Açai weight loss sites operater to pay $2 million to settle FTC case

Related tags Fraud

A defendant that hawked deceptive açai weight loss products via fake news websites has agreed to pay more than $2 million to settle a case brought by the Federal Trade Commission.

Circa Direct LLC and Andrew Davidson were charged with using phony websites that made it appear as if news programs had reviewed the effectiveness of the acai products.  The sites constituted deceptive advertising, the FTC charged. As an example, FTC cited a piece in which a “reporter” claimed to have lost 25 pounds using the products.

The total settlement judgment amounts to $11.5 million, but will be suspended after FTC received the $2 million in proceeds from the defendant’s personal and corporate bank accounts, other financial assets and the sale of a house and a car.

Under the settlement, Circa Direct and Davidson are barred from passing off ads as fake news websites and must disclose financial connections they may have with merchants.  They are also barred from making deceptive and misleading claims about health-related products.

Related news

Show more

Related products

show more

A Taste of Metabolic Health

A Taste of Metabolic Health

ADM | 21-Mar-2023 | Case Study

Are you ready to transform the way consumers support their metabolic health? Our latest case study featuring ADM’s propriety, awarding winning strain Bifidobacterium...

Phenylcapsaicin beyond weight management

Phenylcapsaicin beyond weight management

aXichem | 25-Oct-2022 | Technical / White Paper

Capsaicin, the active ingredient in chili peppers, is widely recognized as an effective natural ingredient for a variety of applications including topical...

Saffron patented extract, the appetite suppressant

Saffron patented extract, the appetite suppressant

Natac- Sustainable Botanical Extracts Manufacturer | 05-Oct-2022 | Technical / White Paper

Satiereal® (marketed as SupresaTM in North America) is the only clinically proven ingredient of saffron stigmas that has been shown to have a beneficial...

Follow us


View more