Medifast Unit To Fork Over $4M To FTC Over Weight-Loss Ads

Law360, Chicago (July 27, 2012, 4:02 PM EDT) -- Medifast Inc. subsidiary Jason Pharmaceuticals Inc. has agreed to pay $3.7 million under a proposed deal to resolve the U.S. Federal Trade Commission's probe of advertising claims for its weight-loss programs, the company said Thursday.

Jason Pharmaceuticals said the FTC had expressed concern that some of its claims did not meet current standards for substantiation, and voiced a particular objection to the company's use of the phrase "up to" in connection with its ads' weight loss claims.

Under the proposed consent agreement, the company agreed to...
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