Judge Freezes Assets of 8 Supplement Pushers

LAS VEGAS (CN) - A federal judge froze the assets of two people and the eight companies they control after the FTC accused them of defrauding consumers in health supplements.

U.S. District Judge Richard Boulware also enjoined the defendants from continuing to market the supplements. They are: Health Formulas, Pure Vitamins, Longhorn Marketing, Method Direct, Weight Loss Dojo, VIP Savings, DJD Distribution, MDCC, and Jason and Danelle Miller.

The Millers did not adequately inform customers that their "trial period" was 14 days from the date of order, and that if they failed to cancel by then they would be charged full price, repeatedly, according to the 59-page order.

The FTC also accused them of upselling: using vague or nonexistent terms and failing to obtain "affirmative consent" from enrolling customers in programs with recurring charges.

Thirty-four other businesses and people also face FTC charges, but are not covered by Boulware's May 6 injunction.

The FTC will have to file a separate motion to have the additional defendants enjoined and their assets frozen.

A complaisant Congress allows so-called diet supplements to be virtually unregulated.

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