The FTC also alleges the defendants utilize deceptive endorsements in marketing the program. Further, the fraudsters require consumers to sign a non-disparagement agreement; a gag order of sorts. Evidently, the agreement prevents them from speaking or publishing truthful, negative reviews about the system.
The court order settling the FTC’s charges prohibits the defendants from making weight-loss and health claims in the future. The ruling stipulates the defendants’ claims must not be misleading and shall be substantiated with competent and reliable scientific evidence. Additionally, the court ruling bars the defendants from misrepresenting that users do not need to follow a restrictive diet. It also prohibits the defendants from using deceptive endorsements. Further, it forbids them from including non-disparagement clauses, prohibiting consumers from speaking or publishing truthful, negative comments about the system. Finally, it imposes a $32 million judgment against the defendants, which is suspended upon payment of $2 million that the FTC is using to provide consumer refunds.
