Marketer of Weight-Loss Product Settles with FTC
On January 14, 2009, the Federal Trade Commission (FTC) announced that it had reached a settlement with Telebrands Corporation, TV Savings, LLC, and their principal Ajit Khubani (Telebrands), to pay $7 million in consumer redress for disseminating unsubstantiated and false advertisements for the weight-loss product, “Ab Force,” a belt like device that uses electrical stimulation to contract abdominal muscles. The Ab Force was marketed on television, radio, the Internet and in print in the years 2001 and 2002. Consumers purchased approximately 700,000 Ab Force belts at a cost of $19 million.
The settlement represents the final outcome of an enforcement matter that began when the FTC filed an administrative complaint in September, 2003 alleging that Telebrands marketed the Ab Force belt by making unsubstantiated claims that the product “causes loss of weight, inches, or fat;” “created well-defined abdominal muscle;” and “was an effective alternative to conventional exercise.” The complaint charged that the advertisements were false and deceptive in violation of the FTC Act. The agreed-upon final settlement was filed with the US District Court for the District of New Jersey on December 23, 2008.
This recent settlement continues the FTC’s practice of aggressive enforcement against the use of false or unsubstantiated advertisements in the marketing of weight-loss products. Please contact any of the individuals below if you have questions about this settlement or the FTC's advertising guidelines.
Georgia Ravitz
ravitz.georgia@arentfox.com
202.857.8939
James R. Ravitz
ravitz.james@arentfox.com
202.857.8903
Amy S. Colvin
colvin.amy@arentfox.com
202.857.6338
James H. Hartten
hartten.james@arentfox.com
202.857.8983


