FTC Orders Weight Loss Companies to Pay $34M to Consumers

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The Federal Trade Commission has announced that it reached class action settlements with four marketers over charges that they used deceptive advertising to peddle fad weight-loss products, including food additives, skin creams and dietary supplements. In total, the weight-loss marketers will pay approximately $34 million to consumers who purchased Sensa weight-loss sprinkles, L’Occitane “shaping” skin cream, HCG Diet Direct weight loss formula, and LeanSpa acai berry and colon cleanse supplements.

The class action settlements are part of the FTC’s ongoing initiative to put an end to marketers relying on deceptive advertising to hawk fad diet products. “Operation Failed Resolution” is the name of the FTC’s effort to halt the use of misleading claims for products that promote easy weight loss.

The marketers of the diet product Sensa will pay $26.5 million to settle charges that they tricked consumers with unfounded weight loss claims. The FTC plans to make these funds available to provide refunds to consumers who purchased Sensa.

The FTC also announced charges against L’Occitane, which claimed that its skin cream could slim users’ bodies and HCG Diet Direct, which marketed a human hormone that is touted as a weight loss treatment. According to the FTC, these companies make unfounded claims about the efficacy of their products. L’Occitane will pay $450,000 and LeanSpa will surrender assets valued at an estimated $7.3 million. A judgment against HCG Diet Direct was suspended due to the company’s inability to pay.

A partial class action settlement has been reached with LeanSpa LLC, which purportedly promoted acai berry and colon cleansing weight loss supplements through fake news websites.

High Price for Unproven Weight-Loss Products

Sensa is a heavily-promoted weight loss product that lured dieters in with the promise that they simply needed to “sprinkle, eat and lose weight.” Allegedly, the diet product would make consumers feel fuller faster, causing them to eat smaller portions of food. Sensa Products LLC reportedly charges $59 plus shipping and handling for a one-month supply of the powder. Sensa was marketed through a variety of television, radio, Internet and print advertisements. According to the FTC’s Sensa lawsuit, U.S. sales of Sensa topped $364 million between 2008 and 2012.

The Sensa settlement is the second largest in the FTC’s recent history, behind last year’s $40 million Skechers toning shoe settlement. A separate consumer Sensa class action settlement was reached last year over alleged deceptive advertising claims.

The FTC found that L’Occitane Inc. made deceptive claims that its Almond Beautiful Shape and Almond Shaping Delight skin creams were clinically proven to have body-slimming capabilities. These products cost between $44 and $48 for just seven ounces of the product.

HCG Diet Direct reportedly marketed homeopathic HCG drops, falsely promising that they would cause consumers to drop a significant amount of weight quickly. The company charged $35 for a week’s supply or $200 for a 40-day supply of the HCG Diet Direct Drops. Sales of the weight loss drops reportedly topped $3 million from 2009 to 2012.

The FTC charged the principal of LeanSpa LLC with using fake news websites to promote its acai berry and colon cleansing weight-loss products, and using deceptive weight loss claims to convince consumers to buy the products. According to the FTC, the company also offered “free” trials to consumers who paid all shipping and handling fees. Some consumers reportedly ended up paying as much as $79.99 for the “free” trial and for recurring monthly shipments of the products that were difficult to cancel.

UPDATE: Consumers who purchased LeanSpa weight loss products can apply for a refund. Click here or visit the FTC’s LeanSpa settlement website for more information.

UPDATE: LeanSpa class action settlement checks have been sent. 

UPDATE 3: August 2019, the FTC is asking consumers who purchased LeanSpa, LeanSpa with Acai, LeanSpa with HCA, LeanSpa Cleanse, NutraSlim, NutraSlim with HCA, QuickDetox and SlimFuel, who haven’t already received a refund to call 1-866-621-4156 to request one.

UPDATE 4: December 2019, the FTC started mailing another round of LeanSpa refund checks. If you bought LeanSpa, LeanSpa with Acai, LeanSpa with HCA, LeanSpa Cleanse, NutraSlim, NutraSlim with HCA, QuickDetox and SlimFuel, and haven’t already received a refund, please call 1-866-621-4156 to request one.