brenda Mack Office of Public Affairs 202-326-2182 STAFF CONTACT: John Mendenhall or Brinley Williams FTC’s East Central Region - Cleveland 216-263-3455