FTC halts online marketer of acai products for false claims

Consumer Reports News: December 01, 2011 01:08 PM

The Federal Trade Commission and Connecticut state authorities have shut down an online marketer of acai berries and "colon cleanse" products for deceptive marketing practices that bilked consumers nationwide of an estimated $25 million.

According to the FTC complaints filed in the U.S. District Court of Connecticut, Boris Mizhen operated several websites—including TryLeanSpa.com, TryNutraSlim.com, and TryQuickDetox.com—from various Connecticut-based companies such as LeanSpa LLC. The websites attempted to sell online customers weight-loss products based on phony customer testimonials posted on fake news sites which were created by affiliate marketers.

Online customers were also enticed with promises of "free trials" of the products with a purported "100% satisfaction guarantee." While the online ads stated consumers would be charged only a nominal—typically $4.95 or less—shipping and handling fee, some customers' credit cards were actually socked with much higher costs—as much as $159 for two items. And in some instances, consumers were charged those exorbitant fees before the free products were even shipped, alleges the FTC in its complaint.

Earlier this year, the FTC cracked down on fake news sites hawking acai products. This current complaint, the FTC's 11th case against phony online news websites, was a collaborative effort among the federal regulatory agency, the U.S. Attorney's Office in Connecticut and the Connecticut Better Business Bureau.

See How to avoid scams and deceptive marketing tactics and other shopping tips on Consumer Reports Money.

FTC Action Temporarily Halts Operation that Allegedly Used Fake News Sites to Make Deceptive Claims about Acai Berry Weight-Loss Products [FTC]
$25 Million for Snake Oil, FTC Says [Courthouse News Service]

—Paul Eng