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Beverly Hills Spa Diet Promoter Fined Again |
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July 10, 2003
The FTC alleges that Lifestyle’s claims for four products violated the earlier order, which banned it from making unsubstantiated claims of health benefits and unsubstantiated claims for electronic products. This is the second civil penalty action against Lifestyle since the Commission entered the 1994 order. In 1997, Lifestyle agreed to the payment of a $60,000 civil penalty and entry of a federal court injunction to settle FTC allegations that it had violated the 1994 order by making unsubstantiated claims for a pain-relieving device, a pest-control device, and an antenna substitute. Lifestyle sells a variety of products, including electronic items, gadgets, toys, household goods, cosmetics, dietary supplements, and other health-related products. The claims challenged in this action promoted the following products:
The FTC alleges that Lifestyle made numerous unsubstantiated or false claims in the marketing and advertisements for these products – all in violation of the Commission’s 1994 administrative order. Under the terms of that order, Lifestyle was prohibited from, among other things:
According to the FTC, Lifestyle’s ads for the four products targeted in the action announced today contained claims such as:
The FTC alleges that these and other claims made for the products are unsubstantiated or false. In addition, the FTC alleges that Lifestyle offered a strong and unqualified guarantee of customer satisfaction through claims such as: “Guarantee of satisfaction: If for any reason you aren’t happy with your purchase send it back for a 100% refund.” The complaint alleges that Lifestyle violated the FTC Act through its failure to honor completely its satisfaction guarantee and promise of a 100 percent refund. The modified consent decree with Lifestyle requires the company to pay a $175,000 civil penalty. The modified decree also establishes a more stringent standard for claims that tests prove or establish the efficacy of certain products, including dietary supplements. Such claims must be true, and the tests must be conducted by persons with appropriate training and experience, using procedures accepted by the relevant profession to ensure accurate and reliable results. In addition, the modified decree requires full refunds for products returned pursuant to any satisfaction or money-back guarantee, unless the company discloses, clearly and conspicuously, that the guarantee is limited to the purchase price of the product. The Department of Justice filed the complaint and modified consent decree at the request of the FTC in the U.S. District Court for the District of New Jersey on July 9, 2003. |
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