FTC Refunds Consumers for ‘Free Trials’ of Health Products

On Tuesday, the Federal Trade Commission announced it would be mailing more than $9.8 million to about 227,000 consumers who were charged for “free trials” of health products, including “fat burning” and “weight loss” products such as dietary supplements, DVDs and skin creams from Health Formulas LLC and other companies.

The defendants also allegedly deceptively advertised their green coffee bean extract and raspberry ketone weight loss supplements, which are marketed under the brand names “Pure Green Coffee Bean Plus” and “RKG Extreme,” as a way to obtain rapid and substantial weight loss without dieting or exercising.  The defendants had no basis on which to make the weight loss claims advertised on these products, the FTC alleged.

According to the FTC, the average health product refund amount will be $43.

If you receive a check, it must be cashed within 60 days or it will become void. If you have questions about the FTC refund check, you may call 1-800-690-2366.

In 2014, the FTC filed a lawsuit against Health Formulas LLC, its owners, and its related companies, including Simple Pure Nutrition. According to the FTC lawsuit, the defendants offered “free trials” of their products which tricked consumers into disclosing their credit and debit card information, which was purportedly necessary to cover nominal shipping and handling fees.

The defendants allegedly used this payment card information to enroll consumers without their permission in a membership program that charged them monthly for new shipments, failed to provide a way for consumers to stop these automatic charges, and failed to disclose material facts about the refund and cancellation policy.

“Consumers often experience the same result: substantial and unexpected recurring charges or debits,” the FTC lawsuit alleged. “Defendants often upsell additional products in the same manner, and for consumers, getting a refund is an exercise in frustration.”

The FTC also accused the defendants of making misleading claims about the weight loss products. The FTC lawsuit charged the defendants with violations of the Restore Online Shoppers’ Confidence Act, the FTC Act, the Commission’s Telemarketing Sales Rule and the Electronic Fund Transfer Act.

The defendants used telemarketing, the internet, print, radio and television advertisements to promote their weight loss, male enhancement, muscle building and skin care products.

“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, in response to a 2014 court order prohibiting the defendants from engaging in the conduct. “They not only deceived consumers about the effectiveness of their products, but also repeatedly debited consumers’ accounts without their approval.”

A July 2016 court order that settles the FTC lawsuit prohibited the defendants from advertising or selling weight loss supplements, making unsupported health claims for other products, debiting bank accounts without obtaining consent from the accountholder, and calling consumers who asked not to be contacted.

The FTC Health Formulas Free Trial Lawsuit is Federal Trade Commission v. Health Formulas LLC, et al., Case No. 2:14-cv-01649-JAD-GWF, in the U.S. District Court for the District of Nevada.

UPDATE: December 2018, the FTC is mailing a second round of checks totaling more than $2.5 million to consumers from the Green Coffee Bean extract settlement.