FTC Mails Refund Checks for Office Supply, Dietary Supplement Scam

The Federal Trade Commission recently sent out refund checks to consumers in relation to an office supply scam and a dietary supplement scam.

Office Supplies Pricing Scheme

The FTC announced that it was mailing 1,251 checks totaling more than $647,000 to refund non-profit organizations, churches, schools, small businesses, and volunteers which were “tricked” into purchasing office supplies at a higher price than they had agreed to. The average refund amount is reportedly $517.76.

The commission filed a lawsuit against the Liberty Supply Company in December 2015, accusing the company of misrepresenting prices and quantities of office supplies and then forcing customers to pay the higher amount. The company allegedly demanded payment or charged high shipping and restocking fees to return the products.

The lawsuit was settled in March 2017. As part of the settlement, a federal court permanently banned the defendants from telemarketing and from misrepresenting their products in the future.

Consumers who received their refund check should cash the check by Jan. 27, 2019. For more information, consumers can contact the FTC’s refund administrator Rust Consulting at 1-877-435-4069.

The FTC is represented in-house for the office supply scam lawsuit by Jonathan E. Nuechterlein and Eric N. Roberson.

The Office Supply Scam Lawsuit is Federal Trade Commission v. Liberty Supply Co., et al., Case No. 4:15-cv-00829-ALM, in the U.S. District Court for the Eastern District of Texas.

Memory Loss, Joint Pain Supplement Scam

The FTC also announced that it was mailing 16,596 checks totaling more than $750,000 to refund consumers who purchased NeuroPlus or BioTherapex from Health Research Laboratories LLC. The average refund amount for the checks is $44.34, according to an FTC statement.

Health Research Laboratories was hit with a lawsuit from the FTC and the state of Maine in November 2017, with the commission claiming that the company deceptively marketed two of their dietary supplements.

NeuroPlus was reportedly marketed with claims that it could help protect against neurological diseases including Alzheimer’s and dementia and could help reverse memory loss, improve memory, and improve cognitive function.

BioTherapex was allegedly advertised to help treat arthritis, relieve joint and back pain, and cause significant weight loss.

These representations were allegedly false or unsubstantiated. The defendants eventually paid $800,000 to settle the claims.

The settlement will compensate consumers who purchased NeuroPlus or BioTherapex. Consumers who purchased NeuroPlus will receive a complete refund while consumers who purchased BioTherapex will receive refund of around 15 percent.

Consumers who received a check should cash the check within 60 days. For further information, consumers can contact the FTC’s refund administrator Analytics Consulting at 877-915-1883.

The FTC is represented in-house for the dietary scam lawsuit by David C. Shonka, Elizabeth K. Nach, and James A. Prunty. The State of Maine is represented in the dietary supplement scam lawsuit by Maine Attorney General Janet T. Mills, and Assistant Attorney Generals Brendan F.X. O’Neil and Linda J. Conti.

The Dietary Supplement Scam Lawsuit is Federal Trade Commission, et al. v. Health Research Laboratories LLC, et al., Case No. 2:17-cv-00467-JDL, in the U.S. District Court for the District of Maine.