FTC Accuses Supplement Marketers of Debiting Consumers’ Accounts without Consent

By on October 20, 2014

The Federal Trade Commission (FTC) filed a complaint in Federal Court, District of Nevada, against dietary supplement marketer Health Formulas, LLC doing business as (d/b/a) Simple Pure and its affiliates for violations of the Restore Online Shoppers’ Confidence Act (ROSCA), the FTC Act, the Telemarketing Sales Rule (TSR) and the Electronic Funds Transfer Act.

“The defendants behind Simple Pure used nearly every trick in the book to deceive consumers,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “They not only deceived consumers about the effectiveness of their products, but also repeatedly debited consumers’ accounts without their approval.”

Specifically, the FTC accused Health Formulas of misleading consumers with unfounded claims including: 1) “Burn fat without diet or exercise”; 2) “Shed pounds fast!” and 3) “Extreme weight loss!” In addition, the FTC charged defendants with failing to provide consumers with:

  • disclosures required for a negative-option program,
  • a way to stop the automatic charges, and
  • material facts about their refund and cancellation policy.

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