October 12, 2004
A Canadian-based fulfillment company doing business as Beauty Visions Worldwide and SlimShop have agreed to settle Federal Trade Commission charges that they made false and unsubstantiated weight-loss claims for two purported weight-loss patches - "Hydo-Gel Slim Patch" and "Slenderstrip."
Under the terms of the settlement, the defendants are prohibited from representing that Hydro-Gel Slim Patch, Slenderstrip, or any other weight-loss product causes rapid or substantial weight loss without the need to diet or exercise. The defendants also are required to pay consumer redress.
"Fulfillment companies that are involved in their clients' misleading advertising can expect to hear from the FTC," said Lydia Parnes, Acting Director of the FTC's Bureau of Consumer Protection. "There is no product on the market that causes permanent substantial weight loss without diet or exercise."
The stipulated final order announced today prohibits the FSA defendants from:
• representing that Hydro-Gel Slim Patch, Slenderstrip, or other weight-loss products cause rapid or substantial weight loss without the need to diet or exercise; representing that these products work for all overweight users; or that these products cause permanent weight loss;
• reliable scientific evidence to substantiate such claims; and
• selling, renting, or disclosing the names of purchasers of Hydro-Gel Slim Patch and Slenderstrip, or any other information about those customers.
The settlement requires the FSA defendants to pay $72,422 for consumer redress, and it contains a $1,422,481 avalanche clause, which would become effective if the court were to find that the FSA defendants misrepresented their financial situation.
