Diet Pill Cos. To Fork Over $1.5M To End FTC's False Ad Suit

Law360, New York (January 9, 2012, 7:15 PM EST) -- The Federal Trade Commission struck a $1.5 million settlement with an Arizona-based diet company and others accused in Illinois federal court of defrauding customers out of $80 million through shoddy online marketing tactics for weight loss pills, the FTC announced Monday.

The settlement order includes an $80 million judgment against Phoenix-based Central Coast Nutraceuticals Inc., four other related companies and two individuals. The judgment will be suspended when the FTC receives assets worth $1.5 million from the defendants, the agency said.

The defendants neither denied nor...
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