Bayer, others settle false weight-loss advertising claims for $26mn
01/05/07 - newratings.com
LONDON, January 5 (newratings.com) – Bayer AG (BAY) has agreed to pay $3.2 million in civil penalties to the US government to settle allegations of false weight-loss advertising claims, the Federal Trade Commission said on Thursday.
The FTC has also fined marketers of weight-loss pills, including Bayer, a total of approximately $26 million. Under the terms of the settlement, the four marketers of TrimSpa capsules will pay the FTC $1.5 million, while the remaining amount will be pooled in by the seven marketers of CortiSlim and the two of Xenadrine EFX. According to the US government, the sellers of these weight-loss drugs claimed that their products could help melt fat effortlessly, boost metabolism or suppress appetite through a combination of ingredients, such as green tea and bitter-orange extract, while not mentioning that the endorsers have themselves gone through a strict diet and exercise regimen.
Although Bayer has agreed to stop making claims about its One-A-Day WeightSmart vitamin during the settlement in court, the company still backs the "competent and reliable scientific evidence'' related to the drug. Bayer did not admit to any wrongdoing while signing the agreement with the US Justice Department.
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