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If you’ve ever stumbled upon one of those painfully fake news websites peddling health supplements and weight-loss products with the help of an attractive anchorwoman and wondered how anyone could get away with such a flagrantly distasteful tactic, you’ll be happy to know that the FTC has punished deceptive marketers behind such schemes.
In two proposed settlements that will total more than $1.6 million and a 2008 Porsche, Beony International owner Mario Milanovic and employee Cody Adams have agreed to stop their operation marketing acai berry supplements and other weight-loss products. These two proposed settlements are the result of the FTC’s 10-case sweep against online marketers who have employed fake news sites to market weight-loss products.
“Collectively, the defendants in the sweep and in two additional cases against associated affiliate networks have agreed to pay more than $9.4 million to settle the charges against them,” according to the FTC.
“As part of the FTC’s ongoing crackdown on bogus health claims, the settlements require the defendants to make it clear when their commercial messages are advertisements rather than objective journalism,” the agency’s press release says. “The settlements also bar the defendants from further deceptive claims about any product or service, including the acai berry weight-loss supplements, colon cleansers, teeth whiteners, work-at-home plans, and surplus auctions that they marketed. The defendants also must disclose any material connections they have with merchants.”
The settlements with Milanovic and Adams each levy a $13 million judgment, which will be suspended when they pay more than $1.6 million and sell the Porsche. If it’s proven that the defendants provided false financial information to the FTC, they’ll be forced to pay the full amount of their judgments.
The post FTC Hits Fake Weight-Loss News Website Operator With $1.6 Million in Settlements appeared first on DM Confidential.
