U.S. Court Shuts Down Internet Marketers Behind Acai Berry, Colon Cleansing Products
By Anna Johnson on August 24th, 2010A U.S. district court has ordered Central Coast Nutraceuticals, Inc. – the Internet marketers behind various acai berry supplements, ‘colon cleansers,’ and other products – to temporarily halt Internet sales, pending an investigation by the U.S. Federal Trade Commission.
The FTC, which is seeking to permanently shut down Central Coast Nutraceuticals, Inc. (CCN), alleges that CCN has scammed consumers out of $30 million or more in 2009 alone through deceptive advertising and unfair billing practices.
Since 2007, consumers have lodged more than 2,800 complaints about CCN with law enforcement agencies and the Better Business Bureau.
The FTC has brought multiple charges against CCN, Graham D. Gibson, Michael A. McKenzy and four companies affiliated with Central Coast Nutraceuticals, Inc. These include iLife Health and Wellness LLC, Simply Naturals LLC, Health and Beauty Solutions LLC and Fit for Life LLC.
Among other things, the FTC alleges the defendants deceptively advertised AcaiPure, an acai berry supplement, as a weight-loss product, and Colopure, a colon cleansing supplement, as an aid for preventing cancer.
The court order – made by the U.S. District Court for the Northern District of Illinois, Eastern Division on August 6, 2010 – halts the allegedly illegal conduct of CCN, imposes an asset freeze, and appoints a temporary receiver over CCN and the related companies, while the FTC moves forward with its case.
According to the FTC, CCN:
- falsely claimed that using AcaiPure could lead to rapid and substantial weight loss (e.g. 10-25 pounds in one month);
- falsely stated that its product claims were backed by ‘double-blind, placebo-controlled weight loss studies’;
- lied in claiming that Colopure could help prevent colon cancer;
- falsely stated that celebrities including Oprah Winfrey and Rachael Ray endorsed its products;
- falsely promised that consumers could get ‘free trials’ and full refunds if they requested them;
- failed to warn consumers that they would be billed automatically for further product supplies;
- failed to adequately disclose the terms and conditions of trial programs, membership programs, and additional charges;
- made numerous unauthorized charges to consumers’ credit and debit card accounts; and
- unlawfully – and without permission – debited consumers’ bank accounts on an automatic, recurring basis.
