Antitrust Law Daily Wrap Up, ADVERTISING NEWS: Pure Green Coffee sellers made deceptive weight loss claims, FTC alleges, (May 20, 2014)

By Greg Hammond, J.D.

The FTC has filed a complaint against NPB Advertising, Inc. (NPB), doing business as Pure Green Coffee, alleging that the company engaged in deceptive practices in violation of the FTC Act. Pure Green Coffee was advertised as a powerful weight loss dietary supplement that burns fat, and was promoted on The Dr. Oz Show (FTC v NPB Advertising, Inc., FTC File No. 1323116, Civil Action No. 8:14-cv-01155-SDM-TGW).

According to the agency’s complaint—which was brought against NPB, four other companies, and three individuals who owned and managed the companies (collectively, the sellers)—Pure Green Coffee extract was sold to consumers for approximately $50 for a one-month supply. The sellers allegedly used fake consumer endorsements, cited false clinical proof of the product’s effects, used “fake news” sites with titles such as “Women’s Health Journal” and “Healthy Living Reviewed,” and used logos from real news organizations, such as CNN and MSNBC. Consequently, the FTC alleged that the sellers violated section 5(a) of the FTC Act by using unfair or deceptive acts or practices in or affecting commerce.

Specifically, the FTC alleged that the sellers used false and unsupported advertising claims that: (1) consumers could lose 20 pounds in four weeks, 15 percent of body fat in 12 weeks, and 30 pounds and four-to-six inches of belly fat in three to five months with Pure Green Coffee use; (2) “studies prove” use of Pure Green Coffee could cause an average weight loss of 17 pounds in 12 or 22 weeks, as well as 10.5 percent weight loss and 16 percent body fat loss without dieting or exercising; and (3) the advertising sites were objective news sites with objective news reporters and independent consumer views. In addition, the agency alleged that the sellers deceptively failed to inform consumers that the testimonial videos involved individuals who received Pure Green Coffee for free and were paid for their testimonials.

“Not only did these defendants trick consumers with their phony weight loss claims, they also compounded the deception by advertising on pretend news sites, making it impossible for people to know whether they were seeing news or an ad,” stated FTC Bureau of Consumer Protection Director Jessica Rich in an FTC news release.

The complaint was filed in the U.S. District Court for the Middle District of Florida, Tampa Division on May 15, 2014. The Commission voted 4-0-1 in support of the filing, with Commissioner McSweeny not participating.

Companies: NPB Advertising, Inc.; Nationwide Ventures, LLC; Olympus Advertising, Inc.; JMD Advertising, Inc.; and Signature Group, LLC.

News: Advertising ConsumerProtection FederalTradeCommissionNews