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Making false or unsubstantiated weight-loss and related claims;
Failing to disclose adequately that consumers who order a "free" sample are enrolled in a continuity program, that their accounts will be debited or charged to pay for the program, that they must cancel to avoid extra shipments and debits and charges, and how and when they must cancel to avoid the debits or charges; and
Debiting or charging accounts of consumers who cancelled or tried to cancel, or those who were not adequately informed of the negative option features or terms and conditions, and therefore did not provide express informed consent for the debits or charges.
The defendants also were charged with violating the Electronic Fund Transfer Act and Regulation E by debiting consumers' accounts on a recurring basis without obtaining the required written authorization.
Under the settlements, regarding the marketing of any dietary supplement, food, drug, device, or health-related program or service, or of any product or service by means of a negative option feature, the defendants are barred from misrepresentations, including that a product or service is "free" or without obligation if a charge will be assessed unless the consumer cancels. Other prohibited misrepresentations include the amount that will be charged, that a consumer will not be charged, the timing or manner of any charge, the length of any trial period before a charge will be made, and that a consumer has authorized a purchase.