June 18, 2004
WASHINGTON--The Federal Trade Commission (FTC) announced several cases that are part of its ongoing Hispanic Law Enforcement and Outreach Initiative, one of which involved a dietary supplement company. FTC's case against Miami-based Kamarfu Enterprises involves allegedly false and misleading claims made for the company's 1-2-3 Diet Kit, a trio of dietary supplements for weight loss.
FTC's complaint alleges Kamarfu falsely claimed the products would cause permanent weight loss, cause substantial weight loss in a short time (up to 36 pounds in two months) and cause weight loss by blocking fat absorption and suppressing appetite. Dietary ingredients included in the Kamarfu products included chromium picolinate, L-carnitine, citrus aurantium, hydroxycitric acid (HCA), spirulina and fiber. The products were marketed through Spanish language ads in Hispanic magazines and newspapers as well as in English-language newspapers including The Miami Herald.
The stipulated final order requires the defendants to pay $30,000 in consumer redress and includes a $4.3 million "avalanche clause," which would be due immediately if the company misrepresented its financial condition. Further conditions include banning the company from making the weight-loss claims specifically targeted, and requiring future claims to be truthful, substantiated and non-misleading. Information on the case is available online (www.ftc.gov).
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