FTC cracking down on online businesses: The Real Deal

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Updated: 4/19/2011 6:53 pm
Syracuse (WSYR-TV) – In the past, NewsChannel 9 has warned viewers about marketers who use fake websites designed to give the appearance of reputable news organizations while trying to trick them into buying weight-loss products.

Now the Federal Trade Commission is putting the marketers on notice: Pay back customers that were misled or get sued.

The advertisements are made to look like websites but their stories and comments consist almost exclusively of endorsements of products such as Acai weight loss items or other products.

The marketers use logos from ABC, Fox, CNN, or Consumer Reports to get people to believe their fake claims. But all they’re doing is trying to get the customer to buy their products. For every person that signs up, the marketer in turn gets a cut of what the person pays. The FTC says this practice is misleading.

So far the FTC has shut down 10 operations that use these fake sites and ordered them to refund customers they have misled.

Anyone who has been so mislead should file complaint with the FTC by going to FTC.gov or calling 1-877-FTC-HELP.

FTC Cracks Down on Marketers of Acai Berry Products: The Real Deal
Aug. 16


The Federal Trade Commission has ordered the marketers of acai berry supplements and colon cleansers to stop an Internet sales scheme that allegedly scammed consumers out of $30 million through deceptive advertising and unfair billing practices.

The marketers promised buyers a ‘risk free’ trial but then billed their credit cards a monthly fee. It's called a "negative option" --meaning if a customer fails to cancel, normally within a few days, they're automatically signed up for monthly services.  The FTC estimates that about a million people have fallen victim to the scam. 

The FTC has obtained a court order which halts the allegedly illegal conduct of Central Coast Nutraceuticals, Inc., imposes an asset freeze, and appoints a temporary receiver over CCN and several related companies for the time being. 

The FTC complaint alleges that to sell AcaiPure, the marketers made dramatic claims on their website, including:

WARNING! AcaiPure Is Fast Weight Loss That Works. It Was Not Created For Those People Who Only Want To Lose A Few Measly Pounds. AcaiPure was created to help you achieve the incredible body you have always wanted …USE WITH CAUTION! Major weight loss in short periods of time may occur.”

In pitching Colopure, the marketers threw out frightening statistics about colon cancer, while promising that their product would get rid of consumers’ “excess weight and toxic buildup.”

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