Originally published February 26 2006
FTC fines telemarketers selling weight loss and tooth whitening products
by Mike Adams, the Health Ranger, NaturalNews Editor
A telemarketing company that sells tooth whitening kits and weight loss patches must pay $463,000 in consumer redress and $11,000 in civil penalties after the Federal Trade Commission charged that the company made false claims about its products, called people on the National Do Not Call Registry and promised individuals free samples, while in fact enrolling them in programs that would send them monthly shipments and bills.
A telemarketing operation selling tooth-whitening kits and weight-loss patches will pay $463,000 in consumer redress and $11,000 in civil penalties to settle Federal Trade Commission charges.
The FTC charged that the defendants promised "free" samples of the tooth whitening kits, then debited consumers' accounts without their authorization.
The FTC further alleged that the defendants made false and unsubstantiated claims about their weight-loss patches and called consumers listed on the National Do Not Call Registry.
The Commission has referred a second complaint to the Department of Justice for filing, charging that the defendants called numbers listed on the National Do Not Call (DNC) Registry, abandoned calls placed to consumers, and did not pay the required annual fee to access numbers on the Registry.
To settle the charges in the complaint filed by the FTC, the defendants are prohibited from misrepresenting any material fact in connection with the sale of a product or service, including: that consumers can obtain a free product or service; that products or services are offered at no obligation; the existence, amount, or manner of assessment of any charge; the length of any trial period; the terms of any refund program; that defendants do or do not possess consumers' billing information; or that consumers agreed to a purchase.
Also, the defendants must clearly and conspicuously disclose all fees, costs, cancellation terms, material conditions, limitations, and refund terms, and the material terms of any negative option offer before they ask consumers to disclose billing information.
To settle charges in the Do Not Call complaint, the defendants are prohibited from calling consumers who have placed their numbers on the DNC Registry or who placed themselves on the defendants' company-specific DNC list.
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