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FTC settlement

This article was originally published in The Tan Sheet

Executive Summary

Supplement marketer La Grana will pay $231,000 in consumer redress to settle allegations that they made deceptive claims for Svelt Body Complete and Imagen Enlínia weight-loss regimens in Spanish-language infomercials, FTC announces. The settlement is part of a broader effort to combat fraud targeted at Hispanic consumers, the commission announced Oct. 25. A total $1.8 mil. judgment will be due if the firm is found to have hidden assets or "fails to make timely payments" to FTC. La Grana is enjoined from making claims that products cause "rapid and substantial" weight loss without diet and exercise, block the absorption of fat or cause permanent weight loss. The pills, patches and creams were grouped in packages retailing for $179 and purportedly contained chitosan, a dietary supplement with the advertised ability to convert fat into fiber. FTC filed the complaint in U.S. District Court for the Central District of California on September 16, 2005; the stipulated final order was entered on September 22, 2005...

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