QVC, Inc., a television home shopping channel, has agreed to pay $7.5 million to settle Federal Trade Commission (FTC) charges that it aired false and unsubstantiated claims regarding three types of dietary supplements and an anti-cellulite skin cream. FTC alleged that QVC violated a 2000 Commission order barring the company from making deceptive claims for dietary supplements. According to the Commission, QVC aired approximately 200 programs in which false and unsubstantiated claims were made about “For Women Only” weight-loss pills, “Lite Bites” weight-loss food bars and shakes, and “Bee-Alive Royal Jelly” energy supplements. The complaint also charged that QVC made unsubstantiated claims about “Lipofactor Cellulite Target Lotion.”

The advertisements allegedly included unsubstantiated claims that the weight loss products enable users to lose substantial weight; prevent carbohydrates and dietary sugar from being stored as fat; and assist users in maintaining their weight loss for significant periods of time. They also included unsubstantiated claims that the energy-enhancing supplements significantly increase energy, strength, or stamina in consumers who recently had surgery, are recovering from illness, or suffer from various conditions, such as fibromyalgia, chronic fatigue syndrome, and cancer. Finally, the programs included unsubstantiated claims that the “Lipofactor Cellulite Target Lotion” reduces cellulite in users without having to follow a restricted calorie diet or increase exercise. Such claims promised measurable losses from users’ arms, thighs, and abdomens.

To settle the charges, QVC agreed to pay $6 million for consumer redress and a $1.5 million civil penalty. The settlement expands the prior FTC order and further prohibits QVC from making unsubstantiated claims that any drug or cosmetic eliminates or reduces cellulite or causes measurable inch loss from users’ arms, thighs, abdomens, or other areas of the body.

The settlement also contains certain employee notification and recordkeeping requirements. Specifically, QVC must provide a copy of the FTC order and consent decree to each company officer and to all personnel involved in the advertising or promotion of any product covered by the order, as well as to all future personnel. Further, QVC must maintain and, upon request, provide to the Commission, copies of all business records demonstrating compliance with the terms of the consent decree.

Please contact any of the individuals below if you have questions regarding this settlement.

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