FTC gets ruling against marketing firms - Bills.com News

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FTC gets ruling against marketing firms

Wednesday, Sep 2, 2009
By Lance Piper

According to a recent court ruling, a number of marketers dealing in dietary supplements have been ordered to pay almost $70 million in damages to consumers.

In a case pursued by the Federal Trade Commission (FTC), Direct Marketing Concepts Inc. and ITV Direct Inc. were found by the court to be misleading consumers about the effectiveness of two products they were pushing, Supreme Greens and Coral Calcium.

The groups claimed that the two supplements could treat a varietyof maladies, including cancer, heart disease and autoimmune diseases. Furthermore, the court found that the firms made unauthorized charges that affected consumers debit cards and credit card debt.

The assets of the two firms, along with their owners Donald W. Barrett and Robert Maihos, were frozen by the court rulings. They also had to pay $48.2 million in refunds to consumers. Another defendant, Allen Stern, along with two companies he controls,
was also ordered to pay out $20.4 million in consumer refunds for their role in marketing Coral Calcium.

Recently, Oprah Winfrey and Dr Memhet Oz have sued companies for false endorsement claims relating to a berry product. They have both sued over acai berry supplements which they claim were falsely marketed by companies through the use of their likenesses.

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