FTC Fines NBTY $2 Million for Violating Earlier Order

WASHINGTON--A consent decree approved by the Federal Trade Commission (FTC) and submitted to the U.S. Department of Justice (DOJ) for approval would require NBTY Inc. (www.nbty.com) to pay $2 million for violating a 1995 FTC order by using drug and disease claims to market two of its products.

In 1995, the company, along with its subsidiaries Puritan’s Pride and Vitamin World, settled FTC charges that it made deceptive and unsubstantiated claims for 26 products. According to FTC, NBTY claimed these products promoted weight loss, increased muscle mass, decreased body fat, promoted hair growth, prevented premature hair loss, lowered cholesterol, and prevented arthritis. NBTY subsequently agreed to not make deceptive and unsubstantiated claims for such products in the future, and further agreed to pay $250,000 in consumer redress.

However, FTC (www.ftc.gov) revisited the case, alleging NBTY deceptively marketed a Tongan seaweed extract via its subsidiary Dynamic Essentials Inc. from 2001 through 2003. The agency reported Royal Tongan Limu was advertised in English and Spanish as being clinically proven to cure, prevent or treat a range of diseases and disorders such as allergies, diabetes, cancer and Alzheimer’s disease. During this same period, NBTY and its subsidiaries also claimed that its Body Success PM Diet Program reduces body fat, increases metabolism and causes weight loss, even during sleep. According to FTC, the company lacked reliable scientific evidence to prove that its claims for either product were true, and they misrepresented evidence in support of Royal Tongan Limu claims.

“Misleading health claims prevent consumers from getting useful information and can delay treatment for serious medical conditions,” said Lydia B. Parnes, director of the FTC Bureau of Consumer Protection. “Companies already under order for making deceptive health claims should know better than to try it again.”

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