Remember all those online ads for an acai berry diet supplement called "AcaiPure," claiming the product was endorsed by Oprah Winfrey and Rachael Ray, would result in rapid and substantial weight loss, prevent colon cancer and could be tried on a "free trial" basis? Well, the makers of AcaiPure have agreed to pay $1.5 million in penalties because, according to the Federal Trade Commission, none of those claims were true.
In a 2010 complaint, the FTC charged that Phoenix-based Central Coast Nutraceuticals, Inc., had violated the Federal Trade Commission Act, as well as the Electronic Fund Transfer Act by making false and misleading claims in the advertising of AcaiPure and Colotox dietary products.
Specifically, the FTC charged that Central Coast Nutraceuticals, Inc., deceived consumers my making unsubstantiated claims that their Acai Pure supplement would cause rapid and substantial weight loss, and that their Colotox colon cleanser would prevent colon cancer.
The FTC also charged that despite Nutraceuticals' claims that their products could be ordered on a "free" trial basis for a nominal fee, with "full refunds upon request," the company actually made repeated unauthorized charges to consumers' bank accounts in violation of the Electronic Fund Transfer Act. Basically, charged the FTC, Nutraceuticals' made it "all but impossible" for consumers to avoid paying the full $39.95 to $59.95 price for the products.
Fake "free" trial offers - like those for AcaiPure - topped the Better Business Bureau's list of "Top 10 Scams and Rip-Offs of 2009."
Also included as part of the FTC's complaint were declarations from Rachael Ray and a representative of Oprah Winfrey disavowing the celebrity's association with or endorsement of AcaiPure or any other Central Coast Nutraceuticals, Inc. product.
Rachael Ray told the FTC, "I did not approve or agree to the use of my name or my image on this [Nutraceuticals'] website. . . . I have never used, endorsed or approved AcaiPure. I am not associated with nor do I endorse or approve any acai berry product, company or online solicitation of such products, including AcaiPure."
Douglas J. Pattison, CFO of Oprah Winfrey's Harpo, Inc., stated, "Ms. Oprah Winfrey has never endorsed or approved AcaiPure. Ms. Oprah Winfrey has never endorsed any acai berry supplement or acai berry related product by name. Ms. Oprah Winfrey has never approved or agreed to have her image or name used in conjunction with the sale and marketing of any acai berry related product."
Also See:
FTC Cracks Down On "Free" Grant Company
Medicare Revises Obesity Coverage Policy
U.S. Teens are World's Heavyweights
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