The FTC alleged that NutriMost’s advertisement and its other claims about the benefits of its weight loss system were false and has no scientific evidence.
Additionally, the regulator alleged that Nutrimost failed to disclose that it has or its franchisees have material connections to its endorsers.
Furthermore, the defendants allegedly required buyers to sign a contract agreeing not to make any negative statements or comments about Nutrimost System or face a financial penalty.
Consumers paid $1,895 for the NutriMost System.
In 2017, the defendants agreed to settle FTC’s complaint. A court order settling the case prohibited the defendants from deceiving consumers about the benefits NutriMost System. It required the defendants to pay $2 million in refunds to consumers.
In fact the order imposed a $32 million judgement against the defendants, which will be suspended based on their financial condition after paying the $2 million.
