FTC Bags $2M False Ad Win Against Diabetes Supplement Co.

Law360, New York (February 20, 2014, 1:31 PM EST) -- A California magistrate judge on Wednesday hit Wellness Support Network Inc. with a $2.2 million restitution order and a 20-year injunction forbidding its owners from falsely advertising diabetes treatments, citing a prolonged pattern of “serious” Federal Trade Commission Act violations.

U.S. Magistrate Judge Joseph C. Spero delivered a resounding victory to the FTC, granting its motion for summary judgment and holding Wellness owners Robert Held and his daughter Robyn Held individually liable for ill-gotten profits from online sales of the company’s “diabetes pack” and “insulin resistance pack” supplements.

The judge determined that Wellness had trumped up materially false and misleading advertising...

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